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Dec 2011 results

Net asset value per share and profits increased. Profits were dragged down by a high impairment charge and an IFC convertible loan. Total assets, loans and advances, and deposits all increased significantly. Non-performing loans decreased slightly but credit loss ratios increased. The bank expanded its retail operations and customer base substantially.

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Full Year Financial Results 2011 26 March 2012
Agenda ● Highlights ● Economic overview ● Financial review ● Operational overview ● Strategy and outlook
BancABC Full Year Financial Results 2011 Highlights DOUGLAS MUNATSI
BancABC Full Year Financial Results 2011 Up by 22%3 points down Financial Highlights Net asset value per share up from BWP2.88 to BWP3.99 Profits dragged down by high impairment charge which increased from BWP15.8m in 2010 to BWP79.5m in 2011 & impact of IFC convertible loan of BWP35m PAT 2011 BWP87.7m Up by 28% RoE 2011 16.3% Cost to Income EPS 2011 74% 2011 56.6 thebe 2010 BWP68.6m 2010 16.2% 2010 77% 2010 46.3 thebe 4 Flat
BancABC Full Year Financial Results 2011 Financial Highlights Net asset value per share up from BWP2.88 to BWP3.99 Attributable Profits (BWPm) 2011 BWP83m 2011 17.5% 2011 3.99 2010 BWP66.7m 2010 10% 2010 2.93 5 Dividend Per Share (Thebe) NAV Per (BWP) Up by 24% Up by 39% Up by 36%
BancABC Full Year Financial Results 2011 Financial Highlights 2011 BWP9,2 billion 2010 BWP6,0 billion Up 53% 2011 BWP6,1 billion 2010 BWP3,1 billion Up 97% 2011 BWP7,4 billion 2010 BWP4,9 billion Up 50% 2011 BWP613 million 2010 BWP438 million Up 40% Total Assets Loans & Advances Deposits Equity 6
BancABC Full Year Financial Results 2011 Operational highlights Total retail branches increased from 31 in 2010 to 49 in 2011; Total retail customer numbers increased by 122% from 46 thousand in 2010 to 108 thousand in 2011; NPLs down from 8.3% in 2010 to 6.7% in 2011, however credit loss ratio up from 0.6% in 2010 to 1.7% in 2011; Drawdown of IFC convertible loan of US$13.5 million in 2011 7
BancABC Full Year Financial Results 2011 Economic review DOUG MUNATSI
BancABC Full Year Financial Results 2011 Economic Overview Derailment of global recovery appears to have been averted for now Euro area is expected to enter into a mild recession in 2012 A stronger performance in emerging markets though growth revised downwards Europe adopted a tight fiscal stance & measures to reduce financial stress US economic activity turning better than initially expected 9
BancABC Full Year Financial Results 2011 Economic Overview Sub-Saharan Africa (SSA) continuing its post-crisis recovery Commodity based countries remain vulnerable to any global downturn SSA region grew by 4.9% in 2011 expected to grow by 5.5% in 2012 10
BancABC Full Year Financial Results 2011 GDP Ranking as of 2012 – Top 15 Economies 11 0 4,000 8,000 12,000 16,000 Mexico Korea Australia Spain Canada India Russia Italy UK Brazil France Germany Japan China US US$ bn New Global Order  China overtook Japan in 2010  China a leading consumer of commodities  Brazil to overtake UK in 2012
BancABC Full Year Financial Results 2011 GDP Ranking as of 2012 Top 15 African Economies 0 50 100 150 200 250 300 350 400 450 Botswana Zambia Tanzania Cameroon Kenya Ghana Tunisia Sudan Libya Angola Morocco Algeria Egypt Nigeria South Africa US$ bn South Africa – biggest economy in Africa accounts for over a ⅓ of SSA GDP 12
BancABC Full Year Financial Results 2011 GDP Growth (%) & Size (US$ bn) South Africa 443 Nigeria 263 Namibia 13 Angola 109 Kenya 41 Mozambique 15 Zimbabwe 12 Botswana 18 Tanzania 25 Zambia 21 0 2 4 6 8 10 12 40 50 60 70 80 90 100 110 120 130 140 150 GDPGrowth2012(%) 2010-11 Global Competitive Rankings out of 139 Countries 5.5% SSA GDP Growth GDP Size (US$ bn) = Bubble Size 13
BancABC Full Year Financial Results 2011 2011 Inflation Development Inflation peaked in a number of countries during 2011 Price pressures from volatile and high fuel & food prices 8.5 10.5 12.7 8.7 3.5 5.0 0 2 4 6 8 10 12 14 16 18 20 % Inflation Avg Inflation Botswana Mozambique Tanzania Zambia Zimbabwe SA 14
BancABC Full Year Financial Results 2011 Policy Interest Rates 0 2 4 6 8 10 12 14 16 18 % Tanz (Overnight Rate) Bots (Bank Rate) Zambia (Bank Rate) Moz (Standing Lending Facility) Bots Bank rate remained flat at 9.5% Moz policy rate was lowered by 150bs in line with declining inflation In TZ, firming up of overnight rate in H2 was due to tight liquidity conditions In ZM, bank rate averaged 8.8% in 2011 compared to 6.5% in 2010 Policy interest rates – key monetary policy tools to fight inflation 15
BancABC Full Year Financial Results 2011 Exchange Rate Movement vs. USD Concerns on the pace of global recovery triggered ZAR weakness in H2 of 2011 Having appreciated in 2010, ZAR & BWP depreciated vs. US$ by 24% & 17%, respectively MZN appreciated vs. USD by 18%. MZN was being used as a tool to fight inflation -20 -16 -12 -8 -4 0 4 8 12 16 20 BWP ZAR MZN TZS ZMK 16.9 23.6 -17.5 7.7 6.7 -3.5 -10.6 19.6 10.8 3.4 % YoY: Dec-09 to Dec-10 YoY: Dec-10 to Dec-11 Depreciation (+)Appreciation (-) 16
BancABC Full Year Financial Results 2011 Exchange Rate Movement per Pula 660 670 680 690 700 710 720 730 740 750 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 100 200 300 400 500 600 700 800 BWP/TZS (RHS) BWP/ZMK (LHS) 0 1 2 3 4 5 6 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 0 1 2 3 4 5 6 BWP/MZN BWP/ZAR Due to dominant weight of ZAR in the Pula basket of currencies, the BWP mirrors the ZAR movement The following currencies appreciated vs BWP:  MZN (29.4%) ZMK (8.7%) TZS (7.9%) 17
BancABC Full Year Financial Results 2011 ABC Markets – Banking Sector Landscape (US$m) 7,380 5,771 3,603 6,398 4,478 3,576 9,642 6,750 4,584 5,409 3,786 2,100 4,428 3,100 2,755 Botswana Mozambique Tanzania Zambia Zimbabwe LoansDepositsAssets 18
BancABC Full Year Financial Results 2011 Financial review BEKI MOYO
