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Annual Report
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Table of Contents
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Message from the
Chairman of the Board of Directors
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1. - Message from the Chairman of the Board of Directors
1.1 - Message from the Chairman of the Board of Directors
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BANC’s many activities in 2013 were
especially marked by the opening
of new branches in Angola and by
the opening of BANC’s representative
office in Portugal, its first step in
internationalization.
José Aires
Presidente do Conselho de Administração
Dear Shareholders and Valued Customers,
The year 2013, for which we herewith submit our management report and accounts, indelibly
marks a turning point in the life of BANC.
At a time when the world was experiencing a period of uncertainty, especially in the financial
markets – a volatility that has had a particularly stront affect on some of the major trading
partners of Angola - the country succeeded in finding the right direction for financial stabilization
that we cannot but call attention to and achieved one of the highest growth rates worldwide,
while containing inflation, reducing it to historic lows.
BANC’s many activities in 2013 were especially marked by the opening of new branches
in Angola and by the opening of BANC’s representative office in Portugal, its first step in
internationalization.
Along with these actions, we have not neglected two important key-points that make
the difference for us: a strong and growing commitment to the personal and professional
development of our employees and an increasing investment in technology and systems
that provide high security standards in banking transactions performed by our individual and
business customers.
As a result of these actions and the dedication and commitment that all BANC employees
put into the pursuit of their tasks - workers to whom I express here a sincere word of thanks and
encouragement - this year we present a remarkable financial year.
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The adjustments implemented in the composition of the governing structure, both in terms of
the administration, as well as at the senior management level, have endowed BANC with a
new dynamic that was able to cope with adverse situations and make them an important tool
in contributing to the growing banking system in the country, in line with the objectives set by
both the government and the Central Bank. More and more Angolans, beginning at younger
ages, are therefore becoming familiar with the banking system and use banks as the main
gate for the payment of all their transactions. This is a way to develop the country, but also,
and simultaneously, a way to combat the underground economy and money laundering,
and thereby contribute to the growth of Angola.
In cIosing, I leave a word of gratitude and a word of hope.
Of gratitude to the shareholders for the trust they continue to place in us and the way they
encouraged us to carry out the reforms that we believe are necessary for BANC to solidify its
position.
Of hope that 2014 will be marked by the continuity of our growth and that it will unite our
shareholders’ own wishes with the goals set by the National Authorities.
We aim to be one of the engines of entrepreneurship and support to entrepreneurs and the
national economy and hence, of the development and welfare of Angolan families.
Finally, a special word to our customers, without whose trust we would not have been able to
start this new cycle, which is a turn-around and an affirmation: Together we will grow stronger.
Our sincere thanks to all,
José Aires
José Aires
Chairman of the Board of Directors
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Economic Environment
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2. - Economic Environment
Main Indicators of BANC Management
2.1. - International
2.2. - National
2.3. - Inflation
2.4. - Exchange Rate
2.5. - Interest Rates
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Main Indicators of BANC Management
Amounts in Thousands
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2.1. International
Over the past four years, the world economy has been a reaction to and recovery from the financial
crisis of 2008. According to the International Monetary Fund, global economic growth in 2013 was
2.9%, down 0.3 percentage points from 2012.
Africa, which is considered the growth engine continent of the world economy, registered a growth
of GDP of 5.25%. Countries that stood out were South Africa, Angola and Mozambique, in spite of their
very high levels of unemployment.
The UK and Japan accelerated their economic growth in the last half of the year, contrary to the
cooling down China recorded.
In the United States of America (USA), the improvement in macroeconomic indicators is worth
noting, particularly in the labor and housing market, with positive impacts in the growth of household
consumption, despite the presences of large fiscal constraints.
The employment vulnerability in developing countries has hampered efforts to reduce poverty and
reduce fiscal space needed to invest in other critical areas such as education and health and to
accelerate progress towards achieving the Millennium Development Goals (MDGs).
For 2014, forecasts point to an expansion of global economic activity, looking for a rate of 3.6% in
production, in real terms, as a result of an acceleration of the developed economies (2%), although
the growth of emerging and developing economies, projected at 5.1%, is more modest.
2.2. National
Angola’s economic performance is recognized and appreciated internationally. The
implementation of coherent macroeconomic and stabilization policies, as well as a proper
channeling of resources and the effort directed at restoring the capacity of oil exploration,
gave greater dimension to the Angolan economy, leading it to join the class of middleincome countries, according to World Bank criteria.
While forecasts of growth in Gross Domestic Product (GDP) in Angola pointed to a growth
of 7.1% in 2013, World Bank figures indicate that Angola grew by 5.1%, which represents a
2% drop in the pace of acceleration of the growth of the national economy. Yet Angola is
among the African countries that grew most in 2013. The World Bank estimates that GDP will
grow by 8% in 2014 and 7.3% in 2015.
The oil sector remains the largest revenue generator for the State, accounting for over 75%
of gross national income and 91% of exports and 47% of GDP. The extraction of diamonds
contributes 5% to the Gross Domestic Product.
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In 2013, the highlight was the implementation of the new Foreign Exchange Law for the Oil
Sector, executed in three phases:
Phase 1:
Obligation of the oil companies to make payments to foreign
exchange non-resident suppliers of goods and services through
institutions of financial banking.
Phase 2:
Require payment flows of the oil sector to pass through the
Angolan banking sector, increasing the volume of foreign
currency available to national banks.
Phase 3:
Force companies in the oil sector to make payments to the
State and the foreign exchange resident providers of goods and
services in the national currency.
As a result of the new exchange rate regime, the banking sector has demonstrated high
liquidity in domestic currency, increasing the overall volume of deposits and loans in
the financial market. Also noted was the expansion of credit in Kwanzas, an increase in
financial intermediation in the Angolan system of payments, the development of the foreign
exchange market and the non-oil economy.
It is worth noting the enormous potential of natural gas production, which promises
to contribute in 2014 to 8% of State revenues. At the end of 2013, Angola had exported
this natural resource to Brazil and China. The non-oil sector has been led by construction
companies, whose dynamics represented 5% of the national GDP.
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2.3. Inflation
The national rate of inflation remained stable throughout the year 2013, falling to 8.38%
in October. At the end of the year it stood at 8.9%, reflecting the continued efforts of the
Angolan government to lower levels of inflation in the national economy to 5% by 2017.
Taking into account the measures that are being implemented by the executive branch
to stabilize the consumer price levels, a decrease in the rate of inflation is expected for
2014, which is projected to be 8%. Price stability favors the interest of foreign investors,
who therefore allocate capital and “know how” to the national economy.
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2.4. Exchange Rate
The Foreign Exchange Market demonstrated the efforts of the Central Bank to
deleverage the movement of U.S. dollars in the national economy. However, the
relationship USD / AKZ mirrored the appreciation of the dollar against the Kwanza. The
exchange year began with a average currency exchange rate of USD / AKZ 95.940
and ended with an average exchange rate of USD / AKZ 97.619 which resulted in a
devaluation of 1.679 Kwanzas (+2%).
In the Euro / Kwanza relationship, although we started the year with an average
exchange rate of 130.046 EUR / AKZ, in consequence of the great economic, political
and financial instability taking place in the Euro zone, the national currency registered
an appreciation of 5 Kwanza per Euro in the first half of the year. In the last quarter of
the year, tensions in Europe decreased markedly, which provided the Euro with good
conditions for its appreciation, rising 4.34 Kwanzas per Euro by the end of the year,
when the average exchange rate stood at 134.386 EUR / AKZ.
