Moza Banco consolidates key economic and financial indicators
Despite the markedly challenging context, Moza Banco continued to focus in 2021 on the improvement and consolidation of key economic and financial indicators. This is the understanding of the Moza Banco’s Shareholders following the Session of the Ordinary General Meeting, which took place this Thursday 31st March, a meeting in which the Management Report and the Financial Statements for 2021 were reviewed and approved.
The growth recorded in indicators such as Solidity and Liquidity in its Gross Operating Results and in the Provisions and Non-Performing Loans Coverage denote the commitment assumed by the Bank in the continuous improvement of its management mechanisms, with a view to achieving continued effective stability.
Without losses in the recent past, Moza Banco continued, in the financial year 2021, committed to the consolidation process initiated in recent years.
“The financial year just ended was adverse and once again we had to reinvent ourselves. It served to reaffirm our commitment to consolidating key economic and financial indicators. Notwithstanding the adversities, we have witnessed notable achievements mirrored above all by the growth recorded in indicators such as solidity and liquidity, in gross operating income and in the coverage of Non-Performing Loans. The recovery and clean-up process is moving in the right direction, so there should be no doubt as to the intended objectives” João Figueiredo, Chairman of the Board of Directors at Moza Banco, said.
In the year under review, the Bank focused on permanently regaining the trust of the market and its customers, in order to build a stable and continuously growing deposit portfolio; rebuilding the loan portfolio, fine-tuning risk management policy with regard to new operations, but also making a major effort to recover and manage non-performing loans or those showing signs of fragility; and finally, maintaining a strong containment and rationalisation of operating costs.
Moza Banco was also committed to modernising and implementing technological systems that ensure better monitoring of risk management in all aspects of banking operations, a differentiating factor in the supply of products and services, embodying the slogan of "greater proximity" to customers, ease of communication and transactions. There was also an increase in cross-selling, with greater penetration in customer assets by providing a range of products and services adapted to the needs of each segment and resulting in an increase in loyalty.
“In terms of credit risk management, the Bank has made a great effort in the recovery and management of non-performing loans, within the framework of its strategic guidelines and which has resulted in an improvement in the levels of non-performing loans, with a reduction of 16%", Moza Banco’s Board Chairman added.
Despite the challenging context, the Bank maintained its record growth, as a result of the trust deposited by its customers, partners and stakeholders in general. At transactional level, the Bank recorded significant growth in digital channels, having registered increases of 117% and 62% in Moza Já (USSD) and Moza Net (eBanking), respectively. The Bank has maintained its trend to innovate within the digital transformation framework, having released the new WhatsApp Banking channel, AZAPP, to its customers in 2021.
Also in 2021, Moza Banco continued to hold a significant standing in terms of market share - assets 5.62%, deposits 5.67% and credit 8.49% - thus consolidating its position as a leading Bank in the financial system.
In view of the rates of delinquency in granted loans, the Bank conducted a process to optimise its balance sheet which resulted in the annual reduction of the net loan portfolio by 10%, setting it at MZN 22 billion, compared to the MZN 24.4 billion recorded in 2020.
The optimisation of this balance sheet resulted in an improvement of the cost-to-income ratio by 4 percentage points (pp), to 75%, an amount considered acceptable within the national financial system.
In relation to the strategy of greater financial involvement with its Customers, the Bank closed 2021 with a liquidity ratio of 44.55%, well above the regularly established ratio of 25%. On the other hand, the strategies implemented also allowed Moza to close 2021 with a solvency ratio of 23.21%, exceeding the minimum of 12% defined by the Central Bank of Mozambique.
João Figueiredo also noted that the strategic trajectory defined by the Bank in recent years had been maintained, which is reflected in the operating profit achieved, which grew by 285% over the previous year. This performance is reflected in the improvement of the cost-to-income ratio which reduced from 100.5% recorded in 2020 to levels of 67.2% in 2021. This efficiency achieved is the result of a greater capacity to generate revenue combined with strict control and rationalisation of costs, “The negative net income is calculated at around MZN 1,381 million resulting from the need to reinforce impairments to cover the risk associated to a large overdue operation whose expected recoverability is in the long term. If this effect were isolated, the Bank would record a positive net income of around MZN 105 million, which demonstrates the consistency achieved in line with the objectives outlined in the Strategic Plan in force”, Moza Banco’s Board Chairman added.
The Bank's solidity was strengthened with the completion of another share capital increase operation by our shareholders, to the amount of MZN 1.953 Million, thus signalling their confidence in the Bank.