BancABC Interim Financial Results August 2010

HIGHLIGHTS

Financial Highlights › Total income up 29% to BWP251 mill (H109: BWP194 mill) › Net operating income up 80% to BWP45 mill (H109: BWP25 mill) › Attributable profit of BWP28 mill (H109: BWP36 mill) – Share of associate loss – Tax charge in H110 vs. tax credit in H109 › Impairments down 59% to BWP17 mill (H109: BWP41 mill) › Cost : income down from 82% at year end to 77% (H109: 72%) › Deposits up 41% and 23% compared to H109 and H209 › Total assets increased to BWP5.1 billion, 25% and 16% up from H109 and H209 › Average return on equity positive at 14% (H109: 16%) 3

Operational Highlights › Six Retail Banking branches opened in Dar es Salaam, Gaborone, Bulawayo, Harare and Chimoio › Looking at opening an additional eight new branches before year end › Zimbabwe head count right sized › BancABC Zambia now profitable and Microfin merger yielding synergistic benefits › Improved credit risk management reduces impairments 4

ECONOMIC OVERVIEW

Economic Overview › IMF projects global GDP growth to reach 4.2% in 2010 (09: -0.8%): – Growth driven primarily by Asia – Western economies remain sluggish › Economic and business environment in SADC region has improved, growth mainly driven by recovery in commodity prices › Down-side risks to global economic recovery still exist due to: – Sovereign debt crisis in Europe and Middle-East – Austerity measures reducing demand in developed economies – Asset price bubbles in some emerging markets 6

Economic Growth Trends 7 Source: IMF

2010 Monthly Inflation Trends 8 › Relatively stable inflation other than in Mozambique where rate worsened rapidly from 5% at start of the year to 14.5% by mid-year. Source: Central Banks, Ministries of Finance and Central Statistics Offices

BancABC PRESENTATION 10 MARCH 2010 Interest Rate Profiles 9 Botswana Source: Respective Central Banks Mozambique TanzaniaZambia

Exchange Rate Developments 10 › Local currencies in our markets have generally depreciated against the USD and BWP during the period › Mozambican Meticais had the worst depreciation of 25% against the USD and 19% against the BWP › This had some adverse impact on reported results for the subsidiary › Against the USD, the Zambian Kwacha depreciated 11%, Tanzanian Shilling depreciated by 5% and the Botswana Pula by 6% › Against the BWP, the Tanzanian Shilling marginally appreciated by 1% whilst the Zambian Kwacha depreciated by 5%

Banking Sector Deposits and Loans 11 Banking Sector Total Deposits (US$m) Banking Sector Loans to the Private Sector (US$m) Source: Respective Central Banks › The markets continue to be attractive and have generally been growing in the recent past › Opportunities exist to enter new market segments in each country › The Tanzania and Botswana markets continued being the largest › Zimbabwe has rapidly grown in the period

FINANCIAL REVIEW

Income Statement 13 BWP’000sH1-2010% ∆H1-2009FY-2009 Net interest income146,81587%78,684178,394 Impairment of loans & advances-16,99659%-40,969-51,218 Net interest income after impairments129,819244%37, Non interest income121,622-22%156, ,017 Total income251,44129%194,257392,193 Operating expenditure-205,967-22%-169, ,694 Net income from operations45,47482%25,04626,499 Share of (loss)/profits of associates-11, %-91316,164 Profit before tax33,99541%24,13342,663 Tax-5, %12,75715,768 Profit for the year28,726-22%36,89058,431 Attributable to: - Ordinary shareholders28,076-23%36,49458,117 - Minorities65064% EPS (thebe) % › Performance primarily driven by growth in net interest income and reduction in impairments › Opex increased mainly because of Zimbabwe post dollarisation › Zimbabwe costs up 138% and accounts for 17% of the 22% YoY increase in expenses

