1

ABC Holdings LtdInterim Results to June 2009

2

HIGHLIGHTS

BWP June 09 % change

June 08 Dec 08

Attributable profits (‘000s)

36,494 50% 73,638 85,818

Basic EPS (thebe) 25.4 50 % 51.2 60.3

Dividend per Share ( thebe)

- - 8.00 8.00

Cost to income ratio (%) 72% 22 % 50%

59%

Net asset value (‘000s) 505,281 22 % 412,852

437,654

NAV per share (thebe) 3.51 22 % 2.87 3.04

Total assets (‘000s) 4,083,081

22 % 3,338,641

3,967,938

3

HIGHLIGHTS

• African Banking Corporation successfully re-branded to BancABC across all operating territories

• Total income 9% up to BWP 235 m (H108: BWP 215 m)

• Cost to income ratio increased to 72% (H108: 50%)

Retail banking development

Dollarisation of the Zimbabwe economy and costs iro strengthening the existing operations

• Attributable profit of BWP 36.5 m (H108: BWP 73.6 m), and EPS of 25.4 thebe (H108: 51.2 thebe)

• Strong operational and financial performance in Mozambique entrenches BancABC’s positioning in that market

• Retail banking development progressing well - branch network to be rolled out H209.

4

ECONOMIC OVERVIEW

5

ECONOMIC OVERVIEW GLOBAL GDP GROWTH

-4

-2

0

2

4

6

8

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

%

Differential between SSA and World Growth World Growth SSA Growth

AsianCrisis

Dot-comCrisis

Source: IMF

6

• Global economy is projected to decline by 1.4% in 2009

• SSA economic growth suffering from the negative impact of global recession but still projected to grow at 1.5% in 2009, outperforming global economy

• Negative growth in Botswana

• Zimbabwe expected to registered GDP growth for the first time in 10 yrs

• Commodity prices weakened significantly in sympathy with the global economic downturn resulting in weak export earnings

• Inflation pressures have generally been low on the backdrop of weak global demand and subdued oil prices

• Zimbabwe burst the inflation bubble following the adoption of multi-currency system – hyperinflation turned to deflation

ECONOMIC OVERVIEW KEY INDICATORS

7

Country

GDP

(USDm)

2009

GDP Growth

rate

2009 est

Banking Deposits (USDm)

Jun 2009

Banking Credit

(USDm)

Jun 2009

Banking Assets

(USDm)

Jun 2009

Population

2009 est (m)

No. of

banks

Botswana 12,200 -10.4% 4,883 2,573 6,580 1.8 12

Mozambique 10,380 4.3% 2,876 1,962 4,109 21.2 12

Tanzania 21,854 2.5% 4,739 4,626 6,770 40.6 36

Zambia 13,931 4.0% 2,059 1,535 2,942 12.9 14

Zimbabwe 3,498 3.7% 706 263 1,009 12.6 28

ECONOMIC OVERVIEW COUNTRY OPPORTUNITY

Source: Central Banks, Ministries of Finance and Central Statistical Offices

8

• SSA currencies are recovering from significant declines against the USD experienced in Q408 and Q109

• Volatility in forex markets higher than previously experienced

• Zimbabwe presents great growth opportunity despite low asset base

• Depreciation of ZMK has reduced deposit base

• Banking assets however continued to grow, albeit at a slower pace

ECONOMIC OVERVIEW COUNTRY OPPORTUNITY

9

ECOMOMIC OVERVIEW INFLATION AND INTEREST RATES

CountryInflation

Rate June-2009

Avg. TB Yield Rate June-

2009

Avg. Prime Lending

Rates 2009

Avg. Prime Lending

Rates 2008

Zimbabwe* 0.6% --- 9.6 % 3,700%

Botswana 7.0 % 11.4 % 15.5 % 16.6%

Mozambique 2.7 % 11.5 % 16.4 % 20.1%

Zambia 14.4 % 14.0 % 20.9 % 25.2%

Tanzania 10.7 % 11.6 % 13.5 % 13.6%

*Monthly inflation

10

COUNTRY OVERVIEW

11

COUNTRY OVERVIEW ATTRIBUTABLE PROFIT

BWP’000sJune 09

% contributio

nJune 08

% contributio

n Dec 08

% contributio

nBancABC Botswana 5,959 41% 5,968 12% 13,193 23%BancABC Mozambique

17,475 120% 7,340 15% 16,644 29%

BancABC Tanzania 1,678 12% 2,666 7% 10,096 17%

ABC Zambia*(12,669)

