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BancABC Full Year Financial Results 2010
14 March 2011
BancABC Full Year Financial Results 2010
AGENDA
• Highlights
• Economic overview
• Financial review
• Operational overview
• Strategy and outlook
BancABC Full Year Financial Results 2010
HIGHLIGHTS
Douglas Munatsi
Financial Highlights
All banking operations
profitable for the first time in the
history of the Group
Total income increased 39 % to BWP547 million
Operating profit increased by 320% to BWP111 million
Cost to income ratio down to 77% from 82% in the prior
year Operating expenses
up by 19%
Impairment charges on loans and
advances reduced by 69% to BWP16
million
Basic earnings per share improved by 15% to 46.3 thebe from 40.4 thebe in
2009
4 BancABC Full Year Financial Results 2010
Financial Highlights (cont’d)
Balance sheet grew by 36% from BWP4.4 billion in 2009 to BWP6.0
billion
Loans and advances
increased by 54% from BWP2.0
billion to BWP3.1 billion
Customer deposits grew by 46% from BWP3.4 billion in 2009 to BWP4.9
billion
Net asset value per share up from
BWP2.73 to BWP2.93
Return on average equity was 16%
compared to 14% in 2009
5 BancABC Full Year Financial Results 2010
Operational Highlights
Total retail branches increased
to 17 as of now
Zimbabwe retail division already
profitable 12 months after
commencement
Successful turnaround of the Zambia operation
which is now profitable
BancABC Zambia and BancABC Zimbabwe re-
capitalised during the year
6 BancABC Full Year Financial Results 2010
BancABC Full Year Financial Results 2010
ECONOMIC OVERVIEW
Douglas Munatsi
Economic Overview
Global economic recovery has been uneven in different
regions
Inflation on the rise due to high oil prices
In developed countries:• Economic growth has been somewhat subdued
• Unemployment remains high
• Renewed fears in the Euro zone due to high debt levelsIn emerging
countries:• Capital inflows have been strong
• Currencies have appreciated
• Early signs of overheating
In sub-Saharan Africa (SSA)• Economic growth has been strong
• High commodity prices a boon to regional countries
BancABC Full Year Financial Results 2010
BancABC Full Year Financial Results 20109
Economic Overview
3
-0.6
5
4.4
0.6 1
.8
1.5
5.6
2.8
5 5.5
0
-2.6
2.8
3
9.6
9.2
10.3
9.6
3.7
-1.7
2.8 3
.4
-4
0
4
8
12
08 09 10 11 08 09 10 11 08 09 10 11 08 09 10 11 08 09 10 11 08 09 10 11
World Euro Area SSA USA China SA
Economic Growth in Selected Regions/CountriesRegions
BancABC Full Year Financial Results 2010BancABC Full Year Financial Results 2010
Economic Growth Outlook & Size of Markets (USD m)
10
Botswana14,367
Tanzania23,739
Malawi5,487Kenya
36,922
Zambia18,298
Mozambique9,940
Zimbabwe8,073
Lesotho1,875
Swaziland3,238
Namibia11,767
0
1
2
3
4
5
6
7
8
9
10
11
30 40 50 60 70 80 90 100 110 120 130 140 150 160 170
GD
P G
row
th 2
011 (
%)
Ease of Doing Business- 2011 Rank
GDP Size (US$ m)= Bubble Size
BancABC Full Year Financial Results 201011 BancABC Full Year Financial Results 2010
2.6
6.8 6.4 6.3
2.1
4.7
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
08 09 10 11 08 09 10 11 08 09 10 11 08 09 10 11 08 09 10 11 08 09 10 11
GDP Growth
Avg Growth
Bots Moz Tanz Zamb Zimb SSA
Economic Growth in ABC Markets
Average economic growth for Mozambique, Tanzania, Zambia above sub-Saharan Africa growth of 4.7%
Economic growth in Botswana suffered from effects of Global crisis
Zimbabwe has potential for double digit growth
BancABC Full Year Financial Results 2010
BancABC Full Year Financial Results 2010BancABC Full Year Financial Results 2010
7,700 4,500 8,093 4,737 3,669
6,152 3,150 5,665 3,316 2,568
3,304 2,560 3,813 1,702 1,669
Loans US$ m
Deposits US$ m
Zimbabwe*Botswana ZambiaTanzaniaMozambique
Assets US$ m