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2.5. Interest Rates
In the first half of the year, interest rates in the primary market proved unattractive to
short maturity bonds, but with higher attractiveness for maturities greater than 181 days.
Return on capital proved to be unattractive in the third quarter, a period in which interest
rates experienced the biggest falls in all maturities. In the last quarter of the year there
was a recovery in interest rates with maturities of 180 and 364 days, the financial year
ending with an average of 3.70% and 5.5%, respectively. The remuneration of treasury
bonds issued was between 7.25% and 8.25%, showing an increase of 3% compared to
the year 2012.
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Economic Performance Indicators
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3. - Economic Performance Indicators
3.1. - Dimension
3.2. - Return
3.3. - Productivity and Efficiency
3.4. - Prudential
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3.1. Dimension
The development of the Bank, together with the implementation of strategies and
investment plans, raised equity capital by 44%, totaling AKZ 4,656 million (USD 47.7
million). The Net Asset rose to AKZ 16,362 million, equivalent to USD 167.6 million. The
number of employees increased from 130 in 2012 to 159 in 2013.
Amounts in Thousands
3.2. Return
The remuneration of assets allowed the increase of the Cash Flow by AKZ 249.8 MILLIONS
(USD 2.5 million), greatly improving the indicators of profitability and performance,
leading to an income higher than in 2012, equivalent to USD 1.6 million.
Amounts in Thousands
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3.3. Productivity and Efficiency
Based on the motto of the institution “A Bank for Life”, the commitment and effort put
forth in maintaining, innovating and providing quality customer service, reverted into
a productivity ratio of AKZ 102.9 million (USD 1 million), with a coverage of 11% of the
structural costs in relation to net assets.
Amounts in Thousands
3.4. Prudential
The solvency ratio stood at 25.31%, higher than the figure of 10% recommended by the
Central Bank, 23% more than the previous period, allowing greater financial stability of
the Bank in the medium and long term.
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Business Area
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4. - Business Area
4.1. - Customer Portfolio
4.2. - Deposit Portfolio
(Individuals and Companies)
4.3. - Credit to Customers
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4.1. Customer Portfolio
During 2013 the BANC focused on strategic pillars to support economic activity and
household savings.
In the individual banking sector, the activity focused on attracting new customers,
the application of new methodologies, as well as creating new products and services
focused on the politics of banking education. In the business banking sector, the focus
was on company customer loyalty in the context of promoting the profitability of
liquidity.
In this framework, at the end of the year, the Bank had a total of 14,762 customers,
registering an increase of 23% compared to 2012. Of these, 2,658 were added in 2013,
representing 13,286 households and 1,476 businesses.
In 2013, the Customer Portfolio was distributed geographically over 9 branches and 3
Business Centers in the province of Luanda, 3 agencies in the province of Benguela, 2
agencies in Huambo, 1 agency in Lubango, 1 agency in Cunene and a representative
office in Portugal.
4.2. Deposit Portfolio (Individuals and Companies)
In regard to the Deposit Portfolio the attraction of funds was considered positive.
There was a considerable decrease in the category of Funding Liquidity. Despite the
reduction of investments in Securities, the External Resources had a meager growth of
3%. In the Deposit Portfolio, the Corporate segment stood out during 2013, especially
demand account deposits in foreign currency at 44%.
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4.3. Credit to Customers
The strategies adopted in 2013 to boost investment, produced the desired effects, with
the increase registered in Financial Credit and Signature Line of Credit segments.
In the Signature Line of Credit segment, there was an increase of 46%, originating
mainly in Guarantees Given, with an increase of 90%, while the Import Documentary
Credit mirrored a fall. In the Financial Credit segments, there was an increase of 15%.
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Domestic Operations and Foreign
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5. - Foreign and Domestic Operations
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5. Foreign and Domestic Operations
The Domestic and Foreign Operations department, together with the Compliance for
maintenance and transparency of transactions, maintained its levels of efficiency and
speed in 2013 making a total of 16,213 operations.
Domestic Operations accounted for 2,686 transactions
broken down into Check services, Compensation for
Securities, Credit Transfer Subsystem, and Real Time Payment
System, with a total turnover of 47,175 million AKZ.
The issuance and reception of foreign operations was
6,713 transactions (foreign currency USD, EUR and ZAR),
representing 2,835 more operations than in 2012, totaling
USD 353.6 million.
In 2013, with the efforts made by the Central Bank on the “dollarization“ of the economy,
the “Kwanzas-only” policy for remittances sent by various services of fast transfers went
into effect. In this context, the service operated by BANC “MoneyGram” handled 7,641
transactions with a total turnover of 33.3 million AKZ.
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Human Resources
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6. - Human Resources
6.1. - Characterization of Staff
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6.1. Characterization of Staff
Human Resources
In 2013, the program of Human Capital Growth focused on developing the capacity
and skills of employees and creating better professional conditions.
In the course of the year, the number of staff underwent changes, ending with a total
of 159 employees, representing a growth of 22% over the previous year. The hiring of
29 more employees followed the development of the commercial network with the
opening of new branches.
In 2013, there was a change in gender distribution, as women are no longer
predominant, the percentages being 48% (women) and 52% (men), with the under-35
age group being the most prevalent.
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Courses and Training
Continuous training continues to be a priority at BANC for the development of human
capital. In this context, a partnership has been established with Porto Business School,
to equip staff with training to meet the strategic plan.
In this context, twenty-eight training sessions were held, nine more than in the previous
year, with courses in Marketing, Leadership, Compliance, Commercial Management,
Asset Management, Risk Analysis, English, Taxation and Accounting.
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Computers and Development Projects
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7. - Computers and Development Projects
7.1. - Directorate of Organization and Informatics - DOI
7.2. - Directorate of Development and Projects - DDS
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7.1. Directorate of Organization and Informatics - DOI
The Directorate of Organization and Informatics (DOI), is the organizational unit of the
BANC structure responsible for implementing and operating all the processes and IT
(Information Technology) services, positioning itself in the front line of providing these
services and the respective support to the business units of the institution, with functions
in the area of organization also being assigned to it.
In the course of 2013, the DOI participated directly in the implementation and operation
of the following projects:
Recovery of AM application (Integrated Management of Bank Accounting);
Relationship Management Module;
Client Profile Module;
Correspondent Reconciliation (DR) Module;
Acquisition and installation of the new central server iPower IBM (AS400);
Implementation of the Eagle Project (Providing a decision-making support tool – Business Intelligence);
Implementation of PESI and the Service Desk tool;
Participation in the standardization process of the new model of checks;
Reorganization of the Data Center;
Opening of new branches;
Training (international certification of 2 Technicians in the field of Data Centers).
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7.2. Directorate of Development and Projects - DDS
During 2013, important steps were taken in the design and implementation of information
systems that will help boost BANC towards its goal to be a reference bank in the market
and to position itself among the top banks in terms of information technology systems.
In this context, DDS coordinated the following projects:
Optimization of the telecommunications network;
Optimization of information security;
Business intelligence and control;
Expansion of Cloud computing services;
Corporate Governance and Internal Control;
Implementation of new Swift platforms;
Opening of Representative Office in Portugal.
