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The growth in profits saw an increase in the return on average equity, to 7.09%, compared to 5.78% in 2022, and in the return on average assets, to 2.28%, compared to 2.02% in 2022
The profits of Mozambique’s state-owned National Investment Bank (BNI) last year swelled by 30% to more than 269.2 million meticais (€3.8 million), according to the report and accounts to which Lusa had access last week’s Monday.
The growth in profits saw an increase in the return on average equity, to 7.09%, compared to 5.78% in 2022, and in the return on average assets, to 2.28%, compared to 2.02% in 2022, states the bank, which is fully owned by the Mozambique state through the Institute for the Management of State Holdings (IGEPE).
In addition, the bank notes, it’s capital and liquidity levels improved significantly, with the solvency ratio rising to 23.50%, compared to 17.57% the previous year, and the liquidity ratio to 106.89%, compared to 95.39% in 2022, above the regulatory minimums of 12 percent and 25 percent, respectively.
The year 2023 was challenging due to the high uncertainties and internal and external risks that conditioned the performance of the Mozambican economy in general and the banking sector in particular. In 2023, non-performing loans did favorably with a notable reduction of 32.50%” to 1.340 billion meticais (€19.2 million) and were now almost all covered by guarantees, limiting potential financial losses.
However, although non-performing loans fell by 435 million meticais (€6.2 million) in one year, “the fall in the volume of the loan portfolio ended up limiting the quality improvement compared to 2022 to just 1.21%, with the bank ending last year with a total loan portfolio of 4.651 billion meticais (€66.9 million).
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The bank ended 2023 with total liabilities of more than 8.352 billion meticais (€120.1 million), an increase of 11.26% compared to 2022, driven by the 84.09% increase in customer funds (deposits), to 1.180 billion meticais (€16.9 million), and bond loans (12.57%), reflecting the broadening of the partner base.