ABC Markets Banking Sector Landscape As of Oct-10
12 * As of Dec-10
Botswana Mozambique Tanzania Zambia ZimbabweGDP US$ m** $13,714 $9,287 $22,777 $15,687 $6,716 Deposit to GDP
45% 34% 27% 21% 38%
* * GDP for 2010
Banking Sector Deposits and Loans
13
The markets continue to be attractive and have generally been growing in the recent past
All markets are highly competitive
Opportunities exist to enter new
market segments in all the countries
The Tanzania and Botswana markets largest of all group presence countries
Zimbabwe has rapidly grown in the 2009-2010
period
BancABC Full Year Financial Results 2010
J-09
F-0
9
M-0
9
A-0
9
M-0
9
J-09
J-09
A-0
9
S-0
9
O-0
9
N-0
9
D-0
9
J-10
F-1
0
M-1
0
A-1
0
M-1
0
J-10
J-10
A-1
0
S-1
0
O-1
0
N-1
0
D-1
0
-10
-5
0
5
10
15
20
Moz Zim
Zamb
Tanz
Bots
Annual Inflation Trends
Inflation has been broadly stable in all
markets except Mozambique
In Mozambique, inflation accelerated from 4.2% in Dec-09 to 16.6% in Dec-10
due to rapid depreciation of Metical against USD & ZAR
BancABC Full Year Financial Results 2010
Interest Rate Profiles
15
Jan-0
6
May-0
6
Sep-0
6
Jan-0
7
May-0
7
Sep-0
7
Jan-0
8
May-0
8
Sep-0
8
Jan-0
9
May-0
9
Sep-0
9
Jan-1
0
May-1
0
Sep-1
0
Jan-1
1
4
6
8
10
12
14
16
18 Botswana
Prime Lending
Deposit Rate Spread
Source: Respective Central Banks
Jan
-06
Jun
-06
Nov-0
6
Ap
r-0
7
Sep
-07
Feb
-08
Jul-0
8
Dec-
08
May-0
9
Oct
-09
Mar-
10
Au
g-1
0
8
13
18
8
13
18
%
Prime Lending
Deposit Rate
Mozambique
Spread
Jun-0
6
Dec-
06
Jun-0
7
Dec-
07
Jun-0
8
Dec-
08
Jun-0
9
Dec-
09
Jun-1
0
Dec-
10
0
4
8
12
16
20 %
SpreadLending Rate
Deposit Rate
Tanzania
Jun
-06
Oct
-06
Feb
-07
Jun
-07
Oct
-07
Feb
-08
Jun
-08
Oct
-08
Feb
-09
Jun
-09
Oct
-09
Feb
-10
Jun
-10
Oct
-10
4
8
12
16
20
24 %
SpreadLending Rate
Deposit Rate
Zambia
BancABC Full Year Financial Results 2010
Exchange Rate Movement vs. USD
On annual basis the following currencies depreciated vs USD:
•MZN; 19.6%•TZS; 10.8%•K ; 3.4%
ZAR appreciated vs USD by 10.6%
BWP appreciated vs USD by 3.5%-12 -8 -4 0 4 8 12 16 20
BWP
ZAR
MZN
TZS
K
-3.5
-10.6
19.6
10.8
3.4
%
YoY: Dec-09 to Dec-10
Ex Rate vsUSD: Appreciation(-) & Depreciation(+)
Appreciationvs USD Depreciationvs USD
BancABC Full Year Financial Results 2010
BancABC Full Year Financial Results 201017
BWP vs Exchange Rates
Over Dec-09 to Dec-10 the BWP appreciated against MZN, TZS, K,
GBP, EUR, USD
The BWP depreciated against ZAR & YEN by
8.0% & 9.6%
Ex Rate Movement of BWP against Foreign Currency
Depreciation Appreciation
-10 -5 0 5 10 15 20
ZAR
MZN
TZS
K
EUR
GBP
YEN
USD
-8
19.3
12.9
6.6
10.2
7.2
-9.6
3.5
%
YoY: Dec-09 to Dec-10
BancABC Full Year Financial Results 2010
FINANCIAL REVIEW
Beki Moyo
18
BancABC Full Year Financial Results 2010
Income Statement
19
BWP’000s 2010 % ∆ 2009
Net interest income 297,845 67%
178,394
Impairment of loans & advances (15,826) -69% (51,218)
Net interest income after impairments 282,019 122%
127,176
Non interest income 264,288 -0.3% 265,017
Total income 546,307 39%392,19
3
Operating expenditure (435,093) 19%
(365,694)
Net income from operations 111,214 320% 26,499
Share of (loss)/profits of associates (20,134) -225% 16,164
Profit before tax 91,080 113% 42,663
Tax (22,495) -243% 15,768
Profit for the year 68,585 17% 58,431
Attributable to: - Ordinary
shareholders 66,710 15% 58,117
- Minorities 1,875 497% 314
EPS (thebe) 46.4 15% 40.4
2006 2007 2008 2009 20100
20
40
60
80
100
120
140
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
86 124 86 58 67
37%
42%
23%
14%16%
Attributable Profit (BWP m) and ROE (%)
Attributable profit
ROE
BancABC Full Year Financial Results 2010
Income Statement (USD)
20
USD’ 000’s 2010 % ∆ 2009
Net interest income 43,873 74% 25,176
Impairment of loans & advances (2,331) -68% (7,228)
Net interest income after impairments 41,542 131% 17,948