Income Statement (USD) 14 USD’ 000’sH1-2010% ∆H1-2009FY-2009 Net interest income21,24198%10,70325,176 Impairment of loans & advances(2,459)56%(5,573)(7,228) Net interest income after impairments18,782266%5,13017,948 Non interest income17,597-17%21,29437,402 Total income36,37938%26,42455,350 Operating expenditure(29,800)-29%(23,018)(51,610) Net income from operations6,57993%3,4063,740 Share of (loss)/profits of associates(1,661)-1240%(124)2,281 Profit before tax4,91850%3,2826,021 Tax(762)-144%1,7352,225 Profit for the year4,156-17%5,0178,246 Attributable to: - Ordinary shareholders4,062-18%4,9648,202 - Minorities9477%5344 EPS (cents)2.8-20% › Performance primarily driven by growth in net interest income and reduction in impairments › Opex increased mainly because of Zimbabwe post dollarisation › Zimbabwe costs up 138% and accounts for 17% of the 22% YoY increase in expenses

Attributable Profit Trends › Lower profit after tax in current year not reflective of real performance – Disposal of profitable investments reduces income from associates – Prior year tax credit 15

Income Statement – Segmental Analysis 16 Attributable Profit BWP 000’s2010% Cont2009% Cont% change BancABC Botswana11,14740%5,93916%88% BancABC Mozambique13,35047%17,47548%(24%) BancABC Tanzania5,89321%1,6785%251% BancABC Zambia7,54727%(12,669)-35%160% BancABC Zimbabwe7,37426%2,1336%246% Banking operations45,311161%14,55640%211% Head office(17,235)-61%21,93860%(179%) TOTAL 28,076100%36,494100%(23%)

Income Statement – Segmental Analysis (USD) 17 Attributable Profit USD 000’s2010% Cont2009% Cont% change BancABC Botswana1,61340%81616%98% BancABC Mozambique1,93247%2,40248%-20% BancABC Tanzania85321%2315%270 BancABC Zambia1,09227%(1,742)-35%163% BancABC Zimbabwe1,06726%2936%264% Banking operations6,556161%2,00140%228% Head office(2,494)-61%3,01660%-183% TOTAL4,062100%5,017100%-19%

Income Statement – Net Interest Income › Positive trend in net interest income driven by increased margins, better liquidity and increased balance sheet size › Recovering economic environment and improved credit risk management reduced impairments › Zimbabwe contribution to net interest income growing (12% vs 3% in H1:09) 18

Income Statement – Segmental Analysis 19 Net Interest Income % change BancABC Botswana23,07616,87137% BancABC Mozambique15,57521,475(27%) BancABC Tanzania22,41614,18958% BancABC Zambia32,51232,3770.4% BancABC Zimbabwe18,0152,630585% Banking operations111,59487,54227% Head office35,221-8,858398% TOTAL146,81578,68487%

Income Statement – Impairments & NPLs › Trend of impairments and credit loss ratio is declining › Net NPLs covered by collateral › Overall NPLs have now stabilised 20

Income Statement – 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 › Trading, fee and commission income increasing whilst gains on equity investments are declining 21

Income Statement – Cost to Income Ratio 22 › Cost to income ratio declining with retail costs stabilising and other expenses stabilising in Botswana, Mozambique and Tanzania and declining in Zambia › Zimbabwe costs up post dollarisation - now normalising; hyper-inflation in the past › Head office no longer charging management fees from 2009 › Retail costs were 13% or BWP27 mill of total expenses (09:10% or BWP18 mill) › Going forward, Retail Banking to contribute positively, decreasing C:I ratio › Target C:I ratio remains 50%

Income Statement – Staff Costs 23 › Total head count in 2010 of 612 vs 561 in 2009 › Growth in staff numbers in last 12 months mainly attributable to retail expansion › BancABC Zambia staff numbers declined from 147 in June 2009 to 125 in June 2010 following Microfin merger

Retail Banking Capex 24 › Group has incurred bulk of costs on retail roll-out › All IT systems expected to be in place by year end › Incremental capital expenditure to be driven by number of branches opened in subsequent periods USD ‘000BWP ‘000 Branch capital expenditure5,76840,780 Systems roll-out4,44931,454 Data centre centralisation3,47824,589 13,69596,823

