ABC Holdings Limited
Audited Group Results
for the year ended
31 December 2012
26 March 2013
Agenda
- Highlights
- Economic review
- Operational overview
- Financial review
- Strategy and outlook
BancABC Full Year Financial Results 2012
2
Highlights
Douglas Munatsi
BancABC Full Year Financial Results 2012
3
Financial highlights
BWP
Dec-12
Dec-11
∆
Attributable Profits
132.8m
83.0m
+60%
Dividend Per Share
0.16
0.175
-9%
232.8m
149.5m
+56%
4.88
3.99
+22%
No of shares in issue
NAV Per Share
Trend
● Strong underlying Group performance
● Improving capital base and NAV per share
● Successfully raised BWP364 million by way of rights
issue in July 2012
BancABC Full Year Financial Results 2012
4
Financial highlights
BWP
Dec-12
Dec-11
∆
PBT
212.3m
107.7m
+ 97%
PAT
135.2m
87.7m
+54%
ROE
15.3%
16.3%
-1.0%
71%
74%
-3.0%
72.1 thebe
56.6 thebe
+27%
Cost To Income
EPS
Trend
● Growth in profitability from increased business volume
● Retail expansion
● Cost to income ratio down due to higher revenues
BancABC Full Year Financial Results 2012
5
Financial highlights
BWP
Dec-12
Dec-11
∆
Total 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%
Trend
● Strong growth in volumes across the board
● Diversification into retail lending
● Successful rights issue in July 2012
BancABC Full Year Financial Results 2012
6
Operational highlights
Total retail
branches
increased from 49
in Dec-11 to 61 in
Dec-12
BancABC Full Year Financial Results 2012
Total retail
customer numbers
increased by
131% from
101,922 in Dec-11
to 235,070 in Dec12
NPLs at 9.2%
from 6.6% in prior
year, credit loss
ratio at 1.8%
compared to 1.7%
in 2011
7
Economic overview
Douglas Munatsi
BancABC Full Year Financial Results 2012
8
Global economic development
Global GDP growth to reach 3½% in 2013, up from 3¼%
Coordinated policy actions reduced acute crisis risks in the Euro area and
the US.
Emerging economies recovery being led by China, India & Brazil. Growth
is returning to healthy levels
BancABC Full Year Financial Results 2012
GDP growth in selected leading
economies
2011
2012
2013
7.9
9.0
7.8
8.2
%
9.3
11.0
3.9
3.2
3.5
3.5
2.3
2.8
3.5
2.7
1
0.9
-0.2
1.0
1.2
-0.6
2
1.7
0.2
0.3
1.0
0.9
0.6
3.0
1.8
2.3
2.0
3.1
3.6
3.7
4.3
5.0
4.5
5.9
7.0
-1.0
BancABC Full Year Financial Results 2012
10
Risks to global economy
Egypt renewed
economic/Political
deterioration
US Severe Fiscal
Stand-off
Renewed Euro
Area Stress
BancABC Full Year Financial Results 2012
Global
Economy
Japan escalation
of tensions with
China over
islands
Oil price
instability
11
Economic growth in selected
African countries
5.3
4.8
5.8
7.1
7.5
6.4
6.5
6.8
5.0
2.3
2.8
3.5
4.4
5.1
3.8
4.1
4.9
5.1
5.6
5.7
4.3
4.3
4
4.1
4
3.9
6
4.4
5.5
6.8
8
8.3
9.4
2012
6.6
6.5
%
2011
2013
8.4
10
2
0
BancABC Full Year Financial Results 2012
12
Economic growth in selected African
economies
Economic growth in SSA to improve to 5.8% in 2013
compared to 4.8% in 2012
Most countries in SSA vulnerable to any global downturn
Strong growth in ABC markets although Zim slowed down
from near double digit level in 2011
BancABC Full Year Financial Results 2012
13
Inflation developments in selected
markets in 2012
20
16.1
Inflation
16
Double digit YoY inflation
level in Tanzania
12
Above target inflation in
Botswana & South Africa
8
Inflation breached 7%
mark in Dec-12 in Zambia
Avg Inflation
7.6
6.6
