June 2012 results

Half Year Financial Results
2012
14 August 2012

Agenda
● Highlights ● Economic overview ● Financial review
● Operational overview ● Strategy and outlook

BancABC Half Year Financial Results 2012
Highlights
DOUGLAS MUNATSI

in BWP June 2012 June 2011 ∆ Trend
Attributable
Profits
55.6m 37.2m +49%
Dividend Per
Share
0.08 0.068 +18%
NAV Per Share 4.35 3.09 +41%
Group performance is satisfactory setting the group well for the rest of the year
Financial Highlights

June 2012 June 2011 ∆ Trend
PAT BWP55.3m BWP39.1m + 41%
ROE 17.8% 17.0% + 0.8%
Cost To Income 75% 72% +3.0%
EPS 37.2 thebe 25.9 thebe +44%
Profitability improved on the back of increased business volumes across all lines of
business. Expansion into Consumer Lending bearing fruits in Botswana, Zambia
and Zimbabwe. Cost to income still high

in BWP June 2012 June 2011 ∆ Trend
Total Assets 10.8 billion 7.4 billion +47%
Loans & Advances 7.8 billion 4.0 billion +95%
Deposits 8.8 billion 6.0 billion +46%
Equity 636 million 453 million +43%
Group total assets have increased steadily mainly in Botswana, Zimbabwe and to
lesser extent Zambia. Group total loans grew faster than deposits essentially
fuelled by Botswana’s book which has grown over 200%

Operational highlights
Total retail branches
increased from 35 in June
2011 to 55 in June 2012
Total retail customer
numbers increased by 144%
from 63,891 in June 2011 to
155,763 in June 2012
NPLs at 5.4% from 5.5% in
June 2011, credit loss ratio
down from 1.2% in 2011 to
0.8% in 2012
Raised US $50 million by
way of a rights issue in July
2012
7

Economic review
DOUG MUNATSI

Economic overview
9
Global
economy is set
to grow by
3.5% in 2012
compared to
3.9% in 2011
Weak Global
recovery
depends on
progress in
Europe and
United States
Growth
momentum has
also slowed in
various
emerging
market
economies -
Brazil, China
and India
Emerging
markets have
been hit by
investor risk
aversion &
growth
uncertainty

Economic overview (cont’d)
10
Just like
temperature
in Europe,
the financial
crisis is
heating up
once more
Euro area
periphery
economies at
the
epicentre of
escalation in
financial
crisis
Investors
are
increasingly
unsatisfied
with the
steps taken
to tackle
the euro
crisis
Euro area is
expected to
enter into a
mild
recession
in 2012
US
economic
activity
less
robust

Economic overview (cont’d)
11
Sub-Saharan Africa
(SSA) is not immune
to the spillover
effects of euro zone
crisis
SSA economic growth
expected to be 5.4%
in 2012
Many SSA countries
have embarked on
policy easing to
support economic
growth

Fiscal & debt levels in selected countries
12
0
50
100
150
200
250
-14 -12 -10 -8 -6 -4 -2 0 2
GvtDebt,%ofGDP
Fiscal Balance, % of GDP
Ireland
Greece
Portugal Italy
Japan
UK
GermanyFrance
USA
Brazil
India
Russia
China
Spain
Negative fiscal Balance means budget deficit

Inflation development - H112
13
7.9
2.7
18.7
6.4
4.1
6.0
0
2
4
6
8
10
12
14
16
18
20
%
Inflation
Avg Inflation
Botswana Mozambique Tanzania Zambia Zimbabwe SA
Though declining, inflation remains very high in Tanzania: Highest TZ inflation rate was 19.8 % in
December of 2011 and record low was 3.4 % in February of 2003,
Countries have benefited from lower oil prices
Food inflation has been broadly stable but expected to pick in H2:2012

