The need to set up provisions to cover impairment led Angolan state-owned bank Banco de Poupança e Crédito (BPC) to record a loss of 29.5 billion kwanzas (US$177 million) in 2016, according to the bank’s annual report and accounts.
The report said the board of directors decided to set aside provisions amounting to 72.7 billion kwanzas (US$436 million) in order to clear the balance of doubtful loans and to “definitively” clean up the credit portfolio.
BPC, the largest bank in Angola and currently in the process of restructuring due to the high bad debt portfolio, managed to increase the deposit portfolio by 12.1%, and shareholder equity rose 26.9%.
BPC is owned by the State, with 75%, the National Social Security Institute (15%) and the Social Security Fund of the Armed Forces, with the remaining 10%. (macauhub)