COME IN… - Rawbank | is my bank in Kinshasa which is scheduled to be inaugurated towards the...

COME IN…

2013 ANNUAL REPORT

Democratic Republic of Congo

26421_26137_RawBank_Rapport_annuel_2013_EN_cover_v01.indd 126421_26137_RawBank_Rapport_annuel_2013_EN_cover_v01.indd 1 31/07/14 14:1031/07/14 14:10

advantageClient

· 2013 Annual report

1

COME IN…make yourself at home

We use simple words to say that we make our service offer available to Congolese women and men who wish to use the most modern financial instruments. That does not mean unnecessarily cluttering our bank counters and, even less so, wasting time in endless queues… It is important, for each and every one of our customers and future customers, to make the most of the technologies that we make available to them for their own benefit. The banking market has become highly competitive and we are therefore emphatic in saying to those persons who might not know our services:“You are more than welcome!”

And to our loyal customers: “In 2013, we completed an in-depth listening and analysis task. We asked ourselves a lot of questions regarding the optimisation of our operations so as to define a strategy of excellence. This new strategic plan concerns the 2014 to 2016 financial years to begin with. It places the customer in the centre of our concerns, as you will discover throughout this annual report with the visual reference that hallmarks this foreword.”

Index


2

SUMMARYof the 2013 annual report

01 RAWBANK 2013 IN PERSPECTIVE Letter from the Chairman of the Board of Directors _____________________________________ 6 “Cast a glance at the DRC!” Analysis by the Chairman of the Executive Committee ___________________________________ 7 Key figures over 5 years ____________________________________________________________ 9

02 STRATEGIC BENCHMARKS OVERALL SITUATION Concise look at the events that influenced the economy in the DRC _____________________ 12 Overview of the banking sector in the DRC _________________________________________ 13

NETWORK A network strategy adapted to economic emergence _________________________________ 14

BUSINESSES AND COMMERCIAL ORGANISATION A business lines strategy in phase with an updated market segmentation ________________ 15 A tailored commercial management and a new growth impetus _________________________ 15

PRODUCTS An ongoing search for innovation ________________________________________________ 18

ORGANISATIONAL DEVELOPMENTS Events and projects in phase with strategy _________________________________________ 21

03 A STRATEGY OF PROGRESS “CLIENT ADVANTAGE” The major priorities of the new 2014-2016 strategic plan _____________________________ 26

04 CORPORATE GOVERNANCE Board of Directors and the Executive Committee _________________________________________________ 30 RAWBANK standards of governance __________________________________________________ 36

Index


3

05 RISK MANAGEMENT Credit risk _______________________________________________________________________ 40

Assets and liabilities management __________________________________________________ 42 Liquidity risk ____________________________________________________________________ 42 Market risk ______________________________________________________________________ 44 Operational risk __________________________________________________________________ 45

06 SOCIAL RESPONSIBILITY Development of the RAWBANK Academy ______________________________________________ 48 2013 Social report ________________________________________________________________ 50 The bank at the heart of social life __________________________________________________ 52

07 FINANCIAL REPORT The 2013 / 2012 balance sheets compared ___________________________________________ 58 The 2013 / 2012 income statement compared ________________________________________ 60 Changes in equity in 2013 _________________________________________________________ 61 Cash flow tables 2013 / 2012 ______________________________________________________ 62 Auditor’s reports on accounts _______________________________________________________ 63 Notes on the financial statements ___________________________________________________ 64

08 RAWBANK NETWORKS Correspondent bank network _______________________________________________________ 84 The Brussels representation office __________________________________________________ 84 The branch network in DRC _________________________________________________________ 85

Index

01RAWBANK 2013 IN PERSPECTIVE

p6 _ Letter from the Chairman of the Board of Directors “Cast a glance at the DRC!”

p7 _ Analysis by the Chairman of the Executive Committee

p9_ Key figures over 5 years

RAWBANK is continuing its work to build a sound and reliable, first-rate network. This photo, taken in February

2014, shows the progress of work on the bank’s new headquarters in Kinshasa which is scheduled to be

inaugurated towards the middle of the 1st half of 2015.

Index


6

LETTER FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS

Mazhar Rawji

Confidence and optimism: those are the keywords that currently best express my frame of mind as a businessman and bank executive whose family has been living in close relation with this country’s populations for three generations.

Our bank is enjoying the best of health and its balance sheet is sound and balanced. The growth of our loans portfolio is evidence of the strengthening of our commitment to the Congolese economy which continues its development and for which emergence conditions have never been as favourable as at the present time.

Difficulties? Since 2002, the date when we were founded, we have encountered some difficulties … We have converted them into opportunities.

How? By listening to the market and by communi-cating with our customers.

We are constantly endeavouring to have perfect knowledge of market activities and expectations. We are continually present alongside our customers, in the field and in our offices and we are there to listen to them, advise them and accompany them on the road to growth. And this is done always in strict compliance with legal, regulatory and ethical requirements and with the values inspired by our company’s credo. We are constantly trying to improve our approach as professionals of the banking industry.

CAST A GLANCE AT THE DRC; THERE’S A LOT OF ROOM

FOR ENTERPRISE.

For the attention of international businessmen and entrepreneurs: it is well worth taking a close look at what is happening in the Congo! The infra-structures indispensable for the economy to flourish are back on track, investment and consumer needs are huge… and still far from being satisfied. Conse-quently, there’s a lot of room for enterprise.

In this context, RAWBANK is and will remain the main artery for financial flows in DRC.

Our bank is Congolese; we know, understand, appre-ciate and love this country.

More than ever, “the customer is at the heart of our concerns”.

As you go through this annual report, you will under-stand once again the meaning of this phrase that supports and structures our DNA.

Yours sincerely,

Index


7

ANALYSIS BY THE CHAIRMAN OF THE EXECUTIVE COMMITTEE

The country is being transformed, perhaps at the dawn of real economic development expected in the Democratic Republic of Congo for such a long time.

�� The war in the East seems settled.

�� Copper production has risen to 1st place on the continent overtaking production in Zambia for the first time.

�� The DRC obtained its first sovereign rating in September 2013.

�� For the first time in the country’s history, an IMF growth forecast exceeds the symbolic threshold of 10% in 2014.

�� The banking sector is seething with excitement. In five years, the number of banks has trebled. Growth in deposits, even though it slowed in 2013 because of the public spending freeze, has expe-rienced a strong increase over the last four years, achieving average yearly growth of over 30%.

The banking sector has become professionalized, customers are becoming increasingly sophisticated and demanding, the middle classes and civil serv-ants are opening bank accounts, and recruiting the best professionals in the banks is becoming a real challenge.

At the vanguard of that wave that has been surging through the banking world in recent years, RAWBANK is getting its breath back. The bank made good use of the 2013 financial year to consolidate its assets with the aim of setting out again to conquer growth with a continually firm focus on providing optimum service to the Customer.

RAWBANK must remain the best bank in the Demo-cratic Republic of Congo, as the bank that offers the Congolese a product mix and a service quality identical to what the rest of the world is accustomed to receiving.

The goal of achieving these quality and growth objectives was uppermost in our minds throughout the 2013 financial year during which we prepared a new 2014 – 2016 strategic plan. An ambitious plan indeed, but one that is realistic, laid out like a roadmap including all the initiatives, projects and actions that will have to be fulfilled for the bank to head safely into port.

A new Strategic Development department was set up in September 2013 to steer this project.

One recurring theme runs through all the proposals for actions of this strategic plan: THE CUSTOMER, the reason why the logo “Client Advantage” was designed and will be one of the bank’s distinctive signs in the coming months and years.

advantageClient

Thierry Taeymans, Chairman of the Executive Committee

Read: “A strategy of progress”, on page 26.

Index


8

KEY FIGURES OVER 5 YEARS

In thousands of Congolese francs (CDF)

In thousands USD

SITUATION AS AT 31 DECEMBER 2013 2012 2011 2010 2009 2013/2012 2013

Total assets 667,327,172 605,516,240 480,626,904 348,450,204 274,304,585 + 10.21% 725,356

Fixed capital (*) 87,234,253 77,912,795 53,566,493 39,099,154 28,512,453 + 11.96% 94,820

Deposits 511,554,734 448,571,827 367,242,839 272,136,473 212,076,329 + 14.04% 556,038

Disbursement loans 266,141,935 207,909,408 141,143,791 88,450,665 88,376,247 +28.00% 289,285

Net banking income 58,281,213 53,590,363 38,838,533 28,888,649 20,305,933 + 8.75% 63,349

General operating costs 37,857,798 31,605,585 26,050,741 20,759,890 12,470,477 +19.78 % 41,150

Depreciation allowances and provisions

10,199,894 8,948,780 3,295,036 2,358,532 3,671,947 + 13.98% 11,087

Net income 5,164,384 7,391,700 6,253,394 5,182,810 2,793,123 - 30.00% 5,613

• Operating ratio (CIR) 64.96% 58.97% 67.07% 71.86% 61.41%

• Return on equity (ROE) 5.92% 9.49% 11.67% 13.26% 9.80%

• Return on assets (ROA) 0.77% 1.22% 1.30% 1.48% 1.02%

(*) including subordinated loans

Indicative CDF/USD exchange rates as at 31/12

920 905.00 900.498 905.044 890.208

Indicative CDF/EUR exchange rates as at 31/12

1,238.86 1,175.426 1,141.154 1,174.730 1,251.315

FOREIGN TRANSFERS(in USD million, excluding interbank transfers in DRC)

OutflowsInflows

Private and public enterprisesIndividuals and traders

NUMBER OF ACCOUNTS

2013 2,563

2012

2011

2010

2009

1,931

2,6761,506

1,495

1,259

927

3,001

2,171

1,319

12/2013

12/2012

12/2011

12/2010

12/2009

7,346

8,207

8,152

6,878

5,181 37,616

61,961

94,371

150,192

192,803

Index


9

GRAPHS IN EQUIVALENT USD Figures in thousands, calculated on the basis of the CFD/USD exchange rates as at 31 December.

BALANCE SHEET TOTAL

DEPOSITS

NET BANKING INCOME

FIXED CAPITAL (including subordinated loans)

DISBURSEMENT LOANS

NET INCOME

2013

2012

2011

2010

2009

8,169

6,944

5,727

2,566

5,613

2013

2012

2011

2010

2009

725,356

669,079

533,734

385,924

305,359

2013

2012

2011

2010

2009

94,820

86,091

59,485

43,201

32,028

2013

2012

2011

2010

2009 23,5924

300,688

407,822

495,659

556,038 2013

2012

2011

2010

2009

289,285

229,734

156,740

97,731

99,826

2013

2012

2011

2010

2009

63,349

59,216

43,131

31,920

21,718

Index

02STRATEGIC

BENCHMARKS

OVERALL SITUATIONp12 _ Concise look at the events that

influenced the economy in the DRC

p13 _ Overview of the banking sector in the DRC

NETWORKp14 _ A network strategy adapted

to economic emergence

BUSINESSES AND COMMERCIAL ORGANISATIONp15 _ A business lines strategy

in phase with an updated market segmentation

p15 _ A tailored commercial management and a new growth impetus

PRODUCTSp18 _ An ongoing search for innovation

ORGANISATIONAL DEVELOPMENTSp21 _ Events and projects

in phase with strategy

Both the exterior and interior architectural styles (see photo on page 14) are characteristic features

of RAWBANK branches. On this photo, the small district branch in Kitambo (Kinshasa).

Index


12

STRATEGIC BENCHMARKS

OVERALL SITUATION

(This chapter has been written on the basis of the anal-ysis and compilation of information drawn up by the Strategic Development department as an introduction to the Rawbank 2014-2016 strategic plan.)

Concise look at the events that influ-enced the economy in the DRC

News in 2013 was rich in events. Some events were particular highlights during the last months of the year.

�� As a result of pressures by the international community, military backing from the MONUSCO Intervention Brigade and support from some African countries, the rebellion was defeated in the East of the DRC. That could mean a period of security in the East together with a positive impetus for economic activities.

�� The setting up of the Constitutional Court confirms the promise by the President of the Republic and is a further guarantee of political stability.

�� In mid-November 2013, the key rate of the Central Bank of DR Congo (BCC) was reduced to 2%, its historic low. The effects of the lowering of that rate are, however, marginal since 80% of loans in DRC are denominated in dollars and currently only 7% of companies are financed through the banking sector, according to a survey by the World Bank with the only big borrowers in local currency being state-owned entities.

�� Year-to-year inflation is contained to less than 2% in 2013, and the exchange rate, except for slight overheating in October, remains steady for the fourth year running.

�� In September 2013, the country obtained its first sovereign rating. The Moody’s Corporation assigned a B3 rating to the country, with a stable outlook1. That rating does actually correspond to the “highly speculative” grade but makes it possible for the country to foresee a possible entry into the international capital markets.

In spite of the previous good news, growth for the year 2013 was revised downwards compared with initial forecasts, as a result of mining production below expectations, the causes of which were power shortages in Katanga and the delay in starting some agricultural projects. The IMF estimated growth for 2013 at 6.2%, but revised forecasts for 2014 upwards to 10.5%.

For all the observers of the Congolese economy, the main challenges remain the energy issue to support growth in the mining sector, the trend in the prices of raw materials exported by the country, investments in infrastructures, together with the continued improve-ment in the business climate.

As far as opportunities are concerned, stronger growth is expected in the agricultural sector, which benefits from an improvement in transport infrastructures, and the INGA 3 project, which will generate over 4,000 MW of electricity, arouses enormous hopes provided that financing solutions can be structured. The first stone of the new INGA dam is scheduled to be laid in September 2015.

1. The stable outlook of the rating for the DRC reflects the fact that Moody’s is relying on a sound continuation of economic growth following sustained development in the mining sector and improvement in public finances. Those factors are however dependent on the Government’s high financing need with a view to rebuilding infrastructures and the need to continue the implementation of reforms. The stable outlook also reflects Moody’s expectations according to which debt and external reserves should progress at a moderate rate.

Index


13

All observers and analysts agree that the strengthening of institutions, the development of infrastructures together with improvement in the business climate remain the main levers that can help the country to take off and transform it into a real emerging market.

Overview of the banking sector in the DRC

The growth rate in the banking sector in DRC has been extremely high in recent years with total assets of all the banks rising from USD 300 million in 2002 to USD 4.1 billion at the end of 2013.

Between 2009 and 2013, average growth in deposits in the sector was 33% per year, with total deposits rising from USD 0.97 billion to USD 3.06 billion.

That growth was mainly bolstered by an economic revival, with the country having recovered a GDP growth rate around 7% after the lull in 2008, a year during which the fall in the price of copper and the shrinking of the global economy resulted in the growth rate falling to 2.8%.

