Interim results presentationFor the period ended 31 March 2003

2

Headline earnings per share of 67,6 cents Net asset value per share of 545,6 cents per share Risk-adjusted revenue up 30% to R1 231 million Interim dividend up 108% to 25 cents R209,5 million reduction in NPLs in six months Group capital ratio at 44% and R1 billion in cash ROA at 10,3% ROE at 25,8%

Features

3

Market conditions

Economic landscape positive• Tax relief for individuals announced• Inflation declining• Interest rate cuts expected

Credit bubble working through Lending remains cautious Competitive landscape benign with limited competition Financial services charter development on track Usury act review should result in a robust regulatory

framework

4

Headline earnings and dividends

67,6

58,8

45,6

67,260,9

25,018,0

12,010,015,0

0

10

20

30

40

50

60

70

80

Mar '01 Sep '01 Mar '02 Sep '02 Mar '03

Earnings per share Dividends per share

Cents

59,2

45,2

Restatement effect

5

RoE/RoA model

Interest marginAssurance marginOther income

Bad debts to advances

Risk adjusted margin

Costs to advancesFinancing to advances

Tax

Advances/total assets

RETURN ON ASSETS

GEARING

RETURN ON EQUITY

6 months ended 31 March 2003

40,3%4,1%6,3%

50,7%

(7,7%)

Bad debts/Margin

equals

19,0%

Rsk adj cost/Inc

less

37,4%43,07%

Cost/Income

44,1%less(19,0%)

(5,9%)equals 18,3%

multiply63%

11,54%multiply89,0%

=10,27%multiply

2,5=

25,8%

6 months ended 31 March 2002

39,4%4,9%7,3%

51,6%

(11,9%)

Bad debts/Margin

equals

30,2%

Rsk adj cost/Inc

less

35,9%39,73%

Cost/Income

46,6%less(18,5%)

(6,3%)equals 15,0%

multiply62%

9,25%multiply84,9%

=7,85%

multiply2,8

=21,9%

Portfolio trends

7

Portfolio trends

Flat advances book:• Saambou and Persal run down• Write-offs• Cautious advances growth as credit criteria

are relaxed incrementally• Continuing deliberate swing from payroll

to retail business Saambou acquisition doing well

8

Jun'00

Sep'00

Dec'00

Mar'01

Jun'01

Sep'01

Dec'01

Mar'02

Jun'02

Sep'02

Dec'02

Mar'03

Payroll Retail

* Persal consolidations

Portfolio trendsThe move from payroll to debit order products

9

Portfolio trendsGross advances portfolio mix

704880

204209229209

2 6013 037

3 4523 5793 6024 383

2721 5241 181

1 881

1 9762 396

0

1000

2000

3000

4000

5000

6000

7000

8000

Sep '00 Mar '01 Sep '01 Mar '02 Sep '02 Mar '03

SMME Payroll business Retail/debitorder business PLB

Rand million

10

Portfolio trendsAfrican Bank walk forward analysis

R760 million portfolio reduction

Cash build-up

R millions Core lending Persal Saambou Total books PLB

Gross advances as at 30 September 2002 3 084 305 731 559 2 396 266 6 212 131New loans granted 1 005 944 0 0 1 005 944Net receipts (721 532) (107 105) (289 889) (1 118 526)Interest & charges accrued 538 752 60 943 279 114 878 809Gross cash receipts (1 260 284) (168 048) (569 003) (1 997 335)Bad debts written off (188 095) (44 376) (130 152) (362 623)

Balance as at 31 March 2003 3 180 622 580 078 1 976 226 5 736 926

11

Portfolio trendsExtending the market for unsecured credit

Over-borrowed segment

Performing segment

(ABIL’s main market)

Under-serviced segment

Collections and rehabilitation

New products and channels

Credit quality

13

Credit quality

Leading credit indicators all positive Overextension to last 18 months Overall NPLs to come down slowly Collections making steady progress in all its activities Persal cancellations down to 348 (March 2003)

from 3 464 (March 2002) New admin orders down to 1 452 (March 2003)

from 2 114 (March 2002)

14

Credit qualityCoverage ratios

Mar 03 Sept 02

R 000’s R 000’sAdvancesPerforming 3 882 333 4 176 978Non-performing 2 780 139 2 989 662Total 6 662 472 7 166 640

Total provisions and reserves 2 190 141 2 375 905% %

Total provisions and reserves 32,9 33,2NPLs 41,7 41,7NPL coverage 78,8 79,5I/S charge for bad debts 7,7 10,6Bad debt write-offs 12,2 12,2

15

243

1 3721 4331 381

1 1561 2991 382

252228

0

500

1000

1500

2000

2500

3000

3500

Sep '02 Dec '02 Mar '03

African Bank PLB Specialised Lending

2 990 2 9052 780

Credit qualityNPLs declining steadily

16

Credit qualityNPL and provisioning movements

Represents:• Increased provisions for new NPLs

• Provision movements for remaining NPLs

Equals 5,3% of performing loans

SpecificNPLs provisions

Balance at 30 September 2002 2 990 2 123

Balance at 31 March 2003 2 780 1 957

(210) (166)

