Abch results presentation june 2013 v6

ABC Holdings Limited

Interim Group Results for the six months

ended30 June 2013

2

- Highlights

- Economic review

- Operational overview

- Financial review

- Strategy and outlook

Agenda

3

DOUG MUNATSI

Highlights

4

Financial highlights

• The Group posted a pleasing set of results as diversification of our business into retail banking is beginning to bear fruit

• Competitive position of the Group improving in most markets

Delivering on our strategy:


H1:13 H1:12 % ∆Attributable profits (BWP’ m) 143 56 157%

Basic EPS (thebe) 59.1 37.2 59%

NAV per share (BWP)

5.54 4.15 33%

Dividend per share (thebe) 14.0 8.0 75%

5

Solid set of results all round, with attributable profits for the first 6 months being 8% better than 2012 full year profits of BWP133m


H1:13 H1:12 PAT (BWP’ m) 129 55 133%ROE 22% 18% 4%Cost to income 62% 75% -12%

6

Impressive profits recorded in H1:13 on the back of strong performance by BancABC Botswana, BancABC Zambia and BancABC Zimbabwe

Aggressive income growth brought cost to income ratio down to 62% from 75%


BWP’ million Jun-13 % ∆ Jun-12 Dec-12

Total assets

13,738 27%

10,823 13,408 Loans and advances

9,854 26%

7,818 9,144

Deposits

10,940 25%

8,781 10,675

Total equity

1,422 119%

650 1,137

7

Steady year on year growth in both deposits and loans driven by Retail banking with Botswana and Zambia showing impressive growthSix months reduced growth rates in Total assets and Loans reflecting deliberate strategy to “sweat” assets amidst liquidity constrains

8

Operational highlights

3 new branches since December 2012

Total customer numbers up by 15% from December 2012 to 250,000 in June 2013

Total staff complement up by 6% from December 2012 to 1,391 in June 2013

9

DOUG MUNATSI

Economic review

Global Economic Update

Global Economy

The Euro area likely to remain in recession in 2013

The Euro debt crises threatened to derail global recovery for the last two years

Europe

EM expected to continue to outperform developed countries in the medium term

Emerging Markets (EM)

SSA growth strong despite headwinds from global economy

Overarching theme in SSA has been the inability of economic growth to create employment to a sufficient degree

Sub-Saharan Africa (SSA)

Global economic growth to remain flat at 3.1% in 2013 – the same as 2012

10

Global economy: shaken by a crisis & recovery is subject to downside risks

-4

-2

0

2

4

6

8

10

World Advanced Developing Asia MENA SSA

2008 2009 2010 2011 2012 2013 11Source: BancABC own research

Major Risks to Economic Outlook

Global growth – China fails to engineer soft

landing

Emerging markets-

showing signs of slowing down

Oil – geopolitical tensions rise; oil

rallies and threatens global economy

Commodity Prices – Declining prices negatively affect export oriented

economies

Euro Debt Crisis– Escalates beyond current expectations

12

Rapidly Rising Income Levels in China &Other Emerging Markets...

