Mozambique: Mozambique: Banco Absa more than doubles profits in H1

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Mozambique: Mozambique: Banco Absa more than doubles profits in H1

1:24 CAT | 07 Aug 2024

File photo: Diário Económico

The profits of Absa Bank Mozambique, one of the country’s five largest banks, more than doubled in the first half of this year to 1.712 billion meticais (€24.5 million), more than in the whole of last year.

According to the bank’s financial statements report to 30 June, this represents a 120% increase in profits compared to the same period in 2023, when it recorded a positive net result of 779.6 million meticais (€11.1 million).

Absa Bank Mozambique’s share capital is 98.68% owned by the South African group Absa, with the remaining 1.32% controlled by minority shareholders, including employees.

This year, the Bank of Mozambique designated Absa as one of the two financial institutions considered “systemic”, according to a list published in April.

The bank closed the first half of the year with total assets of 73,275 million meticais (€1,048 million), a drop of 4.7% compared to the same period last year, while total liabilities fell 6.8% to 62,042 million meticais (€887.8 million).

Absa Bank Mozambique’s profits had already grown 58.7% in 2023, to a record 1,663 million meticais (€24.2 million), according to the report and accounts.

“Our economy has demonstrated a good capacity, almost across the board, to recover and Absa has once again stood out for the sustainability and viability of its business model and its ability to manage risks in challenging contexts, leading to solid annual results,” acknowledged the then chairwoman of the board of directors, Luísa Diogo, in a message contained in last year’s report and accounts.

Absa in Mozambique had also recorded positive net results of 1,022 million meticais (€14.9 million) in 2022 and 633.8 million meticais (€9.2 million) in 2021.

Absa Group is one of the largest diversified financial services groups in Africa, with around 48,000 employees and a presence in 12 African countries. It is listed on the Johannesburg Stock Exchange.

The group has operations in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania, Uganda and Zambia, in addition to offices in Namibia and Nigeria and an international presence in London and New York.

Source: Lusa