-87% 4,710 10% (7,223) -13%

BancABC Zimbabwe 2,133 14% 27,613 56% 25,338 44%Banking operations

14,556 100% 48,297 100% 58,048 100%

H.O. and other 21,938 25,341 27,770TOTAL 36,494 73,638 85,818

*includes Microfin Africa

12

COUNTRY OVERVIEW BOTSWANA

• Economy severely impacted by declining diamond prices

• Loan book declined by 9% from Dec 08 but up 17% from June 08

• Impairments contained at prior year levels

• Total income increased by 15% to BWP 39.1 m

• Net interest income marginally down to BWP 16.9 m (H108: BWP 18.2m)

• Other income increased significantly to BWP 22.3 m (H108: BWP 15.8m), predominantly foreign exchange trading income

• Retail expansion and staffing costs impacted profitability

• Attributable profit stable at BWP 6.0m

13

COUNTRY OVERVIEW MOZAMBIQUE

• Impressive performance with attributable profit up 140% to BWP 17.5 m

• Net interest income up 57% to BWP 21.5m

• Loan book grown by 25% from Dec 08 and 75% from June 08

• Other income up 162% to BWP 28.6 m

• Increase in business volumes

• Higher margins owing to high volatility

• Foreign exchange trading income

• Low levels of impairments due to economy’s lesser dependence on commodity prices

• Banc ABC’s strong niche position in market place reinforced

14

COUNTRY OVERVIEW TANZANIA

• Net interest income increased to BWP 14.2 m (H108: BWP 11.6 m)

• Loan book grew 43% YOY but declined 14% since Dec 08

• Other income grew by 32% to BWP 11.9 m

• Impairments significantly higher at BWP 5.6 m (H108: BWP 1.0 m)

• Attributable profit lower at BWP 1.7 m (H108: BWP 2.7 m)

15

COUNTRY OVERVIEW ZAMBIA

• Zambian economy very hard hit by slump in copper prices during 2008, significant lag effect into broader economy and support sectors

• High levels of impairments of BWP 22m due to resulting economic impact

• Net interest income stable at BWP 32.4 m, but other income declined due to limited liquidity

• Management changes implemented

• Merger of Microfin and ABC Zambia operations expected to produce synergistic cost savings

16

COUNTRY OVERVIEW ZIMBABWE

• Overall income down vs. H108, but improved from H208

• Net interest income BWP 2.6 m (H108: BWP 8.6m)

• Other income BWP 12.8m (H108: BWP 32.1m) due to reduced investment property income and tight liquidity

• Attributable profit of BWP 2.1 m (H108: BWP 27.6 m)

• Significant cost increase due to dollarisation

• Decision taken to divest of investment portfolio to fund banking operations

• Promising signs of banking sector recovery in Zimbabwe

• Stabilising Zimbabwe economy presents great growth opportunities off a very low base

17

FINANCIAL OVERVIEW

18

FINANCIAL OVERVIEW INCOME STATEMENT

• Net interest income up 11% to BWP 78.7m

• Non interest income up 8% to BWP 156.5m, driven by forex income

• Total income up 9% to BWP 235 m (H108: BWP 215 m);

• Net interest income contribution to total income stable at 33%

• Cost to income ratio increased to 72% (H108: 50%) due to the retail banking development, dollarisation of the Zimbabwe economy and strengthening of human capital across the Group

• Net interest income covered 47% of costs

• Basic EPS 25.4 thebe (H108: 51.2 thebe);

• Average return on equity remains positive at 16% (H108: 39%);

