DGAP-News: ADC African Development Corporation AG

DGAP-News: ADC achieves impressive turnaround in 2013 ++ Results significantly exceed latest profit forecast ++ Efficiency notably increased with room for further improvement

DGAP-News: ADC African Development Corporation AG / Schlagwort(e): Jahresergebnis ADC achieves impressive turnaround in 2013 ++ Results significantly exceed latest profit forecast ++ Efficiency notably increased with room for further improvement

28.03.2014 / 14:52

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ADC African Development Corporation AG (ADC); ISIN DE000A1E8NW9, announces a consolidated net profit for the financial year 2013 of EUR 12.5 million, after a net loss in 2012, mainly due to increasing performance of BancABC, the sale of ADC's shareholding in BANGE and the positive development of ADC's indirect stake in the Union Bank of Nigeria. ADC therefore significantly exceeded its latest profit forecast of EUR 10 million by 25%, delivering earnings per share (EPS) of EUR 0.68, compared to a negative re-stated EPS of EUR 2.61 in 2012.

The 2013 results presentation will be made available on ADC's website: www.african-development.com/en/investor-relations/investor-information/fin ancial-reports/.

ADC can look back on a successful year following the company's strategic focus on the African banking sector and the resulting reorganization of the company's structure. ADC registered a profit before tax of EUR 19.3 million and a 32% decrease in its cost-to-income ratio, confirming the advantages of ADC's new cost-effective structure. Furthermore, ADC attracted prominent Board members and additional investors who believe in the Company's pan-African banking vision and have the relevant experience and capitalization to improve liquidity, operational performance and risk management practices.

Net interest income after provision for credit losses of EUR 57.8 million was realized in 2013, resulting in a net interest margin of 10.3%. Net gains on financial instruments designated at fair value came in at EUR 3.2 million in 2013 vs. a loss of EUR 12.7 million in 2012 primarily due to the successful sale of BANGE. Total operating income came in at EUR 134.6 million in 2013 compared to EUR 45.6 million in 2012.

Operating expenses were EUR 115.4 million in 2013 compared to EUR 57.2 million in 2012 and reflect mainly the full year consolidation of BancABC subgroup versus consolidation of only 5 months in 2012.

ADC achieved a return on average equity of 9.6%, a return on average assets of 0.9% and a cost-to-income ratio of 72.3% compared to the 2012 ratios of -16.6%, -2.5% and 106.5% respectively.

Total assets at year-end reached EUR 1.4 billion, stable in comparison to 2012 figures. This includes a 10% increase in cash and short term funds, but a 1% decrease in loans and advances and a 3% decrease in customer deposits, calculated in EURO, due to exchange rate differences (loans and advances and deposits increased 15% and 14% respectively in local currency).

Equity attributable to ordinary shareholders increased by 14% from EUR 67.7 million (re-stated) in 2012 to EUR 76.9 million at year-end 2013.

Dirk Harbecke, CEO of ADC, commented: "ADC has successfully laid the foundation to create a profitable pan-African banking structure in sub-Saharan Africa that fuses the advantages of a local operating structure with international capital and networks. The 2013 financial year is a stepping-stone towards a profitable future with a solid portfolio of investments and a team of dedicated employees who are responsible for the success of ADC's growth and the creation of ADC's pan-African banking vision. We expect the ADC Group to significantly increase its net profit in 2014, with the cost-to-income and ROE ratios improving substantially from those achieved in the 2013 period towards 2015 targets of a ROE of up to 25% and an average cost-to-income ratio of 50-55%."

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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28.03.2014 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 --------------------------------------------------------------------- 260344 28.03.2014