Non interest income 38,930 4.1% 37,402
Total income 80,472 45% 55,350
Operating expenditure (64,089) 24% (51,610)
Net income from operations 16,383 338% 3,740
Share of (loss)/profits of associates (2,966) -230% 2,281
Profit before tax 13,417 123% 6,021
Tax (3,314) -249% 2,225
Profit for the year 10,103 23% 8,246
Attributable to: - Ordinary
shareholders 9,827 20% 8,202
- Minorities 276 527% 44
EPS (cents) 6.8 19% 5.7
2006 2007 2008 2009 2010 -
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
11,868 16,597 12,560 8,202 9,827
37%
42%
23%
14%16%
Attributable Profit (USD '000) and ROE (%)
Attributable profit
ROE
BancABC Full Year Financial Results 2010
Attributable Profit Trends
Improvement in quality of earnings
Current year profitability driven by:• Higher net interest income from better
margins and higher asset base• Lower impairments in all entities other than
BancABC Tanzania
Profitability was negated by:• Loss in share of results of associates• Taxation compared to prior year tax credit
21
BancABC Full Year Financial Results 2010
Income Statement – Segmental Analysis
22
Attributable Profit
BWP 000’s 2010 % Cont 2009 % Cont
% chang
e
BancABC Botswana 20,040 30% 17,413 30% 15%
BancABC Mozambique 22,919 34% 30,266 52% -24%
BancABC Tanzania 15,804 24% 5,155 9% 207%
BancABC Zambia 11,203 17% (33,567) -58% 133%
BancABC Zimbabwe 27,716 41% 19,362 33% 43%
Banking operations 97,682 146% 38,629 66% 153%
Head Office(30,972
) -46% 19,488 34% -259%
TOTAL 66,710 100% 58,117 100% 15%
BancABC Full Year Financial Results 2010
Income Statement – Segmental Analysis (USD)
23
Attributable Profit
USD 000’s 2010 % Cont 2009 % Cont
% chang
e
BancABC Botswana 2,952 30% 2,457 30% 20%
BancABC Mozambique 3,376 34% 4,271 52% -21%
BancABC Tanzania 2,328 24% 728 9% 220%
BancABC Zambia 1,650 17% (4,737) -58% 135%
BancABC Zimbabwe 4,084 41% 2,733 33% 49%
Banking operations 14,390 146% 5,452 66% 164%
Head office (4,563) -46% 2,750 34% -266%
TOTAL 9,827 100% 8,202 100% 20%
BancABC Full Year Financial Results 2010
Income Statement – Net Interest Income
24
Positive trend in net interest income
driven by increased margins, better
liquidity and increased balance
sheet size
Impairments were largely under control
improving net margins after impairments
2006 2007 2008 2009 2010 -
50,000
100,000
150,000
200,000
250,000
300,000
350,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
Net interest margin
Net int BWP'000 NIM before impairments NIM after impairments
BW
P '0
00
BancABC Full Year Financial Results 2010
Income Statement – Segmental Analysis
25
Net Interest Income (BWP’000)
2010 2009%
change
BancABC Botswana 51,452 34,831 48%
BancABC Mozambique 29,057 38,594 -25%
BancABC Tanzania 48,038 35,178 37%
BancABC Zambia 67,331 61,632 9%
BancABC Zimbabwe 57,443 14,339 301%
Banking operations 253,321
184,574 37%
Head office 44,524 (6,180) 820%
TOTAL 297,845 178,394 67%
Mozambique affected by exchange and interest rate volatility
BancABC Full Year Financial Results 2010
Income Statement – Impairments & NPLs
26
Impairment and credit loss ratios declined
Credit losses declined sharply owing to
improved credit risk management
Net NPLs covered by collateral
Overall NPLs have now stabilised
2006 2007 2008 2009 20100.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
NPL and credit loss ratios
Gross NPL ratio Net NPL ratio Credit loss ratio
NP
L r
ati
os
Cre
dit
loss r
ati
o
BancABC Full Year Financial Results 2010
Income Statement – Non-Interest Income
Trading income, fees and commissions now main source of non-interest income
Bulk of equity investments disposed of in 2009, hence no mark-to-market gains
Overall quality of non-interest income improving – greater portion of earnings are now recurring
27
