Moza Banco reversed the loss recorded in the same period a year earlier and posted a positive net result in the first six months of 2026. The recovery was underpinned by revenue growth, lower funding costs, and a reduction in impairment losses. Despite expansion in deposits and total assets, the bank's loan portfolio contracted relative to end-2025.
Moza Banco closed the first half of 2026 with a net profit of MZN 273.9 million, reversing a loss of MZN 149.6 million recorded in the same period of 2025. The turnaround represents an improvement of approximately MZN 423 million and marks the institution's return to positive results.
According to the bank's interim financial statements for the period ended 30 June, reviewed by Diário Económico, pre-tax profit rose from MZN 81 million to MZN 544.2 million. Net income was reduced by a tax charge of MZN 270.4 million.
Net interest margin and fees drive revenue growth
Moza Banco's operating income increased approximately 17%, rising from MZN 2.1 billion to MZN 2.46 billion. The growth was driven by the performance of net interest income, fees and commissions, and results from financial operations.
Net interest income reached MZN 1.83 billion, compared with MZN 1.62 billion in the first half of 2025, representing growth of approximately 13%.
The improvement came despite a 7.4% decline in interest and similar income, which fell to MZN 2.77 billion. Performance was supported primarily by a 31.6% reduction in interest and similar charges, which decreased from MZN 1.38 billion to MZN 940.8 million.
Interest paid on customer deposits fell from approximately MZN 1.1 billion to MZN 704.9 million, contributing to a reduction in the bank's cost of funding.
Conversely, interest income generated by loans and advances to customers declined 26%, to MZN 1.32 billion. Income from financial assets measured at amortised cost rose 31%, reaching MZN 1.15 billion.
Foreign exchange operations and impairments support recovery
Net fees and commissions increased 30.7%, from MZN 225.4 million to MZN 294.6 million, driven by income from guarantees, banking services, and other client transactions.
Net results from financial operations grew 25.7%, to MZN 327.2 million. Within this line, foreign exchange revaluation gains reached MZN 155.4 million, compared with MZN 36.7 million in the first half of 2025, representing growth of approximately 323%.
Performance also benefited from a 32.2% reduction in impairment losses, which fell from MZN 304.7 million to MZN 206.6 million.
Impairments directly associated with loans and advances to customers recorded a sharper decline, falling from MZN 227.7 million to MZN 70.9 million. This reduction offset an increase in impairments on other assets and on the bank's securities portfolio.
Staff costs edged slightly lower, from MZN 1.05 billion to MZN 1.04 billion. Depreciation and amortisation, however, rose 20%, while other operating expenses grew 10%, to MZN 636.9 million.
Total assets reach MZN 72.8 billion
Moza Banco's total assets grew 13.6% relative to end-2025, rising from MZN 64.1 billion to MZN 72.8 billion.
The expansion was driven primarily by a 43.9% increase in cash and balances held at the Bank of Mozambique, which grew to MZN 23.3 billion.
According to the interim report, this development was linked to an increase in the mandatory reserve ratio, which rose from 29% in December 2025 to 39% during the first half of 2026.
Placements with credit institutions increased from MZN 2.57 billion to MZN 3.56 billion, while financial assets grew 6.5%, reaching MZN 23.85 billion.
Deposits rise, loan book contracts
Customer deposits and current accounts increased 6.1%, from MZN 52.77 billion at end-2025 to MZN 55.98 billion in June. Growth was driven by both demand deposits and term deposits.
The rise in deposits reinforced the bank's liquidity position. However, net loans and advances to customers declined 7.1%, from MZN 14.74 billion to MZN 13.69 billion.
On a gross basis, the loan portfolio contracted from MZN 16.28 billion to MZN 15.26 billion.
The evolution of the portfolio reveals a shift in credit composition. Financing to the corporate segment increased from MZN 4.3 billion to MZN 6.54 billion, representing growth of approximately 52%.
By contrast, lending to public institutions fell sharply, from MZN 2.6 billion to MZN 197.9 million. Financing to retail businesses and individual customers also declined relative to end-2025.
The ratio of net loans to deposits stood at approximately 24.5%, below the roughly 28% recorded in December.
Equity strengthened
Moza Banco's equity increased 5.4%, rising from MZN 5.81 billion to MZN 6.12 billion, supported by the positive result achieved during the half-year period.
The balance sheet, however, continued to carry negative retained earnings of MZN 7.94 billion, reflecting the cumulative impact of losses recorded in prior financial years.
For Moza Banco's Chief Executive Officer, Manuel Soares, the results demonstrate the consistency of the strategy the institution has been implementing.
"These results reflect the consistency of the strategy we have been implementing, based on proximity to clients, management discipline, innovation, and a commitment to creating sustainable value for the Mozambican economy," he said.
Soares added that the bank will remain focused on supporting households, businesses, and productive sectors, seeking to contribute actively to the country's development.
The return to profitability represents a significant turnaround in Moza Banco's performance. The sustainability of this recovery will depend on the institution's ability to preserve the improvement in net interest margin, control costs, maintain asset quality, and resume loan book growth — thereby translating its strengthened liquidity position into a greater capacity to finance the broader economy.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=527634
