April - June 2013, Issue No. 7

Empowering people living with spinal cord injury “For those with disabilities such as quadriplegia, the abil-ity to decide who gives you a shower, gets you dressed and takes you to class or work is the ultimate free-dom…,” reads a tribute by Jonathan Muthubi, a former CEO of The Cluster Foundation (TCF).

This statement mirrors TCF’s purpose. Established in 2006, TCF purposes to improve the quality of life for young people affected by spinal cord injuries through its ‘I CAN Experience’ program. This is by empowering them to be active, independent and self-sufficient participants in the society.

“The program works towards ensuring that every person with paralysis has a strong purpose in life,” explains Njoki Mwangi a TCF trustee. “They start by doing small things, which snowball over time until that time one is indepen-dent and ready to do what they considered impossible and that, to many, is getting back into action.”

The program includes social reconstruction and special needs of people living with paralysis as well as the attitudes of the society towards them. Adventurous and fun activi-ties that provide key opportunities for having a strong pur-pose in life are conducted. Sports like horse riding, swim-ming and expeditions are some of the activities organized

every month, to empower paraplegics and quadriplegics to demonstrate that anything is possible despite paral-ysis. These are funded by revenue from sale of old newspapers and supplemented by sponsors and supporters.

ABC Bank is one of TCF supporters, and donates old newspapers every month to the organization, for this pur-pose. “It is our intention as a Bank to support members of the society challenged in various ways, and therefore causes like what TCF has taken up are close to our hearts,” says Deviinder Gupta, ABC Bank Group CEO.

“ABC Bank has been a valuable supporter of TCF, keen to understand and support our operations. We look for-ward to working together to make an impact,” said Njoki. Get involved today. Talk2us@abcthebank.com

In this Issue

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Our ContactsMortgage Partner:

ABC Bank launches Mpesa Pay Bill for easy transfers

Mpesa transfers begin

Which way forward?The Stock Market

Our email alerts make banking a breeze

E- statements & E-mail alerts

Highlights of our 2012 financial results

Financials

Our Partners

A TCF beneficiary participates in a basket ball game. Such sports days are not about creating elite sportsmen and women, but trying something new and different, to inspire the thought ‘If I can do this, what else can I achieve?’

“ABC Bank has been a valuable supporter of TCF, keen to understand and support our operations. We look forward to work-ing together to make an impact.”

I wish to start by appreciating your overwhelming support which has seen ABC Bank Group total assets grow by 56.8 percent to Kshs 19.7 bil-lion for the year ending 31st December 2012, from Kshs 12.6 billion recorded in 2011. We would not have done it without you, and we appre-ciate your partnership. (See page 5 for more details.)

It is our commitment to con-tinuously deliver value to you, even as you perform your day to day banking activities. Your constant feedback keeps us on our toes to efficiently meet your financial needs, and become the bank of choice for Kenyans across various demographics and locations.

This year we have renewed our focus to innovate and diversify our product offering.

First I am happy to let you know that our internet bank-ing platform, which has become an important tool for both your personal and business engagements, has got-ten a revamp. We will be re-launching this platform in the next one month, on a state of the art system that is more versatile and user friendly and allows customers to carry out an extensive range of transactions from the comfort of their homes, offices or even on the go.

We will also soon be launching a revolutionary new in-ternational money transfer service. A first in this mar-ket, this product will give immense value to over 40 mil-lion Kenyans. As we know, money transfer charges are a big burden to many people who have to send money to their loved ones back home or abroad on regular basis. This innovative service will enable people send money easily and affordably anywhere in the world. As a Bank we are working more towards speed, openness and efficiency in our operations and you will continue to see this in our products and service delivery this year.

I encourage you to take full advantage of our various platforms and services to make your banking with us enjoyable. And you can bet many more quality products services and partnerships are coming your way.

Enjoy the issue.

Thank You.

Group Managing Director

GMD’s Statement Pictorial

ABC Bank Group Chief Executive Officer Deviinder Gupta (right), and the Relationship Manager, Public Sector, Kennedy Chemitei (left) watch as the Ministry of Education Permanent Secretary Prof. George Godia appends his signature on a joint MOU that will guide disbursement of funds to education institutions across the country under the free primary education programme.

ABC Bank Senior Communications Officer Catherine Ndioo (centre) presents newspapers to Nick Nguyo (right) and Njoki Mwangi, both Trustees of The Cluster Foundation (TCF), to be recycled for production of eco-pencils, which are then sold to the public and corporates to raise money to support people with spinal cord injuries (paraplegics). The bank donates old newspapers quar-terly to TCF as part of its support.

