THE MAURITIUS COMMERCIAL BANK LIMITED  
  Abridged Unaudited Interim Financial Statements  
  31st December 2006  
   
  Balance Sheets  
  GROUP BANK Statements of Changes in Equity  
  31-Dec-06 31-Dec-05 30-Jun-06 31-Dec-06 31-Dec-05 30-Jun-06 Attributable to ordinary equity holders of the parent  
  Rs'000 Rs'000 Rs'000 Rs'000 Rs'000 Rs'000 Share      Treasury        Capital      Translation      Statutory      General     Retained     Total     Minority     Total  
  ASSETS  Capital       Shares         Reserve       Reserve       Reserve  Banking Reserve      Earnings      Interest      Equity  
  Cash resources GROUP Rs'000      Rs'000        Rs'000      Rs'000      Rs'000      Rs'000     Rs'000     Rs'000     Rs'000     Rs'000  
  Cash and balances with Central Banks         6,492,875           5,777,017        5,509,108       4,773,226     4,232,754     4,015,691 At 1st July 2005      2,821,105        (393,789)         406,616          162,064         1,582,578            537,499       5,116,005     10,232,078          110,537     10,342,615  
  Balances with banks and interbank loans             83,376              953,450          214,156           70,082       953,450       204,565 Adjustment of fair value of assets in associate                 -                    -                    -                    -                       -                       -            (45,575)          (45,575)                  -            (45,575)  
  Balances with banks abroad         8,363,150           1,098,708        6,480,484       8,313,336     1,832,715     6,622,201 As restated      2,821,105        (393,789)         406,616          162,064         1,582,578            537,499       5,070,430     10,186,503          110,537     10,297,040  
        14,939,401           7,829,175      12,203,748     13,156,644     7,018,919   10,842,457 Share of increase in reserves of associates                 -                    -             91,510            25,556                     -                       -                    -            117,066                  -           117,066  
  Securities and other investments Decrease in interest in associate                 -                    -                 (115)                  -                       -                       -              (5,419)            (5,534)                  -              (5,534)  
  Securities       16,507,403          16,779,150      18,364,266     12,474,427   13,813,190   14,874,838 Currency translation difference                 -                    -                    -              30,223                     -                       -                    -             30,223                715           30,938  
  Other investments  - available-for-sale         2,398,150           1,325,369        1,824,931         646,091       485,501       622,177 Transfer on disposal of investments                 -                    -              (5,878)                  -                       -                       -                    -              (5,878)                  -              (5,878)  
                                 - derivative financial instruments               4,240                12,672            16,125             4,240         12,672         16,125 Fair value gain                 -                    -             62,279                  -                       -                       -                    -             62,279                  -             62,279  
  Investments in associates         5,245,609           2,512,298        3,256,832         883,754       839,657       872,151 Net gains/(loss) recognised directly in equity                 -                    -           147,796            55,779                     -                       -              (5,419)          198,156                715         198,871  
  Investments in subsidiaries                    -                         -                     -         1,952,065     1,200,355     1,766,732 Profit for the period                 -                    -                    -                    -                       -                       -            947,965          947,965           14,846         962,811  
        24,155,402          20,629,489      23,462,154     15,960,577   16,351,375   18,152,023 Total recognised income for the period                 -                    -           147,796            55,779                     -                       -            942,546       1,146,121           15,561       1,161,682  
  Loans       64,009,944          59,764,434      58,365,276     59,239,947   55,153,671   54,868,568 Dividends                 -                    -                    -                    -                       -                       -           (268,399)         (268,399)          (10,217)        (278,616)  
  Other Transfer to general banking reserve                 -                    -                    -                    -                       -                  9,447            (9,447)                  -                    -                    -    
  Goodwill and other intangible assets           328,175              327,131          354,111         278,718       287,940       314,138 Purchase of treasury shares                 -                (291)                  -                    -                       -                       -                    -                 (291)                  -                 (291)  
  Property, plant and equipment         3,333,747           2,572,240        3,036,585       2,295,553     2,125,458     2,193,777 At 31st December 2005      2,821,105        (394,080)         554,412          217,843         1,582,578            546,946       5,735,130     11,063,934          115,881     11,179,815  
  Deferred tax assets             30,331                83,073            31,364           40,952         82,746         31,647  
  Other assets         2,413,142           1,613,043        1,955,893       1,759,135     1,238,121     1,600,962 At 1st July 2005      2,821,105        (393,789)         406,616          162,064         1,582,578            537,499       5,116,005     10,232,078          110,537     10,342,615  
          6,105,395           4,595,487        5,377,953       4,374,358     3,734,265     4,140,524 Adjustment of fair value of assets in associate                 -                    -                    -                    -                       -                       -            (45,575)          (45,575)                  -            (45,575)  
      109,210,142          92,818,585      99,409,131     92,731,526   82,258,230   88,003,572 As restated      2,821,105        (393,789)         406,616          162,064         1,582,578            537,499       5,070,430     10,186,503          110,537     10,297,040  
  Share of increase in reserves of associates                 -                    -           568,213          131,484                     -                       -                    -            699,697                  -           699,697  
  Investment in subsidiary                 -                    -                    -                    -                       -                       -                    -                    -                    25                 25  
