Banco Económico once again ‘hides’ financial information and is excluded from the most important study of the banking sector in Angola.

Banking institution repeats, for the second time, omitting important statistics on its performance, leaving its customers and shareholders without any data on the bank's financial situation. BNA guarantees that it is looking for the best solution for Económico and does not rule out closing the bank.

The balance sheet accounts for all Banco Económico operations for the year 2023 were once again unavailable, either on its website or in mass circulation newspapers, such as Jornal de Angola, even after the deadline imposed by law, April 30, had passed. of the year immediately following the year of the financial year in question, which cost the bank the removal, once again, from the important study of the performance of Angolan banking activity, 'Banking in Analysis', from Deloitte, Kieto Economia found out.

This is the second time that the bank founded from the 'ashes' of the bankrupt Banco Espírito Santo Angola (BESA) has not disclosed accounts and has been left out of Deloitte's reports.

“This edition of Banca under analysis includes audited financial information on an individual basis of Banks operating in Angola during the year 2023, with the exception of Banco Económico, S.A. (BE) and VTB África, S.A. (VTB). Regarding BE, it is important to note that, until the date of preparation of this study, the Bank did not publish the Reports and Accounts for 2022 and 2023, having, however, published on its website the quarterly balance sheets (unaudited) for 2022 and 2023. In turn, VTB has not yet published the 2023 Report and Accounts, having, however, published on its website the quarterly balance sheets (unaudited) for 2023. For the purposes of preparing this study, the information of the balance sheets of these 2 Banks was used whenever possible”, reads the message from the president of Deloitte Angola, José Barata.

At issue, according to administration sources, is an intervention program for Banco Económico, which is being designed by the National Bank of Angola (BNA). In fact, this is the second time that the central bank has announced an intervention plan for the former BESA.

In practice, and after several years in which Banco Económico's situation dragged on without direct intervention from the BNA, the first steps are being taken so that the central bank can announce a resolution plan for the banking institution.

Kieto Economia knows from those involved in the process that an independent entity has been hired to carry out a study on the bank's situation, and which will serve as a basis for implementing the resolution measures provided for in the Financial Institutions Law, art. 251. In this regard, it should be noted that a resolution committee is being set up within the BNA structure, which should have intervention at Banco Económico as its first task.

The resolution measures provided for in the law involve "partial or total alienation of the activity to another institution authorized to carry out the activity in question", similar to what happened in Portugal in the BES process with the creation of Novo Banco, "transfer, partial or total, of the activity to one or more transitional banking institutions", "segregation and partial or total transfer of the activity to asset management vehicles" and "bail-in internal recapitalization".

Banco Económico once again ‘hides’ financial information and is excluded from the most important study of the banking sector in Angola

Banking institution repeats, for the second time, omitting important statistics on its performance, leaving its customers and shareholders without any data on the bank's financial situation. BNA guarantees that it is looking for the best solution for Económico and does not rule out closing the bank.

Jun 20, 2024 - 16:49
Latest update   - 10:27
Banco Económico once again ‘hides’ financial information and is excluded from the most important study of the banking sector in Angola
© Photography by: DR
Banco Económico once again ‘hides’ financial information and is excluded from the most important study of the banking sector in Angola

The balance sheet accounts for all Banco Económico operations for the year 2023 were once again unavailable, either on its website or in mass circulation newspapers, such as Jornal de Angola, even after the deadline imposed by law, April 30, had passed. of the year immediately following the year of the financial year in question, which cost the bank the removal, once again, from the important study of the performance of Angolan banking activity, 'Banking in Analysis', from Deloitte, Kieto Economia found out.

This is the second time that the bank founded from the 'ashes' of the bankrupt Banco Espírito Santo Angola (BESA) has not disclosed accounts and has been left out of Deloitte's reports.

“This edition of Banca under analysis includes audited financial information on an individual basis of Banks operating in Angola during the year 2023, with the exception of Banco Económico, S.A. (BE) and VTB África, S.A. (VTB). Regarding BE, it is important to note that, until the date of preparation of this study, the Bank did not publish the Reports and Accounts for 2022 and 2023, having, however, published on its website the quarterly balance sheets (unaudited) for 2022 and 2023. In turn, VTB has not yet published the 2023 Report and Accounts, having, however, published on its website the quarterly balance sheets (unaudited) for 2023. For the purposes of preparing this study, the information of the balance sheets of these 2 Banks was used whenever possible”, reads the message from the president of Deloitte Angola, José Barata.

At issue, according to administration sources, is an intervention program for Banco Económico, which is being designed by the National Bank of Angola (BNA). In fact, this is the second time that the central bank has announced an intervention plan for the former BESA.

In practice, and after several years in which Banco Económico's situation dragged on without direct intervention from the BNA, the first steps are being taken so that the central bank can announce a resolution plan for the banking institution.

Kieto Economia knows from those involved in the process that an independent entity has been hired to carry out a study on the bank's situation, and which will serve as a basis for implementing the resolution measures provided for in the Financial Institutions Law, art. 251. In this regard, it should be noted that a resolution committee is being set up within the BNA structure, which should have intervention at Banco Económico as its first task.

The resolution measures provided for in the law involve "partial or total alienation of the activity to another institution authorized to carry out the activity in question", similar to what happened in Portugal in the BES process with the creation of Novo Banco, "transfer, partial or total, of the activity to one or more transitional banking institutions", "segregation and partial or total transfer of the activity to asset management vehicles" and "bail-in internal recapitalization".