Dec 2012 results

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Dec 2012 results

  1. 1. ABC Holdings LimitedAudited Group Resultsfor the year ended31 December 201226 March 2013
  2. 2. BancABC Full Year Financial Results 2012- Highlights- Economic review- Operational overview- Financial review- Strategy and outlookAgenda2
  3. 3. BancABC Full Year Financial Results 2012Douglas MunatsiHighlights3
  4. 4. BancABC Full Year Financial Results 2012Financial highlights4BWP Dec-12 Dec-11 ∆ TrendAttributable Profits 132.8m 83.0m +60%Dividend Per Share 0.16 0.175 -9%No of shares in issue 232.8m 149.5m +56%NAV Per Share 4.88 3.99 +22%● Strong underlying Group performance● Improving capital base and NAV per share● Successfully raised BWP364 million by way of rightsissue in July 2012
  5. 5. BancABC Full Year Financial Results 2012Financial highlights● Growth in profitability from increased business volume● Retail expansion● Cost to income ratio down due to higher revenues5BWP Dec-12 Dec-11 ∆ TrendPBT 212.3m 107.7m + 97%PAT 135.2m 87.7m +54%ROE 15.3% 16.3% -1.0%Cost To Income 71% 74% -3.0%EPS 72.1 thebe 56.6 thebe +27%
  6. 6. BancABC Full Year Financial Results 2012Financial highlights● Strong growth in volumes across the board● Diversification into retail lending● Successful rights issue in July 20126BWP Dec-12 Dec-11 ∆ TrendTotal Assets 13.4 billion 9.2 billion +46%Loans & Advances 9.1 billion 6.1 billion +50%Deposits 10.7 billion 7.4 billion +45%Total Equity 1.1 billion 0.6 billion +89%
  7. 7. BancABC Full Year Financial Results 2012Operational highlights7Total retailbranchesincreased from 49in Dec-11 to 61 inDec-12Total retailcustomer numbersincreased by131% from101,922 in Dec-11to 235,070 in Dec-12NPLs at 9.2%from 6.6% in prioryear, credit lossratio at 1.8%compared to 1.7%in 2011
  8. 8. BancABC Full Year Financial Results 2012Douglas MunatsiEconomic overview8
  9. 9. BancABC Full Year Financial Results 2012Global economic developmentGlobal GDP growth to reach 3½% in 2013, up from 3¼%Coordinated policy actions reduced acute crisis risks in the Euro area andthe US.Emerging economies recovery being led by China, India & Brazil. Growthis returning to healthy levels
  10. 10. BancABC Full Year Financial Results 2012GDP growth in selected leadingeconomies-1.01.03.05.07.09.011.01.83.11.7-0.60.94.39.37.92.73.53.92.30.90.22-0.23.67.84.512.33.22.00.60.31.21.03.78.25.93.52.83.5%2011 2012 201310
  11. 11. BancABC Full Year Financial Results 2012Risks to global economyGlobalEconomyRenewed EuroArea StressUS Severe FiscalStand-offEgypt renewedeconomic/PoliticaldeteriorationJapan escalationof tensions withChina overislandsOil priceinstability11
  12. 12. BancABC Full Year Financial Results 2012Economic growth in selectedAfrican countries3.94.44.34.96.45.17.16.69.43.55.36.85.14.346.53.87.56.54.42.34.85.55.65.74.16.84.18.48.35.02.85.80246810%2011 2012201312
  13. 13. BancABC Full Year Financial Results 2012Economic growth in selected AfricaneconomiesEconomic growth in SSA to improve to 5.8% in 2013compared to 4.8% in 2012Most countries in SSA vulnerable to any global downturnStrong growth in ABC markets although Zim slowed downfrom near double digit level in 201113