  LIABILITIES AND SHAREHOLDERS' EQUITY Transfer on disposal of investments                 -                    -              (6,339)                  -                       -                       -                    -              (6,339)                  -              (6,339)  
  Deposits       83,303,379          73,037,235      76,298,069     72,705,727   65,169,422   68,311,784 Currency translation difference                 -                    -                    -              14,613                     -                       -                    -             14,613               (637)           13,976  
  Borrowings Fair value gain                 -                    -             22,071                  -                       -                       -                    -             22,071                  -             22,071  
  Borrowings from the Bank of Mauritius           982,541           1,263,837        1,056,122         982,541     1,263,837     1,056,122 Net income/(expense) recognised directly in  
  Borrowings from other banks in Mauritius and banks abroad         5,732,846           4,345,079        6,081,206       6,083,967     4,306,699     6,277,329   equity                 -                    -           583,945          146,097                     -                       -                    -            730,042               (612)         729,430  
  Subordinated debt         1,474,126                       -                     -         1,474,126                -                  -   Profit for the year                 -                    -                    -                    -                       -                       -         1,986,423       1,986,423           27,028       2,013,451  
          8,189,513           5,608,916        7,137,328       8,540,634     5,570,536     7,333,451 Total recognised income for the year                 -                    -           583,945          146,097                     -                       -         1,986,423       2,716,465           26,416       2,742,881  
  Other Dividends                 -                    -                    -                    -                       -                       -           (569,006)         (569,006)          (20,098)        (589,104)  
  Other liabilities         3,364,301           2,512,229        3,245,244       2,581,041     2,220,283     2,671,798 Transfer to general banking reserve                 -                    -                    -                    -                       -                34,410          (34,410)                  -                    -                    -    
  Outstanding lease obligations                    -                    8,531              6,366             4,401           8,200           6,133 Transfer to statutory reserve                 -                    -                    -                    -              250,000                     -           (250,000)                  -                    -                    -    
  Current tax liabilities           465,009              471,859          271,598         396,048       438,936       239,501 Purchase of treasury shares                 -                (291)                  -                    -                       -                       -                    -                 (291)                  -                 (291)  
          3,829,310           2,992,619        3,523,208       2,981,490     2,667,419     2,917,432 At 30th June 2006      2,821,105        (394,080)         990,561          308,161         1,832,578            571,909       6,203,437     12,333,671          116,855     12,450,526  
  Capital and reserves attributable to the ordinary Share of increase in reserves of associates                 -                    -           132,940          127,785                     -                       -             12,229          272,954                  -           272,954  
    equity holders of  the parent Currency translation difference                 -                    -                    -              74,779                     -                       -                    -             74,779           10,881           85,660  
  Share capital         2,503,756           2,821,105        2,821,105       2,503,756     2,821,105     2,821,105 Fair value gain                 -                    -           173,136                  -                       -                       -                    -            173,136                  -           173,136  
  Reserves and surplus         4,218,227           2,901,779        3,703,209       2,406,662     2,095,167     2,406,662 Income recognised directly in equity                 -                    -           306,076          202,564                     -                       -             12,229          520,869           10,881         531,750  
  Retained earnings         6,082,239           5,735,130        6,203,437       3,986,087     4,327,411     4,605,968 Profit for the period                 -                    -                    -                    -                       -                       -         1,140,393       1,140,393           15,491       1,155,884  
        12,804,222          11,458,014      12,727,751       8,896,505     9,243,683     9,833,735 Total recognised income for the period                 -                    -           306,076          202,564                     -                       -         1,152,622       1,661,262           26,372       1,687,634  
  Less treasury shares          (394,080)             (394,080)         (394,080)        (392,830)      (392,830)      (392,830) Dividends                 -                    -                    -                    -                       -                       -           (308,659)         (308,659)            (3,074)        (311,733)  
        12,410,142          11,063,934      12,333,671       8,503,675     8,850,853     9,440,905 Shares bought back and cancelled       (317,349)                  -                    -                    -                       -                       -        (1,113,525)      (1,430,874)                  -        (1,430,874)  
  Minority interest         1,477,798              115,881          116,855                  -                  -                  -   Net effect of consolidating Fincorp Group as a subsidiary                 -                    -                 (499)                  -                       -                       -            155,241          154,742       1,337,645       1,492,387  
  Total equity       13,887,940          11,179,815      12,450,526       8,503,675     8,850,853     9,440,905 Transfer to general banking reserve                 -                    -                    -                    -                       -                  6,877            (6,877)                  -                    -                    -    
      109,210,142          92,818,585      99,409,131     92,731,526   82,258,230   88,003,572 At 31st December 2006      2,503,756        (394,080)       1,296,138          510,725         1,832,578            578,786       6,082,239     12,410,142       1,477,798     13,887,940  
   
