Portuguese banks control 40 percent of Angolan banking sector

15 September 2006

Lisbon, Portugal, 15 Sept – Portuguese banks control 40 percent of the assets of the Angolan banking sector, which has one of the highest profitability levels in the world, according to the first study of the sector in the West African country carried out by Deloitte.

The study, which was briefly presented this week, carried out in partnership with the Angolan Banking Association, also showed that the remaining banks held by international financial institutions manage just 8.5 percent of local assets.

These banks include Totta de Angola, controlled by Spain’s Santander bank via Potugal’s Totta, and South African-owned Banco Comercial de Angola.

At the end of last year, the Portuguese banks had 205 million euros of equity applied in Angola, according to Deloitte’s figures.

The study is to be published next month, according to the authors, and the Angolan banking sector will be compared with that of South Africa, Brazil, POrtugal and the United States.

The Angolan banking sector, according to Deloitte, has “one of the highest levels of profitability in the world,” but also has “several weaknesses.”

These include, “the low level of banking of the economy and a lack of qualified human resources, in a sector in rapid growth.”

Deloitte calculated that, in 2005 alone, the Angolan banking sector opened almost 52 branches and contracted almost 900 people.

According to the study, in the last year, Angola reached third position amongst sub-Saharan Africa’s biggest economies, with strong economic growth driven by oil production. (macauhub)