Consolidated statement of financial positionas at 31 December

BWP‘000s 2015 2014

ASSETSCash and short term funds 3 006 546 3 235 887 Financial assets held for trading 2 134 397 1 378 618 Financial assets designated at fair value 231 129 206 849 Derivative financial assets 21 236 595 Loans and advances 13 205 421 11 226 116 Investment securities 65 235 72 032 Prepayments and other receivables 430 796 266 988 Current tax assets 51 799 77 967 Investment in associates 27 772 15 110 Property and equipment 697 236 761 995 Investment property 134 403 25 678 Other intangible assets 145 664 103 393 Deferred tax assets 158 703 154 124

TOTAL ASSETS 20 310 337 17 525 352

EQUITY AND LIABILITIESLiabilitiesDeposits 15 569 139 14 142 110 Derivative financial liabilities 58 248 59 804 Creditors and accruals 592 327 266 170 Current tax liabilities 3 578 6 505 Deferred tax liability 32 150 27 435 Borrowed funds 2 756 202 2 070 282

Total liabilities 19 011 644 16 572 306

Stated capital 1 448 704 781 025 Foreign currency translation reserve (567 474) (145 358)Non distributable reserves 549 657 290 325 Distributable reserves (79 640) 73 195

Equity attributable to ordinary shareholders 1 351 247 999 187

Non-controlling interests (52 554) (46 141)

Total equity 1 298 693 953 046

TOTAL EQUITY AND LIABILITIES 20 310 337 17 525 352

Loan commitments and other financial facilities 1 159 355 1 477 501

Consolidated statement of financial positionas at 31 December

USD’000s Notes 2015 2014

ASSETSCash and short term funds 267 963 340 415 Financial assets held for trading 190 231 145 031 Financial assets designated at fair value 20 600 21 760 Derivative financial assets 1 893 63 Loans and advances 5 1 176 954 1 180 987 Investment securities 5 814 7 578 Prepayments and other receivables 38 395 28 087 Current tax assets 4 615 8 202 Investment in associates 2 475 1 590 Property and equipment 62 142 80 162 Investment property 11 979 2 701 Other intangible assets 12 983 10 877 Deferred tax assets 14 145 16 214

TOTAL ASSETS 1 810 189 1 843 667

EQUITY AND LIABILITIESLiabilitiesDeposits 1 387 624 1 487 750 Derivative financial liabilities 5 191 6 292 Creditors and accruals 52 791 28 001 Current tax liabilities 319 684 Deferred tax liability 2 865 2 886 Borrowed funds 6 245 651 217 794

Total liabilities 1 694 441 1 743 407

Stated capital 129 118 82 164 Foreign currency translation reserve (50 577) (15 326)Non distributable reserves 49 314 30 573Distributable reserves (7 423) 7 700

Equity attributable to ordinary shareholders 120 432 105 111

Non-controlling interests (4 684) (4 851)

Total equity 115 748 100 260

TOTAL EQUITY AND LIABILITIES 1 810 189 1 843 667

Loan commitments and other financial facilities 7 103 329 131 685

1. Audit opinion These financial results have been extracted from the audited group financial statements,

which have received an unqualified audit opinion.

2. Stated capital During the year, Atlas Mara Ltd converted part of its loan to ABC Holdings Limited,

worth $50 million into equity. This increased stated capital to $129.1 million and the number of issued shares to 419,229,374. The shares rank pari pasu with all other issued ordinary shares.

3. Non-interest incomeUSD’000s 2015 2014

Net gains/(losses) on financial instruments designated at fair value through profit or loss 447 (6 010)Gains/(losses) on derivatives 51 (902)Dividends received 53 1 082 Net fee and commission income 56 173 57 303 Forex trading income and currency revaluation 15 475 11 964 Gains on disposal of investment property – 143 Re-measurement of investment properties 3 036 (619)Rental and other income 1 346 6 353

76 581 69 314

Notes to the statement of profit or loss and statement of financial position

Consolidated statement of changes in equityfor the year ended 31 December

USD ‘000s Stated capital

Foreign currency

translation reserve

Capital reserves

Available for sale reserve

Distributable reserves Total

Non–controlling

interest Total

equity

Balance as at 1 January 2014 82 164 (15 164) 25 287 (62) 62 921 155 146 67 155 213

Loss for the year – – – – (48 648) (48 648) (4 833) (53 481)