  CONTINGENT LIABILITIES  
  Acceptances, guarantees, letters of credit, endorsements and other BANK  
    obligations on account of customers, and foreign exchange contracts       20,574,753          19,215,987      16,707,977     19,289,198   18,288,086   15,888,362 At 1st July 2005      2,821,105        (392,539)           45,550                  -           1,582,578            503,610       3,847,881       8,408,185                  -         8,408,185  
  Commitments         3,945,195           3,302,757        4,622,812       3,861,711     3,302,757     4,484,731 Transfer on disposal of investments                 -                    -            (36,571)                  -                       -                       -                    -            (36,571)                  -            (36,571)  
  Assets pledged against facilities granted by the Bank of Mauritius           827,278           1,014,515        1,014,515         827,278     1,014,515     1,014,515 Profit for the period                 -                    -                    -                    -                       -                       -            747,929          747,929                  -           747,929  
  Tax assessment           192,321              173,439          182,880         192,321       173,439       182,880 Total recognised (expense)/ income for the period                 -                    -            (36,571)                  -                       -                       -            747,929          711,358                  -           711,358  
  Other         1,073,715              996,425          782,368       1,073,360       917,070       765,011 Dividends                 -                    -                    -                    -                       -                       -           (268,399)         (268,399)                  -          (268,399)  
        26,613,262          24,703,123      23,310,552     25,243,868   23,695,867   22,335,499 Purchase of treasury shares                 -                (291)                  -                    -                       -                       -                    -                 (291)                  -                 (291)  
  At 31st December 2005      2,821,105        (392,830)             8,979                  -           1,582,578            503,610       4,327,411       8,850,853                  -         8,850,853  
   