  14. 14. BancABC Full Year Financial Results 2012Inflation developments in selectedmarkets in 2012Low inflation environmentin Zimbabwe &MozambiqueDouble digit YoY inflationlevel in TanzaniaAbove target inflation inBotswana & South AfricaInflation breached 7%mark in Dec-12 in Zambia7.62.616.16.63.75.7048121620InflationAvg InflationBotswana Mozamb Tanzania Zambia Zimbabwe SA14
  15. 15. BancABC Full Year Financial Results 2012Monetary policy ratesPolicyRate %Dec-11PolicyRate %Dec-12%ChangeCommentBotswana(Bank Rate)9.5 9.5 0.0 Policy rate fixed at 9.5% since Dec-10Mozambique( Overnight Rate)15.0 9.5 -5.50 Policy easing cycle – interest ratelowered 5-times during 2012Tanzania(91-dy TB Rate)12.61 11.89 -0.72TB Rate was broadly stable indicatingneutral policy stanceZambia(BoZ Policy Rate)9.0 9.25 +0.25 New BoZ rate introduced in Apr-12 BoZ rate increased so as to combatinflationZimbabwe(91-dy TB Rate)---- 8.51 ---- Maiden TB issued in Oct-12 Low uptake due to tight liquidity15
  16. 16. BancABC Full Year Financial Results 2012Lending and deposit interest rates46810124681012Dec-09Apr-10Aug-10Dec-10Apr-11Aug-11Dec-11Apr-12Aug-12Dec-12BotswanaPrime LendingDeposit Rate81012141618208101214161820Dec-09Apr-10Aug-10Dec-10Apr-11Aug-11Dec-11Apr-12Aug-12Dec-12MozambiquePrime Lending16
  17. 17. BancABC Full Year Financial Results 2012Lending and deposit interest rates68101214166810121416Dec-09Apr-10Aug-10Dec-10Apr-11Aug-11Dec-11Apr-12Aug-12Dec-12TanzaniaPrime LendingDeposit Rate610141822610141822Dec-09Apr-10Aug-10Dec-10Apr-11Aug-11Dec-11Apr-12Aug-12Dec-12ZambiaDeposit Rate17
  18. 18. BancABC Full Year Financial Results 2012Lending and deposit interest rates05101520253035400510152025303540Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Aug-12Oct-12Dec-12ZimbabweSavings ratesLendingRatesQuoted lending rates vary widely inZimbabweThis is a reflection of different coststructures among banks in mobilisingdepositsThe Central Bank recently introducedcaps and floors on interest rates18
  19. 19. BancABC Full Year Financial Results 2012Exchange rate movement US$ vs. ZARZAR volatility persisted in 2012influenced by both domestic & globalfactorsIn 2013, ZAR broadly tradingin the 8.75 – 9.25 range vs. USD7.27.57.88.18.48.79.07.27.57.88.18.48.79.0Jan-12Feb-12Mar-12Apr-12May-12Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13US$/ZARH1 AverageH2 Average19
  20. 20. BancABC Full Year Financial Results 2012Exchange Rate Movement vs. USD23.616.9-17.57.76.73.73.390.6-20 -10 0 10 20 30ZARBWPMZNTZSZMK20122011DepreciationAppreciation Dec-11 to Dec 12, currenciesdepreciated vs. USD:o MZN (9%)o ZAR (3.7%)o BWP (3.3%)o ZMK (0.6%) TZS was broadly stablesupported by Central Bankintervention20
  21. 21. BancABC Full Year Financial Results 2012Exchange Rate Movement per Pula21ZMK & TZS appreciated against theBWP over the period Dec-11 to Dec-12 MZN weakened by 5.5% vs. BWP ZAR has dominant weight in BWPbasket of currency ZAR weakness transmitted to BWP630660690720750780Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Aug-12Oct-12Dec-12BWP/ZMK190200210220230240250Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Aug-12Oct-12Dec-12BWP/TZS3.03.54.04.55.05.5Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Aug-12Oct-12Dec-12BWP/MZN
