Imara African Cement Report Africa, the last cement frontier Angola ...

Banking Sector – Mandatory domestic banking for Oil Majors on the cards
The shareholding structure of the Angolan banking sector is a complex web of interrelations with still a very
strong presence of Portuguese players in the fray. The diagram above is not a complete representation of the
banking structure and excludes most of the smaller banks which are less transparent, and some of the latest
developments in the banking sector. The chart does, however, amply demonstrate Sonangol‟s dominance in the
banking sector, having as it does, an interest in more or less all of the largest banks in the country, directly or
indirectly. The Portuguese, being the largest source of imports into Angola, still have an active presence, in
the banking sector, and from current indications, this is likely to grow further. Sonangol‟s banking interests
have also been reinvested into Europe to improve funding options for the country and deepen the existing lines
of credit available thereto. Interestingly there are no Brazilian Banks yet, however Russia and India are set to
open up banks in Angola. Significantly, South Africa‟s Standard Bank received a full retail banking license
towards the end of 2009, whilst ABSA pulled the plug on their representative branch in the same year.
In total there are 23 banks in the Angolan Banking sector including recently opened Banco Quantum, Fini Banco
and Caixa Geral de Depósitos Totta. The following are some of the aggregate banking statistics for the top 17
Banks as at the end of December 2008, the latest available date. We expect the current statistics to be higher,
however, primarily arising from the increase in M3 in 2009 of 28% and the multiplier effect on loans and
advances. It is also noteworthy that in aggregate, the profitability of the banking sector, especially for 2008,
would have been muted by the large number of start-ups; three of the banks covered were yet to break even.
Banking Sector Overview
Angolan banks have not been severely impaired by the financial instability of the past two years and the sector
maintains an adequate capital buffer. Non-performing loans (NPLs) increased during 2010 from 2.6% at end-
2009 to 7.1% by end-September 2010, in part reflecting the liquidity difficulties of companies affected by
government payment arrears. Settlement of these payments arrears should, indirectly, help improve the NPL
situation, but the evolution of NPLs will need to be kept under close review. New prudential measures to
contain risks to the banking system were prescribed by the IMF, which now plays an active role in monetary
policy implementation.
Table 7: Angolan Banks - Aggregate data
Total Assets Total
Advances
Total Deposits Total Equity Total PBT Total PAT Number of
employees
Number of
Branches
Number
of ATMs
AKZ Million
2009 AKZ 3,756,413 AKZ 363,577 AKZ 118,457 AKZ 353,711 AKZ 125,592 AKZ 118,457 10,041 699 526
2008 AKZ 2,605,691 AKZ 798,675 AKZ 1,355,216 AKZ 193,546 AKZ 73,271 AKZ 65,658 9,128 635 478
% ch 44% -54% -91% 83% 71% 80% 10% 10% 10%
US$ millions RoAE RoAA
2009 US$ 41,914 US$ 4,057 US$ 1,322 US$ 3,947 US$ 1,401 US$ 1,322 35.6% 3.2%
2008 US$ 39,684 US$ 14,946 US$ 25,846 US$ 3,483 US$ 1,268 US$ 1,163 33.4% 2.9%
% ch 6% -73% -95% 13% 11% 14%
Source: Imara Securities Angola SCVM
23