Policy interest rates
14
Moz policy rate was lowered from 15%
in Feb-12 to 13.5% in Jun in line with
declining inflation
In TZ, firming up of overnight rate in
H2:2011 was due to tight liquidity
conditions
In ZM, bank rate averaged 9% in
H1:2012 compared to 7.7% H1:2011
Policy interest rates – key monetary
policy tools to fight inflation
Bots Bank rate remained flat at 9.5%
0
5
10
15
20
25
30
35
%
Bots (Bank Rate)
Zambia (Bank
Rate)
Moz (Standing Lending
Facility)

Interest rates landscape – H112
15
Country Avg. TB
Yield Rate
Avg. Prime
Lending
Rates
Avg.
Deposit
Rates
Avg.
Spread
Botswana 5.0 11.0 5.9 5.1
Mozambique 7.1 18.9 13.2 5.7
Tanzania 13.2 13.9 9.9 4.0
Zambia 7.0 22.6 7.0 15.6
Zimbabwe --- 10 - 30 0.15 - 18 9.85-12

Exchange rate movement vs. USD
16
-4 0 4 8 12 16 20
BWP
ZAR
MZN
TZS
ZMK
18.4
22.6
-2.7
-1.3
6.5
%
YoY: Jun-11 to Jun-12
On annual basis the
following currencies
depreciated vs. USD:
ZAR: 22.6%
BWP: 18.4%
ZMK : 6.5%
TZS :1.3%
MZN appreciated vs.
USD by 2.7%
ZAR volatility linked
to Euro zone crisis
ZAR weakness pulling
down BWP

ZAR correlation to Euro
17
0.60
0.65
0.70
0.75
0.80
0.85
0.90
6.5
7.0
7.5
8.0
8.5
9.0
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
US$/Euro
US$/ZAR
US$/ZAR
US$/Euro
Correlation between
Euro & ZAR is ≈ 0.6
Suggesting that ≈ 60%
of US$/ZAR movement
is explained by
US$/Euro movement
Has implications for
regional trade

Exchange rate movement per Pula
18
All other ABC currencies appreciated against
the BWP
ZAR hardest hit emerging market currencies
by risk aversion
ZMK strength propped up by policies to de-
dollarize economy
200
210
220
230
240
250 BWP/TZS
3.00
3.50
4.00
4.50
5.00
5.50
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
BWP/MZN
650
670
690
710
730
750
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
BWP/ZMK

Deposits per capita (US$)
19
kenya
371
Zambia
283
Tanzania
160
Zimbabwe
276
South Africa
6,637
Botswana
3,103
Mozambique
203
50
60
70
80
90
100
110
0 5 10 15 20 25 30 35 40 45 50
LDR,%
#of Banks

Minimum capital requirements
20
0 20 40 60 80 100 120 140 160 180 200
Angola
Malawi
SA (Mutual Banks)
Tanzania
Ethiopia
Uganda
Kenya
Zambia (Local Banks)
SA (Commercial Banks)
Zambia (Foreign Banks)
Zimbabwe
Algeria
Nigeria
4
5
8
10
10
10
11
20
39
100
100
142
180
US$ m
Steep Capital
Requirements
for Banks in
Zambia &
Zimbabwe
*
*
* For new applications. Full compliance date for existing banks:
Dec 2012 in Zambia and June 2014 in Zimbabwe

GDP Size (US$ bn)
Minimum Cap & No. Banks
21
South Africa
420
Nigeria
273
Algeria
207
Angola
122
Kenya
42
Mozambique
15
Zimbabwe
11
Botswana
18
Tanzania
25
Zambia
21
-20
0
20
40
60
80
100
120
140
160
180
200
220
5 10 15 20 25 30 35 40 45
MinimumCapital,US$m
Number of Banks
GDP Size (US$ bn)
= Bubble Size

ABC Markets – Banking Sector Landscape
(US$m)
22
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Dec-11
Feb-12
Apr-12
Jun-12
Jan-12
Mar-12
May-12
Dec-11
Feb-12
Apr-12
Jun-12
Jan-12
Mar-12
May-12
Dec-11
Feb-12
Apr-12
Jun-12
US$m
US$m
Total Deposits
Credit Pvt
Botswana Mozambique Tanzania Zambia Zimbabwe
LDR=65% LDR=74% LDR=74% LDR=56% LDR=90%

