Mauritius Commercial Bank sees over 12% rise in first-half profits
MCB, the biggest bank by market value in east Africa and the Indian Ocean region, declared group profits before tax of Rs 2.99 billion for the half year to 31st December, growing nearly 12.5% over the year-ago period.
Mauritius’ financial services major MCB declared group profits before tax of Rs 2.99 billion for the half year to 31st December, growing nearly 12.5% over the year-ago period.
MCB, the biggest bank by market value in east Africa and the Indian Ocean region, noted in its financial statement that earnings from foreign-sourced activities and non-banking operations contributed over half of the above.
Underpinned by the continued rise in the loan portfolio, notably from international operations, net interest income rose by 5.0% to Rs 3.75 billion.
Net fee and commission income grew by 9.3% to reach Rs 1.35 billion compared to the year ended 31 December, 2012 where it was Rs 1.23 billion.
This increase of net fee and commission income was mainly supported by an appreciable increase in revenues linked to regional trade financing, loan facilities and cards related activities.
The share of income of associates rose by Rs 135 million on account of improved contributions from both Banque Française Commerciale (Océan Indien) and Promotion and Development.
Operating costs were well contained, with a 6.2% rise for the period, while impairment charges, which reached Rs 355 million, were virtually unchanged from last year.
Income tax charges increased by 22%, on the back of the rise in special levy applicable to Segment A operations to 10% of chargeable income, implying an effective tax rate of 25% on such activities.
The profit before tax show an increase of Rs 333 million compared to the same period ended 31 December 2012, where in December 2013 it was Rs 299 million.
On the other hand, net interest income for the bank increase by 163 million to reach 338million at the end of December31, 2013 compared to the same period last year where it was 322 million.
In addition, net fee and commission income for the bank which shows a net increase of 111 million compared to the period ended December 31, 2012 with 983 million.
Finally, the profit before tax shows in profit where it was 238 million on the year ended December 31, 2013 compared to the last year figures which were 226 million.
Looking ahead, the operating environment in which MCB operates is expected to remain challenging. In fact, despite the foreseen pick-up in activity levels globally, economic growth in Mauritius would remain subdued for some time yet.
Nonetheless, MCB is well positioned to pursue its strategic orientations, a key thrust being the further diversification of its positioning in the sub-Saharan African region on account of the latter’s appealing growth perspectives.
Hence, management has forecast that MCB Group results for the current financial year ended 30 June 2014 are likely to be better than those of the preceding financial year.