DGAP-News: ADC African Development Corporation AG / Key word(s): Final
Results
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.
Contact:
Investor Relations
investor-relations@african-development.com
T +49 69 719 12 80 119
End of Corporate News
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28.03.2014 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
Germany
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
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260344 28.03.2014
DGAP-News: ADC achieves impressive turnaround in 2013 ++ Results significantly exceed latest profit forecast ++ Efficiency notably increased with room for further improvement
| Source: EQS Group AG