Operational Overview
FRANCIS DZANYA

BancABC Botswana Highlights
Revenue
• NII: +203%
• Balance sheet
growth
• Good margins
from consumer
lending book
• Non Interest
Income:
+64%
• Higher FX
trading income
Loans and
Deposits
•Loans:
+BWP1.1bn to
BWP2.8bn
•Impairments:
up from
BWP2m to
BWP15m
•Deposits: +
BWP0.9bn to
BWP3.5bn
Outlook
• Consumer
lending and
group scheme
loans
• 100% home
loans, Visa
prepaid cards
• Chips and PIN
cards, ATMs
rolled
out, VISA
acquiring
24
Another
Good Run
•Ops Stats
• Staff: up from 187 (Dec-11) to 211
• Branches: 4
• Customers: up from 9,177 (Dec-11)
to 17,919

BancABC Mozambique Highlights
Revenue
• NII: +127%
• Balance sheet
growth
• Improved
margins amidst
tough
competition
• Non Interest
Income: +32%
• Increased FX
trading income
and trade
finance fees
Loans and
Deposits
• Loans:
+BWP65m to
BWP827m
• Impairments:
up from BWP3m
to BWP10m
• Gross NPLs
increased from
4.3% to 7.4%
• Deposits: +
BWP79m to
BWP1.3bn
Outlook
• Visa prepaid
cards
• Campaigns on
deposit
mobilization
• IFC SME
Program
• Market interest
rates on a
gradual
downward trend
25
Satisfactory
•Ops Stats
•Staff: up from 125(Dec-11) to 144
•Branches: 6
•Customers: up from 4,516 (Dec-
11) to 5,406

BancABC Tanzania Highlights
Revenue
• NII: -38%
• Shrinking interest
margins
• Non Interest
Income: - 12%
• Lower bond
trading volumes
Loans and
Deposits
• Loans: +BWP82m
to BWP654m
• 13% reduction in
Impairment
charges
• Some NPL
accounts still
being regularized
• Deposits: -
BWP86m to
BWP975m
Outlook
• Consumer
Lending, acquired
Payroll deduction
in July
• Card based
products
• Market interest
rates slowly
trending
downwards
26
Below
Budget
•Ops Stats
• Staff: up from 101(Dec-11) to 130
• Branches: +1 during H1:12, total to 5
• Business volumes still a major constraint
on Retail and SME

BancABC Zambia Highlights
Revenue
• Total income up
78% from
BWP45m to
BWP80m
• Growth in
consumer loans
• Increased trade
finance
transactions
Loans and
Deposits
• Loans:
+BWP195m to
BWP772m
• growth mostly
on consumer
lending book
• NPLs: down
from 11.6% in
Jun-11 to 4.5%
in Jun-12
• Deposits:+
BWP65m to
BWP613m
Outlook
• Consumer
lending sales
campaigns
• Rollout of card
products
27
Good
above
budget
•Ops Stats
• Staff: up from 187(Dec-11) to 211
• Branches: +2 during H1:12, total 21
• Customers: up from 52,515 to 62,541

BancABC Zimbabwe Highlights
Revenue
• NII: 45% higher
• Balance sheet
growth
• Non Interest
Income: up
77% from
increased
customer
transactions
Loans and
Deposits
• Loans:
+BWP416m to
BWP2.4bn
• Significant
collections from
delinquent
accounts
• NPLs: up from
2.74% in Jun-11
to 5.2% in Jun-
12
• Deposits:+
BWP448m to
BWP2.4bn
Outlook
• Banc Easy,
• Group loan
schemes,
• Mortgage loans
and VAF,
• SMS banking
launched,
• Internet/POS
acquiring and
VISA prepaid
card at
advanced stage
28
Robust
Performance
•Ops Stats
• Staff: up from 352 (Dec-11) to 462
• Branches: +3 during H1:12 total to
19
• Customers: up from 52,515 to 65,891

