BES bankruptcy reflected in profit of commercial banks in Angola in 2014

23 September 2015

The aggregate net profit of the banks operating in Angola suffered an annual decrease of 50 percent in 2014, “influenced by the effect of the results of the former Banco Espírito Santo Angola,” according to consulting firm Deloitte Angola.

Banco Espírito Santo Angola was 51 percent held by Portuguese bank Banco Espírito Santo (BES), which in 2014 gave rise to Novo Banco following the bankruptcy of the Espírito Santo Group.

The company, which Tuesday in Luanda presented the 10th edition of the “Banking under Analysis” study, added that without the effect of the fall of BES Angola, “the sector’s net results would have grown by about 12 percent,” and in the event totalled no more than 45.4 billion kwanzas (US$334 million).

The Deloitte study also pointed out that the proportion of deposits in local currency “has grown at the expense of foreign currency,” from 58 percent of the total in 2013 to 65 percent last year, rising 15 percent in value to 535 billion kwanzas.

Net loans to customers also rose, but at a lower rate of 8 percent to 293 billion kwanzas last year.

Deloitte also reported that in 2014 there was an increase of in the rate of overdue loans in the sector, which rose from 11.2 percent in 2013 to 14.5 percent.

At the end of 2014 there were 23 banks operating in Angola, and the Angolan market this year gained two new competitors, Banco de Investimento Rural and Banco Prestígio.

Besides these two, the National Bank of Angola has authorised another four banks to operate in Angola (Banco Yetu, Banco Pungo Andongo, Ecobank and Banco de Crédito do Sul). (macauhub/AO)