The profits of iib Cabo Verde, a bank led by the iib group in Bahrain and held in 10% by the Portuguese Novo Banco, increased by 77%in 2021, to three million euros, the best result in the institution’s history.
The information is contained in the 2021 report and accounts of the International Investment Bank Cabo Verde (iibCV), which provides for the application of this result only in legal reserves (10%) and other reserves (90%), without distributing dividends, as had already happened in 2019 and 2020 to prevent economic repercussions from the covid-19 pandemic.
iibCV closed 2021 with a net profit of over 337.1 million escudos (three million euros).This performance compares with profits of 190.3 million escudos (1.7 million euros) in 2020 and 147.2 million escudos (1.3 million euros) in 2019.
In the report and accounts, the management of iibCV underlines that solvency and liquidity levels stood at 31% at the end of 2021 and 441 million escudos (four million euros), respectively, providing “an accommodative positioning of the equity structure”, ending the year with a 77% growth in net income, “constituting the best result in the history of the institution”, in more than ten years of activity in Cape Verde.
To “win the moment”, still marked by the economic crisis caused by the pandemic in 2021, the administration underlines that it remained “faithful to the execution of the fundamental variables” of the strategic plan, “which resulted in a balance sheet growth by 53% [to 30 billion escudos, 270.5 million euros],through more efficient and diversified sources of funding, enabling an asset structure with a superior risk-weighted return”.
This management, he adds, was also reflected in the increase in banking income by 41%, to 725.4 million escudos (almost 6.6 million euros), given the “increase in net interest income by 12% and in the complementary margin by 301%”.
“With regard to the loan portfolio, it is important to highlight the proactive management of the portfolio, which enabled differentiated monitoring of customers, a determining factor in the recovery of non-performing loans (NPLs), whose proportionality was fixed at 1.49%”, he says. up in the report and accounts.
The bank’s global loan portfolio grew by 1% in 2021, to almost 5.5 billion escudos (49.6 million euros). The non-performing loan portfolio (over 90 days) thus totaled around 80.7 million escudos (730 thousand euros).
The bank closed 2021 with positive equity of 1,789 million escudos (16.1 million euros)and total assets of over 30 billion escudos (270.5 million euros), for liabilities of 28.2 billion escudos (254.4 million euros), practically half corresponding to customer deposits.
Customer resources, in deposits, registered a year-on-year growth of 5%, to almost 14.9 billion escudos (134.4 million euros). The iibCV, until 2019 called Banco Internacional de Cabo Verde (BICV) and formerly Banco Espírito Santo Cabo Verde, started its activity in July 2010and until mid-2018 it was fully owned by Novo Banco de Portugal.
On 11 July 2018, after approval by the supervisory bodies, 90% of the shares representing the share capital were acquired by iib Group Holdings WLL (iibGroup), based in the Kingdom of Bahrain, which aims to acquire and manage banking assets in the Middle East and Africa. The rebranding from BICV to iibCV was only completed in mid-2019, with Novo Banco (through Novo Banco África) remaining part of the shareholder structure, with a minority stake of 10%.
With a share capital of 1,433 million escudos (13 million euros), iibCV currently has a physical presence on the islands of Santiago and Sal and has around 40 employees.
