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ANGOLA | ||
Advantageous financial services reforms, abundant natural resources and a young population means there is plenty of potential for long-term economic growth in Angola. The banking sector is dominated by six large lenders, with very little competition from non-bank institutions.
Banco Angolano de Investimentos (BAI) remains Angola’s leading private-sector bank. It has been pursuing a consolidation strategy that is now yielding encouraging results. Last summer’s initial public offering of 10% of the business raised NKz40.1 billion ($60 million).
The deal was the first IPO in Angola and preceded the launch of the stock exchange after a decade of anticipation. BAI also became the first bank to conduct a transaction on the Angolan exchange.
As of December 2022, BAI held a 19% market share of deposits and 11% market share of loans in Angola. It reported a return on assets of 3.2% and a return on tangible equity of 26.4%. Total revenues came in at NKz264 billion and profits before tax stood at NKz115 billion.
The bank has invested heavily in refurbishing its IT systems, adopting a cloud-first strategy using data centres from US tech company VMware.