Low inflation environment
in Zimbabwe &
Mozambique
5.7
3.7
4
2.6
Botswana
Mozamb
Tanzania
BancABC Full Year Financial Results 2012
Zambia
Zimbabwe
SA
0
14
Monetary policy rates
Botswana
(Bank Rate)
Mozambique
( Overnight Rate)
Tanzania
(91-dy TB Rate)
Zambia
(BoZ Policy Rate)
Zimbabwe
(91-dy TB Rate)
Policy
Rate %
Dec-11
Policy
Rate %
Dec-12
%
Change
9.5
9.5
0.0
15.0
9.5
-5.50
 Policy easing cycle – interest rate
lowered 5-times during 2012
12.61
11.89
-0.72
TB Rate was broadly stable indicating
neutral policy stance
 New BoZ rate introduced in Apr-12
 BoZ rate increased so as to combat
inflation
9.0
9.25
+0.25
----
8.51
----
BancABC Full Year Financial Results 2012
Comment
 Policy rate fixed at 9.5% since Dec-10
 Maiden TB issued in Oct-12
 Low uptake due to tight liquidity
15
Lending and deposit interest rates
Botswana
Mozambique
12
12
20
10
20
Prime Lending
Prime Lending
18
18
16
16
14
14
12
12
10
10
8
8
10
8
8
BancABC Full Year Financial Results 2012
Dec-12
Aug-12
Apr-12
Dec-11
Aug-11
Apr-11
Dec-10
Dec-12
Aug-12
Apr-12
Dec-11
Aug-11
Apr-11
Dec-10
Aug-10
Apr-10
4
Dec-09
4
Aug-10
Deposit Rate
Apr-10
6
Dec-09
6
16
Lending and deposit interest rates
Tanzania
Zambia
16
16
Prime Lending
14
22
22
18
18
14
14
10
10
14
12
12
10
10
8
8
Deposit Rate
Deposit Rate
BancABC Full Year Financial Results 2012
Dec-12
Aug-12
Apr-12
Dec-11
Aug-11
Apr-11
Dec-10
Aug-10
6
Apr-10
6
Dec-09
Dec-12
Aug-12
Apr-12
Dec-11
Aug-11
Apr-11
Dec-10
Aug-10
Apr-10
6
Dec-09
6
17
Lending and deposit interest rates
40
40
Zimbabwe
35
Lending Rates
35
30
25
20
30
25
20
15
15
10
10
Savings rates
5
Quoted lending rates vary widely in
Zimbabwe
This is a reflection of different cost
structures among banks in mobilising
deposits
The Central Bank recently introduced
caps and floors on interest rates
5
BancABC Full Year Financial Results 2012
Dec-12
Oct-12
Aug-12
Jun-12
Apr-12
Feb-12
Dec-11
Oct-11
Aug-11
Jun-11
Apr-11
Feb-11
0
Dec-10
0
18
Exchange rate movement US$ vs. ZAR
US$/ZAR
9.0
9.0
8.7
8.7
8.4
8.4
H2 Average
8.1
ZAR volatility persisted in 2012
influenced by both domestic & global
factors
In 2013, ZAR broadly trading
in the 8.75 – 9.25 range vs. USD
8.1
H1 Average
7.8
7.8
BancABC Full Year Financial Results 2012
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
7.2
Mar-12
7.2
Feb-12
7.5
Jan-12
7.5
19
Exchange Rate Movement vs. USD
0.6
ZMK
2012
6.7
2011
TZS
 Dec-11 to Dec 12, currencies
MZN
-10
Appreciation
MZN (9%)
ZAR (3.7%)
BWP (3.3%)
ZMK (0.6%)
3.3
16.9
 TZS was broadly stable
supported by Central Bank
intervention
3.7
ZAR
-20
o
o
o
o
9
BWP
-17.5
depreciated vs. USD:
7.7
23.6
0
10
20
30
Depreciation
BancABC Full Year Financial Results 2012
20
Exchange Rate Movement per Pula
BWP/MZN
Dec-12
Oct-12
Aug-12
Jun-12
Apr-12
Feb-12
Dec-11
Oct-11
Dec-12
Oct-12
Aug-12
Jun-12
Apr-12
Feb-12
Dec-11
Oct-11
Aug-11
Jun-11
Apr-11
Feb-11
Dec-10
630
Aug-11
660
Jun-11
690
Apr-11
720
Dec-10
750
5.5
BWP/TZS
250
240
230
220
210
200
190
Feb-11
BWP/ZMK
780
ZMK & TZS appreciated against the
BWP over the period Dec-11 to Dec-12
5.0
 MZN weakened by 5.5% vs. BWP
4.5
4.0
 ZAR has dominant weight in BWP
basket of currency
3.5
Dec-12
Oct-12
Aug-12
BancABC Full Year Financial Results 2012
Jun-12
Apr-12
Feb-12
Dec-11
Oct-11
Aug-11
Jun-11
Apr-11
Feb-11
Dec-10
3.0
 ZAR weakness transmitted to BWP
21
Financial inclusion levels in selected
