Profits across Mozambique’s banking sector fell by nearly 39% in 2025, dropping to 15.13 billion meticais (€208 million), according to new data from the central bank.
The sharp contraction in earnings comes despite the sector maintaining capitalization and liquidity levels that regulators consider robust, highlighting a divergence between balance sheet strength and profitability.
The decline underscores the pressure on net interest margins and operational efficiency within the country’s financial system.
While banks remain well-capitalized, the inability to translate that stability into profit growth suggests persistent headwinds, potentially linked to high funding costs, credit risk provisioning, or a sluggish economic environment affecting loan demand.
This development marks a significant deterioration in the sector’s financial performance, raising questions about the sustainability of current business models.
Investors and analysts will be watching to see if the profit slump is a cyclical dip or a structural shift in the Mozambican banking landscape.