DGAP-News: ADC African Development Corporation AG

DGAP-News: ADC's subsidiary, BancABC reports 2013 results ++ Total income grew by 26% and pre-tax profits by 20% ++ Cost-to-income ratio decreased by 5 percentage points

DGAP-News: ADC African Development Corporation AG / Schlagwort(e): Jahresergebnis ADC's subsidiary, BancABC reports 2013 results ++ Total income grew by 26% and pre-tax profits by 20% ++ Cost-to-income ratio decreased by 5 percentage points

26.03.2014 / 08:21

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ADC African Development Corporation AG (ADC); ISIN DE000A1E8NW9, is pleased to announce that its core banking operation, BancABC, has released its 2013 financial results, reporting continued growth in both income and profits.

BancABC's pre-tax profit of BWP254 million is 20% higher than the BWP212 million profit recorded in 2012. The subgroup's balance sheet increased by 18% from BWP13.4 billion to BWP15.8 billion. Loans and advances were up 15% to BWP10.6 billion, while deposits increased 14% to BWP12.2 billion.

The results were driven by a strong growth in retail lending especially in Botswana, Zambia and Zimbabwe, where a critical mass was achieved; net interest income of BWP1.01 billion was 50% ahead of 2012 results with the net interest margin having increased to 7.7% from 6.7% in 2012. Business volumes have generally increased with 12 new branches opened in the 2013 financial year.

BancABC Botswana, BancABC Zimbabwe and BancABC Zambia performed exceptionally well with attributable profits of 49%, 38% and 16% respectively. BancABC Mozambique's performance in the current period was hampered by one large loan impairment; however the subsidiary still managed a BWP9 million net profit (3% attributable profit). BancABC Tanzania continues to be a challenge for BancABC (-6% attributable profit) with high impairment charges and difficulties with the Tanzanian legal system. Overall, BancABC net impairments increased by 137% from 2012, with significant impairments recorded in Mozambique, Tanzania and Zimbabwe. As a consequence, the subgroup's credit loss ratio at 3.3% was 1.5 percentage points higher than 1.8% recorded in 2012 and significantly up on the subgroup's target of 1%.

Profits attributable to ordinary shareholders rose 49% to BWP198 million from BWP133 million in 2012. As a result of the increasing average equity due to the conversion of an IFC loan into equity, average return on equity in 2013 remained unchanged at 15% compared to the previous year.

The BancABC results publication is available for download via the following link on the ADC website:

http://www.african-development.com/en/operations/banking-operations/bancab c/

Dirk Harbecke, CEO of ADC commented: "We are happy that BancABC continues its path of significant and stable growth, with the aim to become a top performing bank in each of its five countries in sub-Saharan Africa. Although management deliberately slowed the lending growth in 2013 due to liquidity constraints in some markets, all entities had significant growth in net interest income largely due to the growth in balance sheet size over the last 18-months. In 2014, BancABC management will focus on working with each subsidiary to tighten credit systems to lower the credit loss ratio and further improve lending processes and to address liquidity challenges via various fundraising and deposit mobilization efforts. Further to this, management has targeted operating efficiency in order to further improve its cost-to-income ratio. The balance sheet is sound and positions the subgroup well for further growth in 2014. Based on profitable BancABC results, the ADC Group results will be announced in the coming days."

About ADC ADC African Development Corporation AG (ADC) (ISIN: DE000A1E8NW9; Bloomberg: AZC.GR, www.african-development.com), is a German listed, emerging pan-African banking group. ADC has a strong footprint in Southern Africa via BancABC, a regional commercial banking platform operating in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe as well as exposure to West Africa via Union Bank of Nigeria. In addition to its banking operations, ADC has a private equity portfolio active in growth markets across sub-Saharan Africa. ADC follows an active management approach with a team of experts that comprise operational banking management, investment banking and merchant banking expertise.

Kontakt: Investor Relations investor-relations@african-development.com T +49 69 719 12 80 119

Ende der Corporate News

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26.03.2014 Veröffentlichung einer Corporate News/Finanznachricht, übermittelt durch die DGAP - ein Unternehmen der EQS Group AG. Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.

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Sprache: Deutsch Unternehmen: ADC African Development Corporation AG Grüneburgweg 18 60322 Frankfurt/Main Deutschland Telefon: +49 69 719 12 80 119 Fax: +49 69 719 12 80 115 E-Mail: info@african-development.com Internet: www.african-development.com ISIN: DE000A1E8NW9 WKN: A1E8NW Börsen: Freiverkehr in Berlin, Düsseldorf; Frankfurt in Open Market (Entry Standard) Ende der Mitteilung DGAP News-Service --------------------------------------------------------------------- 259582 26.03.2014