openPR Logo
Press release

ADC's associate, BancABC reports very strong half-year results

15.08.2012
ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa, is pleased to announce that its 50.4% owned associate BancABC achieved strong results for the half-year ended 30 June 2012. The results were largely driven by significant growth in income on the back of the expansion of retail banking. Pre-tax profits grew to BWP 96 million (EUR 9.8 million), 53% up on the comparative period in 2011. Attributable profit of BWP 56 million (EUR 5.7 million) was 49% above prior year results, leading to a return on equity of 17.8%.

Total income for the period increased by 53% compared to the period last year to BWP 476 million (EUR 48.7 million) with growth being recorded in all major income lines. BancABC's retail network grew to 55 branches, up from 35 at the end of June 2011, with parallel growth in total retail customer numbers by 144% to 155,763 customers at the end of June 2012.

Total costs at BWP 379 million (EUR 38.8 million) were 55% higher than recorded in the comparative period in 2011 largely due to the expansion of its retail banking business. Notwithstanding a current cost to income ratio of 75% due to the retail banking rollout, the group is still confident that the target of 50% should be achievable in the next few years.

The group's balance sheet grew by 18% to BWP 10.8 billion (EUR 1.1 billion) compared to December 2011 and by 47% since June 2011. Total equity moved positively by 9% to BWP 666 million (EUR 68.2 million) compared to December 2011 and by 42% in relation to June 2011. Loans and advances show healthy growth of 29% to BWP 7.8 billion (EUR 0.8 billion) since December 2011 and of 95% since June 2011, largely on the back of strong growth in Botswana's performance. Simultaneously non-performing loans have been reduced to 5.4% with a reduction of the credit loss ratio to 0.8%. Deposits increased by 19% since year-end 2011 to BWP 8.8 billion (EUR 0.9 billion) at the end of June 2012 and by 46% since June 2011.

The operational performance of the five banking subsidiaries in the Southern African Development Community was overall excellent with growing year-on-year profits in Botswana (+228%), Mozambique (+77%), Zambia (+174%) and Zimbabwe (+30%). The only exception had been Tanzania, which posted a loss of BWP 5 million (EUR 0.5 million) (-149%). This was due to a reduction in net interest margins owing to a significant increase in deposit rates at the end of 2011 and the beginning of 2012. The higher cost of money could not be entirely passed on to the borrowers.

BancABC has just successfully completed a USD 50 million rights issue, mainly taken up by ADC. The capital raised will be deployed to banking subsidiaries for their capitalization. Following the capital raise, all banking subsidiaries of BancABC will either be in the top tier or upper second tier of banks in the respective countries that the group operates in. Looking ahead, Douglas Munatsi, CEO of BancABC said the group was well-placed to continue on its growth path. 'The additional capital that we have raised should ensure that the improved performance should be sustained.'

In line with the group's dividend policy, an interim dividend of 8 Thebe (about USD 0.01) per share is being proposed. This will be paid on 21 September 2012 to shareholders on the register on 7 September 2012. Due to its most recent acquisition of 50.4% in BancABC, ADC will therefore be granted a dividend of approximately above USD 1.0 million.

Dirk Harbecke, ADC's CEO, commented on the encouraging results: 'The presented results underline our recent decision to take a majority stake in BancABC and make it our key banking operation in Southern and East Africa. ADC intends to consolidate BancABC with consolidated financial statements presented latest at year-end 2012. Therefore, all BancABC core numbers will be reflected in ADC's balance sheet. We are particularly pleased that the performance was driven predominantly by an increase in net interest income from the expanding consumer lending segment, showing good progress in the retail banking rollout. The BancABC management team has our full confidence and already contributes significantly to the success of ADC, also proven by the steadily growing dividend stream that we are receiving from BancABC.'

About BancABC
BancABC is the banking brand name of ABC Holdings Limited, a company registered in Botswana, which has a primary listing on the Botswana Stock Exchange and a secondary listing on the Zimbabwe Stock Exchange. BancABC is a regional bank with operations in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe and has a group services office located in Johannesburg, South Africa. Historically, BancABC was a merchant bank offering a diverse range of services. These included wealth management, corporate banking, treasury services, leasing, asset management and stock broking. BancABC recently expanded into the retail space. BancABC's vision is to become Africa's preferred banking partner by offering world-class financial solutions. For information, please visit www.bancabc.com

About ADC
ADC African Development Corporation ('ADC') (ISIN: DE000A1E8NW9; Bloomberg: AZC.GR, www.african-development.com), a member of the Angermayer, Brumm & Lange Group (www.abl-group.de), was established in September 2007 and is on its way to become one of the leading banking groups in sub-Saharan Africa, active in corporate and retail banking and proprietary investments. The company's success is primarily due to its local management team, which follows international best practice principles to further develop its operational companies, and implements international best practice processes to increase their profitability. ADC was amongst the first international emerging market investors to be integrated into the insurance solution offered by the Multilateral Investment Guarantee Agency ('MIGA'), a member of the World Bank Group, primarily due to its strong operational approach and adherence to the highest ethical standards. This insurance offers protection against a variety of political risks, in particular the risk of radical political change.

