Annual Report 2020 | PDF 3.32MB

ANNUAL REPORT 2020 This report has been prepared to assist relevant stakeholders to assess the strategies of MCB Limited and their potential of success. The statements contained herein may include declarations of future expectations and other forward-looking statements that are based on our current views and assumptions. 5HDGHUVDUHDGYLVHGQRWWRSODFHXQGXHUHOLDQFHRQIRUZDUGORRNLQJVWDWHPHQWVUHODWLQJWRWKH%DQNèVEXVLQHVVVWUDWHJ\SODQVREMHFWLYHVDQGĆQDQFLDOSRVLWLRQVDVWKHVHVWDWHPHQWVUHO\RQDVVXPSWLRQVDQGK\SRWKHVHV which inherently represent an accuracy risk. Actual results, performance and events may differ from those described in such statements due to unexpected changes in the economic, market, industry political, interest rate and currency market conditions as well as developments in relation to laws and regulations. The MCB Limited does not undertake to update any forward-looking statement that may be made from time to time by the organisation or on its behalf. The Directors of The Mauritius Commercial Bank Limited are pleased to present its Annual Report for the year ended 30 June 2020. The Annual Report was approved by the Board of Directors on 25 September 2020. Jean-François DESVAUX DE MARIGNY Alain LAW MIN Chairperson &KLHI([HFXWLYH2IĆFHU MCB at a glance Our identity The Mauritius Commercial Bank Limited (referred to as ‘MCB Ltd’, ‘MCB’ or ‘Bank’) is Our reporting suite a dynamic organisation with a rich heritage. It is the leading bank in Mauritius and an increasingly prominent regional player. The contents of this Annual Report are complemented by our Sustainability Report, which provides a comprehensive overview of our Corporate MCB is the main subsidiary of MCB Group Limited (hereinafter referred to as ‘ MCB Sustainability Programme, ‘Success Beyond Numbers’. Group Ltd’ or ‘Group’). The Group encompasses local and foreign banking and non- While shedding light on our value creation model and banking subsidiaries and associates. our socio-economic impact in Mauritius, it showcases key strategies and moves aimed at embedding our role as a responsible corporate citizen. Our purpose-driven approach The above reports can be accessed on our websites. They are available in a digital format and are fully adapted to smartphones, tablets and desktop Over time, MCB has built an organisation which is worthy of the trust of its computers. This allows for a more enjoyable reading customers, shareholders and the community at large. We continuously strengthen experience, while making it easier to share key our balance sheet and revenue base. information from the report. The latter can, thus, be conveniently broadcast on social media platforms We are intent on diversifying our markets in the region and beyond. In tune with such as Twitter and LinkedIn as well as on instant messaging services like WhatsApp. our brand promise and as a responsible entity, we are committed to executing an ambitious sustainability agenda to embed long-term value for our stakeholders. We relentlessly sharpen our capabilities for growth, while striving to make banking For a more comprehensive understanding of simpler, faster and more convenient to our customers. We actively monitor and MCB’s strategy, business, performance as well as assess the operating environment and ensure that we rise up to challenges and approach to corporate governance, our websites opportunities that we are exposed to. provide a full suite of publications, which cater for the diverse needs of our stakeholders. 2 The Mauritius Commercial Bank Limited Annual Report 2020 Responding to the COVID-19 crisis and upholding our resilience An unprecedented context In 2020, we witnessed the unprecedented impact of the COVID-19 pandemic on economies, businesses, societies, individuals and families as infections stemming from the virus rocketed around the world. Notwithstanding wide-ranging measures taken by the authorities to mitigate the socio-economic crisis, markets in 0DXULWLXVDVZHOODVRQWKHUHJLRQDODQGJOREDOVFDOHVKDYHQRWEHHQVSDUHG,Q0DXULWLXVIROORZLQJWKHGHWHFWLRQRIWKHĆUVWSRVLWLYHFDVHVWKHDXWKRULWLHVKDYH imposed a lockdown, starting 20 March 2020. A strict curfew order was imposed as from 23 March to break the circuit of transmission of the virus and was ended on 30 May, after which socio-economic activities have gradually resumed across the country. Since 15 June, all business and activity lockdowns have been lifted, but with the wearing of masks compulsory and our international borders remaining closed, while certain sectors of the economy such as those linked to tourism, are still operating at sub optimal level. The Bank responded to the changing operating landscape in a prompt and orderly manner. With the support of our employees, we took pragmatic steps to ensure continuity of service and