adminSithandazile Moyo Business Reporter
Regional banking group — ABC Holdings’ attributable profit for the year ended December 31 2013 spiked 49 percent to BWP 198 million from BWP 133 million the prior underpinned by the strong performance of its Zimbabwe, Botswana and Zambia BancABC units. During the period under review the group’s pre-tax profit rose 20 percent to BWP 254 million.
Due to increased number of shares in issue, the group realised a 10 percent increase in basic earnings per share from 72,1 thebe in 2012 to 79,6 thebe.
Total income was up by 26 percent from BWP 1,087 million the prior year to BWP 1,374 million for the year under review.
The results show that deposits increased by 14 percent from 10,7 billion to 12,2 billion while loans and advances rose by 15 percent to 10,6 billion from 9,1 billion recorded in 2012.
Net operating income was up by 18 percent from BWP 218 million to BWP 258 million and operating expenses increased by 29 percent from BWP 869 million to BWP 1,116 million due to continued expansion into retail and SME banking segment.
The balance sheet increased to BWP 15,8 billion from BWP 13,4 billion as at December 31, 2012. With the exception of BancABC Tanzania, all the operations recorded growth in loans and advances.
A final dividend of 4,5 thebe (about 0,5 US cents) for the year ended December 31, 2013 has been declared.
Group Net Interest Income of BWP 1,010 million was 50 percent higher than prior year while non-interest income was up 25 percent.
ABCH group chief executive officer Douglas Munatsi said the group’s performance in 2013 reflected an improved profitability and strong balance sheet.
“I am pleased to announce the group’s strong performance in 2013 reflected in improved profitability, stronger balance sheet and better efficiency. We are particularly pleased by the solid performance by our subsidiaries in Botswana, Zambia and Zimbabwe,” said Munatsi.
He said that as a group they were expecting growth to continue across most of their operations.
“We expect growth to continue across most of our operations, but at a moderate pace than that previously recorded as the retail banking operations have now reached critical mass in Botswana, Zambia and Zimbabwe,” he said.
Munatsi said liquidity remains a challenge, which the group was continuously addressing through improved deposit mobilisation and accessing debt capital markets and lines of credit.
Despite profitability being adversely affected by high impairments, which increased to BWP 92 million compared to BWP 41 million in 2012 as a direct result of the liquidity situation in the country, BancABC Zimbabwe recorded a 14 percent increase on attributable profit to BWP 118 million from BWP 103 million.
BancABC Botswana’s net profit after tax at BWP 153 million was 62 percent higher an BancABC Zambia posted 39 percent in attributable profit from BWP 36 million to of BWP 50 million due to an increase of business volumes in consumer loans as well as non–funded transactions.
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