MCB Ltd - FULL YEAR Results

FY 2023/24
Earnings call presentation
FINANCIAL PERFORMANCE

2
 Solid performance for the financial year 2023/24…
Performance - Financial Year 2023/24

FY 2023/24 FY 2022/23 Change

Operating Income (Rs m) 33,150 28,118 17.9%

Non-Interest Expenses (Rs m) 11,135 9,242 20.5%

Attributable Profits (Rs m) 15,446 12,959 19.2%

ROE (%) 19.8 18.3 150 bps

Cost of risk (%) 0.79 0.90 -11 bps

Cost to income (%) 33.6 32.9 70 bps

Capital

Tier 1 Ratio (%) 17.3 15.8 150 bps

3
 … with attributable profits up by 19.2%

Profit Attributable to Ordinary Shareholders (Rs billion)

+19.2%

15.4

13.0

8.9

4
Jun 22 Jun 23 Jun 24
 Increase in operating income driven by balance sheet growth and improved FCY margins

+550 -88 +4 -208 +5,032

+883
+3,941 +18.0% -15.6% +3.9% -263.3% +17.9%
+14.3%
+21.3%

33,150
28,118

Operating income Net interest Net fee and Net trading income Net gain/(loss) Dividend income Other income Operating income
30 Jun 23 income commission income from equity 30 Jun 24
financial
instruments carried
at FVPL
5
 Y-o-y growth in gross loans and advances driven by the continued expansion of our international activities
Gross loans and advances (Rs billion)
Gross loans and advances by segment

11.4%
5.4%

10.3%
441
396 30.0%
365

281
241
221
54.3%

144 155 160

Mauritian and Regional Corporate Banking

International Corporate Banking

Jun 22 Jun 23 Jun 24
Retail and Business Banking
MUR FCY
Private Wealth Management 6
Note: Gross loans and advances include corporate notes
 Increased share of medium tenor loans in our FCY loan portfolio

Jun 23 Jun 24

Long-term Long-term
Long-term
loans loans
loans
11% 9%9%

Medium-term Short-term Short-term

Short-term
loans loans Medium-term
Medium-term loans
loans
29% 60% loans
loans 59%
59%
32%
32%

Short term loans o/w Trade finance Current account

7
 %

0.5
1.5
2.5
3.0
4.0
5.0
6.0

0.0
1.0
2.0
3.5
4.5
5.5

Jun-22
%
Jul-22

1.0
1.5
2.0
2.5
4.5
5.0
5.5
6.0

0.0
0.5
3.0
3.5
Aug-22 4.0
Sep-21
Sep-22
Oct-21
Nov-21
Oct-22
Dec-21
Jan-22
Nov-22
Feb-22
Mar-22
Dec-22
Apr-22
May-22Jan-23
Jun-22
Jul-22
Feb-23
Aug-22
Mar-23
Sep-22
Oct-22
Apr-23
Nov-22
Dec-22
May-23
3-Month SOFR Jan-23
Feb-23
Jun-23
Mar-23
3 Month SOFR

Apr-23
Jul-23
May-23
Jun-23
Aug-23
Jul-23
6-Month SOFR

Aug-23
Sep-23
Sep-23
6 Month SOFR

Oct-23
Oct-23
Nov-23
Nov-23
Dec-23
Jan-24
Dec-23
Feb-24
Mar-24
Jan-24
Apr-24
May-24Feb-24
Jun-24
Jul-24
Mar-24
Aug-24
Apr-24
Sep-24
Oct-24
Still high interest rates but declining

8
 Growth in both FCY and MUR deposits
Funding Base (Rs billion)
19.9% Deposits mix
675
Jun 2024 – Rs 675 bn

564
492
357
45%
285
230
34% 21%

279 318
263 Jun 2023 – Rs 563 bn
93 105 84

Jun 22 Jun 23 Jun 24

48%
Deposits (MUR) Deposits (FCY) Borrowings

36% 16%
LDR (%) 68.5 64.1 59.6
Savings Current Fixed
LFR (%) 57.6 54.0 53.0 Savings Current Term
9
 Liquid assets

247
Liquid assets – MUR (Rs billion) Total liquid assets (Rs billion) Liquid assets – FCY (Rs billion)
247 162
199 153
184 +16.3%
199
184
80
199 409
122 103 86
132 199 352
122
132 162 9
286 60
23 7
153
20 23 103
28 4
74
54
32
20 60
2820 38
54
3222
Jun Jun 23 Jun
20 24 247
184 199
Jun 22 Jun 23 Jun 24 Jun 22 Jun 23 Jun 24
Investment securities Investment securities
Mandatory balances with central bank Mandatory balances with central bank
Cash and cash equivalents (incl placements) Jun 22 Jun 23 Jun 24 Cash and cash equivalents (incl placements)

Liquid assets - MUR Liquid assets - FCY

Note: Figures may not add up due to rounding 10
 Margin

Yields and cost of funds (%) Quarterly margin (%)

3.10 3.14
3.02
2.80 2.86 2.87
2.68
2.55
2.36

7.26
6.11

3.66
3.10

Jun 22 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24

-2.11
- -2.87
Note: Annualised quarterly margin on interest-earning assets

Jun 23 Jun 24

Yield on loans and advances Yield on liquidity portfolio Cost of Funds

11
 Net interest income
Net interest income (Rs billion)

+21.3%

22.4

18.5

13.1
13.9
9.9

5.2

8.7 8.6 9.4

Jun 22 Jun 23 Jun 24

MUR FCY
Note: Figures may not add up due to rounding 12
 Non-interest expense

Non-interest expense (Rs billion) Cost to income (%)

+20.5%

11.1

9.2
3.7
7.3 35.2
3.2
1.1
2.2
1.1 33.6
1.0 32.9

6.3
5.0
4.1

Jun 22 Jun 23 Jun 24 Jun 22 Jun 23 Jun 24

Staff Depreciation/Amortisation Others

Note: Figures may not add up due to rounding

13
 Share of profit of associates
Share of profit of associates (Rs million)

-43.8%

544
475
306

Jun 22 Jun 23 Jun 24

14
 Impairment charge

Impairment charge (Rs billion) Cost of risk (%)

0.91 0.90
0.79

3.4 3.5 3.3

0
Jun 22 Jun 23 Jun 24 Jun 22 Jun 23 Jun 24

Note: (i) Cost of risk relates to loans and advances (including corporate notes)

15
 Credit quality

3.4
3.0
2.8

2.2

1.0
0.7

Jun 22 Jun 23 Jun 24

Gross NPLs to gross loans and advances (%) Net NPLs to net loans and advances (%)

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CAPITAL AND RETURNS

17
 Comfortable capitalisation level

Capital Base (Rs billion) Capital Adequacy Ratio (%)

19.8
91
81 18.3
12
11 17.2 17.3
67
4 15.8
16.3

15.0
79
70
63
13.0

Jun 22 Jun 23 Jun 24 Jun 22 Jun 23 Jun 24

Tier 1 Tier 2 BIS ratio (%) Tier 1 ratio (%)

Regulatory BIS ratio Regulatory Tier 1 ratio

RWA 458
387 442
(Rs billion)
18
 ROE & ROA

19.1
18.2

13.8

1.8 1.9

1.4

Jun 22 Jun 23 Jun 24

Return on Equity (%) Return on assets (%)

19
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