19

FINANCIAL OVERVIEW INCOME SPLIT

60%39% 33% 33% 33%

40%61% 67% 67% 67%

June 05 June 06 June 07 June 08 June 09

Net interest income Other income

• Income composition consistent for last three years

• Interest income to contribute proportionally more going forward

• Expected return to stability in the global markets

• Redeployment of capital from non-core assets to interest earning assets

20

FINANCIAL OVERVIEW OTHER INCOME

BWP’000s June 09 June 08

%

changeGains from investment activities 71,569 59,040 21%Dividends received 21 1,444 -99 %Fee and commission income 37,033 26,982 37 %Fx trading income and currency revaluation

44,046 17,015 159 %

Fair value gains on investment properties

(12,478) 32,901 -138 %

Fair value adjustment: derivative instruments

9,762 (4,254) 329 %

Rental and other income 6,589 11,693 -44 %Total 156,542 144,821 8 %

• Significant growth in foreign exchange trading volume, especially in Mozambique and Botswana

21

FINANCIAL OVERVIEW 5 YEAR EARNINGS

• Trend shows effect of inflation adjusted accounting in Zimbabwe

• Bar Zambia, all banking operations remain profitable

22

FINANCIAL OVERVIEW BALANCE SHEET

• Deposits increased by 4% from Dec 08 and 26% from June 08 to BWP 1.9 billion

• Region’s high exposure to commodities impacted significantly on business growth and debt servicing

• Group impairments as a result increased by 215% to BWP 41m, with Tanzania and Zambia increasing by 340% and 460% respectively

• Strengthening of Group credit department and systems ongoing

• Group balance sheet grew by 24% from June 08 and 4% from December 08 to BWP 4.1 billion

• Loans and advances up by 38% to BWP 2.2 billion compared to June 08, but declined by 4% since December 08 due to deliberate policy to curtail lending

• NAV per share increased by 15% from December 2008 and 22% from June 2008, to 3.51 thebe per share;

23

FINANCIAL OVERVIEW DEPOSIT GROWTH

1,338

704556

204124

429

1,012

450

276113

Botswana Mozambique Tanzania Zambia Zimbabwe

June 09 June 08

• 26% growth in deposits

• Botswana, Mozambique and Tanzania grew by over 30%

• Zambia recorded a decline

24

FINANCIAL OVERVIEW DEPOSIT BOOK SPLIT

Botswana46%

Mozambique24%

Tanzania19%

Zambia7%

Zimbabwe4%

25

FINANCIAL OVERVIEW LOAN BOOK GROWTH

676

455530

354

100

0

336260

581

361

Botswana Mozambique Tanzania Zambia Zimbabwe

June 09 June 08

• Net loans increased by 38% from June 08

• All subsidiaries registered significant growth with the exception of Zambia which grew marginally

26

FINANCIAL OVERVIEW LOAN BOOK SPLIT

Botswana32%

Mozambique21%

Tanzania25%

Zambia17%

Zimbabwe5%

27

FINANCIAL OVERVIEW 5 YEAR NAV TREND

• NAV per share increased 22%

• Consistent NAV growth over the last 5 years

• Zimbabwe operations positive contribution to capital in 2009

28

FINANCIAL OVERVIEW CAPITAL

BWP’000

Capital*

June 09

FCTR

June 09 CAR

Capital*

June 08

FCTR

June 08

BancABC Botswana

119,950 - 17% 105,810 -

BancABC Mozambique

157,288

(5,514) 20% 113,533 (1,379)

BancABC Tanzania**

130,045 (10,603) 14% 104,044 3,790

ABC Zambia*** 65,596 (2,968) 14% 146,484 26,900

BancABC Zimbabwe

92,922 (197) 45% 103,105(157,05

8)

*including Tier II** including TDFL***including Microfin

29

FINANCIAL OVERVIEW CAPITALISATION

• Mutually agreed not to draw down the proposed US$25 m investment by CVCI

• Zimbabwe investment portfolio of equity and real estate assets to be liquidated to fund banking operations – original capital preservation strategy for Zimbabwe no longer necessary

• The proceeds are expected to meet the Group’s funding needs

• Planned rights issue postponed

• IFC to disburse 50% of US$13.5 m convertible loan

• Balance to be drawn down over the next 12 months

30

RETAIL BANKING

• Significant investment in retail banking made in systems and human capital

• BWP 22 m in direct expenses

• Investment in IT systems of US$3.2 m

• Retail Banking head office now appropriately staffed, but contributed to overall higher employee costs