Other factors also contributed to that revival in the banking sector, in particular:

�� the spread of banks in the provinces,

�� an increasing number of members of the middle class opening accounts as they regained trust in the banking sector,

�� the number of Government officials and civil servants opening bank accounts witnessing an explosion in the number of bank customers in the country to almost 1.2 million customers for 1.8 million accounts at the end of 2012,

�� the gradual conversion of many SMEs to the formal economy,

�� the arrival of new Pan-African banking players, which contributed to giving added impetus to the sector and compelled all the players to strongly develop their ranges of products and services and the extent of their branch networks.

The number of banks operating in DRC is now eighteen. It is estimated that over half of the deposits are concentrated in the city of Kinshasa.

The comparative penetration rate of banking services of the population points towards significant develop-ment prospects in the banking sector in DRC in the coming years through continued financial inclusion.

Far East and Pac.

Europe and Central Asia

Latin Am. and Carib

South-East Asia

Sub-Saharan Afr.

Middles East and North

Afr. Central Africa

DRC

55%

45%

39%

32%

24%

23%

20%

5%

Source: Moody’s Report “Sub-Saharan Africa Banking Overview”, June 2013.

In this banking market which arrived too fast for a number of banks which the current level of economic activity does not justify, RAWBANK retains leadership with an average market share in the region of 19%.

The strategic plan, the underlying principles of which are presented in chapter 3, aims at strengthening that leadership by reinforcing organizational efficiency and a high-quality sales portfolio.

advantageClient

Index


14

NETWORK

A network strategy adapted to economic emergence

RAWBANK has developed a significant network of branches in recent years, increasing branch coverage in the major urban centres of Kinshasa and Lubum-bashi and continuing its installation in the economic centres of several provinces.

The bank currently numbers 36 branches, in addi-tion to which there are 17 external counters (11 in Kinshasa, 1 in Matadi, 1 in Boma, 2 in Lubumbashi and 2 in the East of the country). This network service is completed by external desks within the premises of a few major customer enterprises, in an approach to proximity at the service of the enterprises and their personnel.

The external counters allow customers to open accounts and carry out basic banking transactions. They will be gradually converted into full branches as and when the progress of market needs requires.

The 2014 – 2016 strategic plan provides for raising the number of bank branches to about 80 to cover the entire market needs in all the provinces of the country.

Highlights of the 2013 financial year

�� the opening of 5 new branches:

�� Beni in North Kivu,

�� Watsa in the Orientale Province,

�� Sakania in Katanga,

�� Kinsuka and Kitambo in Kinshasa;

�� the moving of the Goma branch into a new building;

�� the opening of 4 external counters Kinshasa: the single counter “Enterprise Creation”, City Hall, Hasson & Frères and the Fleuve Congo hotel;

�� the opening of 1 external counter in the University of Kisangani.

2014 Prospects

�� the scheduled opening of 5 new branches including 3 in Kinshasa and 2 inside the country during the second half of the year;

�� the scheduled opening of 3 new external counters including 1 in Kinshasa and 2 inland during the first half of the year.

The interior design and the façade are characteristic features of the RAWBANK branches. Here is the new small branch of Kitambo in Kinshasa.

Index


15

BUSINESSES AND COMMERCIAL ORGANISATION

A business lines strategy in phase with an updated market segmentation

Knowing the Customer, meeting the Customer’s expec-tations and his needs through a personalised and targeted, quality-based banking service: such has been RAWBANK’s commercial approach for several years.

This approach to the market is under-pinned by a dynamic Customer vision so as to accompany him in his progress and in his development.

For that purpose, the bank progressively fine tunes and strengthens its commercial organisation through customer markets according to standards redefined at the end of 2013, corresponding to current realities in the field and the trend of customer portfolios.

�� The Corporate & Institutional Banking market brings together the major corporations and the institutions operating on the territory of the DRC.

�� The newly formed Commercial Banking market brings together medium-sized enterprises, small enterprises and institutions according to new criteria and working methods, under the manage-ment of a new manager appointed in 2014.

�� The Private Banking Market has been simplified, containing two segments “Elite” and “Top Person-alities” for which an upgraded added value service portfolio is in the final development phase.

�� The Retail Banking market structures its commer-cial organisation through fine-tuned segmen-

advantageClient

tation, characterized, among other things, by accurate targeting of retail customers forming the new emerging middle class.

A tailored commercial management and a new growth impetus

In the context of the bank’s rapid growth and with the objective to increase customer service efficiency, the bank’s commercial management has been adapted in order to better correspond to the new local realities in the field.

THE REGIONAL MANAGERS (Bas-Congo, Centre, East and Katanga) see their commercial role strengthened in an approach geared to high-level service.

Regional manager for the Katanga area for 3 years, Didier Tilman has been the bank’s Commercial Manager and a member of the executive committee since early 2014.

Index


16

ON THE CORPORATE & INSTITUTIONAL BANKING MARKET, senior account managers will be called on to manage a limited portfolio of key accounts, whether corporate or institutional, so as to be able to provide a high-level service offering, with products tailored to new needs arising from the development of those customers in the context of intensified economic growth.

THE NEW COMMERCIAL BANKING MARKET covers small and medium-sized enterprises, together with small-sized institutions, according to new criteria and new working methods.

An agreement has been signed for that purpose with Proparco and the Frankfurt School of Finance & Management. The ambition focuses on a new field approach to small and medium-sized enterprises so as to be able to meet those developing customers’ needs for access to basic banking services in a very concrete way.

THE NEW AGREEMENT SIGNED WITH PROPARCO AND THE FRANKFURT SCHOOL OF FINANCE & MANAGEMENT

IDEALLY COMPLEMENTS THOSE AGREEMENTS PREVIOUSLY

CONCLUDED – AND STILL IN PROGRESS – WITH IFC, EIB, AFD (FRENCH DEVELOPMENT AGENCY)

AND PROPARCO.

In this project, the Frankfurt School of Finance & Management contributes its organizational and training expertise.

At the same time, the Lady’s First project actively continues its development of the women entrepreneurs segment.

RAWBANK is the only bank in DRC to propose such a comprehensive offering intended for women entrepre-neurs. As such, the bank has been part of the internal consortium Global Banking Alliance for Women since 2013.

THE PRIVATE CUSTOMER MARKET fis the focus of specific attention through a personalised approach initiated already six years ago. RAWBANK was inno-vating at that time in DRC with the creation of a Private Banking business line and is continuing to innovate.

In 2013, the bank inaugurated two new reception areas devoted to private customers: one on the upper floor of the Couronne branch in Kinshasa and the other in the Golf branch of Lubumbashi. Strictly selected and trained managers welcome customers with the utmost confidentiality. The package of services that they propose can be modulated according to the degree of involvement which the customer wishes to have in the management of his accounts.

A new addition, since 2013, the PRIVATE PASS, a personalised card, unique in DRC (read on page 20).

Lady’s first

Index


17

THE RETAIL BANKING BUSINESS has been experi-encing strong development in DRC for three years and retains an impressive growth potential considering the current low penetration rate of banking services.

With almost 200,000 private individual customers (including 70,000 State employees opening bank accounts in 2012 and 2013), a growing number of deposits and consumer loans, RAWBANK has been achieving success in this customer segment through, among other things, the deployment of a comprehen-sive range of quality products and services. Success also continues to grow among young people through the Academia account and its ancillary services and products.

The Retail Banking business line is effectively finding its place within the bank’s commercial organisation. The 2014 – 2016 strategic plan forecasts an increase in the Retail Banking share in the bank’s balance-sheet total.

For that purpose, a new commercial organisation was set up at the beginning of 2014 to strengthen the bank’s offering in this expanding middle-class segment

in urban centres. Rawbank proposes a service package to

the middle class tailored to their income and their consumer needs.

advantageClient

Index


18

PRODUCTS

An ongoing search for innovation

The heading of the 2012 annual report was: INNOVATION.

Innovation has been part of RAWBANK’s DNA since it was founded in 2002. Often copied, never imitated, the bank is successfully continuing this drive for continuous progress at the service of all its customers. The 2014 – 2016 strategic plan attaches a great deal of importance to innovation, primarily as part of the optimisation of the quality of the banking offer.

Some highlights of the 2013 financial year and early 2014 are well worth noting in this respect.

The development of the offer of alternative channels

�` BANK CARDS, ATMS AND EPOS

The network of automatic teller machines (ATMs) continues to develop throughout the towns and cities where the bank is present. At the end of 2013, the

RAWBANK ATM network was the largest in DRC and continues to develop. Depending on the machines and according to local needs, ATMs distributing Congolese francs are installed alongside ATMs distributing dollars. At the same time, bank cards in CDF have been devel-oped, mainly for State employees and the employees of private companies holding a salary account. The system is achieving the expected success and makes it possible to relieve pressure on bank counters, so enhancing customer service.

The number of electronic point of sale terminals (EPOS) is fast expanding among traders. A few telecoms prob-lems encountered in 2013 with one operator has found solutions which now make RAWBANK’s EPOS among the most efficient as regards reliability and rapidity, to the great satisfaction of users and traders alike.

The range of bank cards is complete and offers propri-etary and international Visa and MasterCard debit and credit cards. In 2013, MasterCard cards were certified EMV, the international security standard for smart cards. RAWBANK’s Visa cards had already been certified for a few years. Most of the customers have bank cards.

A major new feature at the end of 2013: after a conclu-sive test phase at the City Hall branch (Kinshasa), the cards will be directly issued to the customer at the branch on the day when he makes an application for one. The card will subsequently be activated within a short period of time. The new method of distribu-tion is intended for State employees in an initial stage; it will be grad-ually extended to all customers, throughout the network.

advantageClient

Index


19

RAWBANKthe modern bank innovating in DRC

RAWBANK creates TRAVELIA, travel insurance linked to its international bank cards Rapidos, Visa, MasterCard and MasterCard Traveler’s.

�` SMS BANKING

The SMS Banking offer launched in 2007 is appreci-ated by customers since it is an easy way to receive notifications of account credit or debit movements or to query the balance of the account. The success of this product is growing.

�` RAWBANKONLINE

The number of customers subscribed to the Internet Banking service is constantly increasing.

New features developed in 2013:

�� mass transfer and

�� the downloading of files.

In both companies, it means considerable simplifi-cation for the customers of major corporations and institutions that process a large number of transfers such as, for example, paying salaries and suppliers. The first new feature makes it possible to carry out up to a few hundred transfers in a single transaction; the second, through the file downloading procedure, makes it possible to make up to several thousand payments in a single transaction.

�` MOBILE BANKING

The RawbankOnline version on smartphone and tablets will provide an opportunity for customers not having a PC Internet connection to connect via mobile networks. Knowing that fewer than 6% of the population have Internet access, this will be an important milestone that RAWBANK will reach towards the end of 2014. Other projects are currently being studied.

Welcome to Bancassurance

In 2013, RAWBANK launched the first bancassurance product presented on the Congolese market: TRAVELIA, an insurance linked to its international bank cards Rapidos Visa, MasterCard and MasterCard Traveler’s. Other bancassurance products are in the pipeline.

Index


20

CHINA UNION PAY

�` ACCOUNTS AND CARDS IN RENMINBI

In 2012, RAWBANK innovated once again on the market by giving its customers, both private indi-viduals and enterprises, the possibility of opening accounts in Renminbi. The Chinese currency is also available at the bank’s counters.

The bank makes available the China Union Pay card to its customers since the beginning of this year to complement this offer. It is practical for the Chinese working in DRC and also makes it possible for Congo-lese traders to pay their purchases in China. The card is prepaid.

In doing so, RAWBANK has considerably developed its banking relations in China in the context of the economic, commercial and financial relations that China and the DRC share.

Close relations have been established with Bank of China and Union Pay International.

New consumer credit schemes

�` CAR CREDIT

A new product: car credit for the employees of enter-prises well known to the bank.

Studied and developed in 2013, the new credit was launched onto the market at the beginning of this year. It is intended for salaried customers for financing the purchase of a new vehicle from an approved car dealer.

The salary must be domiciled at the bank, financing may attain 85% of the value of the vehicle, the loan is spread over 36, 48 or 60 months and the amount of the monthly instalment may not exceed 35% of the net monthly salary.

�` EASYSHOP

An agreement was signed with Airtel to allow the bank’s customers to finance the purchase of smart-phones and tablets from the telecoms operator over a period of 12 months. It is a variant of the Easyshop credit scheme previously developed by the bank.

The Private Pass

Launched in 2013, the Private Pass is a personalized card, unique in the DRC, which enables the Private Banking customer to benefit from several advantages within the network of RAWBANK branches, together with VIP access to an increasing number of the bank’s partners in DRC and in Europe (hotels, restaurants, shops, etc.).

Index


21

A toolkit for SMEs

In 2002, the International Finance Corporation (IFC, a member of the World Bank Group) created “SMEToolkit” with technical support from IBM.

This online “toolkit” offers SMEs a training programme geared to the improvement of management practices and the overall performance of enterprises. The tool is available and accessible in 17 languages, in over 40 countries throughout the world.

In December 2013, the SME Toolkit programme of the DRC was implemented thanks to the combined efforts of the IFC and a consortium formed by the FEC (Federation of Congolese Enterprises), the AFAD (the Remote Training Unit Design Department) and RAWBANK.

The three members of the consortium were chosen by the IFC for their essential role in the development of the national private sector.

The DRC version can be accessed on the local website www.rdc.smetoolkit.org.

SMEs may access the site free of charge where they will find different resources likely to help them to improve their performances, including:

�� information about the economic, fiscal and finan-cial environment;

�� training provision in various management areas together with downloadable and immediately useable management tools;

�� facilities for the creation of web pages;

�� facilities for networking likely to promote access to financial services and to the market.

Major corporations, universities, institutional donors, like all economic operators will also find a wealth of resources likely to further better access to information and to SMEs.

ORGANISATIONAL DEVELOPMENTS

Events and projects in phase with strategy

IT, Resources, Operations… so many departments that have progressed in 2013 and are stakeholders involved in the 2014 – 2016 strategic plan.

In the next two pages, a few events to highlight that in-house entrepreneurial impetus geared to the end customer’s service.

Index

advantageClient


22

RESOURCES

The Resources department brings together five units to make available everything which is tangible or intan-gible to all the bank’s departments in a coordinated way, so allowing them to operate efficiently:

�� network development as far as infrastructure is concerned,

�� general services in charge of all the aspects of logistics,

�� organisation as a developer and manager of procedures and bank documentation,

�� project management with the assignment to guide or accompany the bank’s development initiatives,

�� Human Resources.