  22. 22. BancABC Full Year Financial Results 2012Financial inclusion levels in selectedAfrican countries12%12%14%19%23%24%30%41%63%1%4%9%7%18%14%6%18%5%9%28%14%19%26%22%17%8%5%78%56%63%55%33%40%47%33%27%0% 20% 40% 60% 80% 100%Mozambique09Tanzania 09Zambia 09Malawi 08Kenya 09Zimbabwe 11Nigeria 10Botswana 09SA 11Banked Non-banked formal Informal Only Excluded22
  23. 23. BancABC Full Year Financial Results 2012Financial intermediation – Credit toGDP Ratio Lending to privatessector exceeded2008/09 pre-crisislevelFinancialintermediation inABC markets stilllags that of middleincome countriessuch as SAMajority of thepopulation remainsunbanked0 20 40 60 80SAZimbabweMozambiqueBotswanaTanzaniaZambia% of GDP2012200923
  24. 24. BancABC Full Year Financial Results 2012Banking assets and deposits24Exponential market growthacross ABCH footprintTanzania is the largest marketfollowed by Botswana andMozambique
  25. 25. BancABC Full Year Financial Results 2012Market share25● Growing market share, especially in Botswana and Zimbabwe● Need to grow to critical mass in other markets as well
  26. 26. BancABC Full Year Financial Results 2012Francis DzanyaOperational overview26
  27. 27. BancABC Full Year Financial Results 2012BancABC Botswana highlights27• NII: 218% higher• Balance sheet growth –consumer lending• Non-interest income: up 57%from increased customertransactions• Loans: up BWP1.7bn toBWP3.4bn• Payroll deduction loans• NPLs: down from 2.2% inDec-11 to 1.2% in Dec-12• Deposits: up BWP1.7bn toBWP4.3bn• Consolidation of growth todate• Consumer lending and homeloans• Increased cross-sell of retailproducts• Risk management(credit, liquidity andoperational)OutstandingPerformanceStatistics 2011 2012 changeStaff compliment 187 234 +47Total Branches 4 6 +2Total Customers 9177 28,735 +19558Income statement Loans and Deposits Outlook
  28. 28. BancABC Full Year Financial Results 2012BancABC Mozambique highlights28Revenue• NII: +52%• Balance sheet growth• Higher margins• Impairments: up from BWP5mto BWP18m• Non-interest income: +3%lower Fx trading incomeLoans and Deposits• Loans: +BWP115m toBWP877m• Gross NPLs increased from4.5% to 8.4%• Deposits: + BWP139m toBWP1.2bn• Retail roll out – cards, internetbanking, group loan schemes• Manage NPLs• IFC SME ProgramOutlookBelow ExpectationStatistics 2011 2012 changeStaff compliment 125 166 +41Total Branches 6 8 +2Total Customers 4,516 8,125 3,609
  29. 29. BancABC Full Year Financial Results 2012BancABC Tanzania highlights29Revenue• NII: -42% from BWP51m toBWP29m• High cost of funds and largerNPL book• Higher impairments• Non Interest Income: +42% -high bond and Fx tradingvolumesLoans and Deposits• Loans: +BWP174m toBWP573m• NPLs up from 15% to 33%• Deposits: +BWP87m toBWP1.bn• Consumer Lending followingacquisition of payroll deductioncode• Increased transactions withsmall traders association• Embed rollout of retailproductsOutlookBelow ParPerformanceStatistics 2011 2012 changeStaff compliment 103 135 +32Total Branches 4 5 +1Total Customers 1,601 5,979 +4,378
