Mauritius Commercial Bank sees group profits up 3.4% for 9 months to March 31
Despite the testing economic environment and unfavorable conditions in the money market, the MCB saw its net interest income increase by 4.1% to reach Rs 5.51 billion. (Image: MCB)
Mauritius’ financial services major Mauritius Commercial Bank (MCB) declared group profits before tax of Rs 3.96 billion for the nine months to March 31, 2014, growing nearly 3.4% over the year-ago period.
Despite the testing economic environment and unfavorable conditions in the money market, the MCB saw its net interest income increase by 4.1% to reach Rs 5.51 billion.
Furthermore, net fee and commission income saw an increase of 4.8% to reach Rs 2.01 billion compared to the corresponding period last year, when it was Rs 1.92 billion.
Additionally, operating income grew by 5.7% to Rs 8.62 billion on the back of sustained market development initiatives, while growth in non-interest expenses increased by 6% to reach Rs 4.10 billion, underpinned by efficiency gains.
The Mauritius-based financial services major stated that the share of profit of associates improved significantly following enhanced performances of both BFCOI and PAD.
MCB noted in its statement that the exchange of shares of MCB Ltd for those of MCB Group Ltd having been effected on April 2, 2014, the financial statements at March 31, 2014 reflect the scenario pre-restructuring, with MCB holding the entire group’s investments.
Post-restructuring, the accounts of MCB Group Ltd would have been identical to the Group accounts of MCB Ltd.
The MCB indicated that the bank’s operating environment is likely to remain challenging for some time to come, in spite of increasing signs of global recovery.
“In particular, the evolution of domestic private investment is expected to be sluggish once again in 2014, while the high liquidity situation in the banking system will exert adverse pressure on revenue growth,” the board stated in the financial statement.
MCB will maintain its market vigilance and pursue its business development drive. With the restructuring exercise well under way, MCB seeks to further diversify its operations, a key axis of which is to deepen its involvement in the sub-Saharan African region.
Finally, the board announced that MCB Group results for the financial year 2013-14 are anticipated to be similar to those registered in the previous year based on current trends and difficult operating conditions.