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AfricaFebruary 1 2013

Banks to watch in 2013, Banco Único

The Banker has identified 13 banks to keep an eye on in the coming year based on a variety of factors. Opened in mid-2011, Mozambique-based Banco Único is already close to breaking even and its bold ambitions for the future make it one to watch in 2013.
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Mozambique’s banking system is booming, thanks to it starting from a low base and the country’s thriving economy. However, the system is also very concentrated, with the biggest four lenders in the southern African country enjoying a market share of 85%.

Yet the progress made by Banco Único, which opened to the public in mid-2011, shows that new entrants can succeed. Led by João Figueiredo, formerly the head of Mozambique’s biggest bank, Millennium BIM, and with shareholders that include Portuguese investment company Corticeira Amorim and the Mozambican national pension fund, its assets have grown from about $75m at the end of 2011 to $230m today. “We were the 18th bank to set up in the country,” says Mr Figueiredo. “And in 18 months, we’ve gone from last position to sixth in terms of deposits and eighth in terms of loans. That gives you an idea how strong our strategy to penetrate the market is.”

As well as believing that Único would be able to win business from the unbanked in Mozambique – some 90% of the population – Mr Figueiredo feels it can offer a better service than existing banks. “A key point for me was that the quality of service in the financial system was not that good,” he says. “I felt there was an opportunity for a new operation.”

As such, a lot of the bank’s equity has been invested in training, infrastructure and IT systems. The design of Único’s branches was also seen as crucial, and much emphasis has been placed on making them more comfortable and colourful than those of competitors.

The bank’s initial focus was on corporate and high-end retail customers, but that has changed with the expansion of its branch network (it has 13 outlets today) beyond the capital Maputo into towns such as Beira, Tete and Nampula. “We believe that in about a year we’ll be covering all the main towns,” says Mr Figueiredo. “We are a universal bank and want to touch all segments of the market.”

Mr Figueiredo expects Único to break even during 2013. After that, little should stop it from making high profits, with Mozambique’s gross domestic product forecast to rise 7% to 8% in each of the next two years. “Credit expansion will probably be a little higher than those levels,” he says. “The economy will generate a lot of opportunities in sectors such as agriculture, tourism, energy, power and infrastructure.”

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Read more about:  Africa , Mozambique , Regulations