Portuguese banks interested in a continued presence in Angola

4 February 2013

The chairman of Portuguese banking group Banco BPI has given assurances that it will keep the 50.1 percent stake it owns in Angolan bank Banco de Fomento de Angola (BFA), noting that “this is a success story that we want to continue to develop”.

During a conference with analysts, Fernando Ulrich said he had no intention of selling any asset in Angola and noted that there were plans to “gradually multiply the bank’s branches in the country,” which currently total 167.

In 2012, business in Angola and Mozambique accounted for around a third of results reported by the bank (34.7 percent).

Last week BPI reported profit of 249 million euros in 2012, driven mainly by liability repurchases and sovereign debt sales, following a loss of 284.9 million in 2011.

The chairman of Banco Comercial Português (BCP) said recently in Portugal’s parliament that his bank had no intention of selling its shareholdings in Angola, Mozambique, or Poland.

“It is only worth selling if capital is released to pay CoCo bonds”, said Nuno Amado, at the Budget and Finance Commission, adding that the “market conditions do not allow for these assets to be sold and free up an appropriate amount of capital” to pay the State’s bond loan.

The Portuguese State last year took on 3 billion euros in BCP convertible bonds (so-called CoCo bonds) with a view to replacing the bank’s capital.

After posting a loss in 2011 BCP is expected to also have posted a loss in 2012. (macauhub)