Profits of Angolan bank BAI rise 40% in year’s first half

Net profits for Banco Angolano de Investimentos (BAI) rose 41% in the first half to AOA 40 billion (US$91 billion), versus the same period of the previous year, according to the financial institution’s accounts report.

The results were influenced by a growth of 15% in net interest income and a 92% reduction in impairment costs, indicates the report, which will be presented today at a press conference.

Besides the Angolan financial sector, BAI has holdings in other Portuguese-speaking countries, namely Portugal, Cape Verde, and São Tomé and Príncipe, where there was also an increase in net income, except in Cape Verde.

BAI Europa’s net income for the first half of the year rose to €552,000 (US$539,000), corresponding to an increase of €91,000 compared to the same period of the previous year, influenced by the growth of €1.4 million in net operating income from banking activity.

In the case of BAI Cape Verde, the net income amounted to €195,000 compared to €364,000 in the same period last year, representing a 46% reduction essentially determined by the growth in structural costs and worsening of impairments of other financial assets net of reversals and recoveries of €136,000.

The net income of Banco Internacional de São Tomé e Principe was €1.7 million, representing a growth of €597,000 in comparison to the same period of the previous year.

In June, BAI became the first company listed on the Angola Debt and Securities Exchange (BODIVA), selling 10% of its capital, which was reflected in a 3% reduction in the stock of deposits, to AOA 2.45 trillion, in comparison to December 2021, essentially due to the reduction of deposits in foreign currency (-32%), notwithstanding the 35% increase in deposits in local currency resulting, amongst others, from the Public Offering (IPO).

There was also a 9% reduction in net loans and customer advances to AOA 323 billion.

According to BAI, this is justified by reducing the loan portfolio in local currency by 25%, mainly due to the write-off of loans relating to the real estate development sector after exhausting the recovery actions through its reimbursement and reduction of the loan portfolio in foreign currency by 27%.

By June 2022, BAI had 1,896 employees and 133 branches.

With information from Lusa

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