Its solid set of results in 2007 shows a commitment, not only to expanding its operations, but also to sound management. As a result, the bank’s net profit grew an impressive 36% in 2007, alongside a 20% growth in assets and a 53% increase in Tier 1 capital. It now has a market share of 38% in deposits, 42% in loans and 52% in earnings.
“Our growth was substantial in terms of profits, credit [provision] and in the number of clients. In every sector we have grown substantially,” Mozambique’s former prime minister and president of Millennium Bim, Mario Machungo, told The Banker earlier this year. As to the future – expansion is the name of the game. “We plan to open 55 more branches through the country, especially in rural areas. This opportunity is more urgent than it was before. The development of rural areas is our key priority.”
Last December, the bank signed an accord with the government-backed Economic Rehabilitation Support Fund and was granted more than $1m to allow the bank to expand into regional Mozambique. “Financial institutions have to be prepared to invest in rural areas in order to push up food production,” says Mr Machungo.
He also believes that the development of a middle class in Mozambique is the key to economic development. “We have to play a role in developing a middle class and look at how to finance medium and micro-scale enterprises to help these people build their businesses.”
