Photo: Rádio Moçambique
The profits of Mozambican banks fell by 38.85% in 2025 to 15.13 billion meticais (208 million euros), despite the sector maintaining levels considered robust for capitalization and liquidity, according to the central bank.
According to the conclusions of the 2025 Financial Stability Report of the Banco de Moçambique, the sector’s net income amounted to 15.13 billion meticais (208 million euros), a reduction of 38.85% compared to the previous year. This compares with approximately 24.74 billion meticais (339 million euros) in 2024, according to a calculation by Lusa based on data from the report, which updates previous estimates. The profits of Mozambican banks had already retreated by 21.9% in 2024, following an 8.12% increase in 2023.
Despite the drop in profits last year, the central bank considers that the sector remained solid, highlighting that the global solvency ratio reached 28.14%, well above the regulatory minimum of 12%.
“The banking sector remained stable, with satisfactory profitability and adequate levels of capitalization and liquidity,” the report states.
According to the Banco de Moçambique, the reduction in profits resulted from an increase in operational costs, particularly personnel expenses, and a decrease in operating income, reflecting an increase in impairment losses.
The report notes that personnel costs grew by 5.69% in 2025 and adds that the increase in impairments occurred despite an improvement in the quality of the credit portfolio, with the non-performing loan (NPL) ratio retreating from 9.31% in 2024 to 7.47% in 2025.
The short-term liquidity coverage ratio stood at 60.46%, above the regulatory minimum of 25%, while the leverage ratio reached 12.88%.
The return on assets (ROA) and return on equity (ROE) profitability ratios stood at 2.16% and 8.63%, respectively, remaining at satisfactory levels according to the central bank.
The report also points out that the three banks of systemic importance—BCI (of the Caixa Geral de Depósitos group), Millennium BIM (of BCP), and Standard Bank—continue to dominate the market, although their combined market share continued to decrease, reflecting growing competition in the banking system.
Data from the Banco de Moçambique indicates that the Mozambican banking sector comprises 15 commercial banks, in addition to microbanks, credit cooperatives, and other financial institutions.
Lusa reported in May that the five largest banks in Mozambique, including BCI, Millennium BIM, and Standard Bank, recorded an aggregate drop of 70.4% in net income for 2025, penalized by their exposure to Mozambican public debt following rating downgrades.
According to data compiled by Lusa from the financial statements disclosed by the five largest banks, the group of these institutions totaled profits of 5,099 million meticais (68.7 million euros), suffering a decrease in net income of 12,131 million meticais (163.5 million euros) in absolute terms.
The performance of these institutions was heavily penalized by the deterioration of sovereign risk, the reinforcement of impairments associated with public debt, and an adverse macroeconomic context, according to information reported by the banks themselves in their respective financial statements.
Source: Lusa