ANNUAL REPORT 2015 - Banco Millennium Atlântico r "//6"- 3&1035 r Contents 5 5 Message of the Chief Executive Officer 6 Main Highlights 7 Key Indicators 8 Executive Committee

REPORTANNUAL 2015

ANNUAL REPORT MILLENNIUM ANGOLA 2015

CONTENTS

ANNUAL REPORT2015

2015 Contents 5

5 Message of the Chief Executive Officer

6 Main Highlights

7 Key Indicators

8 Executive Committee

9 Shareholder Structure and Governing Bodies

10 Economic Environment

20 Regulatory Changes to the Financial System

24 Business Summary

38 Distribution Network

46 Financial Statements

51 Notes to the Financial Statements

93 Proposed Appropriation of Net Income

94 Independent Auditors' Report

96 Opinion of the Supervisory Board on the Account of 2015

CONTENTS

MESSAGE OF THE CHIEF EXECUTIVE OFFICER

ANNUAL REPORT2015

2015 7

MESSAGE OF THE CHIEF EXECUTIVE OFFICER

Throughout 2015 and in the wake of the constraints of the economic context of 2014, the Angolan economy

was severely affected by the sharply declining price of the barrel of oil in international markets and, consequently,

by the lack of foreign currency to fund imports, on which Angola is heavily dependent. This scenario has made

it very clear that there is an imperative need for economic diversification, in order to facilitate the business

environment and attract direct investment towards other activity sectors, outside the petroleum sector, which

shall boost the Angolan economy in the medium term.

The fall in the price of oil significantly reduced fiscal revenue and the obtaining of foreign currency. This evolution

particularly constrained private consumption and public investment, and contributed to the GDP growth rate

having shifted from 4.8% in 2014, to 3.5% in 2015, according to IMF forecasts. In this environment, the kwanza

devalued sharply and the inflation rate exceeded 14%, imposing the need for a more restrictive monetary policy.

In 2016, the IMF expects that the GDP growth rate should continue at 3.5%, supported by the effects of the

policies which have been progressively adopted with a view to reducing dependence on the petroleum sector

and assuring a greater diversification of economic activity.

In 2015, Banco Millennium Angola opened 2 Branches and 1 Prestige Centre, thus holding a network, as

at 31 December 2015, of 89 Retail Branches, of which 54 are open every Saturday morning, 13 Prestige

Centres and 8 Business Centres, of which 2 are dedicated to the oil industry, amounting to a total of 110

Customer attendance points by the end of 2015.

As a result of the expansion of the network and the increasingly higher penetration rate in the market by the

oldest Branches, the number of Customers grew by 12% in relation to the previous year.

The net income of Banco Millennium Angola stood at 6,760 million kwanzas in 2015, corresponding to 18%

more than the previous year. This figure was influenced by the positive evolution of net operating income, in

spite of the growth of operating costs (derived from inflation, exchange rate devaluation and wage revision) and

provisions.

Net operating income increased by approximately 38% compared to 2014, driven by the performance of net

interest income and the earnings from financial transactions, which recorded growth rates of 28% and 121%,

respectively.

The return on average equity (ROAE) stood at 17.0% in 2015 (16.1% in 2014), and the solvency ratio as at 31

December 2015 was 13.7% (-0.1 p.p. compared to 31 December 2014). The coverage ratio of loans overdue

by more than 90 days by provisions evolved to 267%, as at 31 December 2015, compared to 196%, as at 31

December 2014.

During 2015, BMA's staff grew by 7.2%, shifting from 1,143 Employees in 2014 to 1,225 Employees in 2015,

which implied an increase of 82 new Employees, with the proportion of Angolans in the staff remaining stable,

at around 98%.

The Talent Management and Retention Policy included two new Programmes for Development of Skills –

Millenniuns High Potential, held in collaboration with Universidade Católica de Lisboa, and People Grow (junior

Employees aged below 35 years old with potential and employed for less than 2 years).

Throughout 2015, 161 training actions were carried out, corresponding to 4,017 training hours, with natural

focus on contents directed at duties of the Commercial Area, covering all the essential aspects for a good

performance of daily activities, both from the technical and behavioural point of view.

Finally, and as usual, my sincere gratitude is extended to all the Employees for the effort, dedication and care with

which they dealt with the challenges faced in 2015. A special acknowledgment is also made of our Customers

for the preference and confidence that has been unfailingly demonstrated and for the privilege of serving them,

with the assurance of BMA's commitment to continue to endeavour towards the continuous and sustained

improvement of the quality of the service provided.

My sincere thanks to all.

Chief Executive Officer

8 2015

MAIN HIGHLIGHTS

NET INCOME

6,760million AOA

RETURN ON AVERAGE EQUITY

(ROAE)

17.0%

COST-TO-INCOME

45.8%

SOLVENCY RATIO

13.7%

NUMBER OFCUSTOMERS

597,263

NUMBER OFEMPLOYEES

1,225

NUMBER OF BRANCHES, BUSINESS CENTRES

AND PRESTIGE CENTRES

89+8+13 =110

TOTAL CUSTOMER FUNDS

249,111million AOA

GROSS CREDIT

146,936million AOA

2015 9

KEY INDICATORS

KEY MANAGEMENT INDICATORS2015

(Million 2014

(Million AOA) Change %

2015(Million

2014(Million USD)(*) Change %

BALANCE SHEET

Total net assets 244,669 40% 2,378.6 7%

Loans to Customers (gross values) 125,542 17% 1,220.5 -11%

Loans to Customers, net of provisions 117,748 13% 1,144.7 -14%

Total Customer funds 180,900 38% 1,759.0 5%

Total net loans/Customer resources 65.1% -11.5 p,p, 65.1% -11.5 p,p,

Net worth 38,092 18% 369.9 -10%

Solvency ratio 13.8% -0.1 p,p,

PROFITABILITY

Net operating income 19,354 38% 196.9 13%

Operating costs 9,815 25% 99.9 3%

Provisions 2,705 148% 27.5 103%

Industrial tax 1,018 10% 10.4 -10%

Net income for the year 5,741 18% 58.4 -3%

Net interest income/Net operating income 58.5% -4.3 p,p,

Net fees/Net operating income 22.2% -4.5 p,p,

Financial results/Net operating income 17.4% 10.5 p,p,

Return on Average Assets (ROAA) 2.5% -0.1 p,p,

Return on Average Equity (ROAE) 16.1% 0.9 p,p,

STRUCTURE

Number of Branches, Business Centres and Prestige Centres 110 107 3%

Luanda 76 74 3%

Other provinces 34 33 3%

Number of active ATM (**) 120 119 1%

Number of active POS (**) 1,938 48%

Number of active Cards (**) 148,785 33%

Number of Employees 1,143 7%

Number of Customers 534,101 12%

EFFICIENCY AND PRODUCTIVITY

Cost-to-income 50.9% -5.1 p,p,

Number of Employees/Number of Branches, Business Centres and Prestige Centres

10.7 4.3%

Net income/Average number of Employees 5.2 8.9%

Net operating income/Average number of Employees 17.6 27.4%

Structural costs/Average number of Employees 8.9 15.9%

Number of Customers/Number of Branches, Business Centres and Prestige Centres

4,992 8.8%

CREDIT QUALITY

Loans overdue > 90 days as % of loans to Customers 3.2% 0.2 p,p,

Coverage of loans overdue > 90 days by provisions 196% 71 p,p,

(*) Merely indicative values in USD (conversion of values in national currency at the average exchange rate of USD/AOA for the values of the Income Statement:

98.291 in 2014 and 119.717 in 2015; and at the exchange rate of USD/AOA at the end of the year for the Balance Sheet headings: 102.863 in 2014 and

135.315 in 2015).

(**) Source: EMIS Monthly Statistics Report relative to the months of December 2014 and 2015.

10 2015

Chief Executive Officer Vice-PresidentJoão MatiasMemberMember Member

EXECUTIVE COMMITTEE

2015 11

SHAREHOLDER STRUCTURE

GOVERNING BODIES

29,9%SONANGOL –

SOCIEDADE

NACIONAL DE

COMBUSTÍVEIS

DE ANGOLA, E.P.

50.1%BCP ÁFRICA,

SGPS, LDA.

15%BANCO PRIVADO

ATLÂNTICO, S.A.

5%GLOBALPACTUM,GESTÃO DE

ACTIVOS, S.A.

CHAIRMAN: Miguel Maya Dias Pinheiro

MEMBERS: Maria Conceição Mota Soares Oliveira Calle Lucas

Hermenegilda de Fátima Agostinho Lopes Benge

António Augusto Decrook Gaioso Henriques

Fernando Gomes dos Santos

João Matias

Fernando Manuel Nobre de Carvalho

Paulo Fernando Cartaxo Tomás

CHIEF EXECUTIVE OFFICER: António Augusto Decrook Gaioso Henriques

VICE-PRESIDENT: Hermenegilda de Fátima Agostinho Lopes Benge

MEMBERS: João Matias

Fernando Manuel Nobre de Carvalho

Paulo Fernando Cartaxo Tomás

CHAIRMAN: Mateus Neto

DEPUTY CHAIRMAN: Ana Isabel dos Santos de Pina Cabral

SECRETARY: Graça Maria de Jesus Vieira Lopes Pitra Costa

CHAIRMAN: Miguel Anacoreta Correia

PERMANENT MEMBERS: Madalena Adriano Domingos de Lemos Neto

Luzia Rosário de Fátima Oliveira

ALTERNATE MEMBERS: João Manuel Francisco

Maria Inês Ribeiro Filipe

12 2015

ECONOMIC ENVIRONMENT

GLOBAL ECONOMIC ENVIRONMENT

According to the projections of the International Monetary Fund (IMF), the rate of expansion of global economic

activity, in 2015, is estimated to have fallen to the lowest level since 2009, in a context where the strong dynamics of

the developed economies was not sufficient to offset the loss of vibrancy of the emerging markets. The pronounced

decline in the price of raw materials, in addition to having intensified the split between the two groups of economies,

further deepened global deflationary pressures, creating a scenario of greater financial vulnerability, as well as the need

to maintain widespread accommodative monetary conditions.

In the euro zone, the improvement of monetary conditions, derived from the more expansionary position endorsed

by the European Central Bank (ECB), the effective depreciation of the euro, the reduction of the cost of energy and

the greater neutrality of the budgetary policies of the "peripheral" countries have boosted the process of economic

recovery. In fact, after the 0.9% growth in 2014, the European Commission (EC) estimates that GDP should have grown

by 1.6% in 2015 and that in 2016 the rate of expansion should increase to 1.8%. However, the weakness of the emerging

economies, the aggravation of geopolitical tensions and the risks inherent to the need to continue with the structural

reforms in course in various Member States may eventually constrain the rate of recovery of the euro zone.

In the USA, the sustained increase of employment and real disposable income, combined with the low level of interest

rates, have driven consumption and residential investment. Nonetheless, the recession associated to the collapse of

the price of oil which has ravaged the North American energy sector and the appreciation of the dollar have exerted

an adverse effect on business investment and exports, which resulted in a GDP growth rate similar to that observed

in 2014, which stood at 2.4%. In 2016, the evolution of private consumption should be the pendulum determining

the robustness of economic growth, which in turn should imply a good performance of the labour market, under

circumstances hampered by the presumable normalisation of monetary policy and concomitant intensification of the

trend of appreciation of the dollar relative to all the other main international currencies.

GLOBAL ECONOMIC GROWTH REMAINS MODERATE

Annual growth rate of real GDP (in %)

World economy Developed economies Emerging economies

0

-4

-2

2

4

6

8

0

-4

-2

2

4

6

8

Source: IMF WEO (January 2016).

2016(p.)201520142009 2010 2011 2012 2013

2015 13

The Chinese economy continued to show clear signs of loss of vigour throughout 2015, especially in terms of

the demand components which had substantiated its growth model, namely concerning exports and investment.

The principal risk for 2016 resides in the possible further weakening of the renmimbi, which would carry the

associated risk of capital flight and consequent deterioration of financial conditions for Chinese households and

businesses.

In 2016, the global economy shall face complex and varied risks. The negative spiral lodged between the

productive sector of commodities and the emerging economies threatens to continue to restrict the recovery

of global demand and cause a correction in international financial markets. On the other hand, the expected

increase of reference interest rates set by the Federal Reserve and the consequent aggravation of the high level

debt service of the business sector of the USA embody the risk of retraction of investment and, furthermore,

consumption. Finally, the prevalence of various focus points of geopolitical tension and security issues in Europe

constitute barriers whose effects are difficult to quantify, but even so are considered potentially adverse to the

consolidation of the economic upswing of the euro zone.

GLOBAL FINANCIAL MARKETS

The evolution of the financial markets in 2015 was dominated by increased volatility, presumably derived from

the uncertainty relative to the implications for the global economy of the slowdown of the emerging markets

and the beginning of the process of reversal of the expansionary policy of the North American Federal Reserve.

In this context, the geographic areas where monetary policy was more accommodative, as was the case of the

euro zone and Japan, as a rule, recorded levels of appreciation of financial assets above those of the economies

in which monetary conditions had become more restrictive, as occurred in the USA and, with less intensity, in

the emerging markets. The reference stock market indices of the USA closed the year with zero or negative

appreciation, while the equivalent European and Japanese indices recorded gains of around 10%. Concerning

exchange rates, the most notable development was the appreciation of the United States dollar, in particular,

relative to the currency of countries that are most dependent on commodity exports.

In contrast to the previous years, the performance of the international debt market in 2015 was marked by a clear

divergence between the stability of the prices of securities issued by extremely credit-worthy entities on the one

hand, and the devaluation of higher risk bonds on the other hand. In the euro zone, in spite of the ECB having

GLOBAL STOCK MARKET INDEX DEVALUED AND VOLATILITY INCREASED

World equity index (Jan 2014 = 100)

Euro Stoxx 600 bank index (Jan 2014 = 100)

Volatility index (VIX)

Source: Datastream.

May 15 Sep. 15 Nov. 15Jul. 15 Dec. 15Jan. 15 Mar. 1585

90

95

100

105

125

110

115

120

25

45

30

35

40

20

15

10

14

implemented a public debt purchase programme, the risk premiums of the sovereign debt of the "peripheral"

countries showed an erratic performance, but without a defined direction, after the very significant compression

which occurred between 2013 and 2014. Even so, the intensification of the expansionary content of the ECB's

monetary policy, including the setting of the deposit facility interest rate at negative values, produced a shift of the

Euribor rates to levels below zero up to the period of six months and contributed to the depreciation of the euro,

especially relative to the dollar.

OUTLOOK FOR THE PORTUGUESE ECONOMY

The recovery of the Portuguese economy consolidated throughout 2015 benefited from the lower funding costs,

the fall in the price of oil, the acceleration of the European economy, the gains of external competitiveness derived

from the effective depreciation of the euro and, in a more indirect manner, from the structural reforms implemented

during the adjustment programme. According to the European Commission estimate, GDP should have grown by

1.5% in 2015, above the 0.9% recorded in 2014. The greater strength of economic activity was essentially due to the

buoyancy of private consumption and exports, as investment continued at a lower rate than in the preceding year.

In 2016, the trend of recovery of activity should continue supported by domestic demand, which should benefit

from the increased employment and disposable income, the low cost of energy, the low level of interest rates and

also from the implementation of the new European funding framework, namely the Portugal 2020 programme.

However, the risk of slowdown of the international economy combined with the fragility of the emerging markets,

and the possible occurrence of a significant correction in financial markets, constitute the main barriers to the

sustained recovery of the national economy.

The postponement of the process of sale of Novo Banco to 2016 and the application, at the end of the year, of

a measure of resolution to Banco Banif were marking events in the evolution of the Portuguese banking system

in 2015, disturbing the process in course of improved profitability, and consolidation of the liquidity and solvency

position of credit institutions in Portugal, reflected in the progressive attenuation of the trend of reduction of credit

granted to the economy.

The profitability of the financial sector in 2015, excluding the cases mentioned above, tended to improve in relation

to the previous year, based, on the one hand, on the favourable evolution of the core income (i.e. net interest

income and fees) and on the gains in financial transactions associated to the improvement of the country's risk

premium, especially in the first half of the year, and on the other hand, due to the less negative evolution of the cost

of risk and greater contention of operating costs in Portugal.

PORTUGUESE ECONOMY CONTINUES ALONG THE PATH OF RECOVERY

GDP (real year-on-year growth rate in %)

Coincident indicator (Millennium bcp)

Source: Datastream and Millennium bcp.

Mar. 11 Mar. 12 Mar. 13 Mar. 15Mar. 10

-6

-4

-2

0

2

4

-6

-4

-2

0

2

4

2015

15

Sustaining the process of improved profitability remains one of the primary challenges to be faced in 2016, the success

of which shall greatly depend on the risks and uncertainties of the international context, the recovery of the Portuguese

economy and the relative evolution of the cost of risk and net interest income. The repercussions of the resolution

process constitute latent factors of uncertainty in the banking business, both in terms of the confidence shown by

Customers and investors, and regarding the profound alteration of the competitive context of the Portuguese market.

The deepening of the Banking Union and the consequent regulatory framework, the financial integration under the

wings of the Capital Markets Union project and the use of new business concepts derived from the endorsement

and application of new technological potentialities shall continue to be motives for the banks to rethink their business

strategy and positioning.

INTERNATIONAL OPERATIONS

According to IMF estimates, Poland recorded a GDP growth rate of 3.5% in 2015, presenting itself as one of the

most dynamic economies of the European Union. The primary contribution to this performance came from private

consumption, underpinned by the increased disposable income, the easy access to credit and the improvement of the

labour market, further boosted by the favourable evolution of investment. In turn, net external demand should have

contributed nothing to GDP. The scenario of great buoyancy in economic activity was not, however, reflected in a rise

of inflation, due to the persistence of strong external deflationary pressures. In this context of low levels of inflation,

the monetary policy continued accommodative, which contributed to the relative stability of the zloty in relation to the

euro for the year as a whole. For 2016, the IMF forecasts that Poland should maintain robust growth levels, not excluding,

however, the risks for economic activity, sustainability of public finance and compliance with the European commitments

that may arise from the policies announced by the government which took up office following the legislative elections

of October 2015.

After five consecutive years recording growth rates above 7%, the Mozambican economy appears to have slowed down

in 2015, with the IMF projecting an expansion of 6.3%. This evolution was determined by the reduction of commodity

prices, in particular of gas, coal and aluminium, which led to a decline of revenue from export of commodities and

cooling down of direct foreign investment, which resulted in a deterioration of the current account of the balance of

payments and, consequently, the devaluation of the metical. The exchange rate instability, particularly accentuated in

November, led the Mozambican government to request an emergency loan from the IMF and adopt a more restrictive

monetary and budgetary policy aimed at restoring economic stability. In this context, concerns deepened regarding the

sustainability of public debt (primarily denominated in foreign currency), which led to a downward revision of the ratings

attributed by the international agencies. For 2016, in spite of the international scenario being challenging, the IMF foresees

a minor acceleration of the Mozambican economy, underpinned by productivity gains expected in agriculture and by the

expansion of coal production, following the opening of new transport channels, namely by railway.

In 2015, the Angolan economy pursued its trajectory of deceleration. The fall in the price of oil significantly reduced fiscal

revenue and the obtaining of foreign currency inherent to exports of the energy sector, which particularly constrained

private consumption and public investment, having contributed to the GDP growth rate having shifted from 4.8% in

2014, to 3.5% in 2015, according to IMF forecasts. In this environment, the kwanza recorded a sharp devaluation and

the inflation rate stood at close to 10%, imposing the need for more restrictive monetary policy. In 2016, the IMF

expects that the GDP growth rate should continue at 3.5%, supported by the effects of the policies which have been

progressively adopted with a view to reducing dependence of the petroleum sector and assuring a greater diversification

of economic activity, as the external context should remain adverse, especially with respect to the progression of the

Chinese economy and evolution of the price of oil.

GROSS DOMESTIC PRODUCT

Annual growth rate (in %)

2013 2014 2015 2016 2017

EUROPEAN UNION 0.2 1.5 1.5 1.4 1.3

Portugal -1.6 0.9 1.6 1.5 1.4

Poland 1.7 3.4 3.5 3.5 3.6

SUB-SAHARAN AFRICA 5.2 5.0 3.5 4.0 4.7

Angola 6.8 4.8 3.5 3.5 3.8

Mozambique 7.4 7.4 6.3 6.5 7.9

Source: IMF (February 2016).

IMF estimate.

2015

16

ANGOLAN ECONOMY

Throughout 2015 and in the wake of the constraints of the economic context of 2014, the Angolan economy was

severely affected, experiencing situations of evident economic and financial crisis derived from the abrupt, accentuated

and persistent decline of the prices of the barrel of oil in the international market and, consequently, the lack of foreign

currency to fund imports, on which Angola is heavily dependent. These two aspects significantly compromised the

continued growth of the Angolan economy over the entire year in reference. These factors influenced the volume

of revenue obtained to maintain macroeconomic stability, reflected in the reduction of domestic production, in the

aggravation/increase of the exchange rate and inflation rate – which shows a galloping upward trend – and in the

significant decline of purchasing power parity, affecting the disposable income of the population in a widespread manner,

which has felt in the slowdown of demand.

The initial outlook embodied in the Angolan State Budget for 2015 indicated that the country should see its public

accounts shift from a surplus to a deficit position due to the reduction of fiscal revenue derived from the lower

price of oil, implying a reduction in budget results. Public debt should reach a figure of 38.7 million euros, equivalent

to 35.5% of GDP, combining External Debt (24.5%) and Domestic Debt (11%). The State deficit should grow 38

times between 2014 and 2015. The stock of public debt should be exacerbated with an estimated debt of 7.6%

in public accounts, signalling the enormous difficulties expected in 2015, despite the outlook of year-on-year GDP

growth of 9.7%.

The Angolan State Budget for 2015 was drawn up with forecast expenditure of 5,215 trillion AOA and revenue

of 4,184 trillion AOA, the latter corresponding to 11.80% less than in 2014, with fiscal revenue derived from oil

standing at 2.5 trillion AOA, representing a decline of 16% in relation to the estimate for this year and 66% of

current revenue. Production is estimated to increase by 10.7%, from 604.4 million barrels in 2014, to 669.1 million

barrels in 2015. The Budget also forecast an inflation rate of 7%, an exchange rate of 99.10 AOA per dollar, and a

money growth rate based on M2 of 16%, with a stock of net international reserves of 23.5 billion dollars.

Operating in a context of uncertainty and as a precautionary measure, the Angolan State Budget was prepared

based on a fiscal price of 81 dollars per barrel, forecasting a revenue of 2,551 billion AOA (21.2 billion euros).

In view of the persistent slump in the price of the barrel of oil in the international market, it was decided that a

budgetary review was required which established the budgetary average reference price of crude oil at 40 USD,

reflecting a loss of 14 billion USD, to levels above 50%, and a cut in State current expenditure (goods and services)

of 50% and 53% in public investment.

EVOLUTION OF THE AVERAGE PRICE AND MONTHLY CHANGE

IN THE PRICE OF THE BARREL OF OIL

Monthly Average Price of the Barrel of Oil

(USD) Change (%)

Source: World Bank.

Jan. 1

4

Feb. 1

4

Mar

. 14

Apr. 1

4

May

14

Jun. 1

4

Jul.

14

Aug.

14

Sep. 1

4

Oct

. 14

Nov.