African countries
SA '11
63%
Botswana '09
5% 5%
41%
Nigeria '10
30%
Zimbabwe '11
24%
Kenya '09
23%
Malawi' 08
12%
Mozambique
'09
12%
0%
Banked
9%
8%
47%
22%
40%
26%
33%
19%
55%
14%
4%
33%
17%
18%
7%
14%
Tanzania '09
6%
14%
19%
Zambia '09
18%
27%
63%
28%
56%
1% 9%
78%
20%
40%
Non-banked formal
BancABC Full Year Financial Results 2012
60%
Informal Only
80%
100%
Excluded
22
Financial intermediation – Credit to
GDP Ratio
Lending to privates
sector exceeded
2008/09 pre-crisis
level
2012
Zambia
2009
Tanzania
Financial
intermediation in
ABC markets still
lags that of middle
income countries
such as SA
Botswana
Mozambique
Zimbabwe
Majority of the
population remains
unbanked
SA
0
20
40
60
80
% of GDP
BancABC Full Year Financial Results 2012
23
Banking assets and deposits
Exponential market growth
across ABCH footprint
Tanzania is the largest market
followed by Botswana and
Mozambique
BancABC Full Year Financial Results 2012
24
Market share
● Growing market share, especially in Botswana and Zimbabwe
● Need to grow to critical mass in other markets as well
BancABC Full Year Financial Results 2012
25
Operational overview
Francis Dzanya
BancABC Full Year Financial Results 2012
26
BancABC Botswana highlights
Outstanding
Performance
Income statement
• NII: 218% higher
• Balance sheet growth –
consumer lending
• Non-interest income: up 57%
from increased customer
transactions
BancABC Full Year Financial Results 2012
Statistics
2011
2012
change
Staff compliment
187
234
+47
Total Branches
4
6
+2
Total Customers
9177
28,735
+19558
Loans and Deposits
• Loans: up BWP1.7bn to
BWP3.4bn
• Payroll deduction loans
• NPLs: down from 2.2% in
Dec-11 to 1.2% in Dec-12
• Deposits: up BWP1.7bn to
BWP4.3bn
Outlook
• Consolidation of growth to
date
• Consumer lending and home
loans
• Increased cross-sell of retail
products
• Risk management (credit,
liquidity and operational)
27
BancABC Mozambique highlights
Below Expectation
Revenue
• NII: +52%
• Balance sheet growth
• Higher margins
• Impairments: up from BWP5m
to BWP18m
• Non-interest income: +3%
lower Fx trading income
BancABC Full Year Financial Results 2012
Statistics
2011
2012
change
Staff compliment
125
166
+41
Total Branches
6
8
+2
Total Customers
4,516
8,125
3,609
Loans and Deposits
• Loans: +BWP115m to
BWP877m
• Gross NPLs increased from
4.5% to 8.4%
• Deposits: + BWP139m to
BWP1.2bn
Outlook
• Retail roll out – cards, internet
banking, group loan schemes
• Manage NPLs
• IFC SME Program
28
BancABC Tanzania highlights
Below Par
Performance
Revenue
• NII: -42% from BWP51m to
BWP29m
• High cost of funds and larger
NPL book
• Higher impairments
• Non Interest Income: +42% high bond and Fx trading
volumes
BancABC Full Year Financial Results 2012
Statistics
2011
2012
change
Staff compliment
103
135
+32
Total Branches
4
5
+1
Total Customers
1,601
5,979
+4,378
Loans and Deposits
• Loans: +BWP174m to
BWP573m
• NPLs up from 15% to 33%
• Deposits: +BWP87m to
BWP1.bn
Outlook
• Consumer Lending following
acquisition of payroll
deduction code
• Increased transactions with
small traders association
• Embed rollout of retail
products
29
BancABC Zambia highlights
Solid Performance
Revenue
• NII: +6% despite cap on
interest rates
• Non-interest income: +224%
increased transaction volumes
• Growth in consumer loans
• Increased trade finance
transactions
