Mozambique’s five largest banks made a combined profit of MZN8bn ($125m) in the first half of this year, down 16% from approximately MZN9.6bn ($150m) in the same period of 2025.
Three of the five earned less. Standard Bank’s profit fell 36%, Millennium bim’s declined 37% and BCI’s dropped 10%. Absa increased its profit largely because expected credit losses fell sharply, while Moza Banco returned to profit as operating income rose and impairment charges declined. The overall picture is therefore one of weakening profitability, despite improvements at two banks.
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Lending is also contracting. Standard Bank’s net loan book shrank by 11% in six months, including a 17% fall in corporate and sovereign lending. Lending by BCI fell 5% and Moza Banco’s declined 7%, while Millennium bim’s was broadly unchanged. Even stable nominal lending lost value to inflation.
Part of the explanation lies with the Bank of Mozambique. In May it increased the reserve requirement on local-currency deposits from 29% to 39%, immobilising a large share of banks’ funds at the central bank without interest. Weak economic conditions have also made businesses and households riskier borrowers.
