Profit of Banco Angolano de Investimentos down 15% in 2012

19 April 2013

Banco Angolano de Investimentos (BAI), Angola’s main bank by assets, closed 2012 with a profit of US$180 million, down 15 percent over 2011, indicates a statement released on Thursday in Luanda.

The lower profits are fundamentally due to the need to constitute reserves following the increase from 4.9 percent to 7.2 percent of credit overdue more than 90 days over total credit, “in line with the market trend”.

The shareholders (one of whom, Sociedade Nacional de Combustíveis de Angola (Sonangol), holds 8.5 percent) met last 26 in Luanda and decided unanimously to approve the Annual Report and Accounts for 2012, Audit Committee report and proposed application of results.

Besides the constitution of reserves, the lower results were also due to the 16 percent rise in administrative costs resulting from expansion of the network and respective support services, as well as the industrial tax burden, which rose 144 percent, given the increase in profit subject to taxation.

The BAI maintains its leading position in the Angolan banking market, with net assets of more than US$10 billion, a net credit portfolio worth US$2.6 billion and client resources of US$8.5 billion, with the number of clients rising by nearly 17 percent. (macauhub)