FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS

The individual financial statements of Banco Millennium Atlântico, S.A. presented herein relate to the period ended 31 December 2023.

In accordance with the provisions of Notice 05/2019 of August 30, from Banco Nacional de Angola, the individual financial statements of Banco Millennium Atlântico, S.A., are prepared on a going concern basis and in accordance with the International Financial Reporting Standards (IAS/IFRS).

The financial statements are expressed in thousands of kwanzas (thousands of AOA) rounded to the nearest thousand.

The financial statements for the period ended December 31, 2023, were approved at the Board of Directors meeting held on March 15, 2024.

Individual Balance Sheets

	Notes	31.12.2023	31.12.2022
Assets
Cash and deposits at central banks	4	356,926,890	214,230,500
Loans and advances to credit institutions repayable on demand	5	94,147,108	46,169,024
Financial assets at fair value through profit or loss	6	299,015,502	260,385,874
Financial assets at fair value through other comprehensive income	7	53,107,016	54,236,351
Financial assets at amortised cost
Debt securities	8	467,315,333	306,297,438
Loans and advances to customers	9	479,108,472	453,601,310
Other loans and advances to central banks and credit institutions	10	81,193,455	30,547,298
Property, plant and equipment	11	92,372,476	103,859,695
Intangible assets	12	10,658,318	13,022,100
Non-current assets held for sale	13	716,352	0
Current tax assets	14	2,464,674	2,546,736
Deferred tax assets	14	3,657,438	3,750,143
Other assets	15	147,016,525	95,631,885
Total Assets		2,087,699,559	1,584,278,354
Liabilities and Equity
Deposits from central banks and other credit institutions	16	1,323,068	7,321,923
Deposits from customers and other loans	17	1,849,007,508	1,364,668,411
Financial liabilities at fair value through profit or loss	6	0	2,030,008
Provisions	18	3,613,319	2,926,832
Deferred tax liabilities	14	7,230,139	152,875
Other liabilities	19	14,566,717	17,469,183
Total Liabilities		1,875,740,751	1,394,569,232
Share capital	20	142,324,747	142,324,747
Share premiums	20	70,707,406	70,707,406
Treasury shares	20	(841,657)	(841,657)
Revaluation reserves	21	13,427,848	284,357
Other reserves and retained earnings	21	(22,765,732)	(26,263,845)
Individual net profit/(loss) for the period		9,106,196	3,498,114
Total Equity		211,958,808	189,709,122
Total Liabilities and Equity		2,087,699,559	1,584,278,354

Individual Income Statement

	Notes	31.12.2023	31.12.2022
Interest and similar income	22	89,197,498	95,773,570
Interest and similar expenses	22	(73,014,331)	(63,319,084)
Net interest income		16,183,167	32,454,486
Fees and commissions income	23	28,417,107	27,291,483
Fees and commissions expense	23	(6,814,391)	(6,877,822)
Profit/(loss) from fees and commissions		21,602,716	20,413,661
Profit/(loss) from financial assets and liabilities at fair value through profit or loss	24	38,504,385	(3,093,397)
Profit/(loss) from investments at amortised cost	25	417,836	134,431
Profit/(loss) from foreign exchange differences	26	32,490,097	22,451,332
Profit/(loss) from the sale of other assets	27	(16,002,681)	(883,728)
Other operating income	34	(9,558,600)	(7,506,367)
Profit/(loss) from financial operations		45,851,037	11,102,271
Operating income		83,636,920	63,970,418
Staff costs	28	(28,495,834)	(26,994,278)
Supplies and services	29	(19,109,419)	(18,433,543)
Depreciation and amortisation for the period	11 12 30	(9,580,382)	(10,139,056)
Provisions and impairment of other assets net of reversals	13 15 18 31	(7,744,577)	6,830,761
Impairment of other financial assets	5 32	(6,364)	3,838
Impairment of other financial assets at amortised cost	8 9 10 33	(9,762,011)	(11,341,301)
Impairment of financial assets at fair value through other comprehensive income	21	260,568	(731,416)
Profit/(loss) before tax from continuing operations		9,198,901	3,165,423
Income tax
Deferred tax	14	(92,705)	332,691
Current tax	14	0	0
Profit/(loss) after tax from continuing operations		9,106,196	3,498,114
Individual net profit/(loss) for the period		9,106,196	3,498,114
Average number of ordinary shares issued	35	53,821,603	53,821,603
Basic earnings per share (in AOA)	35	0.17	0.06
Diluted earnings per share (in AOA)	35	0.17	0.06

