The document summarizes the financial performance of African Banking Corporation for the first half of 2008. Key points include: - Profit increased 50% to BWP82.6 million due to strong growth across subsidiaries. - Assets grew 24% to BWP3.338 billion as loans increased 49% and deposits rose 26%. - Net interest income increased 68% and the cost to income ratio improved to 46%, down from 51% previously. - All subsidiaries were profitable except Botswana which faced impairments, while Zimbabwe, Mozambique, and Tanzania posted strong results.

1. 1
AFRICAN BANKING CORPORATION
Results Presentation
for the Half Year ended 30 June 2008

2. 2
Agenda
Economic Environment
Financial Performance
Overview
Income statement review
Balance sheet review
Outlook
Strategic shift
Challenges & outlook
Capitalisation
Dividend

3. 3
Country
GDP
(USDm)
2008
GDP Growth
rate
2008
( projected)
Banking
Deposits
(USDm)
2007
Banking
Credit
(USDm)
2007
Banking
Assets
(USDm)
2007
Population
2006 est (m)
Botswana 11,716 5.2% 5,076 2,238 6,751 1.7
Mozambique 10,046 7.6% 2,400 1,200 3,100 20
Tanzania 19,541 7.8% 4,341 2,513 5,903 38.2
Zambia 11,918 7.0% 2,194 1,497 3,500 11.9
Zimbabwe* 1,500 -7.0% 95 32 225 11.7
Sources: - IMF – World economic outlook database: April 07
-Central Banks statistics
*2006
ECONOMIC ENVIRONMENT & INDUSTRY
ATTRACTIVENESS

4. 4
Economic environment
World economic Growth is expected to slow down due to the
credit crisis in the US and other Developed Countries.
Real GDP growth for all the Southern African Countries, with
the exception of Zimbabwe is expected to be higher than 5%
in 2008
Commodities boom largely responsible for the Growth
Inflation is expected to soar largely due to increase in food
and Oil prices
Banking assets continue to grow
Botswana has the highest GDP per Capita and highest
banking assets per Capita
Positive interest rates ( Except in Zimbabwe)
Relative stability for all currencies ( except Zimbabwe)
Zimbabwe in a hyper inflationary environment, June inflation
at 11.2 million percent!!

5. 5
ECONOMIC ENVIRONMENT– Exchange Rates
ZWD and MZM revalued in 2006
ZWD Old Mutual implied rate
To 1 BWP 30 Jun-08 31 Dec-07 30 June-07
United States Dollar 0.15 0.17 0.16
Mozambique
Metical
3.96 4.30 4.19
South African Rand 1.20 1.13 1.14
Tanzania Shilling 180 191 202
Zambian Kwacha 494 640 610
Zimbabwe Dollar
24.9
billion
822,765 23 637

6. 6
ECONOMIC ENVIRONMENT– Exchange Rates
•ZWD Old Mutual implied rate
•ZWD revalued in August 2008 (10 zeroes removed)
To 1 US dollar 30 Jun-08 31 Dec-07 30 June-07
Botswana Pula 6.53 6.02 6.17
Mozambique
Metical
24.05 25.67 26.03
South African
Rand
7.83 6.81 7.03
Tanzania Shilling 1 173 1 146 1 246
Zambian Kwacha 3 225 3 850 3 765
Zimbabwe Dollar
162.6
billion
4,948,961 145 906

7. 7
Economic Environment – Inflation & Interest Rates
Country
Inflation
Rate
June-2008
Avg. TB
Yield Rate*
June-2008
Avg or
Prime
Lending
Rates 2008
Avg. Prime
Lending
Rates 2007
Botswana 14.5% 12.11% 16.2% 16.2%
Mozambique 10.4% 13.50% 20.1% 20.1%
Tanzania 9.3% 6.70% 13.6% 14.4%
Zambia 12.1% 11.32% 24.3% 25.0%
Zimbabwe 11,2 m% 340%** 4,200% 559.0%
* 90 day
* 1 year