BancABC Full Year Financial Results 2012
Statistics
2011
2012
change
Staff compliment
187
211
+24
Total Branches
19
21
+2
Total Customers
52,512
82,449
+29,937
Loans and Deposits
• Loans: +BWP0.5bn to
BWP1.0bn
• Growth mostly on consumer
lending book
• NPLs: down from 4.5% to
3.3% in Dec-12
• Deposits:+ BWP0.3bn to
BWP0.8bn
Outlook
• Consolidate growth and
improve funding mix
• Grow deposit base
• Continue growing wholesale
business
• Embed rollout of retail
products – increase cross-sell
30
BancABC Zimbabwe highlights
Robust Performance
Revenue
• NII: 87% higher
• Balance sheet growth - group
scheme loans
• Impairments up 32%
• Non-interest income: up 65%
from increased customer
transactions
BancABC Full Year Financial Results 2012
Statistics
2011
2012
change
Staff compliment
352
507
+155
Total Branches
16
21
+5
Total Customers
34,966
109,782
+74,816
Loans and Deposits
• Loans: +BWP1bn to BWP3bn
• Liquidity crunch
• NPLs: up from 5.8% in Dec-11
to 14.2%
• Deposits:+ BWP1.1bn to
BWP3.1bn
Outlook
• Banc Easy Group loan
schemes
• Mortgage loans and VAF,
• Embed rollout of retail
products – increase cross-sell
• Risk management (credit,
liquidity and operational)
31
Financial review
Beki Moyo
BancABC Full Year Financial Results 2012
32
Income statement
BWP'000
Dec-12
%∆
Dec-11
673,034
63%
412,362
(138,172)
-74%
(79,537)
534,862
61%
332,825
551,700
69%
325,984
1,086,562
65%
658,809
(868,659)
-59%
(545,948)
217,903
93%
112,861
(5,630)
-9%
(5,177)
212,273
97%
107,684
(77,108)
-286%
(19,986)
135,165
54%
87,698
132,774
60%
83,002
2,391
-49%
4,696
Basic EPS (thebe)
72.1
27%
56.6
Diluted EPS (thebe)
66.5
17%
56.6
Dividend per share (thebe)
16.0
-9%
17.5
Net interest income
Impairment of loans
NII after impairment of
loans
Non-interest income
Total income
Operating expenses
Net income from operations
Share of loss of associates
Profit before tax
Tax
Profit for the year
Attributable to:
-Ordinary shareholders
-Minority interests
BancABC Full Year Financial Results 2012
Strong performance driven
by growth in consumer
lending in Botswana,
Zambia and Zimbabwe
Higher impairments –
growth in loan book and
higher NPLs in Tanzania
and Zimbabwe
Expansion generated higher
costs, but cost to income
ratio declined
Dividends lower due to
increased no of shares
33
Income statement
USD'000
Net interest income
Impairment of loans
NII after impairment of
loans
Non-interest income
Total income
Operating expenses
Net income from operations
Share of loss of associates
Dec-12 % ∆
Dec-11
88,571
47%
60,329
(18,183)
-56%
(11,637)
70,388 45%
48,692
72,604
52%
47,692
142,992 48%
96,384
(114,316)
-43%
(79,873)
28,676 74%
16,511
(741)
2%
(757)
Profit before tax
27,935 77%
15,754
Tax
(10,147) -247%
(2,924)
Profit for the year
17,788 39%
12,830
Attributable to:
-Ordinary shareholders
17,473
44%
12,143
-Minority interests
315
-54%
687
Basic EPS (US cents)
9.5
14%
8.3
Diluted EPS (US cents)
8.7
5%
8.3
Dividend per share (US cents)
2.1
-13%
2.4
BancABC Full Year Financial Results 2012
Strong performance driven
by growth in consumer
lending in Botswana,
Zambia and Zimbabwe
Higher impairments –
growth in loan book and
higher NPLs in Tanzania
and Zimbabwe
Expansion generated higher
costs, but cost to income
ratio declined
Dividends lower due to
increased no of shares
34
Profitability trends
Growth in core earnings as
