"This performance reinforced the bank's capacity to develop its activities in a sustainable way and its position as a solid and robust development and investment bank in the market", reads the document, in which BNI's management details the indicators for 2023.

The growth in profits "provided" the increase in profitability of average equity, to 7.09%, against 5.78% in 2022, and of the profitability of average assets, to 2.28%, against 2.02% in 2022, highlights the management of BNI, wholly owned by the Mozambican State through the State Shareholdings Management Institute (IGEPE).

Additionally, the bank states that the levels of capital and liquidity "improved significantly", with the solvency ratio rising to 23.50%, against 17.57% in the previous year, and the liquidity ratio to 106.89%, compared to 95.39% in 2022, "above the regulatory minimums of 12% and 25%, respectively".

"The year 2023 was challenging due to the high uncertainties and internal and external risks that conditioned the performance of the Mozambican economy, in general, and of the banking sector in particular, which required a prompt and very prudent performance on our part regarding the decisions of capital allocation in financial assets and the implementation of reinforced measures to improve the quality of assets and the credit portfolio", states the chairman of BNI's executive committee, Abdul Jivane, in the message included in the report and accounts.

The document also underlines that in 2023, the defaulted credit "had a favourable performance", with a "remarkable reduction of 32.50%", falling to 1,340 million meticais (19.2 million euros), "almost all" covered by guarantees, "limiting potential financial losses".

"This positive performance is the result of prudence in the granting of new financing, restructuring of operations with commercial viability, recovery through legal means and individual monitoring of borrowers, allowing proactive actions to reduce the risk of default", reads the document.

However, despite the defaulted credit having reduced by 435 million meticais (6.2 million euros) in one year, "the fall in the volume of the credit portfolio ended up limiting the improvement in quality" by only 1.21%, compared to 2022, the bank having ended last year with a total credit portfolio of 4,651 million meticais (66.9 million euros).

The bank closed 2023 with total liabilities of over 8,352 million meticais (120.1 million euros), a growth of 11.26% compared to 2022, driven by the 84.09% increase in customer resources (deposits), to 1,180 million meticais (16.9 million euros), and of bond loans (12.57%), "reflecting the broadening of the partner base".

BNI approved the distribution of 27.86% of the 2023 profits, equivalent to 75 million meticais (one million euros), in dividends to the State shareholder, applying the remainder to legal reserve (30%) and carried-over results (42.14%).

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