Non-performing loans in the Mozambican banking sector decreased to nearly 28 billion meticais (384 million euros) in 2025, representing 7.47% of total loans granted. The figure was lower than the levels recorded in 2024, according to official data cited by Lusa.
According to the annual report of the Bank of Mozambique (BdM), the national banking sector “remained stable, with satisfactory profitability and adequate levels of capitalization and liquidity” during 2025, despite the economic challenges faced by the country.
The central bank notes that the non-performing loans (NPL) ratio stood at 7.47%, reflecting “an improvement in the quality of the loan portfolio,” as a result of the restructuring and settlement of delinquent loans carried out by banking institutions.
The developments recorded in 2025 allowed for a resumption of the downward trend in non-performing loans, which had been interrupted in 2024 when the ratio reached 9.31%. In absolute terms, nonperforming loans decreased from 30 billion meticais (417 million euros) in 2024 to 28 billion meticais (384 million euros) at the end of 2025, representing a 7.97% reduction.
Despite this improvement, the BdM warns that the non-performing loan ratio remains above the 5% threshold generally considered prudent at the international level. The central bank believes that this situation requires close monitoring in order to preserve the quality of the banking sector’s loan portfolio.
Among the sectors of activity, agriculture had the highest non-performing loan ratio, at 17.42%, followed by transportation and communications, at 14.08%; industry, at 13.23%; and commerce, at 9.62%. According to the BdM, these levels reflect, in part, the impact of post-election instability and climate shocks.
Nevertheless, the central bank considers that credit risk remained low in 2025, due to the decline in defaults and the moderate pace of growth in credit extended to the economy. However, it warns that the frequent occurrence of extreme weather events could affect borrowers’ ability to meet their financial obligations.
For the coming years, the BdM forecasts that credit risk will remain at low levels, provided that the non-performing loan ratio stays in the single digits. The institution believes that this condition will be crucial for preserving the stability of the national banking sector.
Source: Diário Económico
Original article:https://www.diarioeconomico.co.mz/2026/07/17/economia/banca/bdm-credito-em-incumprimento-na-banca-caiu-para-384-me-em-2025/