Individual Statements of Comprehensive Income

	Notes	31.12.2023	31.12.2022
Individual net profit/(loss) for the period		9,106,196	3,498,114
Other comprehensive income
Items that will be subsequently reclassified to profit or loss
Debt instruments at fair value through other comprehensive income
Changes in fair value	7 21	5,614,959	1,081,743
Transfer to profit or loss for impairment recorded in the period	21	260,568	(731,416)
Tax impact	14	(2,056,957)	(122,615)
		3,818,570	227,712
Items that will not be subsequently reclassified to profit or loss
Revaluation reserves of other property, plant and equipment
Gross amount	11 21	13,000,000	0
Tax impact	14	(4,550,000)	0
Other reserves resulting from valuation at fair value
Gross amount	7 21	1,346,032	0
Tax impact	14	(471,111)	0
		9,324,921	0
Profit/(loss) not included in the individual income statements		13,143,491	227,712
Individual comprehensive income for the period		22,249,687	3,725,826

Individual Statement of Changes in Equity

	Share capital	Share premiums	Treasury shares	Revaluation reserves	Other reserves and retained earnings	Individual net profit/(loss) for the period	Total equity
Balance as at December 31, 2021	142,324,747	70,707,406	(841,657)	56,645	19,845,525	(49,537,737)	(29,692,213)	3,428,368	185,983,296
Appropriation of net profit for the period
Transfer to legal reserve	0	0	0	0	342,837	0	342,837	(342,837)	0
Transfer to reserve and retained earnings						3,085,531	3,085,531	(3,085,531)	0
Changes in fair value, net of tax	0	0	0	227,712	0	0	0	0	227,712
Individual net profit/(loss) for the period	0	0	0	0	0	0	0	3,498,114	3,498,114
Balance as at December 31, 2022	142,324,747	70,707,406	(841,657)	284,357	20,188,362	(46,452,206)	(26,263,845)	3,498,114	189,709,122
Appropriation of net profit for the period
Transfer to legal reserve	0	0	0	0	349,811	0	349,811	(349,811)	0
Transfer to reserve and retained earnings	0	0	0	0	0	3,148,303	3,148,302	(3,148,303)	0
Changes in fair value, net of tax	0	0	0	13,143,491	0	0	0	0	13,143,491
Individual net profit/(loss) for the period	0	0	0	0	0	0	0	9,106,196	9,106,196
Balance as at December 31, 2023	142,324,747	70,707,406	(841,657)	13,427,848	20,538,173	(43,303,903)	(22,765,732)	9,106,196	211,958,808

Individual Cash Flow Statement

Individual cash flow statement for the periods ended December 31, 2023 and December 31, 2022

Thousands of AOA

	Notes	31.12.2023	31.12.2022
Cash flows from operating activities
Interest, commissions and other similar income received		76,867,325	126,892,721
Interest, commissions and other similar expense paid		(77,817,508)	(69,906,922)
Payments to employees and suppliers		(45,725,655)	(47,989,301)
Cash flows before changes in operationg assets and liabilities		(46,675,838)	8,996,498
(Increases)/decreases in operating assets and liabilities:
Financial assets at fair value through profit or loss		0	4,491,755
Financial assets at fair value through other comprehensive income		9,658,027	(48,609,618)
Financial assets at amortised cost
Debt securities		(9,201,959)	66,178,292
Loans and advances to customers		59,979,514	(41,849,352)
Other loans and advances to credit institutions		(50,459,542)	3,635,368
Deposits from central banks and other credit institutions		(1,939,791)	(76,317,615)
Non-current assets held for sale		116,444	219,729
Deposits from customers and other loans		172,116,492	(52,751,427)
Other operating assets and liabilities		(32,539,805)	7,832,916
Net cash from operating activities before income tax		101,053,543	(128,173,455)
Income tax paid		(10,643)	248,140
Net cash from operating activities		101,042,900	(127,925,315)
Cash flows from investing activities
Acquisitions of property, plant and equipment and intangible assets, net of disposals		(8,524,572)	(8,475,639)
Net cash from investment activities		(8,524,572)	(8,475,639)
Cash flows from financing activities
Payments relating to lease liabilities		(3,479,142)	(1,576,290)
Net cash from financing activities		(3,479,142)	(1,576,290)
Changes in cash and cash equivalents		89,039,186	(137,977,243)
Cash and cash equivalents at the beginning of the period		260,406,692	396,125,751
Effects of exchange rate changes on cash and cash equivalents		101,641,652	2,258,184
Net change in cash and cash equivalents		0	0
Cash and cash equivalents at the end of the period		451,087,530	260,406,692
Cash and cash equivalents (excluding impairment losses) include:
Cash	4	21,401,309	27,181,063
Cash and deposits at central banks	4	335,525,581	187,049,438
Loans and advances to credit institutions repayable on demand	5	94,160,640	46,176,191
		451,087,530	260,406,692

The following notes form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS

Introduction

Notes to the Financial Statements

1. Introduction

FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS