Mozambique: Millennium bim net income up 40.5%

Login

Register

http://www.clubofmozambique.com/

Mozambique: Millennium bim net income up 40.5%

1:04 CAT | 03 May 2022

File photo: Lusa

The Mozambican bank Millennium bim, majority-owned by the BCP group, recorded a 40.5% increase in net income for 2021, according to the report and accounts consulted by Lusa this Tuesday.

Income rose from 5.3 billion meticais to 7.4 billion meticais (€110 million) due to the “favourable evolution of net interest income, net commissions and the capital gain resulting from the sale of 70% of the stake in the capital of insurance company Seguradora Internacional de Moçambique” to Fidelidade, the document reads.

The bank also highlights the “reduction in credit impairment from 2.4 billion meticais (€35.8 million) to 300 million meticais (€4.5 million).

“This reduction reflects the bank’s prudence in 2020 in the face of a more complex economic context, which essentially consisted of penalising profitability and strengthening the robustness of the balance sheet,” the report indicates.

In other indicators, the institution maintains “comfortable solvency levels, set at 44.8% in 2021 compared to 43.9% in the previous year”, that is, more than triple the regulatory minimum.

The bank also highlights that mobile access platforms have once again become “a channel of choice for customers” with an increase in subscriptions from 36% to 267% within the range of applications made available.

Millennium bim has 1.8 million customers, 199 branches and 2,500 employees, being the main one of the three systemic banks in the Mozambican financial system (according to the latest update from the Bank of Mozambique), followed by BCI (majority-owned by CGD and BPI), which in 2021 almost doubled its net result.

Standard Bank, the third structural bank in the system, recorded a 9.8% drop in net income.

The Mozambican economy grew by 2.16% in 2021, following a 1.28% contraction in 2020.

Source: Lusa