14

Dec

. 14

Jan. 1

5

Feb. 1

5

Mar

. 15

Apr. 1

5

May

15

Jun. 1

5

Jul.

15

Aug.

15

Sep. 1

5

Oct

. 15

Nov.

15

Dec

. 15

0

20

40

120

60

80

100

-10%

20%

-5%

0

5%

15%

10%

-15%

-20%

-25%

2015

17

The economy and consequently the Angolan financial system have been visibly shaken by the current situation of

world markets. In order to reduce the identified vulnerabilities and reinforce the measures aimed at containing

the downward spiral of the country's economic and financial circumstances, the government embarked upon

a series of initiatives aimed at maximising the reversal of the scenario of economic deterioration, triggering and

reinforcing actions aimed at (1) diversifying the economy circumscribed in the national objectives of the policy

to promote and diversify economic development, 2013-2017; (2) intensifying the implementation of the tax

reform, so as to widen the tax base and lower the vulnerability of public expenditure to fluctuations in the price

of the barrel of oil; and (3) reverse the course of contractionist fiscal policy, seeking to expand non-oil revenue

and enhance the quality of State expenditure. For this purpose, urgent resources for the funding of the economy

have been mobilised, domestically and externally, namely through the issue of public debt on the domestic and

external market – Angola made its first incursion into the internal capital market, with the issue of eurobonds,

on 5 November, launching a public debt issue of 1.5 billion dollars at ten years, with an annual interest rate of

9.5%, as well as via the attraction of domestic and external loans from China, Brazil and the International Bank

of Reconstruction and Development (IBRD). By mid October, the value of public debt corresponded to 5.8%

of the GDP projected for 2015.

Economic and social development programmes were implemented, aimed at reinforcing and improving the

water supply and sanitation system, expanding the capacity of production and system of transport of electricity,

involving logistics platforms, the recovery and maintenance of roads and hospital and education infrastructures.

The petroleum sector is expected to grow by around 7.8% – as a consequence of increased oil production of

around 1.8 million barrels of crude per day, while the non-oil sector is forecast to grow by 2.4%, which aggregates

growth levels of 2.5% in agriculture, 2.6% in manufacturing industry and 2.2% in trade services. The energy sector

should grow by 12%, the construction sector by 3.5% and the diamond sector by 3.2%.

The government was forced to optimise the burden of subsidies, due to the effect associated to the slump in

oil revenue and adjustment of the exchange rate on the import price of petroleum derivatives. Fuel prices were

increased, significantly reducing the State monetary contribution in this range of products. From 1 January 2016

onwards, diesel was no longer subsidised by the Angolan government with the price becoming subject to the

free market system, and likewise for petrol since April, with new price increases having occurred on that date.

Also in terms of government policy to address the less favourable international and domestic economic and

financial environment, and aimed at optimising the burden of subsidies and lowering them to the levels of

coverage of the fiscal revenue, the government also adjusted electricity and drinking water tariffs for the

provinces of Luanda and Benguela, pursuant to Executive Decree 705/15 and the combined Executive Diploma,

both of 30 December, of the Ministry of Finance and Ministry of Energy and Water.

The adjustments carried out to the fuel, energy and water subsidies enabled the saving of funds aimed at the

rational coverage of public and private expenditure and creation of space to assure the coordinated conduct of

fiscal, monetary and foreign exchange policies as well as the funding of actions relative to the objectives of the

National Development Plan 2013-2017.

The Angolan financial system has recorded a significant liquidity deficit in terms of external currency/USD to

meet market needs, in particular relative to imports, remittances and transfer of foreign currency and payments

abroad, via debit/credit cards, indicating a decline in the country's Net International Reserves – the total value of

the amount auctioned in November represented merely 33.6% of the corresponding amount auctioned in June.

This illustrates the country's difficulty in dealing adequately with the Balance of Payments imbalances, controlling

and influencing the exchange rate, assuring confidence in the national currency and promoting a reference

monetary policy for foreign investors and loans.

The supply of dollars to the market via the banking system has proved to be increasingly more rationed and

restricted, with the evident reduction of the offer of foreign currency in the primary market, giving rise to

galloping speculation around the dollar in the informal market. In view of a context aggravated by the need for

foreign currency and in an attempt to develop mechanisms to adjust/stabilise the foreign exchange market and

money market, Banco Nacional de Angola (BNA) set in motion a series of actions, aimed at maintaining the

control/tight hold of monetary and exchange rate policy, via devaluation of the Angolan currency during the year,

specifically on 4 June and 10 September. The kwanza lost 37% of its value with respect to the American dollar,

in the primary market, the strongest annual devaluation of the dollar since October 2009. As at 31 December

2015, the dollar stood at 400 AOA on the informal market. Nevertheless, on 4 January 2016, BNA once again

increase the dollar exchange rate to 156.386 kwanzas.

2015

18

The deterioration of the USD/AOA exchange rate undermined the confidence of economic agents and significantly

affected the inflation rate, which surpassed two digits. One of the focus points of the government's measures to

control the fiscal and monetary policy should involve the challenge of controlling the rate of inflation, combined

with the protection of net international reserves. The control of this issue shall be one of the arguments to boost

the recovery of the confidence of the domestic and external market.

Another measure taken by BNA, aimed at safeguarding the exercise of transparency in banking activity and

fostering confidence in the Angolan financial system, in line with the foreign pressure derived from the drying up

of dollars in Angola by North American banks, was the publication of Directive 2/DRO/DSI/15, Guidelines on the

Prevention of Money Laundering and Combat of Terrorist Financing in Relations with Correspondent Banks and

Client Banks, and the launch of a media campaign aimed at reiterating the commitment to combat illegal financial

flows. These measures seek to strengthen the regulatory mechanisms and guidelines on this matter, in relations with

correspondent banks and client banks. On this issue, the impact of the EIU (Economist Intelligence Unit) forecast is

that the BNA's commitment to clean up the country's financial system is positive. Albeit addressing illegal financing

flows, this Directive shall also require strong enforcement measures; hence, while not being guaranteed in the

opinion of the EIU, its forecasts continue unchanged.

During 2015, the Angolan economy was subject to an adverse circumstantial context, which shows no prospect

of recovery in the short and medium term. The significant variation of the targets associated to the fundamental

assumptions of the Angolan economic model has compromised the achievement of the State Budget targets, as

well as the goals and objectives of the National Development Plan 2013/2017. The price of its most important

resource, oil, has stood, in some circumstances and in an accentuated form, at levels below USD 40, having reached

the average value of USD 36.5 in the month of December and annual value of USD 53. Consequently, Angolan

fiscal revenue fell by 850 billion kwanzas, with this indicator having plunged by 26.35% over a 12 month period,

from the total of 4,096 billion kwanzas in 2014, to 3,242 billion kwanzas in 2015. The exchange rate on the primary

market stood at 130.68 AOA per dollar and the inflation rate reached 14.27%, greatly above the projected 7.46%.

Net international reserves declined by 11.53%, corresponding to 24.1 billion dollars for around six months of

imports. The expected economic growth of 4.8% was cut to effective growth of merely 2.8%, in spite of the

increased oil production of very close to 1.8 barrels/day.

Monthly inflation

Accumulated inflation

Inflation over the last 12 months

Source: BNA.

EVOLUTION OF THE INFLATION RATE

0%

2%

4%

6%

8%

10%

16%

14%

12%

Jan

uar

y

Febru

ary

Mar

ch

April

May

June

July

Augu

st

Septe

mber

Oct

ober

Nove

mber

Dec

ember

2015

19

OUTLOOK FOR 2016

2016 shall be a difficult year for Angola, as the uncertainty around the evolution of the price of oil presents

considerable risks for budgetary implementation and for the prospects of economic growth, with the forecast

maintenance of the restrictive macroeconomic scenario. The world economic context of the petroleum sector,

concerning the constraints on demand and supply, point to a gloomy outlook for oil producing countries, in view of

the persistent outlook of the descending price of the barrel.

The slump in the price of oil has significantly reduced fiscal revenue and exports. The need to resolve the identified

vulnerabilities, and also to diversify the economy, improve the management of oil revenue volatility and implement

structural reforms to assure macroeconomic stability and the sustainability of national debt shall constitute the

primary challenges of the Angolan government in 2016. Accordingly, there is also a continuous need to search

for solutions for debt problems, relaunch imports, reduce the exchange rate, aimed at restoring the value of the

national currency, and reduce the inflation rate to stimulate demand.

According to the Angolan State Budget for 2016, the economy should grow at a more moderate rate, with a

stagnation of the administrative public sector. The Angolan government estimates real GDP growth of 3.3% – slightly

above the population growth rate of 3%/year –, relative to the estimated growth of the previous year (2.8%),

underpinned by an expected growth of 4.8% forecast for oil production, which should record an acceleration of 1.89

million barrels/day, following the expected increased production in the oil blocks of Cabinda and operationalisation

of the Mafumeira and Satelite Kizomba projects.

Also according to the State Budget, the sectors of the national economy which shall show strongest development

shall be energy, with a forecast growth of 20%, agriculture with expected growth of 4.6%, and the manufacturing

industry and construction sectors with 3.1%. Overall, in 2016, the non-oil sector shall record a moderate

reinforcement, with expected growth of 2.7%, in 2016, when compared with the 2.4% growth projected for 2015.

In terms of participation in GDP, the oil and non-oil sectors should contribute with 1.5% and 1.9%, respectively.

Budgeted in overall terms, with revenue and expenditure of equal value, at 6,429,287,906,777 kwanzas (38.2 billion

euros), the State Budget for 2016, approved at the National Assembly in December, is described by the government

as maintaining the austerity, due to the oil price crisis which, just in 2015, forced the cutting of one third of expenditure

and implies a deficit of 5.5%. According to the State Budget, all the wealth generated in Angola by oil should reach 3,301

billion kwanzas (19.3 billion euros) this year, with a forecast 3% increase in crude oil exports, to 689.4 million barrels. The

budget also forecasts an increased stock of public debt to 49.2 billion dollars, 49.7% of GDP (31.1% external and 18.6%

domestic), equivalent to half the national wealth that shall be generated by the country in 2016.

EVOLUTION AND FORECAST OF GDP AND GDP PER CAPITA

GDP (%)

GDP Per Capita (000)

Source: EIU/MINFIN-OGE/FMI.

2010 2011 2012 2013 2014 2015 2016

1

2

6

5

4

3

7

8

1

2

3

4

5

6

7

00

3.3

5.8

2015

20

The Angolan government projected for 2016 an average price of 45 USD per barrel exported, whereas the price on

the international market fell to values below 28 dollars in January, aggravating fears on the implementation of some

projects, investments and public expenditure of the country. The inflation rate was placed at 11%, corresponding

to the adjustments to be carried out in the economy, in line with the forecast in the National Development Plan

2013-2017, with a forecast deficit of 781.2 billion kwanzas, equivalent to 5.5% of GDP.

The principal potential risks for the national economy in 2016, related to international and national economic

circumstances, according to the State Budget, are: 1) the volatility of the price of oil and 2) exchange rate

depreciation. It is expected that the State Budget will be revised if the price of petrol does not rise, as the capacity

to repay foreign loans is strongly limited by the current capacity to generate foreign currency. In view of the

current scenario of the national economy and in the context of maintenance of the national objectives of the

policy to boost and diversify economic development for 2013-2017, the government has highlighted a series of

priorities that will be enforced under the following fundamental action programmes: Programme of Diversification

of National Production, which shall assure the construction of a solid and diversified economic base, aimed at

reducing the dependence on consumer product imports and the high dependence on oil sector exports, where

this programme shall include a structural reform in agriculture; Programme of Creation of Priority Clusters, directed

at the development of economic sectors which shall enable the constitution of comparative and competitive

advantages capable of relaunching the Angolan economy; and the Angola Invest Programme, which should create

and drive the Angolan business structure, strengthening it to a positioning that is more active, employment creating

and wealth generating for the country.

According to the IMF, public debt should increase significantly, but growth should remain stable, warning that the

economic and financial situation in Angola shall continue to be a challenge in 2016, because an oil price recovery

is not expected. However, the IMF noted that the growth of the Angolan economy in 2016 should continue stable

at around 3.5%.

The Centre for research and Scientific Studies (CEIC) estimates that the Angolan economy lost 555 million dollars

in the first 20 days of the year, due to the fall in the price of the barrel of crude oil in the international market, based

on the figures of the Angolan State Budget for 2016 for the export of the barrel of crude at 45 dollars, when the

price was already below 30 dollars. This aspect constitutes an indicator of the eminent possibility of a State Budget

revision.

The government has recently delineated a crisis mitigation strategy, as a consequence of the decline of the price

of the barrel of oil, assuring that it will focus on increasing non-oil tax revenue, optimising public expenditure and

rationalising the import of goods. On this last issue, the new customs tariff was enforced on 1 January, referring

to duties on imported items, such as mineral water. The measures to be adopted involve fiscal, monetary, external

trade and real economy aspects, aimed at reducing the impact of the scarcity of foreign currency in the national

economy.

Following this, the special contribution was announced applicable to most banking operations, at a rate of 0.1%,

except wages and deposits, which shall be enforced three months after the publication in Diário da República, and

the alterations to the Urban Property Tax, as a condition, among others, to offset the potential restriction in the

maintenance of the social programmes foreseen in the National Development Plan (PND) 2013-2017. Other

measures included the strengthening of action mechanisms of the General Tax Administration (AGT) to ensure

the continued growth rate of non-oil revenues; the stimulation of the tax enforcement mechanisms of taxpayer

debts; the continuation of the process of inspection of taxpayers receiving tax benefits; and the continuation of

the process of taxpayers in breach of labour income tax (IRT) obligations; follow-up of the process of optimisation

of subsidies in the price of fuel, energy and water (already undertaken), and collective urban, railway, sea or land

transport, through revision of the respective tariffs.

2015

21

Despite premature, the revision of the State Budget may be imminent, which is not a good sign for national

and foreign investors, as this scenario places in question the country's macroeconomic stability. This revision shall

naturally depend on the trend followed by the price of oil in the near future. The OPEC estimates that the demand

for oil should reach 31.6 million barrels per day in 2016, i.e. 1.7 million more than that estimated in January of

approximately 1.5 million barrels per day. Goldman Sachs lowered the forecast for Brent prices in 2016, 2017 and

2018 to 45 USD, 62 USD and 63 USD per barrel, respectively. Standard & Poor's reduced its oil price estimates in

2016 to 40 USD per barrel, from previous projections of 55 and 50 USD.

The World Bank issued a downward revision for its forecast oil price for 2016. The projection disclosed in October

2015 pointed to 51 dollars per barrel, while it is currently standing at 37 dollars per barrel. This revision takes into

account the restarting of exports from Iran and the slowdown of growth in the main emerging economies. Oil

prices fell by close to 47% in 2015 and, on average, should descend a further 27% in 2016. However, a gradual

recovery over the year is also expected, with probable cuts in production and strengthening of demand.

The economic context of 2016 faces numerous uncertainties, whose underlying theme gravitates around the

expected evolution of the price of oil. The International Monetary Fund and the World Bank prepared a loan of

4 billion dollars, which may be the first of a series of financial bailouts to oil-producing countries affected by the

decline of oil prices, which have experienced an imbalance in their public finance and entered an exchange rate

crisis following the appreciation of the dollar.

Regarding Angola, the IMF advocates that the priorities should be: making the labour market more flexible;

promoting private investment; improving the business environment, especially reducing bureaucracy, facilitating

the process of incorporation of companies, strengthening the supremacy of the law and improving physical

infrastructures and human capital. The IMF also recommends the continued cutting of fuel subsidies, while at the

same time expanding delineated assistance to the poor.

Recently, Standard & Poor’s downgraded the rating of Angolan sovereign debt from "B+" to "B", but with an

outlook of "stable" evolution. This downward revision of the rating is justified by the decline of the price of oil

and dependence on these exports, leading to the country's increased indebtedness. For this agency, the State's

domestic and external loans, combined with a weak exchange rate, have elevated the weight of public debt,

with it being expected that Angola's gross debt should reach 50% of GDP by this year. Now, the outlook of

"stable" evolution is justified by the forecast of a gradual decrease of the Angolan deficit, thus reducing the risks

of external financing, also taking into account the government's response to the crisis, aimed at preventing the

deterioration of the fiscal and debt situation.

Standard & Poor’s also foresees the need for Angola's gross external financing of approximately 31 billion USD,

this year and the next, of which around half is short term.

EVOLUTION AND FORECAST OF THE PRICE OF THE BARREL OF OIL

Source: EIU/World Bank.

2018201720162009 2010 2011 2012 2013 2014 2015

0

20

40

60

80

100

120

62

80

111 109

96

53

112

37

55

45

2015

22 2015

NOTICES

Notice 08/2014, of 04 December

Establishes the period as of which the "Series 1999" notes and coins shall no longer be in circulation. Pursuant to this

Notice, notes and metal coins of the "Series 1999" shall only remain in circulation, together with notes and metal

coins of the "Series 2012", up to 31 December 2014.


Establishes the rules and principles ruling the advertising of financial products and services marketed by financial

institutions under the supervision of Banco Nacional de Angola.


Regulates the characteristics and requirements of the guarantees which financial institutions receive, as well as the

respective guarantors, in order to be eligible for prudential effects.


Establishes specific requirements for credit operations made by financial institutions authorised by Banco Nacional

de Angola or which, under the terms and conditions stipulated in the Law of Financial Institutions, are under its

supervision.


Regulates the process of constitution of provisions of financial institutions.

Notice 01/2015, of 26 January

Readjusts the regulations on the import, export and re-export of foreign currency by banking financial institutions,

and determines the information that should be provided to Banco Nacional de Angola.

Main alterations:

a) Exempts prior authorisation – Banking institutions are henceforth authorised to import, export and re-export of

foreign currency, as well as travel cheques, without prior authorisation by Banco Nacional de Angola;

b) Duty of disclosure – Banking institutions should inform Banco Nacional de Angola about each foreign currency

import and export operation carried out. The information should be reported through the System of Financial

Institutions (SSIF) by the last day of the week when the operation took place.

Notice 02/2015, of 26 January

Updates the regulations on the limit of exposure to exchange rate risk and gold of financial institutions under

supervision of Banco Nacional de Angola.

Main alterations:

a) Treasury securities indexed to foreign currency are exempt from calculation of foreign exchange exposure.

Notice 03/2015, of 20 April

Establishes the minimum requirements, rules and principles to be observed by financial institutions when advertising

the financial products and services marketed to the public.


Establishes the period as of which the "Series 1999" and "2003" notes and coins shall no longer be in circulation.


Defines the requirements of the cheque forms used in the Payment System of Angola.

REGULATORY CHANGES TO THE FINANCIAL SYSTEM

2015 23


Establishes the rules for identification of Deposit Accounts.


Defines and establishes the dates and requirements for the extinction of the Securities Clearing Service (SCV) and

operationalisation of the Cheque Clearing Subsystem (SCC).


Establishes the conditions of compulsory settlement of inter-bank transfers in the Payment System by Gross in Real

Time (SPTR).


Establishes the execution times for transfers and remittances, as well as the deadline for funds to become available

to the beneficiary, following the deposit of cash and cheques, transfers or remittances.

Notice 10/2015, of 16 June

Establishes the terms and conditions for the inflow and outflow of domestic and foreign currency, held by individuals,

foreign exchange residents or non-foreign exchange residents, whose destination or origin is the Republic of

Namibia, using the land border of Santa Clara (Cunene – Angola) or Oshikango (Namibia).


Regulates the classification of the clearing and settlement subsystems of the Payment System of Angola (SPA), with

a view to the adoption of risk control mechanisms, and stipulates and functioning and operationalisation of these

sub-systems and the responsibilities of the operators.


Monetary Conversion Agreement concluded between Banco Nacional de Angola and the Bank of Namibia. Adopts

a new implementation mechanism and establishes new procedures on the transport of domestic and foreign

currency across the land border of Santa Clara (Angola) and Oshikango (Namibia) and defines the new rules of

the framework of procedures for transactions carried out by financial and banking institutions and foreign exchange

bureaus, under the aforesaid agreement.

INSTRUCTIONS

Instruction 07/2014, of 03 December

Adjusts the rules for calculation and compliance with the required reserves to the current context of macroeconomic

stability.

Main alterations:

a) Increase of the coefficient of required reserves in national currency, from 12.5% to 15%;

b) The requirement in national currency can be deducted by the amount of up to 60% of the assets representing

the value of the credit disbursement granted in domestic current in the sectors of Agriculture, Fisheries and

Production of Food Products, provided that the maturity is more than or equal to 36 months.

Instruction 01/2015, of 26 January

Establishes criteria for classification of countries and identification of multilateral development banks and international

organisations, for prudential effects.

Instruction 02/2015, of 14 January

Establishes the methodologies that can be used to define the minimum amounts of provisions that should be

constituted, in the context of the determinations on the process of constitution of provisions stipulated in Notice

12/2014, of 17 December.

Instruction 04/2015, of 02 March

This instruction adjusts the procedures relative to the holding of sessions to purchase and sell foreign currency

established in Instruction 01/2011, of 12 April, aimed at preserving balance in the foreign exchange market,

instructing additional operating rules relative to the purchase and sale of foreign currency, amending the text

of points 3.1.2, 3.1.5 and 8, adding points 3.1.7, 3.1.8 and 3.1.8.1, defining priorities to the destination of foreign

currency acquired by commercial banks from Banco Nacional de Angola and/or its Clients, namely Transaction of

Goods and Current Invisibles.

24

Instruction 05/2015, of 02 March

Defines the technical specifications of the Standard Cheque, in conformity with article 1 of Notice 05/2012, of 20

April. This "Cheque" is named "Standard Cheque Model 2.1" (two point one).

Instruction 06/2015, of 26 May

Establishes rules for containment of the risk of settlement in the subsystems of the Automatic Clearing Chamber

of Angola (CCAA), considering the negative impact of the impossibility of payments due to insufficient backing

of a participant over the others or users of the Payment Subsystem of Angola (SPS), defining, among others, the

mechanisms for constitution, composition, assessment, operationalisation and default.

Instruction 07/2015, of 25 May

Regulates the terms and conditions under which foreign exchange bureaus can purchase and sell foreign currency.

Instruction 08/2015, of 03 June

Proceeds with the adjustment of the rules for calculation and compliance with the required reserves to the current

context of macroeconomic stability.

This Instruction establishes that the coefficient of reserves applicable to the daily balances of the items comprising

the base of incidence, with the exception of the accounts of the Central Government, Local Government and

Municipal Administrations, is 25% (compared to the previous 20%), where banks may meet up to 10% (compared

to the previous 5%) of the requirement in Treasury Bonds, weighting the respective maturities, provided that they

were issued from January 2015 onwards and belong to the banks' own portfolio.


Establishes the methodologies that can be used to define the minimum amounts of provisions that should be

constituted, in the context of the determinations on the process of constitution of provisions stipulated in Notice

12/2014, of 17 December.


With a view to preserving a balance between the operationalisation of the foreign exchange market and the

objectives of exchange rate policy, this instruction establishes requirements, criteria and adjustments to the

procedures of holding of sessions to purchase and sell foreign currency.


Establishes the operating rules to be observed by banking financial institutions and foreign exchange bureaus,

located along the border zone of Santa Clara, province of Cunene, for foreign exchange transactions involving

Namibian Dollars (NAD) and to monitor the flow of operations carried out under the Monetary Conversion

Agreement concluded between Banco Nacional de Angola and the Bank of Namibia.