Per capita Income Level Growth in Per Capita Income

US

$

0

100

200

300

400

500

600

700

2000

2003

2006

2009

2012

China

India

Germany

US

Japan

Index: 2000=

100

0

10,000

20,000

30,000

40,000

50,000

China India Japan US Germany

2000 2005 2010 2013

13Source: BancABC own research

Leading SSA Economies by GDP Growth

Sub- Saharan countries among the fastest growing economies in the world

2001 - 2010 2011 – 2013

2001 -

2010

2011-

2015

China8.4

Nigeria6.9

Zambia7.3

Tanzania6.8

Rwanda 7.8

Niger6.5

Angola11.6

Rwanda8.2

India7.4

Nigeria9.0

Ethiopia8.4

Sierra Leone 9.1

China10.5

Uganda7.5

Mozambique8.0

Ethiopia7.0

Mozambique7.7

India5.8

Source: IMF World Economic Outlook, April 2013

Chad9.0

Tanzania7.0

Equat. Guinea17.2

Sierra Leone 14.3

Ghana9.4

Liberia7.9

DRC7.4

14

Inflation Broadly Stable or Receding

J-12

F-1

2

M-1

2

A-1

2

M-1

2

J-12

J-12

A-1

2

S-1

2

O-1

2

N-1

2

D-1

2

J-13

F-1

3

M-1

3

A-1

3

M-1

3

0

4

8

12

16

20

0

4

8

12

16

20

Tanzania

Botswana

Zimbabwe

Mozambique

South Africa

Zambia


Exchange Rates Development

Ex. Rates Depreciation vs. USDEx Rates vs. USD

US$/BWP

US$/MZN

US$/TZS

US$/ZMK

US$/ZAR

0 4 8 12 16 20

YTD: Dec-12 to Jun-13

YoY: Jun-12:Jun-13

%

Depreciation

90

95

100

105

110

115

120

125

90

95

100

105

110

115

120

125

US$/BWP

US$/ZAR

US$/MZN

US$/TZS

US$/ZMK

Ind

ex:

Dec-

11=

100


Monetary Policy Update

Policy Rates generally lower in line with declining inflation in various countries.

Policy Rates Dec-11%

Current%

Change Since Dec-11

Comment

Botswana ( Bank Rate)

9.5 8.5 -1.00 Lower inflation allowed BoB to reduce Bank rate and to stimulate demand via lower interest rates

Mozambique (Standing Lending Facility)

15.0 9.0 -6.00 Loose monetary policy stance. The SLF lowered several times.

Tanzania (91-dy) 12.6 11.9 -0.74 Declining inflation will result in

lower interest rate cycle

Zambia (BoZ Policy Rate) 9.10 9.75 0.65 Monetary policy tightening in

response to rising inflation.

17

Banking Sector OverviewA

pr-

12

Jun-1

2A

ug-1

2O

ct-1

2D

ec-

12

Feb-1

3

Apr-

12

Jun-1

2A

ug-1

2O

ct-1

2D

ec-

12

Feb-1

3

Apr-

12

Jun-1

2A

ug-1

2O

ct-1

2D

ec-

12

Feb-1

3

Apr-

12

Jun-1

2A

ug-1

2O

ct-1

2D

ec-

12

Feb-1

3

May-1

2Ju

l-12

Sep-1

2N

ov-1

2Ja

n-1

3M

ar-

13

0

2,000

4,000

6,000

8,000

0

2,000

4,000

6,000

8,000

Total Deposits Credit Pvt

US

$m

US

$m

Botswana

LDR 75%

Mozam-bique

LDR 74%

Tanzania

LDR 74%

Zambia

LDR 62%

Zimbabwe

LDR 95%


Opportunity to further banking Penetration in BancABC markets

Loan/Deposit Ratio %Banking Penetration (Loan/GDP)

SA

Zimbab

we

Botsw

ana

Moz

ambiq

ue

Tanza

nia

Zambia

0

10

20

30

40

50

60

70

80

2005 2010

2012

Zambia

Moz

ambiq

ue

Botsw

ana

Tanza

nia

Zimbab

we

SA

40

50

60

70

80

90

100

110

66.3

69.973.1 73.1

94.0

104.5

51.8

79.6

53.2

65.7

72.1

99.7

2012

2010


20

FRANCIS DZANYA

Operational Overview

21

Operational highlights H1

Tough trading environment characterized by tight liquidity conditions across the group