Balance Sheet 25 BWP '000sJun-2010Jun-2009 % changeDec-2009 Cash and short term funds717,669615,47117% 881,884 Financial assets held for trading1,423,014748,81990% 880,740 Financial assets designated at fair value4,13372,033-94% 17,905 Loans and advances2,341,7442,163,4878% 1,995,325 Property and equipment302,612185,24563% 278,975 Other assets332,351298,02612%362,916 TOTAL ASSETS5,121,5234,083,08125% 4,417,745 Deposits4,132,3822,924,73341% 3,355,118 Borrowed funds471,634553,789-15% 543,822 Other liabilities81,10182,457-2%103,026 Total liabilities4,685,1173,560,97932% 4,001,966 Equity attributable to ordinary shareholders420,189505,281-17% 399,069 Minority interest16,21716,821-4%16,710 Total equity436,406522,102-16% 415,779 TOTAL EQUITY AND LIABILITIES5,121,5234,083,08125% 4,417,745

Balance Sheet (USD) 26 USD '000sJun-2010Jun-2009 % changeDec-2009 Cash and short term funds101,51491,02812%132,194 Financial assets held for trading201,285110,75082%132,023 Financial assets designated at fair value58510,654-95%2,684 Loans and advances331,240319,9804%299,099 Property and equipment42,80527,39856%41,818 Other assets47,01244,0797%54,401 TOTAL ASSETS724,441603,88920%662,219 Deposits584,525432,56835%502,932 Borrowed funds66,71381,905-19%81,519 Other liabilities11,47312,197-6%15,443 Total liabilities662,711526,67026%599,894 Equity attributable to ordinary shareholders59,43674,731-20%59,820 Minority interest2,2942,488-8%2,505 Total equity61,73077,219-20%62,325 TOTAL EQUITY AND LIABILITIES724,441603,88920%662,219

Balance Sheet – Overview 27 › Deposits up 41% and 23% relative to H109 and H209 respectively › Growth across all the markets › BancABC Zimbabwe had highest rate of growth off a low base › Loans and advances up 8% and 17% relative to H109 and H209 respectively › Growth significantly from Zimbabwe as economy stabilised › Cautious approach to lending was exercised in other markets › Lending in Mozambique constrained by interest rate movements during the period › Total assets of BWP5.1 billion, an increase of 25% and 16% relative to H109 and H209 respectively,

Balance Sheet – Loans and Advances 28 › BancABC Botswana continued being largest contributor to Group’s loan book › BancABC Zimbabwe’s contribution grew rapidly on back of economic stability › Loan book is stable

Balance Sheet – Deposits 29 › Growth in deposits across footprint › Additional funds generated invested mostly in short- term financial instruments › BancABC Botswana still the largest contributor › BancABC Zimbabwe’s contribution to deposits growing

Balance Sheet – Capital Adequacy 30 Total capital (BWP m)Capital Adequacy Ratio SubsidiaryJun 10Jun 09Min BancABC Botswana %22%17% BancABC Mozambique %18%22% BancABC Tanzania %14%12% BancABC Zambia835910%30%14% BancABC Zimbabwe %14%31% › All entities are adequately capitalised › Zambia re-capitalised by injection of US $6 mill in tier II capital and conversion of US $5 mill of existing tier II into tier I capital

OPERATIONAL OVERVIEW

Botswana › Economy stabilising and is now growing following recovery in diamond prices › PAT improved 84% to BWP11 mill › Positive performance driven by increased net interest margins, on a larger balance sheet coupled with reduction in impairment charge › Non-interest income declined by 22% to BWP17 mill following reduction in forex trading volumes and margins › Operating expenses were flat on prior year 32