Following Instruction 10/2015, this instruction defines new requirements to be observed by financial institutions

in the process of carrying out foreign exchange operations involving goods, current invisibles, capital and sale to

Foreign Exchange Bureaus.


Establishes that, under their essential duties, Development Banks may participate in the interbank money market to

assign liquidity, through submission or not of guarantees by the receiving banking institutions.

Instruction 14/2015, of 07 July(1)

Establishes that the effective exchange rate to be applied by Banking Financial Institutions authorised to conduct

the foreign exchange trade, in each sale of foreign currency transaction, intended for the payment of operations

of import of goods, i.e. the effective nominal exchange rate plus all the fees and costs net of taxes, should not

exceed the reference exchange rate for sale published by Banco Nacional de Angola, plus a spread of up to 3%

(three per cent).

In all other foreign exchange operations, including the purchase and sale of foreign notes or travel cheques, the

effective exchange rate to be applied by Banking Financial Institutions authorised to conduct foreign exchange trade,

in each operation of sale of foreign currency, is freely negotiated.

(1) This Instruction was replaced by Instruction 15/2015, of 13 July.

2015

25

The sale of foreign currency by Banking Financial Institutions to foreign exchange bureaus can only involve notes

and travel cheques.

Instruction 15/2015, of 13 July

Suspends the enforcement and consequent applicability of Instruction 14/2015, of 07 July, and re-establishes the

enforcement of Instruction 03/2014, of 04 April, and all the regulations that are not contradictory to it.

Instruction 16/2015, of 22 July

Determines the establishment and maintenance of required reserves in national currency and foreign currency,

pursuant to Instruction 08/2015, of 3 June, which has been revoked, with some amendments concerning the

form of calculation, namely the weekly calculation formula for the arithmetic average of the balances stated in the

respective accounts during business days of the week (numbers 9 and 10) and the contents of numbers 15 and 18.

Instruction 17/2015, of 20 August

Establishes the operating procedures for the holding of auctions for the sale of foreign currency to Foreign

Exchange Bureaus. For example: 1) only foreign exchange bureaus that are authorised by Banco Nacional de

Angola can conduct foreign exchange trade; 2) the sessions are carried out based on the best offer; 3) the sessions

are not attended in person and are operationalised under the terms of number 3 of the present instruction: on

the date and at the time stipulated by the Asset Market department, the foreign exchange bureaus should send

their bids to the electronic address [email protected], indicating: 1) the purchase amount in foreign currency of each bid

and exchange rate; 2) the maximum of three names of banking financial institutions domiciled in the country, for

purposes of settlement of the operation by Banco Nacional de Angola, namely the realisation of the credit of the

foreign currency and debit in national currency; the sum of the bids submitted by each foreign exchange bureau

cannot exceed twice the value of its own funds; the amount of each bid cannot be less than 50,000 USD.


Establishes the frequency, form and content of the statistical information to be provided to Banco Nacional de

Angola by the issuers and acquirers of payment cards and by the firm operating the Multicaixa subsystem, where

the frequency and period depend on the type of data in question (information of statistical nature should be sent

monthly, up to 10h00 of the day of the month following that to which it refers), highlighting various exceptions

relative, for example, to the context of fraud or attempted fraud or operational problems, whenever it is deemed

that the seriousness of the occurrence requires urgent measures by third parties.


Establishes rules and procedures inherent to the system for monitoring and treating foreign exchange operations,

aimed at improving the information provided by Banking Financial Institutions, assuring the correct definition and

monitoring of the execution of Banco Nacional de Angola's exchange rate policy.

DIRECTIVES

Directive 02/DRO/DSI/2015, of 10 December

Guidelines on the Prevention of Money Laundering and Combat of Terrorist Financing in Relations with

Correspondent Banks and Client Banks, regulating the conditions of exercise, the duties of disclosure and clarification,

as well as the instruments, mechanisms and formalities necessarily applicable to the effective compliance with the

obligations established in the law.

Directive 03/DRO/DSI/2015, of 23 December

Considering the need to adjust the interest rates for the Permanent Facilities of Assignment and Absorption of

Liquidity, and in conformity with the decision of the fifty-first ordinary meeting of the Monetary Policy Committee

held on 21 December 2015, this directive establishes a 2.5% increase of the Rediscount Interest Rate, shifting it from

12.5% to 15%, which should be reviewed periodically by the Monetary Policy Committee.

Directive 13/DMA/2015, of 28 December

Grants Banking Financial Institutions the prerogative to make liquidity absorption investments at seven days, with the

rate for this maturity being established at 1.75%, and this rate being subject to periodic review by Banco Nacional

de Angola.

2015

26 2015

NET INCOME

The net income of Banco Millennium Angola stood at 6,760 million

kwanzas, in 2015, corresponding to 18% more than the previous year. This

figure was influenced by the positive evolution of net operating income

(in particular net interest income and earnings from financial transactions),

in spite of the growth of operating costs (derived from inflation, exchange

rate devaluation and wage revision) and provisions.

NET OPERATING INCOME

Net operating income increased by approximately 38%, compared to

2014, driven by the performance of net interest income and the earnings

from financial transactions, which recorded growth rates of 28% and

121%, respectively.

2015 2014(Million AOA)

Chan. %

Net interest income 11,320 28%

Net fees 4,300 10%

Earnings from financial transactions

3,365 121%

Other income 56 368 -85%

NET OPERATING INCOME 19,354 38%

Net interest income amounted to 14,446 million kwanzas in 2015. The

growth of this margin was essentially due to the increased average

volume, average rate of loans and average yield of public debt securities,

in spite of the higher average volume of deposits and the higher average

volume and rate of liquidity funding.

Net fees reached 4,724 million kwanzas in 2015, compared to 4,300

million kwanzas in 2014. The increased fees resulted from the favourable

evolution of fees related to credit operations and documentary credit,

notwithstanding the reduction observed in fees related to remittances

and cards.

Earnings from financial transactions amounted to 7,420 million kwanzas,

corresponding to an increase of 121% in relation to the previous

year, where the positive effect of the exchange rate devaluation was

par ticularly influential, despite the reduction of the supply of USD in

the Angolan foreign exchange market.

OPERATING COSTS

Operating costs, which aggregate staff costs, external supplies and services

and the depreciation and amortisation for the year, reached 12,295 million

kwanzas, in 2015 (9,815 million kwanzas in 2014), representing a 25%

increase in comparison to the previous year.

BUSINESS SUMMARY

NET INCOME

Million AOA

2013 2014 2015

4,872

5,741

6,760

NET OPERATING INCOME

Million AOA

2013 2014 2015

17,281

19,354

26,646

2015 27


Chan. %

Staff costs 4,227 39%

External supplies and services 4,314 8%

Depreciation and amortisation for the year

1,274 40%

OPERATING COSTS 9,815 25%

This evolution was essentially the result of the impact of the exchange rate

devaluation, the effect of inflation, the annual wage update and adjustments

derived from the career progression and increased number of Employees

(to meet the expansion of the commercial network and creation of a new

organic unit of the central services).

The efficiency ratio (cost-to-income) stood at 45.8% in 2015, an improvement

compared to the 50.9% recorded in 2014, due to the operating costs having

grown at a lower rate than that of net operating income.

PROVISIONS


Chan. %

Provisions for loans 2,524 165%

Other provisions -1 176 -101%

PROVISIONS 2,700 148%

Provisions for loans reached 6,697 million kwanzas in 2015, 165% more than in

the previous year, due to the worsening economic conditions associated to the

context in which the Bank operates.

PROFITABILITY

The return on average equity (ROAE) stood at 17.0% in 2015 (16.1% in 2014).

NET ASSETS

Total assets amounted to 342,914 million kwanzas as at 31 December 2015,

compared to 244,699 million kwanzas as at 31 December 2014, with this

net change corresponding to a 40% increase in the year under review.

FUNDS AND LOANS

Customer funds recorded impressive growth, of approximately 38%

year-on-year, amounting to 249,111 million kwanzas as at 31 December

2015.

The portfolio of gross loans increased by 17%, to 146,936 million kwanzas.

It should be stressed that BMA maintained its position of leadership in

support to the Angolan productive sector replacing imports through the

Angola Invest Programme (a programme created by the Executive in

partnership with the Commercial Banks).

The loan-to-deposit ratio fell by 11 p.p., from 65% in 2014 to 54% in 2015,

due to stronger growth of funds in relation to loans.

OPERATING COSTS

Million AOA

2013 2014 2015

9,0859,815

12,295

CUSTOMER FUNDS

Million AOA

2013 2014 2015

162,727

180,900

249,111

GROSS LOANS

Million AOA

86,653

125,542

146,936

2013 2014 2015

28

CREDIT QUALITY

The quality of the loan portfolio, assessed by the proportion of loans

overdue by more than 90 days, stood at 3.4% as at 31 December 2015

(3.2% as at 31 December 2014).

The coverage ratio of loans overdue by more than 90 days by provisions

evolved to 267% as at 31 December 2015, compared to 196% as at 31

December 2014.

SOLVENCY


Chan. %

Risk weighted assets (RWA) 219,547 25%

Qualified own funds 30,217 24%

SOLVENCY RATIO 13.8% -0.1 p.p.

As at 31 December 2015, the solvency ratio corresponded to 13.7% (-0.1

p.p. relative to 31 December 2014), a figure rather above the regulatory

minimum 10%.

DISTRIBUTION NETWORK

In 2015, BMA inaugurated 2 Branches and 1 Prestige Centre. As at 31

December 2015, the Bank had a network of 89 Retail Branches, 54 of which

are open on Saturday morning, 13 Prestige Centres and 8 Business Centres.

CUSTOMERS

As a result of the expansion of the network and the increasingly higher

penetration rate in the market by the oldest Branches, the number of

Customers grew by 12% in relation to the previous year.

REMOTE CHANNELS

As occurred in the previous year, Banco Millennium Angola showed strong

dynamics in the placement of Automatic Payment Terminals (EFTPOS –

electronic funds transfer at point of sale) and cards in 2015.

The total number of EFTPOS grew by 48% compared to the previous year.

The number of active cards stood at approximately 198 thousand by the

end of the year, corresponding to 33% growth over 2015.

A total number of 120 Automatic Teller Machines (ATM) had been installed

by the end of 2015.

MARKETING, COMMUNICATION AND SOCIAL RESPONSIBILITY

In 2015, the expansion of the network included the inauguration of 2

Branches and 1 Prestige Centre, leading to a total of 89 Retail Network

Branches, of which 54 are open on Saturday morning, 13 Prestige Centres

and 8 Business & Corporate Centres, two of which intended for the oil

industry. The number of Customers amounted to 597,263 in December

2015, having grown by 11.8% in relation to the previous year.

BRANCHES, BUSINESS CENTRES

AND PRESTIGE CENTRES

2013 2014 2015

Branches

Business Centres

Prestige Centres

13

8

89

110

12

8

87

76

82

95

107

NUMBER OF CUSTOMERS

2013 2014 2015

437,635

534,101

597,263

2015

29

EFTPOS

2013 2014 2015

1,215

1,938

2,859

ACTIVE CARDS

2013 2014 2015

120,436

148,785

198,186

The Easy Payment service was continued in 2015 for products and

services, with an increasing number of Customers using remote channels

of Millennium Angola, and corresponding reduction in physical visits to

the Branch. This service includes Internet Banking, SMS Banking, App

Millennium AO and the Contact Centre. Follow-up was also given to

the "I am + Millennium" campaign, a Customer loyalty programme which

attribute "Millenniuns" (points worth prizes) to Customers for their

intensive use of the Bank's products and services. The Woman Offer was

also re-launched, which is a series of products and services of exclusive

subscription by women, covering: a specific Woman demand account and

Multicaixa ATM card, a saving plan aimed at family protection, health and

automobile insurance and access to credit, which supports the creation and

development of business by Angolan female entrepreneurs. With respect

to saving, new products were launched with attractive growing rates at 24

months: the Always Rising term Deposit for the Mass Market segment, and

the Growing Rate Deposit for the Prestige segment. The Net Super Deposit

has also been launched, a term deposit at 30, 90, 180 and 360 days, of

exclusive constitution on Millennium Angola's website, with a promotional

differentiating rate (weekly) and subject to limited stock.

Regarding companies, the Bank has maintained its focus on Small and

Medium-Sized Enterprises (SME), through the Excellent SME initiative.

This innovative programme in the market seeks to distinguish, within the

entire group of Customers of Millennium Angola, the Companies which

are outstanding due to their good economic performance, professionalism,

financial solidity, qualified labour and position in the market. In 2015, 575

companies were distinguished in the 2nd Excellent SME Gala, a number

considerably higher than in the previous year (230), confirming the Bank's

affirmation in this segment. As a corollary of this positioning, Millennium

Angola upheld its strong leadership in all the indicators of the Angola Invest

Programme, a programme created by the Executive, in partnership with the

commercial banks, which seeks to boost credit concession to Micro, Small

and Medium-Sized Enterprises (MPME).

Aimed at attracting new talent, the Bank has maintained its participation

in employment fairs (in Luanda and Lisbon) and delivered presentations at

Universidade Agostinho Neto.

The Talent Management and Retention Policy included two new Programmes for Development of Skills –

Millenniuns High Potential, held in collaboration with Universidade Católica de Lisboa, and People Grow

(junior Employees aged below 35 years old with potential and employed for less than two years). A Process of

Certification of Managers of Individual and Company Customers has also been developed in partnership with

the Portuguese Bank Training Institute (IFB). In 2015, a total of 4,017 training hours through personal attendance

were administered and 6,136 training hours via e-learning.

Concerning the attribution of awards, BMA received a new certification of Software Quality based on ISO/IEC

25010, attributed by the prestigious technological institute ISQapave and SQS Portugal, and was distinguished

with the awards of Best Commercial Bank Angola 2015 by Capital Finance International (cfi.co), a highly reputed

British journal specialised in economic and financial affairs, and Best Internet Bank Angola 2015 by Global Banking

& Finance Review.

Recently, the Bank became one of the first members of the Angola Securities and Debt Stock Exchange

(BODIVA), after signing the contract qualifying it to trade securities issued by the State. The agreement allows

Millennium Angola to participate on behalf of its Customers in the Treasury Securities Registration Market

(MRTT), in the Wholesale Trading Market (MTG) and Continuous Trading Market (MTC).

Finally, the Bank has also invested in sponsorships and attendance of events, such as the Offshore World

Championship of Sport Fishing; the Benguela International Fair (FIB); the First Scientific Congress and Third

Symposium of Cardiology and Cardiac Surgery dedicated to the theme "40 Years Health – Conquests and

2015

30

Challenges towards Excellence"; the Angola Observatory – a study which raises a series of questions about how

the phenomenon of social ascension is processed and the models sought by Angolans for their lives and for the

future of their children. In art and music, BMA supported the painting exhibition "The Proverbial Singularity of the

Baobab Tree" by the artist Don Sebas Cassule at the Portuguese Cultural Centre, as well as the tour to Portugal

of the singer Yolanda Semedo (prescriber of the Millennium Angola brand).

Under Social Responsibility, the Bank continued its support to Lar de Nazaré, in Cacuaco, assisting vulnerable children.

HUMAN RESOURCES

In 2015, BMA's Policy on Human Resources continued with its strategy of consolidation, focused on talent

management and strengthening Millennium Culture among our People.

In this context of development which is intended to be sustainable, the assessment of performance, planning of

careers and overall enhancement of skills has acquired new vibrancy, with the implementation of human capital

development projects.

Likewise, and because the motivation, commitment and well-being of all the Employees are fundamental vectors

for success, new plans were also implemented in a structured form for Internal Communication and Internal

Social Responsibility.

Main accomplishments by areas of intervention:

RECRUITMENT AND SELECTION The focus on this activity has been replacement, with priority given to the recruitment and selection of high potential staff. 216 persons have been contracted, representing an increase of 7.2% relative to 2014, thus contributing to enhance the staff, once again, with most incidence in the Commercial Area, with 76% of the recruits.

The recruitment activity is sustained and supported by campaigns and actions, among which the following in particular:Partnerships with reference recruitment companies in the Angolan market;Agreements with the best Angolan higher education institutions;Participation in employment fairs (national and international);BMA presentation sessions at Universities;Advertisements in newspapers (national and international);

The Bank continued to offer scholarships to talented young people, giving priority to opportunities of academic and end of course internships.

TRAININGThroughout 2015, 161 training actions were carried out, corresponding to 4,017 training hours, with natural addressing of contents directed at duties of the Commercial Area, covering all the essential aspects for the good performance of daily activities, both from the technical and behavioural point of view.

The Certification of Managers of Individual and Company Customers was created in partnership with the Portuguese Bank Training Institute (IFB), aimed at conveying a series of technical skills and knowledge for this duty, with a component of training through physical attendance, essentially via e-learning. The success rate was 60% of passes.

Technical and behaviour training was also developed, together with Career Management, to support the development programmes People Grow and Millenniuns High Potential.

The e-learning training was followed up, with emphasis in the Money Laundering Course, in which 1,198 Employees were enrolled. The completion rate was 48%.

For the central services, specific technical and behavioural training was ministered, such as Development of Human Capital and Proactiveness, the General Labour Law and Disciplinary Process.

CAREER MANAGEMENTIn 2015, the Career Management area developed various actions aimed at valorising the existing talent at the Bank, developing skills, motivating and retaining our Employees, through actions such as:

Employee Management and Retention Programme;Motivational interviews;Mobility interviews;Monitoring of performance assessments;Assessments – Personal Development Analysis (PDA).

2015

31

Following these actions, two development programmes were successfully implemented:Millenniuns High Potential (advanced training programme – MBA in Bank Management, in partnership with Universidade Católica de Lisboa);People Grow (programme directed at Employees working at the Bank for less than two years and young recent graduates).

In this way, by using different management tools, we have managed to plan and monitor the growth of the Employees, stimulating their career progression through continuous and systematic focus on being driven by the business, Customer and results.

ADMINISTRATIVE AND STAFF MANAGEMENTBMA's staff grew by 7.2%, moving from 1,143 Employees in 2014 to 1,225 in 2015, which implied an increase of 82 new Employees, with the proportion of Angolans in the staff remaining stable, at around 98%.

Regarding services to Employees and their households, there was:An increase of the volume of travel by the end of the year (Development Programmes, People Grow, Certification of Managers, Integration Training, Family Party and Commercial Target Meetings);A high number of statements for acquisition of residence in central areas and acquisition of land for directed self-construction;Under the health benefits, the health insurance available to Employees and their household was maintained.

EMPLOYEE BRANCHThe Employee Branch is directed at the internal Customer, and focused its activities on the following topics:

Review of loan conditions: increase of the debt-to-income ratio and mortgage loans were changed from USD to AOA;All the Employees have access to the credit simulator;Easy Payment conditions with special pricing;Creation of the DP 9th Anniversary;Agreement with Millennium bcp, for the opening of accounts for Employees with advantageous conditions;Management of a monthly ceiling for purchase of foreign exchange.

INTERNAL COMMUNICATION AND SOCIAL RESPONSIBILITYIn 2015, and always with the strategy of attracting the loyalty of the internal Customer, reinforcement of the Company Culture and enhancement of the Organisational Atmosphere, the BMA Employee Centres (Solidarity, Culture and Sports) were constituted and stimulated, in order to develop and support the internal Social Responsibility activities. Various campaigns were developed around the theme of the Bank's anniversary month, Woman March, the Children's Month and Christmas, focusing on the distribution of toys to all the Employees' children aged between 0 and 18 years old.

TECHNICAL AREAThe main strategic mission of the technical area was to assure the reliability of the outputs, legal compliance, control and support to the maintenance and management of the information of the Department of Human Resources, in the execution of the budget and preparation of the management information, statistics and reports for the Organic Units of BMA, the Group's entities and the State.

Especially this year, consolidation was achieved in the use of the mechanism developed for the automatic processing of the cash shortage grant for Employees of the commercial services and central treasury.

Two People Grow Employees passed through the area, with whom a project was developed involving simulation of Employee cost and emotional receipt, still at an experimental stage.

QUALITY DEPARTMENT

In order to assure the continuous provision of quality service recognised by the users of Banco Millennium Angola,

the Quality Department has dedicated special attention to the Satisfaction Management Systems, providing

satisfaction questionnaires. The purpose of this survey is to identify weaknesses and vulnerabilities, for the subsequent

implementation of solutions to overcome them by the Organic Units involved.

Each report issued with the conclusions of the assessments that have been conducted is presented to the areas

concerned with the topics addressed, in order to endow them with information related to each assessment and

enable the incorporation of actions of improvement, as soon as opportune, in their procedures and processes.

This aims to achieve improved quality of the services provided, while maintaining the culture of rigour sustained by

initiative and attitude.