Improved efficiencies through stable IT environment and enhancements to MIS

Created 83 new jobs across the group- total staff now 1,391

Overall solid performance

22

BancABC Botswana highlights

• NII: 111% higher• Cost to income ratio at

49% (2012: 57%)• Contribution to group

profits at 47%• PAT increased by 127% in

1H13 compared to 1H12 to BWP81,1 million

• Loans: up BWP244m since Dec 12 to BWP3.7bn

• Composition of retail loans increased to 64% from 44%

• NPLs: low at 1.8% • Deposits: at BWP4.8bn

up by BWP554m since Dec 12 and by BWP1.3bn from Jun 12

• Measured growth• Keep pushing in deposit

mobilization and reduction of cost of funding

• Strengthen risk management (credit, liquidity and operational)

Income statement

Jun-13 12-Jun Dec-12Staff complement 257 118 234

Total branches 6 4 6

Total customers

34,978

17,919

28,735

Loans and Deposits Key focus areas

23

BancABC Mozambique highlights

• NII: 24% higher• Non interest income up

14% despite slow down in FX trading income

• Huge impairment charge BWP17.7m. Single client contributed BWP10m

• PAT contribution at 6%

• Loans: up by 17% to BWP1bn from Dec 12

• Deposits up by 21% to BWP1.6bn from Dec 12

• Sluggish growth in retail business

• High NPLs, up from 9% at year end to 12.8%

• Control quality of the loan book

• Selective growth on wholesale banking

• More efforts to be placed on growing the retail loan book and deposits



Total customers

10,712 5,406 8,125

Income statement Loans and Deposits Key focus areas

24

BancABC Tanzania highlights

• Miniscule PAT at BWP591k• Sluggish NII : increase by

12%• Opex accelerated higher

than income generation – business expansion

• Non interest income improved to BWP39m vs BWP2m in 1H12

• Reduction in lending: loans at BWP592m compared to BWP747m in Dec 12

• High NPLs at 20%• Deposits: up BWP33m

since Dec 12 to BWP1.2bn

• Management of cost of funds key

• Balance sheet restructuring taking shape

• Move to new head office will increase visibility

• Seeking business growth in retail banking

• Collecting on NPLs



Total customers

19,836 4,804 5,979


25

BancABC Zambia highlights

• Impressive growth in operating income: BWP121m against BWP80m recorded in 1H12

• Recoveries on previously written off loans

• Cost to income ratio at 59% (1H12: 72%)

• PAT contribution at 19%

• Loans: up BWP94 since Dec 2012 to BWP1.1bn

• Deposits up to BWP1.0bn from BWP834m in Dec 12

• NPL marginally better at 4.3% from 4.4% at year end

• Continued effort to increase funding base

• Keep momentum in non funded income (trade finance and treasury)

• Overall the performance in 1H13 sets the tone for sustained growth in 2H13


Total branches

21

21

21

Total customers

87,602 62,541

82,449


26

BancABC Zimbabwe highlights

• NII: 91% higher• Huge impairment charge:

total charge of BWP57m compared to BWP1.5 m in 1H12

• Contribution to Banking PAT dropped from 45% in 1H12 to 28% in 1H13

• Loans: marginally up BWP133m since Dec 2012 to BWP3.1bn

• Deposits dropped by BWP811m to BWP2.3bn due to tightening liquidity in the market

• NPLs still high at 9%

• Top priority is liquidity and credit risk management

• Measured growth: selective lending


Total branches 23

19

21

Total customers

97,231

65,891

69,785


BancABC Botswana# of branches: 6 (+0 in H1:2013) Total staff: 257Total Assets: $564mTotal Deposits: $559mTotal Loans: $425mPAT: $9.783m

Zambia# of branches: 21 (+0 in H1:2013)Total staff: 217Total Assets: $184mTotal Deposits: $ 121mTotal Loans: $131mPAT: $3.968m

Banking operations

Representative office

Tanzania# of branches: 5 (+0 in H1:2013)Total staff:152Total Assets: $108mTotal Deposits: $137mTotal Loans: $69mCombined loss: $3.6m

BancABC Mozambique# of branches: 9 (+1 in H1:2013) Total staff:188Total Assets: $175mTotal Deposits: $190mTotal Loans: $119mPAT:$1.140m

