June 2011 results

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June 2011 results

  1. 1. BancABC Half Year Financial Results 201117 August 2011
  2. 2. BancABC Half Year Financial Results 2011AGENDA• Highlights• Economic overview• Financial review• Operational overview• Strategy and outlook
  3. 3. BancABC Half Year Financial Results 2011HIGHLIGHTSBeki Moyo
  4. 4. Financial Highlights4 BancABC Half Year Financial Results 2011Total income increasedby 24 % to BWP311millionCost to income ratiodown to 72% from77% in prior yearOperating expenses upby 18%Operating profitincreased by 48% toBWP67 millionPre-tax profit up by84% to BWP63 millionAttributable profit toshareholders increasedby 33% to BWP37millionBasic earnings pershare improved by33% to 25.9 thebefrom 19.5 thebe in2010
  5. 5. Financial Highlights (cont’d)5 BancABC Half Year Financial Results 2011Balance sheet grewby 23% from BWP6billion in Dec 2010 toBWP7.4 billion(US$1.1 billion)Loans and advancesincreased by 31%from BWP3.1 billionin Dec 2010 to BWP4billionCustomer depositsgrew by 23% fromBWP4.9 billion in Dec2010 to BWP6 billionNet asset value pershare up fromBWP2.87 to BWP3.09Return on averageequity was 17%compared to 14% in2010
  6. 6. Operational Highlights6 BancABC Half Year Financial Results 2011Total retail branchesincreased to 21 asof now compared to13 in June 2010US $50 million lineof credit approvedby Afrexim boardDraw-down of IFCconvertible loan ofUS$13.5m on 13thMay 2011NPLs down from9.4% in June 2010to 5.5%
  7. 7. BancABC Half Year Financial Results 2011ECONOMIC OVERVIEWBeki Moyo
  8. 8. BancABC Half Year Financial Results 20118Economic OverviewMulti-speed global economic recovery continuing amidincreasing risksIncreased InflationHigh oil &food pricesRisingdemandpressures
  9. 9. BancABC Half Year Financial Results 2011Economic Overview9Multi-speed global economic recovery continuing amidincreasing risksNegative SurprisesDevastatingearthquake &Tsunami in JapanUnrest in theMENA region –war in LibyaDebt crisis inEurozone & US
  10. 10. BancABC Half Year Financial Results 201110Economic OverviewMulti-speed global economic recovery continuing amidincreasing risks•Economic growth somewhatsubdued•Unemployment remains high•Worries over debt sustainability &contagion effect
  11. 11. BancABC Half Year Financial Results 201111Economic OverviewMulti-speed global economic recovery continuing amidincreasing risks•Capital inflows have been strong•Currencies have appreciated•Strong signs of overheating
  12. 12. BancABC Half Year Financial Results 201112Economic OverviewMulti-speed global economic recovery continuing amidincreasing risks•Economic growth has been strong•High commodity prices a boon toregional countries•Inflation pressures building
  13. 13. BancABC Half Year Financial Results 2011Looming Financial Crisis due to IdenticalUS - EU Debt Challenges13Economic OverviewUS was downgraded by S&P from a top-notchAAA rating to AA+Fears of Eurozone debt crisis Spreading to Italy& Spain – threat stability of €Market jittery resulting in sell-off of risky assetsInvestors have been seeking refuge in safehavens – Gold, Swiss Franc, etc..Developments similar to the start of the 2008-2009 credit crisis
  14. 14. BancABC Half Year Financial Results 201114Economic OverviewGDP Growth by Region3.41.10.43.98.44.8-2024681009 10 11 12 09 10 11 12 09 10 11 12 09 10 11 12 09 10 11 12 09 10 11 12AdvancedEconomiesEuroAreaMENADevelopingAsiaSSAGlobalEconomyEconomicgrowthuneven acrossregions
