MCB’s 9 month profits at Rs 4.3 bn; promises great full year result ahead
MCB Group Ltd posted profits of Rs 4.3 billion for its first nine months ending March 2015, driven by foreign sources and non-banking activities which accounted for slightly above 50% of group profits. (Image: Company)
Banking major MCB Group Ltd posted encouraging results for the first nine months of its financial year ending March 2015, with profits reaching Rs 4.3 billion and representing a growth of 35.4% against the corresponding period of 2014.
The positive performance of MCB was driven by international activities, mainly in the non-banking segment, with earnings from foreign sources and non-banking activities accounting for slightly above 50% of overall group profits.
In spite of the subdued private investment level and excess liquidity situation in Mauritius, net interest income stood at Rs 6.1 billion, representing a 9.7% increase, driven by an expansion in the company’s international activities.
Net fee and commission income edged up by 19.7% to reach Rs 2.4 billion which is in line with the strong growth in revenues from asset management activities and international trade finance.
Furthermore, other income rose by 13.9% on the back of enhanced contribution from non-bank financial entities of the group, growth in operating expenses contained at 2.6%, impairment charges down by 30% as compared to the corresponding period last year, thus leading to an operating profit of Rs 4.9 billion against Rs 3.6 billion figure in 2014, showing a 37.2% hike.
According to Pierre Guy Noël, the Chief Executive of MCB Group,” In spite of the binding conditions prevailing both over the local and international market, the Group continues its expansion. This resulted in an increase of 12.6% in income generated, whereas operating profits increased by 21.6%. Thanks to this good operational performance, coupled with the reduction in cost of risk, the shareholder equity of the Group reached the milestone of Rs 35 billion on March 31, 2015, thus strengthening our capital base further. Furthermore, the Group maintained a comfortable level of liquidity. Basing itself on current trends, the results for financial year 2014-15 should be better than those of the previous year.”