--- title: "MCB Group Q1 FY2026/27 Profit Rises 9.9% To Rs 5.4B" description: "MCB Group reported unaudited Q1 FY2026/27 profit attributable to ordinary shareholders of Rs 5.4 billion, up 9.9%, as income rose 11.7%." canonical_url: "https://liners.com/news/mcb-group-q1-fy2026-27-profit-5-4b" markdown_url: "https://liners.com/news/mcb-group-q1-fy2026-27-profit-5-4b.md" type: "article" language: "en" published_at: "2026-11-12T21:40:36.911Z" updated_at: "2026-11-12T21:40:39.948Z" --- # MCB Group Q1 FY2026/27 Profit Rises 9.9% To Rs 5.4B MCB Group reported unaudited Q1 FY2026/27 profit attributable to ordinary shareholders of Rs 5.4 billion, up 9.9%, as income rose 11.7%. ## Breadcrumbs - [News](/news) - [MCB Group Q1 FY2026/27 Profit Rises 9.9% To Rs 5.4B](/news/mcb-group-q1-fy2026-27-profit-5-4b) ## Related articles - [MCB Gets IFACI Certification for Internal Audit in Mauritius](/news/mcb-ifaci-internal-audit-certification-mauritius) - [MCB Ends Express Payments on Internet Banking From Oct 8](/news/mcb-express-payments-macss-internet-banking-ends-oct-2026) - [MCB Structures $51m Loan to Refinance Tolaram Deal](/news/mcb-51m-loan-tolaram-refinance-guinness-nigeria-acquisition) - [BCI Leads Mozambique Banks by Assets as Profits Drop 45%](/news/mozambique-banking-assets-deposits-up-profits-down-2025-bci) - [AFEX Report Forecasts Soybean, Sorghum Output Growth](/news/afex-2026-wet-season-crop-production-report-soybean-sorghum-forecast) ## Content ## In Short MCB Group reported unaudited first quarter FY2026/27 results with profit attributable to ordinary shareholders up 9.9% to Rs 5,422 million. Operating income grew 11.7%, and the gross non-performing loan ratio improved to 1.8%. ## What Happened: How MCB Group Grew Income And Managed Risk MCB Group said profit attributable to ordinary shareholders rose 9.9% to Rs 5,422 million at the start of its FY2026/27 financial year. The group said this reflected “the continued resilience of our businesses in an increasingly challenging and uncertain operating environment.” Operating income increased by 11.7%. The group attributed this to higher business activity across its Home Markets and its Corporate and Investment Banking and Private Banking businesses. It said this supported continued expansion of its balance sheet. Within these segments, MCB Group reported operating income growth of 8.0% in Home Markets and 15.1% in Corporate and Investment Banking and Private Banking. Net interest income grew 17.4%, which MCB Group linked to growth in its interest-earning assets portfolio, despite a fall in the overall net interest margin. The group said rupee-denominated net interest income increased with growth in retail and corporate lending and reinvestment of liquid assets at higher yields. It said foreign currency net interest income also increased with growth in loans and advances and liquid assets, but the foreign currency net interest margin declined due to competitive pressures, a fall in the USD benchmark rate, and a higher proportion of term deposits and borrowings in the funding mix. Net fee and commission income rose 3.8%, supported by trade finance income and higher wealth management fees, partly offset by lower income from payment activities following non-recurring losses related to card activities. Net trading income increased 7.2% to Rs 1,877 million, driven by higher FX trading and fixed income transactions. Other operating income fell 10.1% to Rs 277 million, which the group said mainly reflected non-recurring gains from the sale of financial instruments in the first quarter of the previous year. Non-interest expenses increased 13.5% due to inflationary pressures, higher staff costs linked to increased headcount, and higher professional fees and technology-related expenditure tied to initiatives supporting Vision 2030. The cost-to-income ratio rose to 36.4% from 35.9%. Impairment charges increased 33.7% to Rs 809 million, which MCB Group said mainly reflected higher expected credit losses associated with significant growth in loans and advances. It reported an annualised cost of risk of 50 basis points. The share of profit of associates declined 3.4% to Rs 170 million, mainly due to lower contributions from BFCOI and Promotion and Development Group. The group’s tax charge increased 4.6% to Rs 1,967 million, with an effective tax rate of 26.5%. MCB Group reported return on equity of 16.0%, compared to 16.5% a year earlier. It said foreign activities in Mauritius, plus foreign subsidiaries and associates, accounted for an aggregate 69% of group profits. Additional context in the company statement said other borrowed funds increased 85.3% to Rs 166.2 billion. It said this partly reflected a previously closed USD 450 million syndicated loan facility. ## Why It Matters For operators and investors tracking bank performance, MCB Group’s results point to rising income across core banking lines, alongside higher costs and higher credit impairment charges as lending expands. The improved gross non-performing loan ratio of 1.8% and an annualised cost of risk of 0.5% are key indicators of asset quality. A non-performing loan ratio shows how much of a loan book is not being repaid on time, and cost of risk reflects the credit losses a bank is absorbing relative to lending. The sharp rise in other borrowed funds to Rs 166.2 billion, linked in part to a USD 450 million syndicated loan facility, also signals a larger funding base that can support further balance sheet growth, while adding more debt to manage. ## Sources and products - [MCB Group](https://mcbgroup.com/news/article/profits-of-rs-5.4-billion-for-first-quarter-of-fy-2026-27) - [Mauritius Commercial Bank (MCB)](/mauritius-commercial-bank) ## Related pages - [Market Trends](/news) ## Access and citation - [Canonical HTML page](https://liners.com/news/mcb-group-q1-fy2026-27-profit-5-4b) - [Markdown route index](/sitemap.md) - [Agent access guide](/llms.txt)