  15. 15. BancABC Half Year Financial Results 201113.914.015.616.821.524.027.732.537.139.544.065.266.2103.4107.00 20 40 60 80 100 120PlatinumDiamond PriceNickelRiceCoalGoldOilAluminumSoyabeansCopperCoffee (arabica)Cotton (A-Index)PalladiumMaizeWheat%15Commodity Prices% Change Jun-10 to Jun-11
  16. 16. BancABC Half Year Financial Results 201116Economic Growth (%) & Size (USD m)Economic growth from crisis induced slowdown is underwayGrowth in most countries is fairly close to high levels of the mid-2000sBotswana15,644Tanzania23,739Uganda16,386Kenya35,787Zambia18,298Mozambique10,232Zimbabwe8,998Malawi5,637Namibia13,4712468104 5 6 7 8 9GDPGrowth2011(%)GDP Growth 2010 (%)Bubble Size= GDP Size in US$ m
  17. 17. BancABC Half Year Financial Results 201117Economic Overview - Inflation-10-505101520J-09F-09M-09A-09M-09J-09J-09A-09S-09O-09N-09D-09J-10F-10M-10A-10M-10J-10J-10A-10S-10O-10N-10D-10J-11F-11M-11A-11M-11J-11SAInternational foodprices have doubledFuel prices havesurgedInflation pressuresare elevated
  18. 18. BancABC Half Year Financial Results 201118GDP, Deposits & Credit Per Capita* As of Dec-1001,0002,0003,0004,0005,0006,0007,000Bots Moza Tanz Zamb ZimbGDP/Capita 7,689 512 551 1,182 516Deposits/Capita 3,515 161 150 274 179Credit/Capita 1,868 128 99 131 129US$GDP/CapitaDeposits/CapitaCredit/CapitaDeposits/GDP % 43 37 28 21 35
  19. 19. BancABC Half Year Financial Results 201119Policy Interest RatesMonetaryPolicyTighteningMonetary policies broadly accommodative except in Moz15.51511.510 109.5 9.514.514.5 1311.514.515.516.55.811.25.66.12.95.24.314.115.915.68.36.68.37.8051015Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11
  20. 20. BancABC Half Year Financial Results 201120Exchange Rate Movement vs. USDEx Rate vs USD: Appreciation (-) & Depreciation (+)Appreciation vs USD Depreciation vs USD-16 -12 -8 -4 0 4 8 12 16BWPZARMZNTZSZMK-7.5-11.2-16.914.7-6.1%YoY: Jun-10 to Jun-11On annual basis thefollowing currenciesappreciated vs USD:•MZN: 16.9%•ZAR: 11.2%•BWP: 7.5%•ZMK: 6.1%TZS depreciated vs USDby 14.7%Continued weakening ofTZS a major cause ofconcern – importedinflation
  21. 21. BancABC Half Year Financial Results 201121Exch. Rates Movement vs. PulaDepreciationAppreciationJun-10 to Jun-11859095100105110115120125130EXRateIndex,Jun-10=100247.5-10.1ZAR/BWPMZN Appreciatedby 10% vs. BWPTZS Depreciatedby 24% vs. BWP
  22. 22. BancABC Half Year Financial Results 201122Banking Sector Status as of Apr-118,1815,3128,9764,9573,7166,5163,7186,2833,4702,6013,6272,9974,1621,9462,0974050607080901004 7 10 13 16 19 22 25 28 31 34 37 40Loans/DepositRatio,%Number of BanksAssets Deposits LoansTanzaniaZimbabweZambiaMozambiqueBotswanaBubble Size in US$ m
  23. 23. BancABC Half Year Financial Results 2011FINANCIAL REVIEWBeki Moyo23
  24. 24. BancABC Half Year Financial Results 2011Income Statement24BWP’000s H1-2011 % ∆ H1-2010 FY-2010Net interest income 191,354 30% 146,815 297,845Impairment of loans &advances (25,821) -52% (16,996) (15,826)Net interest incomeafter impairments 165,533 28% 129,819 282,019Non interest income 145,678 20% 121,622 264,288Total income 311,211 24% 251,441 546,307Operating expenditure (244,025) -18% (205,967) (435,093)Net income fromoperations 67,186 48% 45,474 111,214Share of (loss)/profitsof associates (4,547) 60% (11,479) (20,134)Profit before tax 62,639 84% 33,995 91,080Tax (23,529) -347% (5,269) (22,495)Profit for the year 39,110 36% 28,726 68,585Attributable to:- Ordinary shareholders 37,242 33% 28,076 66,710- Minorities 1,868 187% 650 1,875Basic EPS 25.9 33% 19.5 46.3Diluted EPS 24.6 26% 19.5 46.3Performance primarilydriven by growth in netinterest income and non-interest incomeImpairments up due to loangrowth and downgrading ofsecurity in TanzaniaOpex increased in line withincreased span of activityHowever, cost to incomeratio down from 77% in2010 to 72%