The HR department integrated into the resources department in May 2013 so as to optimise transversal management for the benefit of all the bank’s depart-ments. (Read chapter 6)

The Project Management department has a central role to play in the implementation of the 2014 – 2016 stra-tegic plan; a score of automation and process fluidity projects were validated by the Board of Directors and the Executive Committee in 2013. The six-person team in charge of the application of those projects will shortly be strengthened by four colleagues.

All those projects are “customer-oriented”, both internally and externally.

They concern, among other things and as examples, the speeding up of procedures for granting loans to private individuals, for issuing bank cards in branches at the very time that the customer applies for a card, mass transfers via RawbankOnline for major corporations, etc.

Those projects are, of course, handled in close collab-oration and complementarity with the IT department and the Operations department.

OPERATIONS

Considering the bank’s fast development, the increasing number of transactions handled on a daily basis for private individuals and for enterprises, the rapid increase in the number of documentary transactions, and the importance that RAWBANK has always attached to the quality and reliability of customer service, a department, within the Executive Committee, was specially dedicated to operations management. The security of assets and people is attached to it.

The Operations department has two priority assign-ments: the complete automation of the processing of transactions and the centralisation of registration to avoid multiplying similar tasks in the network while reducing processing time as much as possible.

Two advantages are clearly identified in this way: optimisation of customer service and control of transaction processing costs.

This approach to efficiency highlights the obvious relationship between the Operations, Resources and IT departments.

Among the major logistic projects, the building of the bank’s future head office, which started in 2013 and will be completed in early 2015.

Below, the scale model of the building – 8000 m² spread over 9 levels.

Index

advantageClient


23

IT

Several useful events and devel-opments are worth noting for the 2013 financial year. They all aim at the ongoing optimi-sation of customer service quality.

�� The speeding of development of automatic teller machines; a hundred or so of those machines including about thirty of them distributing Congolese francs;

�� EMV certification of the Rawbank MasterCard;

�� amounts credited to traders’ accounts on the very day of payment by their customers via electronic point of sale terminals;

�� migration to the 7.0.7. version of SWIFT Alliance Access for the recording of international trans-actions;

�� the installation of SWIFT Sanctions Screening for the detection and the blocking of potentially non-compliant transactions, in the context of the fight against money laundering and the financing of terrorism;

�� the upgrading of VSAT to be able, from now on, to ensure optimum management of telecommuni-cations within a network of about sixty branches;

�� improved monitoring of the entire network 24 hours a day (see photo).

Three keywords are to be highlighted in this quality approach: effectiveness, efficiency and security.

The department employs 31 persons including four in Lubumbashi, one in Matadi and one in Goma

TREASURY

As the financial nerve centre, the treasury depart-ment ensures the optimisation of liquidity, processes customers’ exchange transactions in close relationship with correspondent bankers and manages the bank’s bond portfolio.

Arvind Kumar, IT Manager: “We do not consider ourselves as a department but as sellers of business services”.

From left to right: Mark Temple, responsible for bonds trading, Antoine Kiala Ndombele, general treasury and Zain Rawji, treasurer of the 30 Juin branch in Kinshasa.

Index

03A STRATEGY OF PROGRESS

“CLIENT ADVANTAGE”

p26_ The major priorities of the new 2014-2016 strategic plan

Index

advantageClient

advantageClient


26

CLIENT ADVANTAGE THE SUMMARY OF THE MAJOR PRIORITIES OF THE 2014 – 2016 STRATEGIC PLAN

Our bank’s current strength and positioning is the result of a strategy mainly based on differentiation. RAWBANK has always been innovative through the products that it offers, through the quality of the welcome reserved for its customers and through its marketing. It is essential to intensify our efforts towards differentiation if we want to keep a dominant position on the banking market in the Democratic Republic of Congo.

The 2014-2016 plan, prepared by the Strategic Development department is the fruit of reflections with many staff members. It has been discussed and debated within the Executive Committee and approved by the Board of Directors.

Thierry Taeymans Chairman of the Executive Committee

FOUR BASIC PRIORITIES form the framework of the strategic plan and directly involve all the bank’s

divisions and departments in a same Customer-oriented approach illustrated

by the pictogram “Client Advantage”.

1. A commercial priority

�� Fine tune the segmentation of the different types of customers;

�� Adapt the offering and distribution channels by factoring in each segment’s specificities and needs;

�� Ensure that the working methods, the skills and the objectives of the employees in daily contact with customers match that approach.

2. A relational priority

�� Consolidate the complementarities of skills and the harmony of relations between the employees in contact with customers and those in support functions.

3. An operational priority

�� Strengthen processes and adopt the best prac-tices and working methods throughout the entire organisation.

4. An institutional priority

�� Institutionalise the bank and give it a worldwide dimension and position it as a premium banking institution in DRC.

Index


27

STRATEGIC OBJECTIVES

To be “the best bank in DRC” for the benefit of all its stakeholders, RAWBANK’s strategic plan targets four objectives:

�� Preserve solvency and liquidity�� Solvency ratio > 20%�� Liquidity ratio > 100%�� Ratio loans/deposits < 50%

�� Develop human expertise and skills�� Strengthen the means of actions of

the Rawbank Academy�� In doing so, attract, retain and consolidate

the best talents�� Fine tune the career management plan�� Optimise the effectiveness of each job

�� Manage the risks of each business

�� Keep ineffective credit rates below the bar of 3%�� Aim for the efficiency of internal auditing

�� Deliver optimum profitability�� RoE (Return on Equity) > 10%�� CIR (Cost Income Ratio) < 70%

ONE SINGLE GUIDING THREAD RUNNING THROUGH THIS PLAN: CUSTOMER SATISFACTION THROUGH SERVICE QUALITY, INNOVATION AND CREATIVITY

TOGETHER WITH OPTIMUM COVERAGE BY THE NETWORK OF BRANCHES.

Strategic Development Manager, Mustafa Rawji (on the left in the photo) works in twos with Kashama Pascal Nyangombe in the analysis, the implementation and the monitoring of the 2014 - 2016 strategic plan. The latter joined RAWBANK in September 2013. He was previously Commercial Manager at the International Credit Bank 1.

1 . Kashama Pascal Nyangombe is a graduate in economics of the University of Strasbourg. He started his banking career in 2001 at UBS. His pathway through the Swiss bank led him to Zurich, Geneva, New York and to the Middle East, while working in the areas of the strategy and development of wealth management. In 2010, he joined the International Credit Bank in DRC. After a spell in Katanga, he became commercial manager and member of the Executive Committee in 2011.

Index

04CORPORATE

GOVERNANCE

p30_ Board of Directors and the Executive Committee

p36_ RAWBANK standards of governance

The bank projects a clean and clear welcoming image that matches the quality of the rules of governance that set out the standards of conduct of the bank’s

employees at the Customer’s service.

Index


30

CORPORATE GOVERNANCE

Requirements related to governance have considerably progressed in recent years. RAWBANK is closely following the relevant developments and continues, if necessary, to strengthen its governance structure.

Corporate governance is the outcome of a choice of management and behavioural options made by the bank’s shareholders and directors and by its executives. It is underpinned by the competency and the integrity of the members of the Board of Directors, a strategic vision, the search for added value and the fluid flow of infor-mation among stakeholders.

THE BOARD OF DIRECTORS

The tasks of the Board of Directors are set out in the memorandum of good governance. The main ones are summarized below.

�� Determining corporate values and making sure that executive management ensures that the bank’s entire staff comply with those values and observe appropriate legal compliance.

�� Determining the bank’s strategic guidelines, ideally in a process of collegial agreement with executive management and seeing that those guidelines are implemented and monitored.

�� Determining the risk level that the bank may accept to take and providing entrepreneurial leadership.

�� Taking all the necessary steps to ensure the integ-rity of the bank’s financial statements.

�� Proposing the appointment of competent inde-pendent directors to the general meeting.

�� Appointing the members of general management and making sure that they assume their respon-sibilities with competence and loyalty while complying with the policy defined by the Board.

�� Conducting the inspection and checks that it considers advisable and ensuring the reliability of the financial information provided to shareholders.

�� Defining a clear hierarchy of responsibilities and seeing that it is observed at all the levels of the bank.

�� Ensuring the independence of risk management, compliance, ethics and internal audit functions and supervising the assessment of the mechanisms implemented by those functions.

�� Making sure that the external auditors comply with the professional standards and practices applicable to their duties.

�� Acting through specialized committees, such as the Audit Committee, the compliance committee and the risk management committee.

�� Approving the remunerations of the members of general management and key staff members, in compliance with the corporate culture, long-term strategy and objectives together with the bank’s audit structure.

Index


31

THE COMPOSITION OF THE BOARD OF DIRECTORS(at 31/03/2014)

Chairman

�� Mazhar RAWJI

Executive directors

�� Thierry TAEYMANS, Managing Director�� Mustafa RAWJI�� Mutuale MUKADI MPAKA

Independent directors

�� Michel DECUYPERE, chairman of the Audit Committee�� Michel NOTEBAERT,

member of the Audit Committee�� Alain BOUCHER,

member of the Audit Committee

THE AUDIT COMMITTEE

The Audit Committee, chaired by an independent director, reports directly to the Board of Directors. It provides monitoring support to the Board of Directors and intervenes in the following areas: the finalising of accounts, risk management and control, the compli-ance of the internal control system and internal and external audit activities.

THE EXECUTIVE COMMITTEE

The Managing Director and the Executive Committee form the bank’s executive management.

The Managing Director is entrusted with the bank’s daily management and its representation as far as that management is concerned.

The Executive Committee assists the Managing Director in preparing strategic proposals to be referred to the Board of Directors, in supervising the bank’s operational activities and in analysing the bank’s performances.

Chairman

Thierry TAEYMANS, Managing DirectorThierry Taeymans has a degree in sales engineering from the Institut Supérieur de Commerce St Louis in Brus-sels. His banking experience began in 1982 at Banque Belgolaise in Brussels, where he held several posts in the loans department. He under-took several assignments in Africa and in 1994 joined Banque Commerciale Zaïroise (BCZ, now BCDC). He returned to Brussels in 1999. In 2001, Mazhar Rawji called upon him to assist in the establishment of RAWBANK and he became its Managing Director. He was appointed Vice-Chairman of the Congolese Banking Association in 2008 and is secretary of the Belgian-Congolese Chamber of Commerce and Director of the Federation of Congolese Enterprises (FEC).

Index


32

Vice-Chairman

Mustafa RAWJI, Strategic Development ManagerMustafa Rawji was born in Kinshasa. He carried out his secondary education in London and obtained a Master’s Degree in Finance in Boston. He assisted in the establishment of RAWBANK in 2002. Two years later, he took the initiative of acquiring

international banking experience and joined HSBC in Dubai for a period of 5 years as a Corporate Executive in the Corporate Banking department. In September 2009, he subsequently joined RAWBANK as Deputy Secretary-General. Mustafa Rawji chairs the Loans Committee, manages the Marketing & Communication Department and chairs the Quality Committee. He was appointed Strategic Development Manager at the end of 2013.

Members (in alphabetical order)

Nadeem AKHTAR, Risk Manager

Nadeem Akhtar holds a Master’s Degree in Finance & Audit, which he obtained in New Delhi. He has 13 years’ experience in the banking sector, initially as Credit Officer at an Indian bank in New Delhi. He joined RAWBANK in 2004 as Loans Manager and joined the Exec-utive Committee in 2007, in the wider role as Risk Manager.

Pierre GAUBE, Resources Manager

A sales engineer having grad-uated from the University of Mons-Hainaut (Belgium) in 1995, Pierre Gaube developed his career with Dexia until November 2011. Attached to the Strategic Planning Depart-ment and then to the Public Sector Clients Marketing Department of Dexia Bank (now Belfius Bank), he subsequently moved to the Strategic Planning and Management Information department of Dexia Holding and then to the Strategy and Development Department where he subsequently became advisor to Dexia Bank’s Public Affairs Depart-ment. In December 2011, he joined RAWBANK in Kinshasa as National Retail Manager, became Manager of the Organisation Department in October 2012 and was appointed Resources Manager and a member of the Executive Committee in August 2013.

Christian KAMANZI, Operations Manager

Christian Kamanzi Muhindo holds a BA in Applied Economics and is an inde-pendent auditor. He gradu-ated from FUCaM (University of Mons, Belgium) His first professional experience was as a junior auditor at DRT-Cabinet Michel Vaes in Brussels (now Deloitte & Touche.) In 1993, he moved to Kinshasa where he was Treasury assistant at Citibank. In 1996, he became Vice-Chairman at the Banque de Commerce et de Développement in Kinshasa with responsibility for Operations and Sales. He returned to Citibank in 2002 and was appointed Treasury Manager until 2004 when he became General Manager of the Union des Banques Congolaises. In 2007, he joined RAWBANK as a manager and member of the Executive Committee.

Index


33

Arvind KUMAR, Chief Technology Officer

With a Post-Graduate Diploma in Computer Applications, Arvind Kumar also studied Computer Science and Engineering in Mumbai. He began his career in 1994 as a computer programmer and then became a systems analyst, specialising in banking solutions. A little

later on, he was appointed team manager at Infrasoft Technology Ltd. and consultant for the Central Bank of India in the context of the automation of the banking system. He was recruited by RAWBANK in 2004, wishing to draw on this experience. He has been a member of the Executive Committee since March 2012.

Jean-Pierre MUTUALE, Secretary-General Executive Director

Jean-Pierre Mutuale has a BA in Commerce and Finance from the University of Kinshasa. In 1973, he joined the Banque Commerciale Zaïroise (BCZ today BCDC) where he held the posts of Branch Manager, Central Administration Depart-ments Manager and Head of

Management (Organisation & IT). He has played an active part in the various stages of the establish-ment of RAWBANK since 2001, becoming a member of the Executive Committee initially responsible for Organisation, IT and Human Resources. He has been Secretary-General since the end of 2009 and, in addition, since 2012, manager with responsibility for controlling operational risks (internal monitoring).

Balaji PRABAKAR, Finance Manager

Balaji PRABAKAR was awarded a degree by the Institute of Chartered Accountants of India in New Delhi and is a chartered accountant. He also has the degree of Bachelor of Commerce from the University of Chennai, India. After 8 years’ experience in various sectors (construction, audit, consulting, the hotel industry), he came to the DRC in December 2001 as an accountant for Beltexco. He joined RAWBANK in 2004 as Deputy Accounting Manager. He was appointed Management Auditor in 2008 and Finance Manager in January 2013.

