Standard Bank, one of Mozambique’s leading financial institutions, has reported a significant increase in profits despite facing challenges in the financial landscape. According to the bank’s report and accounts, profits surged by 7.8% in 2023, reaching a record 7.378 billion meticais, equivalent to approximately $7.897 million. This growth was attributed to the bank’s effective strategy and the resilience of its business.
Bernardo AparÃcio, the managing director of Standard Bank, hailed the bank’s financial performance as remarkable. Despite a decrease in the proportion of interest-bearing assets in total assets, from 84% to 68%, due to a central bank decision to increase mandatory reserves coefficient, the bank’s total revenue grew by 5% to 19.123 billion meticais, equivalent to around $20.425 million.
AparÃcio emphasized the bank’s strong balance sheet and liquidity, despite a restrictive monetary policy and weak asset growth in the sector. The bank maintained its focus on asset quality, leading to a decrease in non-performing loans from 2.611 billion meticais in 2022 to 2.581 billion meticais in 2023.
Standard Bank Moçambique saw an increase in its workforce by 9%, ending 2023 with 1,364 employees. However, the net loan portfolio owned by the bank’s South African group fell by 15.8%, mainly due to loan repayments from large corporate clients.
In a move to reward shareholders, the board of directors proposed the distribution of dividends amounting to $6.694 million for the 2023 financial year. The bank also highlighted a 20.6% growth in return on equity, reaching 21.1% in 2023, and a rise in net interest income.
Despite these positive indicators, the total volume of loans and advances to customers decreased to approximately $32.677 million in 2023. Nonetheless, Standard Bank’s total assets increased to approximately $169.885 million, with equity rising to approximately $38.304 million and liabilities growing to approximately $131.581 million.
Standard Bank Moçambique, established in 1967, is a private bank with its headquarters in Maputo, operating under the umbrella of Stanbic Africa Holdings Limited, a UK-based investment bank and a subsidiary of Standard Bank Group, South Africa. The majority shareholder, Stanbic Africa Holdings Limited, holds a stake equivalent to 98.15% of the share capital, with the remaining 1.85% held by minority shareholders.
The bank’s robust financial performance amidst challenging circumstances underscores its resilience and strategic focus, positioning it as a key player in Mozambique’s banking sector.
