DGAP-News: ADC African Development Corporation GmbH & Co. KGaA / Key
word(s): Miscellaneous
ADC African Development Corporation GmbH & Co. KGaA: ADC's newest
investment, Union Bank Nigeria, reports a EUR 30 million net profit in
Q1 2012 ++ Douglas Munatsi installed as ADC board representative
06.08.2012 / 15:06
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ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN
DE000A1E8NW9, a fast growing pan-African banking group focused on the
frontier markets of sub-Saharan Africa, is pleased to announce that its
newest investment, Union Bank of Nigeria plc. (UBN), recorded EUR 30.1
million (NGN 6.3 billion) net profit for the first quarter 2012 on bank
level, more than doubling its prior year first quarter results of EUR 12.7
million (NGN 2.8 billion) net profit.
UBN, one of Nigeria's longest established commercial banks with strong
heritage and a pedigree brand, has recently been recapitalized by an
international investor consortium, driving the turn-around of the bank.
Pending approval by the Central Bank of Nigeria (CBN), a representative of
ADC has been installed on to the Board of UBN. ADC nominated Douglas
Munatsi, the Chief Executive Officer of ADC's subsidiary BancABC, to
represent ADC in the Board of UBN.
In the first quarter, UBN recorded an increase in its stable and low-cost
depositor base, which registered 8% growth from EUR 1.9 billion (NGN 399.8
billion) at the end of 2011 to EUR 2.1 billion (NGN 432.2 billion) at the
end of the first quarter 2012.
Review and disposal of significant parts of the loan book during FY2011
have led to a decrease in loans from EUR 824.6 million (NGN 180.5 billion)
in Q1 2011 to EUR 651.5 million (NGN 136.8 billion) in Q1 2012 by 39%.
Despite the decrease in loan book, net interest income only came down by
approx. 25% from EUR 84.1 million (NGN 18.4 billion) in Q1 2011 to EUR 65.4
million (NGN 13.7 billion) in Q1 2012.
Dirk Harbecke, ADC's CEO commented: 'The first quarter numbers clearly show
the potential of the bank post recapitalization. The loan to deposit ratio
of 32% combined with an average net interest margin of around 11% and a
capital adequacy ratio of almost 24% in Q1 2012 demonstrates the bank's
potential. With the recapitalization and ongoing turnaround in governance,
risk management and operational efficiency, the bank will be optimally
positioned to benefit from the growing middle class and urbanization trend
in Nigeria, one of the largest economies and fastest growing countries in
Africa. Building on its strong capitalization, high liquidity and low
NPL-ratio, we are confident that the bank will subsequently be able to
build a profitable loan book and deploy its capital at an attractive
risk-return profile. ADC will accompany this process actively with its
board representative Douglas Munatsi, which will also contribute to strong
integration of the portfolio.'
About ADC
ADC African Development Corporation (ISIN: DE000A1E8NW9; Bloomberg: AZC.GR,
www.african-development.com), a member of the Angermayer, Brumm & Lange
Group (www.abl-group.de), was established in September 2007 and aims to
become one of the leading banking groups in sub-Saharan Africa, active in
corporate and retail banking and proprietary investments. The company's
success is primarily due to its local management team, which follows
international best practice principles to further develop its operational
companies and implements conventional international processes to increase
their profitability. As the second international emerging market investor
in the world, ADC was integrated into the insurance solution offered by the
Multilateral Investment Guarantee Agency ('MIGA'), a member of the World
Bank Group, primarily due to its strong operational approach and adherence
to the highest ethical standards. This insurance offers protection against
a variety of political risks, in particular the risk of radical political
change.
Contact:
Investor Relations
investor-relations@african-development.com
T +49 69 719 12 80 119
End of Corporate News
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Language: English
Company: ADC African Development Corporation GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt/Main
Germany
Phone: +49 69 719 12 80 00
Fax: +49 69 719 12 80 011
E-mail: info@african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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180509 06.08.2012
DGAP-News: ADC African Development Corporation GmbH & Co. KGaA: ADC's newest investment, Union Bank Nigeria, reports a EUR 30 million net profit in Q1 2012 ++ Douglas Munatsi installed as ADC board representative
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