In the first six months of 2024, Mozambique’s largest commercial banks posted solid financial results, reflecting a scenario of resilience and adaptation to the country’s challenging economic conditions. The latest figures released by Absa Bank Moçambique, Moza Banco, Standard Bank Moçambique, Millennium Bim and Banco Comercial e de Investimentos (BCI) show, to a greater or lesser extent, significant growth in profitability and the ability to adapt to a volatile financial environment.

Absa Bank Moçambique: Profit jumps almost 120%

Absa Bank Mozambique revealed a remarkable performance, with an impressive 119.67% increase in profits, reaching 1,712,680 thousand meticais (approximately US$ 26.76 million) in the first half of 2024, compared to 779,658 thousand meticais (approximately US$ 12.18 million) in the same period of the previous year. This significant growth was achieved despite the drop in interest and similar income, which fell by 8.94% to 4,268,421 thousand meticais (approximately US$ 66.69 million), reflecting the impact of challenging market conditions.

The bank’s net interest income fell slightly to 2,759,835 thousand meticais (approximately US$43.12 million), representing a drop of 6.38% compared to the same period in 2023. In contrast, net operating income grew by 29.92% to 4,440,411 thousand meticais (approximately US$ 69.38 million), highlighting the bank’s operational efficiency.

The bank also reported a slight reduction in its total assets, which fell 4.73% to 73,275,497 thousand meticais (approximately US$ 1.14 billion). However, the bank’s equity increased by 9.28% to 11,233,300 thousand meticais (approximately US$ 175.52 million), further strengthening its financial position.

Moza Banco: From recovery to profit

Moza Banco, for its part, performed significantly well, moving from a loss of 55.6 million meticais (795,000 euros) in the first half of 2023 to a profit of 11.2 million meticais (161,000 euros) in the same period of 2024. This progress marks the continuation of a recovery that began in 2022, when the bank reversed years of losses to finally record profits.

The bank also saw a modest increase of 1.3% in its total assets, which amounted to 59,782 million meticais (855.7 million euros) by June 2024, while total liabilities rose by 2% to 50,199 million meticais (718.5 million euros). The designation of Moza Banco as a systemic institution by the Bank of Mozambique highlights its importance in the national financial sector.

Standard Bank Mozambique: Modest but solid growth

Standard Bank Moçambique, another bank considered systemic, recorded a modest 3% increase in profits, which amounted to 3,936 million meticais (57 million euros) in the first half of 2024, compared to the same period in 2023. The bank also showed a 6.25% growth in its total assets, which reached 168,874 million meticais (2,447 million euros), while liabilities grew by 9.7% to 135,069 million meticais (1,957 million euros).

Despite challenges such as the fall in the proportion of earning assets, Standard Bank managed to maintain a solid financial performance, demonstrating the effectiveness of its business strategy.

Millennium bim: Profits down, but assets up

Millennium bim, one of the country’s main banks, saw its profits fall by 4% in the first half of 2024, totaling 3,225 million meticais (46.7 million dollars), in contrast to 3,367 million meticais (48.8 million dollars) in the same period of 2023. However, the bank recorded growth of 4.6% in its total assets, reaching 199,129 million meticais (2,880 million dollars), and an increase of 7.5% in its liabilities, which amounted to 165,040 million meticais (2,387 million dollars).

The bank continued to strengthen its market position under the new leadership of Moisés Jorge, highlighting its commitment to valuing internal staff and effective cost management.

BCI: Solid growth and market leadership

Finally, Banco Comercial e de Investimentos (BCI) strengthened its position as Mozambique’s largest bank, posting a 2.8% growth in profits, which totaled 3,549 million meticais (51.4 million dollars) in the first half of 2024. The bank also reported a 7.8% increase in its total assets, which reached 226.3 billion meticais (3,279 million dollars), and a 10% growth in liabilities, which reached 196.9 billion meticais (2,852 million dollars).

BCI maintained its leadership in the Mozambican banking sector, with a market share of 25.80% in credit, 25.39% in deposits and 22.89% in assets, currently serving 2.3 million customers throughout the country.

Overall, the first half of 2024 proved to be challenging but also promising for Mozambique’s main banks. Although each institution faced specific challenges, the overall picture indicates robust resilience in the country’s banking sector, with several institutions reporting growth in profits, asset expansion and strengthening of their market positions. These results not only reflect the effectiveness of the strategies implemented, but also set the stage for sustainable growth in the future.