Tuesday, November 08, 2016

Angolan Banking Sector Has Total of US$2.133 Billion in Bad Loans at the End of 2015

Overdue loans in commercial banking in Angola amounted to 355.6 billion kwanzas (US$2.133 billion) at the end of 2015, according to the 11th edition of the “Banking under Analysis” report, presented Monday in Luanda by the Deloitte consultancy.

The study, in which Deloitte analyses the results of the reports and accounts publicly submitted by banks operating in Angola, reveals that provisions for loans at banks increased 107% in 2015, a year in which, the value of the aggregate assets of the institutions reached 7.512 billion kwanzas (US$45 billion).

The head of Deloitte for the Financial Services sector in Angola, José Barata, admitted during the presentation of these results, a “deterioration of the loan portfolio” of the Angolan banking sector, which had to do double provisions in relation to 2014.

“This reflects a need to record negative results to respond to losses in the portfolio,” noted Barata, admitting that bad debt “remains high” within the Angolan banking sector.

The total net income of the institutions in question – excluding information from Banco Económico, formerly Banco Espírito Santo Angola – grew by 19% to 116.5 billion kwanzas (632 million euros) in 2015.

State bank Banco de Poupança e Crédito (BPC), which is undergoing restructuring, heads up the list of assets with 1.399 trillion kwanzas (US$8 billion), followed by Banco de Fomento Angola (BFA), Banco Angolano de Investimentos (BAI), Banco BIC and Banco Privado Atlântico (BPA).

The 11th edition of the Banking under Analysis report reveals that the proportion of deposits in Angolan currency maintains it growth at the expense of foreign currency, rising to represent 69% of the total and that at the end of the year Angolan banks relied on client deposits totalling 6 billion kwanza (US$36.7 billion), an increase of 12% compared to 2014.


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