Didier TILMAN, Commercial Manager

Didier Tilman joined RAWBANK in September 2009 after an international career within the Fortis group, among others, at Banque Belgolaise. He joined Générale de Banque (which subsequently became Fortis Banque) in 1990 as a university trainee where he carried out commercial busi-ness duties and then took on responsibilities in the Loans Department. His career pathway took him to Nigeria for 3 years, to Spain for 3 years and to Hong Kong for 3 years. In the meantime, he was able to satisfy his passion as a globetrotter by travelling the world on foot between 1994 and 1997. As an international banker, he took over the running of the bank in Katanga at the end of 2009 and joined the bank’s head office in Kinshasa at the beginning of 2014.

Index


34

Amir NDEBO

Jean Pierre MUTUALE Member of the Executive Committee

Dep. SEC-GEN: Olivier KATUALA Dep. ORMD: Thomas TSHIMANGA Dep. COMPLIANCE: Isaac KALALA

Michel DECUYPEREComité d’audit

Mazhar RAWJIChairman

Thierry TAEYMANS Chairman of the Executive Committee

Board of Directors

Managing Director

Management Secretariat

General Secretariat, operational risk and

compliance management

Didier TILMAN Member of the

Executive Committee

Commercial Department

> Corp. & Institutional Banking Etienne MABUNDA

> Commercial Banking Raymond LOAMBO KATSHINGU

> Retail Banking Michel BRABANT

> Private Banking Philippe BRYLKA

> Regional Managers N. GROBELNY South*, H. BOSALA MVEMBA East, V. RAMACHANDRA Centre, G. KIPULU West

* As from 1 July 2014

> Alternative channels Jean-Paul ODENT

> RAWBANK Branch Network Fabrice HAINAUT Dep. Sébastien NGOY

Pierre GAUBEMember of the

Executive Committee

Resources Department

> Organisation Fuata MAKUNTIMA

> Project Management Joseph THIERNO LY

> General Services Gaurang UPADHYAY Dep. Krishnadas CHOLA

> Network Development Tatiana MARESCA

> Human Resources & Academy Elly KABANGU

Balaji PRABAKARMember of the

Executive Committee

Finance Department

> Correspondent Banking Patrick LUFULUABO Dep. Diane KALONJI

> Accounting Trésor MUKENGESHAYI Dep. Rakesh JAIN

> Treasury Antoine KIALA Dep. Angélique KHONDI

> Management Audit Manohar ARAVA Dep. Leela KRISHNA

Nadeem AKHTARMember of the

Executive Committee

Loans and Financial Risks

Department

> Loans Management Nadeem AKHTAR Dep. Nelito MBIYA

> Back Office and Checks Numan HASHMI Dep. Jean-René KWIMI

> Collections César MPOYI Dep. Freddy KABONGO

> Credit Risk Management Nadeem AKHTAR Dep. Muhammed SHEHZAD

> Assets – Liabilities Management Nadeem AKHTAR Dep. Maya SITA

Christian KAMANZI MUHINDO

Member of the Executive Committee

Dep. Jean-Jacques KABWE

Operations and Bank Security Department

> Sundry operations Popol MONDONGA

> Electronic Banking Operations Ian RODRIGUES

> Decentralised operations Lucie KULELANA

> Bank security Vedapuriswara SARATHI

Arvind KUMARMember of the

Executive Committee Dep. Krishnakant

NIRALA

IT Department

> Applications Arvind KUMAR

> Infrastructures Arvind KUMAR

> Development and reporting Norbert KALALA

> Administration and Project Coordination Pamela KAMULETA

> Production and support Donascien LUKOMBO

> Data Security Jean-Jacques MATONGA

Michel DECUYPEREAudit Committee

Innocent NGANDU

Audit

Mustafa RAWJIVice-Ch. of the Executive Committee

Dep. Kashama Pascal NYANGOMBE

Strategic Development

Albert OKITOSOMBA

Dep. Gabriel WEMBOLOWA

Legal

Lucky TSHIMANGA

Marketing & Communication

THE BANK ORGANISATION CHART

Index


35

THE SPECIFIC COMMITTEES ATTACHED TO THE EXECUTIVE COMMITTEE

Specific committees are associated with the Executive Committee which, by agreement with the Board of Directors, defines their organisation, objectives and how they operate. The purpose of the specific commit-tees is to ensure that all the bank’s services and departments operate with maximum efficiency, while upholding quality and security. These committees meet at regular intervals, each according to its own predetermined schedule. The bank numbers twenty or so committees:

1. The Commercial Committee, chaired by the Commercial

Manager, meets twice a month.

2. The Loans Committee, chaired by the Strategic

Development Manager, meets once a week.

3. The Budget Committee, chaired by the Finance


4. The Compliance Committee, chaired by the Compliance

Manager, meets once a month.

5. The Treasury and Investments Committee, chaired

by the Finance Manager, meets 3 times a week.

6. The IT Committee, chaired by the IT Manager,

meets once a month.

7. The Human Resources Committee, chaired

by the Resources Manager, meets once a month.

8. The Marketing & Communication Committee, chaired

by the Marketing Manager, meets twice a month.

9. The Quality Committee, chaired by the Resources


10. The Operational Risk Management Committee,

chaired by the Secretary-General, meets once

a month.

11. The Security of Assets and People Committee,

chaired by the Operations and Bank Security


12. The Network Development Committee, chaired

by the Resources Manager, meets twice a month.

13. The Branch Network Committee, chaired by the

Branch Network Manager, meets twice a month.

14. The Information Systems Security Committee,

chaired by the Information Systems Security


15. The ATM and EPOS Network Optimisation Committee,

chaired by the Electronic Banking Manager, meets

twice a month.

16. The Collections Committee, chaired by the Loans


17. The Assets & Liabilities Committee (ALCO), chaired

by the Loans Manager, meets once a month.

18. The Investment Committee, chaired by the Managing

Director, meets once a month.

19. The Operations Committee, chaired

by the Operations and Bank Security Manager,

meets once a month.

20. The Small Loans Committee, chaired

by the Loans Manager, meets once a week.

21. The Technology Watch Committee, chaired

by the IT Manager, meets once a month.

Index


36

Committees are also organised in each branch in accordance with clearly defined processes and taking the category of the branch into account. The objective is to ensure that each entity functions to the best of its ability, to control risks, to strengthen the quality of the department and to promote commercial devel-opment for the benefit of the various clearly defined customer targets. Minutes of every meeting are sent to the head office management.

Departmental meetings are also held in in accordance with procedures and clearly defined schedules in order to ensure that every mechanism within the bank is running as smoothly as possible.

RAWBANK STANDARDS OF GOVERNANCE

Governance is described in several charters that deter-mine how the Board of Directors and the Executive Committee work.

At Board level:

�� the memorandum of good governance

�� the charter of the Board of Directors

�� the charter of the Audit Committee

At Executive Committee level:

�� the charter of executive management,

�� the charter of professional conduct,

�� the compliance charter,

�� the internal monitoring charter,

�� the internal audit charter,

�� the social and environmental risk management policy.

These standards of governance comply with the instruc-tions from the Central Bank of Congo (instructions 15, 17 and 22) and meet internationally acknowledged bank management criteria.

( These documents are available on request by applying to the bank’s general secretariat or in PDF on www.rawbank.cd )

Index


37

Already 7 years ago, the Chairman of the Board of Directors wrote what is still a topical message.

The bank’s long-term future presupposes observance of the

highest standards with regard to ethical practices, transparency

and compliance with national and international standards and

regulations relating to the banking profession.

Our goal has been clear from the start when the bank was

founded in 2002: to provide excellence in banking and finance

in the Democratic Republic of Congo. In specific terms, the Board

of Directors of RAWBANK has decided on an approach of service

and excellence in line with the expectations and needs of the

economic operators active in the DRC. Three words illustrate the

key elements of our strategy: solvency, flexibility and speed.

That is why we operate a zero tolerance policy with respect to

operational risk.

Index

05RISK MANAGEMENT

p40_ Credit risk

p42_ Assets and liabilities management

p42_ Liquidity risk

p44_ Market risk

p45_ Operational risk

Considering the size that RAWBANK is acquiring in the DRC, vigilance more than ever prevails in risk

management and control and is a characteristic feature of practice in the banking business.

Index


40

RISK MANAGEMENT

CREDIT RISK MANAGEMENT

Credit risk is defined as the possibility of loss asso-ciated with the decreased quality of the credit of borrowers or counterparties. In the bank’s portfolio, losses result from defaults on account of the inability or the refusal of a borrower or a counterparty to meet his commitments.

Credit management, centralised at head office level, manages the bank’s credit risk. It is mainly respon-sible for the implementation of the risk management strategy approved by the Board of Directors, for the development of risk management procedures and systems, for the independent assessment of credit risk and for the monitoring of the composition and the quality of the portfolio.

Credit processes

The bank satisfies its customers’ needs while main-taining a healthy and balanced portfolio. Credit exposure is managed on the basis of an identification of target markets, an appropriate choice of credit processes, and an implementation of suitable credit monitoring systems after disbursement.

The bank has adopted two different credit process methods adapted to structured loan products, on the one hand, and to transaction loans, on the other.

�� For structured loan products, the bank fixes the maximum ceiling for exposure to credit risk for a set of customers with similar characteristics, profiles and/or products, with clearly defined standard criteria, terms and conditions. It is an economic approach to credit management in cases where credit risks and expected returns lend themselves to a foreseeable approach model. Considering the number of cases to be dealt with, automated monitoring and reporting are impor-tant in identifying the credit portfolio trend so as to initiate the corrective actions to be taken in time.

�� As regards transaction loans, emphasis is placed on the quality of the borrowing customer and on experience of the loan. The approval process is based on detailed.

The bank’s credit policy covers various aspects and, in particular, target markets and customer segmen-tation, parameters for qualitative and quantitative assessment, the composition of the portfolio, ceil-ings for credit exposure, concentration limits, the limit structure, approval powers, loan classifications and loan provisioning. It also takes into account prudential standards, regulatory requirements, the nature and the complexity of the bank’s business and market dynamics.

The bank has set ceilings according to different risk dimensions, as regards the borrower, group of borrowers, sphere of economic or industrial activity, etc. in order to ensure diversification of the risk.

The bank identifies non-performing loans and appro-priates suitable provisions in accordance with the instructions drawn up by the Central Bank of Congo.

Index


41

Highlights of the year 2013

The loans portfolio increased in 2013 from 26% and reached USD 294 million with an increased share of the loans to SMEs and private individuals.

The rate of gross unpaid loans decreased from 2.66% to 2.51%. The rate of net unpaid loans (after deduc-tion of provisions) remains acceptable at 1.07%.

The total disbursement loans and guaranteed loans provided to the companies in the RAWJI group amounted to USD 0.70 million and USD 9.91 million respectively as at 31/12/2013. The companies in the group are entirely free to choose who they bank with.

This portfolio is split between several sectors of the economy, as illustrated above. The figures (in USD 000) indicate the position at the end of 2013.

201320122011

4,754 4,666 432

53,500 41,432 33,856

17,453 16,656 17,140

345 641 17

340 612 85

104,971 32,934 23,146

2,023 1,974 1,765

3,900 6,009 8,473

13,837 11,459 4,053

143 248 462

5,845 4,290 5,298

279 249 287

2 5 0

3,641 4,289 2,601

26,021 20,178 13,790

156 56 0

98 5,883 1,314

53,445 68,885 33,448

526 685 674

1 1 0

OTHER NON-CATEGORISED ACTIVITIES

PRIVATE INDIVIDUALS / HOUSEHOLDS

TRANSPORT AND STORAGE

FORESTRY AND LOGGING

HEALTH AND SOCIAL MEASURES

MINING PRODUCTION

INDUSTRIAL PRODUCTION

WATER PRODUCTION AND DISTRIBUTION

GAS AND ELECTRICITY PRODUCTION AND DISTRIBUTION

NON-RESIDENTS

INFORMATION AND COMMUNICATION

HOTEL ACCOMMODATION AND RESTAURANTS

REAL ESTATE COMPANIES, RENTAL AND BUSINESS SERVICES

EDUCATION

LIVESTOCK REARING AND FISHING

CONSTRUCTION, BUILDINGS AND PUBLIC SPACES

WHOLESALE AND RETAIL BUSINESS AND REPAIR OF VEHICLES AND PERSONAL GOODS

ARTS, SHOWS AND RECREATIONAL ACTIVITIES

AGRICULTURE

PUBLIC ADMINISTRATION

FINANCIAL ACTIVITIES AND INSURANCE

2,757 12,476 11,124

Index


42

ASSET AND LIABILITIES MANAGEMENT

In August 2012, the bank established an Assets & Liabilities Committee (ALCO) to manage financial risks, protect the value of the bank’s balance sheet and to ensure that the financial policy and commer-cial strategy are consistent.

ALCO’s role comprises the following elements:

�� approving the rates fixed for deposits and advances;

�� ensuring the monitoring and making recommen-dations on the maturity and the composition of assets and liabilities;

�� making recommendations on financing policy and investment policy;

�� ensuring compliance with the limits fixed by the Board of Directors, compliance with prudential ratios and external financing conditions;

�� taking decisions regarding the price fixing policy for internal transfers of funds;

�� managing the bank’s liquidity risk and interest rate risk.

How it operates

The committee is composed of five members attentive to the trend of information and the environment for effective management of the bank’s balance sheet. Those members are the Finance Manager, the Treasury Manager, the Commercial Manager and the Strategic Development Manager, under the chairmanship of the Risk Manager.

It meets once a month. In an emergency, it may meet at the request of one of its members.

ALCO makes a quarterly report to the Board of Direc-tors on the different risk indicators.

LIQUIDITY RISK MANAGEMENT

Liquidity risk reflects a bank’s ability to finance increases in assets and to meet its commitments when they are due, without suffering unacceptable losses.

The bank effectively assesses its risk using the ‘liquidity gaps’ tool, according to instruction No. 14 of the Central Bank of Congo.

RAWBANK continuously maintains a liquidity ratio of 100% between its liquid assets and its resources to within one month. That ratio appears in three forms: calculated solely in national currency, calculated in foreign currency and calculated on the basis of all currencies together.

Liquidity inflows and outflows are split over the remaining durations and presented as follows: less than 1 month, 1 to 3 months, 3 to 6 months, 6 to 9 months, 9 to 12 months, 1 year to 2 years, 2 to 3 years, 3 to 5 years, more than 5 years.

As regards deposits without a maturity date, the assumptions made are those of the Central Bank of Congo:

�� current accounts: 75% at maturity < 1 month and 25% at 1-2 years maturity

�� savings: 30% < 1 month and 70% at 1-2 years maturity

Index


43

Current liquidity policy

The policy of the bank is to be capable of meeting any demand for liquidity from its customers.

