Mozambique banks record steep profit drops in 2025

Two of Mozambique’s largest banks reported sharp declines in 2025 earnings. Millennium BIM posted a net profit of 201 million meticais (about US$3.1 million), down sharply from 3.309 billion meticais the previous year, after setting aside 5.9 billion meticais in public‑debt impairments. The bank's income rose modestly to 19.229 billion meticais, but non‑performing loans remained high at 2.68 % of the portfolio. No dividend was paid for the second consecutive year.

Absa Bank Mozambique saw its profit fall 62.9 % to 687 million meticais (approximately €9.1 million), compared with 1.852 billion meticais in 2024. The bank attributed the decline to a technically‑recessionary environment, falling interest rates, foreign‑exchange scarcity and heightened sovereign‑risk perception, which forced a substantial increase in impairments. Operating costs were kept under control, growing only 0.6 %.

Both institutions linked the deteriorating results to Mozambique’s sovereign‑debt rating downgrade and a broader adverse macro‑economic context, underscoring heightened risk pressures on the country’s banking sector.