BancABC Zimbabwe# of branches: 23 (+2 in H1:2013)Total staff:516Total Assets: $460mTotal Deposits: $263mTotal Loans: $362mPAT: $8.830m

BancABC (Group)# of branches: 64 (+3 in H1:2013)Total staff:1,391Total Assets: $1,596 mTotal Deposits: $1,271mTotal Loans: $1,145mAttributable profits: $17.2 m

27

Operations As At June 2013 (Convenience conversion in USD)

28

BEKI MOYO

Financial Review

29

Solid earnings…

Jun-11 Jun-12 Jun-13

3756

142.86585987344

17%

18%

22%

Attributable profit (BWP m) ROE (%)

Solid earnings from increased revenues in the retail segment

Negated by huge impairment charge

BWP‘ million 1H13 1H12%

changeNet interest income 476 274 74%Non-interest income 371 235 58%Total revenue 847 509 67%

Credit losses (146) (32) -351%

Operating expenses (529) (379) -40%

Share of associate losses (3) (2) -92%

Profit before tax

169 96 77%Taxation (40) (40) -

Profit for the year

129 56 133%Attributable to: -ordinary shareholders 143 56 157% -minority shareholders (14) - -100%

Basic EPS (thebe) 59.1 37.2 59%Diluted EPS (thebe) 57.3 31.1 84%Dividend per share (thebe) 14.0 8.0 75%

30

Solid earnings…

Solid earnings from increased revenues in the retail segment

Negated by huge impairment charge

Jun-11 Jun-12 Jun-13

6 7

17

17%

18%

22%

Attributable profit (USD m)ROE (%)

USD‘ million 1H13 1H12

% chang

eNet interest income 57 37 56%Non-interest income 45 32 41%Total revenue 102 69 49%Credit losses (18) (4) -303%Operating expenses (64) (52) -25%Share of associate losses (0.3) (0.2) -72%

Profit before tax

20

13 58%Taxation (5) (6) -10%

Profit for the year

15

7 108%Attributable to: -ordinary shareholders 17 7 130% -minority shareholders (2) - -100%

Basic EPS (cents) 7.1 5.0 42%Diluted EPS (cents) 6.9 4.2 65%Dividend per share (cents) 1.7 1.1 57%

31


Jun-09 Jun-10 Jun-11 Jun-12 Dec-12 Jun-13 -

200

400

600

800

1,000

1,200

1,400

1,600

0.0

1.0

2.0

3.0

4.0

5.0

6.0

505 420 453 650

1,137

1,422 3.45 2.87 3.09

4.35

4.88

5.54

Net Asset Value (BWP m) and NAV per share (BWP)

Net asset value (BWP m) NAV per share (BWP)

BW

P m

BW

P

NAV increased by 25% from year end. NAV per share also increased despite conversion of the IFC debt to equity during the period.

32


NAV increased by 13% from year end. NAV per share also increased despite conversion of the IFC debt to equity during the period.

Jun-09 Jun-10 Jun-11 Jun-12 Dec-12 Jun-13 -

20

40

60

80

100

120

140

160

180

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

76 65 73

85

146

165

0.52

0.44 0.41

0.57

0.63 0.64

Net Asset Value (USD m) and NAV per share (USD)

Net asset value (USD m) NAV per share (USD)

US

D m

US

D

33

Contribution per entity…

BancABC Bots, 81 , (47%)

BancABC Moz, 9 , (6%)BancABC Tanz, 0.6 , (0%)

Ban-cABC Zam, 33 ,

(19%)

BancABC Zim, 48 , (28%)

BancABC Bots, 36 , (32%)

BancABC Moz, 14 ,

(12%)BancABC Tanz,

(5), (-4%)

BancABC Zam, 17 , (15%)

BancABC Zim, 50 , (45%)

Impressive performance from Botswana, Zambia and ZimbabweMozambique and Tanzania recorded below par performance

30 June 2013 30 June 2012

Attributable profits (BWP’ m)

34

Net interest income on the rise…

Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 -

100,000

200,000

300,000

400,000

500,000

600,000

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Net interest margin

Net int BWP'000 NIM before impairments NIM after impairments

BW

P '0

00

Volumes in the higher margin Retail segment contributed to high net interest income

BancABC Botswana and BancABC Zimbabwe had pronounced growth and had largest contribution. All subsidiaries achieved growth in NII.