Other comprehensive income: – (162) (16) 75 – (103) (85) (188)

Exchange differences on translating foreign operations – 2 918 – – – 2 918 (85) 2 833 Net loss on hedge of net investment in foreign operations – (3 080) – – – (3 080) – (3 080)Share of reserves in associate companies – – (16) – – (16) – (16)Movement in available for sale reserves: – – 75 – 75 – 75

– Arising in current year – – – 75 75 – 75 – Realised through profit and loss – – – – – – – –

TOTAL COMPREHENSIVE INCOME – (162) (16) 75 (48 648) (48 751) (4 918) (53 669)

Transfers within equity

Movement in general credit risk reserve – – 5 137 – (5 137) – – – Movement in statutory reserves – – 152 – (152) – – –

Total transfers within equity – – 5 289 – (5 289) – – –

Transactions with owners – – – – – – – –

Dividends paid – – – – (1 284) (1 284) – (1 284)Net proceeds from shares issued – – – – – – – –

Total transactions with owners – – – – (1 284) (1 284) – (1 284)

Balance as at 31 December 2014 82 164 (15 326) 30 560 13 7 700 105 111 (4 851) 100 260

Profit/(loss) for the year – – – – (572) (572) 1 109 537

Other comprehensive income: (3 046) (35 251) 3 418 312 460 (34 107) (942) (35 049)

Exchange differences on translating foreign operations (3 046) (31 755) – – – (34 801) (1 089) (35 890)Net loss on hedge of net investment in foreign operations – (3 496) – – – (3 496) – (3 496)Revaluation of property net of deferred tax – – 3 397 – – 3 397 – 3 397 Share of reserves in associate companies – – – 312 – 312 147 459 Movement in available for sale reserves: – – 21 – 460 481 – 481

– Arising in current year – – 21 – – 21 – 21 – Realised through profit and loss – – – – 460 460 – 460

TOTAL COMPREHENSIVE INCOME (3 046) (35 251) 3 418 312 (112) (34 679) 167 (34 512)

Transfers within equity

Movement in general credit risk reserve – – 15 011 – (15 011) – – – Movement in statutory reserves – – – – – – – –

Total transfers within equity – – 15 011 – (15 011) – – –

Transactions with owners Dividends paid – – – – – – – –Net proceeds from shares issued 50 000 – – – – 50 000 – 50 000

Total transactions with owners 50 000 – – – – 50 000 – 50 000

Balance as at 31 December 2015 129 118 (50 577) 48 989 325 (7 423) 120 432 (4 684) 115 748

Directors: JA Claassen (South African), RE Credo (British), SA Fakie (South African), BM Gibbs (American), LT Gwata (Zimbabwean), DC Khama (Motswana), Dr. B Mudavanhu (Zimbabwean)*, SR Pfende (Zimbabwean)*, MM Schneiders (Dutch), JF Vitalo (American)

* Executivewww.bancabc.com

4. Operating expensesUSD’000s 2015 2014

Administrative expenses 79 844 64 852 Property lease rentals 4 966 5 389 Staff costs 52 306 53 335 Auditor’s remuneration 1 207 1 163 Depreciation 7 947 9 005 Amortisation charge 3 411 4 474 Directors’ remuneration 1 571 9 847

151 252 148 065

5. Loans and advancesUSD’000s 2015 2014

Mortgage lending 49 962 49 624 Instalment finance 37 450 68 331 Corporate lending 594 125 556 641 Commercial and property finance 21 949 11 995 Consumer lending 567 548 591 651

Gross loans and advances 1 271 034 1 278 242 Less: impairments (note 5.1) (94 080) (97 255)

Net loans and advances 1 176 954 1 180 987

5.1 Impairment AnalysisSpecific impairments 73 428 81 981 Portfolio impairments 20 652 15 274

94 080 97 255

6. Borrowed fundsUSD’000s 2015 2014

BIFM Capital Investment Fund One (Pty) Ltd 22 528 26 990 Afrexim Bank 89 689 85 495 Africa Agriculture and Trade Investment Fund S.A. 24 869 24 752 Norsad Finance Limited 10 672 12 068 Atlas Mara Limited 50 126 20 009 National Development Bank of Botswana Limited 2 304 4 559 Other 45 463 43 921