Joy Mulei of ABC Marketing (right) presents Mary Muriuki with her Valentines gifts. ABC Bank for the second year running gave its Diaspora clients an opportunity to celebrate Valentines Day with their loved ones back at home, by helping them buy and deliver gifts of their choice to their door steps. Many were caught by surprise, making the experience unforgettable.

ABC Bank Group staff sing the National Anthem outside their offices, as one of the bank’s initiatives to call for peace during and after the general elections, and in solidarity with the Kenya Private Sector Alliance (KEPSA) “Mkenya Daima” peace campaign which invited Kenyans to sing the National Anthem on 28th February at 1pm. The staff also shared peace messages among themselves and with their stakeholders.

Q: What are the charges?

A: Normal M-pesa charges to send money apply, in addi-tion to minimal charges charged by the bank depending on the amount being transferred. Please contact our customer service officers through Live Chat, email or call, or visit any of our branches for details.

Q: What other M-pesa money transfer services does ABC Bank offer?

A: In addition, the Bank offers the following:

• Retail M-pesa – This is a person to person Mon-ey Transfer service that allows individuals within the Safaricom network to send and receive funds through their phones.

• Super agency – Through this facility, M-pesa agents can purchase bulk float which they can then resell to individuals

• Pay bill – This service enables our customers to re-ceive payments from their distributors and custom-ers via M-pesa, credited to their accounts

• Bulk M-pesa – This service allows clients to send money to several individuals via one transaction, taking away the hassle of carrying our numerous transactions

Q: What other money transfer services does ABC Bank have?

A: The bank has various options of local and internation-al money transfer services. This is through partnerships with international MTS companies like Western Union, Ria Money/Euronet, Instant Cash and Exchange 4 Free (E4F) .For any enquiries, contact us on talk2us@abcthebank.com

ABC Group News

Your M-pesa account, straight into your ABC Bank account

ABC Bank has launched a service that allows its custom-ers to transfer funds from their M-pesa accounts into their ABC Bank accounts, allowing them more conve-nience in managing their money.

ABC Vision’s Q&A with Amanda Corline, Head of Retail Banking

Q: Describe what this new service offers ABC Bank cus-tomers

A: The M-pesa Pay Bill service gives ABC Bank custom-ers the convenience of transferring funds from their M-pesa account straight into their ABC Bank accounts, through the M-Pesa pay bill number 111777.

Q: What are the limits in transfers?

A: Customers are allowed deposits of between Kshs.10 and Kshs. 70,000 into their Current or Savings accounts where the amount will be credited within 24 hours. This service is however not available for credit into fixed ac-counts or loan accounts.

Q: How do customers access this service?

A: These are the five easy steps to deposit money:

1. Select pay bill function from their M-pesa menu on their mobile handsets and key in Business Number 111777

2. Key in their full ABC Bank Account number

3. Key in the amount to be deposits

4. Key in their M-pesa PIN and before accepting the transaction, reconfirm their account number and amount

5. Accept the transaction

Send your love back home quickly and safely.

ABC Bank focuses on top-line growth

ABC Bank Group has continued to record growth across its business, with its balance sheet growing by 56.8 per-cent to Kshs 19.7 billion for the year ending 31st Decem-ber 2012, from Kshs 12.6 billion recorded in 2011.

In 2012 it re-engineered its processes across the busi-ness to make them more efficient, and re-designed its products and services to increase their market appeal, especially to Small and Medium Enterprises (SMEs).

The Group has now rolled out a 5-year Strategic Plan to 2017, which lays down a firm foundation of its growth in the next five years. This entails aggressively working to-wards growing its market share as it shifts its strategic focus to top-line growth, by leveraging on the initiatives and investments it made in 2012 across the business.

“This long term strategy will give us ample time to de-sign, execute and evaluate the outcome of all our ini-tiatives, as we work towards achieving our Vision of becoming the financial service provider of choice in the East African region,” said Mr Shamaz Savani, the ABC Bank Group Managing Director.

In an effort to tap into the synergies of the Group of companies, the Group increased its shareholding in ABC Capital Bank Ltd, Uganda, in 2012, making it a subsidiary from an associate.

In 2012, the Group also entered into partnerships with a number of organizations, aimed at driving acquisition of new business. This included signing Memorandum of Understanding (MOUs) with Export Processing Zones Authority (EPZA) to support businesses in the export and import sector; Investeq Capital Ltd and the Ministry of Education to facilitate free learning.

The Group’s customer deposits grew by 48.7 percent to Kshs 15.5 billion in 2012 from Kshs 10.4 billion reported in 2011. Its net loans grew by 43.3 percent to Kshs 10.1 bil-lion in 2012, up from Kshs 7.1 billion in the previous year.

The Group’s profit before tax increased to Kshs 526 mil-lion in 2012 from Kshs 508 million recorded in 2011.