2015

ANNUAL REPORT2015

33

BEST COMMERCIAL BANK 2015

AWARDSAWARDS

BEST INTERNET BANK ANGOLA 2015

SOFTWARE QUALITY CERTIFICATE 2015-2016

DON SEBAS CASSULE EXHIBITION

EXHIBITIONSEXHIBITIONS

ANGOLA OBSERVATORY

SOCIAL RESPONSIBILITYSOCIAL RESPONSIBILITY

LAR DE NAZARÉ – HERMENEGILDA BENGE, VICE-PRESIDENT OF MILLENNIUM ANGOLA, HANDING OVER THE CHEQUE IN THE AMOUNT OF 1.000.000 AOA

BEST COMMERCIAL BANK 2015 BEST INTERNET BANK ANGOLA 2015

SOFTWARE QUALITY CERTIFICATE 2015 2016

SOCIAL RESPONSIBILITYSOCIAL RESPONSIBILITY

LAR DE NAZARÉ HERMENEGILDA BENGE VICE PRESIDENT

DON SEBAS CASSULE EXHIBITION ANGOLA OBSERVATORY

2015 Business Summary

34

FAIRSFAIRS

FIB 2015

1ST CONGRESS OF HOSPITAL JOSINA MACHEL1ST CONGRESS OF HOSPITAL JOSINA MACHEL 5TH CIS EMPLOYMENT FAIR5TH CIS EMPLOYMENT FAIR

EXPO FARMA 2015

2015

O FARMA 2015

FILDA 2015

FAIRSFAIRS

EXPO INDUSTRY 2015 EXP

FIBFILDA 2015

EXPO INDUSTRY 2015

2015

35

FAIRSFAIRS

UCAN EMPLOYABILITY FAIR 2015

FAIRSFAIRS

UCAN EMPLOYABILITY F

ELITE FAIR 2015

FAIR 2015

ELITE FAIR 2015

ULA EMPLOYABILITY FAIR 2015YABILITY FAIR 2015ULA EMPLOY

WOMAN OFFER

BRAND ACTIVATIONBRAND ACTIVATION

EASY PAYMENT AND I AM + MILLENNIUM

BRAND ACTBRAND ACTTIVATIONTIVATION

EASY PAYMENT AND I AM + MILLENNIUM OMAN OFFERWO

2015

36

EVENTSEVENTS

1ST EXCELLENT SME GALA 2ND I AM + MILLENNIUM RAFFLE

1ST INTERNET BANKING FORUM

36

EVENTSEVENTS

1ST EXCELLENT SME GALA

T INTERNET BANKING FORUM

ILLENNIUM RAFFLED I AM + M

1ST

2N

ANGOLA-SWITZERLAND ECONOMIC FORUM

2015

37

MASS MARKET LAUNCHES OF 2015 MASS MARKET LAUNCHES OF 2015

I AM + MILLENNIUM

EXCELLENT SME 2015 WOMAN OFFER

ALWAYS RISING DEPOSIT

2015

38

MASS MARKET LAUNCHES OF 2015 MASS MARKET LAUNCHES OF 2015

EASY PAYMENT SMS BANKING

ALWAYS RISING DEPOSIT

NET SUPER DEPOSIT

EFTPOS ADVANTAGE

2015

39

GROWING TERM DEPOSIT

PRESTIGE LAUNCH OF 2015 PRESTIGE LAUNCH OF 2015

DISTINCTIONS OF 2015 DISTINCTIONS OF 2015

GRO

DISDISSTINCTIONS OSTINCTIONS O

BEST COMMERCIAL BANK 2015

OWING TERM DEPOSIT

OF 2015 OF 2015

BEST INTERNET BANK ANGOLA 2015

2015

40 2015

DISTRIBUTION NETWORK

BENGO

LUANDA

BENGUELA

HUÍLA

KWANZA-NORTE

KWANZA-SUL

NAMIBE

LUNDA-NORTEMALANGE

LUNDA-SUL

MOXICO

HUAMBO CUNENE

BIÉ

ZAIRE

KUANDO-KUBANGO

UÍGE

CABINDA

3

2

1 1

1

1

157

4

2

5

3

1

1

1

1

2

2

BRANCHES CONTACTS

1.º DE MAIO ATRIUMRua Comandante Nicolau Gomes Spencer – Maianga – LuandaTel.: 222 632 431 / 222 632 432 / 923 167 044 / 912 000 446

ALVALADE Rua Comandante Stona – Maianga – LuandaTel.: 222 632 194 / 222 632 199 / 923 167 020 / 912 000 420

AMBRIZRua das Irmãs – Ambriz – BengoTel.: 222 632 113 / 222 632 118 / 923 167 045 / 912 000 461

AMÍLCAR CABRAL (*) Rua Amílcar Cabral, N.º 185-187 – Mutamba – LuandaTel.: 222 632 411 / 222 632 420 / 923 167 005 / 912 000 405

AVENIDA DE PORTUGALAvenida de Portugal, N.º 77 – LuandaTel.: 222 632 423 / 222 632 424 / 923 167 002 / 912 000 402

BAIRRO POPULAR (*) Rua Stuart Carvalhais, 19 – LuandaTel.: 222 264 692

BENFICA BRICOMAT (*) Bairro Benfica, Município da Samba – LuandaTel.: 222 632 547 / 222 632 687 / 923 167 084 / 912 000 437

BENFICA POSTO CONTROLE (*) Via Expresso Benfica – Viana Tel.: 222 632 170 / 222 632 171 / 923 167 093 / 912 000 457

BENGUELA CORINGERua Dr. António Agostinho Neto, N.º 6, R/C – BenguelaTel.: 222 632 131 / 222 632 132 / 923 167 047 / 912 000 463

BENGUELA MERCADO (*) Rua Dr. António José de Almeida, N.º 112 - 116 – BenguelaTel.: 222 632 123 / 222 632 124 / 923 167 046 / 912 000 462

(*) Open on Saturday. (Continues)

2015 41

(Continuation)

BRANCHES CONTACTS

BOAVISTA (*)

Estrada de Cacuaco, km 1.2 – Bairro da Boavista Município do Sambizanga – LuandaTel.: 222 632 603 / 222 632 604 / 923 167 035 / 912 000 435

CABINDA CABASSANGOBairro Cabassango, Estrada Nacional Subantando – CabindaTel.: 222 632 134 / 222 632 142 / 923 167 048

CABINDA DEOLINDA RODRIGUES

Rua Comendador Henrique Serrano S/N – Bairro Deolinda Rodrigues – CabindaTel.: 222 632 427 / 222 632 428 / 923 167 049 / 912 000 470

CABINDA RUA DO COMÉRCIO (*) Rua do Comércio – Ed. Nogueira, R/C – CabindaTel.: 222 632 134 / 222 632 142 / 923 167 048 / 912 000 494

CACUACO (*) Rua Direita de Cacuaco, N.º 8 L – LuandaTel.: 222 632 600 / 222 632 601 / 923 167 006 / 912 000 406

CALEMBA (*) Estrada de Camama, km 14 A – Viana LuandaTel.: 222 632 667 / 222 632 453 / 923 167 083 / 912 000 440

CAMAMA ARCO IRÍSRua Camama – Auto-estrada, acesso a rua do Condomínio Austin – Luanda Tel.: 222 632 496 / 222 632 497 / 923 167 117

CAMAMA ESTRADA DIREITA (*) Rua do Cemitério – Comuna do Camama – Município de Belas Tel.: 222 632 114 / 222 632 141 / 923 167 105 / 912 000 450

CAMAMA VILA ESTORIL (*) Comuna Vila Estoril, Bairro Vitória Certa – Município do Kilamba KiaxiTel.: 222 632 557 / 222 632 179 / 923 167 087 / 912 000 449

CAOP VELHA (*) Caop Velha – Comuna da Funda – LuandaTel.: 222 632 648 / 222 632 176 / 923 167 085 / 912 000 442

CATETE IMOFILEstrada de Catete, km 47 – Cerâmica do BengoTel.: 222 632 152 / 222 632 154 / 923 167 051 / 912 000 465

CATETE VILARua Cadavés – Vila de Catete – BengoTel.: 222 632 146 / 222 632 151 / 923 167 050 / 912 000 464

CAXITOBairro Riceno – Comuna de Caxito – BengoTel.: 222 632 185 / 222 632 458 / 912 000 477 / 923 167 115

CENTRO COMERCIAL DO GOLFE (*)

Rua 17 de Setembro – Kilamba Kiaxi – LuandaTel.: 222 632 433 / 222 632 435 / 923 167 036 / 912 000 436

CENTRO LOGÍSTICO TALATONA (*) Via CA3, Loja N.º L – Município da Samba – Luanda Tel.: 222 632 443 / 222 632 445 / 923 167 038 / 912 000 438

CHE GUEVARA (*) Rua Che Guevara, N.º 40-41 – LuandaTel.: 222 632 605 / 222 632 606 / 923 167 019 / 912 000 425

COMANDANTE GIKA (*)

Rua Comandante Gika, Torre A Bloco A2, Loja C, Piso 1 – Bairro Alvalade – Município da MaiangaTel.: 222 632 429 / 222 632 430 / 923 167 018 / 912 000 418

COMANDANTE VALÓDIA (*) Av. Cmdt. Valódia, N.º 252-254 – LuandaTel.: 222 440 179 / 923 167 012

CÓNEGO MANUEL DAS NEVES (*)

Rua Cónego Manuel das Neves, N.º 381 R/C – Município do Sambizanga – LuandaTel.: 222 432 183 / 222 432 199 / 222 442 574 / 222 443 983 / 222 446 762 / 222 449 184 / 923 167 042

CONGOLESES (*) Avenida Hoji Ya Henda S/N – Bairro Rangel – Município do Rangel – LuandaTel.: 222 632 618 / 222 632 619 / 923 167 010 / 912 000 410

COQUEIROSRua Francisco das Necessidades Castelo Branco, N.º 21-21s, R/C – LuandaTel.: 222 632 454 / 222 632 455 / 923 167 015 / 912 000 415

CRUZEIRORua Cónego Manuel das Neves N.º 144-148 – Município do Sambizanga – Luanda Tel.: 222 632 191 / 222 632 692 / 923 167 078 / 912 000 451

CUBALGaveto entre a Rua Diogo Cão (actual Rua Joaquim Kapango) e a Rua da Índia (actual Dack-Doy) – cidade do Cubal – Província de BenguelaTel.: 222 632 159 / 222 632 161 / 923 167 052 / 912 008 414

DUNDOLocated on the right side of the avenue that leads to the airport and that is in front of Sonangol gas station – Chitato – Lunda-NorteTel.: 222 632 162 / 222 632 163 / 923 167 053 / 912 000 471


42

(Continuation)

BRANCHES CONTACTS

ESTRADA DA CUCA (*) Rua Ngola Kiluanje N.º 217 – LuandaTel.: 222 632 465 / 222 632 466 / 923 167 003 / 912 000 403

FILDA (*) Rua da Filda, Loja A, Piso 0, bloco N.º 1 – Cazenga – LuandaTel.: 222 632 468 / 222 632 469 / 923 167 033 / 912 000 433

GAMEK (*) Avenida 21 de Janeiro – LuandaTel.: 222 632 471 / 222 632 472 / 923 167 021 / 912 000 421

HUAMBO JARDIM DA CULTURA Rua 1.º Dezembro, Cidade Alta – HuamboTel.: 222 632 166 / 222 632 169 / 923 167 055 / 912 000 467

HUAMBO MARIANO MACHADO (*) Rua Mariano Machado, N.º34 – HuamboTel.: 222 632 164 / 222 632 165 / 923 167 054 / 912 000 466

JOAQUIM KAPANGORua Joaquim Kapango, N.º 135 – LuandaTel.: 222 632 614 / 222 632 615 / 923 167 022 / 912 000 422

KINAXIXIRua Comandante Valódia, Bairro Patrice Lumumba, N.º 8372, Zona 7, N.º 37/41, R/C – Município de LuandaTel.: 222 632 120 / 222 632 139 / 923 167 097 / 912 000 458

KUITO (*) Rua Joaquim Kapango, Bié – KuitoTel.: 222 632 182 / 222 632 187 / 923 167 091 / 912 000 468

KWAME NKRUMAHRua Kwame Nkrumah, N.º 173 R/C – Ingombotas – LuandaTel.: 222 632 682 / 222 632 685 / 923 167 016 / 912 000 416

LAR DO PATRIOTA (*) Estrada do Lar do Patriota S/N, Bairro Benfica – Município da Samba – LuandaTel.: 222 632 473 / 222 632 476 / 923 167 043 / 912 000 445

LARGO DO AMBIENTE Gaveto, entre a Rua Major Kanhangulo e o Largo do AmbienteMunicípio das Ingombotas – LuandaTel.: 222 632 144 / 222 632 135 / 923 167 072 / 912 000 434

LOBITO (*) Rua 15 de Agosto N.º 34 R/C – Lobito – BenguelaTel.: 222 632 188 / 222 632 190 / 923 167 057 / 912 000 469

LOBITO RETAIL PARK (*) Zona Industrial, Bairro da Luz – Benguela Tel.: 222 632 531 / 222 632 636 / 923 167 081 / 912 000 490

LUBANGO AEROPORTO Avenida 4 de Fevereiro – HuílaTel.: 222 632 691 / 222 632 155 / 923 167 059 / 912 000 489

LUBANGO ARCO-ÍRISAvenida Heróis da Cahama – Lubango HuílaTel.: 222 632 569 / 222 632 145 / 923 167 080 / 912 000 488

LUBANGO CENTRO (*) Gaveto Aníbal de Melo e Cmdt. Hoji-Ya-Henda – Lubango – HuílaTel.: 261 225 780 / 261 225 781 / 261 225 782 / 923 167 059

LUENA (*) Rua Pioneiro Ngangula – Luena – MoxicoTel.: 222 632 477 / 222 632 452 / 923 167 060 / 912 000 487

MALANGE (*) Rua Comandante Dangereux – MalangeTel.: 222 632 686 / 222 632 688 / 923 167 062 / 912 000 486

MARGINALAvenida 4 de Fevereiro N.º 49 – LuandaTel.: 222 632 620 / 222 632 621 / 923 167 017 / 912 000 417

MARIEN NGOUABI (*)

Rua Marien Ngouabi (“António Barroso”), N.º 85, Zona 5, Maianga – LuandaTel.: 222 632 487 / 222 632 488 / 923 167 030 / 912 000 430

MAXI HOJI YA HENDA (*)

Rua Porto Santos N.º 24, Bairro Hoji Ya Henda – Município do Cazenga – Luanda Tel.: 222 632 695 / 222 632 408 / 923 167 079 / 912 000 448

MAXI ZANGO (*) Retail Park Zango – Bairro do Zango – LuandaTel.: 222 632 684 / 222 632 566 / 923 167 082 / 912 000 453

MENONGUE (*) Rua do Aeroporto – Menongue – Kuando KubangoTel.: 222 632 624 / 222 632 625 / 923 167 063 / 912 000 476

MISSÃORua da Missão, N.º 43 – LuandaTel.: 222 632 501 / 222 632 506 / 923 167 008 / 912 000 408

MORRO BENTO (*) Avenida 21 de Janeiro, Município da Samba – LuandaTel.: 222 632 607 / 222 632 608 / 923 167 028 / 912 000 428

MULEMBA (*) Estrada de Cacuaco, N.º 10 R/C – Cacuaco – LuandaTel.: 222 632 511 / 222 632 515 / 923 167 031 / 912 000 431

NAMIBEAvenida Hoji Ya Henda – NamibeTel.: 222 632 626 / 222 632 627 / 923 167 064 / 912 000 477


2015

43

(Continuation)

BRANCHES CONTACTS

NDALATANDO (*) Estrada Direita Luanda Malange, Cazengo – Kwanza-NorteTel.: 222 632 628 / 222 632 629 / 923 167 065 / 912 000 478

NEGAGERua I, Bairro Popular, N.º 2 – Negage – UígeTel.: 222 632 631 / 222 632 632 / 923 167 066 / 912 000 479

NOVA VIDA (*) Estrada do Projecto Nova Vida, Lote N.º 2055 E – Kilamba Kiaxi – LuandaTel.: 222 632 126 / 222 632 128 / 923 167 077 / 912 000 443

ONDJIVA (*) Bairro Naipalala, Município do Kwanhama – Ondjiva – CuneneTel.: 222 632 650 / 222 632 652 / 923 167 056 / 912 000 480

PORTO AMBOIMRua Saidy Mingas, Zona B – Porto Amboim – Kwanza-SulTel.: 222 632 653 / 222 632 654 / 923 167 067 / 912 000 481

PRENDA (*) Rua Comandante Arguelles, N.º 2 – Maianga – LuandaTel.: 222 632 622 / 222 632 623 / 923 167 026 / 912 000 426

RAINHA GINGA (*) Rua Rainha Ginga, N.º 30 – Ingombota – LuandaTel.: 222 632 689 / 222 632 181 / 923 167 086 / 912 000 491

REI KATYAVALARua Rei Katyavala, N.º 109 R/C A e B – LuandaTel.: 222 632 192 / 222 632 193 / 923 167 009

ROCHA PINTO (*) Avenida 21 de Janeiro – Rocha Pinto Tel.: 222 632 437 / 222 632 438 / 923 167 103 / 912 000 455

SAGRADA FAMÍLIA (*) Avenida Comandante Gika, N.º 311 R/C, Zona 5 – Maianga – LuandaTel.: 222 632 516 / 222 632 520 / 923 167 027 / 912 000 427

SAMBA BAIRRO AZUL (*) Travessa da Samba 1.º R/C – Município da SambaTel.: 923 167 011

SAMBA COMISSARIADORua da Samba, 197-199 – Bairro do Prenda – LuandaTel.: 222 632 156 / 222 632 158 / 923 167 106 / 912 000 452

SÃO PAULO COMANDANTE BULA

Rua Comandante Bula, N.º 45 R/C – Município do Sambizanga – LuandaTel.: 222 632 522 / 222 632 523 / 923 167 032 / 912 000 432

SÃO PAULO NDUNDUMA (*) Rua Ndunduma N.º 222 – Município do Sambizanga – LuandaTel.: 222 632 529 / 222 632 530 / 923 167 001 / 912 000 401

SAURIMO (*) Bairro Agostinho Neto – Saurimo – Lunda-SulTel.: 222 632 655 / 222 632 659 / 923 167 068 / 912 000 482

SONILS (*) Base Sonils – BoavistaTel.: 222 632 140 / 222 632 172 / 923 167 102 / 912 000 459

SOYORua Principal do Aeroporto Série 6, Quarteirão 5 casa 19 – Soyo – ZaireTel.: 222 632 668 / 222 632 670 / 923 167 069 / 912 000 483

SOYO BASE KWANDAEdifício Alfândega, Base do Kwanda – Soyo – Zaire Tel.: 222 632 167 / 222 632 168 / 923 167 089 / 912 000 493

SUMBE (*)

Rua da 2.ª Guerra da Libertação Nacional, Largo Comandante Kassanje – Cidade do Sumbe – Kwanza-SulTel.: 222 632 672 / 222 632 674 / 923 167 070 / 912 000 484

TALATONA CIDADE FINANCEIRAVia S8 – Talatona – LuandaTel.: 222 632 198 / 222 632 482 / 923 167 104 / 912 000 461

TALATONA IMBONDEIROVia AL 16, S/N – Bairro Talatona – Município da Samba – LuandaTel.: 222 632 534 / 222 632 537 / 923 167 024 / 912 000 424

TALATONA MAXI (*) Avenida Pedro de Castro Van-Dúnem Loy (nas instalações da Maxi) – LuandaTel.: 222 632 546 / 222 632 549 / 923 167 013 / 912 000 413

UÍGE (*) Rua Dr. António Agostinho Neto, Loja N.º 5 – Uíge Tel.: 222 632 679 / 222 632 681 / 923 167 071 / 912 000 485

VIANA ESTALAGEM (*) Estrada de Catete km 12, S/N – Município de Viana – LuandaTel.: 222 632 616 / 222 632 617 / 923 167 023 / 912 000 423

VIANA PARK (*) Estrada de Calumbo, Pólo Industrial – Município de Viana – LuandaTel.: 222 632 594 / 222 632 598 / 923 167 039 / 912 000 439

VIANA PINGO DE ÁGUA (*)

Loteamento Centro Ortopédico, Quarteirão C, lote 7, Bairro da Sanzala – Município de Viana – LuandaTel.: 222 632 136 / 222 632 137 / 923 167 094 / 912 000 456

VIANA VILA (*) Rua 11 de Novembro N.º 16 – Município de Viana – LuandaTel.: 222 632 555 / 222 632 585 / 923 167 004 / 912 000 4404

ZANGOProjecto do Zango, Quadra G, Rua G2 – Município de Viana – LuandaTel.: 222 632 612 / 222 632 613 / 923 167 041 / 912 000 441


2015

44

Rainha Ginga

Rua da Rainha Ginga, N.º 83 – Luanda

Tel.: 222 632 119 / 923 167 034 / 912 000 492

Talatona Imbondeiro

Via AL 16, S/N – Bairro Talatona – Município da Samba

Tel.: 222 632 697 / 222 632 440 / 923 167 025 / 912 000 473

LUANDA

Oil Industry

Cidade Financeira Via S8, Talatona – Luanda Sul

Tel.: 222 632 614 / 222 632 615 / 923 167 022

Financial City

Cidade Financeira Via S8, Talatona – Luanda Sul

Tel.: 222 632 416

Comandante Gika

Rua Comandante Gika, Torre A, Bloco A2,

Loja C, Piso 1 – Luanda

Tel.: 222 632 100 / 923 167 108

BUSINESS AND CORPORATE CENTRES

2015

45

Viana Park

Estrada de Calumbo, Pólo Industrial

– Município de Viana – Luanda

Tel.: 222 632 698 / 222 632 699 / 923 167 029 / 912 000 475

Marginal

Av. 4 de Fevereiro N.º 49 – Luanda

Tel.: 222 632 586 / 923 167 040 / 912 000 447

Sonils Corporate Centre

Base Sonils, Boavista – Luanda

Tel.: 222 632 133 / 923 167 101 / 912 000 460

PRESTIGE CENTRES CONTACTS

ALVALADERua Comandante Stona – Maianga – LuandaTel.: 222 632 481 / 923 167 114

BENGUELA MERCADORua Dr. António José de Almeida, 112-116Tel.: 222 632 123 / 222 632 124 / 923 167 096

CABINDA RUA

DO COMÉRCIORua do Comércio – Ed. Nogueira, R/CTel.: 222 632 142 / 222 632 134 / 923 167 107 / 912 000 495

CENTRO LOGÍSTICO

DE TALATONAVia CA3 Loja N.º L – Município da Samba – LuandaTel.: 222 632 119 / 222 632 184 / 923 167 075 / 912 000 454

COMANDANTE GIKARua Comandante Gika, Torre A, Bloco A2, Loja C, Piso 1 – LuandaTel.: 222 632 429 / 222 632 430 / 923 167 074 / 912 000 419

JOAQUIM KAPANGORua Joaquim Kapango, N.º 135 R/C – LuandaTel.: 923 167 116 / 222 632 112

LOBITO RETAIL PARKZona Industrial, Bairro da Luz – BenguelaTel.: 222 632 531 / 222 632 636 / 923 167 090

LUBANGO CENTROGaveto Aníbal de Melo e Cmdt. Hoji-Ya-Henda – Lubango – HuílaTel.: 261 225 780 / 261 225 781 / 923 167 096

MARGINALAvenida Marginal N.º 49 – LuandaTel.: 222 632 620 / 222 632 621 / 923 167 073 / 912 000 429

RAINHA GINGARua Rainha Ginga, N.º 30 – LuandaTel.: 222 632 180 / 923 167 113

SÃO PAULO COMANDANTE

BULARua Comandante Bula, N.º 45 R/C – Município do Sambizanga – LuandaTel.: 222 632 178 / 923 167 111

TALATONA CIDADE

FINANCEIRAVia S8 Talatona – Luanda SulTel.: 923 167 109

VIANA PARKEstrada de Calumbo, Pólo Industrial – Município de Viana – LuandaTel.: 222 632 177 / 923 167 110

2015

FINANCIAL STATEMENTS

ANNUAL REPORT2015

48 2015

as at 31 December 2015 and 2014 Thousand AOA

Notes 2015 2014

ASSETS

DISPOSABLE ASSETS 4 36,683,909

LIQUIDITY INVESTMENTS 5 11,940,781

Inter-financial money market transactions 11,938,556

Investments in gold and other precious metals 2,225

SECURITIES 6 45,826,816

Trading –

Available for sale 45,826,816

Held to maturity –

DERIVATIVE FINANCIAL INSTRUMENTS 7 –

LOANS IN THE PAYMENT SYSTEM 8 260,619

FOREIGN EXCHANGE TRANSACTIONS 9 2,650,272

LOANS 10 117,748,249

Loans 125,541,749

(-) Provisions for bad debt (7,793,500)