  25. 25. BancABC Half Year Financial Results 2011Income Statement (USD)25USD’000s H1-2011 % ∆ H1-2010 FY-2010Net interest income 29,172 37% 21,241 43,873Impairment of loans &advances (3,936) -60% (2,459) (2,331)Net interest incomeafter impairments 25,236 34% 18,782 41,542Non interest income 22,208 26% 17,597 38,930Total income 47,444 30% 36,379 80,472Operating expenditure (37,201) -25% (29,800) (64,089)Net income fromoperations 10,243 56% 6,579 16,383Share of (loss)/profitsof associates (693) 58% (1,661) (2,966)Profit before tax 9,550 945 4,918 13,417Tax (3,587) -371% (762) (3,314)Profit for the year 5,963 43% 4,156 10,103Attributable to:- Ordinary shareholders 5,678 40% 4,062 9,827- Minorities 285 203% 94 276Basic EPS 3.9 39% 2.8 6.8Diluted EPS 3.7 32% 2.8 6.8Performance primarily drivenby growth in net interestincome and non-interestincomeImpairments up due to loangrowth and continuedimpairment of security forNPLs in TanzaniaOpex increased in line withincreased span of activityHowever, cost to income ratiodown from 77% in 2010 to72%
  26. 26. BancABC Half Year Financial Results 2011Attributable Profit Trends26Improvement in sustainableearnings (NII, fees andcommissions)Current period profitabilitydriven by:• Higher net interest income frombetter margins and higher assetbase• Higher transactional and bondtrading incomeProfitability was negatedby:• Lower trading income in Zambiaand Mozambique• Higher effective tax rate comparedto prior year
  27. 27. BancABC Half Year Financial Results 2011Income Statement – Segmental Analysis27Attributable ProfitBWP 000’s 2011 % Cont 2010 % Cont % changeBancABC Botswana 10,883 15% 11,147 25% -2%BancABC Mozambique 7,823 11% 13,350 29% -41%BancABC Tanzania 9,941 14% 5,893 13% 69%BancABC Zambia 6,200 8% 7,547 17% -18%BancABC Zimbabwe 38,422 52% 7,374 16% 421%Banking operations 73,269 100% 45,311 100% 62%Head Office (36,027) (17,235) -109%TOTAL 37,242 28,076 33%
  28. 28. BancABC Half Year Financial Results 2011Income Statement – Segmental Analysis (USD)28Attributable ProfitUSD 000’s 2011 % Cont 2010 % Cont % changeBancABC Botswana 1,659 15% 1,613 25% 3%BancABC Mozambique 1,193 11% 1,932 29% -38%BancABC Tanzania 1,515 14% 853 13% 78%BancABC Zambia 946 8% 1,091 17% -13%BancABC Zimbabwe 5,857 52% 1,067 16% 449%Banking operations 11,170 100% 6,556 100% 70%Head office (5,492) (2,494) -120%TOTAL 5,678 4,062 40%
  29. 29. BancABC Half Year Financial Results 2011Income Statement – Segmental Analysis29Total Income (BWP’000)Jun-2011 Jun-2010%change Dec-2010BancABC Botswana 48,460 38,296 27% 84,964BancABC Mozambique 43,171 48,797 -12% 83,967BancABC Tanzania 45,376 31,351 45% 67,855BancABC Zambia 45,248 40,634 11% 91,564BancABC Zimbabwe 112,478 59,484 89% 140,449Banking operations 294,733 218,562 35% 468,799Head office entities 16,478 32,879 -50% 77,508TOTAL 311,211 251,441 24% 546,307Strong growth in income other than for Mozambique and head officeentities
