Ver Angola

Banking and Insurance

Postponement of sale of stake in BNI Europe penalizes BNI results

The profits of Banco de Negócios Internacional (BNI) decreased last year to 2.5 billion kwanzas, a result that reflects the impact of the postponement of the process of divesting the stake in BNI Europa.

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According to a statement from the banking institution, the decrease in net income compared to 6.8 billion kwanzas recorded in the same period also reflects the incorporation of the adjustments recommended by the Asset Quality Assessment program, promoted by the National Bank of Angola, in 2018 , carried out in the 13 largest banks in the market.

The context of uncertainty, caused by the covid-19 pandemic, led the Chinese group KWG to give up the purchase of an 80.1 percent stake in BNI Europa, the bank led by Pedro Pinto Coelho said in April.

“Banco BNI Europa informs that, although all conditions for the completion of the sale of an 80.1 percent interest in the respective share capital have been fulfilled, the prospective acquirer has communicated to the seller its intention not to honor the contract for the acquisition of qualified participation signed in December 2017 ”, he said at the time.

The Chinese were going to buy the majority of the capital that is currently in the hands of the Angolan bank BNI, led by Mário Palhares, former deputy governor of the supervisor Banco Nacional de Angola.

BNI ended 2019 with a net asset of 377.8 billion kwanzas, which was reflected in a 25 percent growth.

In a statement, the bank said that the securities portfolio reached a total of 123.2 billion kwanzas, corresponding to an annual growth of 16 percent and the credit portfolio, with a total of 124.4 billion kwanzas, equivalent to 22 percent of annual growth.

"Customer resources totaled 310.7 billion kwanzas, reflecting a transformation ratio of 40 percent," added the note.

Within the main profitability ratios, the banking institution also highlighted the efficiency ratio (‘cost to income’), of 43.3% per cent and for ‘return on equity (ROE) of 6.6 per cent.

"With regard to soundness, regulatory own funds totaled 37.6 billion kwanzas and the regulatory solvency ratio (RSR) remained at 16.1 percent," said the document.

The increase in international credit lines (IFC - International Finance Corporation, Afreximbank, HSBC Banc, among other institutions), to a total of 164 million dollars, instruments to support imports and domestic production, as well as the bet on digital transformation included based on the strategies adopted by BNI in 2019.

Founded in 2006, headquartered in Luanda, BNI operates in the private, corporate and institutional segments, providing a global financial service, with operations in Angola and Portugal.