BancABC Full Year Financial Results 2011 Income Statement Performance driven by increase in net interest income and non-interest income Impairment high due to loan growth and downgrade in Tanzania & Zimbabwe Operating expenses higher in line with expansion BWP'000 2011 2010 Net interest income 412,362 38% 297,845 Impairment of loans (79,537) -403% (15,826) NII after impairment of loans 332,825 18% 282,019 Non-interest income 325,984 23% 264,288 Total income 658,809 21% 546,307 Operating expenses (545,948) -25% (435,093) Net income from operations 112,861 1% 111,214 Share of loss of associates (5,177) 74% (20,134) Profit before tax 107,684 18% 91,080 Tax (19,986) 11% (22,495) Profit for the year 87,698 28% 68,585 Attributable to: -Ordinary shareholders 83,002 24% 66,710 -Minority interests 4,696 150% 1,875 Basic EPS (thebe) 56.6 22% 46.3 Dividend per share (thebe) 17.5 75% 10.0 20
BancABC Full Year Financial Results 2011 Income Statement Performance driven by increase in net interest income and non-interest income Impairment high due to loan growth and downgrade in Tanzania & Zimbabwe Operating expenses higher in line with expansion USD'000 2011 %change 2010 Net interest income 60,329 38% 43,783 Impairment of loans (11,637) -399% (2,331) NII after impairment of loans 48,692 17% 41,542 Non-interest income 47,692 23% 38,930 Total income 96,394 20% 80,472 Operating expenses (79,873) -25% (64,089) Net income from operations 16,511 1% 16,383 Share of loss of associates (757) 74% (2,966) Profit before tax 15,754 17% 13,417 Tax (2,924) 12% (3,314) Profit for the year 12,830 27% 10,103 Attributable to: -Ordinary shareholders 12,143 24% 9,827 -Minority interests 687 149% 276 Basic EPS (US cents) 8.3 22% 6.8 Dividends per share (US cents) 2.4 60% 1.5 21
BancABC Full Year Financial Results 2011 Attributable Profit Trend 124 86 58 67 83 42% 23% 14% 16% 16% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% - 20 40 60 80 100 120 140 2007 2008 2009 2010 2011 Attributable profits RoE Higher attributable profits driven by increase in core earnings ROE flat due to lower earnings in Tanzania Upward trend in past 3 years supported by sustainable earnings BWP’million Dip in 2009 due to dollarization & change in business model 22
BancABC Full Year Financial Results 2011 Income Statement- Segmental Analysis Zimbabwe continued to perform well in all segments Zambia performance buoyed by Microfinance Tanzania affected by downgrade of security on NPL Botswana and Mozambique post solid results on back of improved NII Attributable profits BWP'000 2011 % Cont 2010 % Cont % change Botswana 28,005 20% 20,040 21% 40% Mozambique 28,863 20% 22,919 24% 26% Tanzania (3,326) -2% 15,804 16% -121% Zambia 31,872 23% 11,203 12% 184% Zimbabwe 55,090 39% 26,739 27% 106% Banking Operations 140,504 100% 96,705 100% 45% Head office & consolidation adjustments (57,502) (29,995) -92% Total 83,002 66,710 24% 23
BancABC Financial Results 31 December 2011 Income Statement – Segmental Analysis Doubled retail income during the year Total Income ( excl impairments) BWP'000 2011 % change 2010 BancABC Botswana 125,341 48% 84,806 BancABC Mozambique 126,069 46% 86,383 BancABC Tanzania 88,588 3% 85,918 BancABC Zambia 102,737 17% 88,104 BancABC Zimbabwe 264,814 86% 142,630 Banking Operations 707,548 45% 487,842 Head Office & Consolidation adjustments 30,799 -59% 74,292 Total Income 738,347 31% 562,133 Total income (exl. impairments) 2011 2010 BWP'000 Wholesale Retail Wholesale Retail BancABC Botswana 114,301 11,040 83,273 1,533 BancABC Mozambique 114,796 11,273 82,690 3,693 BancABC Tanzania 83,517 5,071 85,322 596 BancABC Zambia 33,581 69,156 34,752 53,352 BancABC Zimbabwe 186,794 63,480 121,467 21,163 Banking Operations 532,989 160,020 407,504 80,337 Head Office & Consolidation adjustments 45,337 - 74,292 - Total Income 578,326 160,020 481,796 80,337 24
BancABC Full Year Financial Results 2011 Income Statement- Segmental Analysis Strong growth in NII in Zimbabwe and Mozambique Net interest income BWP'000 2011 % change 2010 BancABC Botswana 79,882 55% 51,452 BancABC Mozambique 60,703 109% 29,057 BancABC Tanzania 50,673 5% 48,038 BancABC Zambia 68,905 2% 67,331 BancABC Zimbabwe 121,575 112% 57,437 Total Banking Operations 381,738 51% 253,314 Head office 30,624 -31% 44,531 Total 412,362 38% 297,845 25
BancABC Full Year Financial Results 2011 Income Statement – Segmental Analysis Botswana:18 % Mozambique: 14% Tanzania:12 %Zambia:16% Zimbabwe:31 % ABCH & Other:10% NII by entity - 2011 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2010 2011 BWP'000 Net interest income by entity Botswana Mozambique Tanzania Zambia Zimbabwe ABCH & other Growth in NII across all entities, Zimbabwe contribution high boosted by Retail
BancABC Financial Results 31 December 2011 Income Statement – Net Interest Income Positive trend in net interest income driven by better liquidity and increased balance sheet size Slight reduction in net interest margins due to reduction in interest rates on consumer lending in Zambia 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% - 100,000 200,000 300,000 400,000 500,000 2007 2008 2009 2010 2011 BWP'000 Net interest margin Net int BWP'000 NIM before impairments NIM after impairments 27
BancABC Full Year Financial Results 2011 Income Statement- Net Interest Income (USD) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2007 2008 2009 2010 2011 USD'000 Net interest margin Net int USD'000 NIM before impairments NIM after impairments 28
BancABC Full Year Financial Results 2011 Income Statement- Non-interest income -50,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2007 2008 2009 2010 2011 BWP'000 Non-interest income Fees and commissions Trading income Gains on investment activities MTM - investment property Other income BWP'000 2011 % Change 2010 BancABC Botswana 45,459 36% 33,355 BancABC Mozambique 65,366 14% 57,326 BancABC Tanzania 37,915 0% 37,880 BancABC Zambia 33,831 63% 20,773 BancABC Zimbabwe 128,696 51% 85,194 Banking operations 311,267 33% 234,528 Head office 14,717 -51% 29,760 Total 325 984 23% 264,288 The reduction is due to the impact of IFC convertible loan BWP35 m 29