Financial review
BEKI MOYO

Income Statement
Performance driven by
increase in net interest
income and non-interest
income – expansion into
Consumer Lending
Impairments higher due to
loan growth and
downgrade in Tanzania &
Mozambique
Operating expenses higher
in line with expansion
BWP'000 Jun-12 % ∆ Jun-11
Net interest income 273,670 43% 191,354
Impairment of loans (32,408) -26% (25,821)
NII after impairment of loans 241,262 46% 165,533
Non-interest income 234,947 61% 145,678
Total income 476,209 53% 311,211
Operating expenses (379,016) -55% (244,026)
Net income from operations 97,193 45% 67,185
Share of loss of associates (1,472) 68% (4,546)
Profit before tax 95,721 53% 62,639
Tax (40,441) -72% (23,529)
Profit for the year 55,280 41% 39,110
Attributable to:
-Ordinary shareholders 55,579 49% 37,242
-Minority interests (299) -116% 1,868
Basic EPS (thebe) 37.2 44% 25.9
Dividend per share (thebe) 8.0 18% 6.8
30

Income Statement
Performance driven by
increase in net interest
income and non-interest
income – expansion into
retail space
Impairments higher due to
loan growth and downgrade
in Tanzania & Mozambique
Operating expenses higher
in line with expansion
USD'000 Jun-12 % ∆ Jun-11
Net interest income 36,909 27% 29,172
Impairment of loans (4,371) -11% (3,936)
NII after impairment of loans 32,538 29% 25,236
Non-interest income 31,686 43% 22,208
Total income 64,224 35% 47,444
Operating expenses (51,116) -37% (37,201)
Net income from operations 13,108 28% 10,243
Share of loss of associates (198) 71% (693)
Profit before tax 12,910 35% 9,550
Tax (5,454) -52% (3,587)
Profit for the year 7,456 25% 5,963
Attributable to:
-Ordinary shareholders 7,497 32% 5,678
-Minority interests (41) -114% 285
Basic EPS (US cents) 5.0 28% 3.9
Dividends per share (US cents) 1.0 0% 1.0
31

Attributable Profit Trend
Higher attributable profits
driven by increase in core
earnings
ROE only marginally higher
– loss in Tanzania impacted
earnings
Upward trend in past 3
years supported by
sustainable earnings
Dip in 2009 due to
dollarization & change in
business model
32

Income Statement- Segmental Analysis
Significant growth in
Botswana and Zambia
– consumer loans
Zimbabwe continued
growing profitability
from all business
segments
Tanzania performance
impacted by lower
interest margins and
higher impairments
BWP'000 Jun-12 % Cont Jun-11 % Cont % ∆
Botswana 35,727 32% 10,883 15% 228%
Mozambique 13,816 12% 7,823 11% 77%
Tanzania (4,860) -4% 9,941 14% -149%
Zambia 16,991 15% 6,200 8% 174%
Zimbabwe 49,809 45% 38,422 52% 30%
Banking Operations 111,483 100% 73,269 100% 52%
Head office & consolidation
adjustments (55,904) (36,027) -55%
Total 55,579 37,242 49%
33
Attributable profits

Income Statement – Segmental Analysis
34
Strong growth in income other than Tanzania and head office entities
Total income by entity
BWP'000 Jun-12 Jun-11 % ∆ Dec-11
BancABC Botswana 109,330 48,460 126% 116,482
BancABC Mozambique 70,343 43,171 63% 120,660
BancABC Tanzania 33,643 45,376 -26% 55,639
BancABC Zambia 80,329 45,248 78% 100,902
BancABC Zimbabwe 190,361 112,478 69% 218,943
Banking Operations 484,006 294,733 64% 612,626
Head office entities (7,797) 16,478 -147% 46,183
Total 476,209 311,211 53% 658,809