OTHER VALUES 11 2,782,746

FIXED ASSETS 26,775,291

Financial fixed assets 12 2,961,826

Tangible fixed assets 13 19,099,514

Intangible fixed assets 13 4,713,951

TOTAL ASSETS 244,668,683

DEPOSITS 14 180,899,911

Demand deposits 95,982,876

Term deposits 84,917,035

LIQUIDITY FUNDING 15 16,618,162

Inter-financial money market transactions 16,618,162

DERIVATIVE FINANCIAL INSTRUMENTS 7 –

OTHER FUNDING - 7,104

Other contracted funding - 7,104

LIABILITIES IN THE PAYMENT SYSTEM 16 2,023,433

FOREIGN EXCHANGE TRANSACTIONS 17 2,641,786

OTHER LIABILITIES 18 3,723,222

PROVISIONS FOR PROBABLE LIABILITIES 19 662,661

TOTAL LIABILITIES 206,576,279

EQUITY 20 38,092,404

Share capital 4,009,894

Reserves and funds 28,040,838

Adjustments to fair value of financial assets 300,471

Net income for the year 5,741,201

TOTAL LIABILITIES + EQUITY 244,668,683

EARNINGS PER SHARE 0.575

FINANCIAL STATEMENTS

2015 49


Notes 2015 2014

I. NET INTEREST INCOME (II+III) 24 11,320,401

II.INCOME FROM FINANCIAL INSTRUMENTS (ASSETS) (1+2+3) 16,064,337

1. Income from liquidity Investments 512,046

2. Income from securities 3,068,330

3. Income from loans 12,483,961

III. (-) COSTS OF FINANCIAL INSTRUMENTS (LIABILITIES) (4+5) (4,743,936)

4. Costs of deposits (4,249,010)

5. Liquidity funding costs (494,343)

6. Other funding costs - (583)

IV. EARNINGS FROM TRADING AND FAIR VALUE ADJUSTMENTS 25 -

V. EARNINGS FROM FOREIGN EXCHANGE TRANSACTIONS 26 3,364,807

VI. EARNINGS FROM FINANCIAL SERVICES RENDERED 27 4,204,312

VII. (-) PROVISIONS FOR BAD DEBT AND PROVISION OF GUARANTEES 19 (2,597,887)

VIII. EARNINGS FROM FINANCIAL BROKERAGE (I+IV+V+VI+VII+VIII) 16,387,369

IX. (-) ADMINISTRATIVE AND MARKETING COSTS (6+7+8+9+10+11) (10,032,155)

7. Staff 28 (4,226,781)

8. External supplies 29 (4,218,148)

9. Tax and rates not incident on earnings 30 (215,724)

10. Penalties applied by regulatory authorities 30 (1,268)

11. Depreciation and amortisation 30 (1,274,498)

X.(-) PROVISIONS FOR OTHER VALUES AND PROBABLE LIABILITIES 31 (99,119)

XI. EARNINGS FROM FINANCIAL FIXED ASSETS 32 405,481

XII. OTHER OPERATING INCOME AND COSTS 31 178,739

XIII.OTHER OPERATING INCOME AND COSTS (XI+XII+XIII+XIV) (9,547,054)

XIV. OPERATING EARNINGS (IX+X+XV+XVI) 6,840,315

XV. NON-OPERATING EARNINGS 33 (81,082)

XVI.EARNINGS BEFORE TAX AND OTHER CHARGES (XVII+XVIII) 6,759,233

XVII. (-) CHARGES ON CURRENT EARNINGS 21 (1,018,032)

XVIII. NET CURRENT EARNINGS (XIX+XX) 5,741,201

XIX. NET INCOME FOR THE YEAR (XXI+XXII) 5,741,201

50


CONTIF Code Description 2015 2014

NET INTEREST CASH INCOME CASH FLOW (I+II) 10,690,830

I.INCOME RECEIVED FROM DERIVATIVE FINANCIAL INSTRUMENTS ASSETS (1+2+3+4)

15,293,323

1. 6.10.10.10.10.20 Income received from liquidity investments 667,232

2. 6.10.10.10.10.30 Income received from securities 3,039,167

3. 6.10.10.10.10.40 Income received from derivative financial instruments - -

4. 6.10.10.10.10.70 Income received from loans 11,586,924

II.(-) PAYMENT OF COSTS OF FINANCIAL INSTRUMENTS LIABILITIES (5+6+7+8+9)

(4,602,493)

5. 6.10.10.10.20.10 Payment of costs of deposits (4,119,100)

6. 6.10.10.10.20.20 Payment of liquidity funding costs (483,393)

7. 6.10.10.10.20.30 Payment of funding costs related to securities - -

8. 6.10.10.10.20.40 Payment of costs of derivative financial instruments - -

9. 6.10.10.10.20.70 Payment of other funding costs - -

IV. 6.10.10.20CASH FLOW OF EARNINGS FROM TRADING AND ADJUSTMENTS TO FAIR VALUE

-

V. 6.10.10.60 CASH FLOW OF EARNINGS FROM FINANCIAL TRANSACTIONS 3,177,152

VI. 6.10.10.80 CASH FLOW OF EARNINGS FROM FINANCIAL SERVICES RENDERED 4,300,048

VII. 6.10.10.95CASH FLOW OF EARNINGS FROM INSURANCE PLANS, CAPITALISATION AND SUPPLEMENTARY HEALTH

- -

VIII.OPERATING CASH FLOW OF FINANCIAL BROKERAGE (I+II+IV+V+VI+VII)

18,168,029

IX. 6.10.75CASH FLOW OF EARNINGS FROM GOODS, PRODUCTS AND OTHER SERVICES

- -

10. 6.10.80.10 (-) Payment of administrative and marketing costs (8,465,680)

11. 6.10.80.30 (-) Payment of other charges on earnings (1,410,079)

12. 6.10.80.50 Cash flow of the settlement of transactions in the payment system (281,457)

13. 6.10.80.80 Cash flow of other values and other liabilities 102,330

14. 6.10.80.90 Income received from financial fixed assets - -

15. 6.10.80.99 Cash flow of other operating costs and income 227,749

X.OTHER OPERATING INCOME AND COSTS RECEIVED AND PAID (10+11+12+13+14+15)

(9,827,137)

XI. CASH FLOW OF OPERATIONS (VIII+IX+X) 8,340,893

16. 6.20.10.20 Cash flow of liquidity investments 20,856,663

17. 6.20.10.30 Cash flow of investments in securities (assets) (3,951,509)

18. 6.20.10.40 Cash flow of investments in derivative financial instruments - -

19. 6.20.10.60 Cash flow of investments in foreign exchange transactions (789,873)

20. 6.20.10.70 Cash flow of investments in loans (37,992,012)

(Continues)

2015

51

(Continuation) Thousand AOA

CONTIF Code Description 2015 2014

XII.CASH FLOW OF INVESTMENTS IN FINANCIAL BROKERAGE (16+17+18+19+20)

(21,876,731)

XIII. 6.20.80 CASH FLOW OF INVESTMENTS IN OTHER VALUES - -

21. 6.20.90.10 Cash flow of investments in fixed assets (2,211,197)

22. 6.20.90.20 Cash flow of earnings from divestment of fixed assets (76,851)

23. 6.20.90.80 Cash flow of other non-operating gains and losses -

XIV. CASH FLOW OF FIXED ASSETS (21+22+23) (2,288,048)

XV. CASH FLOW OF INVESTMENTS (XII+XIII+XIV) (24,164,779)

24. 6.30.20.10 Cash flow of financing with deposits 11,875,814

25. 6.30.20.20 Cash flow of financing with liquidity funding 3,442,956

26. 6.30.20.30 Cash flow of financing with funding related to securities - -

27. 6.30.20.40 Cash flow of financing with derivative financial instruments - -

28. 6.30.20.60 Cash flow of financing with foreign exchange transactions 810,884

29. 6.30.20.70 Cash flow of financing with other funding - 7,104

XVI.CASH FLOW OF FINANCIAL BROKERAGE FINANCING (24+25+26+27+28+29)

16,136,757

XVII. 6.30.30 CASH FLOW OF FINANCING WITH MINORITY INTERESTS - -

30. 6.30.40.10 Revenue from share capital increases - -

31. 6.30.40.20 (-) Payments due to share capital reductions - -

32. 6.30.40.30 (-) Payment of dividends - -

33. 6.30.40.40 Revenue from divestment of own treasury shares - -

34. 6.30.40.50 (-) Payments due to the acquisition of own treasury shares - -

XVIII. CASH FLOW OF FINANCING WITH EQUITY (30+31+32+33+34) - -

XIX. 6.30.80 CASH FLOW OF FINANCING WITH OTHER LIABILITIES - -

XX. CASH FLOW OF FINANCING (XVI+XVII+XVIII+XIX) 16,136,757

OPENING BALANCE OF DISPOSABLE ASSETS FOR THE PERIOD 36,371,038

6.90.10 CLOSING BALANCE OF DISPOSABLE ASSETS FOR THE PERIOD 36,683,909

6.90.10 CHANGES IN DISPOSABLE ASSETS (XI+XV+XX) 312,871

2015

52

as at 31 December 2015 Thousand AOA

Share capital

Legal reserves

Other reserves

Issue premium

Potential earnings

Net income for the year

Total equity

BALANCE AS AT 31 DECEMBER 2014 4,009,894 3,934,908 16,975,465 7,130,465 300,471 5,741,201 38,092,404

Effects of adjustments in securities available for sale

- - - - 207,097 - 207,097

Effects of tax charges on potential earnings - - - - (62,129) - (62,129)

Constitution of reserves 1,148,240 4,592,961 - - (5,741,201) -

Net income for the year of 2015 - - - - 6,759,876 6,759,876

BALANCE AS AT 31 DECEMBER 2015 4,009,894 5,083,148 21,568,426 7,130,465 445,439 6,759,876 44,997,249

as at 31 December 2014 Thousand AOA

Share capital

Legal reserves

Other reserves

Issue premium

Potential earnings

Net income for the year

Total equity

BALANCE AS AT 31 DECEMBER 2013 4.009.894 2.960.414 13.077.487 7.130.465 943.613 4.872.472 32.994.345

Effects of adjustments in securities available for sale

- - - - (1.022.468) - (1.022.468)

Effects of tax charges on potential earnings - - - - 379.326 - 379.326

Constitution of reserves 974.494 3.897.978 - - (4.872.472) -

Net income for the year of 2014 - - - - 5.741.201 5.741.201

BALANCE AS AT 31 DECEMBER 2014 4.009.894 3.934.908 16.975.465 7.130.465 300.471 5.741.201 38.092.404

2015

2015 53

as at 31 December 2015 and 2014

NOTES TO THE FINANCIAL STATEMENTS

(Values in thousand Angolan kwanzas – '000 AOA, unless explicitly indicated otherwise, pursuant to Notice

number 15/2007, of 12 September)

1. INTRODUCTION

Banco Millennium Angola, S.A. (hereinafter also referred to as "Bank" or "BMA"), with head office in Ingombota

at Avenida de Portugal, number 77, Luanda, develops its activity in the area of commercial banking, reflected in

financial operations and the provision of services permitted to commercial banks pursuant to the legislation in

force, namely foreign exchange transactions, credit concession and attraction of deposits of individual, institutional

and company Customers.

In order to achieve its objectives, the Bank has a commercial network on Angolan territory which, as at 31

December 2015, reached 110 Branches, where it should be noted that two of these opened during the last year.

BMA resulted from the transformation of the Angolan Branch of Banco Comercial Português into a bank

constituted under local law, with the consequent integration of all its Assets and Liabilities, under authorisation

of the Council of Ministers of 22 February 2006. The public deed of incorporation was signed on 3 April 2006.

Regarding the shareholder structure and as detailed in Note 20, the Bank is majority held by Banco Comercial

Português, S.A. (BCP Group) where Note 21 describes the main balances and transactions with companies of

the BCP Group and other related entities.

2. COMPARABILITY OF THE INFORMATION

The annual financial statements presented herein were published in a manner enabling comparison with those

of the previous period. The Bank's financial statements presented herein were prepared in accordance with the

Accounting Plan for Financial Institutions (CONTIF).

3. BASIS OF PRESENTATION AND SUMMARY OF THE MAIN ACCOUNTING POLICIES

3.1. BASIS OF PRESENTATIONThe financial statements presented in this report were prepared on a going concern basis, according to the

ledgers and records kept by the Bank, and pursuant to the accounting principles established in the CONTIF,

as defined in Instruction 9/7, of 19 September, of the National Bank of Angola (hereinafter also referred to as

"BNA") which was enforced as of 1 January 2010, and Directive number 4/DSI/2011, which establishes the

compulsory adoption of the international accounting standards IAS/IFRS for all matters related to accounting

procedures and criteria which are not established in the CONTIF.

The Bank's individual and consolidated financial statements relative to the financial year ended on 31 December

2015 were approved by the Board of Directors on 25 January 2016.

The Bank's financial statements as at 31 December 2015 and 31 December 2014 are expressed in thousand

Angolan kwanzas (AOA), pursuant to BNA Notice number 15/2007, ar ticle 5, whereby all the assets and

liabilities denominated in foreign currency were converted at the reference average exchange rate published by

the BNA on the reporting date.

54

As at 31 December 2015 and 2014, the exchange rates relative to the AOA of the currencies to which the Bank

is most exposed are the following:

Average rate Rate of 31.12.2014

2015 2014 2015 2014

USD 98.291 102.863

EUR 130.406 125.195

The main accounting principles underlying the preparation of the financial statements are presented below:

3.2. ACCOUNTING PRINCIPLES

The Bank recognises income and costs when obtained or incurred, regardless of when they are received or paid,

and are included in the financial statements for the periods to which they refer.

Income is considered realised: a) in transactions with third parties, when the payment is made or a firm

commitment is undertaken to carry this out; b) in the partial or total extinction of a liability, whatever its motive,

without the simultaneous disappearance of an asset of equal or higher value; c) in the natural generation of new

assets, independently of the intervention of third parties; or d) when donations and subsidies are effectively

received.

In turn, costs are considered incurred: a) when the corresponding asset value no longer exists, due to transfer

of its ownership to a third party; b) through the reduction or extinction of the economic value of an asset; or c)

through the arising of a liability, without the corresponding asset.

Spot foreign exchange transactions are recorded in the Bank's asset and liability accounts. If the settlement takes

place after the contracting date, they are also recorded under off-balance sheet accounts.

Foreign exchange transactions are recorded in the respective currencies, pursuant to the principles of the

multicurrency system, based on the reference exchange rate of the day of the transaction, disclosed by the BNA.

Unrealised income and costs, arising from asset and liability transactions indexed to the exchange rate variation

are recorded in the accounts representing the investment income or funding cost carried out.

Variations and differences of rates relative to the purchase or sale of foreign currencies to be settled, occurred

between the contracting date and settlement date of the currency conversion contract are stated in the Net

Income from Foreign Exchange Transactions, against the asset account of Income from Foreign Exchange

Transactions Receivable or Costs of Foreign Exchange Transactions Payable, as applicable.

The securities acquired by the Bank are recorded at the value effectively paid and according to their characteristics

and intention at the time of their acquisition, classified into the following categories:

a) Securities held for trading;

b) Securities available for sale;

c) Securities held to maturity.

Securities acquired for the purpose of active and frequent trading are recorded under the category of securities

held for trading.

Securities acquired for the purpose of possible trading and which, consequently, do not fall under any other

category, are recorded as securities available for sale.

The category of securities held to maturity records securities for which the Bank has the intention and financial

capacity to keep them in its portfolio until their maturity.

2015

55

This financial capacity is confirmed based on cash flow projections, not considering the possibility of the sale of

the securities before their maturity.

The income produced by the securities from interest earned over the period until their maturity or declared

dividends is considered directly through profit or loss for the period, independently of the category into which

they have been classified.

Income relative to shares acquired less than six months previously is not recognised against the account recording

the corresponding acquisition cost.

Securities classified in the categories of securities held for trading, available for sale and held to maturity are

initially recorded at acquisition cost. Securities held for trading and available for sale are subsequently adjusted by

their market value, where appreciation or devaluation is recognised against:

a) The income or cost account, through profit or loss for the period, when relative to securities classified in the

category of securities held for trading;

b) The equity account, when relative to securities classified in the category of securities available for sale, at

their value net of tax effects, and should be transferred to profit or loss for the period at the time of their

definitive sale.

The methodology of calculation of the market value (fair value) of the securities used by the Bank is established

based on criteria that are consistent and capable of verification, taking into consideration the rates applied in

trading rooms, and may use the following parameters:

a) Probable net value of realisation obtained for the very short term (spot) trading book, assuming that this value

is very close or identical to par value;

b) Cash flow projections of all other securities, taking into account the specific payout of each security, discounting

these cash flows at a market interest rate plus a credit risk spread obtained by comparison with similar

issues in terms of maturity period, currency, issuer and classification, with the Bank adopting a conservative

perspective.

On 1 October 2015, considering the management and investment policy objectives followed by the Bank, a

series of Treasury Bonds was reclassified from the portfolio of securities available for sale to securities held to

maturity.

The fair value of securities in kwanzas, dollars and indexed to the dollar correspond to their market value,

estimated through internal models based on cash flow discount techniques (discounted cash flows).

Permanent losses on securities are recognised immediately through profit or loss for the period, where the

adjusted value arising from the recognition of these losses becomes the new basis of value for the effect of

appropriation of income.

Central Bank Securities and Treasury Bills are issued at discount and recorded at their redemption value (nominal

value). The difference between this value and the acquisition cost is reflected in the liabilities heading "Deferred

income", over the period between the purchase date and the maturity date of the securities.

Treasury Bonds acquired at discount are recorded at their redemption value (nominal value), where the

difference from its acquisition cost is stated as deferred income between the acquisition date and maturity date

of the securities.

Treasury Bonds issued in national currency are indexed to the USD exchange rate and are subject to exchange

rate updating. Hence, the result of the exchange rate updating of the nominal value of the security, discount and

realised interest, is reflected in the income statement for the year when it occurs.

2015

56

Classification in risk categories

Pursuant to the CONTIF, the Bank classifies securities in increasing order of risks, in accordance with the same

provisioning criteria defined for loans, in the following levels:

Level A: Zero risk

Level B: Very low risk

Level C: Low risk

Level D: Moderate risk

Level E: High risk

Level F: Very high risk

Level G: Risk of loss

The Bank classifies debt securities of the Angolan State and Banco Nacional de Angola in Level A.

Reclassification between categories of securities

Transfers from one category to another can only occur for motives that are one-off, unusual, non-recurrent and

could not have been reasonably anticipated, occurred after the classification date.

The transfer from one category to another should take into account the institution's intention and financial

capacity, and be recognised at the market value of the security, also observing the following procedures:

a) In the transfer from the category of securities held for trading to all other categories, the chargeback of values

already recorded through profit or loss arising from unrealised gains or losses is not permitted.

b) In the transfer from the category of securities available for sale, any unrealised gains or losses, recorded as a

component listed under equity, should be recognised through profit or loss for the period:

i. immediately, when transferred to the category of securities held for trading;

ii. according to the remaining period to maturity, when transferred to the category of securities held

to maturity;

c) In the transfer from the category of securities held to maturity to all other categories, any unrealised gains or

losses should be recognised:

i. immediately through profit or loss for the period, when transferred to the category of securities held

for trading;

ii. as a component listed under equity, when transferred to the category of securities available for sale.

The Bank has reclassified securities in the category of available for sale to the category of securities held to

maturity.

Any reclassification of securities held to maturity which are not realised close to their maturity, shall require the

Bank to reclassify the entire portfolio to assets available for sale and the Bank will not be permitted to classify

any assets under this category for the following two years.

Loans are financial assets, recorded at their contracted values when originated by the Bank, or recorded at

the values paid when acquired from other entities. Loans are initially recorded by debit under a loan heading,

depending on their type and currency, with this same heading being credited according to the corresponding

income received.

Pursuant to BMA's General Credit regulations, at the Bank credit concession is based on the following key

principles:

Formulation of proposals

The loan operations or guarantees subject to BMA's decision:

Are suitably characterised in a Technical Form, containing all the essential and necessary elements to formalise

the operation;

Respect the respective product form;

Are accompanied by duly substantiated credit risk analysis, and contain the signatures of the proposing bodies.

2015

57

Liabilities related to guarantees and sureties are recorded under off-balance sheet headings at their nominal

value, with flows of interest, fees or other income recorded under profit or loss headings throughout the life of

the operations.

Renegotiated loans are recorded at the total value of the loan plus the respective late payment interest. Gains or

income derived from the renegotiation are recorded at the time they are effectively received.

Pursuant to Notice number 3/2012, the Bank annuls interest overdue by more than 60 days and does not

recognise interest from this date up to the time when the Customer settles the situation.

Provisions for credit risk

The described arrangement has been in force since March 2008, pursuant to Notice number 9/2007, of 12

September. With Notice number 4/2009, of 18 June, the BNA amended the level of classification through spill-

over (article 3), restricting its scope to objective criteria.

On 28 March 2012, the BNA published Notice number 03/2012 which revoked BNA Notice 4/2011, of 8 June.

Therefore, the methodology of calculation of provisions for loans granted to Customers, in general, remains

unchanged in relation to the previous year, and is described below.

Provisions for loans and interest

Under the terms of Notice number 3/2012, the Bank classifies loan operations by increasing order of risk,

according to the following categories:

Level A: Zero risk

Level B: Very low risk

Level C: Low risk

Level D: Moderate risk

Level E: High risk

Level F: Very high risk

Level G: Risk of loss

The classification of each loan operation is reviewed at least on an annual basis, through a re-appraisal/assessment

of the criteria which determined its initial classification: economic profile and proposer/Customer behavioural

pattern and any related guarantee, as well as its type, quality and amount of coverage.

The classification of all the loans in the portfolio, or those whose debtors act in a certain economic activity

sector or geographic area, is reviewed whenever the Executive Committee believes there is risk of significant

changes in the economic circumstances that might affect the risk of its operations.

Without prejudice to the review described in article 9 of the aforesaid Notice, the Bank conducts monthly

reviews of the classification of each loan according to any delay which might have occurred in the payment of

the instalment of the principal or charges, where the classification of loan operations to the same Customer, for

the constitution of provisions, is made in the category showing highest risk.

Loans are classified into risk levels according to the time that has elapsed since the date of the operation's

entry into default, with the minimum provisioning levels being calculated pursuant to Notice number 3/2011 as

described below:

Risk levels A B C D E F G

% provision 0% 1% 3% 10% 20% 50% 100%

Time elapsed since entry into default

Up to 15 days

15 to 30 days

1 to 2 months

2 to 3 months

3 to 5 months

5 to 6 months

Over6 months

Pursuant to article 10 of the aforesaid Notice, for loans with a maturity period above 24 months, the periods

established for the monthly review are doubled when the payment of the instalment of the principal or charges

takes place correctly.

2015

58

Provisions for the loans granted are classified under assets at credit, in the heading "Provision for bad debt" (Note

10) and provisions for guarantees and sureties provided and documentary credit for imports that are unbacked

as at the reporting date are presented under liabilities, in the heading Provisions for probable liabilities related

to guarantees provided (Note 19).

Operations which have been renegotiated are kept, at least, at the same risk level in which they were classified

in the month immediately before their renegotiation.

Reclassification to a lower risk level only occurs if there has been regular and significant repayment of the

operation, the payment of overdue and late payment interest, or as a result of the quality and value of new

guarantees submitted for the renegotiated operation.

Gains or income derived from the renegotiation are recorded when they are effectively received.

The Bank annuls interest overdue by more than 60 days, and also does not recognise interest from this date up

to the time when the Customer settles the situation.

Holdings in related entities and equivalent

Holdings in related entities or equivalent are considered stakes in which the Bank, directly or indirectly, holds a

percentage equal to above 10% of the respective voting share capital, without controlling the entity.

The relevant equity stakes in each related entity or equivalent, when the Bank has influence in its management

or when the Bank's percentage holding, directly or indirectly, represents 20% (twenty per cent) or more of the

voting share capital of the entity, are measured by the equity method.

All others are recorded at acquisition cost minus the provision for losses.

Holdings in other companies

Holdings in other companies are considered those in which the Bank, directly or indirectly, holds a stake below

10% of the respective voting share capital.

These assets are recorded at acquisition cost minus the provision for losses.

