Barclays Bank of Zimbabwe
George T. Guvamatanga
Imara Investor Conference
29 May 2014
Unrestricted
Banking Sector Snapshot
Unrestricted
2 | Imara Investor Conference | 29 May 2014
21
Banking Institutions
3
International B...
Key Challenges
The sector is stable but delicate
• Liquidity constraints
– +75% of deposits below 30 Days
– Limited LOLR a...
Key Opportunities
Opportunities available but require
patient money
• Investment Banking initially focusing on
infrastruct...
Barclays Bank Snapshot
Over a century operating in Zimbabwe
• Listed on ZSE in 1991
• Major Shareholders-Barclays PLC (63%...
Barclays Africa Group Fit
Company confidential
6 | Managers Conference | 30 November 2013
Corp & Investment
Banking
Busine...
Our Goal
To be the ‘Go-To’ bank
•Regain status of a leading bank
•Convenience of doing business second to none
•Employer o...
Debt
Deposits
Our Purpose
Helping people achieve their ambitions -
in the right way
•Keep clients at the core- long term p...
Our values and behaviours
Helping people achieve their ambitions in the right way
Respect We respect and value those we wo...
Our Strategy
We seek to achieve sustainable growth in
segments that are stable and growing
• The theme for us has been rel...
Our business model
We target to fully participate in the value chain of
major players in the economy, their suppliers,
ven...
Financial performance-FY2013
Key Performance Indicator 2009 2010 2011 2012 2013
Revenue share 8% 9% 7% 5% 6%
Deposit Marke...
Financial performance-FY2013
1,151
2,798
6,723
7,642
12,316
2009 2010 2011 2012 2013
Net Interest Income US$ ‘ 000
611
(1,...
Economic outlook
The economic landscape requires significant
decisive interventions to enhance investor
confidence, promot...
Barclays short-medium term outlook
Barclays will continue to be a focused international
bank delivering improved, sustaina...
Key Contacts
George T. Guvamatanga
Managing Director
Tel : +263 750200 / 752 594
george. guvamatanga @ barclays. com
Samue...
Thank You
Unrestricted
17 | Imara Investor Conference | 29 May 2014
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Barclays Bank of Zimbabwe - Presentation at Imara Investor Conference 2014

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Barclays Bank of Zimbabwe - Presentation at Imara Investor Conference 2014

