Caixa Geral de Depósitos names Angola as priority market

10 March 2006

Lisbon, Portugal, 10 March – Portuguese state bank Caixa Geral de Depósitos (CGD) has named Angola as one of its two most important markets and wants a 20 percent market share in the country within three years, the bank’s chairman told Portuguese financial daily Jornal de Negócios.

“The essence of our strategy is to launch Angola and restructure in Spain,” said Carlos Santos Ferreira in an interview with the paper published Thursday.

CGD, which this week posted annual profit for 2005 of 538 million euros, launched a joint venture with Spain’s Santander bank in Angola, via Banco Totta Angola, where it plans to invest up to 100 million euros.

“We believe that within three years we can attain a 15 to 20 percent market share. So, triple our current share at worst,” he said.

Angola’s banking market is currently dominated by state bank, Banco de Poupança e Crédito and Banco Fomento Angola, owned by Portugal’s BPI.

Portugal’s largest private bank, Millennium Bcp, was also recently given authorization to set up a local bank and plans to open 18 branches in Angola.

According to Santos Ferreira, CGD, which via its partnership agreement may increase its stake in Totta Angola to 51 percent, is currently discussing with Santander, “the business plan, in terms of assets, branches, loans and market share.” (macauhub)