To achieve this objective, the Board of Directors has set a limit on its loan portfolio (including unused loans) to a maximum of 60% of total deposits.

The bank has also added the standard of the ratio of liquid assets to total assets which must be higher than 35%. For this ratio, only the following assets are considered as liquid:

�� cash,

�� the surplus of required reserves held by the Central Bank of Congo;

�� investments in bonds and commercial papers realisable within three months;

�� deposits with correspondent banks having a remaining duration of less than three months.

Overall, at the end of December 2013, assets had an average life of 0.33 years compared with an average life of 1.16 years for liabilities.

DETAILS

Amounts maturing during this period (All the amounts are in USD 000)

< 1 months

1 - 3 months

3 - 6 months

6 - 9 months

9 m. - 1 year

1 - 2 years

2 - 3 years

3 - 5 years

> 5 years Total

Total Assets 511,081 67,738 80,715 28,186 16,827 81,579 3,593 2,615 1,048 793,382

Total Liabilities 480,197 7,996 9,004 5,957 9,805 176,190 3,360 5,878 3,320 701,707

Maturity gap 30,884 59,742 71,711 22,229 7,022 -94,611 233 -3,263 -2,272 91,675

Cumulative maturity gap

30,884 90,626 162,337 184,566 191,588 96,977 97,210 93,947 91,675

Cumulative maturity gap as a % of regulatory capital

34% 99% 177% 201% 209% 106% 106% 102% 100%

Index


44

MARKET RISK MANAGEMENT

Market risk is the risk of loss that may result from fluctuations in the prices of the financial instruments that make up the bank’s portfolio. It may concern, among other things, interest rates, exchange rates, raw material prices, etc.

Interest rate risk

The rates of interest applied by the bank on trans-actions with customers (deposits and loans) are marginally influenced by the interest rates on the international financial markets, in particular the Libor rate.

By contrast, an interest rate risk exists as regards the investment of excess liquidity in correspondent banks. If the Libor rate should increase on international financial markets, the return on that excess liquidity is improved.

Exchange risk

The bank assesses its exchange risk in terms of net position between its resources and its uses by currency.

According to instruction No. 14 of the Central Bank of Congo, the bank is required to comply with:

�� a maximum ratio of 5% between the amount of its long or short positions in each foreign currency and the amounts of its regulatory capital. For the currencies most used in the country and for the American dollar in particular, the maximum stipulated for this ratio is raised to 15%;

�� a maximum ratio of 15% between the amount of its long or short positions in all currencies and the amount of its regulatory capital.

INDICATORS Benchmarks / Limits 31 Dec. 09 31 Dec. 10 31 Dec. 11 31 Dec. 12 31 Dec. 13

Ratio loans / deposits 50% 42.38% 32.50% 38.73% 46.40% 52.90%

Solvency ratio of the hard core (Tier I Capital Adequacy Ratio)

7% 9.55% 12.24% 15.81% 19.77% 17.92%

Solvency ratio (Total Capital Adequacy Ratio)

10% 18.39% 22.44% 25.09% 27.59% 25.61%

Exchange rate ratio 15% 4.12% 8.98% 0.62% 9.82% 1.68%

Ratio of liquid assets over total assets

35% 58.80% 65.59% 59.24% 43.00% 42.00%

Share capital / Total assets 5% 10.39% 11.19% 11.15% 11.30% 11.55%

Short-term liquidity in local currency

100% 127.38% 160.98% 181.95%

Short-term liquidity in foreign currency

100% 111.49% 113.17% 103.04%

Short-term liquidity in all currencies combined

100% 157.25% 115.20% 110.34%

THE MAIN RISK MANAGEMENT INDICATORS

Index


45

OPERATIONAL RISK

Operational risk is the risk of direct or indirect losses due to unsuitability or failure of the bank’s procedures (no or incomplete monitoring, insecure procedure), its staff (error, malicious intent or fraud), internal systems (IT failure, etc.) or external risks (flooding, fire, etc.).

The “Operational Risks Management” department is responsible for the implementation and the maintenance of the identification mechanism, for assessment and monitoring of operational risks (risk mapping, ongoing monitoring, key risk indicators, crisis management and continuity plan).

The internal audit concerns the process implemented by the bank, at all operational and functional levels, intended to continuously give a reasonable assurance that:

�� transactions are carried out with the utmost security and make it possible for the bank to achieve its basic objectives of performance and protection of assets and securities;

�� information utilised and disseminated by the bank is reliable;

�� compliance is ensured with legal and regulatory provisions, instructions or any other directives.

As part of the operational risk assessment and prevention process, the tasks of the Operational Risks Management department include:

�� training staff members and raising their awareness of the need to identify and prevent the opera-tional risks to which their respective activities are exposed;

�� conducting annual risk mapping and implementing preventive measures for identified major risks;

�� conducting ongoing second-level audit assign-ments within all the bank’s operational and functional entities (including incoming inspection of accounting documents);

�� regularly assessing key risk indicators and devising new ones;

�� making an ongoing analysis of audit findings

�� (1st and 2nd levels) and updating audit opera-tions;

�� updating the crisis management mechanism and business continuity plan.

The Operational Risks Management department reports to the bank’s General Secretariat. The latter chairs the Operational Risk Committee. As such, it ensures compliance with generally acknowledged standards and practices, especially at international level.

Index

06SOCIAL

RESPONSIBILITY

p48_ Development of the RAWBANK Academy

p50_ 2013 Social report

p52_ The bank at the heart of social life

As a creator of added value for the Congolese economy, RAWBANK integrates corporate social responsibility into its vision of a promising future for young generations.

Index


48

SOCIAL RESPONSIBILITY

THE DEVELOPMENT OF THE RAWBANK ACADEMY

August 2010 was the date when RAWBANK innovated in the DRC and founded an Academy intended to professionalise its staff members and integrate newcomers.

The creation of the Rawbank Academy was therefore the result of the proactive vision of the bank’s exec-utives, considering that it was a long-term strategic investment, with radically new objectives aimed at strengthening the quality of the talents within the bank and consequently improving performance and organizational effectiveness.

“THE RAWBANK ACADEMY MUST MAKE OUR BANK A CENTRE

OF EXCELLENCE IN THE CONGOLESE BANKING SYSTEM.”

Thierry Taeymans Chairman of the Executive Committee

Development highlights in 2013

In 2013 and early 2014, the Rawbank Academy expe-rienced a new stage in its development highlighted by several events.

�� The Academy adapted its structure and split its activity into two types of training:

�� 1. Basic training intended for newly hired staff and young university recruits in particular. The latter now benefit from three months’ initial training alternating between theory and prac-tice, followed by a two-month period in the field. The trainees undergo assessment tests when that initial training has been completed. �� 2. Continuous training intended for all staff

members focusing on the bank’s products and tools, the range of services, innovations and current campaigns, together with management techniques.

�� In 2013, 102 weeks of continuous training were organised by the Rawbank Academy including 85 locally and 17 externally for the benefit of 2,052 employees trained for 4,636 hours of training.

Knowledge is not power, it is a treasure that you must know how to share

Index


49

�� A 2014 comprehensive training plan was drawn up on the basis of the needs expressed by all the departments of the bank. That plan contains 132 training topics and comprises 7,222 hours of training, i.e. 10,755 days of combined training.

�� The organisation of the Academy was strengthened by the appointment of an experienced manager, Mike Mutombo (photo), a former company exec-utive with an international profile and active in the training sphere since 2010. He took charge of the management of the Academy in July 2013.

�� In February 2014, the Rawbank Academy moved into new premises located on the upper floor of the Victoire branch in Kinshasa. The classrooms are equipped with the most modern teaching tools. It is also planned to organize videocon-ferencing classes so as to reach the employees in the different regional areas more easily and more regularly.

�� The creation of a computerized “training pass-port” for each of the bank’s employees makes it possible to retrace the history of the training received by each of the staff members.

Advantages for the bank’s organisation

In doing so, the Academy, as an occupational training centre, provides operational responses to tasks such as the strengthening of corporate culture, change management by adapting rapidly in the face of compe-tition, enhancement and exchange of knowledge among employees by organising “breeding grounds”, the dissemination of good practices, etc.

The content of the Rawbank Academy’s syllabi goes beyond the traditional fields of occupational training.

In actual fact, the Academy has several target objec-tives:

�� organisational development and change manage-ment by optimising the know-how of each of its staff members and, in doing so, obtaining a profitable return on “training” investment;

�� building staff loyalty, among other things, by spreading a common corporate culture and a feeling of belonging to a community with shared interests;

�� training through top-level actions by an impetus of availability and production of knowledge matching the bank’s strategic challenges;

Mike Mutombo

Index


50

�� informing staff about topical professional, social and economic themes and developing a broadened outlook of the issues facing the bank;

�� developing exchanges in order to encourage the sharing of knowledge and the cross-fertilisation of experiences;

�� ensuring the best possible integration for newly hired staff through training in the basic tech-niques, ethics and values of the banking business;

�� seeing that all staff have an excellent command of banking tools, products, services and techniques in order to promote quality;

�� creating a talent supply chain;

�� last but not least, optimising the banks overall performances.

In this process, the Rawbank Academy is now working in partnership with major colleges and universities, consultancy firms and renowned training centres.

THE 2013 SOCIAL REPORT

During the last four years, the number of jobs has been multiplied by two. This growth is linked to the bank’s fast

development and the willingness to accompany that progress by providing a first-rate service for the customers’ benefit. The

Rawbank Academy’s role has been significant in this respect.

advantageClient

The age pyramid

The age pyramid matches the bank’s youth: a bank which closed its twelfth financial year in 2013.

The age pyramid

The age pyramid matches the bank’s youth: a bank which closed its twelfth financial year in 2013.

2013

2012

2011

2010

2009

20-30 31-40 41-50 51-60 60 and +

161

538

161

19 18

2013 897

743

627

515

435

2012

2011

2010

2009

313 Women

584 Men

41 Management Staff

652 Operations staff

204 Middle Manag.

7% A levels

24% Master’s

69% Bachelor’s

Index


51

The shape of the age pyramid also reflects the youthfulness of the staff arising from the need to hire many young university graduates to accompany the bank’s fast development.

Multiculturalism

In 2013, there were nine nationalities working at the bank: Congolese, Chinese, Lebanese, Indian, Belgian, French, Pakistani, American and British.

This multiculturalism is undoubtedly an asset for the bank and its customers, in a country increasingly open onto the world.

RAWBANK’s human assets

The bank has many assets at its disposal to attract and retain the most talented people:

�� the bank’s reputation for seriousness and compe-tency,

�� the strength of the RAWBANK brand on the market,

�� the implementation of a forecast job and skills management plan,

�� the enhancement of talents through the develop-ment and the success of the Rawbank Academy,

�� the sharing of a young and dynamic corporate culture focusing on people’s integration and the complementarity of skills.

Everyone, at the very heart of the company, is concerned by the bank’s development and success at the customer’s service. If a significant share of the work is primarily witnessed in the offices, an essential part of the business is done in the field, in contact with the market and in close relationship with customers.

The proximity approach has been an integral part of corporate culture since the bank was founded in 2002. It involves all the staff and, first and foremost, the entire management team (in the centre on the photo, Mazhar Rawji, Chairman of the Board of Directors, in direct contact with customers.

Index


52

THE BANK AT THE HEART OF SOCIAL LIFE

RAWBANK is involved in social life in the DRC, whether through the promotion of cultural and artistic activ-ities or in support for associations that work for the wellbeing of the populations and respect for nature. The bank was involved in several projects in 2013.

RAWBANK sponsors a musical evening for the benefit of sickle cell sufferers

Within the scope of its philanthropic activities, Kin Accueil, a non-profit organisation, which brings together women of different nationalities, focused on the situation of sickle cell sufferers by organising “an exceptional musical concert”, from which the takings will be used to buy ultrasound equipment to improve the diagnosis of sufferers.

Giving details about the risks of this degenerative disease and the need for early diagnosis, Father Henri de la Kethulle de Ryhove, coordinator of the National Crusade, recalled that sickle-cell disease is the most widespread genetic and hereditary disease on the planet, but one which wreaks havoc in Africa.

In countries weighed down by poverty like the DRC, 50% of sickle cell sufferers die before their fifth birthday. Kinshasa numbers almost 80,000 sickle cell sufferers (homozygous SS).

RAWBANK joined with the companies Grand Hotel Kinshasa, Engen, Orange, Brussels Airlines, Graphic System, Bralima, Vlisco and Bracongo to make the organisation of this evening possible.

RAWBANK supports the CHIRPA non-profit organisation (asbl)

Since 2011, the NGOs Chaîne de l’Espoir – Belgium and D.R. Congo together with the non-profit organisation Espoir de Vie, working within CHIRPA ASBL, have been mobilising efforts for the sustainable development of a surgery and paediatric intensive care unit meeting strict health and safety standards on the site of the Ngaliema Clinic in Kinshasa.

This unit receives children receiving specialised medical care or surgical operations which are not (or are no longer) carried out in this country up to now. Several tens of thousands of children are concerned. Every year, it welcomes several international medical and surgical missions and also provides an opportu-nity for Congolese medical teams to carry out some operations independently.

Since 2003, 22 medical and surgical, cardiac and urological missions have already been carried out by Chaîne de l’Espoir – Belgium and D.R. Congo at the Ngaliema Clinic and at the UNIKIN University Hospital

The Ngaliema Clinic in Kinshasa

Index


53

in Kinshasa. In addition to the care provided to chil-dren suffering from serious pathologies, the purpose of these missions is to train a Congolese multidisciplinary team through a North-South transfer of technologies; 96 child cardiac sufferers and 27 children suffering from a malformation of the pelvis minor have already been operated since the missions began and 847 cardiology consultations were conducted.

The building of the ward that will house this medical and surgical unit has started and is funded by the Congolese government which responded positively to the advocacy work that all the partners had been conducting for several years.

CHIRPA asbl defined an intervention programme complementary to the implementation of this project, which emphasises five priorities:

�� improving the training of the Congolese technical, medical and paramedical staff involved in the project (co-financing by Belgian cooperation – request currently being assessed);

�� upgrading the technical capacity of the Ngaliema Clinic (financing by French cooperation – opera-tional start scheduled for November 2013 – and own capital of CHIRPA asbl);

�� making the technical and health environment of the infrastructure secure (financing by French cooperation);

�� improving skills and management practices at the clinic (financing by French and Belgian coop-eration);

�� facilitating access to specialised care (urology and cardiology initially) for the greatest number of children, particularly for the very poor (mixed financing).