BancABC Full Year Financial Results 2011 Income Statement- Non-interest income The IFC Convertible loan agreement was signed in 2008 and drawdown happened in May 2011 The loan is a hybrid instrument (debt-derivative) and therefore the loan was marked to market through the income statement. The loss arose from the differential between the conversion price and the current share price of ABCH together with impact of exchange differentials. The net after tax fair value loss of BWP29m was recognized in the income statement in accordance with IAS 39. 30
BancABC Full Year Financial Results 2011 Operating Expense per Entity BWP'000 2011 % change 2010 BancABC Botswana 84,024 42% 59,370 BancABC Mozambique 80,798 43% 56,597 BancABC Tanzania 61,762 30% 47,670 Zambia 80,674 0% 80,360 Zimbabwe 148,510 39% 106,593 Banking operations 455,768 30% 350,590 Head office 90,180 7% 84,503 Total 545,948 25% 435,093 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Botswana Mozambique Tanzania Zambia Zimbabwe Head office 2010 2011 Increase in opex due to expansion in Retail & SME Banking BWP’000 31
BancABC Full Year Financial Results 2011 Income Statement- Cost to Income 47% 59% 82% 77% 74% 2007 2008 2009 2010 2011 Cost to Income Ratio Cost to income ratio peaked in 2009 due to change in business model and dollarization in Zimbabwe. 32
BancABC Full Year Financial Results 2011 Income Statement- Opex per entity Operating Expenses Wholesale Retail BWP'000 Dec-11 Dec-10 Dec-11 Dec-10 BancABC Botswana 55,282 47,078 28,742 12,292 BancABC Mozambique 53,409 39,155 27,389 17,442 BancABC Tanzania 47,613 39,539 14,149 8,131 BancABC Zambia 29,612 36,560 51,062 43,800 BancABC Zimbabwe 102,398 90,052 46,112 16,541 Banking Operations 288,314 252,384 167,454 98,206 Head office 83,380 78,049 6,800 6,454 Total 371,694 330,433 174,254 104,660 12% 66% 33
BancABC Full Year Financial Results 2011 Balance Sheet Overview Balance sheet grew by 53% from BWP6,0 billion to BWP9,2 billion Deposits grew by 50% from BWP4,9 billion to BWP7,4 billion Loans and advances almost doubled from BWP3,1 billion to BWP6,1 billion supported by growth in Zimbabwe Total Equity grew by 40% from BWP438 million to BWP612 million 34
BancABC Full Year Financial Results 2011 Balance Sheet 86% 14% Total Assets-2011 (BWP‘ million Wholesale Retail 94% 6% Total Assets -2010(BWP‘ million Wholesale Retail BWP'000 2011 % chg 2010 Cash and cash equivalents 1,243,431 24% 999,338 Financial assets 972,511 -27% 1,326,846 Loans and advances 6,077,399 97% 3,078,110 Property and equipment 647,263 65% 391,498 Other assets 243,284 13% 215,647 Total assets 9,183,888 53% 6,011,439 Deposits 7,374,700 50% 4,907,045 Borrowed funds 981,788 69% 579,420 Other liabilities 214,833 147% 87,116 Total liabilities 8,571,321 54% 5,573,581 Equity -ordinary shareholders 596,811 41% 422,336 Minority interest 15,756 2% 15,522 Total equity 612,567 40% 437,858 Total liabilities & equity 9,183,888 53% 6,011,439 35
BancABC Full Year Financial Results 2011 Balance Sheet- USD Wholesale 86% Retail 14% Total Assets-2011 (%) Wholesale 94% Retail 6% Total Assets-2010 (%) USD'000 2011 % change 2010 Cash and cash equivalents 166,122 7% 154,997 Financial assets 129,927 -37% 205,794 Loans and advances 811,940 70% 477,415 Property and equipment 86,475 42% 60,721 Other assets 32,504 -3% 33,447 Total assets 1,226,968 32% 932,374 Deposits 985,260 29% 761,083 Borrowed funds 131,167 46% 89,868 Other liabilities 28,702 112% 13,512 Total liabilities 1,145,129 32% 864,463 Equity -ordinary shareholders 79,734 22% 65,504 Minority interest 2,105 -13% 2,407 Total equity 81,839 21% 67,911 Total liabilities & equity 1,226,968 32% 932,374 36
BancABC Full Year Financial Results 2011 Balance Sheet- Loans and Deposits - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2007 2008 2009 2010 2011 Loans Deposits 97% increase in loans 50% increase in deposits 37 49% CAGR 39% CAGR
BancABC Full Year Financial Results 2011 Deposits Per Entity BWP'000 2011 % change 2010 BancABC Botswana 2,563,126 30% 1,966,307 BancABC Mozambique 1,216,349 45% 836,104 BancABC Tanzania 1,060,686 33% 795,640 BancABC Zambia 548,120 117% 252,962 BancABC Zimbabwe 1,986,419 88% 1,056,032 Total deposits 7,374,700 50% 4,907,045 Botswana 34% Mozambique 17% Tanzania 15% Zambia 7% Zimbabwe 28% Strong growth in deposits across all entities 38
BancABC Financial Results 31 December 2011 Balance Sheet – Segmental Analysis Retail contribution has significantly increased in the last 12 months Loans & Advances Wholesale Retail BWP'000 2011 2010 2011 2010 BancABC Botswana 1,289,565 789,470 368,535 5,145 BancABC Mozambique 690,670 404,302 71,227 19,972 BancABC Tanzania 525,984 433,084 46,713 13,342 BancABC Zambia 215,282 140,750 361,628 91,971 BancABC Zimbabwe 1,654,772 824,489 378,387 70,680 Banking Operations 4,376,273 2,592,095 1,226,490 201,110 Head Office entities 474,636 284,905 - - Total Deposits 4,850,909 2,877,000 1,226,490 201,110 39
BancABC Full Year Financial Results 2011 Balance Sheet- Asset Quality BWP' million 2011 2010 2009 2008 2007 Gross loans 6,295 3,217 2,130 2,369 1,363 Non-performing loans 418 268 204 144 154 Impairments 218 138 134 119 116 Portfolio impairment 45 17 13 43 31 Specific impairments 173 121 122 76 85 NPL as % of gross loans 6.7% 8.3% 9.6% 6.1% 11.3% Impairment charge 80 16 51 44 33 Impairment charge % loans 1.7% 0.6% 2.4% 1.9% 2.4% Implied loss given default 41% 45% 60% 53% 55% 40
BancABC Financial Results 31 December 2011 Balance Sheet – Segmental Analysis Retail contributed 8.3% of total deposits (Dec 2010: 3.4%) Deposits Wholesale Retail BWP'000 Dec 2011 Dec 2010 Dec 2011 Dec 2010 BancABC Botswana 2,418,092 1,948,540 145,034 17,767 BancABC Mozambique 991,922 744,952 224,427 91,152 BancABC Tanzania 1,037,774 788,936 22,912 6,704 BancABC Zambia 522,046 240,775 26,074 12,187 BancABC Zimbabwe 1,794,548 1,018,620 191,871 37,412 Total Deposits 6,764,382 4,741,823 610,318 165,222 41