• 9 branches to be opened by the end of 2009

• Costs expected to continue to increase as project rolls out

• Retail banking expected to contribute meaningfully in 2nd half of 2010

• Branch profitability estimated at between 18 to 24 months

31

OUTLOOK CHALLENGES

• Economies across the region beginning to show signs of recovery

• Strengthening commodity prices especially copper, nickel and diamonds

• Expected improvement in incidence of bad debts

• Major thrust continues to be consolidation and ensuring modest growth notwithstanding high costs as a result of retail banking

• Continued proactive management of the loan book• Merger of Zambia operations should result in cost savings and

turn around• Deposit mobilization remains a key focus area for the group,

particularly in Zambia

• Dollarisation of the Zimbabwe economy brings liquidity challenges, but presents huge opportunities

32

THANK YOU

33

APPENDICES

34

ECONOMIC ENVIRONMENT GRAIN PRICES

0

100

200

300

400

500

Jan-

05M

ay-0

5Se

p-05

Jan-

06M

ay-0

6Se

p-06

Jan-

07M

ay-0

7Se

p-07

Jan-

08M

ay-0

8Se

p-08

Jan-

09M

ay-0

9

Mai

ze &

Whe

at, U

S$/t

0

200

400

600

800

1000

Ric

e, U

S$/m

t

Maize Wheat Rice

International Grain Prices Regional Grain Prices

0

100

200

300

400

500

Jan

-07

Ap

r-0

7

Jul-

07

Oct

-07

Jan

-08

Ap

r-0

8

Jul-

08

Oct

-08

Jan

-09

Ap

r-0

9

Maiz

e P

rice

, US$/t

World

Moz

Kenya

Tanz

Zambia

Source: World Bank

35

ECONOMIC ENVIRONMENT EXCHANGE RATES

70

80

90

100

110

120

130

140

150Jan-0

7

Apr-

07

Jul-

07

Oct-

07

Jan-0

8

Apr-

08

Jul-

08

Oct-

08

Jan-0

9

Apr-

09

Jul-

09

Exch. R

ate I

ndex, Jan 0

7=

100

ZMK/USD

MZN/USD

TZS/USD

BWP/USD

Depre

cia

tion

Appre

cia

tion

70

80

90

100

110

120

130

140

150Jan-0

7

Apr-

07

Jul-

07

Oct-

07

Jan-0

8

Apr-

08

Jul-

08

Oct-

08

Jan-0

9

Apr-

09

Jul-

09

Exch. R

ate I

ndex, Jan 0

7=

100

ZMK/USD

MZN/USD

TZS/USD

BWP/USD

Depre

cia

tion

Appre

cia

tion

70

80

90

100

110

120

130

140

150Jan-0

7

Apr-

07

Jul-

07

Oct-

07

Jan-0

8

Apr-

08

Jul-

08

Oct-

08

Jan-0

9

Apr-

09

Jul-

09

Exch. R

ate I

ndex, Jan 0

7=

100

ZMK/USD

MZN/USD

TZS/USD

BWP/USD

70

80

90

100

110

120

130

140

150Jan-0

7

Apr-

07

Jul-

07

Oct-

07

Jan-0

8

Apr-

08

Jul-

08

Oct-

08

Jan-0

9

Apr-

09

Jul-

09

Exch. R

ate I

ndex, Jan 0

7=

100

ZMK/USD

MZN/USD

TZS/USD

BWP/USD

Depre

cia

tion

Appre

cia

tion

36

ECONOMIC ENVIRONMENT GDP GROWTH

-14

-12

-10

-8

-6

-4

-2

0

2

4

6

8

2007 '08 '09 2007 '08 '09 2007 '08 '09 2007 '08 '09 2007 '08 '09

Initial ProjectionsRevised Projections

Botswana Mozambique

Zimbabwe