2006 2007 2008 2009 2010
-50,000
0
50,000
100,000
150,000
200,000
250,000
300,000
Non-interest income
Fees and commissions Trading income Gains on investment activities MTM - investment property Other income
BW
P '0
00
BancABC Full Year Financial Results 201028
Non-interest income
BWP 000’s 2010 Contribution 2009Contributio
n % change
Fees and commissions 103,189 39% 84,013 32% 23%
Trading income 139,586 53% 128,997 48% 8%
Non recurring items - - 51,926 20% -100%
Other income 21,513 8% 80 0.03% 26791%
Total 264,288 100% 265,016 100% -0.3%
Income Statement – Non-Interest Income
BancABC Full Year Financial Results 2010
Income Statement – Cost to Income Ratio
29
Costs have increased as retail rollout is progressing and Zimbabwe is normalising
However, cost to income ratio is declining•To continue declining as retail income contribution increases•Medium term target is cost to income ratio of 50%
Retail costs were 15% or BWP63 mill of total expenses (09: 9% or BWP35 mill)
Staff cost were BWP243 million (09: BWP180 million)
Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
49% 47%
59%
82%77%
Cost to Income Ratio
BancABC Full Year Financial Results 2010
Income Statement – Staff Costs
30
Total head count in 2010 of 668 vs 592 in 2009
Growth in staff numbers in last 12 months mainly attributable to retail expansion
2006 2007 2008 2009 2010
-
100
200
300
400
500
600
700
800
337 395
450 504 475
-
-
34
88 193
Staff compliment for the year
Wholesale Retail
337 395 484 592 668
BancABC Full Year Financial Results 2010
Retail Banking CAPEX
31
USD ‘000 BWP ‘000
Branch capital expenditure 9,526 65,539
Systems roll-out 4,550 31,303
Data centre centralisation 3,478 23,926
17,554 120,768
All funded from internal resources
BancABC Full Year Financial Results 2010
Balance Sheet
32
BWP '000s 2010 2009 % change
Cash and short term funds 999,338 881,884 13%
Financial assets held for trading 1,117,827 880,740 27%
Financial assets designated at fair value 79,139 17,905 342%
Loans and advances 3,078,110 1,995,325 54%
Property and equipment 330,218 278,975 18%
Other assets 406,809 362,916 12%
TOTAL ASSETS 6,011,441 4,417,745 36%
Deposits 4,907,045 3,355,118 46%
Borrowed funds 579,420 543,822 7%
Other liabilities 87,116 103,026 -15%
Total liabilities 5,573,581 4,001,966 39%
Equity attributable to ordinary shareholders 422,337 399,069 6%
Minority interest 15,523 16,710 -7%
Total equity 437,860 415,779 5%
TOTAL EQUITY AND LIABILITIES 6,011,441 4,417,745 36%
BancABC Full Year Financial Results 2010
Balance Sheet (USD)
33
USD '000s 2010 2009 % change
Cash and short term funds 154,997 132,194 17%
Financial assets held for trading 173,375 132,023 31%
Financial assets designated at fair value 12,274 2,684 357%
Loans and advances 477,415 299,099 60%
Property and equipment 51,217 41,818 22%
Other assets 63,097 54,401 16%
TOTAL ASSETS 932,375 662,219 41%
Deposits 761,083 502,932 51%
Borrowed funds 89,868 81,519 10%
Other liabilities 13,512 15,443 -13%
Total liabilities 864,463 599,894 44%
Equity attributable to ordinary shareholders 65,504 59,820 10%
Minority interest 2,408 2,505 -4%
Total equity 67,912 62,325 9%
TOTAL EQUITY AND LIABILITIES 932,375 662,219 41%
BancABC Full Year Financial Results 2010
Balance Sheet – Overview
34
36% growth in balance sheet from BWP4.4bn to
BWP6bn
Deposits up 46%• Growth across all the
markets• Significant growth from
BancABC Botswana and BancABC Zimbabwe
Loans and advances up 54%• Significant growth in
Zimbabwe as economy stabilised
• Focus during the year for Tanzania was mostly on collections
BancABC Full Year Financial Results 2010
Balance Sheet – Loans and Advances
35
BancABC Zimbabwe now largest contributor to Group’s loan book
Lower growth experienced in other markets
Compounded annual growth rate of 34%
