Banco Nacional de Investimento (BNI) and Moza Banco were the two Mozambican banks with the highest non-performing loan ratios in the second quarter of this year, but most are above the 5% recommended by the Bank of Mozambique (BdM).
According to the report on Prudential and Economic-Financial Indicators released this Wednesday, 23 August, by the central bank, BNI closed the second quarter of this year with a non-performing loan (NPL) ratio of 60.45% of total loans, compared to 48.44% in the previous quarter.
Thus, among the 15 or so commercial banks listed by the BdM, Moza Banco, the country’s fifth largest bank, followed with an NPL ratio of 26.53 per cent.
Overall, the Bank of Mozambique’s 2022 financial stability report, released last June, states that the banking sector “remained solid and resilient” in that period, “with growth in results and adequate levels of capitalisation and liquidity”.
“Meanwhile, in terms of asset quality, the non-performing loans index stood at 8.97 per cent, above the acceptable benchmark of 5.0 per cent,” the document reads.
From the list published by the central bank, only First Capital Bank (FCB), Ecobank and Standard Bank have a lower non-performing loan ratio than recommended, with 0.43 per cent, 0.66 per cent and 2.40 per cent, respectively.
The country’s two largest banks, Millennium bim and Banco Comercial e de Investimento (BCI), had non-performing loan ratios of 11.19 per cent and 13.13 per cent respectively in the second quarter.
