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

| Source: EQS Group AG
DGAP-News: ADC African Development Corporation AG / Key word(s): Final
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


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:


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.

Investor Relations
T +49 69 719 12 80 119

End of Corporate News


26.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                               
Company:     ADC African Development Corporation AG                
             Grüneburgweg 18                                       
             60322 Frankfurt/Main                                  
Phone:       +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                                                
Listed:      Freiverkehr in Berlin, Düsseldorf; Frankfurt in Open  
             Market (Entry Standard)                               
End of News    DGAP News-Service  
259582 26.03.2014