The biggest challenges for the coming years will continue to be the effective and
controlled implementation of the Strategic Plan for Training Systems, focusing on the
optimization of front-office and back-office and business continuity plan, ensuring a
better and faster service to our customers.
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Financial Analysis
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8. - Financial Analysis
8.1. - Assets
8.2. - Liabilities
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Financial Analysis
In 2013, the Angolan economy, sustained essentially by the Oil Sector, gained wider
dimension and became part of the class of middle-income countries with a growth of
5.1% of Gross Domestic Product.
In this economic environment, the banking business performed well, as the Bank’s Total
Assets amounted to AKZ 16,362 million (USD 167.6 million), surpassing the previous year
by 8%.
The business sector’s deposits in national currency stood out among the Customer
Deposits, which grew AKZ 1,264 million (USD 12.9 million), registering a total of AKZ 10,739
million (USD 110 million), compared to AKZ 9,474 million (USD 98.8 million) of the previous
year.
The financial margin, which originated mainly in Credit Income, fell by 25%, from 497
million AKZ (USD 5.1 million) in December 2012 to AKZ 372.9 million (USD 3.8 million) in
December 2013.
The net profit stood at AKZ 206.5 million, equivalent to USD 2.1 million, an increase of AKZ
160.5 million (USD 1.6 million), compared to that achieved in the previous year.
8.1. Assets
Amounts in Thousands
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The net assets of Banco Angolano de Negócios e Comércio reached AKZ 16,362 million
(USD 167.6 million), representing an increase of AKZ 1.208 million (USD 12.3 million), up
8% over the previous year, resulting from the growth in of Cash, Credit and Fixed Assets.
Cash and Investments of Liquidity totaled AKZ 5,199 million (USD 53.2 million) at the end
of December 2013, lower than the previous year by 20%, due to the drop of AKZ 2,122
million (USD 21.7 million) recorded in Investments of Liquidity.
Securities Portfolio
At the end of the year Investments in Securities registered a decrease of 77% compared
to December 2012, reflecting on the one hand a reduction in the offer of Central
Bank securities in the Capital Market and also the weak attractiveness of the rates of
remuneration.
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Loans to Customers
Loans to customers recorded an increase of 43% over the previous year, totaling AKZ
4,608 million (USD 47.2 million), compared to AKZ 3,212 million (USD 33.5 million) in
December 2012.
The Credit to the Business Sector had an increase of AKZ 821.1 million (USD 8.4
million), maintaining its dominance with a value of AKZ 3,782 million (USD 38.7 million),
representing 82% of the total credit.
With 18% of the total credit, credit to the individual sector for the most part went for
the acquisition of durable goods, amounting AKZ 825.6 million (USD 8.4 million), a value
twice as high as in the previous year.
At the end of the year, the balance of loans in national currency stood at AKZ 3,465
million (USD 35.4 million) with a growth of AKZ 1,645 million (USD 16.8 million), (+90%). In
foreign currency, there was a reduction of 23% reflected in the fall in the income from
loans in foreign currency by AKZ 10,081 million (USD 103.2 million) and the earnings from
credit in the year were AKZ 125,442 million (USD 1,285 million).
The growth in Credit (+43%), aligned with the increase in deposits, resulted in the increase
in the ratio of transformation, which reached 43%. When measured against the total
funding obtained, it was positioned at 45%, against 32% recorded in the previous year.
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Amounts in Thousands
Amounts in Thousands
The quality of credit improved significantly,
particularly due to the reduction of overdue
loans, reflected in an improvement of the
corresponding indicators, with the ratio of
the total overdue credit being 4% at the
end of 2013, down from the 6% recorded
in December 2012. Accordingly, the ratio
of credit provisions saw a drop of 38%.
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8.2. Liabilities
Amounts in Thousands
Customer Resources
Customer resources totaled AKZ 10,771 million (USD 110.3 million), showing an increase
of 8%, driven by customer deposits made up largely of the progression of time deposits.
The overall balance of deposits totaled AKZ 10,739 million (USD 110 million), corresponding to an increase of 13% over the previous year, with 67%, corresponding to
demand deposits and 33% to Term deposits and Savings.
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Amounts in Thousands
In the balance of Deposits, AKZ 8,506 million (USD 87.1 million), divided into domestic
and foreign currency, 82% of total investments in deposits are related to the Business
Sector, with a predominance of the Private Business Sector. Similarly, time deposits of
companies dominated with a share of 81%.
In the balance of deposits of Individuals, the growth in the time and savings modalities
resulted from the relaunching of the BANC Crescer campaign in November 2013, to
enhance the attraction of new resources and the retention of existing ones, increasing
the portfolio of time deposits (individuals) by 37% in 2013.
Provisions
Provisions for Probable Liabilities, grew by 4%, rising to AKZ 15 million (USD 154 thousand),
compared to AKZ 14.4 million (USD 150,000) in the previous year and distributed,
primarily, through Provisions for Pension and Retirement Funds (99%).
Equity Capital
The equity capital of BANC totaled AKZ 4,656 million (USD 47.7 million)
and was significantly increased compared to that observed in 2012,
which totaled AKZ 3,234 million (USD 33.7 million).
The strengthening of equity capital derived, on the one hand, from
the partial completion of the capital increase in the amount of AKZ
1,532 million (USD 15.7 million) and, on the other hand, from the 2013
net profit.
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Economic Analysis
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9. - Economic Analysis
9. - Results and Profitability
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Results and Profitability
BANC’s net profit in 2013 amounted to AKZ 206.5 million (USD 2.1 million), representing
an increase of AKZ 160.5 million - equivalent to USD 1.6 million - compared to fiscal year
2012. The results were influenced by the positive performance of foreign exchange and
financial results that allowed remarkable growth of the Supplementary Margin.
In this context, there has been a positive impact on the Return on Equity (ROE)
performance and on the return on assets (ROA), which increased from 1.42% and 1.24%
in 2012, to 4.44% and 1.30% in 2013, respectively.
Amounts in Thousands
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In financial year 2013, the financial margin fell by AKZ 124 million (USD 1.2 million),
registering AKZ 372.9 million (USD 3.8 million), a 25% reduction over the figure for the
previous year. The decrease was penalized by the behavior of Luibor rates that favored
the reduction of income from assets of financial instruments.
In this unfavorable context, income from Investments of liquidity decreased 25%,
followed by Income from Credit Investments with 12%, and the income from Financial
Investments with 9%. Also contributing to the unfavourable development of the margin
was the 51% increase in the costs of financial instrument liabilities, particularly the costs
of fundings with securities.
Amounts in Thousands
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The result of Financial Intermediation evidenced in the Banking Product amounted
to AKZ 2,141 million (USD 21.9 million), showing an increase of AKZ 372.1 million (USD
3.8 million) (+21%), which was largely influenced by the positive behavior of the
Supplementary Margin.
The supplementary margin totaled AKZ 1,769 million (USD 18.1 million), representing an
increase of AKZ 501.2 million (USD 5.1 million), marked by the increases in Net Sales
Commissions, with growth of 95%.
The financial Commissions totaled AKZ 423.9 million (USD 4.3 million), an increase of AKZ
206.8 million (USD 2.1 million), compared to 2012.
Notwithstanding the increase in the results from the provision of financial services (Net
Commissions), profits on financial operations (foreign exchange transactions) stood out
in the composition of the Supplementary Margin.
