1. 1 AFRICAN BANKING CORPORATION Results Presentation for the Half Year ended 30 June 2008

2. 2 Agenda Economic Environment Financial Performance Overview Income statement review Balance sheet review Outlook Strategic shift Challenges & outlook Capitalisation Dividend

3. 3 Country GDP (USDm) 2008 GDP Growth rate 2008 ( projected) Banking Deposits (USDm) 2007 Banking Credit (USDm) 2007 Banking Assets (USDm) 2007 Population 2006 est (m) Botswana11,7165.2%5,0762,2386,7511.7 Mozambique10,0467.6%2,4001,2003,10020 Tanzania19,5417.8%4,3412,5135,90338.2 Zambia11,9187.0%2,1941,4973,50011.9 Zimbabwe*1,500-7.0%953222511.7 Sources: - IMF – World economic outlook database: April 07 -Central Banks statistics *2006 ECONOMIC ENVIRONMENT & INDUSTRY ATTRACTIVENESS

4. 4 Economic environment World economic Growth is expected to slow down due to the credit crisis in the US and other Developed Countries. Real GDP growth for all the Southern African Countries, with the exception of Zimbabwe is expected to be higher than 5% in 2008 Commodities boom largely responsible for the Growth Inflation is expected to soar largely due to increase in food and Oil prices Banking assets continue to grow Botswana has the highest GDP per Capita and highest banking assets per Capita Positive interest rates ( Except in Zimbabwe) Relative stability for all currencies ( except Zimbabwe) Zimbabwe in a hyper inflationary environment, June inflation at 11.2 million percent!!

5. 5 ECONOMIC ENVIRONMENT– Exchange Rates ZWD and MZM revalued in 2006 ZWD Old Mutual implied rate To 1 BWP30 Jun-0831 Dec-0730 June-07 United States Dollar0.150.170.16 Mozambique Metical 3.964.304.19 South African Rand1.201.131.14 Tanzania Shilling180191202 Zambian Kwacha494640610 Zimbabwe Dollar 24.9 billion 822,76523 637

6. 6 ECONOMIC ENVIRONMENT– Exchange Rates ZWD Old Mutual implied rate ZWD revalued in August 2008 (10 zeroes removed) To 1 US dollar30 Jun-0831 Dec-0730 June-07 Botswana Pula6.536.026.17 Mozambique Metical 24.0525.6726.03 South African Rand 7.836.817.03 Tanzania Shilling1 1731 1461 246 Zambian Kwacha3 2253 8503 765 Zimbabwe Dollar162.6 billion4,948,961145 906

7. 7 Economic Environment – Inflation & Interest Rates Country Inflation Rate June-2008 Avg. TB Yield Rate* June-2008 Avg or Prime Lending Rates 2008 Avg. Prime Lending Rates 2007 Botswana14.5%12.11%16.2% Mozambique10.4%13.50%20.1% Tanzania9.3%6.70%13.6%14.4% Zambia12.1%11.32%24.3%25.0% Zimbabwe11,2 m%340%**4,200%559.0% * 90 day * 1 year

8. 8 FINANCIAL PERFORMANCE Overview Income Statement Review Balance Sheet Review

9. 9 FINANCIAL PERFORMANCE - Overview Attributable profit up by 50% from BWP 55.3m to BWP 82.6m Net asset value up by 66% and 31% to BWP 410 million from June 2007 and December 2007 respectively Return on equity of 46% compared to 43% achieved in prior year Net interest income for financial operations up by 68% from BWP 53.7 million to BWP 90 million Cost to income ratio down to 46%

10. 10 FINANCIAL PERFORMANCE - Overview Balance sheet growth of 24% and 14% from June 2007 and December 2007 respectively to BWP 3.3 billion Loans and advances up by 49% and 30% from June 2007 and December 2007 respectively to BWP 1.6 billion Deposits increased by 26% and 16% from June 2007 and December 2007 respectively to BWP 2.3 billion Strong results across the board Dividend of 8 Thebe per share

11. 11 FINANCIAL PERFORMANCE: Salient Features BWP’000 June 08 % change June 07Dec 07 Attributable profits82,66050%55,287123,523 Basic EPS (Thebe)57.538%41.795.3 Dividend per Share ( Thebe)8--14 Cost to income ratio46%10%51%47% Net asset value410,27565%247,968313,813 NAV per share2.8552%1.872.37 Total Assets3,338,40524%2,683,5402,930,121