High impairments watered down NIM

NII to total costs now at 90% compared to 72% in prior year and 77% for full year 2012

35

Increased impairments in 2013…

2009 2010 2011 2012 2013

51

17 26 32

146

Impairment chargeThree clients contributed 88% of the charge with one each from Mozambique, Tanzania and Zimbabwe.

Quality of the book relatively stable with net NPLs at 4.1% compared to 6.1% at year end but higher than 2.1% recorded for 1H12.

Gross NPLs were 8.7% compared to 9,.2% in Dec 2012 and 5.1% in June 2012

Jun 2009 Jun 2010 Jun 2011 Jun 2012 Dec-12 Jun20130.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

NPL and credit loss ratios

Gross NPL ratio Net NPL ratio Credit loss ratio

NP

L ra

tios

Cre

dit l

oss

ratio

36

Non interest income well balanced…

Jun-09 Jun-10 Jun-11 Jun-12 Jun-13-50

-

50

100

150

200

250

300

350

400

Fees & comms Forex trading Gains on investments FV gains - Inv Prop Other

BW

P 'm

Fees and commissions higher due to increased transactional volumes across all subsidiaries. BancABC Zambia had the largest growth due to increased customer base in consumer lending.

Non interest income was boosted by BWP54m mark to market gain in equity investments

37

Operating expenses high but improved cost to income ratio…

Opex increased in line with continued business expansion

Major increase recorded in employee and infrastructure costs due to increased branch numbers from 55 in 1H12 to 64 in 1H13Cost to income ratio gravitating towards our short to medium term target of 50%


100

200

300

400

500

600

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

169 206

244

379 529

72%

77% 72% 75%62%

Opex Cost to income

BW

P m

%

38

Cost to income ratios per entity

Cost to income ratio dropped in Botswana, Zambia and Zimbabwe

There is some way to go in Mozambique and Tanzania to reach our benchmark of 50%

Botswana Mozambique Tanzania Zambia Zimbabwe0%

20%

40%

60%

80%

100%

120%

57%64%

94%

72%65%

49%

67%

102%

59% 59%

Jun-12 Jun-13

39

Operating costs driven by retail…

Retail banking costs increased by 79% and wholesale costs up by 14%

Zimbabwe and Botswana accounted for combined 52% of opex

Staff complement increased from 1,211 in June 2012 to 1,391 in June 2013

Botswana21%

Mozambique12%

Tanzania11%

Zambia14%

Zimbabwe31%

Head Office10%


100

200

300

400

500

600

Retail Wholesale

BW

P 'm

illio

n

40%

40

Staff complement driven by retail…

Botswana; 257

Mozambique;

188

Tan-zania,

152Zambia, 217

Zimbabwe; 516

ABCH, 61

Staff complement increased by 131 in retail banking division, wholesale banking up by 49 staff. Total staff =1,391.

Numbers increased across all countries with Botswana and Zimbabwe having highest growth

Staff per entity

Jun 2009 Jun 2010 Jun 2011 Jun 2012 Jun 2013 -

200

400

600

800

1,000

1,200

1,400

1,600

511 511 505 546 595

50 101 231

665 796

Staff compliment

Wholesale Retail

41

Operating expenses driven by retail activity…

Retail contributing 51% to opex in 1H13 , up from 39%

in 1H12

Retail increased by 79%; wholesale increased by 14%

High investment in human capital in Botswana and Zimbabwe, contributed to the increase in retail operating costs

