abc holdings 2014 results presentation v07.2

BancABC Annual Financial Results 2013 Presentation March 25-26 2014

2

AGENDA

Highlights Economic Review

Operational Overview

Financial Review

Strategy

&

Prospects


3

Highlights

ABCH Group CEO, Mr. Doug Munatsi


4

Financial Highlights

BWP’ million % Change Dec-13 Dec-12

Attributable profits 49% 198 133

Profit after tax 29% 174 135

ROE - 15.3% 15.3%

Cost to income 5% 66% 71%

EPS (thebe) 10% 79.6 72.1

Dividend per share (thebe) 16% 18.5 16

NAV per share (thebe) 16% 5.64 4.88

Attributable profits up with impressive

growth in Botswana, Zambia and Zimbabwe

Resilient performance

amidst liquidity challenges in most

jurisdictions

Cost to income ratio down due to higher

revenues


5

Financial highlights

BWP % Change Dec-13 Dec-12

Total assets 18% 15,784 13,408

Loans and advances 15% 10,555 9,144

Deposits 14% 12,209 10,675

Total equity 27% 1,450 1,137

Measured growth in both loans and advances, driven by both retail banking and wholesale banking


6

Financial highlights

Strong growth in NAV on the back of retained profits as well as conversion of IFC debt to equity in April 2013

399 422

597

1,137 1,450

2.73 2.93

4.01

4.88

5.64

-

1.00

2.00

3.00

4.00

5.00

6.00

0

200

400

600

800

1000

1200

1400

1600

2009 2010 2011 2012 2013

Net Asset Value (BWP m) and NAV per share (BWP)

Net asset value Net asset value per share


7

Economic

Review ABCH Group CEO, Mr. Doug Munatsi


8

Economic Growth by Region

3.7

2.8

1.0

6.7

3.3

6.1

3.4

2.3

0.4

6.9

3.4

5.4

-2

0

2

4

6

8

-2

0

2

4

6

81

1

12

13

14

11

12

13

14

11

12

13

14

11

12

13

14

11

12

13

14

11

12

13

14

GDP Growth Avg Growth

World US Euro Developing

Asia MENA SSA


9

Global

• Economic recovery continues to gather pace

• Mature Economies on a recovery path

Developed economies

• Euro zone to return to positive growth

• Uptick in US economy

Emerging countries

• Slow down in growth in China

• Negative impact on commodities

• Currency depreciations - impact of US QE

Sub-Saharan Africa

• Economic growth to remain strong

• Increased public infrastructure spending

• Euro bond Issuances

Economic Overview


10

Economic Growth in ABC Markets

BancABC Botswana

•Elections in Oct-14

•Middle income with GDP per Capita of US$7,200

•Relocation of diamond sorting to Botswana

BancABC Mozambique

•Elections in Oct-14

•Political disturbances with opposition

•Strong growth prospects & leading FDI recipient

BancABC Tanzania

•Elections in 2015

•Among fastest growing economies in Africa

•Low GDP per Capita US$730

BancABC Zambia

•Strong economic growth

•Trade Surpluses

•Rising GDP per Capita US$1,650

BancABC Zimbabwe

•Politically stable after elections

•Stuttering growth after double digit growth in 2010-12

•Huge liquidity challenges

•FDI to remain low


11

GDP Growth in ABC Markets

3,000

4,000

5,000

6,000

7,000

8,000

-8

-6

-4

-2

0

2

4

6

8

10

2009 2010 2011 2012 2013 2014

GDP in Botswana

GDP per Capita GDP Growth

% Growth

US$ Capita

200

300

400

500

600

700

800

6.0

6.5

7.0

7.5

8.0

8.5

9.0

2009 2010 2011 2012 2013 2014

GDP in Mozambique


% Growth

US$ Capita


12

GDP Growth in ABC Markets (cont’d)

200

300

400

500

600

700

800

5.0

5.5

6.0

6.5

7.0

7.5

8.0

2009 2010 2011 2012 2013 2014

GDP in Tanzania


% Growth

US$ Capita

200

600

1,000

1,400

1,800

5.8

6.3

6.8

7.3

7.8

2009 2010 2011 2012 2013 2014

GDP in Zambia


% Growth

US$ Capita


13

GDP Growth in ABC Markets (cont’d)

