DGAP-News: ADC African Development Corporation GmbH&Co. KGaA: ADC's associate, BancABC reports very strong half-year results
(firmenpresse) - DGAP-News: ADC African Development Corporation GmbH&Co. KGaA / Key
word(s): Miscellaneous
ADC African Development Corporation GmbH&Co. KGaA: ADC's associate,
BancABC reports very strong half-year results
15.08.2012 / 15:44
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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, DouglasMunatsi, 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.
Contact:
Investor Relations
investor-relations(at)african-development.com
T +49 69 719 12 80 119
End of Corporate News
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Language: English
Company: ADC African Development Corporation GmbH&Co. KGaA
Grüneburgweg 18
60322 Frankfurt/Main
Germany
Phone: +49 69 719 12 80 00
Fax: +49 69 719 12 80 011
E-mail: info(at)african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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181801 15.08.2012
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Datum: 15.08.2012 - 15:44 Uhr
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