Maputo, 1 Jul (AIM) – The Bank of Mozambique, in its role as regulator of the national financial system, has announced that the profits of Mozambican commercial banks, over the last year, fell by 21.9 percent, corresponding to 5.2 billion meticais (78.2 million dollars at the current exchange rate).
According to the financial stability report, the reduction in the banks’ net profits, which totalled 24 billion meticais (375.7 million dollars) is the result of “an increase in operating costs, particularly personnel costs, by 7.88%, but also of a reduction in other operating results, reflecting a 44.60% increase in impairment losses”.
The document recalls that, in 2023, the profits of Mozambican banks had grown by 8.12% compared to 2024. “In the 2024 result, 64.63%, equivalent to 16.82 billion meticais, correspond to only three domestic credit institutions classified as systemic. These are the Commercial Investment Bank (BCI), owned by the Portuguese Caixa Geral de Depósitos, the South African Standard Bank and the International Bank of Mozambique (BIM), part of the Portuguese BCP group.”
“The banking sector remains profitable and with adequate levels of capitalization, liquidity and profitability, despite the reduction in asset quality. In 2024, the overall solvency ratio stood at 26.11%, above the regulatory minimum of 12.00%”, reads the report.
On the other hand, the short-term liquidity coverage ratio stood at 49.64%, also above the regulatory minimum of 25%.
The document also states that the Return on Assets (ROA) and Return on Equity (ROE) ratios of Mozambican banks were set at 3.38% and 13.91% in 2024, respectively, against 4.66% and 19.11% in 2023.
There are 15 commercial banks and 12 micro-banks operating in Mozambique, in addition to credit cooperatives and savings and credit organizations.
(AIM)
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