200

400

600

800

1,000

1,200

2

4

6

8

10

12

14

2009 2010 2011 2012 2013 2014

GDP in Zimbabwe


% Growth

US$ Capita

0

2,000

4,000

6,000

8,000

10,000

-3

-2

-1

1

2

3

4

5

2009 2010 2011 2012 2013 2014

GDP in South Africa


% Growth

US$ Capita


14

2013 Inflation Rates in ABC Markets (%)

5.9

4.2

7.9

7.0

1.6

5.8

0

2

4

6

8

10

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Feb

-13

Ap

r-1

3

Jun

-13

Au

g-1

3

Oct

-13

Dec

-13

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Feb

-13

Ap

r-1

3

Jun

-13

Au

g-1

3

Oct

-13

Dec

-13

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Feb

-13

Ap

r-1

3

Jun

-13

Au

g-1

3

Oct

-13

Dec

-13

Tanzania Mozambique Botswana Zambia Zimbabwe South Africa

Inflation either stable or declining!


15

Policy Interest Rates

Policy Rates

Dec-12 %

Dec-13 %

Change Since

Dec-11

Comment

Botswana Bank Rate

9.5 7.5 (2.00) Lower inflation allowed Bank of Botswana to reduce Bank rate (BR) BR lowered 4-times in 2013

Mozambique Standing Lending Facility

9.5 8.25 (1.25) Loose monetary policy stance. The SLF lowered 3-times during the year

Tanzania 91-dy

11.89 13.61 1.72 Higher interest yields despite declining inflation

Zambia Policy Rate

9.25 9.75 0.50 Monetary policy tightening in response to rising inflation


16

Lending & Deposit Interest Rates

Interest Rates

Average lending

rate %

Average deposit

rate %

Spread Comment

Botswana 10.21 4.91 5.30 Monetary policy transmission is working Lending & deposit rates have both come down in line with falling Bank rate

Mozambique 20.09 9.68 10.41 Interest rates have not responded significantly despite the policy rate being aggressively reduced over the years

Tanzania 14.02 11.34 2.68 Narrowed Interest rate spread reflecting improved financial deepening

Zambia 16.3 6.3 10.0 There is pressure to reduce rates which remain stubbornly high

Zimbabwe 20.0 8.0 12.0 High interest spread still exists Liquidity squeeze keeping interest rates high


17

Exchange Rate Movement vs. USD

0 4 8 12 16 20 24

BWP

ZAR

MZN

TZS

ZMK

12

23

1.5

-0.1

7.1

%

YoY: Dec-12 to Dec-13

Depreciation vs. USD

The Following currencies depreciated vs USD:

•ZAR; 23%

•BWP; 12%

•ZMW; 7%

ZAR weighed down by:

● Labour unrests

● Widening current account deficit

● US Quantitative Easing

MZN Stable assisted by Central Bank Interventions


18

Exchange Rate Movement vs. ZAR

All currencies appreciated vs. ZAR:

