Net results of Mozambique’s two largest banks fall by almost a quarter

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Net results of Mozambique’s two largest banks fall by almost a quarter

8:24 CAT | 23 Apr 2021

in fie CoM

According to reports and accounts consulted by Lusa today, the net results for fiscal year 2020 of Mozambique’s two largest banks fell by almost a quarter compared to 2019, mainly because of the Covid-19 pandemic.

Millennium Bim says that “the net result reflects the contraction in economic activity, from seven billion meticais (€94 million) to 5.3 billion meticais (€71 million), a reduction of 23.8%”.

The bank indicates that its solvency ratio remains “robust, standing at 43.9%, well above the 12% minimum imposed by the supervisory entity”.

Millenium Bim considers that “the national banking system has remained solid, resilient and well capitalised to support companies and families”.

With the economic crisis generated by Covid-19 and the behavioural changes of consumers of financial services, “the need to accelerate digital transformation programs” remains paramount.

Banco BCI, meanwhile, announced “a reduction of 22.65%” compared to 2019, down 782.4 million meticais (€10.5 million).

BCI “took a conservative stance aimed at mitigating the potential adverse impacts of the pandemic on the balance sheet, proceeding to a significant reinforcement of impairments and provisions, which was reflected on the evolution of the net result, having totalled 2.6 billion meticais (€35 million)”.

The solvency ratio stood at 24.54% (24.98% in 2019), “being above regulatory requirements”, the bank added.

BCI is owned by Parbanca (Caixa Geral de Depósitos group, 51%), BPI (35.67%), CGD (10.51%), BCI (own shares, 2.45%) and other shareholders (0.37%).

Banco Comercial Português (BCP) África SGPS holds 66.69% of Millennium Bim, whose shareholder structure also includes the Mozambican state (17.12%), the Mozambican National Social Security Institute (4.95%), the Mozambican Insurance Company (Emose, 4.15%), the Community Development Foundation (FDC, 1.08%), and with 6.01% of shares belonging to managers, technical staff members and other workers.

The annual systemic importance index released this week by the Bank of Mozambique confirms BCI and Millennium Bim as the two most important financial institutions in Mozambique.

Source: Lusa