BancABC Financial Results 31 December 2011 Balance Sheet – Capital Adequacy Total Capital (BWP m) Capital Adequacy Ratio Subsidiary 2011 2010 Min 2011 2010 BancABC Botswana 234 171 15% 16% 22% BancABC Mozambique 225 162 8% 15% 18% BancABC Tanzania 99 97 12% 12% 14% BancABC Zambia 126 86 10% 16% 30% BancABC Zimbabwe 284 191 10% 11% 14% There is now need to raise additional capital 42
BancABC Full Year Financial Results 2011 Operational Overview FRANCIS DZANYA
BancABC Full Year Financial Results 2011 Our Footprint – Banking Sector Landscape (US$m) 7,380 5,771 3,603 6,398 4,478 3,576 9,642 6,750 4,584 5,409 3,786 2,100 4,428 3,100 2,755 383 328 218 196 162 102 156 140 76 108 63 73 371 265 277 Mozambique Tanzania Zambia Zimbabwe Loans Deposits Assets BancABC Share Botswana 44
BancABC Full Year Financial Results 2011 Botswana Highlights Revenue • Net interest income : + 55% • Good margins • Increase in the book • Non-interest income : + 36% • High FX Trading volumes Loans & Deposits • Loans and Advances :more than doubled to BWP1.6bn • Increase in consumer lending • Deposits increased: from BWP2bn to BWP2.6bn • market share up from 5% prior year to 6% Operational Statistics • Staff numbers up from 117 to 186 • Branches up from 2 to 4 • Customer numbers up from 1,500 in 2010 to 9,177 in 2011 Developments & New Products • Consumer Banking Loans • 100% home loans; • Chip and PIN cards; • ATMs rolled out • VISA acquiring • Prepaid VISA Cards 45
BancABC Full Year Financial Results 2011 Botswana Branches 46
BancABC Full Year Financial Results 2011 Mozambique Highlights 47 Revenue • Net interest income: +109% • Higher margins • Book Size Increase • Non interest income: +12% • FX Trading Margins Shrinkage • Trade finance fees up Loans & Deposits • Good growth of Loan book: up to BWP761m from BWP424m • Deposits crossed the billion mark: up to BWP1.2bn from BWP836m • Market share increased from 4% to 4.5%. • Highest retail deposit contributor to Group Operational Statistics • Staff numbers up from 103 to 125 • + 1 branch, total to 6; • Customer numbers up from 2,442 in 2010 to 4,516 at the end of 2011 Developments and New Products • Prepaid cards pilot with selected customers; • Campaigns on deposit mobilization: “2014 World Cup” campaign • Launched the IFC SME program 47
BancABC Full Year Financial Results 2011 Mozambique Branches 48
BancABC Full Year Financial Results 2011 Tanzania Highlights Revenue • Total bank revenue affected by high impairment of loans: impairments up from BWP18m to BWP33m • Non interest income flat at BWP38m, • Mark-to-market losses in Q4-11 Loans • Loan book up by 28% from BWP446m to BWP573m, increase recorded on consumer lending. • Deposits increased from BWP795m to BWP1.0 billion Operational statistics • Staff numbers up from 80 in 2010 to 103 in 2011. • One more branch was opened in 2011, bringing total to 4 Product Developments • Rolled out ATM cards • Introduced fixed deposit balance build 49
BancABC Full Year Financial Results 2011 Tanzania Branches 50
BancABC Full Year Financial Results 2011 Zambia Highlights Revenue • Total income up from BWP91m to BWP102m • High consumer loans volumes • Impairments well controlled during the year Loans & Deposits • Loan book up by 148% from BWP233m to BWP577m, • Microfinance book increased by 245% from BWP91m to BWP314m • Deposits up from BWP253m to BWP548m, mainly from wholesale Operational statistics • Staff numbers up from 128 in 2010 to 187 in 2011 • Branch network grew to 23 to cover all provinces in Zambia • Number of customers shot up from 48 thousand to 58 thousand Developments & New products • Successful Sales campaigns 100% MORE • Mobile banking in a box • Offline ATM salaries payment 51
BancABC Full Year Financial Results 2011 Zambia Branches 52
BancABC Full Year Financial Results 2011 Zimbabwe Highlights 53 Revenue • Total bank revenue up from BWP140m to BWP219m, • Impairment was significantly higher due to increase in loan book Loans & deposits • Loan book up by 132% from BWP895m to BWP2bn • Retail Loan book up 5 fold to BWP378 m • Deposits up by 158% to BWP2bn, exceeding market growth of 35%. Operational Statistics • Staff numbers increased from 193 to 353 • Branches increased from 6 to 16 and No of ATMs rose from 13 to 21 • Increase in retail customers from 8,800 in 2010 to 34,700 in 2011 Developments and new products • Group loan schemes • Mortgage loans and VAF • SMS banking launched • Internet /POS acquiring and VISA prepaid card at advanced stage 53
BancABC Full Year Financial Results 2011 Zimbabwe Branches 54
BancABC Full Year Financial Results 2011 Strategy and Outlook DOUGLAS MUNATSI
BancABC Full Year Financial Results 2011 Short to medium term objectives Rights issue of US$50 million underway; The rights issue to be fully underwritten by ADC; To recapitalize all banking operations; Branches to increase to 71 by end of 2012; Balance sheet is sound and positions group well for growth in 2012 and beyond 56
BancABC Full Year Financial Results 2011 Dividend declaration 57 As per Group Policy, a dividend of 10.5 thebe (1.4 US cent) per share to be paid on 4 May 2012 to shareholders on register on 13 April 2012 Total dividend for the year will be 17.5 thebe (2010: 10 thebe) which is approximately 2.4 US cents (2010: 1.5 US cent)
BancABC Full Year Financial Results 2011 ABCH Comparative Prices - ZSE vs. BSE -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Pula ABCH ZSE ZSE Discount(-)/ Premium(+) vs. BSE ABCH BSE 58
BancABC Full Year Financial Results 2011 THANK YOU 59

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Dec 2011 results

  • 1.
    Full Year FinancialResults 2011 26 March 2012
  • 2.
    Agenda ● Highlights ●Economic overview ● Financial review ● Operational overview ● Strategy and outlook
  • 3.
    BancABC Full YearFinancial Results 2011 Highlights DOUGLAS MUNATSI
  • 4.