  GROUP BANK At 1st July 2005      2,821,105        (392,539)           45,550                  -           1,582,578            503,610       3,847,881       8,408,185                  -         8,408,185  
  Income Statements  Quarter to  Quarter to   6 mths to  6 mths to  Year to  Quarter to  Quarter to  6 mths to  6 mths to  Year to Transfer on disposal of investment                 -                    -            (36,571)                  -                       -                       -                    -            (36,571)                  -            (36,571)  
  31-Dec-06 31-Dec-05 31-Dec-06 31-Dec-05 30-Jun-06 31-Dec-06 31-Dec-05 31-Dec-06 31-Dec-05 30-Jun-06 Fair value gain                 -                    -             31,525                  -                       -                       -                    -             31,525                  -             31,525  
   Rs'000  Rs'000  Rs'000  Rs'000  Rs'000  Rs'000  Rs'000  Rs'000   Rs'000  Rs'000 Net expense recognised directly in equity                 -                    -              (5,046)                  -                       -                       -                    -              (5,046)                  -              (5,046)  
  Interest income      2,269,612       1,726,428       4,334,524      3,319,372         6,906,439           2,034,623        1,548,808       3,916,620     2,991,133     6,263,165 Profit for the year                 -                    -                    -                    -                       -                       -         1,607,063       1,607,063                  -         1,607,063  
  Interest expense     (1,340,605)        (914,689)      (2,544,060)     (1,716,657)        (3,813,251)          (1,280,427)         (856,001)      (2,430,922)    (1,613,868)    (3,605,433) Total recognised (expense)/income for the year                 -                    -              (5,046)                  -                       -                       -         1,607,063       1,602,017                  -         1,602,017  
  Net interest income         929,007         811,739       1,790,464      1,602,715         3,093,188              754,196          692,807       1,485,698     1,377,265     2,657,732 Dividends                 -                    -                    -                    -                       -                       -           (569,006)         (569,006)                  -          (569,006)  
  Other income         693,566         543,377       1,214,732      1,014,504         2,019,367              431,361          411,782         790,481       761,958     1,532,058 Transfer to general banking reserve                 -                    -                    -                    -                       -                29,970          (29,970)                  -                    -                    -    
  Operating income      1,622,573       1,355,116       3,005,196      2,617,219         5,112,555           1,185,557        1,104,589       2,276,179     2,139,223     4,189,790 Transfer to statutory reserve                 -                    -                    -                    -              250,000                     -           (250,000)                  -                    -                    -    
  Non-interest expense        (702,862)        (622,804)      (1,367,653)     (1,219,299)        (2,357,836)             (579,204)         (531,281)      (1,149,829)    (1,045,948)    (1,995,522) Purchase of treasury shares                 -                (291)                  -                    -                       -                       -                    -                 (291)                  -                 (291)  
  Operating profit before provisions         919,711         732,312       1,637,543      1,397,920         2,754,719              606,353          573,308       1,126,350     1,093,275     2,194,268 At 30th June 2006      2,821,105        (392,830)           40,504                  -           1,832,578            533,580       4,605,968       9,440,905                  -         9,440,905  
  Allowance for credit impairment        (121,128)        (104,234)         (186,769)        (187,965)          (320,154)             (111,642)         (104,375)        (173,235)      (186,746)      (313,203) Profit for the period                 -                    -                    -                    -                       -                       -            805,873          805,873                  -           805,873  
  Operating profit         798,583         628,078       1,450,774      1,209,955         2,434,565              494,711          468,933         953,115       906,529     1,881,065 Dividends                 -                    -                    -                    -                       -                       -           (308,659)         (308,659)                  -          (308,659)  
  Exceptional items                 -                    -                    -                   -               78,675                       -                     -                    -                  -           37,800 Shares bought back and cancelled       (317,349)                  -                    -                    -                       -                       -        (1,117,095)      (1,434,444)                  -        (1,434,444)  
  Profit before tax         798,583         628,078       1,450,774      1,209,955         2,513,240              494,711          468,933         953,115       906,529     1,918,865 At 31st December 2006      2,503,756        (392,830)           40,504                  -           1,832,578            533,580       3,986,087       8,503,675                  -         8,503,675  
  Income tax expense        (167,069)        (126,357)         (294,890)        (247,144)          (499,789)               (76,189)           (81,969)        (147,242)      (158,600)      (311,802)  
  Profit for the period         631,514         501,721       1,155,884         962,811         2,013,451              418,522          386,964         805,873       747,929     1,607,063  
   
  Attributable to :- Cash Flow Statements GROUP BANK  
    Ordinary equity holders of the parent         624,053         493,106       1,140,393         947,965         1,986,423              418,522          386,964         805,873       747,929     1,607,063  6 mths to  6 mths to  Year to  6 mths to  6 mths to  Year to  
    Minority interest            7,461             8,615            15,491           14,846             27,028                       -                     -                    -                  -                  -   31-Dec-06 31-Dec-05 30-Jun-06 31-Dec-06 31-Dec-05 30-Jun-06  
          631,514         501,721       1,155,884         962,811         2,013,451              418,522          386,964         805,873       747,929     1,607,063  Rs'000  Rs'000  Rs'000  Rs'000  Rs'000  Rs'000  
  Net cash flows from trading activities         1,037,561          1,629,009       3,615,927          850,365       1,712,988       3,216,461  
  Earnings per share for profit attributable to the ordinary equity Net cash flows from other operating activities         2,678,759           (414,440)       2,008,382       2,437,637          209,884       2,195,632  
    holders of the parent after exceptional items (Rs)              2.33               1.84               4.26              3.53                 7.40 Dividends received from associates              11,898              27,388           45,235                  -                    -                    -    
  Dividends paid           (308,659)           (542,217)         (842,824)         (308,659)         (542,217)        (842,824)  
  Earnings per share for profit attributable to the ordinary equity Dividends paid to minority shareholders in subsidiaries               (3,074)             (10,217)          (20,098)                  -                    -                    -    
     holders of the parent before exceptional items (Rs)              2.33               1.84               4.26              3.53                 7.11 Income tax paid             (36,708)             (94,150)         (447,467)                  -            (35,955)        (337,493)  
  Net cash flows from operating activities         3,379,777            595,373       4,359,155       2,979,343       1,344,700       4,231,776  
  Investing activities           (438,077)           (317,325)      (1,227,843)         (436,163)         (298,900)      (1,101,416)  
  Weighted average number of shares in issue (thousands)         267,364 268,399          267,882 268,399 268,399 Net cash flows before financing         2,941,700            278,048       3,131,312       2,543,180       1,045,800       3,130,360  
  Purchase of treasury shares                     -                    (291)               (291)                  -                 (291)               (291)  
 
