Mozambican Banco Único declares EUR2 million 2015 profit

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Mozambican Banco Único declares EUR2 million 2015 profit

11:29 CAT | 20 Apr 2016

Banco Único made a 117 million meticais (EUR2 million) net profit in 2015, despite economic instability in Mozambique, Mozambique’s sixth largest bank reported yesterday.

“Despite the adverse macroeconomic environment that the country experienced, Banco Único in 2015 recorded an excellent performance in all components of its balance sheet,” a statement released by the company yesterday states.

Banco Único, part-owned by Amorim Group and Visabeira, reported 38 percent growth in deposits, above market rates, and 23 percent growth in credit compared to 2014, “allowing an increase in its market share and earn net income 494 percent higher than 2014”.

The bank’s profitability and sustainability indicators, “consolidate Banco Único as a reference institution in the [Mozambican] financial system” now ranking sixth in market share, said Magid Osman, Chairman of the Board of Directors.

The bank notes that despite the unstable economic situation in Mozambique, the overall results of the past year are positive, with the company’s solvency ratio standing at 16.4 percent.

The Mozambican economy has been hit by a sharp drop in the value of the metical against the dollar, as well declining exports and rising inflation caused by factors such as the low price of raw materials, persistent drought affecting hundreds of thousands of people in the south of the country, and the political and military crisis in the centre of the country.

In addition, the country faces a worsening public debt scenario at a time when the country’s success in restructuring a US$850 million state tuna company loan has been undermined by revelations in the international press about two further undisclosed loans in the Ematum portfolio.

In March 2015, Banco Único announced the resignation of João Figueiredo as chairman of the executive committee, after three years as the head of the bank. Vice president Antonio Correia temporarily filled the post.

In addition to the Amorim Group and Visabeira, Banco Único shareholders include Nedbank, João Figueiredo, SF Holding, National Institute of Social Security and DHD,.

The bank has 19 branches in seven Mozambican cities.

Source: Lusa