  1. 1. Barclays Bank of Zimbabwe George T. Guvamatanga Imara Investor Conference 29 May 2014 Unrestricted
  2. 2. Banking Sector Snapshot Unrestricted 2 | Imara Investor Conference | 29 May 2014 21 Banking Institutions 3 International Banks 3 Regional Banks +4.7bn Deposits +3.7 bn Advances +$670m Revenue Pools +17% NPLs +75% Deposits under 30 days +$6.7 bn Total Assets +78% LDR +24% Consumer Loans +80% Revenue share of top 9 banks
  3. 3. Key Challenges The sector is stable but delicate • Liquidity constraints – +75% of deposits below 30 Days – Limited LOLR and inter-bank market activity • Risky lending environment – Counterparty viability challenges due to structural issues - +17% NPLs – Absence of a credit clearance bureau and buyers of bad debts – Adverse selection and concentration risk • High cost to serve -importation of notes and branch is still the preferred channel • Capital constrains spurned by high perceived country risk • Stiff competition from Telecom firms in the payments space • Clarity on key legislation and regulations Unrestricted 3 | Imara Investor Conference | 29 May 2014
  4. 4. Key Opportunities Opportunities available but require patient money • Investment Banking initially focusing on infrastructure development and mining • Asset finance - +US$1.5bn is spent on vehicle imports only per year • Mortgages- high demand for medium to low income segments • Private equities- businesses struggling to meet minimum capital requirements • Securitisation Unrestricted 4 | Imara Investor Conference | 29 May 2014
  5. 5. Barclays Bank Snapshot Over a century operating in Zimbabwe • Listed on ZSE in 1991 • Major Shareholders-Barclays PLC (63%), • Top 20 shareholders account for 90% stake as at 30 April. Key Metric 31 Dec’13 Branches 32 Sales Centres 2 Total Distribution Points 34 FTE 672 Customer Deposits 248m Customer Advances $115m Capital and Reserves $44m Revenue $40m ATM Network 46 Unrestricted 5 | Imara Investor Conference | 29 May 2014
  6. 6. Barclays Africa Group Fit Company confidential 6 | Managers Conference | 30 November 2013 Corp & Investment Banking Business Banking COO Marketing HR Finance Legal Risk Compliance Internal Audit Functions Retail Banking SouthAfrica Mozambique Tanzania Kenya Ghana Nigeria Namibia Zimbabwe* Uganda Botswana Zambia Mauritius Seychelles Egypt* Geography Absa Financial Services Businesses * Managed by Barclays Africa, owned by Barclays Bank Plc
  7. 7. Our Goal To be the ‘Go-To’ bank •Regain status of a leading bank •Convenience of doing business second to none •Employer of choice status •Strongest external and regulatory risk ratings •Good corporate citizen Unrestricted 7 | Imara Investor Conference | 29 May 2014
  8. 8. Debt Deposits Our Purpose Helping people achieve their ambitions - in the right way •Keep clients at the core- long term partnerships •Engaged, motivated and empowered colleagues •Sustain responsible corporate citizenship •Sustainable growth and a return to dividends Unrestricted 8 | Imara Investor Conference | 29 May 2014
  9. 9. Our values and behaviours Helping people achieve their ambitions in the right way Respect We respect and value those we work with, the contribution that they make Integrity We act fairly, ethically and openly in all we do Service We put our clients and customers at the centre of what we do Excellence We use our energy, skills and resources to deliver the best, sustainable results Stewardship We are passionate about leaving things better than we found them Unrestricted 9 | Imara Investor Conference | 29 May 2014
  10. 10. Our Strategy We seek to achieve sustainable growth in segments that are stable and growing • The theme for us has been relevance, sustainability and scalability . •Relevance- delivering the aspirations of our key stakeholders •Sustainability - generating profit to protect capital and sustain balance sheet and top line growth into the future. •Scalability- enhancing the bank’s adaptability to the fast changing environment ( lean structures, process efficiency and more e-channel ) Unrestricted 10 | Imara Investor Conference | 29 May 2014
  11. 11. Our business model We target to fully participate in the value chain of major players in the economy, their suppliers, vendors and employees. •Pursuing a ‘Safe Bank’ model: – Putting the interest of the depositor first – lending to businesses we understand and have demonstrable strong cash flows. •Growing a quality loan book anchored by MNCs and LLCs across key sectors without losing focus. •Leveraging Barclays Group capabilities on investment banking capabilities, product development and technology platforms •Owning the payment space -deliver superior transactional and cash management services Unrestricted 11 | Imara Investor Conference | 29 May 2014
  12. 12. Financial performance-FY2013 Key Performance Indicator 2009 2010 2011 2012 2013 Revenue share 8% 9% 7% 5% 6% Deposit Market Share 10% 9% 7% 6% 7% Advances Market Share 3% 3% 3% 3% 4% ROE 5% -4% 4% 6% 7% Cost/income ratio 98% 105% 93% 90% 85% L:D ratio 17% 24% 27% 41% 47% Liquidity ratio 80% 72% 69% 58% 53% Capital adequacy ratio (Total) 30% 44% 19% 18% 17% Basic earnings per share (US cents) 0.07 -0.06 0.07 0.10 0.14 Loan loss ratio -1.6% 0.8% 0.9% 0.6 0.6% Unrestricted 12 | Imara Investor Conference | 29 May 2014
  13. 13. Financial performance-FY2013 1,151 2,798 6,723 7,642 12,316 2009 2010 2011 2012 2013 Net Interest Income US$ ‘ 000 611 (1,852) 2,118 3,053 5,184 2009 2010 2011 2012 2013 Pre –Tax Profits US$ ‘ 000 20,337 43,130 58,518 91,745 115,329 2009 2010 2011 2012 2013 Loans and Advances US$ ‘ 000 121,786 181,223 213,697 224,778 247,985 2009 2010 2011 2012 2013 Customer Deposits US$ ‘ 000 Unrestricted 13 | Imara Investor Conference | 29 May 2014
  14. 14. Economic outlook The economic landscape requires significant decisive interventions to enhance investor confidence, promote local production and contain the imports bill. •Clarity on key policies that local and foreign investors consider, is critical. •Sub optimal economic performance is forecasted in the short term. •Economic landscape demands a responsive and scalable business approach. •This has been and continues to inform our strategy and business model. Unrestricted 14 | Imara Investor Conference | 29 May 2014
  15. 15. Barclays short-medium term outlook Barclays will continue to be a focused international bank delivering improved, sustainable returns and growth •Increase level of lending in its chosen segments leveraging Group capabilities • Continue with ‘safe bank model’ – solid capital base, strong liquidity and a sound funding position – Robust risk management practices and governance framework • Focus on superior customer payment service to secure a market share of transaction activity above liabilities and assets. • More focus on IT driven business efficiencies – Integration of e-channels to increase penetration – Straight through processing – Customer on-boarding and document handling Unrestricted 15 | Imara Investor Conference | 29 May 2014
  16. 16. Key Contacts George T. Guvamatanga Managing Director Tel : +263 750200 / 752 594 george. guvamatanga @ barclays. com Samuel Matsekete CFO +263 4 780 580 samuel.matsekete @ barclays. com Lawrence Nyazema Commercial Director +263 4 775132 lawrence.nyazema @ barclays. com Valeta Mthimkhulu Banking Director +263 4 780591, valeta.mthimkhulu @ barclays. com Unrestricted 16 | Imara Investor Conference | 29 May 2014
  17. 17. Thank You Unrestricted 17 | Imara Investor Conference | 29 May 2014

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