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Absa Bank’s Profits in Mozambique Soar Almost 60% to a Record €24.2M in 2023

Absa Bank’s Profits in Mozambique Soar Almost 60% to a Record €24.2M in 2023

Absa Bank Mozambique’s accounts report reveals that the profit of the financial institution, one of the five largest in the country, grew by 58.7% in 2023, to a record 1.6 billion meticals (24.2 million euros).

“Our economy has shown a good capacity, almost across the board, to recover and Absa once again stood out for the sustainability and viability of its business model and its ability to manage risks in challenging contexts, leading to solid annual results,” acknowledged Luísa Diogo, chairman of the bank’s Board of Directors, in the message contained in the report, consulted this Thursday, April 2, by Lusa.

She added: “our strong performance in fiscal year 2023 encourages us to believe that we are on track to achieve our strategic objectives.”

Absa Bank Moçambique’s share capital is 98.68 per cent owned by the South African group Absa, with the remaining 1.32 per cent controlled by minority shareholders, such as employees and others.

The financial institution’s 2023 profit compares with net profits of 1 billion meticals (14.9 million euros) in 2022 and 633.8 million meticals (9.2 million euros) in 2021.

“As of 31 December, Absa Bank Moçambique had total assets of 76.9 billion meticals (1.1 billion euros), which grew 16.4% in one year, while total loans fell 3.7% to 25.8 billion meticals (376.7 million euros). Deposits grew by 5 per cent to 55.1 billion meticals (804.7 million euros)”.

Absa Bank report

With 48 branches and 714 employees, Absa Bank closed 2023 with a market share of 9.6 per cent in loans to customers, 8.8 per cent in deposits and 8.4 per cent in total assets in Mozambican banking.

Operating income grew by 16.2% in 2023, to 7.7 billion meticals (113.6 million euros), and the financial institution had 7.4% of its total loans in default by 31 December.

Absa Bank says that in 2023 it met the minimum requirements demanded by the Bank of Mozambique by a “significant margin”, with a liquidity ratio of 33.9 per cent and a solvency ratio of 20 per cent, above the regulatory minimums of 25 per cent and 13 per cent, respectively.

“In 2023, Absa Bank complied by a “significant margin” with the minimum requirements demanded by the Bank of Mozambique, with a liquidity ratio of 33.9 per cent and a solvency ratio of 20 per cent, above the regulatory minimums of 25 per cent and 13 per cent, respectively.”

Absa Bank report

The bank is one of Africa’s largest financial services groups, with around 38,000 employees, a presence in 12 African countries and a listing on the Johannesburg Stock Exchange.

The group includes operations in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania, Uganda and Zambia, as well as offices in Namibia and Nigeria, and an international presence in London (United Kingdom) and New York (United States of America).

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