35
Total income by business and subsidiary
BWP'000
Jun-12
Wholesale
Jun-11
Wholesale
Jun-12
Retail
Jun-11
Retail
BancABC Botswana 53,564 46,003 55,766 2,457
BancABC Mozambique 62,809 39,843 7,534 3,328
BancABC Tanzania 29,980 43,860 3,663 1,516
BancABC Zambia 23,821 8,708* 56,508 36,540*
BancABC Zimbabwe 143,129 88,029 47,232 24,449
Banking Operations 313,303 226,443* 170,703 68,290*
Head office entities (7,797) 16,478 - -
Total 305,506 242,921* 170,703 68,290*
150% growth in Retail banking income mainly due
to Botswana, Zambia and Zimbabwe.
Retail contribution up from 22% in Jun-11 to 36%
in Jun-12.
26% growth in Wholesale banking income mainly
due to Botswana, Mozambique and Zimbabwe.
Wholesale contribution down from 78% in Jun-11
to 64% in Jun-12.
* Restated: BancABC Microfin’s total income moved from wholesale into retail

36
Total net interest income by business and subsidiary
BWP'000
Jun-12
Wholesale
Jun-12
Wholesale
Jun-11
Retail
Jun-11
Retail
BancABC Zambia 4,666 2,728 29,170 35,336
Banking Operations 168,525 130,469 112,564 47,859
Head office entities (7,419) 13,026 - -
Total 161,107 143,495 112,564 47,859
Growth across all
subsidiaries other than
Tanzania
Retail NII up 135%
Wholesale NII up 29%*
Retail contribution up to
41% from 25%
Lower margins in
Tanzania
* Excluding Head office entities

Income Statement – Net Interest Income
Overall Group margins at 6.2%
(2011: 6.5%)
37
Positive trend in net interest income
driven by increased balance sheet
size – growth in Consumer Lending

Income Statement – Impairments & NPLs
38
Gross and net NPL ratios
reduced marginally during
the period
Credit loss ratio declined
from 1.2% to 0.8%
Increased NPLs in
Mozambique, Tanzania
and Zimbabwe
Change for impairments
in Botswana higher
mostly due to increased
loan book size

Income Statement- Cost to Income
39
Cost to income
ratio marginally up
– retail expansion
On target in the
short to medium
term Still
maintained at 50%

Operating Expense per Entity
40
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
BWP'000
Jun-08 Jun-09 Jun-10 Jun-11 Jun-12
Increase in costs largely driven by retail banking expansion

Income Statement- Opex per entity
41
Operating expenses (BWP’000)
BWP'000
Jun-12
Wholesale
Jun-11
Wholesale
Jun-12
Retail
Jun-11
Retail
BancABC Zambia 16,859 36,158 38,364 2,889
Banking Operations 192,777 153,489 142,267 47,340
Head office entities 36,904 39,402 7,068 3,794
Total 229,681 192,891 149,335 51,134
Wholesale banking contribution down to 61% from 79%
Retail banking contribution up to 39% from 21%
Wholesale banking costs up 19%
Retail banking costs up 192%

Balance Sheet Overview
Balance sheet grew by 18%
from BWP9.2 billion in
December 2011 & by 47%
from BWP 7.3 billion in June
2011 to BWP10.8 billion
Deposits grew by 19% from
BWP7.4 billion in December
2011 & by 46% from BWP 6.0
billion in June 2011 to
BWP8.8 billion
Loans and advances increased
29% from BWP6.1 billion in
December 2011 & by 95%
from BWP 4.0 billion in June
2011 to BWP7.8 billion -
growth mostly from Botswana
Total Equity grew by 9% from
BWP613 million in December
2011 & by 42% from BWP 469
million in June 2011 to BWP
666 million
42