    BancABC Full YearFinancial Results 2011 Up by 22%3 points down Financial Highlights Net asset value per share up from BWP2.88 to BWP3.99 Profits dragged down by high impairment charge which increased from BWP15.8m in 2010 to BWP79.5m in 2011 & impact of IFC convertible loan of BWP35m PAT 2011 BWP87.7m Up by 28% RoE 2011 16.3% Cost to Income EPS 2011 74% 2011 56.6 thebe 2010 BWP68.6m 2010 16.2% 2010 77% 2010 46.3 thebe 4 Flat
  • 5.
    BancABC Full YearFinancial Results 2011 Financial Highlights Net asset value per share up from BWP2.88 to BWP3.99 Attributable Profits (BWPm) 2011 BWP83m 2011 17.5% 2011 3.99 2010 BWP66.7m 2010 10% 2010 2.93 5 Dividend Per Share (Thebe) NAV Per (BWP) Up by 24% Up by 39% Up by 36%
  • 6.
    BancABC Full YearFinancial Results 2011 Financial Highlights 2011 BWP9,2 billion 2010 BWP6,0 billion Up 53% 2011 BWP6,1 billion 2010 BWP3,1 billion Up 97% 2011 BWP7,4 billion 2010 BWP4,9 billion Up 50% 2011 BWP613 million 2010 BWP438 million Up 40% Total Assets Loans & Advances Deposits Equity 6
  • 7.
    BancABC Full YearFinancial Results 2011 Operational highlights Total retail branches increased from 31 in 2010 to 49 in 2011; Total retail customer numbers increased by 122% from 46 thousand in 2010 to 108 thousand in 2011; NPLs down from 8.3% in 2010 to 6.7% in 2011, however credit loss ratio up from 0.6% in 2010 to 1.7% in 2011; Drawdown of IFC convertible loan of US$13.5 million in 2011 7
  • 8.
    BancABC Full YearFinancial Results 2011 Economic review DOUG MUNATSI
  • 9.
    BancABC Full YearFinancial Results 2011 Economic Overview Derailment of global recovery appears to have been averted for now Euro area is expected to enter into a mild recession in 2012 A stronger performance in emerging markets though growth revised downwards Europe adopted a tight fiscal stance & measures to reduce financial stress US economic activity turning better than initially expected 9
  • 10.
    BancABC Full YearFinancial Results 2011 Economic Overview Sub-Saharan Africa (SSA) continuing its post-crisis recovery Commodity based countries remain vulnerable to any global downturn SSA region grew by 4.9% in 2011 expected to grow by 5.5% in 2012 10
  • 11.
    BancABC Full YearFinancial Results 2011 GDP Ranking as of 2012 – Top 15 Economies 11 0 4,000 8,000 12,000 16,000 Mexico Korea Australia Spain Canada India Russia Italy UK Brazil France Germany Japan China US US$ bn New Global Order  China overtook Japan in 2010  China a leading consumer of commodities  Brazil to overtake UK in 2012
  • 12.
    BancABC Full YearFinancial Results 2011 GDP Ranking as of 2012 Top 15 African Economies 0 50 100 150 200 250 300 350 400 450 Botswana Zambia Tanzania Cameroon Kenya Ghana Tunisia Sudan Libya Angola Morocco Algeria Egypt Nigeria South Africa US$ bn South Africa – biggest economy in Africa accounts for over a ⅓ of SSA GDP 12
  • 13.
    BancABC Full YearFinancial Results 2011 GDP Growth (%) & Size (US$ bn) South Africa 443 Nigeria 263 Namibia 13 Angola 109 Kenya 41 Mozambique 15 Zimbabwe 12 Botswana 18 Tanzania 25 Zambia 21 0 2 4 6 8 10 12 40 50 60 70 80 90 100 110 120 130 140 150 GDPGrowth2012(%) 2010-11 Global Competitive Rankings out of 139 Countries 5.5% SSA GDP Growth GDP Size (US$ bn) = Bubble Size 13
  • 14.
    BancABC Full YearFinancial Results 2011 2011 Inflation Development Inflation peaked in a number of countries during 2011 Price pressures from volatile and high fuel & food prices 8.5 10.5 12.7 8.7 3.5 5.0 0 2 4 6 8 10 12 14 16 18 20 % Inflation Avg Inflation Botswana Mozambique Tanzania Zambia Zimbabwe SA 14
  • 15.
    BancABC Full YearFinancial Results 2011 Policy Interest Rates 0 2 4 6 8 10 12 14 16 18 % Tanz (Overnight Rate) Bots (Bank Rate) Zambia (Bank Rate) Moz (Standing Lending Facility) Bots Bank rate remained flat at 9.5% Moz policy rate was lowered by 150bs in line with declining inflation In TZ, firming up of overnight rate in H2 was due to tight liquidity conditions In ZM, bank rate averaged 8.8% in 2011 compared to 6.5% in 2010 Policy interest rates – key monetary policy tools to fight inflation 15
  • 16.
    BancABC Full YearFinancial Results 2011 Exchange Rate Movement vs. USD Concerns on the pace of global recovery triggered ZAR weakness in H2 of 2011 Having appreciated in 2010, ZAR & BWP depreciated vs. US$ by 24% & 17%, respectively MZN appreciated vs. USD by 18%. MZN was being used as a tool to fight inflation -20 -16 -12 -8 -4 0 4 8 12 16 20 BWP ZAR MZN TZS ZMK 16.9 23.6 -17.5 7.7 6.7 -3.5 -10.6 19.6 10.8 3.4 % YoY: Dec-09 to Dec-10 YoY: Dec-10 to Dec-11 Depreciation (+)Appreciation (-) 16
  • 17.
    BancABC Full YearFinancial Results 2011 Exchange Rate Movement per Pula 660 670 680 690 700 710 720 730 740 750 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 100 200 300 400 500 600 700 800 BWP/TZS (RHS) BWP/ZMK (LHS) 0 1 2 3 4 5 6 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 0 1 2 3 4 5 6 BWP/MZN BWP/ZAR Due to dominant weight of ZAR in the Pula basket of currencies, the BWP mirrors the ZAR movement The following currencies appreciated vs BWP:  MZN (29.4%) ZMK (8.7%) TZS (7.9%) 17
  • 18.
    BancABC Full YearFinancial Results 2011 ABC Markets – Banking Sector Landscape (US$m) 7,380 5,771 3,603 6,398 4,478 3,576 9,642 6,750 4,584 5,409 3,786 2,100 4,428 3,100 2,755 Botswana Mozambique Tanzania Zambia Zimbabwe LoansDepositsAssets 18
  • 19.
    BancABC Full YearFinancial Results 2011 Financial review BEKI MOYO
  • 20.