retail contribution increases
2009 dip in line with
commencement of retail
rollout
ROE marginally down –
higher capital base and loss
in Tanzania
BancABC Full Year Financial Results 2012
35
Income statement – segmental analysis
Attributable profits
BWP'000
2012
% Cont
2011
Botswana
94,434
44%
28,005
20%
237%
Mozambique
17,562
8%
28,863
20%
-39%
(38,579)
(18%)
(3,326)
-2%
>-100%
36,004
17%
31,872
23%
13%
103,351
49%
55,090
39%
88%
Banking Operations
Head office & consolidation
adjustments
212,772
100%
140,504
100%
51%
(79,998)
(57,502)
-39%
Total
132,774
83,002
60%
Tanzania
Zambia
Zimbabwe
High profit growth in
Botswana and
Zimbabwe – consumer
lending
BancABC Full Year Financial Results 2012
Zambia growth despite
tax charge in current
year – prior year tax
credit
% Cont % change
Challenges in Tanzania
and to a lesser extent
Mozambique
36
Income statement – segmental analysis
Total income (exl. impairments)
BWP'000
2012
2011
Wholesale
Retail
Wholesale
Retail
BancABC Botswana
185,858
138,856
114,301
11,040
BancABC Mozambique
138,817
20,796
114,796
11,273
BancABC Tanzania
70,691
12,575
83,517
5,071
BancABC Zambia
61,203
120,299
33,581
69,156
255,610
183,374
186,794
63,480
712,179
475,900
532,989
160,020
36,655
-
45,337
-
748,834
475,900
578,326
160,020
BancABC Zimbabwe
Banking Operations
Head Office & Consolidation
adjustments
Total Income
● Retail income almost tripled from growth in Botswana and
Zimbabwe – retail now contributing 39% (2011: 22%)
● Wholesale income growth, except in Tanzania
BancABC Full Year Financial Results 2012
37
Income statement – segmental analysis
Net interest income
BWP'000
2012
% change
2011
252,338
216%
79,882
BancABC Mozambique
92,492
52%
60,703
BancABC Tanzania
29,391
(42%)
50,673
BancABC Zambia
71,759
4%
68,905
226,974
87%
121,575
672,954
76%
381,738
80
(100%)
30,624
673,034
63%
412,362
BancABC Botswana
BancABC Zimbabwe
Total Banking Operations
Head office
Total
● Growth in Botswana, Mozambique and Zimbabwe – higher volumes
and better margins
● Zambia – restrictions on interest rate
● Tanzania – high cost of funds and higher NPLs
BancABC Full Year Financial Results 2012
38
Income statement – net interest income
● Improving margins despite setback in Tanzania
● Consumer lending improved margins in Botswana, Zambia and
Zimbabwe
● Mozambique had lower cost of funds
● NII trending upwards – higher volumes
BancABC Full Year Financial Results 2012
39
NPLs and credit losses
● Gross NPL ratio higher at 9.2% (2011: 6.6%) – Tanzania and
Zimbabwe
● Net NPLs at 6.1% compared to 3.3% in prior year
● Credit loss ratio consequently higher – 1.8% (2011: 1.7%)
BancABC Full Year Financial Results 2012
40
Contingent liability
Client granted loan facility in
late 2010 for diamonds
purchase
Client defaulted and
renegotiated facility in 2011.
Client defaulted again and
settlement agreed at $10.8m
in early 2012
In 2012, client paid $6m of
this renegotiated amount
and defaulted on balance
In January 2013, BancABC
Zimbabwe intercepted funds
and applied funds to full
facility + penalty interest
In February 2013, third party
(beneficiary) obtained
judgement against Bank.
Bank appealed to Supreme
Court and judgement has
been reserved
Bank is on a strong position
to win the case. If we lose
the case and client is not
able to pay, net after tax
impairment could be BWP37
million.
