Africa-Press – Mozambique. FNB Mozambique, a bank owned by South Africa’s FirstRand group, last year saw its net profits fall by 75% from the previous year’s figure, to 49.3 million meticais (€717,000), according to the report and accounts consulted on Tuesday by Lusa, with the institution describing the results as “acceptable.”
The bank’s “profit reduction” in 2023, the report says, was “motivated by the significant increase in regulatory mandatory reserves [minimum reserve requirements]”, mandated by the Bank of Mozambique, as well as by “the increase in credit impairment resulting from the deterioration of the risk classification of the country, [interbank network] system migration costs aimed at complying with regulatory requirements, strategic projects and brand repositioning costs”.
“The bank’s board of directors and management remain enthusiastic about the Mozambican market, and believe that the bank’s evolution will guarantee sustainable profitability in the long term,” the FNB Moçambique management report for 2023 also comments.
In 2022, FNB, which has just over 450 employees and 15 branches, had presented net results of 197.4 million meticais (€2.8 million).
FNB Mozambique, 99.99% owned by FirstRand EMA Holdings, closed 2023 with total assets that grew to 25,116 million meticais (€365.3 million), including 5,746 million meticais (€83.5 million) in customer loans, while liabilities grew to 21,534 million meticais (€313.2 million), namely 20,804 million meticais (€302.6 million) in customer deposits.
The bank’s equity capital grew last year to 4,657 million meticais (€67.7 million).
Data from the central bank indicate that 15 commercial banks and 12 micro-banks operate in Mozambique, as well as various credit cooperatives and savings and credit organizations, among others.
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