Message from the CEO

It is with great honour and delight that we herein introduce and disclose Banco Nacional de Investimento (hereinafter “BNI” or “the Bank”) Annual Report 2023, whereby we express and highlight our unwavering commitment to fostering and supporting Mozambique’s socio-economic development as well as creating sustainable value for our shareholders.

The year 2023 was marked by changes in the Bank’s leadership, including the transition of the Presidency of the Executive Committee and my appointment as CEO. I would like to express my deep gratitude to the previous leadership and exceptional work that resulted in significant and sustainable growth for the Bank. At the time as Executive Administrator, I had the privilege to contribute to this success.

The financial year 2023 (‘FY2023’) proved to be a particular challenging one due to the high levels of internal and global economic turmoil, headwinds and a plethora of prevailing risks that have impacted and constrained the performance of the Mozambican economy as a whole and of the national banking sector in particular. As a result, we were forced to take immediate action coupled with great caution, in terms of capital allocation decisions regarding financial assets, and in the implementation of stronger measures to enhance BNI’s assets quality and, in particular, with respect to the loan portfolio’s asset quality. Simultaneously, we explored other business opportunities in the advisory-based services sector, whose revenues were instrumental in offsetting the mildest growth recorded in net interest income.

Against this backdrop, on the one hand, BNI’s Board of Directors reshaped the business strategy, prioritising customer segmentation, the enhancement and streamlining of the IT systems platform and the adoption of new financial services. On the other hand, it strengthened the financial institution’s partners network that underpins and ensures BNI’s core funding, having successfully closed loan agreements for the Bank’s trade finance and mid to long-term investment operations. These cornerstones were critical to strengthening the Bank’s capacity to provide financial services to the market and in achieving a set of milestones and accomplishments, which I consider to be extremely valuable and relevant for BNI within the scope of its role as a development and investment Bank.

Likewise, I would like to highlight the advisory-based services provided to a Mozambican company operating in the energy sector, alongside with the elements of project structuring and recruiting an internationally renowned technical partner for the implementation of a 150 MW solar photovoltaic power generation project, which, in addition to bringing undeniable environmental advantages and benefits, has the potential to supply electricity to over 150,000 Mozambican households.

Furthermore, we strengthened the conceptual frameworks related to corporate and operational risk, which involved reviewing and drafting a set of new regulations, as well as developing and implementing new tools for controlling and mitigating risks.

I am proud to state and disclose that in FY2023, BNI was acknowledged as one of the ten best employers in Mozambique under the social benefits category, according to an assessment carried out by the Tempus Global Group consultancy services. Hence, such accolade and achievement greatly highlight our ongoing corporate commitment towards the well-being and professional empowerment of our team members.

Furthermore, we have reaffirmed our commitment to fostering and supporting a variety of social projects throughout 2023, in accordance with our Social Responsibility Policy, endeavouring to add value to the local communities. Hence, we would highlight our support for households affected by natural disasters and the offer of professional internships within the scope of our partnerships with educational institutions, acknowledging the key role of education for the sustainable development and prosperity of our nation.

It should also be emphasised that BNI’s balance sheet growth across the market, as well as the exploration and development of new businesses in the financial advisory segment, combined with the streamlining and enhancement of the internal risk management processes, were instrumental for BNI to maintain and achieve a sustainable level of growth. These endeavours have led to higher financial soundness and liquidity levels, with the Capital Adequacy and Liquidity ratios increasing to +23.50% and +106.89% in FY2023, against +17.57% and +95.39% YoY, respectively, with both remaining above regulatory threshold requirements. Furthermore, net profits increased by +29.05% to MZN 269.22 million, with a positive impact on all profitability indicators. We would particularly highlight the Return On Average Equity (ROAE) and Return On Average Assets (ROAA) results, which stood at +7.09% (vs. +5.78% in FY2022) and +2.30% (vs. +2.02% in FY2022), respectively.

As far as the financial year 2024 is concerned, one of BNI’s biggest challenges will be to maintain the same pace of growth. In order to ensure and achieve an ongoing growth rate, we will focus on strengthening our business strategy, with a higher focus on the corporate segment and medium-sized companies with high growth potential, where we are aiming to leverage the manufacturing industry and the agro-industry, as well as looking into and identifying new business opportunities within the infrastructure area, with special emphasis to the energy and logistics sectors. This business strategy will be combined and supported by an enhancement process of the Bank’s operational and financial efficiency.

The ongoing success of BNI is entirely creditable to its highly skilled and talented team members, who have committed themselves selflessly and in close alignment with the Bank’s corporate vision, mission and values towards the achievement of its business purpose. Hence, on behalf of BNI’s Board of Directors, I would like to convey our deepest gratitude and appreciation to all personnel. Lastly, I would like to express my heartfelt esteem and gratitude to all members of BNI’s Board of Directors for their ongoing and outstanding support and collaboration over the course of the financial year 2023. Likewise, my thanks are also extended to the Government for providing vital support through the shareholder State Holdings Management Body (“IGEPE”), as well as to the Ministry of Economy and Finance.

On a final note, I also want to acknowledge and appreciate the cooperation and valuable inputs provided by all our customers and financing partners, who have placed their trust in our work and given us an opportunity to play a key role in the country’s economic development. Last but not least, I thank all the stakeholders who directly or indirectly supported the development of BNI’s business activities throughout FY2023. We pledge to always do our best to continuously increase the Bank’s value as well as to actively work and provide an effective contribution towards the betterment of the lives of all Mozambicans.

Abdul Bácito Daiaram Jivane
CEO