BancABC Full Year Financial Results 2012
41
Income 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 income
skewed more towards fees/commissions
BancABC Full Year Financial Results 2012
42
Operating expenses per entity
Increase in operating
expenses across the
board due to Retail & SME
Banking expansion
BWP'000
BancABC Botswana
BancABC Mozambique
BancABC Tanzania
Zambia
Zimbabwe
Banking operations
Head office
Total
BancABC Full Year Financial Results 2012
2012
165,510
115,436
98,461
125,951
270,219
775,577
93,082
868,659
% change
97%
43%
59%
56%
82%
70%
3%
59%
2011
84,024
80,798
61,762
80,674
148,510
455,768
90,180
545,948
43
Income statement – cost to income ratio
● Introduction of Retail Banking and dollarisation in Zimbabwe
increased cost to income ratio in 2009
● Retail contribution to income increasing thereby resulting in lower
cost to income ratio
BancABC Full Year Financial Results 2012
44
Income statement – opex per entity
Operating Expenses
Wholesale
BWP'000
Retail
Dec-12
Dec-11
Dec-12
Dec-11
BancABC Botswana
62,137
55,282
103,373
28,742
BancABC Mozambique
66,973
53,409
48,463
27,389
BancABC Tanzania
70,572
47,613
27,889
14,149
BancABC Zambia
65,467
29,612
60,484
51,062
123,523
102,398
146,696
46,112
388,672
288,314
386,905
167,454
85,211
83,380
7,871
473,883
371,694
394,776
BancABC Zimbabwe
Banking Operations
Head office
Total
6,800
174,254
● Retail expense now 45% of total operating expenses compared to
32% in prior year
● Wholesale expenses up 27%, retail expenses up 127%
BancABC Full Year Financial Results 2012
45
Balance sheet overview
Balance sheet grew by 46% from BWP9.2 billion to
BWP13.4 billion
Deposits grew by 45% from BWP7.4 billion to BWP10.7
billion
Loans and advances grew 50% from BWP6.1 billion to
BWP9.1 billion mostly from growth in Botswana
Total Equity grew by 89% from BWP0.6 billion to BWP1.2
billion
BancABC Full Year Financial Results 2012
46
Balance sheet
BWP'000
2012
% chg
2011
Cash and cash equivalents
1,859,269
50%
1,243,431
Financial assets
1,312,032
35%
972,511
Loans and advances
9,144,042
50%
6,077,399
Property and equipment
797,983
23%
647,263
Other assets
294,439
21%
243,284
13,407,765
46%
9,183,888
10,675,111
45%
7,374,700
1,212,731
24%
981,788
363,839
69%
214,833
12,251,681
43%
8,571,321
1,137,044
91%
596,811
19,040
21%
15,756
1,156,084
89%
612,567
13,407,765
46%
9,183,888
Total assets
Deposits
Borrowed funds
Other liabilities
Total liabilities
Equity -ordinary shareholders
Minority interest
Total equity
Total liabilities & equity
BancABC Full Year Financial Results 2012
Total assets -2012 (%)
28%
72%
Wholesale
Retail
Total Assets-2011 (%)
14%
86%
Wholesale
Retail
47
Balance sheet
USD'000
2012
% change
2011
Cash and cash equivalents
239,288
44%
166,122
Financial assets
168,859
30%
129,927
1,176,838
45%
811,940
102,700
19%
86,475
37,894
17%
32,504
1,725,579
41%
1,226,968
1,373,887
39%
985,260
Borrowed funds
156,079
19%
131,167
Other liabilities
46,825
63%
28,702
1,576,791
38%
1,145,129
146,338
84%
79,734
2,450
16%
2,105
148,788
82%
81,839
1,725,579
41%
1,226,968
Loans and advances
Property and equipment
Other assets
Total assets
Deposits
Total liabilities
Equity -ordinary shareholders
Minority interest
Total equity
Total liabilities & equity
BancABC Full Year Financial Results 2012
Total assets -2012 (%)
28%
72%
Wholesale
Retail
Total Assets-2011 (%)
14%
86%
Wholesale
Retail
48
Balance sheet – loans & deposits
12,000
10,000
8,000
Loans
6,000
Deposits
4,000
2,000
2008
50% YoY
increase in
