The banking sector in Mozambique posted pre-tax profits of 8.4 billion meticais (US$171 million) in 2014, 28 percent more than in the previous year, according to a study by the Mozambican Association of Banks (AMB) released in Maputo.

The study conducted in partnership with KPMG said “the banking sector in Mozambique remains highly profitable,” driven by growth of 23 percent in total assets from 281 billion to 339 billion meticais between 2013 and 2014.

The growth of the profitability of the banking sector, which posted net profits of 6.4 billion meticais in 2014, compared to 5.2 billion in 2013, has been supported by an increase in income from foreign currency transactions, largely as a result of the sharp depreciation of the metical against the dollar.

The study adds that the three main commercial banks,Banco Internacional de Moçambique, Banco Comercial e de Investimentos and Standard Bank, continue to dominate the market, controlling 73 percent of total assets, a drop of two percentage points compared to 2013.

The Mozambican banking sector was composed in 2014 of 18 registered commercial banks, unchanged compared to 2013.

Source: Macauhub