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    • Banking Industry Angola

    The Banking Industry in Angola 2019

    Louise Mitchell | Angola | 07 November 2019

    The Banking Industry in Angola 2016

    Louise Mitchell | Angola | 09 May 2016

    Report Info

    Report Summary Table of Contents
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    Introduction

    This report on the Angolan banking industry covers deposit-taking institutions which include other credit granting, lease financing, and loyalty and reward programmes, as well as central banking. Total assets of commercial banks increased by 3.1% to Kz(kwanza)9.75-trillion (approximately US$58.7bn) in 2017 from Kz9.46-trillion (approximately US$57.1bn) in 2016 . The industry is dominated by six banks, of which one is the state-owned Banco de Poupança e Crédito. Data from the central bank showed that the six leading players in 2017 held 78.6% (Kz7.67-trillion) of the total assets of commercial banks, and 77.2%% (Kz5.4-trillion) of total deposits and current accounts with customers that amounted to Kz6.99-trillion. Competition from non-bank institutions remains low. Even though the number of registered microfinance institutions increased from 10 in 2015 to 24 in 2019, they have little more than 30,000 active clients. The restructuring and privatisation of state-owned banks will increase competition among the commercial banks.

    Strengths

    • A robust banking regulatory framework and enhanced fiscal controls have been implemented.
    • Angolan banks are well capitalised.
    • Angola’s banking sector is the third-largest in sub-Saharan Africa.
    • Competition will intensify as commercial banks compete for currency and customers.
    • Credit lines provided to banks by development banks enable them to support private businesses and economic development.
    • The new competition law will ensure that competition is fair and regulated.

    Weaknesses

    • Angola’s business environment ranks as one of the most challenging in the world.
    • The creditworthiness of customers is difficult to establish, as reliable financial information is difficult to harvest.
    • The largely unbanked rural population has limited or no access to financial services.
    • The sector is hampered by a lack of access to capital markets, as well as a lack of alternative sources of finance for medium- and long-term funding.

    Opportunities

    • Growth opportunities could be created through infrastructure development, property finance and export finance, and financial inclusion.
    • The creation of financial literacy programmes and the development of innovative financial products targeting Angola’s largely unbanked population.
    • The restructuring and privatisation of state-owned banks will reduce the competitive power of these banks.
    • The roll-out of mobile money services, particularly in areas that are difficult to access by road and which are not served by traditional banks.

    Threats

    • A collapse in the oil price and resultant recessionary pressures, which could result in further downgrades by credit ratings agencies.
    • Corruption is deeply rooted in the country and permeates through to the banking sector.
    • Exchange rate volatility.
    • Government shareholding in a number of banks impacts negatively on competition in the sector.
    • Increasing number of non-performing loans resulting from deteriorating macroeconomic conditions.
    • New regulations from the European Central Bank to protect European banks against weak or corrupt financial markets outside the European Union.

    Outlook

    Consolidation in the Angolan banking sector is viewed by many as unavoidable. Some stakeholders believe the biggest challenges facing Angolan banks will be the increasing number of non-performing loans resulting from deteriorating macroeconomic conditions, and at times delayed payment by government because of lower oil revenues. Respondents mentioned that infrastructure development, property finance and export finance, as well as financial inclusion and possibly bancassurance, hold the greatest opportunities for Angolan banks. Growth in credit granting is expected to increase through additional credit lines awarded to banks by international funding organisations. Efforts by government to diversify the economy through the growth of small enterprises in sectors other than oil are likely to result in a surge in the microcredit granting sector.

    The Banking Industry in Angola 2019

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    Industry Landscape

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    The Banking Industry in Angola 2016-05-09