Tangible fixed assets are recorded at acquisition cost. This includes indispensable accessory costs, even if before

the deed, such as notary fees, brokerage fees, tax payable on acquisition and others.

The depreciation of the fixed asset is calculated on a straight-line basis at the maximum rates acceptable as

costs for tax purposes, pursuant to the Industrial Tax Code, which correspond to the following estimated years

of useful life:

Description Years of useful life

Properties for own use (Buildings) 50

Equipment:

Furniture and material 10

Computer equipment 3

Interior facilities 10

Transport material 3

Machines and tools 5 – 7

2015

59

Intangible Fixed Assets include costs related to the acquisition and development costs of software used in data

processing, costs inherent to the constitution, organisation, restructuring, expansion and/or modernisation of

the Bank, goodwill paid on acquisition, improvements to property owned by third parties, and products under

development classifiable as assets. Intangible Fixed Assets are recorded at acquisition cost, being depreciated

in a straight-line over a period of three years, with the exception of construction works in rented properties,

where the depreciation period corresponds to the expected rental.

Costs incurred during the research phase for the development of new products are not recognised as

intangible assets, but are recorded as costs for the year when they are incurred.

This heading records assets received in lieu of repayment, following the recovery of non-performing loans, if

intended for subsequent divestment.

As defined in the CONTIF, the value of assets received in lieu of repayment is recorded in accordance with

the amount stated upon valuation, against the value of the recovered loan and respective provisions that were

specifically constituted.

When the valuation of the assets is lower than the book value of the loan operation, the difference should

be recognised as a cost for the year.

When legal period of two years has come to an end without the assets having been divested (extendable

by authorisation of the BNA), a new valuation is made, aimed at estimating the updated market value, with a

view to the possible constitution of the corresponding provision.

BMA is subject to Industrial Tax and considered, for tax purposes, a Group A taxpayer. Its income is taxed

under the terms of number 1 of article 64 of Law number 19/14, of 22 October, with the applicable tax rate

being 30%.

Income tax includes current and deferred tax. Income tax is recognised through profit or loss, except when

related to items that are not recognised directly under equity, in which case it is also stated against equity.

Current taxes are those which are expected to be paid based on the tax base calculated in accordance with

the tax rules in force and using the tax rate referred to above.

Deferred tax assets and liabilities are recorded when there is a temporary difference between the value of

an asset or liability and its taxable base. Its value corresponds to the value of the tax that is recoverable or

payable in future periods. Deferred tax assets and liabilities are calculated based on the tax rates in force for

the period when the respective asset or liability is expected to be realised.

Tax returns are subject to review and correction by the tax authorities for a period of five years.

Different interpretations of the provisions may imply possible corrections to the taxable profit of the last five

years.

The tax reform in Angola included an important series of new tax regulations, published in the Diário da

República, as well as significant amendments to already existing codes and their consequent republication,

namely:

a) Tax Regime of Collective Investment Bodies (approved by Presidential Legislative Decree number 1/14, of

13 October);

b) Capital Gains Tax Code (approved by Presidential Legislative Decree number 2/14, of 20 October);

c) Stamp Duty Code (approved by Presidential Legislative Decree number 3/14, of 21 October);

d) Employee Income Tax Code (Law number 18/14, of 22 October);

e) Industrial Tax Code (approved by Law number 19/14, of 22 October);

2015

60

f) Tax Enforcement Code (approved by Law number 20/14, of 22 October);

g) General Tax Code (approved by Law number 21/14, of 22 October);

h) Consumption Tax Regulations (approved by Presidential Legislative Decree number 3-A/14, of 21 October).

Due to their relevance, pursuant to article 67, of Law number 19/14 of 22 October, provisions of services of

any nature are subject to taxation, by withholding at source at the rate of 6.5%.

The Bank assesses its assets periodically, with a view to the identification of assets which show a recoverable

value below their book value. The reduction of the book value (impairment) of an asset is always recognised

when its book value exceeds its recoverable value.

For the assessment of impairment, the Bank takes into account the following indicators:

a) Significant decline in the value of an asset, higher than would be expected from its normal use;

b) Significant changes in the technological, economic or legal environment, with adverse effects on the Bank;

c) Increase in interest rates or other market rates, with adverse effects on the discount rates and consequent

reduction in the present value or recoverable value of the assets;

d) Book value of net assets higher than the market value;

e) Evidence of obsolescence or loss of physical capacity of an asset;

f) Significant changes in the form of use of the asset, such as discontinuity or restructuring, with adverse effects

on the Bank; and

g) Indication that the economic performance of the asset will be worse than that expected.

a) Liabilities related to retirement pensions

Law number 7/4, of 15 October, which revoked Law number 18/90, of 27 October, and regulates the Angolan

Social Security system, foresees the attribution of retirement pensions to all Angolan workers enrolled in

Social Security. The value of these pensions depends on the number of years of work and the average monthly

gross wages received in the periods immediately before the worker's date of retirement. Pursuant to Decree

number 7/99 of 28 May, the rates of contribution to this system are 8% for the employer entity and 3% for

the workers.

A retirement pension due to old-age is attributed to Employees who complete 60 years of age and have been

employed continuously at the Bank for at least five years.

An invalidity benefit is attributed to Employees who have been diagnosed total and permanent invalidity equal

to 100% and have been employed continuously for at least five years. Employees may name the beneficiaries

and respective percentage share of their death benefit.

Liabilities related to the contributions payable as at 31 December 2014 are recognised under the heading

Provisions for probable liabilities (Note 18) and includes liabilities concerning compensation of retirement

pensions following the provisions in Law number 2/2000 and articles 218 and 262 of the General Labour

Law, legislation which determines the Bank's payment of compensation in the case of expiry of the contract.

This compensation is calculated by multiplying 25% of the monthly base wage applied on the date when the

worker reaches the legal age of retirement by the number of years of employment.

On 15 June 201, Diário da República de Angola published Law number 7/15 which approved the new

General Labour Law that entered into force on 14 September 2015, having revoked Law number 2/2000, of

11 February.

In 2015, the Bank derecognised the liabilities concerning retirement pension compensation established in Law

number 2/2000.

b) Variable remuneration paid to Employees and Directors

The Bank attributes variable remunerations to its Employees and Directors as a result of their performance

(performance bonus), following criteria defined by the Board of Directors and Remuneration Board. The

variable remuneration attributed to the Employees and Directors is recorded against profit or loss for the

year to which it refers, despite being paid-up in the following year (Note 28).

2015

61

c) Provisions for holidays and holiday allowance

The General Labour Law, in force as of 31 December 2013, determines that the amount of holiday allowance

paid to the workers in a particular year is a right acquired by them in the immediately preceding year.

Consequently, the Bank records the book values in the year relative to holidays and holiday allowances payable

in the following year.

Provisions are recognised when (i) the Bank has a present obligation, legal or constructive; (ii) it is probable

that its payment will be required; and (iii) a reliable estimate can be made of the value of this obligation.

Contingent liabilities are recognised in off-balance sheet accounts when (i) the Bank has a possible obligation

whose existence will be confirmed only by the occurrence or not of one or more future events that are

beyond the control of the institution; (ii) a present obligation which arises from past events, but which is not

recognised because it is not probable that the institution will have to settle it or the value of the obligation

cannot be measured with sufficient reliability. Contingent liabilities are revalued periodically to determine if

their previous valuation continues valid. If it is probable that an outflow of resources will be required for an

item previously treated as a contingent liability, a provision is recognised in the financial statements for the

period when the change in the estimated probability occurs.

Contingent assets are recognised in off-balance sheet accounts when a possible present asset, arising from

past events, whose existence will be confirmed only by the occurrence or not of one of more future events

that are beyond the control of the institution. Contingent assets are revalued periodically to determine if

their initial assessment continues valid. If it is practically certain that any inflow of resources will take place on

account of an asset, and this entry has been classified previously as probable, the asset and corresponding

gain will be recognised in the financial statements for the period when the change in the estimated probability

occurs.

Fees charged for services rendered are recognised as income throughout the period that the service is

rendered or when the significant act is concluded, if the income derives from a significant act.

Pursuant to Notice number 2/2009 of 8 May, the financial statements consider the effects of change in

the purchasing power of the national currency, based on the Consumer Price Index (IPC) disclosed by the

National Statistics Institute (INE), in the case of variations (inflation) above 100% over the last 3 (three) years,

through correction of the book value of the Fixed Asset and Equity accounts. The Bank did not carry out any

monetary updating during the year under review.

For purposes of the preparation of the cash flow statement, the Bank defines disposable assets as the total

balance of the headings of Cash, Disposable assets at the central bank and Disposable assets at financial

institutions.

The Bank's accounts include estimates made under conditions of uncertainty, however, no hidden reserves or

excessive provisions have been created, or inadequate quantification made of assets and income or liabilities

and costs.

The principle of prudence imposes the choice of the option that results in lower net assets, when equally valid

options are presented before all other accounting principles. This principle determines the adoption of the

lower value for asset components and higher for liability components, whenever equally valid alternatives are

presented for the quantification of changes in assets and liabilities which alter net worth.

In the preparation of the financial statements, the Bank made estimates and used assumptions that affected

the reported amounts of assets and liabilities. These estimates and assumptions are appraised regularly and

based on various factors, including expectations on future events which were considered reasonable under

the circumstances.

Estimates and assumptions were used, namely, in significant areas of Provisions for Loans Granted, Other

Provisions and Current and Deferred Tax and the Securities Valuation Model.

2015

62

4. DISPOSABLE ASSETS

As at 31 December 2015 and 2014, this heading is detailed as follows:

Thousand AOA

2015 2014

CASH IN HAND 10,436,192

Cash in national currency 6,701,682

Cash in foreign currency 3,734,510

VALUES IN TRANSIT 689,753

Cash in national currency 676,337

Cash in foreign currency 995 13,416

DISPOSABLE ASSETS AT THE CENTRAL BANK 25,456,127

Demand deposits in national currency 16,394,411

Demand deposits in foreign currency 9,061,716

DISPOSABLE ASSETS IN FINANCIAL INSTITUTIONS 101,837

Banco Comercial Português 101,837

36,683,909

The demand deposits at the BNA aim to comply with the provisions in force on maintenance of required

reserves and are not remunerated.

The required reserves are currently calculated under the terms established in Instruction number 16/2015, of

22 July, and are constituted in national and foreign currency, according to the respective denomination of the

liabilities constituting their basis of incidence.

As at 31 December 2015, the reserve requirement is calculated through the application of a coefficient of 25%

of eligible liabilities in national currency, excluding Local Government deposits which are subject to a rate of

50% for national currency and 100% for foreign currency, and Central Government deposits subject to a rate of

75% for national currency and 100% for foreign currency, and a coefficient of 15% on eligible liabilities in foreign

currency.

On 10 December 2015, the Banco Nacional de Angola converted part of BMA's required reserves in USD

into securities denominated in the same currency, with the nominal value of 57,790,000 and maturity of seven

years. These debt securities were recognised at their acquisition cost and subsequently measured as described

in accounting policy 3.2.2.

Pursuant to Instruction number 19/2015, which entered into force on 4 January 2016, the required minimum

reserves can be composed up to 20% with the amounts deposited at Banco Nacional de Angola and 80% in

Treasury Bonds in foreign currency, with the securities identified in the preceding paragraph being eligible.

2015

63

5. LIQUIDITY INVESTMENTS

As at 31 December 2015 and 2014, this heading corresponds to investments at Credit Institutions and is detailed as follows:

Thousand AOA

2015 2014

Up to 1 week

Over 1 year

Average rate

Total

MONEY MARKET TRANSACTIONS 10 – 11,938,556 – – 11,938,556

Investments in national credit institutions – 11,938,556 – 4.14% 11,938,556

Investments in credit institutions abroad 10 – – 10 – – – –

PURCHASE OF THIRD PARTY SECURITIES WITH REPURCHASE AGREEMENT

– – – – – – – –

NUMISMATICS – – – 2,225 – 2,225

LIQUIDITY INVESTMENTS 10 11,938,556 2,225 11,940,781

6. SECURITIES

As at 31 December 2015 and 2014, the Bank's portfolio of securities is composed of securities held for trading, securities available for sale and

securities held to maturity.


Thousand AOA

2015

Risk level

Country CurrencyNominal

valueAmortised

costFair value

adjustmentBook value

Average interest rate

DEBT SECURITIES

Trading securities

Treasury Bonds indexed to the USD exchange rate

A Angola AOA 334,311 315,623 14,307 329,930 5.00%

Securities available for sale

Treasury Bills in national currency A Angola AOA 10,651,676 10,347,538 66,129 10,413,667 12.91%


A Angola AOA 54,808,931 55,592,345 398,787 55,991,132 7.15%

Treasury Bonds in foreign currency A Angola USD 8,677,751 8,706,505 2,484 8,708,989 4.85%

Securities held to maturity

Treasury Bonds in national currency A Angola AOA 9,964,200 9,785,299 168,941 9,954,240 7.62%

84,436,869 84,747,310 650,648 85,397,958

Thousand AOA

2014

Risk level

Country CurrencyNominal

valueAmortised

costFair value

adjustmentBook value

Average interest rate

DEBT SECURITIES


Treasury Bills in national currency A Angola AOA 17,041,073 16,737,891 25,204 16,763,095 5.22%

Treasury Bonds in national currency A Angola AOA 6,853,100 6,910,748 165,377 7,076,125 7.73%


A Angola AOA 20,803,012 20,894,809 236,801 21,131,610 7.05%

Treasury Bonds in foreign currency A Angola USD 849,648 854,125 1,861 855,986 6.15%

45,546,833 45,397,573 429,243 45,826,816

2015

64

As at 31 December 2015 and 2014, the distribution of debt securities by indexer is as follows:

Thousand AOA

Book value

2015

Amortised cost Market value

Fixed rate Libor 6 months Total Fixed rate Libor 6 months Total

DEBT SECURITIES

Trading securities


315,623 – 315,623 329,930 – 329,930


Treasury Bills in national currency 10,347,538 – 10,347,538 10,413,667 – 10,413,667


55,592,345 – 55,592,345 55,991,132 – 55,991,132

Treasury Bonds in foreign currency 7,843,356 863,149 8,706,505 7,845,361 863,628 8,708,989

Securities held to maturity

Treasury Bonds in national currency 9,785,299 – 9,785,299 n,a – n,a

83,884,161 863,149 84,747,310 74,580,090 863,628 75,443,718

Thousand AOA

Book value

2014

Amortised cost Market value

Fixed rate Libor 6 months Total Fixed rate Libor 6 months Total

DEBT SECURITIES


Treasury Bills in national currency 16,737,891 – 16,737,891 16,763,095 – 16,763,095

Treasury Bonds in national currency 6,910,748 – 6,910,748 7,076,125 – 7,076,125


20,882,881 11,928 20,894,809 21,119,696 11,914 21,131,610

Treasury Bonds in foreign currency – 854,125 854,125 – 855,986 855,986

44,531,520 866,053 45,397,573 44,958,916 867,900 45,826,816

As described in the accounting policy mentioned in Note 3.2.2, on 1 October 2015, the Bank reclassified

Treasury Bonds in kwanzas which had been recorded in the category of securities available for sale to the

category of securities held to maturity.

As at 31 December 2015 and 2014, the trading securities and securities available for sale in portfolio had

been entirely issued by the BNA or Angolan Treasury, and showed the following structure, according to their

respective maturity periods:

2015

65

Thousand AOA

2015

Maturity period Amortised cost Market value

Up to 3 months 10,046,691 10,113,371

3 to 6 months 3,155,376 3,159,593

6 months to 1 year 6,542,053 6,581,272

Over 1 year 55,217,891 55,589,482

74,962,011 75,443,718

Thousand AOA

2014

Maturity period Amortised cost Market value

Up to 3 months 8,546,333 8,556,752

3 to 6 months 7,319,361 7,353,671

6 months to 1 year 11,105,706 11,182,592

Over 1 year 18,426,713 18,733,801

45,397,573 45,826,816

The policy on investment in securities adopted by BMA is appropriate to the reality of the Angolan market,

focusing on public debt and Central Bank securities, using criteria based on yields, with strict control of risks,

namely liquidity and market risks.

7. DERIVATIVE FINANCIAL INSTRUMENTS


Thousand AOA

2015 2014

Assets Liabilities

Currency swaps – –

Derivative financial instruments – –

As at 31 December 2015, the portfolio of derivative financial instruments showed the following structure,

according to their maturity periods:

Thousand AOA

2015

Fair value – assets Fair value – liabilities

Less than 3 months More than 1 year Less than 3 months More than 1 year

Currency swaps 31,784 – 19,665 –

Derivative financial instruments 31,784 – 19,665 –

As at 31 December 2015, the heading "Currency swaps" corresponds to operations made with the BCP Group.

2015

66

8. LOANS IN THE PAYMENT SYSTEM


Thousand AOA

2015 2014

Own funds in transit – 413

Clearing of cheques and other papers 206,437

Other operations pending settlement 53,769

260,619

As at 31 December 2015 and 2014, the heading "Clearing of cheques and other papers" includes the amount

of 104,362 thousand AOA and 71,027 thousand AOA, relative to deposited cheques which shall be cleared in

January 2016.

9. FOREIGN EXCHANGE TRANSACTIONS


Thousand AOA

2015 2014

Purchase of currency

National currency 347,348

Foreign currency 2,302,924

2,650,272

As at 31 December 2015, the heading in foreign currency includes the amount of 2,291,396 thousand AOA,

relative to USD/EUR swaps, with the counterpart being Banco Comercial Português.

The values relative to the sale of currency are presented in Note 17.

2015

67

10. LOANS


Thousand AOA

2015 2014

National Currency Foreign Currency

OVERDRAFTS

Companies 4,717,702 34,032

Individuals 124,305 2,443

4,842,007 36,475

CREDIT

Companies 66,255,692 30,985,833

Individuals 10,854,430 1,992,390

77,110,123 32,978,223

LEASING

Companies - 4,084,609 -

Individuals - 673,299 -

- 4,757,908 -

FACTORING

Companies - 5,421,040 -

Individuals - - 425 -

- 5,421,465 -

CARD

Companies - 129,179 -

Individuals - 266,370 -

- 395,549 -

TOTAL 92,527,052 33,014,697

GROSS LOANS TO CUSTOMERS (NC+FC)

125,541,749

PROVISION FOR LOAN (7,793,500)

NET LOANS TO CUSTOMERS (NC+FC)

117,748,249

2015

68

As at 31 December 2015, the capital and interest in portfolio showed the following structure, according to

maturity and activity sector :

Thousand AOA

Activity sectorUp to 6 months

6 to 12 months 1 to 5 years Over 5 years

Overdue loans Total

Other activities of collective, social and personal services

9,210,587 1,334,874 16,893,789 3,182,497 1,475,867 32,097,614

Construction 16,548,241 866,350 11,687,195 1,619,665 185,344 30,906,795

Wholesale trade 9,381,119 588,202 3,301,662 630,307 1,327,470 15,228,759

Consumer credit 231,399 423,313 11,281,603 2,064,615 916,539 14,917,469

Retail trade 3,597,353 213,115 3,070,506 7,852,031 598,280 15,331,285

Manufacturing industries 1,641,924 102,499 1,790,504 3,063,131 3,849 6,601,907

Other 10,181,615 3,495,972 10,277,004 7,184,502 713,172 31,852,265

50,792,238 7,024,326 58,302,263 25,596,748 5,220,520 146,936,095

As at 31 December 2014, the capital and interest in portfolio showed the following structure, according to

maturity and activity sector :

Thousand AOA

Activity sectorUp to 6 months

6 to 12 months 1 to 5 years Over 5 years

Overdueloans Total

Other activities of collective, social and personal services

7,507,370 883,618 16,371,184 2,886,575 1,797,876 29,446,623

Construction 12,625,543 1,427,266 4,603,206 4,236,436 365,233 23,257,684

Wholesale trade 9,718,636 231,725 3,100,477 2,057,816 732,555 15,841,209

Consumer credit 480,618 255,355 9,502,466 2,813,641 984,884 14,036,964

Retail trade 3,109,956 499,371 2,671,562 6,569,856 306,524 13,157,269

Manufacturing industries 1,046,837 323,417 744,974 619,776 161,486 2,896,490

Other 3,336,769 223,822 8,645,470 14,413,141 286,306 26,905,510

37,825,729 3,844,574 45,639,339 33,597,243 4,634,864 125,541,749

As at 31 December 2015, the Bank's portfolio showed the following distribution relative to credit risk:

Thousand AOA

Risk levelOutstanding

loans Overdue loans Interest Total % Provision Provisions

A 2,115,543 - 24,841 2,140,384 - -

B 92,276,069 9,994 1,908,449 94,194,512 1% 950,344

C 35,475,889 163,567 695,565 36,335,021 3% 1,090,051

D 1,710,633 28,575 9,731 1,748,939 10% 174,893

E 1,125,820 88,899 5,831 1,220,550 20% 244,110

F 554,351 119,325 3,772 677,448 50% 338,726

G 5,807,909 4,810,160 1,172 10,619,241 100% 10,619,241

139,066,214 5,220,520 2,649,361 146,936,095 13,417,365

2015

69

As at 31 December 2014, the Bank's portfolio showed the following distribution relative to credit risk:

Thousand AOA

Risk levelOutstanding

loans Overdue loans Interest Total % Provision Provisions

A 11,523,379 - 256,397 11,779,776 - -

B 67,210,842 3,826 851,298 68,065,966 1% 680,660

C 33,858,571 618,672 646,688 35,123,931 3% 1,053,718

D 1,223,800 77,228 10,318 1,311,346 10% 131,134

E 3,559,611 674,420 730 4,234,761 20% 1,019,510

F 162,664 70,864 1,452 234,980 50% 117,490

G 1,599,962 3,189,854 1,173 4,790,989 100% 4,790,988

119,138,829 4,634,864 1,768,056 125,541,749 7,793,500

As at 31 December 2015 and 2014, the Loan Portfolio showed the following weighted average interest rates:

Average rates 2015 2014

Descoberto 7.39%

Leasing 12.62%

Factoring 11.55%

Credit cards 35.00%

All other loans 12.15%

During 2015, the total value of 1,799,900 thousand AOA was written-off from active loans. The value of the provision for

bad debt, constituted and used during the financial year is described in Note 19.