The street children fortnight

With other organisations, RAWBANK supported the Street Children Fortnight organised in November 2013 by the Network of education workers for street children and teenagers (Réseau des Educateurs des Enfants et Jeunes de la Rue - REEJER) and by the Team of international organisations for the protection of children from broken families (Collectif des Organisa-tions Internationales pour la Protection des Enfants en Rupture Familiale - COPERF) in the Kinshasa urban area.

These street kids are often referred to as “Shégués” and there are over 20,000 of them in Kinshasa.

Several activities were organised from 15 to 30 November: debates, open-door days in fifty or so reception centres, screenings, a day of reflection bringing together the 24 mayors of the capital and the 5 presidents sitting at the juvenile courts, a dinner for ambassadors, a symposium, a round table, etc. There was also a gathering of the 67 district leaders of the municipalities of Masina and Kinbanseke where the aim was to raise awareness of child protection issues.

The purpose of these missions is the empowering of a Congolese multidisciplinary team.

Index


54

The Mangroves Marine Reserve

RAWBANK is involved in the project of support for conservation and tourist activities at the Mangroves Marine Reserve.

The Congolese Nature Conservation Institute (ICCN) clearly expressed its resolve to preserve the security of this ecotone1 unique in the DRC and intends to assist this project by seeking significant financial backing. Major private companies are beginning to commit to this nature conservation undertaking in the DRC.

This fortunate situation should receive further encour-agement from the government authorities, particularly those involved in environmental conservation.

On the whole, considerable efforts are made concerning the fight against threats summarised in four points: invasion of the park through land spoliation, deforest-ation, pollution and poaching. Concerning the latter

point, many patrols were able to be successfully organised in 2013 thanks to financial support from RAWBANK.

For this purpose, many measures have been taken and shall be implemented in strict compliance with the relevant laws. Furthermore, ongoing efforts must be made to spread information among the population regarding these provisions concerning nature conser-vation legislation and to provide a reminder of the commitments of the DRC at international level.

Springtime of the arts

On 7 June, RAWBANK organised an outstanding artistic day at the Théâtre de Verdure, Mont Ngaliema, in Kinshasa.

1. Ecological transition area between two ecosystems

Index


55

On the programme, in front of an audience of a thousand or so persons: a demonstration by dancers and musicians from the Super Mbonda folk group, a performance by the association Jeunesse 2000, the screening of the report on the Kimbanguist Symphony Orchestra in Monaco, the performances by the String Quartet in Monaco, selections from the Kimbanguist Symphony Orchestra including a concerto with the violoncellist Audibert, professor at the Rainier III of Monaco music academy.

This event was enhanced by the presence of Her Royal Highness the Princess of Hanover.

At the Romeo Golf centre in Kinshasa, guests at the welcome cocktail evening were entertained by the Super Mbonda group and, about 11 p.m., the evening came to a close with a performance by the ballet Kiesse Na Kiesse. This prestige evening was also enhanced by the presence of Her Royal Highness the Princess of Hanover.

The Rawji Foundation

The RAWJI Foundation is an apolitical, nongovern-mental and non-confessional charitable institution. It was officially established in Kinshasa on 4 December 2004 under Order No. 004/2001 of the Act of 20 July 2001 relating to non-profit associations and charitable institutions.

The co-founders are Messrs Mushtaque RAWJI, Mazhar RAWJI, Zahir RAWJI, Sirazali H. HEMRAJ, Aslam RAWJI and Murtaza RAWJI.

The aim of the Foundation is to contribute towards the training of young Congolese and to promote development in the DRC, in particular by:

�� establishing schools,

�� establishing hospitals,

�� establishing leisure centres,

�� establishing radio and television stations,

�� establishing old people’s homes,

�� developing sources of drinking water,

�� taking responsibility for students by providing study grants,

�� providing school assistance to the children of the employees of the RAWJI Group.

The resources of the Foundation are provided by the co-founders, State subsidies, benefactor organisa-tions, donations and legacies together with voluntary contributions.

Welcome to H.R.H. the Princess of Hanover

Index

07FINANCIAL

REPORT

p58_ The 2013 / 2012 balance sheets compared

p60_ The 2013 / 2012 income statement compared

p61_ Changes in equity in 2013

p62_ Cash flow tables 2013 / 2012

p63_ Auditor’s reports on accounts

p64_ Notes on the financial statements

In the new Rawbank Academy building opened in 2014, the bank trains financiers who will

contribute to the future of the DRC.

Index


58

BALANCE SHEET

BALANCE SHEET AS AT 31 DECEMBER 2013 AND 2012(Expressed in thousands of CDF)

ASSETS Note 31/12/2013 31/12/2012

Treasury and interbank operations

Cash and balances with Central Bank of Congo 4 136,442,032 110,925,579

Balances with other banks 5 153,183,931 206,305,494

Treasury bills 6 38,056,000 11,606,331

327,681,963 328,837,404

Operations with customers

Bills receivable 7 27,550,947 7,309,324

Loans and advances 8 238,590,988 200,600,084

266,141,935 207,909,408

Other assets

Prepaid expenses and others 9 20,747,519 25,748,991

Sundry debtors 10 8,355,908 4,051,362

29,103,427 29,800,353

Fixed assets

Net fixed assets 11 44,399,847 38,969,075

44,399,847 38,969,075

TOTAL ASSETS 667,327,172 605,516,240

OFF BALANCE SHEET

Commitments engaged 35 81,097,561 96,938,204

Commitments received 36 245,911,875 199,391,453

Forward exchange operations 37 36,325,000 36,025,000

Internal commitments 38 465,000 7,305,064

TOTAL OFF BALANCE SHEET 363,799,436 339,659,721

Notes 1 to 38 are an integral part of these financial statements.

Index

BALANCE SHEET AS AT 31 DECEMBER 2013 AND 2012(Expressed in thousands of CDF)

LIABILITES Note 31/12/2013 31/12/2012

CURRENT LIABILITES

Treasury and interbank operations

Due to Central Bank 1,799,873 -

Banks and other financial institutions 12 2,184,488 5,018,222

3,984,361 5,018,222

Operations with customers

Current and savings accounts 13 464,266,800 421,925,374

Term deposits 14 47,287,934 26,646,453

511,554,734 448,571,827

Sundry creditors and other liabilities

Accruals and other liabilities 15 23,227,391 31,260,363

Sundry creditors 16 28,906,433 29,268,533

52,133,824 60,528,896

NON CURRENT LIABILITES

Equity

Share capital 17 53,167,598 46,515,068

Legal reserves 2,700,622 1,929,472

Retained earnings - -

Profit for the year 5,164,384 7,391,700

Revaluation reserve 8,251,501 8,108,679

69,284,105 63,944,919

General provision 18 8,750,148 4,917,876

Other non-current liabilities

Subordinated loan 19 9,200,000 9,050,000

Long term loan - Proparco 20 9,200,000 9,050,000

Long term loan - IFC 21 3,220,000 4,434,500

21,620,000 22,534,500

99,654,253 91,397,295

TOTAL LIABILITIES 667,327,172 605,516,240



59 Index

INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2013 AND 2012(Expressed in thousands of CDF)

Note 31/12/2013 31/12/2012

Income from treasury and interbank operations 22 1,097,526 2,544,141

Income from operations with customers 23 36,686,776 30,814,536

Expenses on treasury and interbank operations 24 (1,109,735) (885,183)

Expenses on operations with customers 25 (4,316,145) (2,965,688)

Intermediation margin 32,358,422 29,507,806

Income from sundry bank operations 26 27,428,220 25,211,919

Expenses on sundry bank operations (1,505,429) (1,129,362)

Gross financial margin 58,281,213 53,590,363

Other income 27 6,175,547 3,361,697

General and administrative expenses 28 (29,304,797) (24,823,219)

Staff expenses 29 (8,553,001) (6,782,366)

Taxes (1,139,841) (1,124,283)

Other operating expenses 30 (1,810,615) (1,457,137)

Operating profit before depreciation and amortization

23,648,506 22,765,055

Depreciation (5,529,569) (4,467,025)

Write-back of provisions 31 10,514,088 9,403,298

Operating profit before tax and exceptional items 28,633,025 27,701,328

Provisions for loans and others 32 (15,165,749) (13,664,256)

Exceptional items 33 (4,188,423) (3,148,959)

Profit before tax 9,278,853 10,888,113

Income tax 34 (4,114,469) (3,496,413)

PROFIT FOR THE YEAR 5,164,384 7,391,700



60 Index

STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2013 AND 2012(Expressed in thousands of CDF)

MOVEMENTS DURING THE YEAR

Balance at 01/01/2013 �Increase �Decrease Forex

differenceBalance at

31/12/2013

Share capital 46,515,068 6,652,530 - - 53,167,598

Legal reserves 1,929,472 739,170 - 31,980 2,700,622

Profit transfer to retained earnings

- - - - -

Profit for the period 7,391,700 5,164,384 (7,391,700) - 5,164,384

Revaluation reserve 8,108,679 142,822 - - 8,251,501

63,944,919 12,698,906 (7,391,700) 31,980 69,284,105


61 Index

CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2013 AND 2012(Expressed in thousands of CDF)

31/12/2013 31/12/2012

Operating activities

Operating income 70,549,748 61,932,293

Operating expenses (39,186,562) (35,533,831)

Deposits/ withdrawal by banks and financial institutions (1,272,075) (6,953,640)

Loans and advances/ Repayment of loans and advances extended to customers

38,894,392 (76,131,708)

Deposits/ withdrawal by customers 62,982,906 81,328,988

Amounts paid to personnel and sundry creditors (8,553,001) (6,782,366)

Other net cash flow from operating activities (107,903,203) 8,013,818

Income tax (4,114,469) (3,496,413)

Net cash flow from operating activities 11,397,736 22,377,141

Investing activities

Adjustments (902,075)

Acquisitions/ Disposals (11,638,677) (16,647,421)

Net cash flow from investing activities (11,638,677) (17,549,496)

Financing activities

Increase of share capital - 27,270,016

Long term loans - 7,856,391

Loan repayment (914,500) -

Net cash flow from financing activities (914,500) 35,126,407

Increase in cash and cash equivalents (1,155,441) 39,954,052

Opening balance of cash and cash equivalents 328,837,404 288,883,352

Closing balance of cash and cash equivalents 327,681,963 328,837,404


62 Index


63

ACCOUNTANTS’ REPORT ON FINANCIAL STATEMENTS AS AT 31 DECEMBER 2013

1. MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of these financial statements in accord-ance with Generally Accepted Accounting Principles in the Democratic Republic of Congo for the banking sector, supplemented by the requirements of the Central Bank of Congo, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

2. AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the finan-cial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of

the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

3. OPINION

In our opinion, the financial statements present fairly, in all material respects, the financial position of RAWBANK s.a.r.l. as at 31 December 2013, and its financial performance and its cash flows for the year then ended in accordance with Generally Accepted Accounting Principles in the Democratic Republic of Congo for the banking sector, supplemented by the requirements of the Central Bank of Congo.

14 March 2014, PricewaterhouseCoopers Democratic Republic of Congo

We have audited the accompanying financial statements of RAWBANK s.a.r.l., which comprise the statement of financial position as at 31 December 2013, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

This is a free translation into English language of the statutory auditors’ report issued in the French language and is provided solely for the convenience of English speaking readers. This report should be read in conjunction with, and construed in accordance with, Congolese law and professional auditing standards applicable in the Democratic Republic of Congo.

Index


64

NOTES ON THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2013

1. ACTIVITIES

RAWBANK, a public limited liability company, was established following the authorization provided by the Presidential Decree n° 040/2001 of 8 August 2001.

The Bank was incorporated in accordance with provisions of the Congolese Banking Law n°72/004 of 14 January 1972 as amended by Law n°003/2002 of 2 February 2002.

The Bank was granted by the government decision 003 of 31 December 2001 some tax exemptions under the Congolese Investment Law. Thus the Bank has enjoyed a corporate tax holiday up to the tax year 2004. This exemption was extended in 2005 under the terms of Interministerial decrees n° 029/CAB/ MIN/PLAN/2003 and n° 027/CAB/MIN/FIN/2003 dated 22nd March 2003 approving additional investments made by the bank. In 2012, the exemption relating to a part of the taxable income was notified by Direction Générale des Impôts letter dated 22 February 2013.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1. Basis of preparation of financial statements

The financial statements are prepared, except for the fixed assets revaluation, under the historical convention and in accordance with Generally Accepted Accounting Principles in the Democratic Republic of Congo and applicable regulations issued by the Central Bank of Congo.

2.2. Foreign currency transactions

Transactions denominated in foreign currencies are translated into local currency at the exchange rates prevailing within the banking system at the date of their occurrence.

Exchange gains or losses arising from transactions settlements during the year are recorded in the income statement.

Assets and liabilities in foreign currencies are translated into local currency at the year-end exchange rates.

Gains and losses from the revaluation of the exchange position are recognized in the income statement.

Index


65

2.3. Fixed assets

Fixed assets are accounted for in accordance with the historical cost convention, as modified by the revaluation of fixed assets law n° 89/017 of 18 February 1989 in the Democratic Republic of Congo allowing companies to revalue their fixed assets on the basis of legal coefficients published by the Ministry of Finance at the end of each accounting period.

Depreciation is calculated on the basis of the straight-line method to write off the book value of each asset over their estimated useful lives as follows:

USEFUL LIVES (Year)

Buildings 20

Office equipments and furniture 10

Vehicles 4

Computer equipments 5

2.4. Provision for capital maintenance

According to article 3 of Decree n° 04/049 of 20 May 2004 amending the Ordinance-law n° 77-332 of 20 November 1977, which provides the detailed rules for the application of Congolese Generally Accepted Accounting Principles, the banks are authorized to constitute a provision called “Provision for capital maintenance”. The purpose of this provision is to preserve the value of the share capital in terms of a hard currency.

The provision to be set up for a given period is based on the move of the exchange rate and the equivalent amount of the share capital in terms of hard currency.

This provision represents the difference between the value of the share of capital, in terms of hard currency translated in CDF, at the relevant closing and the opening exchange rates after taking into account the fixed assets revaluation reserve.

In the event of increase of the share capital during the year, the exchange rate to be taken into account is the one related to the date of that increase and the closing exchange rate of the period.

This provision is tax deductible and can be used only for an increase of the share capital under the following conditions:

�� the provision should be certified by an auditor;

�� the provision must be declared in the same conditions as that of taxable corporate income.

