Retail banks operating in Angola had 327 billion kwanzas (US$3.342 billion) in defaulted loans at the end of 2013, which was a rise of 50.7 percent against the 217 billion kwanzas posted in 2012, Angolan newspaper Expansão reported.
The rise in defaulted loans according to Expansão is due to delays in payments by the State to its contractors, which forces banks to increase their provisions to cover credit risks.
The newspaper said that the rise in defaults, along with increased operating costs, has been considered the main driving preventing profit growth of banks operating in Angola.
Despite this, profit at the 23 banks operating in Angola rose by 4.4 percent in 2013, rising from 99.7 billion kwanzas in 2012, to 104.1 billion kwanzas on 31 December 2013, according to preliminary financial and monetary indicators from the National Bank of Angola (BNA). (macauhub)