The results in foreign exchange transactions were AKZ 1,311 million (USD 13.4 million).
Earnings from the transactions of purchase and sale of foreign currency and the
revaluation of foreign currency position contributed in large part to the final number.
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Amounts in Thousands
Administrative and marketing costs amounted to AKZ 1,771 million (USD 18.1 million),
an increase of 11% compared to AKZ 1,588 million (USD 16.5 million) recorded in the
previous year.
In the course of 2013, there was an increase in costs associated with the growth of
human resources, closing the year with 159 workers, 29 more than in the previous year,
raising personnel costs by AKZ 146.6 million (USD 1.4 million), (+ 25%).
External Supplies and Services dropped slightly by 1%, the variation being evident in the
decreases of 80% and 68%, observed in sub-headings Penalties Imposed by Regulatory
Authorities and Other Administrative and Marketing.
Depreciation and Amortisation totalled AKZ 369.5 million (USD 3.7 million), which
represented an increase of AKZ 44 million (USD 450,2 million) compared to the previous
year.
Notwithstanding the increased
Administrative and Marketing
costs, the efficiency ratio
(cost-to-income) stood at 65%,
against 69% from the year
of 2012. The decrease from
the previous year was due to
the increase observed in the
banking activity product.
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Proposed Results Application
10
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10. - Proposed Results Application
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The Board of Directors proposes that the Net Income for the year ended December 31,
2013, in the amount of AKZ 206.5 million, equivalent to USD 2.1 million, be distributed as
follows:
The proposal for the legal reserve is based on the provisions of Art. 240 of Law No. 1/04
of 13 February and Art. 327 of the Companies Act.
The Free Reserves aim to sustain equity in accordance with the legal provisions on the
constitution of reserves for expanding the commercial network.
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Demonstrações
Financial Financeiras
Statements
11
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11. - Financial Statements
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Amounts in Thousands
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Amounts in Thousands
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Report Audit Committee
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12. - Report Audit Committee
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Bank Angolan Trade and Commerce SA
FISCAL COUNCIL
1 - In compliance with the mandate entrusted to us and in accordance with the legal provisions in force in the country, and the
Statutes of BANC-Banco Angolano de Negócios S.A., we herewith submit for your consideration our opinion on the Report of the
Board of Directors and the Financial Statements for the financial year ended December 31, 2013.
2 - The Audit Board monitored the activities of the Bank during the financial year just ended, having examined the financial
statements and obtained all the information and explanations we deemed relevant, and on that basis, we have concluded that
they were prepared in compliance with the generally accepted accounting principles set for the industry.
3 - The activities of the Bank during the financial year under review continued to be characterized by a strategy of consolidating
its hierarchical and functional structure and the development of its commercial activity, based on the implementation of the
Activity Plan and Budget related to the financial year just ended. An especially important point to note is the compliance with
notices no. 1 and no. 2 of the National Bank of Angola, which regulate the obligations of Financial Institutions under the Corporate
Governance and Internal Control System of the Bank according to schedule of actions, documents and deadlines set by the
National Bank of Angola.
5 [sic] - Based on the opinion and report of independent auditors, who report that the accounting policies and value calculation
criteria adopted for the various items of the assets, in accordance with the legal requirements set forth in the Accounting Plan for
Financial Institutions (CONTIF) and other provisions issued by the National Bank of Angola, the Audit Board grants its agreement,
so that the accounts that are presented to the Shareholders reflect the accounting entries shown on their corresponding balance
sheets and other elements that make up the Financial Statements.
5 – In light of what has been said in the previous point, the economic and financial situation can be summarized as follows:
a) - The Income Statement shows a net profit of 206,593 thousand AKZ, resulting from Operating and non-Operating Revenues of
AKZ 2,184,680 thousand and Operating and Non- Operating Costs of AKZ 1,870,212 thousand, respectively, and charges on the
current result in the amount of AKZ 107,876.
b) - The balance sheet shows total assets of AKZ 16,362,289 thousand, total liabilities of AKZ 11,705,856 thousands and Capital and
Own Funds in the amount of AKZ 4,656,433 thousand.
7 [sic] - The Audit Board noted and recommends to the General Assembly the adoption of the proposal for the application of the
net results be fully incorporated into the reserves for improvement and strengthening of Equity Capital.
6 [sic] - Therefore, based on the foregoing, it is our opinion that the Financial Statements for the year ended December 31, 2013,
represent in all materially relevant respects the financial and patrimonial position of BANC-Banco Angolano de Negócios S.A., as
of that date, and they are suitable for submission to the General Assembly for its approval.
Luanda, March 2014.
Luís Neves (Chairman)
Henrique Doroteia
João Avelino Augusto Manuel
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External Auditors Report
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13. - External Auditors Report
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UHY
A. PAREDES E ASSOCIADOS - ANGOLA
Auditores e Consultores, SA
Rua de Maculusso, 44 LUANDA — REPUBLICA DE ANGOLA Telem: +244 927 072 924 Telef: +244 227 286 319 Email: aparedes@
uhyangola.com Website: www.uhyangola.com
REPORT OF THE EXTERNAL AUDITORS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF BANC-BANCO ANGOLANO DE NEGÓCIOS E COMÉRICIO S.A.
Introduction
1. We have audited the accompanying financial statements of Banco Angolano de Negócios e Coméricio S.A (hereinafter also
referred to as “Bank" or “BANC "), which comprise the balance sheet as as at 31 December, 2013, showing a total of 16,362,289
tAKZ and own funds of 4,656,433 tAKZ, including a result 206,593 tAKZ, the profit and loss statement, the statement of changes in
equity and cash flows for the year last ended and the corresponding notes.
Responsibilities
2. The responsibility of the Board of Directors of the Bank to prepare financial statements that give a true and fair view of the
financial position of the Bank, the results of its operations, changes in their own funds and their cash flows, as well as the adoption
of adequate accounting policies and criteria and the maintenance of an appropriate system of internal control. Our responsibility
is to express an independent opinion, based on our audit of the financial statements.
Scope
3. Our audit was conducted in accordance with generally accepted auditing standards, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of materiallr relevant misstatement.
An audit includes the examination, based on samples, of the evidence supporting the amounts and disclosures in the financial
statements and the assessment of the estimates, based on judgments and criteria defined by the Board of Directors, used in their
preparation. This audit also included assessing the appropriateness of accounting policies used and their disclosure, taking into
consideration the circumstances, verifying the applicability of the going concern concept and assessing the adequacy of the
overall presentation of the financial statements. We believe that our audit provides a reasonable basis for expressing our opinion.
Reserves
4. Notwithstanding the provisions that have been made in accordance with the notice 9 of the National Bank of Angola, as well
as with the risk levels of borrowers, we believe that on a prudent and proper commercial basis, the Provision for doubtful debts
are insufficient in the amount of about tAKZ 50,000 (2012 - 35,000 tAKZ) and Provision for charges payable to staff in the amount of
around tAKZ 36,035 (2012 - 31,250 tAKZ).
Opinion
5. In our opinion, except for the effects of the matters referred to in paragraph 4 above, the financial statements referred to in
paragraph 1 above, present fairly, in all material respects, the financial position of Banco Angolano de Negócios e Coméricio S.A
on December 31, 2013, and the results of its operations, changes in their own funds and its cash flows for the year then ended in
conformity with the generally accepted accounting principles in Angola for the Banking Sector (Note 2).
