Zambia National Commercial Bank Plc

Condensed statement of income

Unaudited Unaudited Audited Six Months to Six Months to Twelve Months to June 2015 June 2014 December 2014 K’000 K’000 K’000 Total income 474,551 485,588 972,116

Pro�t before income tax and exceptional items 134,588 179,895 318,051

Tax charge (46,702) (67,459) (70,631)

Pro�t attributable to Shareholders before

exceptional items 87,886 112,436 247,420

Exceptional items (net of taxation) - - (104,494)

Pro�t after exceptional items 87,886 112,436 142,926

Number of shares during the year (millions) 1,444 1,444 1,444

Earnings per share 0.06 0.08 0.10

Condensed Statement of Financial Position

Assets

Cash and Balances with Bank of Zambia 1,181,363 1,196,529 1,163,202

Loans and advances to banks 412,289 540,484 399,170

Loans and advances to customers 3,148,234 3,367,836 3,138,509

Investment securities 1,473,949 1,579,434 1,445,340

Property, plant and equipment 256,628 277,847 274,635

Other assets 213,777 188,309 242,947

Total assets 6,686,240 7,150,439 6,663,803

Liabilities

Deposits 4,860,974 5,314,215 5,053,720

Other liabilities 280,654 505,261 118,267

Deferred tax liability 32,439 34,747 32,440

Borrowed funds 466,146 359,625 458,270

Total liabilities 5,640,213 6,213,848 5,662,697

Shareholders' funds 1,046,027 936,591 1,001,106

Total liabilities 6,686,240 7,150,439 6,663,803

Condensed Statement of Cash Flow

Cash�ows from operating activities 112,920 138,251 391,195

Changes in operating assets and liabilities (344,544) (195,892) (239,826)

Cash�ows from investing activities (7,037) (248) (23,176)

Cash�ows from �nancing activities (35,119) (56,908) (2,805)

Net decrease in cash and cash equivalents (273,780) (114,797) 125,388

Cash and cash equivalents at beginning of the year 996,252 870,864 870,864

Cash and cash equivalents at end of the period 722,472 756,067 996,252

Condensed Statement of Changes in Equity

Balance at the beginning of the year 1,001,106 867,620 867,620

Total comprehensive income 88,234 112,284 176,799

Dividend paid (43,313) (43,313) (43,313)

Balance at of the period 1,046,027 936,591 1,001,106

Company Registration Number: 5387 Share Code: Zanaco ISIN:ZM0000000250 (Zanaco)

In compliance with the requirements of the securities Act Cap 354 of the Laws of Zambia and Listing Rules of the Lusaka stock Exchange, the Directors of Zanaco are pleased to announce half-year interim results for the period ended 30 June 2015

Note

The �nancial statements have been prepared in accordance with the International �nancial reporting standards (IFRS).

The Bank consolidated its shares at a ratio of 6 to 1 in March 2015. Therefore, the earnings per share (EPS) for 30 June 2015 and comparatives re�ect the e�ect of the share consolidation.

Financial Highlights

The �nancial performance of the Bank in the period under review was challenging mainly due to:

• Rising funding costs related to upwards adjustments in the statutory reserve ratios, and this was compounded by challenging macroeconomic environment;

• The impact of the depreciating kwacha on cost of external foreign currency sourced funding;

• Overall escalating cost of doing business.

Capital

During the period under review, the Bank remained well capitalized above the minimum required ratio of 10%. The shareholders’ funds increased by 4% and 12% compared to December 2014 and June 2014 respectively.

Future Outlook

We take great pride in our unique standing in the Zambian �nancial market as a Bank with the widest foot print in the country with a special focus on reaching as many ‘unbanked’ Zambians as possible.

Our mission continues to be that of making a meaningful contribution to the economy and the people of Zambia by making banking easier and more convenient for our customers.

Management has initiated a program to revitalise all sectors of the Bank to drive a sustained focus on customer service, innovation and process reengineering aimed at achieving incremental pro�tability, e�ciency and employee engagement.

BY ORDER OF THE BOARD

Interim Results for the six months ended 30 June 2015

STOCKBROKERS ZAMBIA LIMITED [MEMBER OF THE LuSE AND REGULATED BY THE SECURITIES AND EXCHANGE COMMISSION OF ZAMBIA]

LUSAKA STOCK EXCHANGE SPONSORING BROKER

T: +260-211-232456 W: www.sbz.com.zm