Index


66

2.5. Accounting of shareholders fund in foreign currencies

The Central Bank of Congo has authorized banks to account for in a hard currency the provision for capital maintenance and their retained earnings. The related exchange difference is recognized in the current year profit and loss account.

3. YEAR-END EXCHANGE RATES

Exchange rates as at 31 December 2013 and 2012 were as follows:

31/12/2013 CDF

31/12/2012 CDF

1 EURO 1,238.8600 1,175.4263

1 USD 920.0000 905.0000

4. CASH AND BALANCES WITH CENTRAL BANK OF CONGO

31/12/2013 CDF

31/12/2012 CDF

Cash in foreign currencies 81,654,805 79,282,098

Cash in local currency 11,790,482 9,296,748

Central Bank of Congo 42,996,745 22,346,733

136,442,032 110,925,579

5. BALANCES WITH OTHER BANKS

31/12/2013 CDF

31/12/2012 CDF

Deposit accounts in foreign currencies (a) 63,759,793 108,872,615

Ordinary accounts in foreign currencies (b) 85,722,717 92,685,552

Cash collateral for letter of credits (c) 1,837,038 2,552,565

Cash collateral for guarantees (d) 1,187,140 2,083,311

Ordinary accounts with local banks 677,243 111,451

153,183,931 206,305,494

Index


67

(a) Deposit accounts represent the funds held with the correspondent banks viz USD 20 million with ICICI Bank, USD 13.70 million with ING Bank, USD 10 million with Standard Bank, USD 9.20 million and EUR 2 million with Byblos Bank, USD 5.10 million with Commerzbank, USD 5 million with Société Générale and USD 2 million with BCP Geneva.

(b) Ordinary accounts are mainly held with Habib American Bank New York, ING Bank, Société Générale, Standard Bank South Africa, Citibank London, Citibank New York, Bank of China, Commerzbank, Crédit Suisse and ICBC New York. These accounts are mainly held in USD and EURO with a total deposit of USD 79.23 million and EUR 8.42 million respectively.

(c) Cash collateral for letters of credit represent the funds held as security deposit for the letter of credit confirmed by the correspondent banks mainly with Bank of China of USD 0.76 million, Citibank New York of USD 0.73 million and Citibank London of EUR 0.3 million. (Note 15.b).

(d) Cash collateral guarantees represents mainly an amount of USD 1.03 million which is a guarantee for Visa Card operations.

6. TREASURY BILLS

31/12/2013 CDF

31/12/2012 CDF

Treasury bills Central Bank of Congo 20,116,000 -

US Government treasury bills 10,120,000 11,606,331

Obligations and other Instruments 7,820,000 -

38,056,000 11,606,331

7. BILLS RECEIVABLE

31/12/2013 CDF

31/12/2012 CDF

Commercial bills discountable 26,032,672 6,900,941

Bills discounted for collection 1,304,950 36,663

Commercial bills discountable long term 167,613 164,880

Commercial bills discountable medium term 45,712 206,840

27,550,947 7,309,324

Index


68

8. LOANS AND ADVANCES

31/12/2013 CDF

31/12/2012 CDF

Medium term loans (a) 39,997,455 64,283,149

Loans and advances to companies (b) 75,302,814 56,376,188

Advances to public (non-financial) organizations (c) 69,397,603 44,981,062

Other loans (d) 53,643,968 33,530,611

Loans and advances to individual 4,676,846 4,953,284

Provision for doubtful debts (4,427,698) (3,524,210)

238,590,988 200,600,084

(a) Medium term loans include advances to different customers in local currency of CDF 1.56 billion and in foreign currencies of USD 41.90 million.

(b) Loans and advances to companies include mainly overdrafts in local currency of CDF 4.11 billion and in foreign currencies of CDF 71 billion (mainly for USD 77 million).

(c) Advances to public (Non-financial) organizations include short term and medium term loans in local currency of CDF 9.19 billion and in foreign currencies of CDF 37 billion (mainly for USD 40 million).

(d) Other loans include mainly term loans extended to customers (public financial institutions) of CDF 36 billion, staff loans of CDF 3.84 billion, loans due not paid, doubtful loans and contentious loans of CDF 5.30 billion.

Index


69

9. PREPAID EXPENSES AND OTHERS

31/12/2013 CDF

31/12/2012 CDF

Suspense accounts 6,235,536 7,430,634

Prepayment (a) 3,334,689 11,905,029

Stationery and others (b) 7,283,292 4,063,260

Miscellaneous expenses to be written off (c) 2,971,040 2,057,147

Others 922,962 292,921

20,747,519 25,748,991

(a) Prepayment mainly represents in debit, expenses engaged for various works in the branches being launched for CDF 3.7 billion, prepayment on equipment and material purchases for CDF 1.7 billion. In credit, it has been recorded an advance payment of CDF 1.84 billion made by the Government as a reimbursement of the purchase of the LAC building, object of dispute.

(b) Stationery and others represents the stock of secured preprinted forms and bank cards for CDF 1.44 billion and stock of sundry furniture for CDF 5.84 billion.

(c) Miscellaneous expenses to be written off, includes mainly expenses on the renovation of branches’ buildings to be amortized over 5 years.

10. SUNDRY DEBTORS

31/12/2013 CDF

31/12/2012 CDF

Cheques and bills sent for collection (a) 6,762,316 3,268,506

Correspondents clients bills export 210,357 429,735

Amount recoverable 2,844 40,735

Others 1,380,391 312,386

8,355,908 4,051,362

(a) Cheques and bills sent for collection on behalf of customers are accounted for in their accounts after successful completion of each transaction. They are thus recorded in “Amounts recoverable”. (Note 16d)

Index


70

11. FIXED ASSETS

Costs:

Land and building

CDFVehicles

CDF

IT equipments

CDF

Furniture and equipments

CDF

Fixture and fittings

CDF

Work-in-progress

CDFTotal

CDF

As at 1st January 2013 25,314,645 4,053,793 10,728,567 12,836,167 456,637 - 53,389,809

Acquisitions 4,812,692 1,907,188 - 5,756,272 - 846 12,476,998

Transfers - (806,307) - (32,013) - - (838,320)

Regularization - - (956,972) - (456,637) - (1,413,609)

As at 31 Dec. 2013 30,127,337 5,154,674 9,771,595 18,560,426 - 846 63,614,878

Accumulated depreciation

As at 1st January 2013 2,282,597 2,646,336 4,551,463 4,940,338 - - 14,420,734

Depreciation 920,815 933,805 936,860 2,738,089 - - 5,529,569

Regularization - (756,564) - (30,795) - - (787,359)

Revaluation - 50,049 - 2,037 - - 52,086

As at 31 Dec. 2013 3,203,412 2,873,626 5,488,323 7,649,669 - - 19,215,031

Net value

As at 31 Dec. 2013 26,923,925 2,281,047 4,283,272 10,910,756 - 846 44,399,847

As at 31 Dec. 2012 23,032,048 1,407,457 6,177,104 7,895,829 456,637 - 38,969,075

12. BANKS AND OTHER FINANCIAL INSTITUTIONS

31/12/2013 CDF

31/12/2012 CDF

Other financial institutions (a) 1,938,525 2,591,265

Banks (b) 245,963 2,426,957

2,184,488 5,018,222

(a) Other financial institutions includes mainly the balance of Standard Bank DRC in Rawbank of CDF 1.31 billion (USD 1.43 million).

(b) Banks includes mainly the balance of Attijariwafa Bank Paris of CDF 181 million (EUR 0.15 million).

Index


71

13. CURRENT AND SAVINGS ACCOUNTS

31/12/2013 CDF

31/12/2012 CDF

Current accounts:

Companies (a) 209,399,614 190,066,214

Individuals (b) 123,743,900 118,718,564

Public organizations 41,661,860 43,367,934

Savings accounts:

Fidelity accounts 84,496,780 66,282,450

Academia accounts 4,837,078 3,490,212

Advantages accounts 121,037 -

Renaissance accounts 6,531 -

464,266,800 421,925,374

(a) Current accounts of companies represent mainly deposits in local currency of CDF 35.92 billion and in foreign currencies equivalent of CDF 171.08 billion of which deposits in USD amounts to CDF 163.41 billion (USD 177.62 million).

(b) Current accounts of individuals include mainly deposits in local currency of CDF 12.59 billion and in foreign currencies equivalent of CDF 111.04 billion of which deposits in USD amounting to CDF 105.20 billion (USD 114.34 million).

14. TERM DEPOSITS

31/12/2013 CDF

31/12/2012 CDF

Up to 60 days 679,000 99,730

3 months 214,818 770,272

6 months 4,537,255 4,843,885

One year and above 38,980,414 20,828,941

Renaissance with 2 years 236,443 -

Renaissance with 3 years 461 -

Renaissance with 5 years 2,053,480 46,798

Renaissance with 10 years 586,063 56,827

47,287,934 26,646,453

Index


72

15. ACCRUALS AND OTHER LIABILITIES

31/12/2013 CDF

31/12/2012 CDF

Suspense operations (a) 10,171,341 8,087,690

Collateral deposit for letter of credit (b) 7,946,199 17,944,611

Suspense accounts - - 1,363,053

Collateral deposit for loans granted (c) 2,934,600 2,667,849

Others 2,175,251 1,197,160

23,227,391 31,260,363

a) Suspense operations includes mainly the provision of income tax of CDF 4.20 billion, loans received from Central Bank of Congo for the public servants payroll of CDF 3.90 billion and Central Bank of Congo’s control fees of CDF 2.72 billion.

b) Collateral deposit for letter of credit represents the cash collateral received from the clients against the letter of credits and guarantees in foreign currencies issued by the bank in force as at 31 December 2013 (Note 5c).

c) Collateral deposit for loans granted include collateral received from customers’ accounts for fixed term loans extended by the bank (mainly Office Congolais de Contrôle of USD 2.8 billion).

Index


73

16. SUNDRY CREDITORS

31/12/2013 CDF

31/12/2012 CDF

OCC/BIVAC provisions 7,869,401 8,615,422

Amounts payable to tax, customs and administrative entities

(a) 6,916,364 7,642,901

Collateral deposits by card holders (b) 6,232,609 6,301,298

Cheques sent for collection (c) 5,929,092 1,603,382

Bills for collection (d) 1,209,378 1,967,627

Public servants payroll 463,613 2,552,133

Others 285,976 585,770

28,906,433 29,268,533

a) Amounts payable to tax, customs and administrative entities are detailed as follows:

31/12/2013 CDF

31/12/2012 CDF

Amount payable to DGDA 5,188,133 4,662,186

Amount payable to DGI 490,949 2,651,116

Amount payable to DGRAD 150,990 -

Amount payable to DGRK 22,170 3,143

Amount payable to DRKAT 534,885 207,960

Others 529,237 118,496

6,916,364 7,642,901

b) Collateral deposits by card holders represents guarantee deposits collected from the card holders for their MasterCard operations.

c) Cheques sent for collection represents other local bank cheques presented for payment.

d) As of 31 December 2013, bills for collection represents mainly obligations against cheques and other documents received for collection (Note 10a).

Index


74

17. SHARE CAPITAL

The Bank’s share capital consists of 700 shares without description of value from which 694 are held by RAWHOLDING SA, a company incorporated under Luxembourg law, following the acquisition of shares dated 14 September 2002 approved first by the Central Bank of Congo on 5 August 2002.

As at 31 December 2013, the share capital of the bank is held as follows:

Montant CDF

Initial paid up capital 1,208,786

Fixed assets revaluation surplus prior to 2009 441,520

Incorporation of accumulated profits up to 2006 2,187,379

Provision for capital maintenance for the year 2004 232,160

Incorporation of profit for the year 2007 996,161

Additional capital brought in as per Extraordinary Meeting of Shareholders, held on 24 October 2008

2,929,822


Incorporation of profit for the year 2008 1,217,650


Increase of share capital in September 2010 4,470,084

Increase of share capital in July 2011 4,577,115

Actualization 2011 (1,291)

Additional capital brought in as per Extraordinary Meeting of Shareholders, held on 28 January 2012

5,504,477




Additional capital brought in as per Extraordinary Meeting of Shareholders, held on 28 December 2012

9,050,000


Actualization 133,136

Capital as at 31 December 2013 53,167,598

Index


75

18. GENERAL PROVISION

General provision includes provisions on performing loans of CDF 6.91 billion accounted for in accordance with the Central Bank of Congo regulation n°16 and a provision of CDF 1.84 million relating to expected losses following inadequate processing of procurement and inventories transactions.

19. SUBORDINATED LOAN

It relates to an amount of USD 10 million received from B. Systems and Technology (BST) repayable as per bank’s financial circumstances.

20. LONG TERM LOAN - PROPARCO

This represents the loan received from Proparco of USD 10 million repayable until 31 January 2020. This loan is repayable in two installments per year/half yearly 31 January and 31 July of each year, with the initial repayable date of 31 January 2015.

21. LONG TERM LOAN - IFCThis represents the balance to be paid (USD 3.5 million) on loan received from the International Finance Corporation to the tune of USD 7 million. This loan is repayable half-yearly.