Bad debts write-offs (422) (422)

Movement for the period 212 256

17

Credit qualityThe movement in NPLs

New NPLs Interest and charges

NPLs

Write-offs Cash received and curing

18

Credit qualityLeading indicators point to lower risk

0

5

10

15

20

25

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2001 '01

2001 '03

2001 '05

2001 '07

2001 '09

2001 '11

2002 '01

2002 '03

2002 '05

2002 '07

2002 '09

2002 '11

Months on book

Vintage analysisNon-performing capital as a percentage of original principal debt (%)

Collections

20

CollectionsImpact growing

3,2

3,4

7,6

2,9

6,6

9,711,5

12,5

17,1

16,5

20,3

17,1

0

5

10

15

20

25

Apr'02

May'02

Jun'02

Jul'02

Aug'02

Sep'02

Oct'02

Nov'02

Dec'02

Jan'03

Feb'03

Mar'03

Percentage missed 1st instalments on payroll book(%)

21

CollectionsImpact growing

Number of PTPs honoured

0

2000

4000

6000

8000

10000

12000

14000

May'02

Jun'02

Jul'02

Aug'02

Sep'02

Oct'02

Nov'02

Dec'02

Jan'03

Feb'03

Mar'03

PTPs honoured

Num

ber

% collection rate 66,7% March 2003 (59,4% September 2002)

22

CollectionsNPL analysis

Specific March Septemberprovision 2003 2002

% R 000’s R 000’sAfrican BankCall centre 66 341 304 562 069Administration orders 61 498 529 381 711Legal book 72 1 687 965 1 818 275Pre-legal work in progress 85 861 452 1 318 818Legal collection order in place 59 826 513 499 457

70 2 527 798 2 762 055Specialised lending 73 252 341 227 607Total NPLs 70 2 780 139 2 989 662

23

CollectionsImpact growing

Legal collections portfolioRand million

51%

73%

49%

27%

200400600800

100012001400160018002000

Sep '02 Mar '03

Pre-legal work in progress Legal collection order in place

24

CollectionsCapital management

Mar ‘03 Sept ’02 Mar ‘03 Sept ‘02% % % %

Tier 1 36,4 31,3Tier 2 2,3 2,7

Total 38,7 34,0 43,6 38,1Cash reserves (R million) 1 048 835

Dividend increased by >100% to 25 cents Cautious approach to RoE optimisation Funding stability paramount

African Bank ABIL group

25

Yield on advances

5,84,68,1 5,9

9,7

19,017,918,514,013,1

10,6

0,16,9

7,79,8

18,314,825,0

23,7

25,8

1999 (12 Mths) 2000 (12 Mths) 2001 (12 Mths) 2002(12 Mths) 2003 (6Mths)

Financial expense ratio Operating expense ratio Charge for bad & doubtful debt Gross overall yield

% of gross interest-bearing advances58,4

52,7

48,2 49,050,7

26

Cost-to-income ratio

37,4%37,3%35,9%

38,7%

0

10

20

30

40

50

Sep '01 Mar '02 Sep '02 Mar '03

%

27

Business restructuring

Theta restructuring gaining momentum• CI and MCG to be divisionalised

• TSF 80% holding sold for R1,3 million to previous management

• BVI 80% holding sold for R20,7 million to previous management

Collections business doing well Integration of collections effort between

African Bank and Saambou a priority

28

Advances measured at cost; accounted for on cost amortisation basis

PLB accounted for as business combination, i.e. as if African Bank originated the loans – Sep 2002

Provisions purely based on recoveries from debtor = PV of future recoveries

General provision of R44.5 million as per SARB requirement Provisioning methodology largely consistent with previous

method = no material change; movements included in IS charge No hedges or other financial instruments

AC 133

29

Empowerment

5 pillars:

1. Representativity and human resource development – PDI representivity at Board level 40%, executive level 17%, senior management 32%, middle management 57%

2. Equity ownership – equity participation for management,amongst others

3. Access to financial services – >80% of ABIL’s business from the

marginalised community. Broaden these services even more in the future.

4. Procurement policy – Empowerment companies used for approximately 60% of discretionary procurement.

5. Community investment – African Bank Foundation  

30

General

Credit legislation review Changes to the ABIL board:

• Oshy Tugendhaft, Chairman of Moss Morris

• David Gibbon, retiring partner at Deloitte & Touche

• Ramani Naidoo, attorney and author of the book “Corporate Governance:

An essential guide for South African Companies”

• Brian Steele, previously Chief Group Financial Manager of Barloworld

• Günter Steffens – previously Dresdner Bank’s Group Representative for

Southern Africa and Geographic Head

• Tami Sokutu, currently managing director of retail banking at African Bank

31

Outlook for 2003

Lower risk environment Challenge: to maintain and grow the good customers Rehabilitation of market Further development of collections business Develop underwriting competency deeper into the market Cautious opening up of advances growth Capital management Medium term targeted cost to income ratio below 35% Targeted RoA of 10%, RoE of 30%

Thank you