Despite the markedly challenging context, Moza Banco continued in 2021 focused on the improvement and consolidation of the main economic and financial indicators. This is the understanding of the Shareholders of Moza Banco after the Session of the Ordinary General Assembly, which took place this Thursday, March 31st, meeting in which the Management Report and the Financial Statements for the year 2021 were appreciated and approved.

The evolution registered in indicators such as Solidity and Liquidity in Gross Operating Results and Coverage of Overdue Credit denote the commitment assumed by the Bank in the continuous improvement of management mechanisms, with the aim of reaching continuous effective stability.

Without prejudice to the recent past, Moza Banco continued, in fiscal year 2021, committed to the consolidation process initiated in recent years.

"The economic year just ended was adverse, and once again we had to reinvent ourselves. It served to reaffirm our commitment to the consolidation of the main economic and financial indicators. Despite the adversities, we point out notable achievements mirrored mainly by the evolution registered in indicators such as solidity and liquidity, in the gross operating results, and in the coverage of overdue credit. The process of recovery and cleaning is moving in the right direction, so there should be no doubt as to the intended objectives", said João Figueiredo, Chairman of the Board of Directors of Moza Banco.

In the year under review, the Bank focused on permanently regaining the confidence of the market and its customers, with the aim of building a stable and continuously growing deposit portfolio; rebuilding the loan portfolio, fine-tuning the risk management policy with regard to new operations, but also making a major effort to recover and manage loans that are overdue or showing signs of fragility; and lastly, maintaining strong containment and rationalization of operating costs.

Moza Banco is also committed to the modernization and implementation of technological systems that ensure better monitoring of risk management in all aspects of banking operations, a differentiating factor in the supply of products and services, embodying the motto of "greater proximity" to the Customer, ease of communication and transactions. There was also an increase in cross-selling, with greater penetration in the Customer's assets by making available a range of products and services adapted to the needs of each segment and resulting in an increase in the degree of loyalty.

"In terms of credit risk management, the Bank has made a great effort in the activity of recovery and management of overdue loans, within the strategic guidelines and which resulted in an improvement in the levels of claims, with a reduction of 16%", added Moza Banco's BCP.

Despite the challenging context, the Bank maintained its growth record, as a result of the trust deposited by its customers, partners and stakeholders in general. At the transactional level, the Bank recorded significant growth in digital channels, having registered increases of 117% and 62% in Moza Já (USSD) and Moza Net (eBanking), respectively. The Bank maintains its trend of innovation in the digital transformation framework, having in 2021, made available to its customers, the new WhatsApp Banking channel, AZAPP.

Also in the year 2021, Moza Banco continued to mark a significant representativeness in terms of market shares - assets 5.62, deposits 5.67% and credit 8.49% - thus consolidating itself as a reference Bank in the financial system.

In view of the high loss ratios in lending, the Bank conducted a balance sheet optimization process that resulted in the annual reduction of the net loan portfolio by 10%, setting it at MZN 22 billion, down from MZN 24.4 billion in 2020.

The optimization of this balance sheet resulted in an improvement of the transformation ratio by 4 percentage points (pp), to 75%, a value considered appropriate in the national financial system.

In relation to the strategy of greater financial involvement with its Customers, the Bank closed 2021 with a liquidity ratio of 44.55%, well above that which is regularly established, which is 25%. On the other hand, the strategies implemented also allowed Moza to close 2021 with a solvency ratio of 23.211 PT2T, exceeding the minimum defined by the Bank of Mozambique of 121 PT2T.

João Figueiredo also highlighted the maintenance of the strategic trajectory defined by the Bank in recent years, which is reflected in the operating result achieved, which presents a growth of 285% when compared to the previous year. This performance is reflected in the improvement of the efficiency ratio (cost-to-income), which reduced from 100.5% recorded in 2020 to levels of 67.2% in 2021. This efficiency achieved is the result of a greater capacity to generate revenues combined with strict control and rationalization of costs, "The negative net result calculated is around MZN 1,381 million resulting from the need to reinforce impairments to cover the risk associated with a large matured operation whose expected recoverability is in the long term. Isolating this effect mentioned above, the Bank would register a positive net result in the order of MZN 105 million, which demonstrates the consistency achieved in line with the objectives outlined in the Strategic Plan in force", concluded Moza Banco's PCA.

The solidity of the Bank was reinforced with the completion of another capital increase operation by our shareholders, to the amount of MZN 1.953 Million, thus signaling the confidence they place in the Bank.