Equity Analysis /

MCB Group (Mauritius): MCB GROUP: 9M 18: lending accelerates, margins rise. Buy

    Rahul Shah
    Rahul Shah

    Head of Financials Equity Research

    Tellimer Research
    22 May 2018
    Published byTellimer Research
    Signs of a positive turnaround. MCB Group (MCBG) reported 9M 18 net income of MUR5,448mn, up 5% yoy. Net interest income increased 9% and fee income rose 7%, although the impairment charge rose 24% to 68bp of gross loans. The Q3 results point to a turning point in terms of a growing domestic profit contribution, better margins and cost efficiency, and a rising loans/ deposits ratio, which we think augers well for the future. We maintain our Buy recommendation.