Mozambique: Millennium bim bank names new Chairman

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Mozambique: Millennium bim bank names new Chairman

2:02 CAT | 10 May 2024

File photo: Millenium bim

This Thursday (09-05), the Bank of Mozambique approved a proposal from the shareholders of Millennium BIM, the second largest bank in the country, to appoint new members of its corporate bodies, with the board of directors now being chaired by Moisés Jorge.

A statement from Millennium Internacional Bank of Mozambique (BIM) announcing the decision recalls that Moisés Jorge is a senior member of the institution who, in 1994, joined the team that would launch the bank the following year. It stresses that this appointment “reflects the commitment” to a “culture of merit and appreciation of its staff”.

Millennium BIM also announces the “resignation” of João Cunha Martins from the position of President of the Executive Committee “for personal reasons”.

Joao Cunha Martins’ “commitment to excellence and his leadership capacity were invaluable to the bank at a crucial moment in the development and growth of the Mozambican economy”, the same statement reads.

Millenium BIM “has already started the selection process” of a new chairman of the executive committee, and “is committed to ensuring a smooth and efficient transition”.

During the transition period, the current financial administrator (CFO), Rui Maximino, “will temporarily assume the responsibilities of President of the Executive Committee”.

As of December 31, 2023, the bank had share capital of 4,500 million meticais (€65.7 million), the majority held by BCP Africa (Millennium BCP group), with 66.69%, followed by State of Mozambique (17.12%), the Mozambican National Social Security Institute (4.95%) and the Mozambican Insurance Company (4.15%), among others.

These changes come seven days after the central bank appointed a member of its own staff as resident inspector at Millennium BIM bank, to monitor the payments system and the business model.

In a statement, the central bank announced that resident inspector Hélder Manuel Chachuaio Muianga began his duties on May 2, situating the decision in the field of “supervision”, but ensuring that the bank “remains solid and stable”.

“The resident inspector will, among other tasks, monitor the bank’s payments system, business model and strategy; monitor and analyse developments in the bank’s management and internal control system; and participate in relevant meetings of collegial bodies,” the statement reads.

READ: Mozambique: Supervisor puts resident inspector in BIM to monitor payment system – Lusa

This month, Millennium BIM published an apology to customers “for the various anomalies” in the use of cards, ATM and POS “in recent days”. These problems involve the new interbank network [SIMO Rede] in Mozambique and have affected several other banks, leading to widespread complaints about payment difficulties from customers and businesspeople.

“Our teams have been working intensely to resolve these problems. At this moment the situation is normalised and services have been re-established. We will continue to monitor the situation, in order to ensure service availability,” the same Millennium BIM message reads.

READ: Mozambique: SIMO Rede failures causing “incalculable losses” – CTA | Watch

Vodacom Mozambique sees mobile wallet as an alternative to problems on the interbank network

In 2023, BIM profits increased by 8.2%, compared to the previous year, to 7,211 million meticais (€105.3 million), according to the report and accounts previously consulted by Lusa.

Millennium BIM reported profits of 6,613 million meticais (€96.6 million) in the 2022 financial year and closed last year with 2,574 employees (+2.8%), more than 1.9 million customers (up almost 100,000 in one year), and 195 branches.
“Despite the challenging scenario, Millennium BIM remains solid and resilient, supported by good governance, sound and prudent risk management and strict compliance with regulatory standards,” a message from the board of directors in the 2023 report and accounts reads.

The bank approved a management proposal to distribute 82.5% of 2023 profits in dividends to shareholders, led by BCP, equivalent to almost 5,949 million meticais (€86.9 million), the remainder to be held in reserve.

Source: Lusa