245 651 217 794

6. Borrowed funds (continued)USD’000s 2015 2014

Fair valueBIFM Capital Investment Fund One (Pty) Ltd 27 651 31 539 Afrexim Bank 89 812 86 777 Africa Agriculture and Trade Investment Fund S.A. 25 382 27 594 Norsad Finance Limited 11 471 13 882 Atlas Mara Limited 50 126 20 010 National Development Bank of Botswana Limited 2 312 4 543 Other 45 460 43 969

252 214 228 314

Maturity analysisOn demand to one month 196 4 064 One to three months 1 268 1 418 Three months to one year 105 593 93 152 Over one year 138 594 119 160

245 651 217 794

7. Loan commitments and other financial facilitiesUSD’000s 2015 2014

Guarantees 52 271 82 041 Letters of credit, loan commitments and similar contingent liabilities 51 058 49 644

103 329 131 685

Maturity analysisLess than one year 88 681 122 312 Between one and five years 14 648 9 373

103 329 131 685

8. Exchange RatesClosing Average Closing AverageDec 15 Dec 15 Dec 14 Dec 14

Botswana pula 11.22 10.13 9.51 9.00 Tanzanian shilling 2 158.65 2 038.06 1 739.17 1 672.40 Zambian kwacha 10.98 8.62 6.40 6.23 Mozambican metical 47.03 39.04 33.58 31.52 South African rand 15.54 12.77 11.56 10.87

Notes to the statement of profit or loss and statement of financial position (continued)

SummaryThe group is pleased to announce a significant turn-around in operational performance, recording an attributable loss of US$0.6 million; a significant improvement from the reported loss of US$48.6 million in 2014.

Statement of financial positionThe statement of financial position remained stable at US$1.8 billion, compared with December 2014. Loans and deposits declined marginally to US$1.18 billion and US$1.39 billion respectively, with currency depreciation across the markets BancABC operates in, contributing to this marginal decline.

Net interest income Net interest income of US$95.8 million is lower than the US$102.1 million in 2014, due to marginal decline in loans and advances as well as currency depreciation.

Non-interest income Non-interest income of US$76.6 million was up 10.5% compared to 2014, largely driven by strong forex trading revenue, as well as growth in fee and commission revenues that has largely resulted from retail asset growth.

Consolidated statement of comprehensive incomefor the year ended 31 December

BWP‘000s 2015 2014

Result for the year 5 458 (481 368)

Other comprehensive income, net of tax

Other comprehensive income to be reclassified to profit or loss in subsequent periods: (389 463) (1 691)

Exchange differences on translating foreign operations (363 570) 25 504 Net loss on hedge of net investment in foreign operations (35 416) (27 724) Share of reserves in associate companies 4 650 (143) Movement in available-for-sale reserves 4 873 672

Other comprehensive income not to be reclassified to profit or loss in subsequent periods: 34 415 –

Revaluation of property (net of tax) 34 415 –

Total comprehensive income for the year (349 590) (483 059)

Total comprehensive income attributable to: Ordinary shareholders (351 287) (438 810) Non-controlling interest 1 697 (44 249)

(349 590) (483 059)

Consolidated statement of profit or loss

for the year ended 31 December

BWP‘000s 2015 2014

Interest and similar income 2 213 542 2 098 307 Interest and similar expense (1 242 946) (1 179 504)

Net interest income 970 596 918 803 Provision for credit losses (115 701) (650 196)

Net interest income after provision for credit losses 854 895 268 607 Non-interest income 775 770 623 890

Total operating income 1 630 665 892 497 Operating expenses (1 532 186) (1 332 716)

Net income from operations 98 479 (440 219)Net income from associates 1 074 (559)

Result before tax 99 553 (440 778)Income tax expense (94 095) (40 590)

Result for the year 5 458 (481 368)

Attributable to:Ordinary shareholders (5 790) (437 880)Non-controlling interests 11 248 (43 488)

Result for the year 5 458 (481 368)

Consolidated statement of profit or loss

for the year ended 31 December

USD’000s Notes 2015 2014

Interest and similar income 218 513 233 122 Interest and similar expense (122 700) (131 043)

Net interest income 95 813 102 079 Provision for credit losses (11 422) (72 237)

Net interest income after provision for credit losses 84 391 29 842 Non-interest income 3 76 581 69 314

Total operating income 160 972 99 156 Operating expenses 4 (151 252) (148 065)

Net income from operations 9 720 (48 909)Net income from associates 106 (62)