  30. 30. BancABC Full Year Financial Results 2012BancABC Zambia highlights30Revenue• NII: +6% despite cap oninterest rates• Non-interest income: +224%increased transaction volumes• Growth in consumer loans• Increased trade financetransactionsLoans and Deposits• Loans: +BWP0.5bn toBWP1.0bn• Growth mostly on consumerlending book• NPLs: down from 4.5% to3.3% in Dec-12• Deposits:+ BWP0.3bn toBWP0.8bn• Consolidate growth andimprove funding mix• Grow deposit base• Continue growing wholesalebusiness• Embed rollout of retailproducts – increase cross-sellOutlookSolid PerformanceStatistics 2011 2012 changeStaff compliment 187 211 +24Total Branches 19 21 +2Total Customers 52,512 82,449 +29,937
  31. 31. BancABC Full Year Financial Results 2012BancABC Zimbabwe highlights31Revenue• NII: 87% higher• Balance sheet growth - groupscheme loans• Impairments up 32%• Non-interest income: up 65%from increased customertransactionsLoans and Deposits• Loans: +BWP1bn to BWP3bn• Liquidity crunch• NPLs: up from 5.8% in Dec-11to 14.2%• Deposits:+ BWP1.1bn toBWP3.1bn• Banc Easy Group loanschemes• Mortgage loans and VAF,• Embed rollout of retailproducts – increase cross-sell• Risk management (credit,liquidity and operational)OutlookRobust PerformanceStatistics 2011 2012 changeStaff compliment 352 507 +155Total Branches 16 21 +5Total Customers 34,966 109,782 +74,816
  32. 32. BancABC Full Year Financial Results 2012Beki MoyoFinancial review32
  33. 33. BancABC Full Year Financial Results 2012Income statement33BWP000 Dec-12 % ∆ Dec-11Net interest income 673,034 63% 412,362Impairment of loans (138,172) -74% (79,537)NII after impairment ofloans 534,862 61% 332,825Non-interest income 551,700 69% 325,984Total income 1,086,562 65% 658,809Operating expenses (868,659) -59% (545,948)Net income from operations 217,903 93% 112,861Share of loss of associates (5,630) -9% (5,177)Profit before tax 212,273 97% 107,684Tax (77,108) -286% (19,986)Profit for the year 135,165 54% 87,698Attributable to:-Ordinary shareholders 132,774 60% 83,002-Minority interests 2,391 -49% 4,696Basic EPS (thebe) 72.1 27% 56.6Diluted EPS (thebe) 66.5 17% 56.6Dividend per share (thebe) 16.0 -9% 17.5Strong performance drivenby growth in consumerlending in Botswana,Zambia and ZimbabweHigher impairments –growth in loan book andhigher NPLs in Tanzaniaand ZimbabweExpansion generated highercosts, but cost to incomeratio declinedDividends lower due toincreased no of shares
  34. 34. BancABC Full Year Financial Results 2012Income statement34USD000 Dec-12 % ∆ Dec-11Net interest income 88,571 47% 60,329Impairment of loans (18,183) -56% (11,637)NII after impairment ofloans 70,388 45% 48,692Non-interest income 72,604 52% 47,692Total income 142,992 48% 96,384Operating expenses (114,316) -43% (79,873)Net income from operations 28,676 74% 16,511Share of loss of associates (741) 2% (757)Profit before tax 27,935 77% 15,754Tax (10,147) -247% (2,924)Profit for the year 17,788 39% 12,830Attributable to:-Ordinary shareholders 17,473 44% 12,143-Minority interests 315 -54% 687Basic EPS (US cents) 9.5 14% 8.3Diluted EPS (US cents) 8.7 5% 8.3Dividend per share (US cents) 2.1 -13% 2.4Strong performance drivenby growth in consumerlending in Botswana,Zambia and ZimbabweHigher impairments –growth in loan book andhigher NPLs in Tanzaniaand ZimbabweExpansion generated highercosts, but cost to incomeratio declinedDividends lower due toincreased no of shares
  35. 35. BancABC Full Year Financial Results 2012Profitability trends35Growth in core earnings asretail contribution increases2009 dip in line withcommencement of retailrolloutROE marginally down –higher capital base and lossin Tanzania
