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Standard Bank Mozambique doubled its profits in 2017, according to the bank’s report and accounts released yesterday and consulted by Lusa.
The bank’s net results rose 101 percent in 2017, from 2,781 million meticais (EUR 39 million) in 2016 to 5,595 million meticais (EUR 78.5 million).
“The bank achieved exceptional results despite the difficult operating environment,” the document says.
Global operations followed “the general decline of business and consumption in the economy”, but the bank says it has taken steps to “counterbalance the pressure”.
Among them was a strategy “to change the financing base for cheaper passives” which “paid off in 2017” for Standard Bank Mozambique.
“Although interest costs have tripled in annual terms, the positive balance sheet differential has had a strong countervailing effect, resulting in a financial margin with an annual growth of 77 percent,” the bank notes.
The growth in customer deposits, which was 23.3 percent in 2016, slowed to 6.7 percent in 2017. Loans to customers fell by 25.3 percent, a reversal in the growth trend taking place at least since 2013, according to the report.
The bank also announces in the document an improvement in its solvency ratio from 16.96 to 20.41 percent, well above the 8 percent minimum regulatory requirement.
Standard Bank Mozambique is the third largest retail banking institution in Mozambique by total assets, according to the latest ranking prepared by the firm KPMG for the Mozambican Association of Banks, and based on data from 2016.
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