The debt portfolio of the Mozambican banking sector increased 66% between 2015 and 2016, from 10.6 billion to 17.6 billion meticais (US$287 million), according to a study prepared by consultancy KPMG for the Mozambican Bank Association based on data for2016 provided by 16 banks.
The Banking Sector Survey showed that the deterioration of the credit portfolio is the main challenge for the sector and is an insight into what is expected to be an even worse scenario when banks close their books in 2017.
The study, quoted by Portuguese news agency Lusa, adds that the average ratio of non-performing loans among the 16 banks analysed exceeded the 5% threshold for the first time in three years, from 3.9% in 2015 to an average of 6.1% in 2016.
Analysing the performance of the sector, the document noted that “on the whole, the ratio has worsened for all players, except for Banco Único and Ecobank Moçambique, which showed improvement in their non-performing loan ratios.”
The three best ratios are those of Banco Nacional de Investimento (1.8%), Banco Único (2.3%) and Ecobank (2.7%), and the three worst among the 16 banks analysed are Societé Generale (41.4%), First National Bank (16.3%) and Banco Terra (14.7%).
In relation to the two largest Mozambican banks Mozambicans, the Millennium BIM is in fifth position on the list with a ratio of 4%, while BCI is in seventh with 4.5%. (macauhub)