Bank merger allows Portuguese bank BCP to contribute more to Angola’s economy

3 November 2015

The merger between Angolan banks Banco Millennium Angola and Banco Privado Atlântico will help to achieve the desired “level of profitability,” contributing to the Angolan economy, said the chairman of Portuguese bank Banco Comercial Português (BCP).

“We understand that if we want to be in Angola with a level of profitability and making a contribution to the development of the Angolan economy to the extent we would like, we have to increase our presence, because with a share of 3 to 4 percent we do not have sufficient size to do that, “said Nuno Amado, cited by the Portuguese press.

Amado, who was speaking at a session to present BCP’s results for the first nine months of the year, added that “a bank that ends its merger with Atlântico with a share of 9 to 10 percent of the market, already has the dimension and shareholder structure to do that.”

The chairman of BCP played down the current situation of the Angolan economy, which has suffered the impact of the fall in oil prices and considered that it could even be beneficial in the long term for the West African country.

Banco Millennium Angola and Banco Privado Atlântico will go ahead with a merger in the Angolan market, with the Banco Comercial Português (BCP) keeping a 20 percent stake in the new bank, according to a statement to the market issued on 8 October .

From January to September BCP made a profit of 264.5 million euros, which compared with losses of 109.5 million euros in the same period of 2014 with a consolidated profit of 23.8 million euros in the third quarter.

Amado drew attention to the fact that the contribution of business in Portugal had been positive, “for the first time in many years.”

After several years of making losses, the operation in Portugal contributed 100.5 million euros to Millennium bcp’s net income in the first nine months of 2015 compared to a loss of 227.1 million a year earlier. (macauhub/AO/PT)