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 4
    2. COUNTRY INFORMATION 4
    3. DESCRIPTION OF THE INDUSTRY 5
    3.1. Industry Value Chain 9
    3.2. Geographic Position 11
    4. SIZE OF THE INDUSTRY 12
    5. STATE OF THE INDUSTRY 16
    5.1. Local 16
    5.1.1. Corporate Actions 19
    5.1.2. Regulations 20
    5.1.3. Enterprise Development and Social Economic Development 22
    5.2. Continental 22
    5.3. International 28
    6. INFLUENCING FACTORS 30
    6.1. Economic Environment 30
    6.2. Government Initiatives 31
    6.3. Labour 32
    6.4. Information Technology (IT), Research and Development (R&D) and Innovation 33
    6.5. Rising Operating Costs 33
    6.6. Financial Inclusion 34
    6.7. Cybercrime and Fraud 35
    7. COMPETITION 36
    7.1. Barriers to Entry 37
    8. SWOT ANALYSIS 37
    9. OUTLOOK 38
    10. INDUSTRY ASSOCIATIONS 39
    11. REFERENCES 39
    11.1. Publications 39
    11.2. Websites 40
    APPENDIX 1 42
    Summary of Notable players 42
    COMPANY PROFILES 45
    BANCO ANGOLANO DE INVESTIMENTOS S.A. 45
    BANCO BAI MICRO FINANCAS S.A. 52
    BANCO BIC S.A. 55
    BANCO CAIXA GERAL ANGOLA S.A. 59
    BANCO COMERCIAL ANGOLANO S.A. 63
    BANCO COMERCIAL DO HUAMBO S.A. 67
    BANCO DE COMERCIO E INDUSTRIA S.A. 69
    BANCO DE DESENVOLVIMENTO DE ANGOLA 73
    BANCO DE FOMENTO ANGOLA S.A. 75
    BANCO DE INVESTIMENTO RURAL S.A. 78
    BANCO DE NEGOCIOS INTERNATIONAL S.A. 80
    BANCO DE POUPANCA E CREDITO S.A. 85
    BANCO ECONOMICO S.A. 87
    BANCO KEVE S.A. 90
    BANCO MILLENNIUM ATLANTICO S.A. 95
    BANCO NACIONAL DE ANGOLA 98
    BANCO SOL S.A. 100
    BANCO VALOR S.A. 104
    BANCO VTB AFRICA S.A. 106
    FINIBANCO ANGOLA S.A. 108
    STANDARD BANK DE ANGOLA SA 111
    STANDARD CHARTERED BANK ANGOLA S.A. 115

    Report Coverage

    The detailed report on the Angolan banking sector describes the current market, the latest regulatory developments and discusses factors influencing the success of the sector. The report profiles 24 companies, including the five leading banks, Banco Angolano de Investimentos (BAI), Banco de Poupança e Crédito (BPC), Banco de Fomento Angola (BFA), Banco Privado Atlântico (BPA) and Banco Internacional de Credito Angola (Banco BIC). Also profiled are Standard Bank de Angola (SBdA), a subsidiary of Standard Bank of South Africa, and Banco VTB Africa, S.A. (VTB), a partnership between Russian bank VTB Bank and Angolan partners which specialises in the provision of corporate banking services to international companies operating in the country.

    Introduction

    The focus of this report is the Angolan banking industry, including other credit granting, lease financing, and loyalty and reward programmes. The banking sector is vital to a country’s economy because it distributes resources and capital across all economic sectors, which in turn allows these sectors to contribute to the performance of the economy. The Angolan banking sector provided employment to approximately 19,000 people in 2014 and the finance, real estate and business services sector contributed 3.6% to GDP in 2013. Total assets in the Angolan banking sector amounted to Kz6,440.6bn, approximately US$65.5bn in 2014, decreasing by 3% from Kz6,634.5bn, approximately US$68.6bn in 2013. Economic policy measures designed to mitigate the imbalances in state accounts as a result of the rapid drop in the oil price, and to safeguard international liquid reserves and price stability, led to, among other measures, the discontinuation of the sale of ‘oil dollars’ directly to banks. Notwithstanding these challenges, the central bank, Banco Nacional Angola, is putting regulatory instruments in place in order to comply with international standards.

    Strengths

    • A robust banking regulatory framework and enhanced fiscal controls have been implemented.
    • Angola boasts the third-largest banking sector in sub-Saharan Africa.
    • Angolan banks are well capitalised.

    Weaknesses

    • Angola’s business environment ranks as one of the most challenging in the world.
    • Regional disparities are high, as relatively little geographic dispersion has taken place in the inland provinces and the largely unbanked rural population has limited or no access to financial services.
    • The banking sector is highly concentrated, with five players dominating the market and Angola has no competition law.
    • The creditworthiness of customers is difficult to establish, as reliable financial information is difficult to harvest.
    • The sector is hampered by a lack of access to capital markets, as well as a lack of alternative sources of finance for medium- and long-term funding.

    Opportunities

    • Future infrastructure development, property finance and export finance, as well as financial inclusion and possibly bank assurance.
    • Increasing the penetration of profitable banking products for Angola’s emerging middle/upper middle classes. Such products typically include mortgage and vehicle loans, investments, credit cards, electronic payment transfers and foreign exchange.
    • The creation of financial literacy programmes, as well as the development of innovative financial products targeting Angola’s largely unbanked population.
    • The roll-out of mobile money services, particularly in areas that are difficult to access by road and which are not served by traditional banks.