  36. 36. BancABC Full Year Financial Results 2012Income statement – segmental analysis36Attributable profitsBWP000 2012 % Cont 2011 % Cont % changeBotswana 94,434 44% 28,005 20% 237%Mozambique 17,562 8% 28,863 20% -39%Tanzania (38,579) (18%) (3,326) -2% >-100%Zambia 36,004 17% 31,872 23% 13%Zimbabwe 103,351 49% 55,090 39% 88%Banking Operations 212,772 100% 140,504 100% 51%Head office & consolidationadjustments (79,998) (57,502) -39%Total 132,774 83,002 60%High profit growth inBotswana andZimbabwe – consumerlendingZambia growth despitetax charge in currentyear – prior year taxcreditChallenges in Tanzaniaand to a lesser extentMozambique
  37. 37. BancABC Full Year Financial Results 2012Income statement – segmental analysis37Total income (exl. impairments) 2012 2011BWP000 Wholesale Retail Wholesale RetailBancABC Botswana 185,858 138,856 114,301 11,040BancABC Mozambique 138,817 20,796 114,796 11,273BancABC Tanzania 70,691 12,575 83,517 5,071BancABC Zambia 61,203 120,299 33,581 69,156BancABC Zimbabwe 255,610 183,374 186,794 63,480Banking Operations 712,179 475,900 532,989 160,020Head Office & Consolidationadjustments 36,655 - 45,337 -Total Income 748,834 475,900 578,326 160,020● Retail income almost tripled from growth in Botswana andZimbabwe – retail now contributing 39% (2011: 22%)● Wholesale income growth, except in Tanzania
  38. 38. BancABC Full Year Financial Results 2012Income statement – segmental analysis● Growth in Botswana, Mozambique and Zimbabwe – higher volumesand better margins● Zambia – restrictions on interest rate● Tanzania – high cost of funds and higher NPLs38Net interest incomeBWP000 2012 % change 2011BancABC Botswana 252,338 216% 79,882BancABC Mozambique 92,492 52% 60,703BancABC Tanzania 29,391 (42%) 50,673BancABC Zambia 71,759 4% 68,905BancABC Zimbabwe 226,974 87% 121,575Total Banking Operations 672,954 76% 381,738Head office 80 (100%) 30,624Total 673,034 63% 412,362
  39. 39. BancABC Full Year Financial Results 2012Income statement – net interest income39● Improving margins despite setback in Tanzania● Consumer lending improved margins in Botswana, Zambia andZimbabwe● Mozambique had lower cost of funds● NII trending upwards – higher volumes
  40. 40. BancABC Full Year Financial Results 2012NPLs and credit losses● Gross NPL ratio higher at 9.2% (2011: 6.6%) – Tanzania andZimbabwe● Net NPLs at 6.1% compared to 3.3% in prior year● Credit loss ratio consequently higher – 1.8% (2011: 1.7%)40
  41. 41. BancABC Full Year Financial Results 2012Contingent liability41Client granted loan facility inlate 2010 for diamondspurchaseClient defaulted andrenegotiated facility in 2011.Client defaulted again andsettlement agreed at $10.8min early 2012In 2012, client paid $6m ofthis renegotiated amountand defaulted on balanceIn January 2013, BancABCZimbabwe intercepted fundsand applied funds to fullfacility + penalty interestIn February 2013, third party(beneficiary) obtainedjudgement against Bank.Bank appealed to SupremeCourt and judgement hasbeen reservedBank is on a strong positionto win the case. If we losethe case and client is notable to pay, net after taximpairment could be BWP37million.