ADC African Development Corporation
Investor Relations
Grüneburgweg 18
60322 Frankfurt
Telefon: +49 69 719 12 80 119
Telefax: +49 69 719 12 80-089
Email: investor-relations@african-development.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release ADC's associate, BancABC reports very strong half-year results here

News-ID: 232801 • Views: 1228

More Releases from ADC African Development Corporation GmbH & Co. KGaA

ADC's investment, Union Bank of Nigeria (UBN), announces positive first half yea …
ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa, announces the strong second quarter performance of Union Bank of Nigeria ('UBN'), ADC's banking asset in Nigeria. UBN delivered H1 2012 results driven by growth in net fee income and lower operating costs. At the bank level, UBN reversed last year's loss of EUR 219.1 million
ADC takes over majority of BancABC ++ Suspension of share buyback program
14.08.2012 Dissemination of an Ad hoc announcement according to § 15 WpHG ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa, is pleased to announce that it has now become the majority shareholder in ABC Holdings Limited ('BancABC') with a shareholding of 50.4% as a result of the underwriting of BancABC's recently finished rights offer.
ADC African Development: ADC's newest investment, Union Bank Nigeria, reports a …
ADC African Development Corporation GmbH & Co. KGaA: ADC's newest investment, Union Bank Nigeria, reports a EUR 30 million net profit in Q1 2012 ++ Douglas Munatsi installed as ADC board representative 06.08.2012 ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa, is pleased to announce that its newest investment, Union Bank of Nigeria plc.
Resolution Health awarded Medical Insurance Provider of the Year 2012
ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa is pleased to announce that its portfolio company, Resolution Health East Africa Limited (RHEAL), won two awards at the Kenyan annual insurance awards ceremony in Nairobi. RHEAL was the winner of the Medical Insurance Provider of the Year award and the runner up for the

All 5 Releases


More Releases for ABC

Automated Border Control (ABC) Market
Automated Border Control (ABC) Market is expected to reach 2273 Million by 2026 from 536.5 Million in 2017 at CAGR of 17.4% (Detailed analysis of the market CAGR is provided in the report). Automated Border Control Market (ABC) is an immigration control system proposed to satisfy the future border control needs of airports resulting from the rapid growth in the number of passengers worldwide. Automated Border Control Market (ABC) can
“The ABC of Revelation and the Beast” by Nicholas Brand
ISBN #978-1543493139 “The ABC of Revelation and the Beast” by Nicholas Brand This newly-published book unwraps some of perennial mysteries of the Biblical Revelation About the Book: This book aims to solve some of the great enigmas of the last book of the Bible, which has fascinated and puzzled Christians for centuries. The interpretation contends that the USSR is the beast and reveals the meaning and identity of the seven heads and ten
ABC Market Structure Analysis for the Period 2015 to 2021
Acetone cyanohydrin is manufactured by the reaction of acetone and hydrogen cyanide in presence of water solutions such as KOH and NaOH. Tthe intermediate product however, is unstable in alkaline solution and hence is treated with sulphuric acid until its pHreaches 1-2. Acetone cyanohydrin is used as an intermediate product for manufacturing methylacrylates, methacrylamide, methacrylic acid and methacrylonitrile among others. Acetone cyanohydrin is majorly consumed in the manufacture of methylmethacrylates
Cereal Bars Market Opportunities in the Abc Market by 2021
A cereal bar is made up of nuts, oats, sugar, dry fruits, flour, honey, wheat, corn, and puffed rice. Cereal bars have always been perceived as on-the-go breakfast snack items that are healthier alternatives of chocolate and other snacks. Cereal bars are high in fiber and protein and low in carbohydrates, vitamins, minerals, sodium, and antioxidants. They come in various flavors such as chocolate, peanut butter, banana, caramel, banana, honey,
Macro and Microeconomic Factors Continue to Impact ABC Market
Oilfield chemicals play a significant role in the oil and gas industry. Most common oilfield chemicals used by the industry are organic chemicals and solvents, surfactants, transition metal compounds, inorganic salts, water-soluble and oil-soluble polymers. These chemicals control the bacterial growth, foam & wax formation and corrosive action in oils and gases. Drilling additives is one of the major applications in the oilfield chemicals market. A sample of this report is
ABC Market to Register a Healthy CAGR Throughout
In Secondary hyperparathyroidism, the parathyroid glands overproduce the parathyroid hormone to help the body to increase the content of calcium in the blood. The parathyroid glands only have a job to maintain the calcium levels in the blood, and the four type of parathyroid glands start secreting the hormone if the calcium levels are low in the blood. A sample of this report is available upon request @ https://www.persistencemarketresearch.com/samples/15100 When a