Mozambican bank reacts to rumors of bankruptcy with assurances of soundness

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Mozambican bank reacts to rumors of bankruptcy with assurances of soundness

8:46 CAT | 26 Jul 2016

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Moza Banco, 49-percent owned by Novo Banco of Portugal and one of Mozambique’s leading financial institutions, has responded to rumours of impending bankruptcy in a statement which reasserts its soundness.

The bank has reacted to social media messages of unknown origin suggesting that Moza Banco was about to declare bankruptcy and recommending clients withdraw their deposits.

“This disinformation campaign has been sophisticated and defamatory, circulating baseless falsehoods and urging customers to withdraw their deposits on the grounds that the institution is facing difficulties” the Moza Banco statement reads.

According to Moza Banco, this kind of campaign “is on the increase since the intervention of the resolution fund in the BES in 2014”.

“The board of Moza Banco and Bank of Mozambique, as the regulator and supervisor, are monitoring these events, and concrete measures are being taken to ensure the credibility of, and confidence in, the financial system,” the statement reads.

“The figures and the performance we have posted in recent years clearly demonstrate the opposite, and reinforce the conviction of our shareholders and managers that Moza is continuing on its path of innovation and growth,” it says.

Moza also says that it “is aware of the country’s economic situation”, marked by substantial devaluation of the metical, slowdown in the growth of gross domestic product, a fall in investment descent and rising inflation, adding that it “is implementing measures to mitigate and circumvent adverse impacts”.

In 2015, Moza recorded net profit of 81.7 million meticais (1.1 million euros at current exchange rates), down from 153 million meticais (two million euros) in the previous year.

This reduction, according to the institutions 2015 financial report, was “expected and normal”, noting that the bank “is in the expansion phase of its network and consolidation of processes and business, and costs absorb most revenue at this stage”.

Founded in 2008, Moza is the fourth largest bank in the country, owned 50.9 percent by Mozambique Capital and 49 percent by Portuguese Novo Banco.

Moza underwent a rebranding exercise in 2015, and now has 800 workers in 59 business units across the country, 76,000 customers and a 7.2 percent Mozambican market share in loans, 7.68 percent in deposits and 8.88 percent in assets.

Source: Lusa