12. 12 Financial Performance - Five year earnings overview

13. 13 FINANCIAL PERFORMANCE: Profit per Subsidiary BWP’000sJune 08% contributionJune 07% contribution ABC Botswana5,96812%7,20242% ABC Mozambique7,34014%4,69727% ABC Tanzania*3,6067%(1,688)-10% ABC Zambia8772%(1,576)-9% ABC Zimbabwe29,81658%8,02546% Microfin Zambia3,8337%6114% Financial institutions 51,440100%17,271100% ABCH & Other32,35337,605** TOTAL83,79354,876 *Adjusted for minority interest & includes TDFL **Prior year adjustments( application of hedge accounting)

14. 14 INCOME STATEMENT REVEIW All Banking operations are profitable All operations except ABC Botswana posted results that are better than what was achieved last year Botswana affected by impairments of BWP 8.3 largely due to one client All key performance indicators for ABCB are very positive Mozambique, Tanzania and Zimbabwe posted very strong results Financial operations outside 42% ( BWP 21.6 million) to this segment While Zambia is profitable its performance is not satisfactory Massive depreciation of the Zimbabwe dollar

15. 15 INCOME STATEMENT REVEIW NII declined by 11% to BWP 107.3m Massive depreciation of the Zimbabwe dollar Huge increase in non interest earning assets in Zimbabwe Cost of additional Tier II capital still a burden, but now reversing as capital is fully leveraged NII covered 67% of costs, down from 81% in 2006 Botswana contributed 27% to NII, up from 17% in prior year Zimbabwe contribution to NII declined by over 100%

16. 16 INCOME STATEMENT REVIEW Mozambique contribution increased from 17% to 22% Zambia and Tanzania registered growth albeit off a low base Non-interest revenue increased by 37% to BWP 231.7m. Operations outside Zimbabwe contribution to non-interest revenue up from 43% in 2006 to 48% Impairments charge of BWP 32.9m up 25% compared to 2006. Botswana and Zambia most affected. Significant write backs in Botswana.

17. 17 INCOME STATEMENT REVIEW – Total income BWP’000s Jun 08 % contributionJun 07 % contribution Dec 07 % contribution ABC Botswana25,75312%22,67016%50,67616% ABC Mozambique24,25111%16,57312%41,87614% ABC Tanzania*20,9059%9,3607%36,43012% ABC Zambia18,9919%12,6359%30,27510% Microfin Zambia20,5369%10,6468%28,6469% ABC Zimbabwe47,80622%13,25510%39,38613% Total Fin OPS158,24272%85,13962227,28974% ABCH and other62,29628%53,27238%82,16526% TOTAL GROUP220,538100%138,411100%309,454100% *Including TDFL

18. 18 INCOME STATEMENT REVIEW – Net interest income BWP’000sJun 08 % contribution Jun 07 % contribution Dec 07 % contribution ABC Botswana18,18824%12,77823%29,48327% ABC Mozambique13,66818%10,98220%23,26922% ABC Tanzania11,61415%6,00011%13,69913% ABC Zambia10,92515%6,54512%16,11615% Microfin Zambia22,62831%13,78725%28,86827% ABC Zimbabwe12,82717%3,5927%15,42914% Total Fin OPS89,850120%53,68498%126,864118% ABCH and other(14,691)(20%)1,1682%(19,576)(18%) TOTAL GROUP75,086100%54,852100107,288100% *Including TDFL

19. 19 INCOME STATEMENT REVIEW – Net interest income BWP’000s Ave. Yield on IEA Ave. CostSpread ABC Botswana11.0%(9.7)%1.3% ABC Mozambique13.2%(7.9)%5.4% ABC Tanzania11.2%(7.5)%3.7% ABC Zambia12.1%(7.1)%4.9% ABC Zimbabwe24.1%(3.6)%20.5% Microfin Zambia71.0%(27.1)%43.9%

20. 20 INCOME STATEMENT REVIEW – Other income BWP’000sJun 08 % contribution Jun 07 % contribution Dec 07 % contribution ABC Botswana15,7529,60221,193 ABC Mozambique10,8538,70118,606 ABC Tanzania*11,1605,16023,625 ABC Zambia10,8519,05814,160 Microfin Zambia34(115)(222) ABC Zimbabwe34,9809,75923,973 Total Fin OPS83,63042,165101,335 ABCH and other74,46141,611130,406 TOTAL GROUP158,09183,776231,741 *Including TDFL