Balance Sheet
43
BWP '000s Jun -12 Jun-11 % change Dec-11
Cash and short term funds 988,788 1,356,617 -27% 1,243,431
Financial assets held for trading 544,474 1,030,839 -47% 651,049
Financial assets designated at fair value 90,053 84,135 7% 185,412
Loans and advances 7,817,545 4,018,987 95% 6,077,399
Property and equipment 576,491 392,799 47% 514,880
Other Investments 352,005 154,046 129% 138,070
Prepayments and others assets 453,191 327,815 38% 373,647
TOTAL ASSETS 10,822,547 7,365,238 47% 9,183,888
Deposits 8,781,462 6,004,301 46% 7,374,700
Borrowed funds 1,130,944 682,839 66% 981,788
Other liabilities 244,283 208,610 17% 214,833
Total liabilities 10,156,689 6,895,750 47% 8,571,321
Equity attributable to ordinary shareholders
649,903 453,116 43% 596,811
Minority interest 15,955 16,372 -3% 15,756
Total equity 665,858 469,488 42% 612,567
TOTAL EQUITY AND LIABILITIES 10,822,547 7,365,238 47% 9,183,888

Balance Sheet- USD
44
BWP '000s Jun -12 Jun-11 % change Dec-11
Cash and short term funds 129,185 207,562 -38% 166,122
Financial assets held for trading 71,136 157,707 -55% 86,980
Financial assets designated at fair value 11,765 12,884 -9% 24,771
Loans and advances 1,021,362 614,905 66% 811,940
Property and equipment 75,319 60,098 25% 68,788
Other Investments 45,990 23,569 95% 18,447
Prepayments and others assets 59,209 50,156 18% 49,920
TOTAL ASSETS 1,413,966 1,126,881 25% 1,226,968
Deposits 1,147,298 918,658 25% 985,260
Borrowed funds 147,758 104,474 41% 131,167
Other liabilities 31,915 31,917 0% 28,702
Total liabilities 1,326,971 1,055,049 26% 1,145,129
Equity attributable to ordinary shareholders 84,910 69,327 22% 79,734
Minority interest 2,085 2,505 -17% 2,105
Total equity 86,995 71,832 21% 81,839
TOTAL EQUITY AND LIABILITIES 1,413,966 1,126,881 25% 1,226,968

Balance Sheet- Loans and Deposits
29% growth
in loans since
Dec – 11
95% YoY
19% increase
in deposits
since Dec-11
46% YoY
45
48% CAGR
since Jun-08
40% CAGR
since Jun-08

Balance Sheet – Segmental Analysis
46
BWP'000
Jun-12
Wholesale
Jun-11
Wholesale
Jun-12
Retail
Jun-11
Retail
BancABC Botswana 1,539,202 825,315 1,228,008 14,490
BancABC Zambia 253,600 84,602 518,030 201,392
BancABC Zimbabwe 1,862,894 1,354,846 586,488 145,817
Banking Operations 4,958,508 3,184,077 2,510,803 424,454
Head office entities 348,234 410,456 - -
Total Loans and Advances 5,306,742 3,594,533 2,510,803 424,454
Loans and advances by business and subsidiary
492% growth in Retail Loans mainly due to
Botswana, Zambia and Zimbabwe.
Retail contribution to total Loans and advances up
from 11% in Jun-11 to 32% in Jun-12.
48% growth in Wholesale Loans mainly due to
Botswana, Mozambique and Zimbabwe.
Wholesale contribution to total Loans and advances
down from 89% in Jun-11 to 68% in Jun-12.

Balance Sheet – Segmental Analysis
46% growth in deposits largely driven by Botswana and Zimbabwe
47
BWP'000
Jun-12
Wholesale
Jun-11
Wholesale
Jun-12
Retail
Jun-11
Retail
BancABC Botswana 3,236,303 1,929,167 227,454 55,079
BancABC Mozambique 1,028,260 822,667 267,209 159,648
BancABC Zambia 585,322 375,629 27,493 18,229
BancABC Zimbabwe 2,218,362 990,578 215,995 665,755
Total Deposits 7,995,473 5,090,794 785,989 913,507
14% decrease in Retail deposits mainly due to
withdrawal of a large short term deposit in
Zimbabwe. Retail contribution to total deposits
down from 15% in Jun-11 to 9% in Jun-12.
57% growth in Wholesale deposits mainly due to
Botswana, Mozambique and Zimbabwe.
Wholesale contribution to total deposits up from
85% in Jun-11 to 91% in Jun-12.

