National Bank of Angola orders recapitalisation of two banks

2 January 2020

The National Bank of Angola has ordered the recapitalisation of Banco de Poupança e Crédito (BPC) and Banco Económico (BE), at the end of the process of Asset Quality Assessment (AQA) started in April and whose results have now been released, according to a statement posted on the website.

“The impacts of business have led to a need for recapitalisation for a small number of banks that were part of the AQA and are focused on the BPC and BE, which accounted for about 96% of the total needs of recapitalisation in relation to the minimum requirements of the regulations in force, with reference to 31 December 2018,” the central bank said.

The AQA focused on 13 of the 26 banks that operate in the Angolan market, leading to the conclusion published by the BNA, “that the banking system is generally robust,” with the recapitalisation needs focused on the two banks, which were instructed to record the adjustments identified in the assessment process, in the financial statements for the 2019 accounts.

The instruction from the BNA urges the two banks to assess their needs for additional capital after the end of the 2019 financial year and to ensure compliance with prudential limits by 30 June 2020.

Besides the BPC and BE, the assessment covered Banco Millennium Atlântico (BMA), Banco Angolano de Investimentos (BAI), Banco Caixa Geral de Angola (BCGA), Banco de Comércio e Indústria (BCI), Banco de Desenvolvimento de Angola (BDA) e Banco de Fomento Angola (BFA).

The operation also included Banco de Negócios Internacional (BNI), Banco Sol (BSOL), Finibanco Angola (FNB) e Banco Keve, and involved auditing firms PwC – PricewaterhouseCoopers Angola, KPMG Angola – Audit, Tax, Advisory, Ernst & Young Angola, UHY – A. Paredes e Associados and C&S – Assurance and Advisory.

The shareholders of Banco de Poupança e Crédito (BPC) are the Angolan State, represented by the Ministry of Finance (75%), the National Institute of Social Security (15%) and the Social Security of the Angolan Armed Forces (10%).

Banco Económico, which inherited the assets of the bankrupt Banco Espirito Santo Angola, has as shareholders Lektron Capital (30.98%), Geni Novas Tecnologias (19.90%), Sonangol (16.00%), Sonangol Vida (16.00%), Novo Banco (9.72%) and Sonangol Holding (7.40%). (macauhub)