Emphasis
6. Without qualifying our opinion expressed in the preceding paragraph, we draw attention to the following matter:
As described in Note 18, the tax authorities can review the tax returns for the last 5 years (10 years for Social Security). The Board
believes, however, that any adjustments that may be required will not have a significant effect on the financial statements.
Luanda, March 21, 2014
UHY - A. WALLS AND ASSOCIATES - ANGOLA ACCOUNTANTS AND CONSULTANTS, SA
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Notes to Bills
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14. - Notes to Bills
98
14.1. - Introduction
14.2. - Bases of Presentation and Summary of the Main Accounting Policies
14.3. - Adoption of CONTIF Norms
14.4. - Cash
14.5. - Applications of Liquidity
14.6. - Securities
14.7. - Credits in the System of Payments
14.8. - Credits
14.9. - Other Values
14.10. - Fixed Assets
14.11. - Deposits
14.12. - Funding for Liquidity
14.13. - Obligations in the Payment System
14.14. - Foreign Exchange Transactions
14.15. - Other Obligations
14.16. - Provisions for Probable Liabilities
14.17. - Own Funds
14.18. - Taxes
14.19. - Financial Margin
14.20. - Results from Foreign Exchange Operations
14.21. - Results from the Provision of Financial Services
14.22. - Personnel Costs
14.23. - External Supplies
14.24. - Tax and Fees Not Levied on the Results
14.25. - Other Administrative and Marketing Costs
14.26. - Other Income and Operating Costs
14.27. - Non-Operating Result
14.28. - Balace by Currency
14.29. - Off-Balance Sheet Headings
14.30. - Subsequent Events
101
102
109
111
112
112
113
114
116
117
122
123
123
124
124
125
126
127
128
129
129
129
130
130
131
131
131
132
134
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Notes to the Accounts
Amounts in Thousands
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Balance sheet as at
31 December 2013
and 2012
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Balance sheet as at 31 December 2013 and 2012
Amounts in Thousands
The accompanying notes are an integral part of these financial statements
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Balance sheet as at 31 December 2013 and 2012
Amounts in Thousands
* In 2013, this was the amount of subscribed capital paid up.
14.1. Introduction
Banco Angolano de Negócios e Coméricio S.A (hereinafter “BANC” or “BANK”, was
constituted on April 10, 2006, by Law n ° 13 / 05 of 30 September, and began its activity
on April 1, 2007. BANC is dedicated to obtaining third-party resources in the form of
deposits or other, which it applies, along with its own resources, in loans, deposits at
the National Bank of Angola, in investments in credit institutions, in the acquisition of
securities and other assets for which it is duly authorized. On December 31, 2013, the
BANC had a network of 20 branches (17 branches on December 31, 2012)
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14.2. Bases of Presentation and Summary of the Main Accounting Policies
The financial statements have been prepared on a going concern basis, based on
the books and records kept by the Bank in accordance with the accounting principles
of the Accounting Plan of Financial Institutions (CONTIF), pursuant to Instruction No.
9/2007, of 19 September, issued by the National Bank of Angola and subsequent
updates. These principles may differ from those generally accepted in other countries.
The CONTIF aims at standardizing the accounting records and financial disclosures in
an approximation to international practices, through the convergence of it accounting
principles to International Financial Reporting Standards (IFRS).
The financial statements of the Bank for the year ended on 31 December 2012 already
had the approval of the General Assembly. In regard to the financial year ended on
December 31, 2013, the financial statements have not yet been approved. However,
the Board of Directors of the bank acknowledges that they will be approved without
significant changes.
On 31 December 2013 and 2012, the the currency exchange of the Angolan Kwanza
(AKZ) to U.S. Dollar (USD) and Euro (EUR) were as follows:
The most significant accounting policies used in the preparation of the financial
statements were as follows
a) Accrual
Income and expenses are recognized on the basis of duration of operations in
accordance with the accrual-based accounting principle, operations being recorded
as they mature, regardless of when they are received or paid.
b) Foreign currency transactions and financial derivative instruments
Transactions in a foreign currency are recorded in accordance with the principles of
the ‘’multi-currency” system, each transaction being recorded against the respective
currencies. Assets and liabilities expressed in a foreign currency are converted into
Angolan Kwanzas at the average exchange rate published by National Bank of Angola
on the balance sheet date. Costs and income relating to exchange-rate differences,
actual or potential, are recorded in the income statement for the year in which they
occur, under the headings of income or costs linked to the accounts of assets and
liabilities, all with the specification “foreign exchange differences”.
As of December, 2013 and 2012, the Bank has not used financial derivative instruments.
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c) Retirement pensions
According to Law 2/2000 and Arts. 218 and 262 of the General Labour Law, the
compensation payable by the Bank in the event of termination of the employment
contract by retirement of the employee is determined by multiplying 25% of the
monthly base salary paid on the date on which the worker reaches the legal retirement
age by the number of years of seniority.
Furthermore, Law 07/04, of 15 October, which repealed Law 18/90 of 27 October,
regulating the social security system of Angola, provides for the award of retirement
pensions to all Angolan workers enrolled in Social Security. The value of these pensions
is calculated using a table proportional to the number of years of work, applied to the
average gross monthly salary received in the pay periods immediately preceding the
date on which the employee ceases his duties. According to the Decree 7/99, of 28
May, the contribution rates for this system are 8% for the employer entity and 3% for
workers.
Starting in 2013, BANC had an actuarial study made by an independent entity, in
order to quantify the amount of liability for past services on the date of December
31, 2013.
d) Credits
The credits granted to customers are initially recorded at their nominal value.
The interest component is given a separate autonomous accounting entry on the
corresponding income statements. Revenues are recognized when obtained and
distributed by monthly periods, according to the pro rata temporis rule, when dealing
with operations producing residual flows over a period greater than one month.
Subsequently, the loans granted to customers, including guarantees and sureties
given are subject to provisioning, according to the National Bank of Angola Notice
no. 4/2009, of 20 May, which revoked Notice n.9/2007, of 12 September, on the same
subject, and other instructions and applicable standards.
Allowance for doubtful debts
Provisions for doubtful debts are reviewed monthly depending on the time elapsed
since the date of default, the minimum provisioning levels being calculated according
to the following table:
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The classification of credit operations for the same customer or economic group is
given in the class that presents the highest risk.
For same client operations, with liabiliities under mAKZ 1.000, at the time of the granting
of credit risk level classification B is adopted.
For credit granted to customers for periods greater than two years, the time elapsed
since the entry into default is double that of the time period indicated above.
Six months after the classification of an operation in Class G, the Bank writes off these
credit from the assets and uses the respective provision. Additionally, these credits
remain recorded in an off-balance sheet heading for a minimum period of ten years.
In situations in which there credits are recovered tht have been previously written off
in the Assets by the use of provisions, the amounts received are recorded under the
heading of “non-operating income”
Operations that are subject to renegotiation are kept, at least, at the same level of risk
in which they are classified.
The reclassification to a lower risk class occurs only if there is a regular and significant
amortisation of the operation. Gains or profits resulting from the renegotiation are only
recorded upon effective receipt.