Balance Sheet – Capital Adequacy
Total Capital (BWP m) Capital Adequacy Ratio
Subsidiary Jun-12 Jun-11 Min Jun-12 Jun-11
BancABC Botswana 345 173 15% 15% 20%
BancABC Mozambique 249 177 8% 15% 22%
BancABC Tanzania 150 132 12% 15% 15%
BancABC Zambia 196 89 10% 19% 21%
BancABC Zimbabwe 421 216 10% 11% 15%
48
US $50 million rights offer successfully completed in July 2012
However, current business growth entails raising additional capital
Plan is to raise between US $75 - $100 million in tier II capital
Zim has new capital reqs and min CAR = 12% effective 1 Aug 2012

BancABC Tanzania Challenges
49
Tanzania
Population: 43m
GDP size: US$25 bn
Banking Assets: US$9.8bn
BancABC Tanzania recorded a loss of
BWP5 million in current period due
to reduction in interest margins and
high impairment charges
Entity also had a loss in 2011 of
BWP3.3 million – MTM losses, high
impairments
Entity was profitable in the
preceding four years prior to 2011
Historically Tanzania had low capital
levels, low single obligor limits
High NPLs exacerbated by a slow
legal process

Tanzania market analysis
50
Tanzania remains an attractive
market
• Second largest economy in East Africa
• Between 6%-7% Annual Real GDP growth rate
since 2003
• Steady growth in banking assets and liabilities yoy
• Larger players dominate the market
BancABC has grown steadily:
• BancABC’s CAGR consistently grew faster than
the market between 2002 and 2011
• Capital increased from $1m in 2002 to $20m in
2012
• Quick resolution of remaining NPLs
• Business expansion – wholesale and retail (SMEs,
group schemes and consumer lending segment)
CAGR
Total Market
CAGR
BancABC TZ
Deposits 17.6% 26.8%
Loans 26.4% 36.2%
Assets 19.2% 29.5%
From 2002 To 2011
Top 3 Banks in
Tanzania BancABC TZ
2010 2011 2010 2011
Assets 44.50% 39.90% 1.80% 1.70%
Deposits 53.60% 48.50% 1.50% 1.70%
Loans 44.20% 41.90% 1.70% 1.60%

Head office entities
51
Head office now funded
predominantly by
dividends
Subsidiary dividends and
intra-group interest
eliminated on consolidation
Management fees (full cost
re-charge) discontinued
after 2008
Income in 2012 lower due
to reduction in liquidity and
increased liabilities to
capitalize subsidiaries
ahead of completion o
right s issue
Improved subsidiaries
performance to lead to
better funding for H/O
Balance sheet restructuring
to lead to increased
liquidity and income
Tax losses in ABCH
company to be utilized as
far as possible

Strategy and Outlook
DOUGLAS MUNATSI

Key successes
Completed rights offer of US$50 million
Recapitalised all banking operations as
planned
Expanded retail outlets across footprint
and introduced retail products/functionality
Grown retail to profitability in Botswana,
Zambia and Zimbabwe
Expanded wholesale business in all
operations
53

Challenges and resolution processes
Capital to support current
growth trajectory
Liquidity to fund business
expansion
High impairments
High costs
54
Raising additional capital
Arranging lines of credit at centre
and subsidiary level
In process of resolving all key NPL
accounts
To stabilize costs and hence reduce
cost to income ratio

Short to medium term objectives
Raise
between US
$75 - $100
million in tier
II capital
Additional
capital for
Botswana
and
Zimbabwe
Expand retail
in Tanzania
and
Mozambique
Continue
increasing
retail outlets
Improve
liquidity for
the Group
through
additional
lines of
credit and
other forms
of funding
55

Dividend declaration
56
As per Group Policy, a dividend of 8 thebe (about
1 US cent) per share to be paid on 21 Sep 2012
to shareholders on register on 7 Sep 2012

THANK YOU
57

June 2012 results

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June 2012 results