  42. 42. BancABC Full Year Financial Results 2012Income statement – non-interest income● Fees and commissions growth from increased transaction volumes● Trading income mostly from Tanzania and Mozambique● With introduction of retail, composition of non-interest incomeskewed more towards fees/commissions42
  43. 43. BancABC Full Year Financial Results 2012Operating expenses per entity43BWP000 2012 % change 2011BancABC Botswana 165,510 97% 84,024BancABC Mozambique 115,436 43% 80,798BancABC Tanzania 98,461 59% 61,762Zambia 125,951 56% 80,674Zimbabwe 270,219 82% 148,510Banking operations 775,577 70% 455,768Head office 93,082 3% 90,180Total 868,659 59% 545,948Increase in operatingexpenses across theboard due to Retail & SMEBanking expansion
  44. 44. BancABC Full Year Financial Results 2012Income statement – cost to income ratio● Introduction of Retail Banking and dollarisation in Zimbabweincreased cost to income ratio in 2009● Retail contribution to income increasing thereby resulting in lowercost to income ratio44
  45. 45. BancABC Full Year Financial Results 2012Income statement – opex per entity45Operating ExpensesWholesale RetailBWP000 Dec-12 Dec-11 Dec-12 Dec-11BancABC Botswana 62,137 55,282 103,373 28,742BancABC Mozambique 66,973 53,409 48,463 27,389BancABC Tanzania 70,572 47,613 27,889 14,149BancABC Zambia 65,467 29,612 60,484 51,062BancABC Zimbabwe 123,523 102,398 146,696 46,112Banking Operations 388,672 288,314 386,905 167,454Head office 85,211 83,380 7,871 6,800Total 473,883 371,694 394,776 174,254● Retail expense now 45% of total operating expenses compared to32% in prior year● Wholesale expenses up 27%, retail expenses up 127%
  46. 46. BancABC Full Year Financial Results 2012Balance sheet overview46Balance sheet grew by 46% from BWP9.2 billion toBWP13.4 billionDeposits grew by 45% from BWP7.4 billion to BWP10.7billionLoans and advances grew 50% from BWP6.1 billion toBWP9.1 billion mostly from growth in BotswanaTotal Equity grew by 89% from BWP0.6 billion to BWP1.2billion
  47. 47. BancABC Full Year Financial Results 2012Balance sheet47BWP000 2012 % chg 2011Cash and cash equivalents 1,859,269 50% 1,243,431Financial assets 1,312,032 35% 972,511Loans and advances 9,144,042 50% 6,077,399Property and equipment 797,983 23% 647,263Other assets 294,439 21% 243,284Total assets 13,407,765 46% 9,183,888Deposits 10,675,111 45% 7,374,700Borrowed funds 1,212,731 24% 981,788Other liabilities 363,839 69% 214,833Total liabilities 12,251,681 43% 8,571,321Equity -ordinary shareholders 1,137,044 91% 596,811Minority interest 19,040 21% 15,756Total equity 1,156,084 89% 612,567Total liabilities & equity 13,407,765 46% 9,183,88886%14%Total Assets-2011 (%)Wholesale Retail72%28%Wholesale RetailTotal assets -2012 (%)
  48. 48. BancABC Full Year Financial Results 2012Balance sheet48USD000 2012 % change 2011Cash and cash equivalents 239,288 44% 166,122Financial assets 168,859 30% 129,927Loans and advances 1,176,838 45% 811,940Property and equipment 102,700 19% 86,475Other assets 37,894 17% 32,504Total assets 1,725,579 41% 1,226,968Deposits 1,373,887 39% 985,260Borrowed funds 156,079 19% 131,167Other liabilities 46,825 63% 28,702Total liabilities 1,576,791 38% 1,145,129Equity -ordinary shareholders 146,338 84% 79,734Minority interest 2,450 16% 2,105Total equity 148,788 82% 81,839Total liabilities & equity 1,725,579 41% 1,226,96886%14%Total Assets-2011 (%)Wholesale Retail72%28%Wholesale RetailTotal assets -2012 (%)
  49. 49. BancABC Full Year Financial Results 2012Balance sheet – loans & deposits49-2,0004,0006,0008,00010,00012,0002008 2009 2010 2011 2012LoansDeposits50% YoYincrease inloans45% YoYincrease indeposits42% CAGR 39% CAGR