22. INCOME FROM TREASURY AND INTERBANK OPERATIONS

31/12/2013 CDF

31/12/2012 CDF

Interest on treasury bills 423,664 1,569,963

Interest on loans and term deposit 622,132 933,802

Interest on call money 336 4,028

Interest on banks accounts 51,394 36,348

1,097,526 2,544,141

Index


76

23. INCOME FROM OPERATIONS WITH CUSTOMERS

2013 CDF

2012 CDF

Interest on short term loans 15,913,860 13,953,273

Interest on medium term loans 12,352,926 9,594,912

Commission on overdrafts 6,127,821 4,853,705

Income on tax, customs and administrative entities payments 1,418,187 1,688,113

Letter of credit commission 573,822 335,531

Others 300,160 389,002

36,686,776 30,814,536

24. EXPENSES ON TREASURY AND INTERBANK OPERATIONS

2013 CDF

2012 CDF

Bank charges on correspondent bank accounts 887,910 525,198

Correspondent bank charges on letters of credit 202,491 219,443

Central Bank treasury charges 4 -

Interest paid on call money - 15,415

Others 19,330 125,127

1,109,735 885,183

25. EXPENSES ON OPERATIONS WITH CUSTOMERS

2013 CDF

2012 CDF

Interest on current accounts 2,273,193 1,763,300

Interest on term deposits 1,305,835 686,167

Interest on renaissance accounts 55,195 375

Credit card charges 678,082 515,846

Interest on customers treasury bills 3,840 -

4,316,145 2,965,688

Index


77

26. INCOME FROM SUNDRY BANK OPERATIONS

2013 CDF

2012 CDF

Commission on transfers 5,140,545 5,658,745

Ledger fees 4,245,083 3,652,941

Commission on exchange operations 2,833,520 2,330,502

Commission on transfers other places 2,478,123 2,590,866

Commission on transfers other banks 2,749,669 3,261,446

Commission on guarantees 1,398,413 1,265,936

Commission licences validation 328,036 360,284

Income from Card 250,362 1,439,958

Income from ATM/POS operations 5,569,676 3,950,250

Others 2,434,793 700,991

27,428,220 25,211,919

27. OTHER INCOME

2013 CDF

2012 CDF

MoneyGram commission 1,827,409 1,579,490

Sales proceeds of Central Bank and Rawbank stationeries 1,265,520 1,049,292

Income from public servant payroll - -

Income on SMS banking 556,045 457,204

Others 2,526,573 275,711

6,175,547 3,361,697

Index


78

28. GENERAL AND ADMINISTRATIVE EXPENSES

2013 CDF

2012 CDF

Advertising expenses 3,386,985 3,588,437

Outsourcing charges 2,761,034 2,240,115

Travel expenses 2,730,646 1,939,862

Printing and stationery 766,485 1,945,040

Telecommunication 1,901,153 1,696,286

Central Bank control fees 2,716,637 1,900,742

Postage 2,539,145 1,639,691

Building-repairs and maintenance 2,694,759 1,349,923

Insurance 572,550 1,115,018

Rent 1,598,748 1,288,868

Security 1,274,014 878,573

Computer stationery and maintenance 1,233,268 776,122

Legal and consultants expenses 703,486 433,941

Fuel-Vehicle and generators 1,237,480 845,895

Water and Electricity 510,385 493,265

Representation and reception 385,051 356,893

Documentation fees 797,915 560,981

Vehicle-repairs and maintenance 349,004 347,216

Inspection, audit and recovery 31,135 82,296

Donations 243,008 128,591

Central bank clearing fees 369,270 266,869

Others 502,639 948,595

29,304,797 24,823,219

29. STAFF EXPENSES

2013 CDF

2012 CDF

Salaries 4,000,452 3,330,622

Transport allowance 2,820,921 2,103,007

Medical expenses 702,004 513,064

Training expenses 441,875 413,218

Others 587,749 422,455

8,553,001 6,782,366

Index


79

30. OTHER OPERATING EXPENSES

2013 CDF

2012 CDF

Interest on BST loan 1,112,235 1,096,150

Fee and interest paid to IFC 141,878 194,004

File charges paid to EIB - 14,389

Fees and interest paid to Proparco 556,502 152,594

1,810,615 1,457,137

31. WRITE-BACK OF PROVISIONS

2013 CDF

2012 CDF

Write-back of provisions for doubtful loans 5,577,916 4,901,905

Write-back of depreciated loans 18,664 220,797

Write-back of provisions on standard loans 4,917,508 4,280,596

10,514,088 9,403,298

32. PROVISIONS FOR LOANS AND OTHERS

2013 CDF

2012 CDF

General provisions on performing loans 6,876,694 7,273,485

Provisions for non-performing loans 6,449,055 6,390,771

Provisions for losses 1,840,000 -

15,165,749 13,664,256

Index


80

33. EXCEPTIONAL ITEMS

2013 CDF

2012 CDF

Unpaid credit written off - -

Sundry operations losses 994,279 1,204,913

Fines and penalties 1,972,469 1,138,081

Interest and ledger fees written off 1,299,746 805,965

Central Bank penalties - -

Capital gain (78,071) -

Others - -

4,188,423 3,148,959

34. CONTINGENT LIABILITY

The management is confident that the income tax provision of CDF 1.05 billion for the year 2013 takes into accounts all provisions of fiscal law. Nevertheless, in some cases, the interpretations of these provisions by the Tax Authorities could diverge.

35. COMMITMENTS ENGAGED

31/12/2013 CDF

31/12/2012 CDF

Letter of credits - Confirmed 4,699,526 5,353,156

Acceptances (Mastercard) 13,944,435 7,772,064

Letter of credits - issued 7,222,901 13,682,240

Unused credits facilities 37,162,410 42,206,596

Guarantees - Issued 18,068,106 26,847,475

Others 183 1,076,673

81,097,561 96,938,204

Index


81

36. COMMITMENTS RECEIVED

31/12/2013 CDF

31/12/2012 CDF

Mortgage and collateral securities 244,588,734 198,519,219

Interest and fees receivable 1,323,141 872,234

245,911,875 199,391,453

37. FORWARD EXCHANGE OPERATIONS

31/12/2013 CDF

31/12/2012 CDF

Local currencies payable 17,925,000 17,925,000

Foreign currencies receivable 18,400,000 18,100,000

36,325,000 36,025,000

38. INTERNAL COMMITMENTS

31/12/2013 CDF

31/12/2012 CDF

Treasury bills subscribed by customers - -

Treasury bills subscribed by customers guarantee 465,000 412,000

Stationery and others - 6,893,064

465,000 7,305,064

Index

08RAWBANK NETWORKS

p84_ Correspondent bank network

p84_ The Brussels representation office

p85_ The branch network in DRC

Matadi+ 1 counterMoanda

Boma

Kinshasa13 branches + 7 counters

Index

Kisangani

Bukavu

Beni

Watsa + 1 counter

Butembo

Goma

Kindu

Bunia

Lubumbashi6 branches + 2 counters

Fungurume

KolweziLikasi

Kasumbalesa

Kakanda

Sakania


84

RAWBANK NETWORKS

CORRESPONDENT BANK NETWORK

USA

�� Citibank NA, New York

�� Habib American Bank, New York

�� Industrial and Commercial Bank of China (ICBC) New York

�� Société Générale, New York

EUROPE

�� AktifYatirimBankasi

�� Attijariwaffa Bank (Paris)

�� Byblos Bank Europe SA, Brussels

�� Citibank NA, London

�� Commerzbank AG, Frankfurt am Main

�� FBN Bank UK Ltd (Paris)

�� ING Belgium, Brussels

�� KBC Bank NV, Brussels

�� Société Générale, Paris

AFRICA

�� Absa Bank Ltd, Johannesburg

�� Bank of China (Johannesburg)

�� Diamond Trust Bank (Uganda)

�� First National Bank (Johannesburg)

�� Mauritius Commercial Bank

�� The Standard Bank of South Africa Ltd

CHINA

�� Bank of China, Beijing�� ICBC

THE BRUSSELS REPRESENTATION OFFICE

Bastion Tower

Place du Champs de Mars (21st floor) B.1050 Brussels - Belgium

Manager: Christian [email protected] Tel.: +32 2 550 35 32Mobile: +32 478 82 29 11

The office is open Mondays to Fridays between 9 am and 5 pm and Saturdays between 9 am and 12 noon.

Index


85

THE BRANCH NETWORK IN THE DRC

REGISTERED OFFICE 3487, Bld du 30 Juin (Gombe) KINSHASA +243 81 98 32 000 +243 98 01 00 01

KINSHASA Regional Commercial Manager: Vishwanath (Vishy)

Kinshasa branches

30 Juin: 3487, Boulevard du 30 Juin (Gombe) Nicolas GROBELNY +243 82 4191 358 [email protected]

�� CEEC counter: 3989, Avenue de Cliniques C/GOMBE +243 81 20 32 109

�� Hasson et Frères counter: 2, avenue Citronniers C/GOMBE (behind Sozacom)

Couronne: 21, avenue Bandundu (Gombe) Samuel KABANGALA +243 81 71 51 036 [email protected]

�� Minafet counter: 1, Place de l’Indépendance C/GOMBE +243 81 71 51 036

�� Fleuve Hotel counter: 119, Colonel TSHATSHI (Ex. Imm. CCIC) C/GOMBE +243 82 41 91 358

Hôtel de Ville: Av. du Marché N°09 C/GOMBE Serge DJAMANY LOBANDO +243 970034453 [email protected]

Kinsuka: 1, Av. de l’école, Commune Ngaliema Manguy MAYAKA +243 992001686 [email protected]

Kintambo: 121, Av. Jean Bolemba Q/ Babylone Commune de Kintambo Mamie-Florence LEMBA +243 825652487 [email protected]

Limete: 7e Rue, Bld Lumumba Andy TSHIBWABWA +243 81 88 70 017 [email protected]

N’Djili: 28, Avenue Mazi / Bld Lumumba – Kinshasa C/Njili Clarisse NDANGI +243 817109734 [email protected]

�� KIN-AERO counter: Aéroport International de N’Djili C/MASINA +243 81 71 09 734

Ngaba: 2, Av. de la Foire, C/LEMBA Judith FATAKI +243 81 98 32 001 [email protected]

St Luc: avenue Nguma, Réf Eglise St Luc (Ngaliema) Lucie MPUTU +243 81 88 70 015 [email protected]

Index


86

�� Monishop counter: 14, Avenue KASA VUBU C/KINTAMBO +243 97 10 111 72

UPC: Croisement Avenues de la Libération et Victoire C/Lingwala Tanya BILE +243 99 80 15 924 [email protected]

UPN: 999, Av. L.D. Kabila (ex route de Matadi), C/Ngalima Rosalie MUNGA +243 81 71 59 008 [email protected]

Utex: 374, avenue Colonel Mundjiba(Ngaliema) Bernie MANGWELE +243 99 99 49 430 [email protected]

�� Shoprite counter: 11628, Avenue OUA C/KINTAMBO +243 82 13 39 303

Victoire: 01, Avenue Eyala – Kinshasa C/KasaVubu Blaise BASENGE +243 817109461 [email protected]

KATANGA Regional Commercial Manager: Didier TILMAN

Lubumbashi branches

Lubumbashi: 91, avenueSendwe Gabriel MALOBA +243 99 5239 101 [email protected]

�� Consulat counter: 84, avenue Sendwe C/LUMBUMBASHI +243 99 10 01 945

�� Luano counter: Aéroport de LUANO C/LUMBUMBASHI +243 97 00 11 838

Bel-Air: 1669, Ch. de Kasenga, Commune Kapemba Blanchard MATUVANGA MAYALA +243 99 100 41 87 [email protected]

DGI: 12, avenue Sendwe Marie-Hélène ILUNGA +243 99 100 41 86 [email protected]

Golf: 1, Avenue des Roches Joelle KABAYO +243 99 525 83 30 [email protected]

Kisanga: 598, route de Kasumbalesa Q/Kisanga C/Annexe croisement Kasumbalesa et Kipushi Mireille MONGA NGOIE +243 99 100 41 88 [email protected]

UNILU: rez de chaussée, Home 10, cité universitaire, Route Kassapa Jean-Hubert TSHIBAMBE ILUNGA +243 99 100 41 85 [email protected]

Katanga branches

Fungurume Concession TenkeFungurume Rica MUHIMA SADIKI +243 99 100 4184 [email protected]

Index


87

Kakanda Av. des Usines, Quartier Nsele, Cité Kakanda Henry MANGITUKA +243 99 80 15 903 [email protected]

Kasumbalesa DGDA Single Counter Site Jacques NGUDIA MUYYA +243 99 100 41 81 [email protected]

Kolwezi 58, avenue Kamba Irène KANIKI +243 99 523 9100 [email protected]

Likasi 27, Avenue LUMUMBA Marcel MWANJI KANDE +243 81 71 59002 [email protected]

Sakania N° 45 route KISHIBA SAKANIA-RDC, Eric CILUMBA NGELEKA +243 97 600 02 06 [email protected]

BAS-CONGO Regional Commercial Manager: Gancho KIPULU-BAYA

Bas-Congo branches

Matadi 13, avenue Major Vangu Florent MATUSU ZAU +243 81 29 47 387 [email protected]

Boma 34, Avenue Mankuntima Q/CODITRA, C/Nzadi (Centre-ville) Henri KILANDI +243 99200 1616 [email protected]

Moanda 4, avenue du 30 Juin Patricia BENGI MASENGA +243 99 80 15920 [email protected]

EAST Regional Commercial Manager: Hugues BOSALA

East branches

Goma 23/09, Avenue- Boulevard Kanyamuhanga Joseph HERI +243 99 861 13 24 [email protected]

Beni 8506, Q/Residentiel C/Bungulu Jignesh.Thaker +243 819068039 [email protected]

Bukavu 89, Avenue Patrice Emery Lumumba Rodrigues BIGIRINAMA +243 99 922 98 56 [email protected]

Bunia 5, Avenue Ituri, Q/ Lumumba Edouard EBOSIRI +243 99 89 16522 [email protected]

Index

WWW.RAWBANK.CD


88

�� MONGBWALU counter: Concession AGK Q. KILO-MOTO Cité de MONGBWALU District de l’ITURI +243 97 29 79 969 / +243 81 01 80 896

Butembo 9472, Av. Président de la République, Q/ Kambali, C/ Vulumba. Muleky KIPASA MBWALALA +243 97 10 111 69 [email protected]

Kindu Av. du 4 Janvier, C/Kasuku Constantin TSHIBASU +243 97 00 34 457 [email protected]

Kisangani 11, Avenue Victime de la Rébellion Olivier Tsasa Tsasa +243 81 318 88 37 [email protected]

�� UNIKIS counter: Université de Kisangani

Watsa Quartier résidentiel Cité de Watsa, District de haut Uélé Aimé ILUNGA KAFUTWA +243 971011150 [email protected]

Index

Published by: RAWBANK – BP 2499 – Kinshasa 1 Democratic Republic of Congo

Design and production: M&C.M sprl - www.mcmanagement.be

Graphics and layout: a collaboration between M&C.M and De Visu – www.devisu.com

Printed in July 2014. (Imprimerie Hayez)

Editing and photos: Marc-F. Everaert (M&C.M sprl) [email protected] with the kind collaboration of RAWBANK’s managers and executives.

RAWBANK SARL 3487, Boulevard du 30 juin

BP 2499 – Kinshasa 1 – RD CongoNRC KIN 52579

NAT. ID No.: 01-610-N39036TCentral Bank No.: 5100

Tel.: +243 998 32 0000 – Fax: +33 4 89 24 02 24SWIFT: RAWBCDKI

[email protected]

Index

WWW.RAWBANK.CD

26421_26137_RawBank_Rapport_annuel_2013_EN_cover_v01.indd 326421_26137_RawBank_Rapport_annuel_2013_EN_cover_v01.indd 3 31/07/14 14:1031/07/14 14:10

COME IN… - Rawbank | is my bank in Kinshasa which is scheduled to be inaugurated towards the...

Documents

Transcript of COME IN… - Rawbank | is my bank in Kinshasa which is scheduled to be inaugurated towards the...