Wholesale RetailBWP‘ million Jun-13 Jun-12 Jun-13 Jun-12BancABC Botswana 32 36 81 28 BancABC Mozambique 38 29 28 22 BancABC Tanzania 38 31 19 10 BancABC Zambia 27 17 45 38 BancABC Zimbabwe 78 80 88 44 Banking operations 213 193 261 142 Head office entities 49 37 6 7 Total Opex 262 230 267 149

42

Steady balance sheet growth…

BWP' million Jun-13 % Chg Jun-12 Dec-12Cash and cash equivalents 1,479 50% 989 1,859 Financial assets 1,207 23% 982 1,312 Loans and advances 9,854 26% 7,818 9,144 Property and equipment 854 20% 714 798 Other assets 344 7% 320 295

Total assets 13,738 27%

10,823 13,408 Deposits 10,940 25% 8,781 10,675 Borrowed funds 1,040 -8% 1,131 1,213 Other liabilities 330 35% 245 364 Equity-ordinary shareholders 1,422 119% 650 1,137 Minority interests 6 -65% 16 19

Total liabilities and equity 13,738 27%

10,823 13,408

Steady growth in both loans and deposits

Conversion of IFC debt to equity major contributor to reduction in borrowed funds

43

Steady balance sheet growth…

Steady growth in both loans and deposits

Conversion of IFC debt to equity major contributor to reduction in borrowed funds

USD' million Jun-13 % Chg Jun-12 Dec-12Cash and cash equivalents 172 33% 129 239 Financial assets 140 9% 128 169 Loans and advances 1,145 12% 1,021 1,177 Property and equipment 99 6% 93 103 Other assets 40 -5% 43 38

Total assets 1,596 13%

1,414

1,726 Deposits 1,271 11% 1,147 1,374 Borrowed funds 121 -18% 148 156 Other liabilities 38 20% 32 48 Equity-ordinary shareholders 165 95% 85 146 Minority interests 1 -50% 2 2

Total liabilities and equity 1,596 13%

1,414

1,726

44

Steady growth in loans and deposit...


2,000

4,000

6,000

8,000

10,000

12,000

2,163 2,342

4,019

7,818

9,854

2,925

4,132

6,004

8,781

10,940

Loans Deposits

Loans grew by 26% and deposits grew by 25%

Loans CAGR of 46% and deposits CAGR of 39% over 5 years

45

Loans per entity…

Botswana and Zimbabwe loans contribution at 69%

Impressive loan growth in Zambia

Sluggish loan growth in Tanzania and Mozambique

Botswana, 3,655 ,( 37%)

Mozambique, 1,025 , (10%)

Tanzania, 592 , (6%)

Zambia, 1,128 , (11%)

Zimbabwe, 3,114 , (32%)

ABCH & Other, 341 , (4%)

Loans (BWP’m)

46

Loans driven by Retail banking…

Jun-11 Jun-12 Jun-13 -

2,000

4,000

6,000

8,000

10,000

12,000

3,658

5,343 5,507

4,019

7,818

9,854

2,475

4,347

Retail Wholesale Total Loans

BW

P 'm

illio

n

Retail book

negligible before

June 2011

Retail lending grew by 76% mainly in Botswana, Zambia and Zimbabwe

Retail lending still low in Mozambique and Tanzania

Modest growth in wholesale book; grew by 4% as we prioritized growth in retail book

Retail banking loans contribution up…

Loans and advances Wholesale Retail

BWP‘ million Jun-2013 Jun-2012 Jun-2013 Jun-2012

BancABC Botswana 1,333 1,539 2,322 1,228

BancABC Mozambique 817 716 208 111

BancABC Tanzania 479 587 113 67

BancABC Zambia 363 254 764 518

BancABC Zimbabwe 2,174 1,863 940 587

Banking operations 5,166 4,959 4,347 2,511

Head office entities 341 348 - -

Total 5,507 5,307 4,347 2,511

47

Retail contributing 44%, buoyed by Botswana

Modest growth in wholesale banking at 4%

48

Deposits per entity…

Botswana and Zambia had largest growth

Reduction recorded in Zimbabwe

Botswana, 4,817 , (44%)