8. 8
FINANCIAL PERFORMANCE
Overview
Income Statement Review
Balance Sheet Review

9. 9
FINANCIAL PERFORMANCE - Overview
Attributable profit up by 50% from BWP 55.3m
to BWP 82.6m
Net asset value up by 66% and 31% to BWP
410 million from June 2007 and December 2007
respectively
Return on equity of 46% compared to 43%
achieved in prior year
Net interest income for financial operations up
by 68% from BWP 53.7 million to BWP 90
million
Cost to income ratio down to 46%

10. 10
FINANCIAL PERFORMANCE - Overview
Balance sheet growth of 24% and 14% from June 2007
and December 2007 respectively to BWP 3.3 billion
Loans and advances up by 49% and 30% from June 2007
and December 2007 respectively to BWP 1.6 billion
Deposits increased by 26% and 16% from June 2007 and
December 2007 respectively to BWP 2.3 billion
Strong results across the board
Dividend of 8 Thebe per share

11. 11
FINANCIAL PERFORMANCE: Salient Features
BWP’000
June 08
%
change
June 07 Dec 07
Attributable profits 82,660 50% 55,287 123,523
Basic EPS (Thebe) 57.5 38% 41.7 95.3
Dividend per Share ( Thebe) 8 - - 14
Cost to income ratio 46% 10% 51% 47%
Net asset value 410,275 65% 247,968 313,813
NAV per share 2.85 52% 1.87 2.37
Total Assets 3,338,405 24% 2,683,540 2,930,121

12. 12
Financial Performance - Five year earnings overview
ATTRIBUTABLE PROFIT (BWPm) and R.O.E. (%)
6 months to 30 June
84
18 24
47
55
20%
30%
22%
46%43%
-
10
20
30
40
50
60
70
80
90
2004 2005 2006 2007 2008
0%
10%
20%
30%
40%
50%
Profit R O E

13. 13
FINANCIAL PERFORMANCE: Profit per Subsidiary
BWP’000s June 08 % contributionJune 07 % contribution
ABC Botswana 5,968 12% 7,202 42%
ABC Mozambique 7,340 14% 4,697 27%
ABC Tanzania* 3,606 7% (1,688) -10%
ABC Zambia 877 2% (1,576) -9%
ABC Zimbabwe 29,816 58% 8,025 46%
Microfin Zambia 3,833 7% 611 4%
Financial institutions 51,440 100% 17,271 100%
ABCH & Other 32,353 37,605**
TOTAL 83,793 54,876
*Adjusted for minority interest & includes TDFL
**Prior year adjustments( application of hedge accounting)

14. 14
INCOME STATEMENT REVEIW
All Banking operations are profitable
All operations except ABC Botswana posted results that are better
than what was achieved last year
Botswana affected by impairments of BWP 8.3 largely due to one
client
All key performance indicators for ABCB are very positive
Mozambique, Tanzania and Zimbabwe posted very strong results
Financial operations outside 42% ( BWP 21.6 million) to this
segment
While Zambia is profitable its performance is not satisfactory
Massive depreciation of the Zimbabwe dollar

15. 15
INCOME STATEMENT REVEIW
NII declined by 11% to BWP 107.3m
Massive depreciation of the Zimbabwe dollar
Huge increase in non interest earning assets in Zimbabwe
Cost of additional Tier II capital still a burden, but now
reversing as capital is fully leveraged
NII covered 67% of costs, down from 81% in 2006
Botswana contributed 27% to NII, up from 17% in prior year
Zimbabwe contribution to NII declined by over 100%

16. 16
INCOME STATEMENT REVIEW
Mozambique contribution increased from 17% to 22%
Zambia and Tanzania registered growth albeit off a low base
Non-interest revenue increased by 37% to BWP 231.7m.
Operations outside Zimbabwe contribution to non-interest
revenue up from 43% in 2006 to 48%
Impairments charge of BWP 32.9m up 25% compared to
2006. Botswana and Zambia most affected.
Significant write backs in Botswana.

