MCB Group, Mauritius’ largest banking group, reported a 9.9% increase in net profit attributable to shareholders to MUR5.4 billion ($114 million) in the first quarter of its 2027 financial year, supported by stronger contributions across its business segments and continued growth in international operations.

The group’s international operations, including its foreign subsidiaries, accounted for 69% of profits during the three months, underlining their growing contribution to its earnings. Net banking income rose 11.7% year-on-year to MUR12.7 billion ($266.7 million), reflecting improved business momentum across its domestic markets and corporate banking operations.

International operations drive earnings growth as capital remains strong

Mauritius-based financial services group’s performance was supported by growth across its Home Markets and Corporate and Investment Banking and Private Banking (CIBPB) divisions.

Net banking income from the Home Markets division increased 8% compared with the corresponding period a year earlier, while CIBPB recorded stronger growth of 15.1%.

The increase in income was accompanied by an improvement in asset quality. The group reported a decline in both its non-performing loan ratio and cost of risk, with the indicators standing at 1.8% and 0.5%, respectively, according to chief executive Jean Michel Ng Tseung.

MCB Group maintained a solid capital position despite growth in its loan portfolio. Its capital adequacy ratio stood at 19.6%, while its Tier 1 capital ratio reached 17.4%, both comfortably above regulatory requirements. The group said its strong capital and liquidity positions would enable it to continue supporting clients, execute strategic priorities and pursue its long-term growth ambitions.

Regional markets face mixed economic conditions

The group’s outlook remains shaped by an uncertain global environment, with geopolitical tensions in the Middle East, disruptions to energy markets and maritime transportation, and rising commodity prices contributing to inflationary pressures. These developments have also encouraged major central banks to maintain tighter monetary policies.

In sub-Saharan Africa, economic growth remains relatively strong, although elevated financing costs and risks associated with the El Niño phenomenon continue to weigh on prospects.

MCB Group described Mauritius as relatively resilient, supported by a recovery in tourism and strong activity in financial services. The Maldives and Seychelles have faced greater disruption from challenges affecting air transportation, while Madagascar is expected to record faster economic growth as reconstruction following cyclones and agricultural exports support activity.

MCB Group maintains Vision 2030 ambitions

Ng Tseung said the group had started the 2026/27 financial year on a solid footing, with higher net banking income reflecting expansion across domestic markets and the CIBPB division.

He added that improving asset quality, comfortable capital levels and strong liquidity would support the group’s ability to serve clients in an uncertain environment.

MCB Group said it remained committed to disciplined risk management and prudent financial resource management while pursuing sustainable growth and long-term value creation under its Vision 2030 strategy.