Angola: Bank sector profits quadruple in 2021, new report shows

Banks in Angola had an overall positive performance last year, indicates a study carried out by consulting firm Deloitte, presented on Tuesday in Luanda. The government's action and the reduction of public debt had an impact on the financial sector.

"The sector remained resilient, marked by a rise in the rating of the republic of Angola, which translated into a need for less impairments for public debt." says José Barata, Deloitte Country Manager Partner.

This study analyses in detail the 25 banks that operate in the country’s financial system, taking into account their performance on several financial indicators. It also talked about economic growth and forecasts GDP growth for 2022 to be around 3 percent.

"Robust banks, banks that are close to the citizens, banks that can in fact allocate their cash to projects that are viable and that are in fact credible are banks that in our market will be able to promote this growth." says Ottoniel dos Santos, secretary of State Finances and Treasure.

Analysts believe the challenge is to make these numbers reflect in the real economy and in people's lives, even if the southern African nation currently faces other economic challenges.

"The international context is challenging but it seems to me that the steps that have been taken are now bearing fruit and Angola even seems to be growing in a counter cycle and reducing inflation with other countries in the world." Pedro Siza Vieiria, former Economy Minister of Portugal said.

Of the 25 commercial banks registered to operate in Angola, five controls over 80 percent of total banking assets, deposits, and loans according to the International Trade administration.