    BancABC Full YearFinancial Results 2011 Income Statement Performance driven by increase in net interest income and non-interest income Impairment high due to loan growth and downgrade in Tanzania & Zimbabwe Operating expenses higher in line with expansion BWP'000 2011 2010 Net interest income 412,362 38% 297,845 Impairment of loans (79,537) -403% (15,826) NII after impairment of loans 332,825 18% 282,019 Non-interest income 325,984 23% 264,288 Total income 658,809 21% 546,307 Operating expenses (545,948) -25% (435,093) Net income from operations 112,861 1% 111,214 Share of loss of associates (5,177) 74% (20,134) Profit before tax 107,684 18% 91,080 Tax (19,986) 11% (22,495) Profit for the year 87,698 28% 68,585 Attributable to: -Ordinary shareholders 83,002 24% 66,710 -Minority interests 4,696 150% 1,875 Basic EPS (thebe) 56.6 22% 46.3 Dividend per share (thebe) 17.5 75% 10.0 20
  • 21.
    BancABC Full YearFinancial Results 2011 Income Statement Performance driven by increase in net interest income and non-interest income Impairment high due to loan growth and downgrade in Tanzania & Zimbabwe Operating expenses higher in line with expansion USD'000 2011 %change 2010 Net interest income 60,329 38% 43,783 Impairment of loans (11,637) -399% (2,331) NII after impairment of loans 48,692 17% 41,542 Non-interest income 47,692 23% 38,930 Total income 96,394 20% 80,472 Operating expenses (79,873) -25% (64,089) Net income from operations 16,511 1% 16,383 Share of loss of associates (757) 74% (2,966) Profit before tax 15,754 17% 13,417 Tax (2,924) 12% (3,314) Profit for the year 12,830 27% 10,103 Attributable to: -Ordinary shareholders 12,143 24% 9,827 -Minority interests 687 149% 276 Basic EPS (US cents) 8.3 22% 6.8 Dividends per share (US cents) 2.4 60% 1.5 21
  • 22.
    BancABC Full YearFinancial Results 2011 Attributable Profit Trend 124 86 58 67 83 42% 23% 14% 16% 16% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% - 20 40 60 80 100 120 140 2007 2008 2009 2010 2011 Attributable profits RoE Higher attributable profits driven by increase in core earnings ROE flat due to lower earnings in Tanzania Upward trend in past 3 years supported by sustainable earnings BWP’million Dip in 2009 due to dollarization & change in business model 22
  • 23.
    BancABC Full YearFinancial Results 2011 Income Statement- Segmental Analysis Zimbabwe continued to perform well in all segments Zambia performance buoyed by Microfinance Tanzania affected by downgrade of security on NPL Botswana and Mozambique post solid results on back of improved NII Attributable profits BWP'000 2011 % Cont 2010 % Cont % change Botswana 28,005 20% 20,040 21% 40% Mozambique 28,863 20% 22,919 24% 26% Tanzania (3,326) -2% 15,804 16% -121% Zambia 31,872 23% 11,203 12% 184% Zimbabwe 55,090 39% 26,739 27% 106% Banking Operations 140,504 100% 96,705 100% 45% Head office & consolidation adjustments (57,502) (29,995) -92% Total 83,002 66,710 24% 23
  • 24.
    BancABC Financial Results31 December 2011 Income Statement – Segmental Analysis Doubled retail income during the year Total Income ( excl impairments) BWP'000 2011 % change 2010 BancABC Botswana 125,341 48% 84,806 BancABC Mozambique 126,069 46% 86,383 BancABC Tanzania 88,588 3% 85,918 BancABC Zambia 102,737 17% 88,104 BancABC Zimbabwe 264,814 86% 142,630 Banking Operations 707,548 45% 487,842 Head Office & Consolidation adjustments 30,799 -59% 74,292 Total Income 738,347 31% 562,133 Total income (exl. impairments) 2011 2010 BWP'000 Wholesale Retail Wholesale Retail BancABC Botswana 114,301 11,040 83,273 1,533 BancABC Mozambique 114,796 11,273 82,690 3,693 BancABC Tanzania 83,517 5,071 85,322 596 BancABC Zambia 33,581 69,156 34,752 53,352 BancABC Zimbabwe 186,794 63,480 121,467 21,163 Banking Operations 532,989 160,020 407,504 80,337 Head Office & Consolidation adjustments 45,337 - 74,292 - Total Income 578,326 160,020 481,796 80,337 24
  • 25.
    BancABC Full YearFinancial Results 2011 Income Statement- Segmental Analysis Strong growth in NII in Zimbabwe and Mozambique Net interest income BWP'000 2011 % change 2010 BancABC Botswana 79,882 55% 51,452 BancABC Mozambique 60,703 109% 29,057 BancABC Tanzania 50,673 5% 48,038 BancABC Zambia 68,905 2% 67,331 BancABC Zimbabwe 121,575 112% 57,437 Total Banking Operations 381,738 51% 253,314 Head office 30,624 -31% 44,531 Total 412,362 38% 297,845 25
  • 26.
    BancABC Full YearFinancial Results 2011 Income Statement – Segmental Analysis Botswana:18 % Mozambique: 14% Tanzania:12 %Zambia:16% Zimbabwe:31 % ABCH & Other:10% NII by entity - 2011 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2010 2011 BWP'000 Net interest income by entity Botswana Mozambique Tanzania Zambia Zimbabwe ABCH & other Growth in NII across all entities, Zimbabwe contribution high boosted by Retail
  • 27.
    BancABC Financial Results31 December 2011 Income Statement – Net Interest Income Positive trend in net interest income driven by better liquidity and increased balance sheet size Slight reduction in net interest margins due to reduction in interest rates on consumer lending in Zambia 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% - 100,000 200,000 300,000 400,000 500,000 2007 2008 2009 2010 2011 BWP'000 Net interest margin Net int BWP'000 NIM before impairments NIM after impairments 27
  • 28.
    BancABC Full YearFinancial Results 2011 Income Statement- Net Interest Income (USD) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2007 2008 2009 2010 2011 USD'000 Net interest margin Net int USD'000 NIM before impairments NIM after impairments 28
  • 29.
    BancABC Full YearFinancial Results 2011 Income Statement- Non-interest income -50,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2007 2008 2009 2010 2011 BWP'000 Non-interest income Fees and commissions Trading income Gains on investment activities MTM - investment property Other income BWP'000 2011 % Change 2010 BancABC Botswana 45,459 36% 33,355 BancABC Mozambique 65,366 14% 57,326 BancABC Tanzania 37,915 0% 37,880 BancABC Zambia 33,831 63% 20,773 BancABC Zimbabwe 128,696 51% 85,194 Banking operations 311,267 33% 234,528 Head office 14,717 -51% 29,760 Total 325 984 23% 264,288 The reduction is due to the impact of IFC convertible loan BWP35 m 29
  • 30.