Mozambique › Economy experienced high volatility in interest and exchange rates during the period › PAT declined by 24% to BWP13 mill on account of increased tax rate from 16% to 32% following expiry of fiscal benefits › Interest rate volatility negatively affected interest margins leading to reduction in net interest income by 27% to BWP16 mill › However, forex trading income increased on the back of increased volume of transactions › Operating expenses increased by 7% to BWP29 mill in line with retail expansion 33

Tanzania › High exchange rate volatility experienced towards period end, but economy is stable › BancABC Tanzania’s liquidity position continued to improve leading to higher net interest income › Non-interest income also increased 59% to BWP19 mill from increased forex transactions and bond trading › Impairment charge increased 77% to BWP10 mill following classification of a few but large accounts › Expenses increased 24% to BWP23 mill mostly from retail expansion related costs › PAT none-the-less increased 165% to BWP7 mill 34

Zambia › BancABC Zambia has now stabilised and is profitable › Subsidiary was re-capitalised during the period › Recorded a PAT of BWP7.5 mill compared to a loss of BWP13 mill in prior year › Impairments declined to BWP3 mill from BWP22 mill in the prior period. › Operating expenses declined by BWP4 mill as a result of synergies arising out of the merger of the bank and microfinance unit › Subsidiary is now on strong footing to grow business going forward 35

Zimbabwe › Economy growing following end of hyper-inflation in Feb 2009 › Subsidiary has been able to grow its income by 195% to BWP59 mill › Both loans and deposits increased markedly › However, expenses increased 138% to BWP49 mill largely due to an increase in staff costs › PAT increased 246% to BWP7 mill 36

Retail Banking Update › Six new branches opened up to half-year – One each in Botswana, Mozambique and Tanzania – Three in Zimbabwe › Expecting to open a further 8 branches by year-end › All IT systems to be fully operational by year-end › Retail has started contributing to the Group’s income stream 37

OUTLOOK

Outlook 39 › Economies generally stable in operating countries › Both Retail and Wholesale units expected to do well in the second half › Head Office costs continue to be a challenge although stabilising › Impairments now under control which bodes well for the Group going forward › Would like to start paying dividends in the near term

APPENDIX

BancABC PRESENTATION 10 MARCH 2010 Exchange Rate Developments 41 Movement in Exchange Rates vs. the USD (End Period) Movement in Exchange Rates vs. Botswana Pula (End Period) BotsMozTanzZamRSA BWP/US$MZN/US$TZS/US$ZMK/US$ZAR/US$ Dec ,1473, Dec ,2804, Dec ,3264, Mar ,3454, Apr ,3584, May ,3905, Jun ,3945, MozTanzZamRSA BWP/MZNBWP/TZSBWP/ZMKZAR/BWP Dec Dec Dec Mar Apr May Jun Source: BancABC

BancABC PRESENTATION 10 MARCH 2010 Banking Sector Deposits and Loans 42 Banking Sector Total Deposits (US$m) Banking Sector Loans to the Private Sector (US$m) BotsMozTanzZamZim Dec-075,2142,4604,2112, Dec-085,0462,8354,7022, Mar-094,4292,7544,7392, Jun-095,4172,9314,9022, Sep-095,6013,0665,3002, Dec-095,5743,4185,4762,6801,381 Jan-105,4623,4855,5822,6631,406 Feb-105,3363,4555,6082,6901,546 Mar-105,4613,4695,6082,7831,689 Apr-105,6783,0045,7582,8731,752 May-105,4643,0245,5372,7451,832 BotsMozTanzZamZim Dec-072,2361,3062,5941,35199 Dec-082,2811,7953,5591, Mar-092,2831,8563,4981, Jun-092,6361,9873,5851, Sep-092,8612,2293,6751, Dec-092,9632,5973,7631, Jan-102,9372,6393,7321, Feb-102,9472,6273,7591, Mar-103,0762,6823,8101, Apr-103,1152,2993,9291, May-102,9082,3633,8321,5241,012 Source: Respective Central Banks

BancABC PRESENTATION 10 MARCH 2010 Income Statement – Net Interest Margins 43

BancABC PRESENTATION 10 MARCH 2010 Income Statement – Opex by Operation 44