•TZS; 18.8%

•MZN; 17.6%

•ZMW; 13.6%

• BWP; 8.8%

Lower imported inflation from SA

• SA more prone to global shocks due to closer links with Euro

-20 -15 -10 -5 0

BWP

MZN

TZS

ZMK

-8.8

-17.6

-18.8

-13.6

%

YoY: Dec-12 to Dec-13

Appreciation vs. ZAR


19

Sizes of Banking Systems in ABC Markets

5,7

98

6,0

46

8,3

28

3,8

25

4,7

90

0

2,000

4,000

6,000

8,000

0

2,000

4,000

6,000

8,000

No

v-1

2

Fe

b-1

3

Ma

y-1

3

Au

g-1

3

De

c-1

2

Ma

r-1

3

Ju

n-1

3

Se

p-1

3

Ja

n-1

3

Ap

r-1

3

Ju

l-1

3

Oct-

13

No

v-1

2

Fe

b-1

3

Ma

y-1

3

Au

g-1

3

Ja

n-1

3

Ap

r-1

3

Ju

l-1

3

Oct-

13

US$

m

US$

m

Total Deposits Credit Pvt

Botswana Mozambique Tanzania Zambia

2013 2013 2013 2013 2013

Zimbabwe


* Jun-13

0%

2%

4%

6%

8%

10%

12%

Bots Moz Tanz Zam Zim

2013 market share

Deposits Loans Total assets

20

BancABC Market Share

Growing market share in Botswana & Zimbabwe

Need to grow critical mass in other markets

0%

2%

4%

6%

8%

10%

12%

Bots Moz Tanz Zam Zim

2012 market share

Deposits Loans Total assets


21

ABCH Group COO, Mr. Francis Dzanya

Operational

Overview


22

Group Highlights

Staff

Clients

Channels

Communities

The banking group created 191 jobs in all subsidiaries

Total client numbers up by 48% to 277,383

BWP10.5bn Total loans and BWP12.2bn Total deposits

Total branches up by 12 to 73 Total ATMs at 74

Increased community participation and sponsorships (Dynamos,

Highlanders, Zebras, Green Buffaloes…)


23

Botswana Highlights

Income statement

• PAT increased from BWP94m to BWP153m

• NII up 55% to BWP391m

• NIR up by 30% to BWP94m

Statistics

• Staff complement at 284, up from 234

• Increased branches from 5 to 8

• Increased customer numbers from 28,735 to 42,421

Loans & deposits

• Loans increased from BWP3.4bn to BWP3.8bn

• Deposits increased from BWP4.3bn to BWP4.7bn

• Consumer loans make up 61% of total loans

Outlook

• Focus on deposit mobilization and diversification of the depositor book

• Grow non interest income


24

Mozambique Highlights

Income statement

• PAT dropped from BWP18m to BWP9m

• High impairment charge from BWP18m last year to BWP51m in 2013

• Fee income grew from BWP26m to BWP48m

Statistics




Loans & deposits

• Loans increased from BWP876m to BWP1.4 bn


• Some in-roads made in retail loans and deposits

Outlook

• Grow loans and deposits

• Expansion in number of branches

• Tight control of impairments


25

Tanzania Highlights

Statistics


• Branches remained at 4, added 4 loan centers


Outlook

• Focus on growing consumer loans

• Grow deposit base

• Control impairments

• Manage expenses

Income statement

• Disappointing set of results, losses at BWP20m

• Operating expenses increased faster than annuity income

• NIR increased from BWP 54m to BWP68m

• Combined impairments of BWP136m and loss of BWP94m

Loans & deposits

• Loans dropped from BWP747m to BWP575m


• Loans transferred to TDFL at BWP 282m book value


26

Zambia Highlights

Statistics


• Branches increased to 22 from 21


Loans & deposits

• Loans increased from BWP1bn to BWP1.4bn

• Deposits increased from BWP834m to BWP1.2bn

• Loans and deposits were boosted by increased capital which is now BWP825m

Outlook

• Bank met central bank capital regulations in Dec 2013

• Leverage additional capital and grow loans and deposits

• Management of costs key going forward

Income statement


• Impressive growth in non interest revenue up from BWP110m to BWP158m

• NPLs well managed – recovered BWP7.8m

• Cost to income ratio at 62%


27

Zimbabwe Highlights

Statistics

• Staff complement at 514 from 507



Loans & deposits

• Loans increased from BWP3.0bn to BWP3.1bn

• Deposits dropped from BWP3.1m to BWP2.7bn but increased from half year position of BWP 2.3bn

Income statement


• NII up 78% to BWP404m

• Impairment charge doubled to BWP92m compared to 2012

Outlook

• Focus on growing retail and consumer lending

• Grow deposit base and sweat the retail investment

• Effective cost management

• Reduce NPLs


28

ABCH Group CFO, Mr. Beki Moyo

Financial Review


29

Income statement- BWP BWP‘ million % Change 2013 2012

Net interest income 50 1,010 673

Impairments (137) (328) (138)

NII after impairments 28 682 535

Non interest revenue 25 692 552

Operating expenses (29) (1,116) (869)

Share of associate results 29 (4) (6)

Profit before taxation 20 254 212

Taxation (3) (80) (77)

Profit for the year 29 174 135

Attributable to

-ordinary shareholders 49 198 133

-minority shareholders (1108) (24) 2

Solid performance hampered by significant rise in impairments of loans

Impressive growth in both NII and NIR


30

Income Statement- USD

USD‘ million % Change 2013 2012

Net interest income 35 119 88

Impairments (113) (39) (18)

