Banco Comercial e de Investimentos (BCI), majority owned by Caixa Geral de Depósitos – Portugal’s largest financial institution – recorded a 2.8 per cent increase in profits in the first half of 2024, surpassing 3.5 billion meticals (54 million dollars), according to information released by Lusa.
According to the financial statements report for the period from January to June, Mozambique’s largest bank made a net profit of 3.5 billion meticals (54 million dollars), compared to 3.4 billion meticals (52 million dollars) in the first half of 2023.
BCI ended the first half of the year with total assets of 226.3 billion meticals (3.5 billion dollars), an increase of 7.8 per cent compared to the end of 2023. Total liabilities rose 10 per cent in the same period, reaching 196.9 billion meticals (3 billion dollars).
The 2023 result was impacted by an increase in impairments and provisions, totalling more than 1.2 billion meticals (18.6 million dollars), “due to the bank’s prudent policy in assessing risks and the need to cover” its assets.
The board emphasises that both the 2023 and 2022 net results were affected by extraordinary positive and negative effects, such as “the recovery of a significant loan already written off”, and the negative impact of the Euronet platform upgrade project, which increased costs.
The report also highlights that BCI ended 2023 with 2734 employees and 211 branches across the country, with the number of customers growing by 4.9 per cent in the year, to 2,285,251.
The bank ended the year with total net assets of 209.8 million meticals (3.2 million dollars), an increase of 3.80 per cent, while the volume of loans to customers grew by 4.27 per cent to 73.7 million meticals (1.1 million dollars). Customer funds (deposits) increased by 0.43 per cent to 159.5 million meticals (2.4 million dollars).
Total non-performing loans fell to 8.1 billion meticals (125.6 million dollars), corresponding to 11 per cent of the total, with 80 per cent covered by impairments.
At the end of 2023, the bank had a share capital of 10 billion meticals (155.1 million dollars), with Caixa Participações, part of the Caixa Geral de Depósitos (CGD) group, holding 51 per cent of the shares, while Portuguese bank BPI had 35.67 per cent and CGD had 10.51 per cent, among other shareholders.
“Confirming the merit of the strategy adopted, BCI maintained its leadership of the national banking sector in 2023 in the main activity indicators, achieving a market share of 25.80 per cent in credit, 25.39 per cent in deposits and 22.89 per cent in assets, with reference to December”
According to the information, BCI had already recorded a 1.28% increase in profits in 2023, totalling almost 129.6 million dollars.
“Confirming the merit of the strategy adopted, BCI maintained its leadership of the national banking sector in 2023 in the main activity indicators, achieving a market share of 25.80 per cent in credit, 25.39 per cent in deposits and 22.89 per cent in assets, with reference to the month of December,” the board states in the report.
BCI “serves 2.3 million customers in the national market” and is “the largest financial institution operating in the financial system”.
After a 55 per cent increase in profits in 2022, to 8 billion meticals (124.1 million dollars), the bank reported a positive result of 8.1 billion meticals (125.6 million dollars) in 2023, “driven by sustainable growth in operating income, comfortable liquidity levels and adequate control of operating costs”.
The board of directors proposed distributing 62.94% of the 2023 profits in dividends, totalling almost 5.1 billion meticals (79.1 million dollars), with the remainder earmarked for free and legal reserves.
The 2023 result was impacted by an increase in impairments and provisions, totalling more than 1.2 billion meticals (18.6 million dollars), “due to the bank’s prudent policy in assessing risks and the need to cover” its assets.
The board emphasises that both the 2023 and 2022 net results were affected by extraordinary positive and negative effects, such as “the recovery of a significant loan already written off”, and the negative impact of the Euronet platform upgrade project, which increased costs.
The report also highlights that BCI ended 2023 with 2734 employees and 211 branches across the country, with the number of customers growing by 4.9 per cent in the year, to 2,285,251.
The bank ended the year with total net assets of 209.8 million meticals (3.2 million dollars), an increase of 3.80 per cent, while the volume of loans to customers grew by 4.27 per cent to 73.7 million meticals (1.1 million dollars). Customer funds (deposits) increased by 0.43 per cent to 159.5 million meticals (2.4 million dollars).
Total non-performing loans fell to 8.1 billion meticals (125.6 million dollars), corresponding to 11 per cent of the total, with 80 per cent covered by impairments.