  50. 50. BancABC Full Year Financial Results 2012Deposits per entity50BWP000 2012 % change 2011BancABC Botswana 4,262,406 66% 2,563,126BancABC Mozambique 1,355,372 11% 1,216,349BancABC Tanzania 1,147,955 8% 1,060,686BancABC Zambia 834,141 52% 548,120BancABC Zimbabwe 3,075,237 55% 1,986,419Total deposits 10,675,111 45% 7,374,700Strong growth indeposits especially inBotswana andZimbabwe
  51. 51. BancABC Full Year Financial Results 2012Balance sheet – segmental analysis● Rapid growth in retail loans in Botswana, Zambia and Zimbabwe● Retail loans are now 40% of total book (2011:20%)51Loans & Advances Wholesale RetailBWP000 2012 2011 2012 2011BancABC Botswana 1,350,606 1,289,565 2,060,231 368,535BancABC Mozambique 739,157 690,670 137,651 71,227BancABC Tanzania 667,658 525,984 79,159 46,713BancABC Zambia 447,851 215,282 585,864 361,628BancABC Zimbabwe 2,155,878 1,654,772 824,740 378,387Banking Operations 5,361,150 4,376,273 3,687,645 1,226,490Head Office entities 95,247 474,636 - -Total Deposits 5,456,397 4,850,909 3,687,645 1,226,490
  52. 52. BancABC Full Year Financial Results 2012Balance sheet – asset quality52BWP million 2012 2011 2010 2009 2008Gross loans 9,460 6,295 3,217 2,130 2,369Non-performing loans 875 418 268 204 144Impairments 316 218 138 134 119Portfolio impairment 78 45 17 13 43Specific impairments 238 173 121 122 76NPL as % of gross loans 9.2% 6.6% 8.3% 9.6% 6.1%Impairment charge 138 80 16 51 44Impairment charge % loans 1.8% 1.7% 0.6% 2.4% 1.9%Implied loss given default 27% 41% 45% 60% 53%
  53. 53. BancABC Full Year Financial Results 2012Balance sheet – segmental analysis● Deposit growth mostly in Botswana and Zimbabwe● Growth driven by wholesale deposits● Retail contribution still low at 9% (2011: 8%)53Deposits Wholesale RetailBWP000 Dec 2012 Dec 2011 Dec 2012 Dec 2011BancABC Botswana 3,923,493 2,418,092 338,914 145,034BancABC Mozambique 1,020,775 991,922 334,596 224,427BancABC Tanzania 1,076,873 1,037,774 71,082 22,912BancABC Zambia 782,493 522,046 51,648 26,074BancABC Zimbabwe 2,885,102 1,794,548 190,135 191,871Total Deposits 9,688,736 6,764,382 986,374 610,318
  54. 54. BancABC Full Year Financial Results 2012Balance sheet – capital adequacy● All entities with exception of Tanzania adequately capitalised● Tanzania to be re-capitalised in 2013● Minimum capital requirements in Zambia and Zimbabwe up to$100m over time● Phased capitalisation of subsidiaries to cater for growth54Total Capital (BWP m) Capital Adequacy RatioSubsidiary 2012 2011 Min 2012 2011BancABC Botswana 521 234 15% 17% 16%BancABC Mozambique 252 225 8% 17% 15%BancABC Tanzania 115 99 12% 9% 12%BancABC Zambia 230 126 10% 14% 16%BancABC Zimbabwe 559 284 12% 13% 11%
  55. 55. BancABC Full Year Financial Results 2012Douglas MunatsiStrategy and outlook55
  56. 56. BancABC Full Year Financial Results 2012Short to medium term objectivesDiversify funding mixof the business –liquidity riskmanagement is a focusarea for the GroupRaise additionalfunding at the centre –currently looking at aUS $100 million bondControl impairmentsdownwards – manageloan portfolio growthManage operationalrisk as businessexpands and productrange increasesConsolidate ourposition as a first tierbank in Botswana andZimbabweTurnaround TanzaniaIncrease retailpenetration inMozambique andcontinue to grow ourbusiness in Zambia56
  57. 57. BancABC Full Year Financial Results 2012Dividend declaration57As per Group Policy, a dividend of 8 thebe (0.96US cent) per share to be paid on 3 May 2013 toshareholders on register on 12 April 2013Total dividend for the year will be 16 thebe (2011:17.5 thebe) which is approximately 2.1 US cents(2011: 2.4 US cent)

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