Mozambique, 1,635 , (15%)

Tanzania, 1,181 , (11%)

Zambia, 1,042 , (9%)

Zimbabwe, 2,265 , (21%)

Deposits ( BWP’ m)

49

Funding

Demand deposits

28%

Term deposits

54%

Borrowed funds8%

Equity11%

Challenge is to increase the contribution of cheaper demand deposits to enable reduction in cost of funding

Retail drive to mobilise deposits in 2H13 across all entities

50

Deposit growth from wholesale banking…

Wholesale Retail

BWP‘ million Jun-2013 Jun-2012 Jun-2013June-2012

BancABC Botswana 4,292 3,236 525 227

BancABC Mozambique 1,243 1,028 391 267

BancABC Tanzania 1,088 927 93 48

BancABC Zambia 992 585 50 27

BancABC Zimbabwe 2,044 2,219 222 217

Total deposits 9,659 7,995 1,281 786

Wholesale contributing 88%, Botswana highest

Growth in deposits across all subsidiaries

(except Zim)

51

Capital adequacy

Total Capital (BWP 'm) Capital Adequacy RatiosSubsidiary Jun-13 Jun-12 Min Jun-13 Jun-12BancABC Botswana 611 345 15% 17% 15%BancABC Mozambique 288 249 8% 15% 15%BancABC Tanzania 92 150 12% 8% 15%BancABC Zambia 282 196 10% 18% 19%BancABC Zimbabwe 675 421 12% 15% 11%Except Tanzania all operations well within minimum CAR requirements, post reporting period Tanzania now compliant

Zambia minimum capital requirement of US$100m effective 31 December 2013

Zimbabwe minimum capital requirement of US$100m effective 31 December 2014

Plans underway to raise US$150m for capitalisation of all entities and liquidity support

52

DOUG MUNATSI

Strategy and Outlook

Organic growth of the current banking operations above 10 per cent market share in all the markets• To be top tier bank in all markets • As a group, to be bigger than the

largest bank in any of our markets;.

Successfully complete rolling out of retail banking operations • Successfully complete the Retail

Banking roll out in Tanzania and Mozambique

• Roll out a network of 100 branches by December 2015 across the group

• Raise retail deposits to self-fund the retail loan book

Become market leader in consumer lending by acquiring fast growing mass market• Roll out recently acquired deductions

code to service government employees

• Roll out group schemes • Test agency model and mobile banking

service mass market

Short to medium term objectives

Immediate Key Funding Objectives• Raise Tier II capital of between US$ 50m and

US$ 100m- WIP• Raise credit lines US$ 200m to US$ 300m-

WIP• Increase capitalization to between US$ 50m

and US$ 100m capital in each market-WIP

Enhance operating efficiency through the development of our human capital• Targeted cost to income ratio of 50 per cent• Manage strategy and monitor performance

through balanced scorecard methodology

Continue to upgrade our IT systems to support our growing business operations for faster execution• On-going review of our IT capabilities and our

business processes to ensure best‑in‑class full corporate and retail banking operation;

• Providing ongoing training that will enable our employees to utilise and support our expanded IT capabilities.

Short to medium term objectives (cont’d)

Outlook

Key success factors in short-term hinge on liquidity and credit risk management

- Plans already in place to diversify sources of funds

- Credit function in the Group has been strengthened

If we achieve success in the above, Group expected to have a stronger 2H12

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Dividend declaration

As per Group Policy, a dividend of 14 thebe (approximately 1.6 US cent) per share to be paid on 13 September 2013 to shareholders on register on 30 August 2013

Abch results presentation june 2013 v6

Economy & Finance

Transcript of Abch results presentation june 2013 v6