Mozambique: Profits at bank BIM halved in first six months

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Mozambique: Profits at bank BIM halved in first six months

1:29 CAT | 26 Aug 2025

File photo: Lusa

The profits of bank BIM Moçambique, the bank of the Portuguese group BCP, halved in the first half of the year, to just under 1,669 million meticais (€22.4 million), compared to the same period in 2024.

According to information from the January-June financial statements, this performance compares with the 3.225 billion meticais (€43.3 million) in net income in the first six months of 2024.

The bank’s total assets had grown, at the end of June, to 206.118 billion meticais (€2.769 million), including 45.773 billion meticais (€615 million) in customer loans, slightly higher than the end of 2024. Liabilities rose to 170.092 billion meticais (€2.286 million), accounting for 163.604 billion meticais (€2.198 billion) in deposits, which also increased.

The International Bank of Mozambique (BIM) began operations in October 1995, as a result of a strategic partnership between Banco Comercial Português (Millennium BCP) and the Mozambican state.

As of December 31, 2024, it had share capital of 4.5 billion meticais (€60.5 million), the majority held by BCP África (Millennium BCP group), with a 66.69% stake, followed by the State of Mozambique (17.12%), the Mozambican National Social Security Institute (4.95%), and the Mozambican Insurance Company (4.15%), among other shareholders.

BIM Mozambique’s profits had already fallen by more than half in 2024, to 3,309 million meticais (€44.5 million), according to data from the annual report and accounts previously reported by Lusa.

According to the bank, this represents a 54% reduction compared to the 2023 net profit, when it reached 7,211 million meticais (€96.9 million) – an 8.2% increase in one year at the time – “essentially explained by increases in impairments and provisions”.

“Reflecting the increase in impairments for public debt,” BIM, one of the country’s three largest banks, explained in its annual report and accounts, noting that impairments on public debt securities increased by 2.1 billion meticais (€28.2 million) last year, “following the downward rating review for government issues in national currency”.

BIM emphasizes, however, that the solvency ratio increased due to the increase in equity, reaching 36.7%, “considerably above the regulatory limit of 12%, reflecting the bank’s resilience and financial strength”.

The bank’s management then decided not to distribute dividends to shareholders from its 2024 profits, using them instead to strengthen reserves, due to the recent rating decisions on Mozambican sovereign debt.

Source: Lusa