Own property:
50
Years of useful life
e) Intangible and tangible fixed assets
Intangible assets correspond mainly to the costs of acquisition and development
of software used in data processing, the inherent spending on the constitution,
organization, restructuring, modernization and/or expansion of the Bank and to
the works carried out in rented buildings. These expenses are recorded at cost and
amortized using the straight-line method over a period of three years, with the exception
of the works carried out in rented buildings, which are depreciated according to the
expected duration of the lease or the useful life of the works, if less.
Tangible fixed assets are recorded at cost of acquisition. Depreciation is calculated
using the method of constant share at the maximum rates allowed as costs for tax
purposes in accordance with the Corporate Tax Code, which corresponds to the
following years of estimated useful life:
f) Provision for holiday allowance
The General Labor Law, which went into effect on
December 31, 2011, provides that the amount of
vacation allowance payable to workers in a given
year is a right acquired by them in the previous year.
Consequently, at the end of the financial year the
Bank enters on the books the value of vacation
allowance payable in the following year (Note 15).
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g) Portfolio of securities
The Board of Directors of the Bank determines the classification of its investments at
initial recognition. Given the characteristics of the securities and the intention at the
moment of purchase, all securities of the Bank on December 31, 2013 are classified as
held to maturity.
Securities held to maturity
Securities considered to be held to maturity are those acquired for the purpose of
keeping them in the portfolio until maturity, provided that the financial capacity of the
Bank so permits.
Securities held to maturity are recorded at cost, plus their income over the life of
the security, recognizing any profits or losses incurred on the date of maturity by the
difference between the actual sales price and the book value.
The Central Bank securities are issued at a discount and recorded at their acquisition cost.
The difference between this and the nominal value, which is the Bank’s remuneration
is recorded as income over the period between the purchase date and the maturity
date of the securities on own account with the specification “Income receivable”.
‘‘Sales of own securities
with repurchase
agreement’’
Securities sold to customers under repurchase agreements continue to be recognized in
the Bank’s securities portfolio and the amount of the repurchase recorded under “Sales
of own securities with repurchase agreement”. The difference between the value of
the repurchase contract and its sale value is recorded under the heading referred
to earlier with the specification “Costs payable”. The Treasury bonds purchased at a
discount are recorded at their acquisition cost.
The difference between the acquisition cost and the nominal value of these securities,
which corresponds to the discount at time of purchase, is recognized over the life of the
title under its own heading with the specification “Income receivable”.
The Treasury Bonds issued in national currency indexed to the exchange rate of the
U.S. Dollar are subject to exchange rate adjustments. Thus, the result of the exchange
rate adjustment of the nominal value of the bond, the discount and accrued interest is
reflected in the income statement in the year they occur (Note 6).
The Treasury Bonds issued in national currency indexed to the Consumer Price Index
(CPI) are subject to the adjustment the nominal value of the bond in accordance with
the variation of the above index. Thus, the result of this adjustment of the face value
and the accrued interest is reflected in the profit and loss statement in the year they
occur. On December 31, 2013 and 2012, the Bank did not hold Treasury Bonds indexed
to the CPI in its portfolio.
h) Financial fixed assets
Financial fixed assets are recorded at cost of acquisition. When these are denominated
in foreign currency, they are subject to exchange rate adjustments. Whenever their
net convertible value is estimated to result in permanent losses, the corresponding
provisions are constituted.
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i) Industrial Contribution
The Bank is subject to pay Industrial Tax, being fiscally considered a contributor in Group
A. The taxation of its income is carried out under Art. 72(1) and (2) of Law no. 18/92, of
3 July, with an applicable tax rate of 35%, pursuant to Law no. 5/99, of 6 August (Note
18). The Angolan tax law allows tax losses can be utilized for a period of up to 3 years.
On December 31, 2013, the Bank did not have tax losses to be recovered.
j) Policies for risk management and limits of authority defined
The Bank actively participates in monetary, exchange rate and secondary securities
markets, as well as in attracting time deposits. In general, performing any operations in
these markets will have as its main objectives:
Ensure adequate levels of liquidity for the Bank;
Adequately manage the risks associated with the activity of the trading room;
Maximize income from the monetary assets available in the Bank;
The minimization of costs associated with the Bank’s funding;
The satisfaction of customer needs, as well as those resulting from the exercise of the remaining operations of the Bank;
Maximize Foreign Exchange profits.
The Bank’s Executive Committee authorizes, within the normal limits of prudence, the
department of Cash and Markets to incur the risks resulting from the taking of positions,
framed in an active, efficient and cost-effective policy, in order to serve the customers
of the Bank, operating in a professional manner in the financial centers in which it
operates.
The taking and maintaining of risk positions has as its main guideline the search for
market opportunities, given its constant evolution, said positions to be short term,
and communicated to the Chief Financial Officer (DIF) and the Director of the Board
responsible for that area, when they are at a longer term.
Foreign Exchange risk
The Bank incurs this risk resulting from maintaining a certain open position in foreign
currency, because any adverse changes in market exchange rates may cause
potential or actual losses.
In this case, the Bank considers as an open position any situation in which the overall
outstanding liabilities of the Bank in a given currency are not equal to the total amount
that the Bank records as receivables in that currency.
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Interest Rate Risk
The Bank incurs this risk resulting from adverse changes in interest rates and,
concomitantly, in the premiums or discounts of the forward foreign exchange of the
currencies concerned. This risk arises from the mismatch of maturities of the receipts
and payments in a certain currency, increasing the growth of the gap - the difference
between total receipts and total payments falling due during the period.
Liquidity risk
the Bank incurs in this risk if it does not present the means of appropriate coverage
to cope with situations of lack of liquidity at a given time, making it impossible to
obtain resources needed to cover its applications and therefore unable to honour its
commitments. Such situations of illiquidity can be eliminated through the use of special
credit lines, particularly in taking liquidity in the money market.
Operating risk
The Bank incurs this type of risk as a result of abnormal internal situations. For example,
at the level of the trading room, the following situations are frequent:
Failure to comply with limits;
Improper conduct of operators in regard to the market rules;
Poor analysis and understanding of the market (even operating within limits);
Incorrect or incomplete completion of data of the negotiation;
Incorrect or incomplete registration of the control maps of the position;
Emergency situations, such as power failure, system failure, fire, etc...
Credit risk
This corresponds to the risk that the Bank incurs due to the breach of the obligations of
the counterpart. The Bank considers three different subtypes of credit risk:
Marginal credit risk - Due to the financial inability of the counterpart to deliver the countervalue and currency of the exchange
transaction on the date set for that purpose;
Capital Credit risk - Case in which on the date of implementation of the contract, the counterparty does not deliver the funds to
the Bank, leaving the bank with a loss equal to the total value of the contract;
Financial credit risk – Cases in which the debtor cannot settle any loan upon maturity, which could cause a loss equal to the
sum of the outstanding principal with the interest of its financial coverage.
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Credit risk of the counterpart country
This corresponds to the risk that the Bank may incur as a result of non-payment of its
credits by imposition of the sovereign power of the debtor country, due to the country
being in a situation of political and / or economic instability; due to the possibility
of nationalization of the Bank’s assets; due to the conditions at the level of foreign
exchange control regulations or other situations that may jeopardize their commitments.
i. Trading Limits
Relating to the risks arising from maintaining open
positions in foreign currency, resulting from the
mismatch of the maturity dates of receipts and
payments, as well as overtrading.
