Banc ABC recently announced half year results for the period ended 30 June 2013 were largely driven by the substantial growth in retail banking for the period under review.
Group pre-tax profits grew to P169 million, 77% up on the P96 million achieved in the prior year comparative period.
The group registered profits of P143 million which was 157% higher than P56 million achieved in 2012.
Group Chief Executive Officer, Douglas Munatsi said, “We are extremely pleased with an outstanding set of results.
They accurately reflect the increasing strength of the Group’s operations.
The good performance affirms the strategy that was taken a few years ago to convert the business from a purely wholesale bank to a universal bank.”
Although total costs at P529 million were 40% higher than P379 million recorded in 2012 mainly due to the Group’s continued expansion of its Retail footprint, Group’s revenue is now growing faster than costs.
The Group says the cost to income ratio fell to 62% from 75% in prior year.
Bank ABC’s balance sheet grew to P13.7 billion compared to P13.4 billion in December 2012 and P10.8 billion as at 30 June 2012.
“Total equity now stands at P1.4 billion which positions the Group to underwrite bigger ticket business.
Loans and advances increased by P710 million to P9.9 billion from P9.1 billion as at December 2012. Deposits increased to P10.9 billion from P10.7 billion in December 2012,” noted Munatsi.
On the regional operations of the Group in Southern Africa, Munatsi said that the only operation which still had major challenges was BancABC Tanzania.
He noted that the operation’s balance sheet had recently been restructured with all non-performing loans being warehoused in a non-bank subsidiary.
At the same time the Group injected fresh capital and therefore cautiously optimistic that its combined business in Tanzania will break even in the second half of 2013.
Munatsi further explained that the Bank ABC successfully raised US$ 70 million in additional lines of credit during the period.
“Fund raising efforts have continued and further funds are anticipated to be raised before the end of the year.
The additional funding ensures that the good performance experienced so far will be sustained.”
Munatsi further said BancABC Botswana recorded an increase of 127% in attributable profits.
He said the exceptional performance was essentially driven by an increase in net interest income from the consumer lending and loan schemes in Retail banking.
He said BancABC Mozambique’s profitability decreased by 32% from P14 million to P9 million in the current period.
As for BancABC Zambia it had a remarkable six months with profitability growing by 94% from P17 million in the prior year to P33 million in the current period whilst BancABC Zimbabwe’s attributable profits of P48 million was 3% lower than P50 million achieved in the prior year.
“This was mostly due to a P55 million impairment in respect of one customer.
However, net interest income increased by 91% from P95 million in 2012 to P182 million in the current period,” said Munatsi.
The Group proposed an interim dividend of 14 Thebe per share to be paid on 13 September 2013 to shareholders on the company’s register on 30 August 2013.