The increase is explained by the 261 percent growth in foreign exchange earnings, which totaled 452 billion kwanzas, due to the exchange rate devaluation of the kwanza against the euro and the dollar, while banking income increased by 48 percent, according to the study released by Deloitte Angola.
The Banking in Analysis study, in its 18th edition, was prepared based on financial information from the 23 banks that operated in the country during the year 2023, which "was marked by a challenging international situation, with impacts arising from geopolitical conflicts and by the reduction in the price of oil".
In 2023, net credit granted to customers increased by around 40 percent and credit quality – the impairment loss coverage ratio – reduced from 22 percent to 19 percent, with particular emphasis on the decline in impairment coverage of defaulted credits.
The overdue credit ratio, as stated in the Deloitte statement, "recorded a marginal increase compared to 2022, reaching 20.8 percent in 2023, compared to 20.6 percent in the same period last year" and the total overdue credit on banks' assets went from around 5 percent in 2022 to 5.2 percent.
"In this context, banks must continue to make an additional effort to reinforce credit impairments, as coverage has been reducing in recent years", the document highlights.
Deposits registered an increase of close to 31 percent compared to 2022, lower than the growth of the money supply, which registered a variation of 37.8 percent in 2023, reflecting the increase in cash that was not captured by the banking sector.
Also noteworthy is the growth in results from financial assets and liabilities of around 180 billion kwanzas compared to the same period last year resulting from the added value generated by the sale of Angolan public debt carried out by some banks, according to a press release from the consultancy.
The study also highlights the "gradual but sustained evolution" in the use of electronic payment methods: there was an increase of 10.5 percent in the number of Multicaixa Cards issued and 11.1 percent in the number of Automatic Teller Machines (ATM), with TPA transactions increasing by 25 percent in the same period.
The Multicaixa Express application grew by close to 54.9 percent in 2023, while e-commerce recorded a 48 percent increase in total transactions.
Quoted in the same statement, the president of Deloitte Angola, José Barata, highlighted the "challenging scenario" of the banking sector, highlighting the sharp reduction in revenue from foreign operations, lower returns on investments in public debt securities and losses in the portfolio credit.
