Portuguese bank BPI gets 88 pct of its profit from Angola in the 1st half

31 July 2015

The chief executive of Portuguese bank BPI said the bank’s operation in Angola was “an extraordinary asset”, given that almost 90 percent of the bank’s profits in the first half came from Banco de Fomento Angola (BFA), according to Portuguese financial newspaper Diário Económico.

The bank headed by Fernando Ulrich reported consolidated net profit of 76.2 million euros in the first half, compared to a loss of 106.6 million euros, due to costs and non-recurring losses of 138.8 million euros.

In the period, 66.9 million euros or 88 percent of total net profit originated at Banco de Fomento Angola (BFA), which posted an annual increase of 43 percent.

Despite the improved result of BFA, Ulrich said there was a slowdown in growth and expansion given the economic contraction in Angola as a result of a drop in oil prices, “which led to a stagnation in the number of branches in the country.”

In Portugal, the bank returned to profit with 6.6 million euros, after registering a loss of 17.4 million euros in the same period of 2014, excluding non-recurring effects.

As well as a rise in net interest income, the bank made lowered provisions and impairments for credit from 94.1 million euros to 68.7 million euros from domestic operations and for consolidated results from 100.1 million euros to 86.9 million euros. (macauhub/AO/PT)