  30. 30. BancABC Half Year Financial Results 2011Income Statement – Segmental Analysis30Total Income (BWP’000)Wholesale RetailJun-2011 Jun-2010 Jun-2011 Jun-2010BancABC Botswana 46,003 38,296 2,457 -BancABC Mozambique 39,843 48,163 3,328 634BancABC Tanzania 43,860 31,351 1,516 -BancABC Zambia 41,578 40,634 3,670 -BancABC Zimbabwe 88,029 53,868 24,449 5,616Banking operations 259,313 212,312 35,420 6,250Head office entities 16,478 32,879 - -TOTAL 275,791 245,191 35,420 6,250Income growth from both the retail and wholesale lines of business
  31. 31. BancABC Half Year Financial Results 2011Income Statement – Net Interest Income31Positive trend in net interest incomedriven by better liquidity andincreased balance sheet sizeSlight reduction in net interestmargins although still high at6.5%0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%-50,000100,000150,000200,000250,000Jun-07 Jun-08 Jun-09 Jun-10 Jun-11BWP000Net interest marginNet int BWP000 NIM before impairments NIM after impairments
  32. 32. BancABC Half Year Financial Results 2011Net interest margins by entity32Net Interest Margin Before Impairments Net Interest Margin After Impairments
  33. 33. BancABC Half Year Financial Results 2011Income Statement – Segmental Analysis33Net Interest Income (BWP’000)Jun-2011 Jun-2010%change Dec-2010BancABC Botswana 29,870 23,076 29% 51,452BancABC Mozambique 20,467 15,575 31% 29,057BancABC Tanzania 24,577 22,416 10% 48,038BancABC Zambia 38,064 32,512 17% 67,331BancABC Zimbabwe 65,350 18,015 263% 57,443Banking operations 178,328 111,594 60% 253,321Head office entities 13,026 35,221 -63% 44,524TOTAL 191,354 146,815 30% 297,845Strong growth in NII other than from head office entities
  34. 34. BancABC Half Year Financial Results 2011Income Statement – Impairments & NPLs34Impairment and creditloss ratios declined due toimproved credit riskmanagement processesTanzania net NPLs downto 1.3% from 5.3% inprior year due to increasein provisionsZimbabwe impairmentsincreased from anincreased bookNet NPLs now 1.9% from2.9% in prior year
  35. 35. BancABC Half Year Financial Results 2011Income Statement – Non-Interest Income35Substantial growth in fees and commissions as customer transactions increasedBond trading income also increased, but trading income down in Mozambique and ZambiaZimbabwe and Tanzania were main contributors to growth in non-interest income
  36. 36. BancABC Half Year Financial Results 2011Income Statement – Cost to Income Ratio36Costs increased 18% YoY due to Retail banking expansionHowever, growth in revenues more than increase in costs. Cost to income ratio is now trending downwardsStaff cost were BWP125 million (H1 10: BWP113 million)
  37. 37. BancABC Half Year Financial Results 2011Income Statement – Opex by entity37
  38. 38. BancABC Half Year Financial Results 2011Income Statement – Segmental Analysis38Operating expenses (BWP’000)Wholesale RetailJun-2011 Jun-2010 Jun-2011 Jun-2010BancABC Botswana 26,388 21,536 10,425 3,429BancABC Mozambique 21,266 21,901 11,678 7,375BancABC Tanzania 25,157 18,770 5,055 3,613BancABC Zambia 36,158 31,388 2,889 1,699BancABC Zimbabwe 44,520 43,950 17,293 5,369Banking operations 153,489 137,545 47,340 21,485Head office entities 39,402 41,638 3,794 5,299TOTAL 192,891 179,183 51,134 26,784Growth in costs mostly driven by expansion into the retail and SMEmarket segment