All positions of foreign exchange risk assumed by the Trading Room should be short
term, and Chief Financial Officer (DIF) and the Director of the Board responsible for that
area are to be informed, whenever such positions remain for deadlines longer than one
week and two weeks, respectively. The Trading Room keeps a duly updated record
especially for the purpose, which contains all the situations when trading limits are
exceeded, as well as the respective authorizations, for which the Executive Committee
of the Bank is solely competent.
The Bank has defined as main types of Trading Limits as follows:
Limit for open foreign exchange position at the end of the day;
Limit for open foreign exchange position during the day;
Overall limit for open foreign exchange position;
Overall limit for open foreign exchange position during the day;
Maximum overall trading limit for business transacted on the day;
Aggregate maximum limit (mismatched position limit);
Maximum loss limit (stop loss limit);
Monthly loss limit (monthly loss limit).
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ii. Credit Limits
Refers to risks related to the ability and willingness of
the counterpart to fulfill all the contracts.
It is the responsibility of the Trading Room to monitor both the overall risk positions of the
Bank with domestic and foreign entities, and exercise the necessary supervision and
control to ensure that credit limits are not exceeded.
It is the exclusive responsibility of the Executive Committee to authorize the surpassing
of these limits, with delegated powers up to a certain percentage of excess, according
to the following hierarchical levels:
Chief Financial Officer (DIF), up to a maximum of 25% of the limit;
Director of the Board responsible for that area, up to 30% of the limit;
The Executive Committee (at least two directors) over 30% of the limit.
The Bank has defined the main types of Credit Limits as follows:
Foreign exchange limit (Forex limit);
Money Market Limit;
Maximum total of outstanding credit (Total credit limit).
14.3. Adoption of CONTIF Norms
The main changes to CONTIF in fiscal year 2010 compared to the previous PCIF can be
summarized as follows:
a) Securities
The CONTIF provides for the classification of securities into three distinct categories:
available for sale, available for trade and held to maturity.
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The classification as available for sale and for trading provides that securities are
recorded at fair value, and in the case of available for sale the change in fair value
is recorded as a capital contribution and in the case of securities for trading, their
revaluation would be registered in the results.
The classification of securities in the portfolios above assumes that the Bank defines
models for the valuation of securities. Thus, the impact of transition of this change would
be the correction of the fair value of the securities on the opening date, i.e., January
1, 2010.
In regard to the portfolio of securities held to maturity, this is not subject to valuation at
fair value. The registration of securities in this category is made at acquisition cost plus
the possible future income generated at the maturity of the securities. In this context,
the classification in this category does not require that the adjustments at transition are
recorded, only reclassifications between assets and liabilities.
Given the characteristics of the securities that make up its portfolio and considering the
adopted investment policy (Note 2 j) the Bank considered that the most appropriate
rating for its bonds and securities would be held to maturity.
b) Revaluation of property for own use
The CONTIF provides for the revaluation of properties for own use at their fair value.
However, the Notice no.11/07 of the National Bank of Angola regulating the revaluation
of properties for own use, states that it is optional and takes precedence over new
accounting standards. Since the Bank has no own-use real estate, only owning leased
buildings, there were no transition adjustments arising from the possibility of change in
this accounting policy.
c) Taxes
The CONTIF provides for the accounting recognition of tax on profits in the same period
and in a manner consistent with the recognition made to the operations related to
them, that is to say, in the case of operations registered as a counterpart to own funds,
the registration of the respective tax shall also be registered as a counterpart to own
funds, in the case of operations registered as a counterpart of results, the registration of
the tax will be made as a counterpart of results.
The new accounting principles require the recognition of deferred tax assets and
liabilities when there are differences between the book value of an asset or a liability
and the tax base for tax purposes. In the case of the Bank, deferred taxes to be
recorded would result from the following situations:
A revaluation of assets at fair value (bonds and securities and property for own use) or
the effect of accounting changes.
However, as the Bank opted for the registration of securities in the portfolio held to
maturity and since the Bank has no own-use real estate, these facts imply that at
the date of transition there were no deferred taxes to be recorded. Additionally, on
December 31, 2013 and 2012, there are no situations that generate deferred taxes.
Bonds and
securities and
property for
own use
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d) Provisions and Contingencies
According to CONTIF a provision should be recognized only when there is a legal
obligation or one not formalized, at present, as a result of a past event, the requirement
of resources to settle the obligation is probable and the amount of the obligation can
be reliably estimated.
The adoption of this standard did not cause any impact on the financial statements in
the Bank at the date of transition.
14.4. Cash
On December 31, 2013 and 2012, this heading consists of:
Sight deposits at the National Bank of Angola (BNA) in national currency are designed
to fulfill the provisions in force for the required maintenance of reserves and are not
remunerated.
According to Instruction no. 03/2013 of 1st July, the BNA has set the conditions for
calculation of reserve requirements by all commercial banks under the supervision of
the National Bank of Angola.
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14.5. Applications of Liquidity
This heading corresponds to short-term applications in the market and on December
31, 2013 and 2012 is as follows:
On December 31, 2013, the balance is related to an intake of funds in the last days of
December 2013.
14.6. Securities
On December 31, 2013 and 2012, this heading consists of:
On December 31, 2013
and 2012, the securities
in portfolio were issued
by the Republic of
Angola and the National
Bank of Angola, so that
they were classified as
no risk (level A).
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14.7. Credits in the System of Payments
On December 31, 2013 and 2012, this heading consists of:
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14.8. Credits
On December 31, 2013 and 2012, this heading consists of:
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On December 31, 2013 and 2012, the Bank’s largest customer represented 13% and 16%
of its total loan portfolio, respectively. Additionally, all ten largest customers of the Bank
represented approximately 61% and 66% respectively of its total loan portfolio.
On December 31, 2013 and 2012, the composition of the loan portfolio for operating
modalities, excluding interest receivable, was as follows:
On December 31, 2013 and 2012, the breakdown by currency of loans granted was as
follows:
On December 31, 2013, the renegotiated loans amounted to
1,473,275 tAKZ
On December 31, 2012, the renegotiated loans amounted to
512,901 tAKZ
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14.9. Other Values
On December 31, 2013 and 2012, this heading consists of:
On December 31, 2013 and 2013, the balance of the heading:
Other values - Advances to suppliers
Corresponds mainly to advances made by the Bank in
connection with the construction of the future headquarters in
the Comandante Gika undertaking.
The heading Other
Deferred costs includes a balance of 531,465 tAKZ related to
the parameterizationof the Financa application, which will be
settled in 2014
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14.10. Fixed Assets
Financial assets
This heading consists of a share of 2.88% (3,560 shares) in the share capital of Emis –
Empresa Interbancária de Serviços, S.A.R.L., (corresponding to an equal percentage
of voting rights) whose activity consists in the installation and management of
infrastructures and support technology for the payment system, as well as providing
services related to the electronic systems for the domestic and international payments.
The latest financial data available from EMIS reported as at December 31, 2012 were
as follows:
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Intangible, tangible and ongoing fixed assets
The transactions in the headings of intangible, tangible and ongoing fixed assets during the financial years
ended December 31, 2013 and 2012 were as follows:
The construction in progress relates to investments in new branches of BANC.
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14.11. Deposits
During the years ended December 31, 2013 and 2012, these captions were as follows:
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On December 31, 2013 and 2012, time deposits from customers, have the following structure by currency
and average interest rate:
On December 31, 2013 and 2012, sight deposits are not remunerated, except for some specific situations
defined according to the guidelines of the Board of Directors of the Bank.