As at 31 December 2015 and 2014, the Loan Portfolio showed the following distribution by Province and Indexer:

Thousand AOA

Código Descrição 2015 2014

500 Bengo 99,731

1000 Benguela 4,085,625

1500 Bié 27,105

2000 Cabinda 561,234

2500 Kuando-Kubango 6,958

3000 Cunene 34,173

3500 Huambo 978,605

4000 Huíla 4,075,409

4500 Kwanza Norte 516,009

5000 Kwanza Sul 134,629

5500 Luanda 113,963,714

6000 Malanje 94,934

6500 Namibe 447,170

7000 Moxico 88,823

7500 Lunda Norte 4,508

8000 Lunda Sul 17,987

8500 Uíge 88,240

9000 Zaire 316,850

125,541,749

2015

70

Thousand AOA

Dez. 2015

Risk levels A B C D E F G Written-off

Paid Amort. Total

Portfolio distribution as at 31/12/2014

DEC.14

A 6.78% 23.41% 0.87% 0.02% 0.08% 0.00% 0.01% 0.00% 68.83% 9.38% 11,779,776

B 0.00% 58.70% 4.18% 0.49% 0.02% 0.01% 1.17% 0.00% 35.43% 54.22% 68,065,966

C 0.03% 13.15% 56.96% 1.72% 2.12% 0.96% 2.85% 0.00% 22.22% 27.98% 35,123,930

D 0.00% 0.00% 0.64% 16.19% 3.90% 0.15% 68.81% 0.00% 10.30% 1.04% 1,311,347

E 0.00% 0.00% 0.18% 0.66% 4.06% 0.31% 87.89% 0.00% 6.89% 3.37% 4,234,762

F 0.00% 0.00% 0.00% 0.00% 0.00% 53.33% 44.47% 0.00% 2.21% 0.19% 234,981

G 0.00% 0.00% 0.09% 1.24% 0.27% 0.00% 62.22% 31.42% 4.77% 3.82% 4,790,988

TOTAL 0.64% 37.70% 18.30% 0.99% 0.80% 0.39% 7.57% 1.20% 32.41% 100.00%

2014 PORTFOLIO DISTRIBUTION AS AT 31/12/2015

809,141 47,330,266 22,973,471 1,237,646 1,003,670 484,777 9,508,877 1,505,130 40,688,771 - 125,541,749

2015

Thousand AOA

Code Description 2015 2014

20000 Interest rates 48,763,563

21826 Libor 26,992,289

21973 Average rate of BNA securities 439 3,565

99000 No Indexer 49,782,332

125,541,749

71

Analysis of the migration matrix shows that of the total loans as at 31 December 2014, of the value of 125,541,749

thousand AOA, 51.1% of the operations did not undergo any change of level.

The movement between risk levels also indicates that 3.9% of the operations reduced their risk level, 11.4% of

credit operations migrated to more severe risk levels, and 1.2% were written off from the assets (transferred

to loss).

As at 31 December 2015 and 2014, the residual period of the loans, including income receivable, showed the

following structure:

Thousand AOA

2015

Risk levelNo late

paymentLate payment

≤ 60 daysLate payment

> 60 days Total

A 1,010,530 1,129,853 - 2,140,383

B 77,113,116 17,081,395 - 94,194,511

C 24,498,561 11,675,884 160,576 36,335,021

D 1,158,281 378,509 212,148 1,748,938

E 383,051 15,638 821,861 1,220,550

F 236,977 170 440,302 677,449

G 85,476 14,846 10,518,921 10,619,243

104,485,992 30,296,295 12,153,808 146,936,095

Thousand AOA

2014

Risk levelNo late

paymentLate payment

≤ 60 daysLate payment

> 60 days Total

A 11,060,872 718,904 - 11,779,776

B 59,881,363 8,184,603 - 68,065,966

C 25,551,707 9,406,092 166,132 35,123,930

D 530,845 235,705 544,796 1,311,347

E 1,345,636 3,379 2,885,747 4,234,762

F - 130,315 104,666 234,981

G 159,251 42,344 4,589,392 4,790,988

98,529,674 18,721,342 8,290,733 125,541,749

The Bank defines renegotiated loan operations as operations whose initially contracted conditions partially or

entirely change any payment terms without reinforcement of guarantees or payments of late interest.

As at 31 December 2015 and 2014, the renegotiated loans amounted to 10,495,144 thousand AOA and

7,596,038 thousand AOA, respectively.

As at 31 December 2015 and 2014, the total amount of recovered loans and interest previously annulled or

written-off from the assets stood at 45,694 thousand AOA and 48,201 thousand AOA (Note 31).

2015

72

11. OTHER VALUES


Thousand AOA

2015 2014

OTHER CORPORATE OR STATUTORY AMOUNTS

Dividends and other income receivable from BPA 477,507

477,507

OTHER TAX RELATED AMOUNTS

Tax to be offset -

-

OTHER CIVIL AMOUNTS

Miscellaneous debtors

Cash shortages 22,353

Visa and SME collateral 566,873

Fraud 458,565

ATM withdrawals 170,740

Values receivable from sale of fixed assets -

Other debtors 96,610

1,315,141

OTHER ADMINISTRATIVE AMOUNTS

Advances and prepayments of wages

Advances to Employees -

Prepaid expenses

Insurance 30,846

Hire and rental charges 360,381

Software licenses and maintenance 31,952

Miscellaneous 38,661

Office material 43,633

Other advances

Advances to suppliers 48,451

553,924

SPECIFIC PROVISIONS FOR LOSSES (234,144)

ASSETS NOT FOR OWN USE 670,318

2,782,746

The heading Visa and SME collateral includes the amount of 5,415,000 USD, relative to a deposit given as

collateral, under the contract concluded between BMA and Visa International, in which the Bank undertakes to

maintain a collateral deposit at Visa's custodian bank (Barclays Bank London). This deposit is remunerated at the

annual interest rate of 0.10%.

As at 31 December 2015 and 2014, the heading Fraud corresponds to operations pending settlement, whose

lawsuits are underway, and other liabilities, with the Bank having constituted the necessary provisions based on

the information currently available in the heading Specific provisions for losses.

The heading Values receivable from sale of fixed assets includes the amount of 878,848 thousand AOA relative

to the sale of a real estate property received in lieu of repayment.

2015

73

As at 31 December 2015 and 2014, the heading "Assets not for own use" records the cost of acquisition and construction of real estate properties

received in lieu of repayment as a form of settlement of a loan, of the value of 1,664,109 thousand AOA.

As at 31 December 2015 and 2014, the recorded value is supported by valuations of the aforesaid property.

12. FINANCIAL FIXED ASSETS

As at 31 December 2015 and 2014, this heading may be detailed as follows:

Thousand AOA

% holdingNumber of

shares EquityNet income for the year 2014 Additions Transfer

Equity method

Additional paid-in capital 2015

HOLDINGS IN RELATED ENTITIES AND EQUIVALENT

Academia Millennium Atlântico

33% 16,500 (20,428) (18,853) - - - - - -

HOLDINGS IN OTHER COMPANIES

BPA 6.66% 2,276,084 - - 2,832,297 - - - -

EMIS 2.58% 17,800 1,477,413 111,025 100,837 - - - -

Angolan Stock Exchange Securities and Derivatives

2.00% 3,000 n.d n.d 28,592 - (1,732) - -

Other financial fixed assets

n.a n.d n.d 100 - - - - 100

2,961,826 - (1,732) - -

Thousand AOA

% holdingNumber of

shares EquityNet income for the year 2013 Additions Transfer

Equity method

Additional paid-in capital 2014

HOLDINGS IN RELATED ENTITIES AND EQUIVALENT

Academia Millennium Atlântico

33% 16,500 (5,245) (18,063) 4,230 - - (4,230) - -

HOLDINGS IN OTHER COMPANIES

BPA 6.66% 2,276,084 44,842,342 6,153,964 2,713,825 118,472 - -

EMIS 2.58% 17,800 1,377,815 111,290 101,290 - - - (453)

Angolan Stock Exchange Securities and Derivatives

2.00% 3,000 n.d n.d 28,592 - - - -

Other financial fixed assets

n.a n.d n.d 99 1 - - - 100

2,848,036 118,473 - (4,230) (453)

2015

74

The 10% holding in BPA was acquired during 2009, for the value of 21,342 thousand USD.

In 2011, the General Meeting of BPA approved a share capital increase, with BMA having accompanied this

increase, maintaining its stake of 10%.

In 2012, the share capital increase was authorised by Banco Nacional de Angola, followed by its recognition in

the heading Holdings in related entities and equivalent.

In 2013, the General Meeting of BPA approved a new share capital increase, with BMA's stake having fallen to

6.66% and the number of shares increased to 2,276,084.

In 2014, the distribution of dividends for BPA's stake was announced, of the value of 405,481 thousand AOA of

which 118,472 thousand AOA through incorporation in the capital.

In 2015, the distribution of dividends for BPA's stake of the value of 303,223 thousand AOA was announced, with

no proposed or paid dividends having been recorded for the other holdings.

During 2010, BMA was one of the founding members of the Millennium Atlântico Academy, where it holds

a stake of 33%, together with Sonangol, BPA and individual shareholders. The objective of the Academy is to

provide high quality training to the staff of shareholder companies, thus contributing to the training of highly

qualified Angolan staff.

A loss of 4,230 thousand AOA was recognised for the Angola Millennium Academy, with neither loss nor profit

having been recorded for the other holdings.

In 2013, the Angolan Stock Exchange of Securities and Derivatives approved the extinction of the company in

consideration of the return, to the Shareholders, of the nominal paid-up share capital.

13. INTANGIBLE AND TANGIBLE FIXED ASSETS, AND FIXED ASSETS IN PROGRESS

As at 21 December 2015 and 2014, the movement of the intangible and tangible fixed assets and fixed assets

in progress is presented in the table below.

Thousand AOA

Gross fixed assets 2014 AdditionsWrite-offs/ settlements Transfers 2015

INTANGIBLE FIXED ASSETS 7,259,506 375,630 (271,900) 84,970

Automatic data processing system 1,711,377 236,685 (28,928) 133,541

Works in rented properties 4,363,766 50,114 (233,757) 678,990

Advances for intangibles 60,989 62,617 - (109,130)

Other intangibles 1,123,374 26,214 (9,215) (618,431)

TANGIBLE FIXED ASSETS 21,489,299 1,583,905 (75,770) 283,224

Buildings and land 11,651,666 882,975 (10,591) (239,764)

Major repairs and improvements 5,254,380 212,592 (8,319) (331,867)

Furniture and material 472,433 25,796 (2,564) 20,162

Machines and tools 1,015,784 189,301 (11,547) (962)

Transport material and IT equipment 1,441,281 102,412 (39,740) (6,215)

Other 1,653,755 170,829 (3,009) 841,870

FIXED ASSETS IN PROGRESS 433,923 310,854 (57,812) (368,194)

Fixed assets for own use 115,299 156,283 - (270,934) 648

Advances for tangibles 133,982 1,673 (2,632) (133,023) -

Others in progress 184,642 152,898 (55,180) 35,763

29,182,728 2,270,389 (405,482) -

2015

75

Thousand AOA

Gross fixed assets 2013 AdditionsWrite-offs/ settlements Transfers 2014

INTANGIBLE FIXED ASSETS 6,726,280 503,936 (221,290) 250,580

Automatic data processing system 1,255,213 198,413 (41) 257,792

Works in rented properties 4,291,239 150,824 (221,249) 142,952

Advances for intangibles 56,454 154,699 - (150,164)

Other intangibles 1,123,374 - - -

TANGIBLE FIXED ASSETS 11,071,052 3,483,876 (165,975) 7,100,346

Buildings and land 2,300,321 2,926,206 - 6,425,139

Major repairs and improvements 5,061,644 91,756 - 100,980

Furniture and material 425,388 46,185 (1,200) 2,060

Machines and tools 851,059 41,998 - 122,727

Transport material and IT equipment 1,065,320 150,582 (149,962) 375,341

Other 1,367,320 227,149 (14,813) 74,099

FIXED ASSETS IN PROGRESS 6,426,146 1,366,590 (7,887) (7,350,926)

Fixed assets for own use 5,794,945 892,056 (4,523) (6,567,179)

Advances for tangibles 344,932 246,731 (3,363) (454,318)

Others in progress 286,269 227,803 (1) (329,429)

24,223,478 5,354,402 (395,152) -

The additions to the heading Tangible fixed assets – Buildings and land include the amount of 2,874,450 thousand

AOA relative to the Cidade Financeira apartments which had been classified as Assets not for own use in 2014.

Thousand AOA

Accumulated amortisation/ depreciation 2014

Write-offs/ settlements Transfers 2015

Amort/Depr. for the year 2015

INTANGIBLE FIXED ASSETS

(2,545,553) 207,202 (41,226) (798,366)

Aut. data proc. system (1,100,992) 1,706 - (345,119)

Works in rented properties

(886,787) 205,496 (89,583) (450,812)

Other intangibles (557,774) - 48,357 (2,435)

TANGIBLE IXED ASSETS

(2,823,710) 50,649 41,226 (980,948)

Buildings and land (220,703) 167 32,859 (198,288)

Major repairs and improvements

(442,967) 30,857 57,792 (109,829)

Furniture and material (197,144) 1,278 192 (50,102)

Machines and tools (540,501) (93,885) 1,309 (179,017)

Transport material and IT equipment

(842,414) (6,533) 17,059 (267,813)

Advances for fixed assets (579,981) 118,765 (67,985) (175,899)

(5,369,263) 257,851 - (1,779,314)

2015

76

Thousand AOA

Accumulated amortisation/ depreciation 2013

Write-offs/ settlements Transfers 2014

Amort/Depr. for the year 2014

INTANGIBLE FIXED ASSETS

(2,149,312) 116,732 51 (513,024)

Key money 5,320 (5,320) - - - -

Aut. data proc. system (804,165) 1 - (296,828)

Works in rented properties

(802,767) 116,731 51 (200,802)

Other intangibles (547,700) 5,320 - (15,394)

TANGIBLE FIXED ASSETS

(2,215,766) 153,581 (51) (761,474)

Buildings and land (113,644) - (39,306) (67,753)

Major repairs and improvements

(344,235) 239 39,286 (138,257)

Furniture and material (153,858) 539 - (43,825)

Machines and tools (374,025) - - (166,476)

Transport material and IT equipment

(782,064) 146,901 - (207,251)

Advances for fixed assets (447,940) 5,902 (31) (137,912)

(4,365,078) 270,313 - (1,274,498)

14. DEPOSITS

As at 31 December 2015 and 2014, the demand deposits heading is detailed as follows:

Thousand AOA

2015 2014

National Currency

Foreign Currency Total

DEMAND DEPOSITS – RESIDENTS

Public sector 1,940,488 679,975 2,620,463

Private sector 75,109,333 16,206,678 91,316,011

77,049,821 16,886,653 93,936,474

DEMAND DEPOSITS – NON-RESIDENTS

1,644,306 402,096 2,046,402

DEMAND DEPOSITS 78,694,127 17,288,749 95,982,876

2015

77

As at 31 December 2015 and 2014, term deposits showed the following structure by currency and type:

As at 31 December 2015 and 2014, the term deposits of Customers in portfolio showed the following structure, according to their residual

duration:

15. LIQUIDITY FUNDING

As at 31 December 2015 and 2014, these headings are detailed as follows:

Thousand AOA

2015 2014

FC FC

1 to 2 1 to 3 3 to 6 Up to 1 week

1 to 3 months

3 to 6 months

TotalAverage

rate

TERM

Funds raised from national credit institutions

– – – – – – –

Funds raised from credit institutions abroad

– – – 4,809,583 6,778,433 5,030,146 16,618,162 3.05%

LIQUIDITY FUNDING

– – 4,809,583 6,778,433 5,030,146 16,618,162 –

2015

Thousand AOA

2015 2014

MATURITY PERIOD

Up to 3 months 35,776,120

3 to 6 months 21,447,050

6 months to 1 year 27,693,865

Over 1 year - -

84,917,035

Thousand AOA

2015 2014

FC NC FC Total

TERM DEPOSITS – RESIDENTS

Public sector 601,265 23,822 625,087

Private sector 44,358,627 39,328,745 83,687,372

44,959,892 39,352,567 84,312,459

TERM DEPOSITS – NON-RESIDENTS

454,264 150,312 604,576

TERM DEPOSITS 45,414,156 39,502,879 84,917,035

78

16. LIABILITIES IN THE PAYMENT SYSTEM

As at 31 December 2015 and 2014, these headings are detailed as follows:

Thousand AOA

2015 2014

FC NC FC

OWN FUNDS IN TRANSIT

Own funds in transit 66,875 –

CLEARING OF CHEQUES AND OTHER PAPERS

Bank cheques – 182,075 –

Certified cheques – 294,350 –

EMIS clearing 875 – –

OTHER OPERATIONS PENDING SETTLEMENT

Orders payable 1,336,398 210,610

1,812,823 210,610

2,023,433

The heading Clearing of cheques and other papers represents the value of the Bank cheques and certified

cheques that have been issued and are yet stated in the clearing.

The heading Other operations pending settlement refers to the value of payment orders that are made at two

days.

17. FOREIGN EXCHANGE TRANSACTIONS


Thousand AOA

2015 2014

SALE OF CURRENCY

National currency – 1,544,895

Foreign currency 1,096,891

2,641,786

As at 31 December 2015, the heading in Foreign currency includes the amount of 2,303,515 thousand AOA,

relative to a USD/EUR swap operation, with the counterpart being Banco Comercial Português.

The values relative to the sale of currency are presented in Note 9.

2015

79

18. OTHER LIABILITIES


Thousand AOA

2015 2014

FC NC FC

OTHER TAX RELATED LIABILITIES

Stamp Duty 53.826 781

Urban Property Tax – 2.630 1.120

Withholding Law 7/97 – – 16.985 5.342

Provisional tax withheld on provision of services

– –

Industrial Tax – 1.018.032 –

Consumption Tax – 207 243

Tax on Dependent Income 104 – 255 –

Capital Gains Tax 3.515 14.385

Provision for deferred tax charges – 128.773 –

1.224.016 21.871

OTHER CIVIL RELATED LIABILITIES

Payables due to acquisition of assets and rights

Suppliers 2.772 2.635

Miscellaneous payables

Rents payable – – 3.583 –

Assistance contracts – 252.859 –

Other services provided – 211.045 –

Other values withheld in favour of BCP

– – 904.683

CDI deferred fees –

Other 337.476 2.315

807.735 909.633

OTHER LIABILITIES OF ADMINISTRATIVE NATURE

Staff, wages and remunerations 752.323 –

Other – 7.644 –

759.967 –

3.723.222

As at 31 December 2015, the heading Staff, wages and remunerations corresponds to values already recorded

as costs but that have not yet been paid-up.

2015

80

As at 31 December 2015, the heading Industrial Tax records the amount of 1,111,065 thousand AOA, relative

to Industrial Tax payable, as mentioned in Note 21.

Pursuant to Law number 19/14 of 22 October, the value of Industrial Tax is calculated by applying a rate of 30%

on taxable earnings.

The heading Provisions for deferred tax charges refers to deferred tax liabilities, derived from calculating the fair

value of the portfolio of securities.

As at 31 December 2015, the heading Other values withheld in favour of BCP corresponds to the value of

credit that has been paid by Customers of Banco Comercial Português at Banco Millennium Angola, awaiting

authorisation from Banco Nacional de Angola for its transfer.

As at 31 December 2015 and 2014, the deferred tax liabilities generated by temporary differences are of the

following nature:

Thousand AOA

2015 2014

Central Bank securities - -

Treasury Bills 7,561

Treasury Bonds 49,613

Treasury Bonds indexed to the USD and in foreign currency 71,598

DEFERRED TAX LIABILITIES 128,772

The Bank records deferred tax liabilities in the calculation of securities against the heading of reserves, assuming

the existence of future taxable earnings and based on the tax legislation in force.

19. PROVISIONS

Thousand AOA

2015

Balance 31/12/2014 Reinforcement

Recovery/ Annulment Uses

Exchange rate differences

Balance 31/12/2015

Credit – Risk levels (Note 10)

7,793,500 14,691,993 (7,994,937) (1,799,900) 726,708 13,417,364

Signature credit 466,606 217,773 (163,459) - 6,469 527,389

Miscellaneous risks (Note 11)

234,144 153,224 (12,914) (44,300) 6,405 336,559

Retirement/Survival pensions

196,055 - (196,055) - - -

8,690,305 15,062,990 (8,367,365) (1,844,200) 739,582 14,281,312

Thousand AOA

2014

Balance 31/12/2013 Reinforcement

Recovery/ Annulment Uses

Exchange rate differences

Balance 31/12/2014

Credit – Risk levels (Note 10)

5,198,841 2,523,951 - (20,305) 91,013 7,793,500

Signature credit 392,671 195,224 (121,289) - - 466,606

Miscellaneous risks (Note 11)

185,763 58,381 - (10,000) - 234,144

Retirement/Survival pensions

151,916 44,139 - - - 196,055

5,929,191 2,821,695 (121,289) (30,305) 91,013 8,690,305

2015

81

The provision for Miscellaneous risks aims to meet estimated costs and potential losses arising from the Bank's

activity (Fraud), as mentioned in Note 11.

The provisions for credit and signature credit are made pursuant to the accounting principles described in 3.2.4

of Note 3.

20. SHARE CAPITAL AND MOVEMENT IN EQUITY

SHARE CAPITAL

The value recorded under the heading Share Capital corresponds to the direct investment made by the

Shareholders. On 15 May 2008, a partnership agreement was concluded between Millennium BCP, the Angolan

State oil-producer Sonangol and Banco Privado Atlântico, S.A. (BPA), which covered the entry of these entities

in the share capital of Banco Millennium Angola (BMA) and the acquisition by BMA of a 10% holding in the share

capital of BPA.

In January 2012, the deed of the share capital increase was registered, which enabled the entry of the new

Shareholder, Globalpactum.

As at 31 December 2015 and 2014, the Bank's shareholder structure is as follows:

2015 2014

Number of shares %

BCP África, SGPS, Lda 4,998,000 50.08%

BCP Investment Bank B.V. 500 500 0.01%

BCP Bank & Trust Company Ltd 500 500 0.01%

BCP Finance Bank LTD 500 500 0.01%

BCP Finance Company 500 500 0.01%

Sonangol 2,984,032 29.90%

BPA 1,497,006 15.00%

Globalpactum 499,002 5%

9,980,040 100.00%

EARNINGS PER SHARE

The earnings per share are obtained by dividing the Bank's net income by the number of shares.

2015 2014

Earnings per share 0.606

RESERVES AND FUNDS

Thousand AOA

2015 2014

RESERVES AND FUNDS

Adjustment to the fair value of financial assets available for sale 300,471

Legal reserve 3,934,908

Other reserves 24,105,930

28,341,309

Pursuant to the current legislation, the Bank should reinforce the legal reserve on an annual basis by 10% of the

net income. For this purpose, a minimum of 10% of the net income of the previous year is transferred annually

to this reserve. This reserve may be used to cover accumulated losses only when all other constituted reserves

have been depleted.

2015

82

21. TAXES

The Bank is subject to Industrial Tax and considered, for tax purposes, a Group A taxpayer. Its income is taxed

under the terms of number 1 of article 64 of Law number 19/14, of 22 October, with the applicable tax rate

being 30% (3.2.9. of Note 3).

As at 31 December 2015 and 2014, the calculation for purposes of determining the industrial contribution may

be detailed as follows:

Thousand AOA

2015 2014

EARNINGS BEFORE TAXES 6,759,233

Value to be deducted (3,473,811)

Value to be added 108,018

TAXABLE PROFIT 3,393,440

Nominal tax rate 30%

CALCULATED CURRENT TAX 1,018,032

DEFERRED TAX -

NET INCOME FOR THE PERIOD 5,741,201

Effective tax rate 15.1%

The value to be deducted identified above refers to the interest of public debt securities (Treasury Bonds

and Treasury Bills), as well as the dividends receivable from Banco Privado Atlântico, S.A., which essentially

correspond to income subject to capital gains tax, thus being deductible for purposes of determining the tax

base, up to its concurrence for the year, as established in article 47 of the Industrial Tax Code.

22. BALANCES AND TRANSACTIONS WITH RELATED ENTITIES

According to International Accounting Standard (IAS) 24, related entities are considered those where BMA

exercises, directly or indirectly, a significant influence on their management and financial policy and, the entities

which exercise a significant influence on the Bank's management.

