The profits of Banco BiG Mozambique, a subsidiary of the Portuguese Global Investment Bank (BiG), doubled in the first half of 2024, reaching 159.9 million meticais (2.3 million dollars), compared to the same period in 2023, Lusa reported.
According to the financial statements for the first half, this performance contrasts with the net profit of 80.9 million meticais (1.2 million dollars) recorded in the first six months of 2023, representing a 49.4 per cent growth in profits.
Banco BiG Moçambique’s total assets fell by 6.6 per cent by the end of June to 4.5 million meticais (65.3 million dollars), compared to the end of 2023, while total liabilities fell by 11.4 per cent to 2.2 million meticais (32.9 million dollars).
“The Bank’s board of directors carried out an assessment of its ability to continue operating and concluded that it has the capital, systems and resources to continue operating for the foreseeable future. In addition, the board of directors believes that the Bank’s management is not aware of any material uncertainties that may cast significant doubt on the Bank’s ability to continue as a going concern. Accordingly, the financial statements were prepared on a going concern basis,’ reads the report.
BiG Mozambique’s profits fell to 274.2 million meticais (4 million dollars) in 2023, according to the report and accounts.
‘BiG’s performance in 2023 was influenced by the context of the restrictive monetary policy adopted by the Bank of Mozambique, namely the increase in mandatory reserve coefficients (…), as well as the maintenance of key rates at high levels,’ the document states.
‘BiG’s performance in 2023 was influenced by the context of the restrictive monetary policy adopted by the Bank of Mozambique, namely the increase in the coefficients of mandatory reserves (…), as well as the maintenance of key rates at high levels’
‘In this context, and following a downgrade of the rating for the country’s liabilities in local currency, BiG maintained cautious balance sheet management, which translated into a gradual reduction of its banking portfolio, in parallel with maintaining a comfortable liquidity situation throughout the year, namely in investments with the central bank and other short-term securities,’ it adds.
According to the report, this performance represents a drop in profits of just over 0.5 per cent, compared to the 275.9 million meticais (4.05 million dollars) recorded in 2022.
BiG Moçambique was set up in 2016 and its capital is mainly held (82.6 per cent) by Banco de Investimento Global, S.A., based in Lisbon, with stakes held by Empresa Moçambicana de Seguros (11.1 per cent) and insurance companies Hollard Moçambique (2.9 per cent) and FPTM (2.2 per cent), among others.
Data from the Bank of Mozambique indicates that 15 commercial banks and 12 microbanks operate in the country, as well as credit cooperatives and savings and credit organisations, among others.