ABC Bank introduces e-statements and email transaction alerts

Did you know that ABC Bank customers receive email alerts for various services from the Bank?

In a bid to enhance customer service, ABC Bank has re-vamped its online system to enable customers receive their statements and transaction alerts via email, at no cost.

The service launched in January, comes as ABC Bank diversifies its technology channels to allow customers more flexibility in accessing banking services, including customer service.

Now customers have an option of subscribing to re-ceive their statements through their email addresses. Alerts will also be sent to customers to remind them to collect their new cheque books every time they apply for them and are ready for collection.

It is also an effort by the bank to cut down on environ-mental pollutions as it encourages customers to ‘go green.’ Customers will still have a choice to receive printed statements via their post office box.

For more information, contact us ontalk2us@abcthebank.com

ABC Group: Financials ABC Group: What’s New

The Bank has a dedicated staff waiting to respond to all customer queries.

TALK TO US TODAY VIA:Email: talk2us@abcthebank.comFacebook: www.facebook.com/abcthebankTwitter: www.twitter.com/ABCBankKenya Website: www.abcthebank.comTelephone: +254 (20) 4263000

ABC Bank upgraded internet banking is here

As part of continuous improvement of its service offer-ing to meet changing customer demands, ABC Bank is upgrading its Internet Banking platform to incorporate more customer focused features.

This new technology, to be launched in the second quarter of the year, presents enormous benefits for all the bank’s customers, whether corporate, retail or Small and Medium Enterprises (SMEs), including offer-ing enhanced security of access and transactions, and improved functionality.

“We have invested extensively in ensuring that the sys-tem is one of the most secure available in the market,” said Mr Deviinder Gupta, ABC Bank Group CEO. “The system also comes with many revolutionary features which our customers will find attractive.”

The new internet banking platform is also far more user friendly with easier navigation, and comes with an on-line help/user manual at the click of a button! Custom-ers can also carry out transactions in real time, avoiding any delays or inconveniences.

You are the reason we came to work today

ABC Bank is committed to delivering services in a way that puts our customers first. That is why the Bank has developed new communication platforms, as well as streamlining the existing ones to offer customers an ex-tra-ordinary customer experience.

ABC Group: What’s New

ABC Bank’s Retail Banking Relationship Manager Milkah Muriithi (right) and Ruth Muturi a Relationship Officer, compare notes when the Bank sponsored the launch of Triple P, a company that will promote the local music industry by use of the digital media. During the event, the Bank was also able to interact with various individuals and institutions to understand their banking needs.

Going forward, all things being equal, we see the mar-ket upward trajectory continuing but at a slower pace in the short-run before resuming a fast growth.

For any questions or comments Email: Patrick.ngugi@abccapital.co.ke

Rising import bill, Euro crisis cast dark shadow over shilling

Kenyan consumers should expect a fresh surge in infla-tion as the economy reckons with uncertainty in Europe and a widening trade deficit that is weakening the shil-ling.

A survey conducted by Central Bank of Kenya (CBK) re-cently indicates that business leaders, including bank executives expect the Eurozone crisis and the growing import bill to erode the shilling’s value in the coming months pushing up the cost of imported goods such as oil.

“Overall the exchange rate is expected to remain stable but with a tendency to weaken due to current account pressure from a high import bill and uncertainty in reso-lution of the Eurozone crisis which has affected the lev-el of tourist arrivals,” the CBK’s Monetary Policy Com-mittee’s (MPC) Market Perceptions Survey conducted in February says.

“We expect the shilling to remain under pressure be-cause of the underlying economic and political condi-tions. This could see the shilling depreciate to above Kshs 90 to the dollar this year,” the report says.

Kenya’s current account deficit rose by 36 percent or $4.5 billion in 2012 saddled by a steep surge in the value of imports. The country exported $6.13 billion worth of goods against $16.3 billion worth of imports leaving $10 billion gap.

The stock market: Political risk will be minimal

By Patrick Wairagu, ABC Capital Limited

The Nairobi Securities Exchange (NSE) grew steadily over the first two months of 2013, with the NSE 20 share index recording a 9.4% growth, and many of the count-ers gaining positive territory over this period.

The impressive growth in an electioneering period can be attributed to favourable economic fundamentals i.e. low inflation and interest rate regime, continued confi-dence by foreign investors demonstrated by their high level of participation in the market.

In addition the market anticipates the announcing sea-son of the 2012 company results will bring with it good tidings for investors particularly in the banking, insur-ance, investment, commercial, construction and manu-facturing sectors.

ABC Group: Financials

The NSE 20 share index recorded a 9.4% growth in the first two months of 2013 with many of the count-ers gaining positive territory over this period

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