    BancABC Full YearFinancial Results 2011 Income Statement- Non-interest income The IFC Convertible loan agreement was signed in 2008 and drawdown happened in May 2011 The loan is a hybrid instrument (debt-derivative) and therefore the loan was marked to market through the income statement. The loss arose from the differential between the conversion price and the current share price of ABCH together with impact of exchange differentials. The net after tax fair value loss of BWP29m was recognized in the income statement in accordance with IAS 39. 30
  • 31.
    BancABC Full YearFinancial Results 2011 Operating Expense per Entity BWP'000 2011 % change 2010 BancABC Botswana 84,024 42% 59,370 BancABC Mozambique 80,798 43% 56,597 BancABC Tanzania 61,762 30% 47,670 Zambia 80,674 0% 80,360 Zimbabwe 148,510 39% 106,593 Banking operations 455,768 30% 350,590 Head office 90,180 7% 84,503 Total 545,948 25% 435,093 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Botswana Mozambique Tanzania Zambia Zimbabwe Head office 2010 2011 Increase in opex due to expansion in Retail & SME Banking BWP’000 31
  • 32.
    BancABC Full YearFinancial Results 2011 Income Statement- Cost to Income 47% 59% 82% 77% 74% 2007 2008 2009 2010 2011 Cost to Income Ratio Cost to income ratio peaked in 2009 due to change in business model and dollarization in Zimbabwe. 32
  • 33.
    BancABC Full YearFinancial Results 2011 Income Statement- Opex per entity Operating Expenses Wholesale Retail BWP'000 Dec-11 Dec-10 Dec-11 Dec-10 BancABC Botswana 55,282 47,078 28,742 12,292 BancABC Mozambique 53,409 39,155 27,389 17,442 BancABC Tanzania 47,613 39,539 14,149 8,131 BancABC Zambia 29,612 36,560 51,062 43,800 BancABC Zimbabwe 102,398 90,052 46,112 16,541 Banking Operations 288,314 252,384 167,454 98,206 Head office 83,380 78,049 6,800 6,454 Total 371,694 330,433 174,254 104,660 12% 66% 33
  • 34.
    BancABC Full YearFinancial Results 2011 Balance Sheet Overview Balance sheet grew by 53% from BWP6,0 billion to BWP9,2 billion Deposits grew by 50% from BWP4,9 billion to BWP7,4 billion Loans and advances almost doubled from BWP3,1 billion to BWP6,1 billion supported by growth in Zimbabwe Total Equity grew by 40% from BWP438 million to BWP612 million 34
  • 35.
    BancABC Full YearFinancial Results 2011 Balance Sheet 86% 14% Total Assets-2011 (BWP‘ million Wholesale Retail 94% 6% Total Assets -2010(BWP‘ million Wholesale Retail BWP'000 2011 % chg 2010 Cash and cash equivalents 1,243,431 24% 999,338 Financial assets 972,511 -27% 1,326,846 Loans and advances 6,077,399 97% 3,078,110 Property and equipment 647,263 65% 391,498 Other assets 243,284 13% 215,647 Total assets 9,183,888 53% 6,011,439 Deposits 7,374,700 50% 4,907,045 Borrowed funds 981,788 69% 579,420 Other liabilities 214,833 147% 87,116 Total liabilities 8,571,321 54% 5,573,581 Equity -ordinary shareholders 596,811 41% 422,336 Minority interest 15,756 2% 15,522 Total equity 612,567 40% 437,858 Total liabilities & equity 9,183,888 53% 6,011,439 35
  • 36.
    BancABC Full YearFinancial Results 2011 Balance Sheet- USD Wholesale 86% Retail 14% Total Assets-2011 (%) Wholesale 94% Retail 6% Total Assets-2010 (%) USD'000 2011 % change 2010 Cash and cash equivalents 166,122 7% 154,997 Financial assets 129,927 -37% 205,794 Loans and advances 811,940 70% 477,415 Property and equipment 86,475 42% 60,721 Other assets 32,504 -3% 33,447 Total assets 1,226,968 32% 932,374 Deposits 985,260 29% 761,083 Borrowed funds 131,167 46% 89,868 Other liabilities 28,702 112% 13,512 Total liabilities 1,145,129 32% 864,463 Equity -ordinary shareholders 79,734 22% 65,504 Minority interest 2,105 -13% 2,407 Total equity 81,839 21% 67,911 Total liabilities & equity 1,226,968 32% 932,374 36
  • 37.
    BancABC Full YearFinancial Results 2011 Balance Sheet- Loans and Deposits - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2007 2008 2009 2010 2011 Loans Deposits 97% increase in loans 50% increase in deposits 37 49% CAGR 39% CAGR
  • 38.
    BancABC Full YearFinancial Results 2011 Deposits Per Entity BWP'000 2011 % change 2010 BancABC Botswana 2,563,126 30% 1,966,307 BancABC Mozambique 1,216,349 45% 836,104 BancABC Tanzania 1,060,686 33% 795,640 BancABC Zambia 548,120 117% 252,962 BancABC Zimbabwe 1,986,419 88% 1,056,032 Total deposits 7,374,700 50% 4,907,045 Botswana 34% Mozambique 17% Tanzania 15% Zambia 7% Zimbabwe 28% Strong growth in deposits across all entities 38
  • 39.
    BancABC Financial Results31 December 2011 Balance Sheet – Segmental Analysis Retail contribution has significantly increased in the last 12 months Loans & Advances Wholesale Retail BWP'000 2011 2010 2011 2010 BancABC Botswana 1,289,565 789,470 368,535 5,145 BancABC Mozambique 690,670 404,302 71,227 19,972 BancABC Tanzania 525,984 433,084 46,713 13,342 BancABC Zambia 215,282 140,750 361,628 91,971 BancABC Zimbabwe 1,654,772 824,489 378,387 70,680 Banking Operations 4,376,273 2,592,095 1,226,490 201,110 Head Office entities 474,636 284,905 - - Total Deposits 4,850,909 2,877,000 1,226,490 201,110 39
  • 40.
    BancABC Full YearFinancial Results 2011 Balance Sheet- Asset Quality BWP' million 2011 2010 2009 2008 2007 Gross loans 6,295 3,217 2,130 2,369 1,363 Non-performing loans 418 268 204 144 154 Impairments 218 138 134 119 116 Portfolio impairment 45 17 13 43 31 Specific impairments 173 121 122 76 85 NPL as % of gross loans 6.7% 8.3% 9.6% 6.1% 11.3% Impairment charge 80 16 51 44 33 Impairment charge % loans 1.7% 0.6% 2.4% 1.9% 2.4% Implied loss given default 41% 45% 60% 53% 55% 40
  • 41.
