Five banks control almost 80 pct of banking sector assets in Angola

24 October 2013

Five banks – Banco de Poupança e Crédito, Banco Angolano de Investimentos, Banco Espírito Santo Angola, Banco de Fomento Angola and BIC – had 78 percent of banking sector assets in their control in 2012, according to a study by the KPMG consultancy published Wednesday in Luanda.

Victor Cunha Ribeirinho, director of auditing and financial services at KPMG, said that, despite the sector posting high levels of growth, this was focused on a small number of banks and that the level of access to banking services by the population was still very low.

“An example of the positive developments in the sector is the continued increase in the number of branches, staff, assets and (…) this shows the effort being made by those responsible for the Angolan financial institutions to raise the level of the sector, get closer to African standards and, in the not-so-distant future, closer to European best practices,” he said.

The growth trend for deposits continued in 2012, with an increase of 7.9 percent in total deposits and a relative increase of deposits compared to current accounts (48 percent in 2012 compared to 43 percent in 2011), and there was a drop in foreign currency deposits (45 percent in 2012 compared to 49 percent in 2011) due to replacement of the US dollar by the kwanza.

At the session to present the “Analysis of the Angolan Banking Sector,” drawn up for the fourth time, Ribeirinho said that Angola’s banking market had posted growth of 10.5 percent in 2012, with an average of 8.9 branches opening every month and a total of 107 new branches for the year. The number of bank staff rose by 13.8 percent to over 16,500 people.

He also said that defaulted loans had risen by 83.5 percent from 2011 to 2012, increasing the weighting of past due credit within total credit granted to 6.76 percent (4.60 percent in 2011). (macauhub)

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