17. 17
INCOME STATEMENT REVIEW – Total income
BWP’000s
Jun 08
%
contribution Jun 07
%
contributionDec 07
%
contribution
ABC Botswana 25,753 12% 22,67016% 50,67616%
ABC Mozambique 24,251 11% 16,57312% 41,87614%
ABC Tanzania* 20,905 9% 9,3607% 36,43012%
ABC Zambia 18,991 9% 12,6359% 30,27510%
Microfin Zambia 20,536 9% 10,6468% 28,6469%
ABC Zimbabwe 47,806 22% 13,255 10% 39,386 13%
Total Fin OPS 158,242 72% 85,13962 227,28974%
ABCH and other 62,296 28% 53,27238% 82,16526%
TOTAL GROUP 220,538 100% 138,411 100% 309,454 100%
*Including TDFL

18. 18
INCOME STATEMENT REVIEW – Net interest
income
BWP’000s Jun 08
%
contribution
Jun 07
%
contribution
Dec 07 % contribution
ABC Botswana 18,18824% 12,77823% 29,48327%
ABC Mozambique 13,66818% 10,98220% 23,26922%
ABC Tanzania 11,61415% 6,00011% 13,69913%
ABC Zambia 10,92515% 6,54512% 16,11615%
Microfin Zambia 22,62831% 13,78725% 28,86827%
ABC Zimbabwe 12,827 17% 3,592 7% 15,429 14%
Total Fin OPS 89,850120% 53,68498% 126,864118%
ABCH and other (14,691)(20%) 1,1682% (19,576)(18%)
TOTAL GROUP 75,086 100% 54,852 100 107,288 100%
*Including TDFL

19. 19
INCOME STATEMENT REVIEW – Net interest
income
BWP’000s
Ave. Yield
on IEA
Ave. Cost Spread
ABC Botswana 11.0% (9.7)% 1.3%
ABC Mozambique 13.2% (7.9)% 5.4%
ABC Tanzania 11.2% (7.5)% 3.7%
ABC Zambia 12.1% (7.1)% 4.9%
ABC Zimbabwe 24.1% (3.6)% 20.5%
Microfin Zambia 71.0% (27.1)% 43.9%

20. 20
INCOME STATEMENT REVIEW – Other income
BWP’000s Jun 08
%
contribution
Jun 07
%
contribution
Dec 07 % contributio
ABC Botswana 15,752 9,602 21,193
ABC Mozambique 10,853 8,701 18,606
ABC Tanzania* 11,160 5,160 23,625
ABC Zambia 10,851 9,058 14,160
Microfin Zambia 34 (115) (222)
ABC Zimbabwe 34,980 9,759 23,973
Total Fin OPS 83,630 42,165 101,335
ABCH and other 74,461 41,611 130,406
TOTAL GROUP 158,091 83,776 231,741
*Including TDFL

21. 21
Excluding impairments
Other income still the main income driver
NII income covers 67% of costs
Leverage of new capital should change the dynamics in 2008
INCOME STATEMENT REVIEW: Total income composition
34%
43%
47%
42%
32%
66%
57%
53%
58%
68%
2003
2004
2005
2006
2007
NII
Other income

22. 22
INCOME STATEMENT REVIEW: Operating expenditure
Cost to income ratio
47%49%
66%
75%
80%
2003 2004 2005 2006 2007
Cost to income ratio down
due to a combination of:
• Zimbabwe dollar depreciation
• cost containment

23. 23
INCOME STATEMENT REVIEW: Operating expenditure
Cost to income ratio at an all time low of 47%
Operating expenditure up 10% to BWP 160m
Sustained cost containment throughout the group
Pula costs in Zimbabwe lower due to the ZWD depreciation
Head count at 395 compared to 337 prior year; employee
costs accounted for 54% compared with 57% in 2006
Marketing costs set to increase in support of growth targets
and retail roll out

24. 24
Total employee costs up from BWP82m to BWP87 m
Employee costs 54% of total costs
Staff compliment of 395 (2006: 337)
Head count set to increase significantly in 2008
Head count per Operation
37
43
33
41
28
38
86
109
142
153
11 11
Botswana Mozambique Tanzania Zambia Zimbabwe ABCH
2006 2007