    BancABC Financial Results31 December 2011 Balance Sheet – Segmental Analysis Retail contributed 8.3% of total deposits (Dec 2010: 3.4%) Deposits Wholesale Retail BWP'000 Dec 2011 Dec 2010 Dec 2011 Dec 2010 BancABC Botswana 2,418,092 1,948,540 145,034 17,767 BancABC Mozambique 991,922 744,952 224,427 91,152 BancABC Tanzania 1,037,774 788,936 22,912 6,704 BancABC Zambia 522,046 240,775 26,074 12,187 BancABC Zimbabwe 1,794,548 1,018,620 191,871 37,412 Total Deposits 6,764,382 4,741,823 610,318 165,222 41
  • 42.
    BancABC Financial Results31 December 2011 Balance Sheet – Capital Adequacy Total Capital (BWP m) Capital Adequacy Ratio Subsidiary 2011 2010 Min 2011 2010 BancABC Botswana 234 171 15% 16% 22% BancABC Mozambique 225 162 8% 15% 18% BancABC Tanzania 99 97 12% 12% 14% BancABC Zambia 126 86 10% 16% 30% BancABC Zimbabwe 284 191 10% 11% 14% There is now need to raise additional capital 42
  • 43.
    BancABC Full YearFinancial Results 2011 Operational Overview FRANCIS DZANYA
  • 44.
    BancABC Full YearFinancial Results 2011 Our Footprint – Banking Sector Landscape (US$m) 7,380 5,771 3,603 6,398 4,478 3,576 9,642 6,750 4,584 5,409 3,786 2,100 4,428 3,100 2,755 383 328 218 196 162 102 156 140 76 108 63 73 371 265 277 Mozambique Tanzania Zambia Zimbabwe Loans Deposits Assets BancABC Share Botswana 44
  • 45.
    BancABC Full YearFinancial Results 2011 Botswana Highlights Revenue • Net interest income : + 55% • Good margins • Increase in the book • Non-interest income : + 36% • High FX Trading volumes Loans & Deposits • Loans and Advances :more than doubled to BWP1.6bn • Increase in consumer lending • Deposits increased: from BWP2bn to BWP2.6bn • market share up from 5% prior year to 6% Operational Statistics • Staff numbers up from 117 to 186 • Branches up from 2 to 4 • Customer numbers up from 1,500 in 2010 to 9,177 in 2011 Developments & New Products • Consumer Banking Loans • 100% home loans; • Chip and PIN cards; • ATMs rolled out • VISA acquiring • Prepaid VISA Cards 45
  • 46.
    BancABC Full YearFinancial Results 2011 Botswana Branches 46
  • 47.
    BancABC Full YearFinancial Results 2011 Mozambique Highlights 47 Revenue • Net interest income: +109% • Higher margins • Book Size Increase • Non interest income: +12% • FX Trading Margins Shrinkage • Trade finance fees up Loans & Deposits • Good growth of Loan book: up to BWP761m from BWP424m • Deposits crossed the billion mark: up to BWP1.2bn from BWP836m • Market share increased from 4% to 4.5%. • Highest retail deposit contributor to Group Operational Statistics • Staff numbers up from 103 to 125 • + 1 branch, total to 6; • Customer numbers up from 2,442 in 2010 to 4,516 at the end of 2011 Developments and New Products • Prepaid cards pilot with selected customers; • Campaigns on deposit mobilization: “2014 World Cup” campaign • Launched the IFC SME program 47
  • 48.
    BancABC Full YearFinancial Results 2011 Mozambique Branches 48
  • 49.
    BancABC Full YearFinancial Results 2011 Tanzania Highlights Revenue • Total bank revenue affected by high impairment of loans: impairments up from BWP18m to BWP33m • Non interest income flat at BWP38m, • Mark-to-market losses in Q4-11 Loans • Loan book up by 28% from BWP446m to BWP573m, increase recorded on consumer lending. • Deposits increased from BWP795m to BWP1.0 billion Operational statistics • Staff numbers up from 80 in 2010 to 103 in 2011. • One more branch was opened in 2011, bringing total to 4 Product Developments • Rolled out ATM cards • Introduced fixed deposit balance build 49
  • 50.
    BancABC Full YearFinancial Results 2011 Tanzania Branches 50
  • 51.
    BancABC Full YearFinancial Results 2011 Zambia Highlights Revenue • Total income up from BWP91m to BWP102m • High consumer loans volumes • Impairments well controlled during the year Loans & Deposits • Loan book up by 148% from BWP233m to BWP577m, • Microfinance book increased by 245% from BWP91m to BWP314m • Deposits up from BWP253m to BWP548m, mainly from wholesale Operational statistics • Staff numbers up from 128 in 2010 to 187 in 2011 • Branch network grew to 23 to cover all provinces in Zambia • Number of customers shot up from 48 thousand to 58 thousand Developments & New products • Successful Sales campaigns 100% MORE • Mobile banking in a box • Offline ATM salaries payment 51
  • 52.
    BancABC Full YearFinancial Results 2011 Zambia Branches 52
  • 53.
    BancABC Full YearFinancial Results 2011 Zimbabwe Highlights 53 Revenue • Total bank revenue up from BWP140m to BWP219m, • Impairment was significantly higher due to increase in loan book Loans & deposits • Loan book up by 132% from BWP895m to BWP2bn • Retail Loan book up 5 fold to BWP378 m • Deposits up by 158% to BWP2bn, exceeding market growth of 35%. Operational Statistics • Staff numbers increased from 193 to 353 • Branches increased from 6 to 16 and No of ATMs rose from 13 to 21 • Increase in retail customers from 8,800 in 2010 to 34,700 in 2011 Developments and new products • Group loan schemes • Mortgage loans and VAF • SMS banking launched • Internet /POS acquiring and VISA prepaid card at advanced stage 53
  • 54.
    BancABC Full YearFinancial Results 2011 Zimbabwe Branches 54
  • 55.
    BancABC Full YearFinancial Results 2011 Strategy and Outlook DOUGLAS MUNATSI
  • 56.
    BancABC Full YearFinancial Results 2011 Short to medium term objectives Rights issue of US$50 million underway; The rights issue to be fully underwritten by ADC; To recapitalize all banking operations; Branches to increase to 71 by end of 2012; Balance sheet is sound and positions group well for growth in 2012 and beyond 56
  • 57.
    BancABC Full YearFinancial Results 2011 Dividend declaration 57 As per Group Policy, a dividend of 10.5 thebe (1.4 US cent) per share to be paid on 4 May 2012 to shareholders on register on 13 April 2012 Total dividend for the year will be 17.5 thebe (2010: 10 thebe) which is approximately 2.4 US cents (2010: 1.5 US cent)
  • 58.
    BancABC Full YearFinancial Results 2011 ABCH Comparative Prices - ZSE vs. BSE -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Pula ABCH ZSE ZSE Discount(-)/ Premium(+) vs. BSE ABCH BSE 58
  • 59.
    BancABC Full YearFinancial Results 2011 THANK YOU 59