Abch analyst presentation 31 dec 2010 v5-final-14_march_2011

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Abch analyst presentation 31 dec 2010 v5-final-14_march_2011

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Abch analyst presentation 31 dec 2010 v5-final-14_march_2011

  1. 1. BancABC Full Year Financial Results 201014 March 2011<br />
  2. 2. AGENDA<br /><ul><li>Highlights
  3. 3. Economic overview
  4. 4. Financial review
  5. 5. Operational overview
  6. 6. Strategy and outlook</li></li></ul><li>HIGHLIGHTS<br />Douglas Munatsi<br />
  7. 7. Financial Highlights<br />4<br />BancABC Full Year Financial Results 2010<br />
  8. 8. Financial Highlights (cont’d)<br />5<br />BancABC Full Year Financial Results 2010<br />
  9. 9. Operational Highlights<br />6<br />BancABC Full Year Financial Results 2010<br />
  10. 10. ECONOMIC OVERVIEW<br />Douglas Munatsi<br />
  11. 11. 8<br />Economic Overview<br />BancABC Full Year Financial Results 2010<br />
  12. 12. 9<br />Economic Overview<br />
  13. 13. Economic Growth Outlook & Size of Markets (USD m)<br />10<br />
  14. 14. Economic Growth in ABC Markets<br />11<br />BancABC Full Year Financial Results 2010<br />
  15. 15. ABC Markets Banking Sector Landscape As of Oct-10 <br />12<br />* * GDP for 2010<br />* As of Dec-10<br />
  16. 16. Banking Sector Deposits and Loans<br />13<br />BancABC Full Year Financial Results 2010<br />
  17. 17. 14<br />Annual Inflation Trends<br />BancABC Full Year Financial Results 2010<br />
  18. 18. Interest Rate Profiles<br />15<br />BancABC Full Year Financial Results 2010<br />Source: Respective Central Banks<br />
  19. 19. 16<br />Exchange Rate Movement vs. USD<br />BancABC Full Year Financial Results 2010<br />
  20. 20. 17<br />BWP vsExchange Rates <br />Ex Rate Movement of BWP against Foreign Currency<br />Depreciation<br />Appreciation<br />
  21. 21. FINANCIAL REVIEW<br />Beki Moyo<br />18<br />
  22. 22. Income Statement<br />19<br />
  23. 23. Income Statement (USD)<br />20<br />
  24. 24. Attributable Profit Trends<br />21<br />
  25. 25. Income Statement – Segmental Analysis<br />22<br />
  26. 26. Income Statement – Segmental Analysis (USD)<br />23<br />
  27. 27. Income Statement – Net Interest Income<br />Positive trend in net interest income driven by increased margins, better liquidity and increased balance sheet size<br />Impairments were largely under control improving net margins after impairments<br />24<br />
  28. 28. Income Statement – Segmental Analysis<br />Mozambique affected by exchange and interest rate volatility<br />25<br />
  29. 29. Income Statement – Impairments & NPLs<br />Impairment and credit loss ratios declined <br />Credit losses declined sharply owing to improved credit risk management <br />Net NPLs covered by collateral<br />Overall NPLs have now stabilised<br />26<br />
  30. 30. Income Statement – Non-Interest Income<br />27<br />
  31. 31. 28<br />Income Statement – Non-Interest Income<br />
  32. 32. Income Statement – Cost to Income Ratio<br />29<br />
  33. 33. Income Statement – Staff Costs<br />30<br />
  34. 34. Retail Banking CAPEX<br />31<br />
  35. 35. Balance Sheet <br />32<br />
  36. 36. Balance Sheet (USD)<br />33<br />
  37. 37. Balance Sheet – Overview<br />34<br />
  38. 38. Balance Sheet – Loans and Advances<br />35<br />
  39. 39. Balance Sheet – Deposits<br />36<br />
  40. 40. Balance Sheet – Capital Adequacy<br />37<br />
  41. 41. OPERATIONAL OVERVIEW<br />Francis Dzanya<br />38<br />