BancABC Botswana
26%
BancABC Mozam-bique14%BancABC
Tanzania15%
BancABC Zambia:8
%
BancABC Zimbabwe:
32%
ABCH & Other
6%
Loans
2006 2007 2008 2009 2010 -
500 1,000 1,500 2,000 2,500 3,000 3,500
941 1,247
2,250 1,995
3,078
Net Loans and Advances (BWP m)
BancABC Full Year Financial Results 2010
Balance Sheet – Deposits
36
Growth in deposits across footprint, CAGR = 32%
Additional funds generated invested in loans and money market instruments
BancABC Botswana still the largest contributor
BancABC Zimbabwe second largest contribution
BancABC Botswana:40%
BancABC Mozambique:17%
BancABC Tanzania:16%
BancABC Zambia:5%
BancABC Zimbabwe:22%
Deposits
2006 2007 2008 2009 2010 -
1,000
2,000
3,000
4,000
5,000
6,000
1,595 1,962
2,822 3,355
4,907
Deposits (BWP m)
BancABC Full Year Financial Results 2010
Balance Sheet – Capital Adequacy
37
Total Equity (BWP m)
Capital Adequacy Ratio
Subsidiary 2010 2009 Min 2010 2009
BancABC Botswana 171 160 15% 18% 23%
BancABC Mozambique 162 145 8% 24% 17%
BancABC Tanzania 97 96 12% 15% 23%
BancABC Zambia 86 42 10% 21% 10%
BancABC Zimbabwe 191 102 10% 21% 20%All entities are adequately capitalised
BancABC Full Year Financial Results 2010
OPERATIONAL OVERVIEW
Francis Dzanya
38
BancABC Full Year Financial Results 201039 BancABC Full Year Financial Results 2010
Operations Summary
› 17 Retail branches as of now
› Staff compliment now
Botswana Mozambique
Tanzania Zambia Zimbabwe
SquareFairgroundsFrancistown
MaputoBeira
MatolaTete
Chimoio
UpangaKariako
Pyramid Plaza
LumumbaKitwe
Mount PleasantHeritageAbercornMutare
ABCH Group693 Employees
Botswana
BancABC Botswana
106 Employees
Mozambique
BancABC Mozambique102 Employees
Tanzania
BancABC Tanzania
81 Employees
Zambia
BancABC Zambia
125 Employees
Zimbabwe
BancABC Zimbabwe
232 Employees
South Africa
100% 100% 81% 100% 100%
BancABC South Africa47 Employees
100%
BancABC Full Year Financial Results 201040 BancABC Full Year Financial Results 2010
Improved quality of loan book
Net impairment charge was low
Non-performing loans down from prior year
High collections on previously impaired accounts
Botswana
Mozambique
Tanzania
Zambia Zimbabwe
Net Impairment charge
Down Down 77% to BWP2m
Up 41% to
BWP18m
Down Down
› Overall improvement of loan book
Operations Summary
BancABC Full Year Financial Results 201041 BancABC Full Year Financial Results 2010
› All subsidiaries adequately capitalized
› Mozambique additional tier I capital of US $3m and tier II capital of US $2m
› Zambia additional tier I capital of US $5m and tier II capital of US $1m
› Zimbabwe additional tier I capital of US $10m
Operations Summary
Botswana Highlights
PAT improved 20% to BWP21m
• Increased profitability driven by higher net interest income:• Improved margins and increased interest earning assets• NII increased 48% to BWP51m
• Non-interest income declined by 22% to BWP17m following reduction in forex trading volumes and margins
• Operating expenses increased 27% to BWP59m – retail expansion
Balance sheet increased 30%, customer deposits increased 40% to BWP2b; funds invested in loans and money market instruments
42 BancABC Full Year Financial Results 2010
Mozambique Highlights
PAT of BWP23m, 24% lower than prior year• Lower income due to lower margins and
heavy depreciation of Meticais against BWP and USD
• Expense growth lower at 6% even with retail expansion mainly due to currency depreciationGrowth in balance sheet subdued
43 BancABC Full Year Financial Results 2010
Tanzania Highlights
Despite increased impairment and operating expenses, PAT increased 207% to BWP16m• Expenses increased 18% to BWP48m mostly from
retail expansion related costs• Non-interest income increased 40% to BWP38m from
increased forex transactions and bond trading
