Ver Angola

Banking and Insurance

BPC with losses of 404.7 billion kwanzas in 2019

The Savings and Credit Bank (BPC) recorded a loss of 404.7 billion kwanzas, justified by the reinforcement of impairments, the reduction of exchange rate results and the reduction of active interest.

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The balance was presented this Thursday by the chairman of the Board of Directors of the public bank, in a press conference.

"The 2019 results resulted in a loss of 404.7 billion kwanzas, which was referred to as being expressive in face of what happens in banking in general" and that "has a set of explanations", indicated André Lopes.

According to the manager, the decrease in net income had to do with the fact that the banking product "had an inversion" following the asset quality assessment exercise, carried out last year, but also due to the change in the international standards of accounting.

"Banking income decreased by 116 percent, due to the reduction in income because banks failed to record interest that is not charged and does not turn into income," he explained.

The reduction in banking income was influenced by the fact that the bank failed to record non-performing credit interest for more than 90 days as profit.

In addition, he said, the bank has to set up provisions and record impairments, which are not only related to credit, but also to the fact that assets that were recorded as nominal value are now recorded according to their fair value, that is, what they are worth at the time in the market.

The increase in impairments of 321.5 billion kwanzas was also the result of the fact that a new quantification standard was adopted.

Impairments currently represent 1,038.6 billion kwanzas, which have nevertheless been partially deferred, which allowed the loss not to be even greater, underlined the same responsible.

Of the financial statements, there was also a 25 percent reduction in operating costs.

Net assets stood at 2,024.1 billion kwanzas.

The head of the bank also stressed that in 2019 "there was a significant event that led to a study on the quality of bank assets, the conclusions of which were decisive for the preparation of the recapitalization and restructuring plan".