2015

83

As at 31 December 2015 and 2014, the main balances and transactions maintained with related entities are as follows:

Thousand AOA

BMA Shareholders and Participated Companies

2015 Mbcp Group Sonangol BPA AMA

Members of the Board of

Directors of BMA Total

DISPOSABLE ASSETS

Sight deposits at credit institutions 6,116,838 - - - - 6,116,838

LIQUIDITY INVESTMENTS

Capital 10 - 6,585,662 - - 6,585,672

Interest and equivalent income 1,252 - 337,366 - - 338,618

LOANS GRANTED

Capital - 1,257,345 - - - 1,257,345

Interest and equivalent income - 113,209 - - - 113,209

BANK OVERDRAFTS

Capital 344,186 - - - - 344,186

Interest and equivalent income 11,638 - - - - 11,638

DEPOSITS

Demand deposits - 2,905,836 - 3,317 30,629 2,939,782

Term deposits - 6,686,886 - - 332,514 7,019,400

Interest and equivalent costs - - - - 11,116 11,116

OTHER LIABILITIES

Other payables 1,190,100 - - - - 1,190,100

Accrued costs 12,558 - - - - 12,558

LIQUIDITY FUNDING

Capital 19,414,280 - - - - 19,414,280


FEES – INCOME - 7,649 - 273 7,922

FEES – COSTS 383,756 - - - - 383,756

ADMINISTRATIVE COSTS 277,852 - - - - 277,852

DIVIDENDS

Dividends and other income receivable from BPA

- - 806,739 - - 806,739

Earnings from financial fixed assets - - 303,223 - - 303,223

INTEREST OF DIVIDENDS

Interest and equivalent costs - - 58,161 - - 58,161

FOREIGN EXCHANGE TRANSACTIONS

Foreign currency purchases 2,660,976 - - - - 2,660,976

Foreign currency sales 2,673,703 - - - - 2,673,703

FOREIGN EXCHANGE SWAPS

Currency swaps (assets) 31,784 - - - - 31,784

Currency swaps (liabilities) 19,665 - - - - 19,665

GUARANTEES PROVIDED

Guarantees provided - 172,911 - - - 172,911

GUARANTEES RECEIVED

Guarantees received 2,214,194 - - - - 2,214,194

CREDIT LINES

Unused limit - - - - - -

2015

84

Thousand AOA

BMA Shareholders and Participated Companies

2014 Mbcp Group Sonangol BPA AMA

Members of the Board of

Directors of BMA Total

DISPOSABLE ASSETS

Sight deposits at credit institutions

101,838 - - - - 101,838

LIQUIDITY INVESTMENTS

Capital - - 4,937,424 - - 4,937,424


LOANS GRANTED

Capital - 990,959 - - - 990,959

Interest and equivalent income - 76,380 - - - 76,380

BANK OVERDRAFTS

Capital 193,081 - - - - 193,081


DEPOSITS

Demand deposits - 6,999,583 - 4,682 24,216 7,028,481

Term deposits - - - - 199,677 199,677

Interest and equivalent costs - - - - 6,922 6,922

LIQUIDITY FUNDING

Capital 16,322,408 - - - - 16,322,408


FEES – COSTS 43,429 - - - - 43,429

Values receivable - - 477,507 - - 477,507

Earnings from financial fixed assets

- - 405,481 - - 405,481

FOREIGN EXCHANGE TRANSACTIONS

Foreign currency purchases 1,051,638 - - - - 1,051,638

Foreign currency sales 750,900 - - - - 750,900

GUARANTEES RECEIVED

Guarantees received 21,396 - - - - 21,396

CREDIT LINES

Unused limit 834,342 - - - - 834,342

2015

85

23. BALANCE BY CURRENCY

As at 31 December 2015 and 2014, the Bank's balances by currency show the following composition:

Thousand AOA

2015

Code Description AKZ USD EUR Other Total

110 Disposable assets 68,335,834 11,092,330 835,013 384,657 80,647,834

12010 Inter-money market transactions - 6,585,662 - - 6,585,662

12020Purchase of third party securities with repurchase agreement

- - - - -

12040 Investments in gold and other precious metals 2,210 - - - 2,210

13010 Trading - 329,930 - - 329,930

13020 Available for sale 10,413,667 64,700,121 - - 75,113,788

13030 Held to maturity 9,954,240 - - - 9,954,240

140 Derivative financial instruments 31,784 - - - 31,784

150 Loans in the payment system 130,420 - 20,639 - 151,059

160 Foreign exchange transactions 1,262,877 21,951 2,660,976 - 3,945,804

17010 Loans 117,765,713 29,161,344 9,038 - 146,936,095

17090 (-) Provisions for bad debt (10,652,254) (2,765,110) - - (13,417,364)

180 Other values 4,827,209 709,476 (20,639) - 5,516,046

190 Fixed assets 27,117,003 - - - 27,117,003

TOTAL ASSETS 229,188,703 109,835,704 3,505,027 384,657 342,914,091

21010 Demand deposits 111,561,702 17,775,373 1,009,218 592 130,346,885

21020 Term deposits 71,287,108 45,730,050 1,746,814 - 118,763,972

22010 Inter-money market transactions 11,562,245 19,791,980 432,889 - 31,787,114

240 Derivative financial instruments 19,665 - - - 19,665

250 Liabilities in the payment system 1,725,906 5,262,663 11,830 - 7,000,399

260 Foreign exchange transactions - 3,613,582 125,141 - 3,738,723

27080 Other funding raised - - - - -

280 Other liabilities 2,831,466 2,842,288 58,941 - 5,732,695

290 Provisions for probable liabilities 496,493 - 30,896 - 527,389

TOTAL LIABILITIES 199,484,585 95,015,936 3,415,729 592 297,916,842

410 Share capital 4,009,894 - - - 4,009,894

430 Reserves and funds 33,782,040 - - - 33,782,040

5 Net income for the year 6,759,876 - - - 6,759,876

440 Adjustments to fair value of financial assets 445,439 - - - 445,439

TOTAL EQUITY 44,997,249 - - - 44,997,249

TOTAL LIABILITIES + EQUITY 244,481,834 95,015,936 3,415,729 592 342,914,091

2015

86

Thousand AOA

2014

Code Description AKZ USD EUR Other Total

110 Disposable assets 23,772,429 10,655,717 1,952,551 303,212 36,683,909

12010 Inter-money market transactions 7,000,333 4,938,223 - - 11,938,556

12020Purchase of third party securities with repurchase agreement

- - - - -

12040 Investments in gold and other precious metals 2,225 - - - 2,225

13020 Available for sale 23,289,739 855,986 - 21,681,091 45,826,816

150 Loans in the payment system 250,235 669 9,474 241 260,619

160 Foreign exchange transactions 347,348 1,551,754 751,170 - 2,650,272

17010 Loans 92,527,052 32,973,773 40,924 - 125,541,749

17090 (-) Provisions for bad debt (5,956,658) (1,836,842) - - (7,793,500)

180 Other values 2,053,051 727,699 1,995 - 2,782,746

190 Fixed assets 26,775,291 - - - 26,775,291

TOTAL ASSETS 170,061,045 49,866,979 2,756,115 21,984,544 244,668,683

21010 Demand deposits 78,694,128 16,506,604 781,728 415 95,982,875

21020 Term deposits 45,414,156 38,863,538 639,341 - 84,917,035

22010 Inter-money market transactions - 15,450,215 1,044,466 123,481 16,618,162

250 Liabilities in the payment system 1,812,823 209,585 1,025 - 2,023,433

260 Foreign exchange transactions 1,544,895 1,044,084 52,549 258 2,641,786

27080 Other funding raised 7,105 - - - 7,105

280 Other liabilities 2,791,719 923,108 5,546 2,849 3,723,222

290 Provisions for probable liabilities 662,661 - - - 662,661

TOTAL LIABILITIES 130,927,487 72,997,134 2,524,655 127,003 206,576,279

410 Share capital 4,009,894 - - - 4,009,894

430 Reserves and funds 28,040,838 - - - 28,040,838

5 Net income for the year 5,741,201 - - - 5,741,201

440 Adjustments to fair value of financial assets 300,471 - - - 300,471

TOTAL EQUITY 38,092,404 - - - 38,092,404

TOTAL LIABILITIES + EQUITY 169,019,891 72,997,134 2,524,655 127,003 244,668,683

As at 22 January 2016, Banco Nacional de Angola sent BMA a letter with clarifications concerning the exchange

rate to be considered in the preparation of the financial statements as at 31 December 2015. This letter indicated

that, although the AOA/USD exchange rate to be used should be 135.315, as published on the website of Banco

Nacional de Angola, the Bank should also present the impacts derived from the exchange rate variation which

occurred between 31 December 2015 and 4 January 2016 in the "explanatory notes" to the financial statements.

2015

87

To this effect, the Bank considered the exchange rate of 155.612 AOA/USD and 154.838 AOA/USD to convert

the balance sheet values denominated in USD and indexed to the USD, respectively. The estimated impacts on

the main indicators are detailed in the following table:

Thousand AOA

HeadingExchange Rate

4.1.2016

Loans 137,000,870

Total assets 358,911,974

Deposits 258,636,553

Total liabilities 312,715,495

Net income 7,916,974

Total equity 46,196,479

24. NET INTEREST INCOME


Thousand AOA

2015 2014

INCOME FROM LIQUIDITY INVESTMENTS 512,046

Income from inter-financial money market transactions

From inter-money market transactions 160,810

Term deposits at credit institutions abroad 4,875

Term deposits at national credit institutions 283,064

Income from purchase of securities from third parties with repurchase agreement

– 63,297

INCOME FROM SECURITIES 3,068,330

From trading securities

Treasury Bonds in national currency indexed to foreign currency and in foreign currency

–

From securities available for sale

Treasury Bills 1,103,682

Treasury Bonds in national currency indexed to foreign currency and in foreign currency

1,964,648

INCOME FROM LOANS 12,483,961

INCOME FROM FINANCIAL INSTRUMENTS (ASSETS) 16,064,337

COSTS OF DEPOSITS 4,249,010

Demand deposits 21,051

Term deposits 4,227,959

LIQUIDITY FUNDING COSTS 494,926

Inter-money market transactions 561

Term deposits at credit institutions abroad 493,782

Term deposits at national credit institutions 583

COSTS OF FINANCIAL INSTRUMENTS (LIABILITIES) 4,743,936

NET INTEREST INCOME 11,320,401

The heading "Income from Securities" refers to interest of Treasury Bonds and Treasury Bills issued by the

Angolan State which are exempt from industrial tax and subject to capital gains tax when issued from January

2013 onwards (Note 21).

2015

88

25. EARNINGS FROM TRADING AND FAIR VALUE ADJUSTMENTS


Thousand AOA

2015 2014

TRADING SECURITIES

Treasury Bonds indexed to the USD exchange rate -

SECURITIES AVAILABLE FOR SALE

Treasury Bonds indexed to the USD exchange rate -

EARNINGS FROM TRADING AND FAIR VALUE ADJUSTMENTS -

26. EARNINGS FROM FOREIGN EXCHANGE TRANSACTIONS

As at 31 December 2015 and 2014, the heading of earnings from foreign exchange transactions is detailed as

follows:

Thousand AOA

2015 2014

Profit Loss Net

Earnings from:

Notes and coins - - (30,436) (30,436)

Foreign currencies - 3,395,243 - 3,395,243

EARNINGS FROM FOREIGN EXCHANGE TRANSACTIONS

- 3,395,243 (30,436) 3,364,807

2015

89

27. EARNINGS FROM FINANCIAL SERVICES RENDERED


Thousand AOA

2015 2014

INCOME FROM SERVICES RENDERED 5,026,689

Credit card fees 1,529,496

Documentary credit fee 544,961

Electronic clearing fee 357,421

Fee for guarantees provided 443,234

Leasing and factoring fee 155,198

Account management and maintenance fee 373,913

Transfer fee 608,025

Loan management fee 381,972

Fee for renewal of pledged current accounts 92,917

Loan opening fee 204,565

Cash withdrawal fee 174,946

Fee for blocking pledged current accounts 67,050

Fee on sales of foreign currency 84,482

Fee on purchase and sale of securities -

Documentary remittance fee 6,397

Other income from services rendered 2,112

COSTS RELATED TO FEES AND CUSTODY 822,377

Fees – VISA 311,710

Electronic clearing fees 432,089

Other costs related to fees 78,578

EARNINGS FROM FINANCIAL SERVICES RENDERED 4,204,312

2015

90

28. STAFF


Thousand AOA

2015 2014

MEMBERS OF THE MANAGEMENT AND SUPERVISORY BODIES 183,338

Basic retribution 140,067

Representation allowance 24,527

Allowances (Christmas + Holidays) 18,744

EMPLOYEES 4,043,443

Basic retribution 2,247,290

Other additional remunerations 112,757

Allowances 758,705

Social Security 264,904

Time exemption 111,418

Health expenses 206,865

Other expenses 341,504

STAFF 4,226,781

As at 31 December 2015 and 2014, the number of Employees at the Bank stood 1,224 and 1,107, respectively.

29. EXTERNAL SUPPLIES


Thousand AOA

2015 2014

Maintenance and repair 443,887

Hire and rental charges 836,372

IT services 382,996

Security and surveillance services 434,918

Communications 350,204

Transport 313,912

Publications, advertising and publicity 328,020

Other specialised services 192,625

Energy and fuel 127,264

Cleaning services 162,532

Travel, hotel and representation costs 248,508

Staff recruitment and training 87,362

Insurance 38,948

Auditors and consultants 41,538

Retainers and fees 88,313

Consumables 111,002

Water 29,747

EXTERNAL SUPPLIES 4,218,148

2015

91

30. OTHER ADMINISTRATIVE AND MARKETING COSTS


Thousand AOA

2015 2014

TAXES AND RATES NOT INCIDENT ON EARNINGS 215,724

Customs duties 970 3,595

Rates 16,693

Other taxes 195,436

PENALTIES APPLIED BY REGULATORY AUTHORITIES 1,268

DEPRECIATION AND AMORTISATION 1,274,498

Tangible fixed assets 761,474

Intangible fixed assets 513,024

OTHER ADMINISTRATIVE AND MARKETING COSTS 1,491,490

31. OTHER OPERATING INCOME AND COSTS AND PROVISIONS FOR OTHER VALUES AND PROBABLE LIABILITIES


Thousand AOA

2015 2014

MISCELLANEOUS COSTS AND LOSSES (I) 159,193

Costs related to levies 24,031

Costs related to insurance sales 30,000

Other costs 105,162

MISCELLANEOUS INCOME (II) 337,932

Income from miscellaneous services rendered 134,777

Reimbursement of communication and dispatch costs 41,104

Income from insurance sales 69,734

Income from recovered loans and interest 48,201

Other income 44,116

OTHER OPERATING COSTS AND INCOME (II)-(I) 178,739

Indemnities for breach of contract 3,400

Provisions for supplementary retirement pensions (44,138)

Other provisions (58,381)

PROVISIONS FOR OTHER VALUES AND PROBABLE LIABILITIES -99,119

79,620

2015

92

32. EARNINGS FROM FINANCIAL FIXED ASSETS


Thousand AOA

2015 2014

Gains on financial fixed assets 405,481

Losses on financial fixed assets - -

EARNINGS FROM FINANCIAL FIXED ASSETS 405,481

As at 31 December 2015 and 2014, the heading Gains on financial fixed assets refers to announced dividends

to be distributed by BPA.

33. NON-OPERATING EARNINGS


Thousand AOA

2015 2014

Capital gains of tangible fixed asset divestment 33,276

Capital gains of intangible fixed asset divestment -

Capital losses of tangible fixed asset divestment (110,128)

Gains and losses relative to previous years -

Loss through equity method - (4,230)

NON-OPERATING EARNINGS (81,082)

2015

93

34. OFF-BALANCE SHEET ITEMS


Thousand AOA

2015 2014

THIRD PARTY LIABILITIES 268,226,841

Irrevocable credit lines - 834,342

Guarantees received 266,482,066

Asset option – Sale of securities 910,433

LIABILITIES TO THIRD PARTIES 28,240,402

Guarantees provided 17,717,144

Documentary credit 10,523,258

Revocable commitments to third parties 10,549,204

LIABILITIES DUE TO SERVICES PROVIDED 66,384,617

Deposit and custody of values by third parties 45,546,833

Deposit and custody of values by the entity 18,905,001

Collection of values 1,932,783

SECURITIES HELD TO MATURITY -

Securities held to maturity -

FOREIGN EXCHANGE TRANSACTIONS 5,291,953

Purchase of foreign currency payable 2,650,272

Sale of foreign currency receivable 2,641,681

PRESENT VALUE OF LOAN OPERATIONS 130,487,741

Loans maintained in the assets 128,410,977

Loans transferred to loss 2,076,764

OTHER CONTROL ACCOUNTS 74,864,711

2015

94

As at 31 December 2015 and 31 December 2014, the provisions for guarantees provided amounted to 265,681

thousand AOA and 261,722 thousand AOA.

As at 31 December 2015 and 31 December 2014, the guarantees received by the BCP Group amounted to

2,214,193 thousand AOA and 21,396 thousand AOA.

35. SUBSEQUENT EVENTS

TRANSITION TO THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

BMA's financial statements presented were prepared in accordance with the accounting principles established in

the Accounting Plan for Financial Institutions (CONTIF), as defined in BNA Instruction 09/07, of 19 September,

and subsequent updates, namely Directive 04/DSI/2011, which establishes the compulsory adoption of the

international financial reporting standards (IFRS) for all matters related to accounting procedures and criteria

which are not established in the CONTIF.

Under the process of adoption of the IFRS by financial institutions in Angola, following the guidelines issued

by the BNA, and considering the timings defined for the accomplishment of the conversion process, BMA is

currently initiating its conversion process, but has not yet undertaken a qualitative and quantitative assessment

of the possible differences which may arise from changing its accounting rules.

The supervisory entities and the International Accounting Standards Board (IASB) continue to develop rules

which might affect the differences between the CONTIF and IFRS described in this Note, as well as differences

in future Financial Statements.

In 2015, BMA started its conversion plan with a view to preparing its Financial Statements pursuant to the IFRS

from 1 January 2016 onwards, on other words, with the first Financial Statements published in accordance with

the IFRS as at 31 December 2016.

The plan defined by BMA also seeks to comply with all the interim reports requested by the BNA under the

conversion process.

36. RELEVANT FACTORS

A merger of Banco Millennium Angola and Banco Privado Atlântico was agreed during 2105, which was

submitted to Banco Nacional de Angola for appraisal and approval.

With over two thousand Employees, one hundred and fifty Branches all over the country and over half a million

Customers, the new institution shall create synergies and economies of scale, which shall enable providing an

offer more directed at the challenges and needs of families, including a strong commitment towards the growth

of banking inclusion, through its national network and offer of digital banking technological solutions. The new

scale of intervention also aims to create new solutions for small and medium-sized enterprises operating in

Angola, which are the foundations of employment generation, as occurs in all countries that are under a process

of economic diversification and sustainability.

2015

2015 95

Considering the legal and statutory provisions relative to the legal reserve and special reserves;

Under the terms of the special regulations of Banco Nacional de Angola, namely number 1 of article 89 of the

Financial Institutions Law, of Instruction 09/07, of the prudential rules issued by the Supervisor and of article 35 of

the Articles of Association of Banco Millennium Angola, the proposed appropriation of the net income for 2015,

amounting to 6,759,876,296.92 AOA, is as follows:

a) 1,351,975,259.38 to the Legal Reserve;

b) 5,407,901,037.54 for reinforcement of the Free Reserves and/or distribution to the shareholders, as decided at

the General Meeting.

PROPOSED APPROPRIATION OF NET INCOME

96 2015

INDEPENDENT AUDITORS' REPORT

2015 97

98 2015

OPINION OF THE SUPERVISORY BOARD ON THE ACCOUNTS OF 2015

Honourable Members of the Board of Directors

1. Under the duties entrusted to the Supervisory Board, pursuant to articles 21 to 30 of the Articles of Association

of Banco Millennium Angola, S.A., this Governing Body, composed of Miguel Anacoreta Correia (Chairman),

Luzia Rosária de Fátima Oliveira de Lemos Neto, via attendance or using modern technologies to cover all

the points raised and texts, performed their duties exclusively through supervision of the Bank’s activity and

exclusively based on the accounts provided for the effect, in due time, by the Executive Committee.

2. Relative to the financial year of 2015, the Supervisory Board held meetings to examine the accounts of the

four quarters of the year (based on budget control documents) and the Interim Report for the first semester.

In these meetings, no aspect was detected that justified being specifically addressed in the Board of Directors'

meetings. The Supervisory Board expressed a favourable opinion of all the aforesaid accounts.

On 25 February, the Supervisory Board examined the Financial Statements reported for the fourth quarter

of 2015 and the full year of 2015, which merited its favourable opinion.

3. For the purposes of preparation of this Opinion, to be submitted to the appraisal of the Members of the

Board of Directors and the Annual General Meeting for examination and voting on the accounts relative to

the financial year of 2015, the elements described below were presented to the Supervisory Board:

a) Accounts for the financial year of 2015, accompanied by the Notes to the Financial Statements;

b) Report of the Independent Auditor.

4. The Supervisory Board carefully analysed the documents referred to above and drew the following conclusions

from this appraisal:

a) That the Balance Sheet, as at 31 December 2015, appropriately reflects the financial situation of BMA –

Banco Millennium Angola, S.A.;

b) That the Income Statement correctly portrays a Net Income of 6,759,875 thousand AOA for the year.

2015 99

5. As a result of the verification and analyses carried out, and in view of the complete audit of the annual Financial

Statements, conducted by the External Auditor, as well as its favourable opinion, albeit subject to confirmation

after decisions of the next Board of Directors' meeting, the Supervisory Board:

5.1. Is of the opinion that the Financial Statements of Banco Millennium Angola, S.A., repor ted as at

31 December 2015:

a) Are in conformity with the Law and comply with the statutory provisions, as well as the rules issued

by Banco Nacional de Angola;

b) Reflect, in a true manner, the Bank's financial situation as at 31 December 2015, as well as the result of

the operations carried out during 2015.

5.2. Its opinion is that the Board of Directors:

a) Should approve the Management Report of the Executive Committee and the Financial Statements

accompanying this Report, relative to the financial year ended on 31 December 2015;

b) Record a vote of praise for the work developed by the Executive Committee and by the workers of

the Bank.

Luanda, 25 January 2016

Miguel Anacoreta Correia, Chairman of the Supervisory Board

Luzia Rosária de Fátima Oliveira, 1st Member of the Supervisory Board

Madalena Adriano de Lemos Neto, 2nd Member of the Supervisory Board

Annual Report 2015

Banco Millennium Angola, S.A.

www.millenniumangola.ao

Head Office:

Avenida de Portugal, n.º 77

Luanda, Angola

Share Capital:

4,009,893,495.15 AOA

Registered at Luanda

Commercial Registry

under number 425/06 and with

legal person number 5 410 000 560

Published: May 2016

Graphic production:

Choice – Comunicação Global, Lda.

Documents

ANNUAL REPORT 2015 - Banco Millennium Atlântico r "//6"- 3&1035 r Contents 5 5 Message of the Chief Executive Officer 6 Main Highlights 7 Key Indicators 8 Executive Committee