BancABC Tanzania’s liquidity position improved significantly leading to higher net interest income• Deposits grew 18% to BWP0.8bn• Loan book declined 8% to BWP0.4bn• Excess liquidity invested in money market
instruments• Margins higher due to low funding rates for most of
the year44 BancABC Full Year Financial Results 2010
Zambia Highlights
PAT of BWP11m compared to a loss of BWP34m in prior year• Operating expenses increased 5% to BWP80m• Costs tightly managed• Synergies from the merge of the bank with Microfin • Net recovery of BWP3m compared to a net impairment charge
of BWP27m in prior year
Balance sheet now better structured:
• Deposits increased 21% to BWP253m• Cost of funds declined resulting in higher margins• Loan book down 22% to BWP233m, efforts were devoted to
collections• Net interest income up by 9% to BWP67m
45 BancABC Full Year Financial Results 2010
Zimbabwe Highlights
PAT up 38% to BWP27 mill• Expenses up 71% to BWP107m due to industry-
wide staff costs increase and retail expansion• Bank’s income increased 93% to BWP140m
Subsidiary grew its balance sheet significantly:• Deposits increased 316% to BWP1.1bn• Loans and advances increased 810% to BWP0.9bn• Transaction flows have also increased• Combined effect was to increase subsidiary’s
income
46 BancABC Full Year Financial Results 2010
BancABC Full Year Financial Results 2010
STRATEGY AND OUTLOOK
Douglas Munatsi
Follow up on 2010 Objectives
48
Grow & Diversify Customer Base
Increase Non-Interest Income
Reduce Impairments
Boost Net Interest Income
Control Operatingcosts
Reduce cost of Funding
Invest for growth
› Merge Microfin and Zambian ops and cross sell
› Convert wholesale banking customers to retail bank
› Expand Retail Banking business
› Cross sell products to borrowing customers
› Improved credit management
› Managed growth of the loan portfolio
› Costs driven by incremental revenue potential
› Improve turnaround times
› Expansion of Retail Banking footprint
› Invest in human capital
› Retain a substantial amount of Group‘s earnings
OBJECTIVE STRATEGIC ACTIVITIES RESULTS
On-going
Achieved, but results lagging in Tanzania
On-going
Cost to Income ratioOn-going
On-going
Merger successfully closed, rollout of
retail products on-goingBancABC Full Year Financial Results 2010
2011 Objectives
49
Grow & Diversify Customer Base
Increase Non-Interest Income
Reduce Impairments Boost Net Interest Income
Control Operatingcosts
Reduce cost of Funding
Manage investment in Growth
› Increase both wholesale and retail customer numbers
› Embed Retail Banking business
› Cross sell products to borrowing customers
› Improved credit management
› Managed growth of the loan portfolio
› Costs driven by incremental revenue they can generate
› Improve turnaround times
› Embed Retail Banking rollout across footprint
› Invest in human capital
› Retain a substantial amount of Group‘s earnings
OBJECTIVE STRATEGIC ACTIVITIES On-goin
g
BancABC Full Year Financial Results 2010
BancABC Full Year Financial Results 2010BancABC Full Year Financial Results 2010
Dividend declaration
50
A final dividend of 10 thebe per share to be paid out to shareholders on register on 1 April
2011
Outlook
51
Economies generally stable in operating
countries
Downside risks exist :• Unrest in Middle East and
North Africa • Debt crisis in Europe• Risk of price bubbles in China• Quantitative easing and other
stimulus packages
Retail rollout to continue until fully embedded in
all subsidiaries
Group to also continue growing wholesale
division
Impairments largely under control; results in Tanzania to show in the
near future
Sustained dividend payments going forward
BancABC Full Year Financial Results 2010
BancABC Full Year Financial Results 2010
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