14.12. Funding for Liquidity
On December 31, 2013 and 2012, this heading consists of:
14.13. Obligations in the Payment System
On December 31, 2013 and 2012, this heading consists of:
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14.14. Foreign Exchange Transactions
On December 31, 2013 and 2012, this heading consists of:
14.15. Other Obligations
On December 31, 2013 and 2012, this heading consists of:
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14.16. Provisions for Probable Liabilities
On December 31, 2013 and 2012, this heading consists of:
The transactions in the heading of provisions for the years 2013 and 2012 was as follows:
Regarding the provision for retirement and survival pensions (tAKZ 10,642), BANC had
an actuarial study made by an independent entity, in order to quantify the amount of
liability for past services on the date of December 31, 2013.
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14.17. Own Funds
2012
Increase the
share capital
tKAZ 3.250.000
Corresponding to
32.500 new shares with
a nominal value of
tAKZ 100
Share Capital
The Bank was incorporated with a capital of tAKZ 405,000, represented by 5,000 shares
with a nominal value of tAKZ 81 each, which was fully subscribed and paid up in cash.
During financial year 2008, the Bank increased its capital by tAKZ 525,000 fully paid up
in cash, then being represented by 12,000 shares, divided into 5,000 shares of tAKZ 81
and 7,000 shares of tAKZ 75 each.
At the General Meeting of Shareholders held on June 4, 2009, the Bank approved a
new capital increase in the amount of tAKZ 820,000, represented by the issue of 10,000
new shares with a nominal value of 82 AKZ, fully subscribed by the shareholders in the
percentages their shareholding in the Bank, which on December 31, 2009, was partially
paid up. This capital increase was approved by the National Bank of Angola on January
18, 2010, as mentioned in the letter 2097/DSI/2010 the same date.
Additionally, according to the communication 1083/DSI/2009 of December 30, 2009,
of the National Bank of Angola, while the formalization process and approval of such
capital increase is underway, the amount of tAKZ 820,000 should be entered under the
heading “Reserves and funds”.
On December 31, 2011 and 2010, there were no differentiated rights with respect to
shares representing the share capital of bank.
In 2012 a capital increase on the order of tAKZ 3,250,000 was discussed and approved,
represented by the issue of 32,500 new shares with a nominal value of 100 tAKZ.
With this increase the share capital amounts to 5,841,600 tAKZ corresponding to 62,916
shares. On December 31, 2013 and 2012, the shareholder structure of BANC is as follows:
As at December 31, 2013, the amount of 1,532,177 thousand Kwanza was still not paid up by shareholders.
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In compliance with the provisions of Art. 146(3) of Law No. 1/2004 of 13 February,
which frames the Companies Act, which includes the requirement that members of
the administrative and supervisory bodies of public limited companies disclose the
number of shares and bonds they hold, we present the portion of share capital held by
members of the governing bodies:
On December 31, 2013 and 2012, earnings per share are tAKZ 3,283 and tAKZ 0,732,
respectively.
Legal reserve
Under current law, the Bank must constitute a legal reserve fund up to the amount of
its share capital. To this end, each year at least 20% of the net profit of the previous
financial year is transferred to this reserve. This reserve can only be used to cover
accumulated losses, if other reserves are exhausted.
14.18. Taxes
The Bank is subject to pay Industrial Tax, being fiscally considered a contributor in
Group A. The taxation of its income is carried out under Art. 72(1) and (2) of Law no.
18/92, of 3 July, with an applicable tax rate of 35%, pursuant to Law no. 5/99, of 6
August.
On December 31, 2013 and 2012, the reconciliation between accounting profit and the profit for the purpose of determining
the industrial tax can be detailed as follows:
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The income from government securities obtained in Treasury Bonds and Treasury Bills
issued by the Angolan State and covered by the Regulatory Decrees 51/03 and 52/03
of 8 July, are tax exempt. This fact is complemented by Art. 230(1)(c) of the Industrial
Tax Code, which expressly states any revenues from government securities are not to
be considered as income for the purposes of determining the corporate income tax
due. Thus, in determining taxable profit at 31 December, 2013 and 2012, these revenues
were deducted from the gross income of the financial year.
The tax authorities have the right to review the tax situation of the Bank for a period
of five years, which may result in some adjustments to the taxable income of financial
years 2009 to 2013, due to different interpretations of tax law. The Board of Directors of
the Bank believes that any additional payments that may result from these reviews will
not be significant to the attached financial statements.
14.19. Financial Margin
During the years ended on 31 December, 2013 and 2012, these headings were as
follows:
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14.20. Results from Foreign Exchange Operations
In the financial years ended on 31 December, 2013 and 2011, these headings were as
follows:
14.21. Results from the Provision of Financial Services
In the financial years ended on 31 December, 2013 and 2012, these headings were as
follows:
14.22. Personnel Costs
In the financial years ended on 31 December, 2013 and 2012, this heading consists of:
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14.23. External Supplies
In the financial years ended on 31 December, 2013 and 2012, this heading consists of:
During the financial years ended on 31 December, 2013 and 2012, the heading “Rents”
includes mainly rental costs for branches of the Bank.
14.24. Tax and Fees Not Levied on the Results
In the financial years ended December 31, 2013 and 2012, this heading consists of:
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14.25. Other Administrative and Marketing Costs
During the financial years ended on 31 December, 2013 and 2012, this heading consists of:
14.26. Other Income and Operating Costs
During the financial years ended on 31 December, 2013 and 2012, these headings were as follows:
14.27. Non-Operating Result
During the financial years ended on 31 December, 2013 and 2012, these headings were as follows:
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14.28. Balace by Currency
On December 31, 2013 and 2012, the balances by currency the Bank had the following structure:
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14.29. Off-Balance Sheet Headings
On December 31, 2013, these items are as follows:
The guarantees and sureties provided are banking operations that do not involve the
mobilizing of funds by the Bank, being related to guarantees provided to support import
operations and the performance of contracts by customers of the Bank. Guarantees
given and commitments assumed represent amounts that may be payable in the
future.
Open documentary credits are irrevocable commitments by the Bank on behalf of
its customers to pay/order to pay a certain amount to a supplier of a given good or
service within a stipulated time, against the presentation of documents for shipping the
good or providing the service. The condition of irrevocability means that it cannot be
changed or canceled without the express agreement of all parties involved.
Despite the characteristics of these contingent liabilities and commitments, the
analysis of these operations follows the same basic principles of any other commercial
operation, specifically the solvency of both the customer and business underlying them,
as the Bank requires that these operations are collateralized when needed. Since it is
expected that the majority of them expire without being used, the amounts shown do
not necessarily represent future cash requirements.
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14.30. Subsequent Events
Between 31 December 2013 and the date of approval of the financial statements there
were no major events that influenced the position and the results of the Bank.
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www.banc.co.ao
BANC- Banco Angolano de Negócios e Comércio, SA
BANC- Banco Angolano de Negócios e Comércio, SA
Escritório de Representação em Portugal
Travessa da Sorte, n.º12
Maianga - Luanda
Angola
Avenida da Liberdade, n.º252 - 1º
1250-149 Lisboa
Portugal
Tel.00244 222 395 026
Fax.00244 222 391 059
[email protected]
Tel.00351 210 962 288
Fax.00351 215 932 753
[email protected]