  39. 39. BancABC Half Year Financial Results 2011Balance Sheet39BWP 000s Jun 2011 Jun 2010 % change Dec 2010Cash and short term funds 1,356,617 717,669 89% 999,338Financial assets held for trading 1,030,839 1,423,014 -28% 1,117,827Financial assets designated at fair value 84,135 4,133 >100% 79,139Loans and advances 4,018,987 2,341,744 72% 3,078,110Property and equipment 392,799 302,612 30% 330,218Other assets 481,861 332,351 45% 406,809TOTAL ASSETS 7,365,238 5,121,523 44% 6,011,441Deposits 6,004,301 4,132,382 45% 4,907,045Borrowed funds 682,839 471,634 45% 579,420Other liabilities 208,610 81,101 157% 87,116Total liabilities 6,895,750 4,685,117 47% 5,573,581Equity attributable to ordinary shareholders 453,116 420,189 8% 422,337Minority interest 16,372 16,217 1% 15,523Total equity 469,488 436,406 8% 437,860TOTAL EQUITY AND LIABILITIES 7,365,238 5,121,523 44% 6,011,441
  40. 40. BancABC Half Year Financial Results 2011Balance Sheet (USD)40USD 000s Jun 2011 Jun 2010%change Dec 2010Cash and short term funds 207,562 101,514 104% 154,997Financial assets held for trading 157,707 201,285 -22% 173,375Financial assets designated at fair value 12,884 585 >100% 12,274Loans and advances 614,905 331,240 86% 477,415Property and equipment 60,098 42,805 40% 51,217Other assets 73,725 47,012 57% 63,097TOTAL ASSETS 1,126,881 724,441 56% 932,375Deposits 918,658 584,525 57% 761,083Borrowed funds 104,474 66,713 57% 89,868Other liabilities 31,917 11,473 178% 13,512Total liabilities 1,055,049 662,711 59% 864,463Equity attributable to ordinary shareholders 69,327 59,436 17% 65,504Minority interest 2,505 2,294 9% 2,408Total equity 71,832 61,730 16% 67,912TOTAL EQUITY AND LIABILITIES 1,126,881 724,441 56% 932,375
  41. 41. BancABC Half Year Financial Results 2011Balance Sheet – Overview4123% growth in balancesheet during the last sixmonths from BWP6bn toBWP7.4bnDeposits up 23% duringthe last six months• Growth across all the markets• Significant growth fromBancABC ZimbabweLoans and advances up31% during the period• Significant growth inZimbabwe• Quality of the book hasimproved - NPL ratio declined
  42. 42. BancABC Half Year Financial Results 2011Balance Sheet – Loans and Advances42BancABC Zimbabwe is largestcontributor to Group’s loanbookGrowth experienced in allmarkets other than Tanzania
  43. 43. BancABC Half Year Financial Results 2011Balance Sheet – Segmental Analysis43Loans and advances (BWP’000)Wholesale RetailJun-2011 Jun-2010 Jun-2011 Jun-2010BancABC Botswana 825,315 663,344 14,490 -BancABC Mozambique 500,338 356,580 40,478 3,621BancABC Tanzania 418,976 475,622 22,277 899BancABC Zambia 223,709 252,215 62,285 -BancABC Zimbabwe 1,354,846 325,234 145,817 21,773Banking operations 3,323,184 2,072,995 285,347 26,293Head office entities 410,456 242,456 - -TOTAL 3,733,640 2,315,451 285,347 26,293Retail contribution has significantly grown in the last 12 months
  44. 44. BancABC Half Year Financial Results 2011Balance Sheet – Deposits44Growth in depositsexperienced across thefootprintFunds raised predominantlyused to fund loans & advancesand short-term placementsBotswana still largestcontributor to Group depositsZimbabwe has second largestcontribution
  45. 45. BancABC Half Year Financial Results 2011Balance Sheet – Segmental Analysis45Deposits (BWP’000)Wholesale RetailJun-2011 Jun-2010 Jun-2011 Jun-2010BancABC Botswana 1,929,167 1,769,212 55,079 -BancABC Mozambique 822,667 738,195 159,648 15,258BancABC Tanzania 972,753 761,395 14,796 3,375BancABC Zambia 375,629 253,980 18,229 -BancABC Zimbabwe 990,578 561,748 665,755 27,419Banking operations 5,090,794 4,084,530 913,507 46,052Head office entities - 1,800 - -TOTAL 5,090,794 4,086,330 913,507 46,052Retail now contributing 15% of total deposits (June 2010: 1%)
