· Economy&Business · 26 October 2022 · T. Editorial Team · P. Rights Reserved

Luís Roberto Gonçalves

"I have strived, in a very positive way, to view ‘threats’ as an opportunity”

The pandemic marked his first year as CEO of BFA. Nothing that would make him any different from what he is: resilient. Luís Roberto Gonçalves is the first Angolan to head this bank, an institution he knows well, as it was here that he began his banking career, in 1996, having held important positions in the organisation he now heads. He has a degree in Management Accounting from the Lusíada University of Angola, and a post-graduate degree in Monetary and Financial Economics from the University of Évora, Portugal. Career highlights include training in the Prevention of Money Laundering and Combating the Financing of Terrorism and Sanctions by PricewaterhouseCoopers (PWC).

You took the helm of BFA in the middle of the pandemic. What has it been like for you to tackle this major professional challenge?
The COVID-19 pandemic was completely unexpected, I would say that it caught us totally off guard. In our country, in which we were already experiencing an unfavourable macroeconomic context, having to deal with a pandemic, with a great capacity for contagion and fatality, required a great deal of effort, both financial and organisational. Given all the constraints we are going through, only with a great capacity for adaptation and resilience has it been possible to manage this crisis. I have strived, in a very positive way, to view‘threats’ as an opportunity to innovate, turning them to the advantage of the bank and our customers. In this regard, I hope to be able to continue to contribute, in the coming years, to the growth and advancement of this great institution, whose cause I have embraced since 1996.

Has the bank been able to provide effective answers to the needs required by the market?
I would like to believe it has. Our teams are committed every day to serve our customers with excellence and I am convinced that it was for this reason that, at the end of 2021, more than 173,600 new customers reaffirmed their confidence in the BFA brand.BFA maintains its commitment to the universality and versatility of its business, while boasting a range of products and services which allows it to meet the different needs and expectations of its customers. The commitment to digitalisation and technological transformation are fundamental to make this goal a reality. The technological developments that we are implementing, whether in terms of improving our internal processes or the way we reach our customers in formats other than face-to-face, in my opinion, will significantly improve the process of opening accounts and managing customers.

"Only with a great capacity for adaptation and resilience has it been possible to manage this crisis”

In your opinion, given the current national and international situation, how do you envisage the economic and financial situation for the country over the next two years?
My outlook is positive because there are several indicators that support it. The price of oil is supporting the state’s budgetary position, enabling various investments to be resumed. At the same time, the increase in foreign currency revenues has allowed the Kwanza to strengthen and inflation to be contained, which could be a good stimulus to private consumption. In addition to these more immediate issues, there is a series of reforms that are beginning to bear fruit in the field of economic diversification, which can be seen in the performance of non-oil sectors, of which we can highlight agriculture.

From January next year, banks will no longer be able to trade directly on the stock exchange. How is BFA preparing itself to continue to be a major player in the secondary market?
Currently, banks manage their own portfolios, so they have their investments in the capital market and also have the component of consultancy or making public debt available to customers. However, it is expected that, as the market evolves, the regulators will want to separate bank business (business involving the bank’s own portfolio) from the business that the bank has with its customers. It was for this reason that they decided that at the end of this year banks will no longer be able to participate directly in the market on both fronts.
Given that BFA aims to continue to play an important role in the secondary market, we will adapt to the rules defined by the regulators to continue operating in the secondary market, which may imply the creation of a securities distribution company, which will deal directly with our customers.The bank will continue to be an important partner both for small savers, so that they may have savings alternatives other than term deposits, and for companies that have debt securities, because for many years it was the payment model that the state adopted to pay debts to its suppliers. I would say that the bank’s role was fundamental for the country to have the secondary market it has today, which works, which has much more liquidity in the market, and which has a growing volume of business. This segment remains strategic for the bank’s business.

Why can investing in corporate debt be a safe bet?
In my opinion, as with the public debt market, investing in corporate debt may be an excellent option for diversifying customers’ portfolios.Initially, we had few transactions in the public debt market. It was the state and a few players. Today, we have private individuals, people who make their investments with small amounts, which means that, as far as corporate debt is concerned, I think that this is the way forward, opening up so that the first deals can be made.We are advising IGAPE (Instituto de Gestão de Ativos e Participações do Estado) in the Sonangalp privatisation process; it’s not on the debt issuance side, but it is on the equity side and therefore it is a front.I firmly believe that this new segment has gained new momentum and will certainly have huge room for improvement in the coming years. For this reason, we have maintained a permanent dialogue with partners who are intending to issue corporate debt.