    Threats

    • A collapse in the oil price and resultant recessionary pressures, which could result in further downgrades by credit ratings agencies.
    • Angolan political interests in financial institutions which lead to potential reputational damage.
    • Contagion from the prevailing sovereign debt crisis involving several euro-zone countries, especially Portugal.
    • Criminal activities, including corruption, money laundering and the financing of terrorism.
    • Exchange rate volatility.
    • Government shareholding in a number of banks impact negatively on competition in the sector.
    • Increasing number of NPLs resulting from deteriorating macroeconomic conditions.
    • New regulations from the European Central Bank to protect European banks against weak or corrupt financial markets outside the EU.

    Outlook

    Looking ahead, consolidation in the Angolan banking sector is viewed by many as unavoidable. Lessons learnt from BESA’s liquidation in 2014 can be applied should weak banks be identified. The continued strengthening of the institutional framework of the bank supervision and resolution mechanism, together with crisis management and contingency planning arrangements are expected to strengthen the sector when it faces difficult macroeconomic conditions. Some stakeholders believe the biggest challenges facing Angolan banks will be the increasing number of NPLs resulting from deteriorating macroeconomic conditions, and at times delayed payment by government because of lower oil revenues. Respondents mentioned that infrastructure development, property finance and export finance, as well as financial inclusion and possibly bank assurance, hold the largest opportunities for Angolan banks. The Angolan market has not yet noticed a surge in other credit institutions, mainly because the socio-economic conditions of the country do not require their presence. Nonetheless, the middle class is growing and greater diversification of financing products will become necessary. Growth in credit granting is expected to increase through additional credit lines awarded to banks by international funding organisations. Efforts by government to diversify the economy through the growth of SMMEs in sectors other than oil are likely to result in a surge in the micro-credit granting sector. As far as loyalty and reward programmes are concerned, industry participants estimate more programmes will be introduced and that memberships will grow as more consumers become aware of the benefits offered by programmes such as these.

    Read More..
    The Banking Industry in Angola 2016

    Full Report

    R 1 900.00(ZAR) estimated $98.97 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 69.28 (USD)*

    Buy Now +

    Historical Reports

    The Banking Industry in Angola 2019-11-07

    R 1 900.00(ZAR) estimated $98.97 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 14
    4.1. Local 14
    4.1.1. Corporate Actions 19
    4.1.2. Regulations and Government Programmes 22
    4.1.3. Enterprise Development and Social Economic Development 25
    4.2. Continental 27
    4.3. International 30
    5. INFLUENCING FACTORS 31
    5.1. Government Initiatives 31
    5.2. Economic Environment 32
    5.3. Expansion into Africa 34
    5.4. Labour 34
    5.5. Rising Operating Costs 35
    5.6. Information Technology 36
    5.7. Crime and Security 39
    5.8. Financial Inclusion 39
    5.9. Environmental Concerns 40
    6. COMPETITION 40
    6.1. Barriers to Entry 41
    7. SWOT ANALYSIS 43
    8. OUTLOOK 44
    9. INDUSTRY ASSOCIATIONS 45
    10. REFERENCES 45
    10.1. Publications 45
    10.2. Websites 46
    COMPANY PROFILES 48
    BANCO ANGOLANO DE INVESTIMENTOS SA 48
    BANCO ANGOLANO DE NEGOCIOS E COMERCIO SA 54
    BANCO BAI MICRO FINANCAS SA 57
    BANCO BIC SA 59
    BANCO CAIXA GERAL TOTTA DE ANGOLA SA 61
    BANCO COMERCIAL ANGOLANO SA 64
    BANCO COMERCIAL DO HUAMBO SA 68
    BANCO DE COMERCIO E INDUSTRIA SA 70
    BANCO DE DESENVOLVIMENTO DE ANGOLA 72
    BANCO DE FOMENTO ANGOLA SA 74
    BANCO DE INVESTIMENTO RURAL SA 77
    BANCO DE NEGOCIOS INTERNATIONAL SA 78
    BANCO DE POUPANCA E CREDITO SA 84
    BANCO KEVE SA 86
    BANCO KWANZA INVESTIMENTO SA 90
    BANCO MILLENNIUM ANGOLA SA 92
    BANCO PRESTIGIO SA 97
    BANCO PRIVADO ATLANTICO SA 99
    BANCO SOL SA 102
    BANCO VALOR SA 106
    BANCO VTB AFRICA SA 108
    FINIBANCO ANGOLA SA 109
    STANDARD BANK DE ANGOLA SA 112
    STANDARD CHARTERED BANK DE ANGOLA SA 115

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