25. 25
BALANCE SHEET REVIEW
Balance sheet grew by 20% from BWP 2.4 billion to BWP
2.9 billion
Loans and advances increased by 33% to BWP 1.25 billion
in line with group’s aggressive asset growth ambitions
Deposits up by 28% to BWP 1.96 billion; Botswana
contributed 51% to total deposits
NAV up by 15% to BWP 313.8m compared to Dec 2006
Zimbabwe FCTR up BWP 104m in 2007

26. 26
20% balance sheet growth compared to December 06
sustained balance sheet growth since 2003
Compound annual growth rate of 21.01%
BALANCE SHEET REVIEW: Total Assets
Total Assets (BWPm)
1,366,572
1,724,426
1,887,361
2,447,135
2,930,122
2003 2004 2005 2006 2007

27. 27
 28% growth in Deposits
 Botswana continues to lead and breached the BWP 1 billion mark
 Very good growth in Tanzania & Zambia, albeit from a low base
BALANCE SHEET REVIEW: Geographic split of
deposits
Zimbabwe
1%Microfin
3%Zambia
9%
Tanzania
18%
Mozambique
21%
Botswana
51%

28. 28
BALANCE SHEET REVIEW: Loans and advances
Net loans increased by 33% from December 2006
All subsidiaries registered growth
Overall compound annual growth rate of 28.81%
453
609 509
941
1247
0
500
1000
1500
2003 2004 2005 2006 2007
Loans & Advances (BWPm)
Net loans

29. 29
BALANCE SHEET REVIEW: Geographical Split of
Loans
BWP m
Microfin: 67m:
5%
Zimbabwe:
5m:0%
Zambia: 195m:
16%
ABCH & Other:
83m: 7%
Botswana:
486m: 39%
Mozambique:
215m: 17%
Tanzania: 196m:
16%

30. 30
BALANCE SHEET REVIEW: Capital
BWP’000 Capital*
Dec-07
FCTR
Dec-07
Capital*
Dec-06
FCTR
Dec-06
ABC Botswana 99 856 - 98 559 -
ABC Mozambique** 104 712 (7 789) 63 902 (7 016)
ABC Tanzania**
96 601 7 231 21 292 6 432
ABC Zambia*** 99 079 6 002 58 277 (1 782)
ABC Zimbabwe 110 035 (405 766) 105 767 (301 902)
*Including Tier II
**Including TDFL
***Including Microfin
Zimbabwe FCTR up BWP104m since Dec 06

31. 31
BALANCE SHEET REVIEW: Capital Adequacy
Dec 07 Dec 06
Botswana 18% 30%
Mozambique 44% 31%
Tanzania 28% 20%
Zambia 29% 27%
ABC Zimbabwe 26% 23%
Healthy capital adequacy ratios in all subsidiaries due to
injection of capital & prudent capital preservation in Zimbabwe

32. 32
Directors propose a dividend of 14 thebe (ZWD
529,839.00) per share
Dividend cover of 6.9 times
DIVIDEND

33. 33
CAPITALISATION
IFC subscription of 13.9 million shares, bringing
shareholding to 10.7% in January 2008
IFC Convertible loan still to be drawn down
CVCI approved investment of USD 25 million on
terms broadly similar to IFC convertible loan
Directors evaluating hybrid offer: rights issue and
private placement
Group well positioned for sustained growth

34. 34
OUTLOOK: STRATEGIC SHIFT OVER THE NEXT 12
MONTHS
Group embarking on an ambitious growth path driven by:
retail banking roll out
branch network expansion
introduction of e-banking
mortgage finance
Consumer banking (debit cards, credit cards, auto loans)

35. 35
Acquisition of profitable assets
Deposit mobilization remains a key focus area for
the group, particularly in Zambia
Changing the business model –People, processes,
systems and culture
Retail banking structure in place from 3rd quarter
of 2008
Branch profitability: 12 months to 24 months
OUTLOOK & CHALLENGES

36. 36
Thank you