Angola was a “fantastic investment” but Portugal’s Banco BPI bank will progressively withdraw from Banco de Fomento Angola (BFA), in order to comply with the recommendations of the European Central Bank said the bank’s new chief executive, Pablo Forero.
The new CEO noted the figures, which, he said, are public, “BPI has invested 3.3 million euros, received 1 billion euros in return and still has a position worth 450 million euros on the balance sheet.”
Forero said that the disinvestment process in Banco de Fomento Angola would be carried out in the “long-term” and added that it will be a reduction in the current 48.1% stake to a percentage that will satisfy both BPI’s Board of Directors and the European Central Bank.
The loss of control of Banco de Fomento Angola has already taken BPI’s from a profit of 45.8 million euros in the first quarter of 2016 to losses of 122.3 million euros in the same period of 2017.
The impact of the sale of a 2.0% stake taking its stake down to 49.1% and consequent loss of control of the bank was a negative 212.3 million euros, and without this impact BPI would have seen a positive result of 90 million euros.
The sale of the stake, due to the European Central Bank’s recommendation, “led to Banco de Fomento Angola ceasing to be consolidated in the accounts of Banco BPI, becoming recogniszed only by the equity method.” (macauhub)