  46. 46. BancABC Half Year Financial Results 2011Balance Sheet – Capital Adequacy46Total Equity (BWP m) Capital Adequacy RatioSubsidiary 2011 2010 Min 2011 2010BancABC Botswana 173 166 15% 20% 22%BancABC Mozambique 177 135 8% 22% 18%BancABC Tanzania 132 133 12% 15% 14%BancABC Zambia 89 83 10% 21% 30%BancABC Zimbabwe 216 113 10% 15% 14%All entities are adequately capitalised
  47. 47. BancABC Half Year Financial Results 2011OPERATIONAL OVERVIEWFrancis Dzanya47
  48. 48. BancABC Half Year Financial Results 2011Operations Summary› 21 Retail branches as of now› Staff compliment now48Botswana Mozambique Tanzania Zambia ZimbabweSquareFairgroundsFrancistownMaputoBeiraMatolaTeteChimoioUpangaKariakoSinza (agency)Pyramid PlazaLumumbaKitweNdolaMount PleasantHeritageAbercornMutareChiredziKwekweABCH Group736 EmployeesBotswanaBancABCBotswana118 EmployeesMozambiqueBancABCMozambique103 EmployeesTanzaniaBancABCTanzania92 EmployeesZambiaBancABCZambia152 EmployeesZimbabweBancABCZimbabwe219 EmployeesSouth Africa100% 100% 94% 100% 100%BancABC SouthAfrica52 Employees100%
  49. 49. BancABC Half Year Financial Results 201149Operations SummaryRetail rollout continuing with atarget of at least 30 branches byyear-end for the Group• Technology has been a challenge slowingdown implementation• Issues being addressed and rollout of keyfunctionality to continueIn-roads made into thewholesale market in all marketsand microfinance in ZambiaSignificant reduction inMicrofin rates followingintroduction of 48 monthsloans
  50. 50. BancABC Half Year Financial Results 2011Operations Overview – Head Count50Total head count in 2011 of 736 vs 612 in June 2010Growth in staff numbers in last 12 months due to retail expansion
  51. 51. Botswana Highlights51 BancABC Full Year Financial Results 2010• Revenue increased significantly by27%:• Net interest income up 29% -stable margins and increasedinterest earning assets• Non-interest income up 18% -higher transaction and tradingincome• Opex up 47% from increased activityaround retail expansion• Tax optimisation measures reducedoverall tax bill shielding impact ofhigher costs on profitabilityPAT flat atBWP11 million• Customer deposits increased 1%since Dec 2010 to BWP2 billion;• loans and advances increased 6%since Dec 2010 to BWP0.8 billionBalance sheetincreased 9%
  52. 52. BancABC Half Year Financial Results 2011Mozambique Highlights52• Total income down 12%:• Net interest income up 31% -improved margins andincreased interest earningassets• However, non-interest incomedown 27% - lower foreignexchange trading income dueto lower margins and volumes• Opex up 13% from increasedactivity around retail expansionPAT of BWP8m,41% lower thanprior year• Deposits up 17% since Dec 2010to BWP1 billion• Loans and advances increased by27% since Dec 2010 to BWP0.5billionTotal BalanceSheet up 24%
  53. 53. BancABC Half Year Financial Results 2011Tanzania Highlights53• Net interest income up 10%owing to higher balance sheet• Non-interest income increased by72% - bond trading income majordriver of growth• However, impairments up 17% toBWP11.5 million• Total income therefore only 45%ahead of prior year• Opex increased by 35% -expansion into Retail and SMEsegmentAttributable profit ofBWP10 million, 69%ahead of prior year• Deposits up 24% since Dec 2010to BWP1 billion• Loan book declined 1% since Dec2010 to BWP0.4 billion – effortsfocused more into stabilisation ofbook to control NPLs• Funds raised mostly invested inmoney market investmentsBalance sheetremained highlyliquid and grew by19% since Dec 2010
