Meteorologia

  • 21 SEPTEMBER 2024
Tempo
17º
MIN 16º MÁX 24º

Angolan banks' revenue increased 43% in 2023

The Angolan banking sector obtained revenues in the order of 1.83 billion kwanzas (20.5 billion euros) in 2023, a 43% year-on-year increase, according to the annual report of the National Bank of Angola (BNA).

Angolan banks' revenue increased 43% in 2023
Notícias ao Minuto

18:35 - 01/05/24 por Raquel Rio

Mundo Angola

According to the document consulted by Lusa, the profitability of the banking sector was set at 862 billion kwanzas (968 million euros), registering an increase of around 83% compared to 2022.

The levels of the Return on Equity (ROE) and Return on Assets (ROA) ratios increased considerably from 22.14% and 2.73% at the end of 2022 to 30.38% and 4.24% in December 2023, respectively, the report continues.

Last year there were 22 banking financial institutions, with 1,478 branches and 366 banking agents in Angola, as well as 18 million open bank accounts, 68% of which were held by six banks.

In the period under analysis, the assets of the banking system continued to show an increasing trend, having registered an increase of 3.65 trillion kwanzas (4 billion euros), around 20%, compared to 2022, influenced fundamentally by the increase in the items securities and credit to customers.

At the end of 2023, the credit default ratio reversed the downward trend registered in 2022, with non-performing loans set at 884.61 billion kwanzas (993 million euros), an increase of 33% compared to the previous period

In turn, the total liabilities of the banking sector totalled 18.78 trillion kwanzas (21 billion euros), 20.36% higher than the previous year due to the increase in the item Customer Resources and Other Loans, the main source of financing for this sector

The capacity to cover short-term obligations in national currency and foreign currency showed an increasing trend, with the immediate liquidity ratio in foreign currency increasing from 37% in December 2022 to 39% in the period under analysis. With regard to national currency liquidity, the opposite occurred, decreasing from 21% at the end of 2022 to 17% in the period under analysis.

Regarding the solvency of the banking system, there was a growth of 1.84 percentage points in the Regulatory Equity ratio "due, fundamentally, to the capital increase by the banks, within the scope of the execution of the macroprudential policy, with emphasis on the capital reserve measures", describes the report.

Thus, at the end of 2023, the observed solvency ratio stood at 30.25%, "evidencing the continuous resilience of the banking sector in the face of the risks inherent to banking activity", according to the BNA.

Read Also: Angolan public debt increased to 88% of GDP in 2023 (Portuguese version)

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