Banking activity in Mozambique, measured by total assets, stood at 961.68 billion meticais in June 2024, representing annual growth of 8.38% compared to the same period in 2023, and 4.70% compared to the previous semester.

According to the Bank of Mozambique's (BdM) financial stability bulletin, released yesterday (05) and to which MZNews had access to, this performance reflects the increase in investments in credit institutions and financial assets held for trading.

"It should be noted that the growth in investments in credit institutions is the result of an increase in interbank money market operations and reverse repurchase agreements, as well as investments made in other credit institutions abroad and in the institutions' parent companies. The increase in financial assets held for trading reflects the dynamics of public debt securities," says the BdM report.

In addition, the central bank points out that the performance of the credit portfolio remains crucial to the evolution of banking income, despite the contraction of 4.87 % recorded in the first half of 2024, compared to the same period in 2023, remaining almost unchanged from the previous half.

Against this backdrop, in June 2024, according to the central bank, the banking sector continued to favor investments in highly liquid and profitable assets. Cash and cash equivalents, which stood at 314.61 billion meticais and net credit at 267.37 billion meticais, continue to occupy the first and second positions in the asset structure, with weights of 32.71% and 27.80%, compared to 33.45% and 31.68% in the same period in 2023, and 32.68% and 29.10% in the previous six months, respectively.

In this sense, in the period under review, investments in credit institutions grew by 95.78%, compared to the same period in 2023, and by 6.18% compared to the previous semester, thus occupying fourth position, with a figure of 13.10%.

(Photo DR)