NII after impairments 15 80 70

Non interest revenue 13 82 73

Operating expenses (15) (132) (114)

Share of associate results 36 (0.5) (0.7)

Profit before taxation 7 30 28

Taxation 7 (9) (10)

Profit for the year 16 21 18

Attributable to

-ordinary shareholders 34 24 18

-minority shareholders (1005) (3) 0.3

Solid performance hampered by significant rise in impairments of loans

Impressive growth in both NII and NIR


31

Positive trend in NAV

Continued growth in NAV on the back of retained profits as well as new shares issued

399 422

597

1,137 1,450

2.73 2.93

4.01

4.88

5.64

-

1.00

2.00

3.00

4.00

5.00

6.00

0

200

400

600

800

1000

1200

1400

1600

2009 2010 2011 2012 2013

Net Asset Value (BWP m) and NAV per share (BWP)

Net asset value Net asset value per share


32

Strong performance

58 67

83

133

198

14%

16% 16%

15% 15%

13%

14%

14%

15%

15%

16%

16%

17%

0

50

100

150

200

250

2009 2010 2011 2012 2013

Profit (BWP m) and ROE (%)

Attributable profit ROE

Impressive growth in attributable profits over the past 5 years

ROE flat due to increase in shareholder funds on the back of retention of profits coupled with share conversion by IFC in 1H-2013.


33

Attributable profits per entity

BancABC Bots 49%

BancABC Moz 3%

BancABC Tanz (6%)

BancABC Zam 16%

BancABC Zim 38%

2013 PAT

94

18

(39)

36

103

153

9

(20)

50

118

(50)

-

50

100

150

200

BancABCBotswana

BancABCMozambique

BancABCTanzania

BancABCZambia

BancABCZimbabwe

Dec-12 Dec-13

2012 and 2013 PAT


34

Net interest income

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2009 2010 2011 2012 2013

BW

P '000

Net int BWP'000 NIM before impairments NIM after impairments

Phenomenal growth in net interest income – up by 50%

NIM before impairment increased to 7.7% but down to 5.2 % after factoring in impairments


35

Net interest income per entity

NII boosted by consumer lending in Botswana and Zimbabwe

Zambia NII affected by capping of interest rates by the Government

Tanzania contribution low due to lower loan book

Botswana 37%

Mozambique 12%

Tanzania 4%

Zambia 8%

Zimbabwe 39%


36

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2009 2010 2011 2012 2013

Cre

dit loss

ratio

NPL r

atios

NPL and credit loss ratios

Gross NPL ratio Net NPL ratio Credit loss ratio

Credit loss ratios

Gross NPL increased marginally from 9.2% to 9.8% in 2013

However, net NPLs down to 4.8% from 6.1% in 2012

More aggressive provisioning saw credit loss ratio increase to an all time high of 3.3%


37

Impairments and credit loss ratio

Impairments high with increased non-performing loans

Significant provisions made in Tanzania, Zimbabwe and Mozambique

51

16

80

138

328

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

-

50

100

150

200

250

300

350

2009 2010 2011 2012 2013

BW

P 'm

illio

n

Impairments

Impairments Credit loss ratio


38

Asset quality and impairments

BWP’ million 2013 2012 2011 2010 2009

Gross loans 11,166 9,460 6,295 3,217 2,130

Non-performing loans 1,118 875 418 268 204

Impairments 611 316 218 138 135

Portfolio impairments 94 78 45 17 13

Specific impairments 517 238 173 121 122

Impairment charge 324 138 80 16 51

NPL as a % of gross loans 9.8% 9.2% 6.6% 8.2% 9.6%

Credit loss ratio 3.3% 1.8% 1.7% 0.6% 2.4%

Implied loss given default 45% 27% 41% 45% 60%

NPL coverage ratio at 55% up from 36% in prior year


39

Asset quality per business class

Per segment Gross loans NPL NPL ratio

Corporate lending 5,382 923 17.1%

Consumer & retail lending 4,711 141 3.0%

Instalment finance 670 46 6.9%

Mortgage lending 349 7 2.1%

Commercial & property finance 54 1 1.0%

Total 11,166 1,118 10%

Substantial NPLs in Corporate Lending

Relatively good quality in Instalment Finance, Retail and Consumer Lending as well as Mortgage Lending


