Angolan banking system has total deposits of US$6.5 billion in 2005

13 October 2006

Luanda, Angola, 13 Oct – The Angolan banking system at the end of 2005 had total deposits of U$6.5 billion, with just 45 percent of that total offered as loans, a report by Deloitte, published Thursday in Luanda, showed.

Over the last five years, according to the report, retail banking deposits had average annual growth of 19 percent, reaching a peak last year of 38.7 percent real growth.

The report said the figures were due to “heating up” of the Angolan economy following the growth of oil revenues, the sharp fall in inflation in the last two years and a boost in liquidity due to increased public spending, as part of the implementation of the General Government Plan.

Banco de Poupança e Crédito (BPC) and Banco Africano de Investimentos (BAI) posted higher than average rates for the market (89 percent and 79 percent, respectively, against a market average of 64 percent). As a result the two banks were technically drawn in terms of market leadership.

The director of Deloitte, Pedro Barreto, who presented the report, said that the BPC managed the central government’s bank accounts, via a payment system contractually established with the Finance Ministry, while the BAI was a Sonangol group company.

Operations, the report said, were concentrated on three banks, Banco de Fomento Angola (BFA), BPC and BAI, which together accounted for 71 percent of deposits. Banco Internacional de Crédito (BIC), launched in mid-2005, reached a market share of 6.8 percent in the same year.

The report on the Angolan banking sector concluded the deposit conversion rate into credit in 2005 fell to 37 percent (against 41 percent the previous year).

In South Africa, the report added, the percentage of credit was more than the amount of customer deposits (114 percent), in Portugal the rate was 82 percent and in the United States it was 86 percent. Brazil, another country highlighted in the report, had a conversion rate of 57 percent.

This is the second report on the Angolan banking sector published this year. The first, written by KPMG, was presented in September. (macauhub)