have, since, reviewed business development priorities in terms of scope and magnitude to focus on the more immediate needs of our markets. Our operations and business continuity measures Guided by our set protocols and the dedication of both our Management teams and employees, business continuity was ensured as regard client transactions SURFHVVLQJZKLOHZHQRWDEO\DWWHQGHGWRSD\PHQWRIVDODULHVDQGVRFLDOZHOIDUHDOORZDQFHV3ULRUWRWKHORFNGRZQSHULRGLQ0DXULWLXVZHKDGĆQDOLVHGRXU Pandemic Preparedness Plan, which, after discussion with the Mauritius Bankers Association and the Bank of Mauritius, has been aligned across the banking industry. We set up a Crisis Management Team (CMT), which provided guidance and direction to oversee an effective and coordinated management of action plans and initiatives aimed to cope with the pandemic and consistently ensure minimal service delivery. The responsible members of each stream (Staff, Operations, Business, Communication, Risk, Liquidity/Funding, Retail, Regulatory, Overseas and Local Subsidiaries) within the CMT have worked towards ensuring the smooth running of their respective activities. The CMT met virtually on a daily basis to coordinate and manage the activities of the organisation, with regular updates from the Pandemic Operations Team, which was established to ensure a seamless coordination between different departments of the organisation during the lockdown period. As soon as the lockdown was announced, Work From Home (WFH) practices and split teams were put into place to maintain continuity of business operations and delivery of service to the community (albeit to minimal levels) as well as reduce risks of contamination and contagion. Our contingency plan facilitated the execution of WFH on a large scale, while maintaining to the minimum possible on-site employees during the peak of the pandemic. The modus operandi was promptly put in place and, despite the very short notice, most of our arrangements worked as planned. With the end of lockdown period, we resumed work onsite in a phased manner, in accordance with internal protocols, with WFH practices still being exercised to the extent feasible. As for our branches, they reviewed their functioning in the wake of the virus spread. We planned, at the outset and after consultation with the Central Bank, to cater for customer needs through 14 strategically-positioned branches out of 40 branches and we reviewed their operating hours to help mitigate the virus spread. With the end of the lockdown, all our branches are open as per normal working hours, with robust sanitary measures in place. The Mauritius Commercial Bank Limited Annual Report 2020 3 Responding to the COVID-19 crisis and upholding our resilience Safeguarding the health and safety of our employees and clients The well-being of our stakeholders being a topmost priority, we implemented strict sanitary and hygiene protocols to uphold sound physical environments across our working premises. We put in place a controlled entry system and used calibrated non-contact thermometers for body temperature screenings for all visitors and employees admitted in our premises. We set up social distancing markings at entrances and service counters for better queue management and to mitigate contagion risks. We installed protective glass screens separating customers from tellers to ensure maximum protection. We ensure that staff members as well as customers wear masks. Hydro-alcoholic solutions are dispensed to customers upon entry in our premises. We conduct regular cleansing and disinfection of our premises and equipment, notably across frontline spaces and common areas. Essentially, the Bank adheres to best practice sanitary and health measures and protocols, with the recommendations of the World Health Organisation and local authorities strictly followed, backed by necessary supportive mechanisms. +HOSLQJRXUFXVWRPHUVULGHWKURXJKGLIĆFXOWWLPHV We are conscious that our valued clients have been facing extraordinary and uncertain times. Against this backdrop, the Bank has deployed timely efforts and measures to stand by and accompany its individual and corporate customers, while offering appropriate work-around solutions for service delivery and attending to requests for dedicated facilities, notably with regard to servicing of debt obligations and provision of working capital facilities, loan restructuring and credit relief. We closely collaborated with the authorities to help in implementing a number of support measures, to assist all our customers and help them recover. %HDULQJLQPLQGWKHPRGHRIWUDQVPLVVLRQRIWKH&29,'YLUXVZHLQWHQVLĆHGFRPPXQLFDWLRQDQGDZDUHQHVVFDPSDLJQVRQVRFLDOPHGLDWRHQFRXUDJHRXUFXVWRPHUV and the general public to opt for digital and contactless channels, while sensitising

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