Angolan bank Banco de Poupança e Crédito cleans up credit portfolio

23 April 2014

Angolan bank Banco de Poupança e Crédito (BPC) plans to analyse its credit portfolio following guidelines set out by the Finance Ministry to remove non-performing loans from the balance sheet, said the bank’s chief executive.

Speaking to state-owned newspaper Jornal de Angola Paixão Júnior said that the bank would “clean up its credit portfolio,” which currently totals almost US$3 billion, and defaulted loans account for 17 percent of that figure.

The chief executive of BPC also said that “given the conditions under which the bank operates,” the value of defaulted loans seems reasonable, of around US$500 million, of which “US$35 million are non-performing.”

Paixão Júnior also said that most of the credit provided was recoverable, “as the companies still exist and are operating,” whilst those that are behind on payments have assets that, after execution, will make it possible to get back some of the debt.

“After calculations we can say that of the 17 percent around 10 percent is recoverable,” he said.

Preliminary figures from the Angolan National Bank showed that profit from the 23 banks operating in the country rose by 4.4 percent in 2013 from 99.7 billion kwanzas in 2012 to 104.1 billion kwanzas on 31 December 2013.

A study entitled “Analysis of the Angolan Banking Sector,” drawn up by KPMG for the fourth consecutive years, noted that 2012 “was marked by a significant increase (in non-performing loans) of around 83.5 percent against 2011.” (macauhub/AO)