21. 21 Excluding impairments Other income still the main income driver NII income covers 67% of costs Leverage of new capital should change the dynamics in 2008 INCOME STATEMENT REVIEW: Total income composition

22. 22 INCOME STATEMENT REVIEW: Operating expenditure Cost to income ratio down due to a combination of: Zimbabwe dollar depreciation cost containment

23. 23 INCOME STATEMENT REVIEW: Operating expenditure Cost to income ratio at an all time low of 47% Operating expenditure up 10% to BWP 160m Sustained cost containment throughout the group Pula costs in Zimbabwe lower due to the ZWD depreciation Head count at 395 compared to 337 prior year; employee costs accounted for 54% compared with 57% in 2006 Marketing costs set to increase in support of growth targets and retail roll out

24. 24 Total employee costs up from BWP82m to BWP87 m Employee costs 54% of total costs Staff compliment of 395 (2006: 337) Head count set to increase significantly in 2008 Head count per Operation

25. 25 BALANCE SHEET REVIEW Balance sheet grew by 20% from BWP 2.4 billion to BWP 2.9 billion Loans and advances increased by 33% to BWP 1.25 billion in line with group’s aggressive asset growth ambitions Deposits up by 28% to BWP 1.96 billion; Botswana contributed 51% to total deposits NAV up by 15% to BWP 313.8m compared to Dec 2006 Zimbabwe FCTR up BWP 104m in 2007

26. 26 20% balance sheet growth compared to December 06 sustained balance sheet growth since 2003 Compound annual growth rate of 21.01% BALANCE SHEET REVIEW: Total Assets

27. 27  28% growth in Deposits  Botswana continues to lead and breached the BWP 1 billion mark  Very good growth in Tanzania & Zambia, albeit from a low base BALANCE SHEET REVIEW: Geographic split of deposits

28. 28 BALANCE SHEET REVIEW: Loans and advances Net loans increased by 33% from December 2006 All subsidiaries registered growth Overall compound annual growth rate of 28.81%

29. 29 BALANCE SHEET REVIEW: Geographical Split of Loans BWP m

30. 30 BALANCE SHEET REVIEW: Capital BWP’000 Capital* Dec-07 FCTR Dec-07 Capital* Dec-06 FCTR Dec-06 ABC Botswana 99 856-98 559- ABC Mozambique** 104 712(7 789)63 902(7 016) ABC Tanzania** 96 6017 23121 2926 432 ABC Zambia*** 99 0796 00258 277(1 782) ABC Zimbabwe 110 035(405 766)105 767(301 902) *Including Tier II **Including TDFL ***Including Microfin Zimbabwe FCTR up BWP104m since Dec 06

31. 31 BALANCE SHEET REVIEW: Capital Adequacy Dec 07Dec 06 Botswana18%30% Mozambique44%31% Tanzania28%20% Zambia29%27% ABC Zimbabwe26%23% Healthy capital adequacy ratios in all subsidiaries due to injection of capital & prudent capital preservation in Zimbabwe

32. 32 Directors propose a dividend of 14 thebe (ZWD 529,839.00) per share Dividend cover of 6.9 times DIVIDEND

33. 33 CAPITALISATION IFC subscription of 13.9 million shares, bringing shareholding to 10.7% in January 2008 IFC Convertible loan still to be drawn down CVCI approved investment of USD 25 million on terms broadly similar to IFC convertible loan Directors evaluating hybrid offer: rights issue and private placement Group well positioned for sustained growth

34. 34 OUTLOOK: STRATEGIC SHIFT OVER THE NEXT 12 MONTHS Group embarking on an ambitious growth path driven by: retail banking roll out branch network expansion introduction of e-banking mortgage finance Consumer banking (debit cards, credit cards, auto loans)

35. 35 Acquisition of profitable assets Deposit mobilization remains a key focus area for the group, particularly in Zambia Changing the business model –People, processes, systems and culture Retail banking structure in place from 3rd quarter of 2008 Branch profitability: 12 months to 24 months OUTLOOK & CHALLENGES

36. 36 Thank you