40

Impairment per entity

Significant impairments recorded in Zimbabwe, Mozambique and Tanzania

The 3 entities accounted for 82% of impairment for the year

5 customers account for 73% of the impairments

42

51

9

7 92

127

BancABC Botswana

BancABC Mozambique

BancABC Tanzania

BancABC Zambia

BancABC Zimbabwe

Head office entities


41

What we are doing to address impairments

Improving credit management from granting to collection

Reducing single obligor limits

Improving documentation

Increasing security so that loss given default is lower

More reliance on cash flows and less on security

Regimented approach to credit management

Creation of special operations to manage delinquent accounts

Character, character, character


42

Non Interest Revenue

(100,000)

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2009 2010 2011 2012 2013

BW

P '0

00

Fees and commissions Trading income Gains on investment activities MTM - investment property Other income

Good momentum in non interest revenue, with commissions and fees boosted by consumer banking activities

Resilient growth in trading income despite shrinking margins across subsidiaries


43

Non interest revenue per entity

BWP‘ million % change 2013 2012

BancABC Botswana 30 94 72

BancABC Mozambique 32 89 67

BancABC Tanzania 27 68 54

BancABC Zambia 44 158 110

BancABC Zimbabwe (7) 197 212

Banking operations 18 606 515

Head office entities 126 86 38

Non interest Revenue 25 692 553

With the exception of BancABC Zimbabwe, all entities recorded impressive growth in NIR


44

Operating costs and cost to income ratio

Cost to income ratio trending downwards on the back of increased income

Operating expenses higher due to increased number of staff and branches

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

-

200

400

600

800

1,000

1,200

2009 2010 2011 2012 2013

BW

P 'm

illio

n

Opex (BWP'million) Cost to Income Ratio (%)


45

Operating expenses per category

Staff costs constitute 39% of total operating expenses

-

200

400

600

800

1,000

1,200

2009 2010 2011 2012 2013

BW

P 'm

illio

n

Staff costs Administrative costs IT Depreciation Premises Marketing

29%


46

Staff numbers by entity

Major contributor to costs, staff numbers up 15% from 1,310 in 2012 to 1,501 in 2013

234

166 135

211

507

57

284

205 212 221

514

65

0

100

200

300

400

500

600

Botswana Mozambique Tanzania Zambia Zimbabwe ABCH

Human Capital

2012 2013


47

Operating Expenses per Entity

BWP‘ million % Change 2013 2012

BancABC Botswana 49 246 166

BancABC Mozambique 27 146 115

BancABC Tanzania 30 128 98

BancABC Zambia 18 148 126

BancABC Zimbabwe 30 350 270

Banking operations 31 1,018 775

Head office entities 3 98 94

Total Operating expenses 28 1,116 869

Increase across all entities due to increased activities as a result of additional branches and higher staff numbers


48

Balance Sheet- BWP

% Change Dec-13 Dec-12

Cash & cash equivalents 24 2,304 1,859

Financial assets 24 1,617 1,301

Loans & advances 15 10,555 9,144

Property & equipment 11 887 798

Other assets 38 421 306

Total assets 18 15,784 13,408

Deposits 14 12,209 10,675

Borrowed funds 45 1,759 1,213

Other liabilities 1 368 364

Ordinary shareholders equity 27 1,450 1,137

Minority interest (110) (2) 19

Total liabilities & equity 18 15,784 13,408

Continued to strengthen our balance sheet, growth of 18%

Progress on loans & advances

Deposit mobilization a key focus area

Increased cash and short term funds

Strong capital footing


49

Balance sheet- USD

% Change Dec-13 Dec-12

Cash & cash equivalents 10 263 239

Financial assets 10 184 168

Loans & advances 2 1,203 1,177

Property & equipment (2) 101 103

Other assets 22 48 39

Total assets 4 1,799 1,726

Deposits 1 1,392 1,374

Borrowed funds 29 201 156

Other liabilities (17) 41 48

Ordinary shareholders equity 13 165 146

Minority interest (109) (0.2) 2

Total liabilities & equity 4 1,799 1,726

Continued to strengthen our balance sheet, growth of 4%

Progress on loans & advances

Deposit a key focus area

Increased cash and short term funds

Strong capital footing

Depreciation of BWP affected USD numbers


50

Balance sheet

Growth recorded on all interest earning asset categories. Overall 18% up

Loans up by 15%, whilst cash and liquid assets grew by 24%

1,859 2,304

1,301 1,617

9,144

10,555

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2012 2013

BW

P 'm

illi

on

Total Earning Assets

Cash & cash equivalents Financial assets Loans & advances


51

Balance sheet

18% increase in interest bearing liabilities (deposits, up 14% and 45% increase in borrowed funds)

