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Angolan banks saw a year-on-year increase of 65.8% in their net results, reaching 545 billion kwanzas (approximately 595 million euros), primarily driven by foreign exchange effects, according to the “Banking Analysis” study presented today.
The increase is mainly due to a 261% growth in foreign exchange results totaling 452 billion kwanzas (about 493 million euros), resulting from the kwanza’s depreciation against the euro and dollar, while banking income increased by 48%, as reported in the study by Deloitte Angola.
The 18th edition of the “Banking Analysis” study, based on the financial information from the 23 banks operating in Angola during 2023, noted that the year was marked by challenging international conditions, with impacts from geopolitical conflicts and declining oil prices.
In 2023, net credit granted to customers grew by about 40%, and the quality of credit—the coverage ratio for impairment losses—decreased from 22% to 19%, with a notable reduction in impairment coverage for non-performing loans.
According to Deloitte’s release, the ratio of overdue loans “showed a marginal increase compared to 2022, recording 20.8% in 2023, compared to 20.6% in the corresponding period,” and the total overdue credit over the banks’ assets rose from about 5% in 2022 to 5.2%.
“In this context, banks must continue to make an additional effort to strengthen impairments for credit, as coverage has been decreasing over the past few years,” the document emphasizes.
Deposits saw an increase of nearly 31% compared to 2022, which is lower than the growth of the money supply, which recorded a change of 37.8% in 2023, reflecting an increase in cash that was not captured by the banking sector.
The study also highlights the growth in results from financial assets and liabilities around 180 billion kwanzas compared to the same period last year, resulting from the capital gain generated by the sale of Angolan public debt by some banks, according to a press release from the consultancy.
The study also emphasizes the “gradual but sustained” evolution of the use of electronic payment methods: there was an increase of 10.5% in the number of Multicaixa cards issued and an 11.1% increase in the number of Automatic Teller Machines (ATMs), with transactions on POS terminals increasing by 25% over the same period.
The Multicaixa Express app saw growth close to 54.9% in 2023, while e-commerce recorded a 48% increase in total transactions.
Quoted in the same release, the president of Deloitte Angola, José Barata, highlighted the “challenging scenario” of the banking sector, noting the sharp reduction in revenues from overseas operations, lower returns on public debt securities investments, and losses in the credit portfolio.