Result before tax 9 826 (48 971)Income tax expense (9 289) (4 510)

Result for the year 537 (53 481)

Attributable to:Ordinary shareholders (572) (48 648)Non-controlling interests 1 109 (4 833)

Result for the year 537 (53 481)

Consolidated statement of comprehensive incomefor the year ended 31 December

USD‘000s 2015 2014

Result for the year 537 (53 481)

Other comprehensive income, net of tax

Other comprehensive income to be reclassified to profit or loss in subsequent periods: (38 446) (188)

Exchange differences on translating foreign operations (35 890) 2 833 Net loss on hedge of net investment in foreign operations (3 496) (3 080) Share of reserves in associate companies 459 (16) Movement in available-for-sale reserves 481 75

Other comprehensive income not to be reclassified to profit or loss in subsequent periods: 3 397 –

Revaluation of property (net of tax) 3 397 –

Total comprehensive income for the year (34 512) (53 669)

Total comprehensive income attributable to: Ordinary shareholders (34 679) (48 751) Non-controlling interest 167 (4 918)

(34 512) (53 669)

Consolidated statement of cash flows

for the year ended 31 December

USD‘000s 2015 2014

CASH FLOWS FROM OPERATING ACTIVITIES (67 851) 54 664

Cash generated from operating activities 30 693 37 103

Result before tax 9 826 (48 971)Adjusted for: –Provision for credit losses 11 422 72 237 Depreciation and amortisation 11 358 13 479 Dividends receivable – (1 082)Net unrealised (gains)/losses on derivative financial instruments (51) 902 Re-measurement of investment property (3 036) 619 Net gains on financial instruments at FV through profit or loss (447) –Loss from associates – 62 Loss on held to maturity instruments 1 621 –Profit on disposal of property and equipment – (143)

Tax paid (6 667) (13 664)

Net cash inflow from operating activities before changes in operating funds 24 026 23 439

Net (decrease)/increase in operating funds (91 877) 31 225

Decrease in operating assets (279 734) (156 290)Increase in operating liabilities 187 857 187 515

CASH FLOWS FROM INVESTING ACTIVITIES (10 922) (6 630)

Purchase of property and equipment (6 271) (6 316)Purchase of intangible assets (6 548) (1 547)Dividends received 53 1 082 Proceeds on disposal of property and equipment 1 844 151

CASH FLOWS FROM FINANCING ACTIVITIES 83 971 28 185

Increase in borrowed funds 83 971 29 469 Dividend paid – (1 284)

Increase in cash and cash equivalents 5 198 76 219

Cash and cash equivalents at the beginning of the year 340 415 274 944Exchange adjustment on opening balance (77 650) (10 748)

Cash and cash equivalents at the end of the year 267 963 340 415

Cash and cash equivalents 192 732 247 525 Statutory reserves 75 231 92 890

Cash and short term funds 267 963 340 415

Credit impairmentsThe impairment charge of US$11.4 million in 2015 was substantially lower than the US$72.2 million in 2014, mainly due to significant asset recoveries in Zimbabwe and Tanzania.

Asset qualityThe group remains focused on improving the quality of the loan book. Total non-performing loans declined marginally to US$198 million in 2015 (2014: US$202 million). The adequacy of provisioning for all risks within the loan book is considered sufficient given the assessment of risk in the asset book.

CapitalisationAs at December 2015, all individual subsidiaries reported a capitalised position compliant with regulatory requirements.

Change in functional currencyOwing to the change in the underlying business following the acquisition of ABC Holdings Limited by Atlas Mara Limited, with effect from 1 July 2015 the group changed its functional currency from Botswana pula, to United States dollar.

The group will continue to present some financial information in dual presentation currencies (the other currency being Botswana Pula).

Outlook While challenging, the first year of the acquisition has been met with considered success, and the group continues its focus on the execution of key initiatives that will continue to support improved performance.

AcknowledgmentWe express our appreciation for the continued support of our customers, investors, the Board, management and staff, and regulators in the markets in which we operate.

J A Claassen B Mudavanhu (Dr)Group Chairman Group Chief Executive Officer (Acting)

29 March 2016 29 March 2016

Reshaping African Bankingwww.bancabc.com

PRELIMINARY GROUP RESULTSFOR THE YEAR ENDED 31 DECEMBER 2015

ABC HOLDINGS LIMITED