10,675 12,209

1,213

1,759

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2012 2013

BW

P 'm

illio

n

Liabilities

Deposits Borrowed funds


52

Loans per entity

BWP‘ million Dec-13 Dec-12 % change 5 yr CAGR

BancABC Botswana 3,750 3,411 10 57%

BancABC Mozambique 1,471 877 68 40%

BancABC Tanzania 575 747 (23) 4%

BancABC Zambia 1,390 1,034 34 47%

BancABC Zimbabwe 3,074 2,981 3 136%

Banking entities 10,260 9,050 13 53%

Head office entities 295 94 209 28%

Total loans 10,555 9,144 15% 52%

Significant growth registered in Mozambique and Zambia

Tanzania loan book regressed, after transfer of loans to TDFL accounted for in “Head office entities”


53

Loans and advances

BWP' million Dec-13 Dec-12 % Change

Corporate lending 5,382 4,612 17

Consumer & retail lending 4,711 3,965 19

Instalment finance 670 561 19

Mortgage lending 349 268 30

Commercial & property finance 54 54 -

Gross loans & advances 11,166 9,460 18

Less: Credit impairments (611) (316) 93

Net loans & advances 10,555 9,144 15

Growth registered in Corporate lending as well as consumer lending

Corporate lending contributed 48% to total loans and advances

Consumer loans contribution at 42%, up from 41% in 2012


54

Deposits

BWP'million Dec-13 Dec-12 % change 5 yr CAGR

BancABC Botswana 4,726 4,262 11 35%

BancABC Mozambique 2,321 1,355 71 30%

BancABC Tanzania 1,298 1,148 13 18%

BancABC Zambia 1,155 835 38 53%

BancABC Zimbabwe 2,709 3,075 (12) 81%

Total deposits 12,209 10,675 14 38%

With the exception of BancABC Zimbabwe strong growth registered across the board. Notably in BancABC Mozambique and BancABC Zambia

Zimbabwe decreased by 12%, but picked up after 1H-2013

Impressive growth in retail deposits with BancABC Botswana and BancABC Mozambique leading the way

Wholesale deposits at 88% continue to contribute significantly to total deposits


55

Well capitalized banking operations

BancABC Zambia and BancABC Zimbabwe met the stringent capital requirements;

BancABC Tanzania capitalized in July 2013 and CAR at 13.18% which is within regulatory threshold of 12%

686

291 197

825

748

19% 15%

13%

57%

16%

0%

10%

20%

30%

40%

50%

60%

-

100

200

300

400

500

600

700

800

900

BancABC Botswana BancABCMozambique

BancABC Tanzania BancABC Zambia BancABC Zimbabwe

BW

P 'm

illio

n

Capital Adequacy Ratio

Capital CAR

(US$ 33m) (US$ 23m)

(US$ 94m)

(US$ 85m) (US$ 78m)


56

Strategy & Prospects

ABCH Group CEO, Mr. Doug Munatsi


Complete retail branches roll out and increase alternative channels through partnerships

Raise tier I capital of US$100m Increase minimum capital in each subsidiary to between US$50m and US$100m by 2015

Arrange credit lines of US$200m to US$300m

Target cost to income ratio of under 50%, in all banking operations by 2015

Grow market share to 5% -10% in all banking operations by 2015

57

Short to medium term objectives

Market share

Costs

Funding

Channels


58

Dividend Declaration

In accordance with Group Policy, a dividend of 4.5 thebe (0.5 US cent) to be paid on 2 May 2014 to shareholders on the register on 18 April 2014

Total dividend for the year will be 18.5 thebe (2012: 16 thebe) which is approximately 2.1 cents (2012: 2.1 US cents)

abc holdings 2014 results presentation v07.2

Business

growth us

botswana gdp

measured growth

impressive growth

zambia gdp

zimbabwe gdp

tanzania gdp

mozambique gdp