(in percentage) Jan '19 Feb '19 Mar '19 Apr '19

Capital adequacy        
Banking sector in Angola Regulatory capital to risk-weighted assets 29.0 30.1 31.2 31.1
Capital (net worth) to risk-weighted assets 22.7 23.9 24.8 24.6

• Commercial banks in Angola are predominately Angolan, Asset quality        

Foreign exchange loans to total loans 27.1 27.3 28.0 27.7
Portuguese, and South African.
Nonperforming loans to gross loans 28.1 27.8 28.4 28.5
• Most banks traditionally concentrate on short-term commission- Non performing loans net of provisions to capital 14.8 12.9 1.7 1.1
related activities, such as foreign exchange operations and trade
Sectoral distribution of credits
financing.
Credit to public sector to total credit 11.4 11.0 9.9 9.7
• While the Angolan financial sector has grown rapidly, it has not Credit to private sector to total credit 88.6 89.0 90.1 90.3
yet acted as a catalyst for diversification in the economy.
Earnings and profitability        
Participants were sceptical about whether it would do so in the
Return on assets (ROA) 0.8 1.2 0.9 1.2
future. Return on equity (ROE) 4.9 6.3 4.6 6.4
Expense/income
• The trajectory of Angola’s financial sector development shares 99.5 99.7 99.9 99.9
Cost-to-income 30.6 32.9 40.5 43.4
similarities to that of other natural resource rich economies. Lending rate minus demand deposit rates 19.5 23.8 24.1 23.0
Saving deposit rates 5.3 5.2 6.3 1.3
• Angola’s international financial integration is directly shaped by Interest margin to gross income 50.5 50.5 61.9 59.9
elite control of the economy.
• Liquidity        
Regulatory capacity is hampered more by insufficient autonomy
Liquid assets/total assets 21.8 22.2 23.1 24.5
on the part of the regulator, rather than by resource constraints. Liquid assets/short term liabilities 29.0 29.6 29.8 31.3
Loan/deposits 45.3 44.6 43.5 43.8
Foreign exchange liabilities/total liabilities 46.6 45.7 45.7 45.6

Sensitivity to market risk        

Source: BNA/Departamento de Supervisã o Bancá ria (DSB)
Net open position in foreign exchange to capital 28.9 29.4 29.3 28.5
Number of reporting banks: 26
 Angola foreign bank assets as total bank asset (as %) Banking Sector NIM (% Annual) Angola NPL to total gross loan (% annual)
55 8 12
54 54 54 54 7.6
54 10.6
7.0 7.1 7.0 10.2
53 7 6.7 10
53 6.5
52 6.3
52 8.0
6 5.7 8
51 5.5
50 50 5.1 5.2
50 5 4.7 4.7 6
49 4.4
49 4.4
48 4 4
48 3.2
47 2.0
3 2
46
45 2 0
04 05 06 07 08 09 10 11 12 13 02 03 04 05 06 07 08 09 10 11 12 13 14 15 10 11 12 13 14 15
/20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
15 15 15 15 15 15 15 15 15 15 15 /15 /15 /15 /15 /15 /15 /15 /15 /15 /15 /15 /15 /15 15 15 15 15 15 15
6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/ 6 6 6 6 6 6 6 6 6 6 6 6 6 6/ 6/ 6/ 6/ 6/ 6/

Angola bank return on equity (% before tax) Angola bank return on asset (%before tax)
Angola bank return on equity (% after tax) Angola bank return on asset (% after tax)
60 5 4.14
3.87 3.93
4 3.77
50 47.77
41.61 42.57 4 3.23
39.97 3.61 3.61 3.57
40 35.63 3
3.15
39.17 2.98
28.35 3
30 33.78 2.04 1.92 2
32.48 1.91
2
26.13 18.2 19.78
20 17.18 17.73 2 1.76 1.84
1.63 1.73
18.21 1
15.74 14.59 15.99
10
1

0 0
6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/
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Source: World Bank