Tanzania Zambia

-14

-12

-10

-8

-6

-4

-2

0

2

4

6

8

2007 '08 '09 2007 '08 '09 2007 '08 '09 2007 '08 '09 2007 '08 '09

Initial ProjectionsRevised Projections

Botswana Mozambique

Zimbabwe

Tanzania ZambiaBotswana Mozambique

Zimbabwe

Tanzania Zambia

37

ECOMOMIC ENVIRONMENT EXCHANGE RATES

To 1 BWP30 Jun-09 31 Dec-

0830 June-08

United States Dollar 0.15 0.13 0.15

Mozambique Metical 3.95 3.38 3.96

South African Rand 1.14 1.25 1.20

Tanzania Shilling 193 174 180

Zambian Kwacha 765 636 494

Zimbabwe Dollar - 88 Quad* 24.9 billion*

•ZWD Old Mutual implied rate•ZWD revalued in 2008

38

ECOMOMIC ENVIRONMENT EXCHANGE RATES

To 1 US dollar 30 Jun-09 31 Dec-08 30 June-08

Botswana Pula 7.76 7.54 6.53

Mozambique Metical

27.13 25.50 24.05

South African Rand

7.71 9.40 7.83

Tanzania Shilling 1 303 1 315 1 173

Zambian Kwacha 5 170 4 795 3 225

Zimbabwe Dollar - 665 Quad* 162.6 billion*

•ZWD Old Mutual implied rate•ZWD revalued in 2008

39

FINANCIAL PERFORMANCE: NET INTEREST INCOME

Ave. Yield on

IEAAve. Cost

Spread

2009

Spread

2008

ABC Botswana 12.3% 11.3% 1.0% 1.3%

ABC Mozambique 10.8% 5.1% 5.7% 5.4%

ABC Tanzania 10.9% 7.2% 3.7% 3.7%

ABC Zambia 14.4% 9.3% 5.1% 4.9%

ABC Zimbabwe 21.4% 3.7% 17.7% 20.5%

Microfin Zambia 67.6% 22.3% 45.3% 43.9%

40

ECONOMIC OVERVIEW COMMODITY PRICES

• Commodity prices have recovered significantly from Dec-08 prices

-8.7

5.7

7.7

10.4

13.4

15.9

15.9

26

39.3

39.9

45.9

54.6

64.5

71.3

-20 -10 0 10 20 30 40 50 60 70 80

CoalAluminum

RiceCotton (A-Index)

MaizeWheat

GoldCoffee (Arabica)

SoyabeansPalladiumPlatinum

NickelCopper

Oil

%

Source: World Bank

41

INTERNATIONAL BANKS MARKET CAPITALISATION

• Modest recovery in banks mkt cap indicates that the worst of the banking crisis could be behind us

6

59 60

1025

7

49

1818

187

157

45

82

4656

40

0

50

100

150

200

250

Citigroup HSBC JP Morgan RBS BNPParibas

Barclays DeutscheBank

MorganStanley

US$

BnMkt Cap as of 9-Mar-09 Mkt Cap as of 4-Aug-09

42

INTERNATIONAL EQUITY MARKET CAP US$ BILLIONS

• International equity markets also showing signs of recovery

3,7003,8004,0004,30015,600

1,4001,8002,4003,1009,200

2,1063,3093,1754,04314,413

NYSE

Tokyo SE

NASDAQ

London SE

Shanghai SE

Mkt Cap: Jun-09

Mkt Cap: Dec-08

Mkt Cap: Dec-073,7003,8004,0004,30015,600

1,4001,8002,4003,1009,200

2,1063,3093,1754,04314,413

NYSE

Tokyo SE

NASDAQ

London SE

Shanghai SE

Mkt Cap: Jun-09

Mkt Cap: Dec-08

Mkt Cap: Dec-07

43

STOCK MARKET CAPITALIZATION SSA Countries US$ m

• JSE capitalisation up from US$485bn in Dec 08 to US$667bn in July 09

1,3033,5414,1063,745

10,985

67,790

1,4803,7023,9024,16810,792

54,004

Mkt Cap: Dec 2008

Mkt Cap: Jul 2009

Zim Zambia Botswana TanzaniaKenya

Nigeria