"The bank’s role was fundamental for the country to have the secondary market it has today”

In March, BFA Gestão de Ativos launched the first investment fund to be admitted and traded on the Stock Exchange segment of the Investment Units Market. What will the creation of this fund represent for the modern financial market?
The launching of this fund represents the free trading of Units in a Stock Exchange environment just like shares and strives for the maximum current yield, consistent with the preservation of capital and daily liquidity. The fund provides its participants with a true investment alternative in Kwanzas, diversifying their portfolios with increased profitability.Being the first fund in Angola launched in partnership with BODIVA, it allows, on the one hand, the activation of the Unit segment of the Stock Market (MBUP) and, on the other hand, it affords all commercial banking customers the possibility of trading Units on the Stock Market. This option is a great alternative for obtaining immediate liquidity, encouraging the promotion of attracting investment to boost the diversification process of the Angolan economy.

BFA was the most profitable banking institution in 2021, with a net result of Kz 153.8 billion (USD 295 million), growing 46% in relation to the third quarter of the previous year. To what was this success due?
The bank’s financial performance is the result of the excellence and effort of our most valuable asset, our employees, who embraced countless challenges throughout the year that enabled BFA to fulfil its mission with its customers and other stakeholders. I would say that increasing the bank’s profit by 74.2%, when compared to 2020, was excellent team work.
In 2021, BFA maintained its commitment to the universality of its business, offering products and services which enable it to meet the needs and expectations of its customers. For this reason, in 2021, BFA was market leader in the following business areas. In offeringpayment methods, with a 21.6% market share in debit cards, representing a total of 1,441,548 cards. The number of POSs, in turn, grew significantly compared to 2020, reaching a total of 30,483 POSsregistered, representing a market share of 20.1%. The improvements we have seen in the foreign exchange market have enabled us to reinforce the number of international credit cards issued, having reached 29,274 cards at the end of the year.
In the choice of savings and investment products: within this scope, through ‘BFA Gestão de Ativos’, the bank has provided the market with seven more securities investment funds, and by the end of the year reached a total of AOA 196 billion of assets under management;
In the provision of Public Debt Securities (Secondary Market): of the total business carried out in 2021, BFA achieved a participation share of more than 55.3% and a share of 29.4% when analysing the actual business amount. At the end of 2021, BFA had 13,926 active accounts opened within the BODIVA Central Securities Depository (CEVAMA), which represents a growth of 48.5% and a share of 55.7% of the total number of CEVAMA accounts.
2021 was also a very good year in terms of attracting customers. With all the actions we have been developing, whether commercial actions to private individuals or companies, we were able to see the number of customers grow in a very interesting way.We kept up and reaffirmed our commitment to future generations. Thus, in 2021, the bank sought to create a positive impact towards a more promising and sustainable future for all the stakeholders we work with and for Angola in general. Within this scope, BFA supported various initiatives, aligned with the sustainable development goals (SDGs) of the United Nations, with the purpose of contributing to the eradication of poverty, promoting health, education and improving the living conditions of Angolan children and their families, of which we highlight the following contribution: 20 more initiatives implemented; 44,000 more children benefited from BFA initiatives; 80,000 more Angolans had access to drinking water, and AOA 22.6 billion donated to finance initiatives with social impact.

"Increasing the bank’s profit by 74.2%, when compared to 2020, was excellent team work”

In March, BFA Gestão de Ativos launched the first investment fund to be admitted and traded on the Stock Exchange segment of the Investment Units Market. What will the creation of this fund represent for the modern financial market?
The launching of this fund represents the free trading of Units in a Stock Exchange environment just like shares and strives for the maximum current yield, consistent with the preservation of capital and daily liquidity. The fund provides its participants with a true investment alternative in Kwanzas, diversifying their portfolios with increased profitability.Being the first fund in Angola launched in partnership with BODIVA, it allows, on the one hand, the activation of the Unit segment of the Stock Market (MBUP) and, on the other hand, it affords all commercial banking customers the possibility of trading Units on the Stock Market. This option is a great alternative for obtaining immediate liquidity, encouraging the promotion of attracting investment to boost the diversification process of the Angolan economy.

26 October 2022

T. Editorial Team