  42. 42. Operations Summary<br />17 Retail branches as of now<br />Staff compliment now <br />39<br />ABCH Group<br />693 Employees<br />Botswana<br />Mozambique<br />Tanzania<br />Zambia<br />Zimbabwe<br />South Africa<br />BancABC Botswana<br />106 Employees<br />BancABC Mozambique<br />102 Employees<br />BancABC Tanzania<br />81 Employees<br />BancABC Zambia<br />125 Employees<br />BancABC Zimbabwe<br />232 Employees<br />BancABC South Africa<br />47 Employees<br />100%<br />100%<br />100%<br />100%<br />81%<br />100%<br />
  43. 43. 40<br />Operations Summary<br /><ul><li>Overall improvement of loan book</li></li></ul><li>All subsidiaries adequately capitalized<br />Mozambique additional tier I capital of US $3m and tier II capital of US $2m <br />Zambia additional tier I capital of US $5m and tier II capital of US $1m <br />Zimbabwe additional tier I capital of US $10m<br />41<br />Operations Summary<br />
  44. 44. Botswana Highlights<br />42<br />BancABC Full Year Financial Results 2010<br />
  45. 45. Mozambique Highlights<br />43<br />BancABC Full Year Financial Results 2010<br />
  46. 46. Tanzania Highlights<br />BancABC Full Year Financial Results 2010<br />44<br />
  47. 47. Zambia Highlights<br />45<br />BancABC Full Year Financial Results 2010<br />
  48. 48. Zimbabwe Highlights<br />46<br />BancABC Full Year Financial Results 2010<br />
  49. 49. STRATEGY AND OUTLOOK<br />Douglas Munatsi<br />
  50. 50. Follow up on 2010 Objectives<br />48<br />STRATEGIC ACTIVITIES<br />OBJECTIVE<br />RESULTS<br /><ul><li>Expand Retail Banking business
  51. 51. Cross sell products to borrowing customers</li></ul>Increase Non-Interest Income<br />On-going<br />Reduce Impairments Boost Net Interest Income<br /><ul><li>Improved credit management
  52. 52. Managed growth of the loan portfolio</li></ul>Achieved, but results lagging in Tanzania<br />On-going<br />Reduce cost of Funding<br /><ul><li>Expansion of Retail Banking footprint</li></ul>Control Operatingcosts<br /><ul><li>Costs driven by incremental revenue potential
  53. 53. Improve turnaround times</li></ul>Cost to Income ratio<br />On-going<br />Invest for growth<br /><ul><li>Invest in human capital
  54. 54. Retain a substantial amount of Group‘s earnings</li></ul>On-going<br />Merger successfully closed, rollout of retail products on-going<br />Grow & Diversify Customer Base<br /><ul><li>Merge Microfin and Zambian ops and cross sell
  55. 55. Convert wholesale banking customers to retail bank</li></ul>BancABC Full Year Financial Results 2010<br />
  56. 56. 2011 Objectives<br />49<br />On-going<br />STRATEGIC ACTIVITIES<br />OBJECTIVE<br /><ul><li>Embed Retail Banking business
  57. 57. Cross sell products to borrowing customers</li></ul>Increase Non-Interest Income<br />Reduce Impairments <br />Boost Net Interest Income<br /><ul><li>Improved credit management
  58. 58. Managed growth of the loan portfolio</li></ul>Reduce cost of Funding<br /><ul><li>Embed Retail Banking rollout across footprint</li></ul>Control Operatingcosts<br /><ul><li>Costs driven by incremental revenue they can generate
  59. 59. Improve turnaround times</li></ul>Manage investment in Growth<br /><ul><li>Invest in human capital
  60. 60. Retain a substantial amount of Group‘s earnings</li></ul>Grow & Diversify Customer Base<br /><ul><li>Increase both wholesale and retail customer numbers</li></ul>BancABC Full Year Financial Results 2010<br />
  61. 61. Dividend declaration<br />50<br />
  62. 62. Outlook<br />51<br />BancABC Full Year Financial Results 2010<br />
  63. 63. THANK YOU<br />

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