Best bank: Banco Angolano de Investimentos
Banco Angolano de Investimentos (BAI) posted impressive financial results for 2023. Profit before tax stood at AKz220 billion ($250 million), almost double its 2022 result (AKz115 billion), and the bank achieved a return on equity of 36%, up from 26% the year before.
These numbers have certainly been helped by the devaluation of the Angolan kwanza, but the bank has continued to grow its customer base and has the largest market share in the country in terms of debit and credit cards, with 26% of all cards issued.
It has improved its digital offering in 2023 with the addition of instant payments between BAI Angola and BAI Europe. The launch of its agricultural credit campaign this year will increase lending to existing farmers and producers looking to invest in production for next year.
In July, pan-African banking group Access Bank bought 51% of Angola’s Finibanco Angola from Banco Montepio of Portugal, its first acquisition in the country. Along with four other banks, BAI controls over 80% of bank assets in the country.
Best investment bank: BofA Securities
Investment banking activity has been muted in Angola in the review period, thanks to the economic headwinds facing the country, including the dependency of Angola’s economy on global oil prices and the currency devaluation. Where there have been deals, they have, unsurprisingly, been in the country’s oil sector.
BofA Securities dominated the M&A league tables, with a 56.9% market share, according to Dealogic, thanks to its leading role on Angola’s largest deal of the year – Portuguese energy company Galp’s exit from its mature Angolan assets.
The US firm took the lead on the $830 million deal, which saw Angola’s biggest privately owned energy company, Sociedade Petrolifera Angolana (Somoil) buy Galp’s Angolan upstream assets. BofA Securities acted as financial adviser to Galp on the deal, which was completed in the second half of the year.
Best bank for corporate responsibility: Banco Angolano de Investimentos
Banco Angolano de Investimentos (BAI) demonstrated a commitment to advancing banking access in Angola through social investments and digital initiatives. It has also pushed forward with investments in SMS banking functionalities, thus catering to a wider customer demographic.
The bank allocated 1% of its revenue to social investments, including sponsorships and its own initiatives focusing on education, wellbeing, sports and culture.
BAI also used social media and branch-based ‘navigators’ to educate customers on digital banking. This has played a crucial role in improving the digital literacy of its customers.
The bank expanded its correspondent banking network from zero to 550 in just two years, with plans to more than double it by 2025.
