Angolan bank profits to fall by 13.6% in 2022 due to various factors

The net profits of the Angolan banking sector experienced a 13.6% year-on-year drop in 2022, amounting to 367 billion kwanzas (US$443 million).

Increased impairments and worsening losses from Banco de Poupança e Crédito primarily influenced the decline.

This information comes from a 2022 study by Deloitte, which analyzed 23 active banks in Angola for the year, excluding Banco Económico due to unavailable financial reports.

Despite this, the fall in net income was cushioned by a substantial 421% surge in foreign exchange results and a 6.3% enhancement in the financial margin.

Total assets 2022 were 17,037 billion kwanzas (US$20 billion), a 4.3% rise from 2021.

Net credit also rose by 13% to 3,480 billion kwanzas (US$4.1), reflecting credit-granting policies.

The percentage of customer loans in total assets increased by 2 points, while the proportion of securities remained roughly static at 34% due to banks’ exposure to Angolan public debt.

Banco Angolano de Investimentos continued to lead in assets, followed by other banks including Banco de Fomento Angola and Banco BIC.

Other indicators also showed growth, such as a 4.2 point increase in the solvency ratio, indicating the sector’s resilience.

Use of automatic payment terminals and Multicaixa cards both saw an uptick.

However, there was a 6% decrease in banking sector employment and a 17% reduction in branch numbers, reflecting digitization and restructuring efforts.

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