loans
2009
2010
42% CAGR
BancABC Full Year Financial Results 2012
2011
2012
45% YoY
increase in
deposits
39% CAGR
49
Deposits per entity
Strong growth in
deposits especially in
Botswana and
Zimbabwe
BWP'000
2012
% change
2011
BancABC Botswana
4,262,406
66%
2,563,126
BancABC Mozambique
1,355,372
11%
1,216,349
BancABC Tanzania
1,147,955
8%
1,060,686
834,141
52%
548,120
3,075,237
55%
1,986,419
10,675,111
45%
7,374,700
BancABC Zambia
BancABC Zimbabwe
Total deposits
BancABC Full Year Financial Results 2012
50
Balance sheet – segmental analysis
Loans & Advances
BWP'000
Wholesale
Retail
2012
2011
2012
2011
1,350,606
1,289,565
2,060,231
368,535
BancABC Mozambique
739,157
690,670
137,651
71,227
BancABC Tanzania
667,658
525,984
79,159
46,713
BancABC Zambia
447,851
215,282
585,864
361,628
2,155,878
1,654,772
824,740
378,387
5,361,150
4,376,273
95,247
474,636
5,456,397
4,850,909
BancABC Botswana
BancABC Zimbabwe
Banking Operations
Head Office entities
Total Deposits
3,687,645 1,226,490
-
-
3,687,645 1,226,490
● Rapid growth in retail loans in Botswana, Zambia and Zimbabwe
● Retail loans are now 40% of total book (2011:20%)
BancABC Full Year Financial Results 2012
51
Balance sheet – asset quality
BWP' million
2012
2011
2010
2009
2008
Gross loans
9,460
6,295
3,217
2,130
2,369
Non-performing loans
875
418
268
204
144
Impairments
316
218
138
134
119
Portfolio impairment
78
45
17
13
43
Specific impairments
238
173
121
122
76
9.2%
6.6%
8.3%
9.6%
6.1%
138
80
16
51
44
Impairment charge % loans
1.8%
1.7%
0.6%
2.4%
1.9%
Implied loss given default
27%
41%
45%
60%
53%
NPL as % of gross loans
Impairment charge
BancABC Full Year Financial Results 2012
52
Balance sheet – segmental analysis
Deposits
Wholesale
Retail
BWP'000
Dec 2012
Dec 2011
Dec 2012
Dec 2011
BancABC Botswana
3,923,493
2,418,092
338,914
145,034
BancABC Mozambique
1,020,775
991,922
334,596
224,427
BancABC Tanzania
1,076,873
1,037,774
71,082
22,912
782,493
522,046
51,648
26,074
2,885,102
1,794,548
190,135
191,871
9,688,736
6,764,382
986,374
610,318
BancABC Zambia
BancABC Zimbabwe
Total Deposits
● Deposit growth mostly in Botswana and Zimbabwe
● Growth driven by wholesale deposits
● Retail contribution still low at 9% (2011: 8%)
BancABC Full Year Financial Results 2012
53
Balance sheet – capital adequacy
Total Capital (BWP m) Capital Adequacy Ratio
Subsidiary
2012
2011
Min
2012
2011
BancABC 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%
● 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 growth
BancABC Full Year Financial Results 2012
54
Strategy and outlook
Douglas Munatsi
BancABC Full Year Financial Results 2012
55
Short to medium term objectives
Diversify funding mix
of the business –
liquidity risk
management is a focus
area for the Group
Raise additional
funding at the centre –
currently looking at a
US $100 million bond
Control impairments
downwards – manage
loan portfolio growth
Manage operational
risk as business
expands and product
range increases
Consolidate our
position as a first tier
bank in Botswana and
Zimbabwe
Turnaround Tanzania
Increase retail
penetration in
Mozambique and
continue to grow our
business in Zambia
BancABC Full Year Financial Results 2012
56
Dividend declaration
As per Group Policy, a dividend of 8 thebe (0.96
US cent) per share to be paid on 3 May 2013 to
shareholders on register on 12 April 2013
Total dividend for the year will be 16 thebe (2011:
17.5 thebe) which is approximately 2.1 US cents
(2011: 2.4 US cent)
BancABC Full Year Financial Results 2012
57