Comments on the financial statements

1. The Interim financial statements have been prepared using the same accounting policies as those adopted in the financial statements for the year ended 30th June 2006 and comply with IAS34.

2. RESULTS

Group results for the six months to 31st December, 2006 reached Rs 1140 million, a growth of 20.3 % on the previous year.

Net Interest Income for the Bank was 8 % up on the previous year, spurred by a growth of  6 % in the average loan portfolio over the corresponding six months period in 2005. Interest margin remained under pressure, with the rapidly rising Treasury Bills rates having a delayed impact on Investment income. At the same time, the situation of over-liquidity which had prevailed over recent years seems to be receding, with MCB’s resources now being better channelled towards lending opportunities.

Fees, commissions and Treasury income rose by some 4 % for the bank but by a more robust 19 % for the Group,on the back of a very healthy contribution from our foreign subsidiaries. Share of profits from Associates reached Rs 175 million, an excellent performance, up 24% on the corresponding period in 2005.

Operating expenses grew by 12.2 % and 9.9 % respectively for the Group and the Bank, in line with expectations and mainly reflecting the costs associated with the coming into operations of new IT systems.

Allowances for credit impairment, including charges for Portfolio provision, remained at  the same level as that of the previous period.

3. PROSPECTS

Prospects for the second half of the year, more particularly for our foreign operations, are good .The buy-back of the shares held by Lloyds TSB Bank plc, which was carried out in December 2006, will have a positive impact on earnings per share.
























By order of the Board
Jean-François DESVAUX DE MARIGNY
SECRETARY
Subordinated loan to subsidiary                     -                       -                    -                    -                    -            (21,870)  
  Issue of subordinated debt         1,474,126                     -                    -         1,474,126                  -                    -    
  Share buy back        (1,430,874)                     -                    -        (1,434,444)                  -                    -    
  Capital element of finance lease rental payments               (1,835)               (2,887)            (5,052)            (1,732)            (2,794)            (4,861)  
  Increase in cash and cash equivalents         2,983,117            274,870       3,125,969       2,581,130       1,042,715       3,103,338  
  Cash and cash equivalents brought forward         5,066,420          1,892,719       1,892,719       3,509,006          405,668         405,668  
  Effect of foreign exchange rate changes            174,477              52,670           47,732                  -                    -                    -    
  Cash and cash equivalents carried forward         8,224,014          2,220,259       5,066,420       6,090,136       1,448,383       3,509,006  
   
   
  By order of the Board  
   
   
  14th February 2007  
   
  Copies of the abridged financial statements can be obtained free of charge upon request at the registered office of the Company.  
   
   
  This communiqué is issued pursuant to Listing Rule 12.21  
  The Board of Directors of The Mauritius Commercial Bank Limited accepts full responsibility for the accuracy of the information contained in this communiqué.  
   
                                                                                                   
yle='mso-ignore:colspan'> Dividends received from associates              11,898              27,388           45,235                  -                    -                    -       Dividends paid           (308,659)           (542,217)         (842,824)         (308,659)         (542,217)        (842,824)     Earnings per share for profit attributable to the ordinary equity Dividends paid to minority shareholders in subsidiaries               (3,074)             (10,217)          (20,098)                  -                    -                    -          holders of the parent before exceptional items (Rs)