MCB Group: Net Profit of Rs 14.8 Billion Despite the Impact of New Tax Measures
For the nine months ending March 31, 2026, MCB Group's pre-tax profit rose by 13.0%, benefiting from strong business momentum across all sectors and improved collections. Despite this positive operational growth, the group's net profit only increased by 2.8%, reaching Rs 14.8 billion, primarily due to the tax measures introduced at the beginning of the fiscal year.
Net banking income increased by 8.3%, reaching Rs 34.1 billion. While there was a slight decline in interest margins on customer assets, net interest income grew by 7.6%, driven by the growth of the Group's assets and improved margins on investment securities. Non-interest income rose by 9.6%, thanks to the expansion of foreign exchange, payment, credit, and wealth management activities.
The Group's financial position remains strong, with improvements in the non-performing loan ratio and risk costs. The substantial growth in the Group's balance sheet has led to a decrease in capital ratios, with a Capital Adequacy Ratio (CAR) and Tier 1 ratio of 19.6% and 17.4% respectively, which still remain well above regulatory requirements.
The conflict in the Middle East has disrupted global economic dynamics, putting pressure on supply chains, increasing uncertainty in economic policies, and reigniting inflationary tensions and budget imbalances. Growth in Africa is expected to slow down given the region's heavy reliance on energy and fertilizer imports, rising maritime transport costs, and tightening financing conditions. We also anticipate a slowdown in the markets where we operate, particularly due to inflationary pressures and a likely decrease in tourist arrivals.
In this challenging context, the Group remains disciplined in executing its strategy and is firmly committed to maintaining the strength of its fundamentals, while continuing to create sustainable value for all its stakeholders.
Jean Michel Ng Tseung, Chief Executive – MCB Group Ltd: "We have achieved resilient performance despite a particularly challenging geopolitical and economic context. Pre-tax profit increased by 13.0%, driven by the Group's business expansion and improvement in our risk cost. However, this strong business momentum was partially offset by the increase in tax burden, resulting in a more moderate net profit growth of 2.8%. The results achieved during the first nine months of the fiscal year allow us to declare an interim dividend of Rs 11.00 per share, compared to Rs 10.50 last year. Our risk profile remains strong, enabling us to confidently face the economic effects of the Middle East conflict. Our balance sheet growth accelerated in the last quarter, supported by the expansion of commercial activities in both our domestic and international markets, in line with our Vision 2030."