  54. 54. BancABC Half Year Financial Results 2011Zambia Highlights54• Total income up 11% drivenprimarily by growth in themicrofinance net interest income• NII increased by 17% - growthdriven by introduction of newmicrofinance products andrestructuring of the existing ones• Wholesale banking divisionbusiness growth subdued• Opex increased 18% from retailfootprint expansionPAT of BWP6 milliondown 18% fromprior year• Deposits increased 56% sinceDec 2010 to BWP0.4 billion onback of improved marketconfidence in the bank• Loan book grew in themicrofinance division but wasdown on wholesale – overallgrowth 23% since Dec 2010 toBWP0.3 billionBalance sheet nowmore liquid
  55. 55. BancABC Half Year Financial Results 2011Zimbabwe Highlights55• Net interest income grew 3.5 times on back of similargrowth in loans and advances• Non-interest income up 29% from increasedtransactions• Portfolio impairments up from BWP1 million to BWP8million in the current period – loan book growth• Opex increased 25% due to continued expansion intothe retail space• Deposits increased 57% since Dec 2010 to BWP1.7billion• Loans and advances increased 68% since Dec 2010 toBWP1.5 billionPAT up 5 fold to BWP38 millionBalance sheet continues growingsignificantly
  56. 56. BancABC Half Year Financial Results 2011Zimbabwe: Share of Loans byBanking Institution5622-SmallerBanks49%CBZ 26%SCB 8%Stanbic8%BBZ 2%ABC 7%5-LargestBanks51%Share of Loans as of Jun-1022-SmallerBanks52%CBZ 25%SCB 6%Stanbic5%BBZ 2%ABC 10%5-LargestBanks47%Share of Loans as of Jun-11
  57. 57. BancABC Half Year Financial Results 2011Zimbabwe: Share of Deposit as of Jun-105722- SmallerBanks44%CBZ21%SCB10%Stanbic12%BBZ7%ABC6%5-Largest Banks56%
  58. 58. BancABC Half Year Financial Results 201158Zimbabwe: Share of Deposit as of Jun-1122- SmallerBanks40%CBZ 22%SCB 8%Stanbic 11%BBZ 6%ABC 11%5-Largest Banks59%
  59. 59. BancABC Half Year Financial Results 2011Zimbabwe: Banks’ CapitalizationStatus as of 30 June 2011591.02.813.413.613.716.618.218.318.518.521.830.131.032.044.351.6CBZStanchartBarclaysStanbicBancABCZBFBCNMBInterfinMetbankAgribankMBCATrustKingdomTNRoyal
  60. 60. BancABC Half Year Financial Results 2011STRATEGY AND OUTLOOKFrancis Dzanya
  61. 61. BancABC Half Year Financial Results 2011Short to medium term objectives61Grow the microfinancebook in ZambiaOpen additionalbranches across thefootprintAdditional capitalrequired in allsubsidiaries, butBancABC Zimbabweand BancABC Tanzaniaare priorityPrivate placement routeto raise additional tier Icapital being explored
  62. 62. BancABC Half Year Financial Results 2011Dividend declaration62As per Group dividend policy, an interim grossdividend of 6.8 thebe per share to be paid out on16th September 2011 to shareholders on register on2nd September 2011
  63. 63. Outlook63 BancABC Full Year Financial Results 2010Short-term prognosispoints to a tough bankingenvironment• Sovereign debt problems in EUand US• Increasing competitionHowever, countries weoperate in relativelystable politically andeconomicallyThese markets aregrowing and newopportunities existMedium term outlookpositive for Group
  64. 64. BancABC Half Year Financial Results 2011THANK YOU

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