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Economic outlook bright — BancABC

ABC Holdings Ltd sees quality earnings ahead and hopes business growth will be buoyed by a strong economic outlook in the sub-Saharan region, CEO Douglas Munatsi says.

Munatsi says the overall economic outlook is looking bright for the region and will create a “solid foundation” for future business growth.
He said: “The overall economic outlook for the sub-Saharan Africa market is increasingly positive, particularly on the back of higher commodity prices. This, together with the group’s strong balance sheet and the improved quality of earnings, creates a solid foundation for future business growth.”
Munatsi says all group subsidiaries are now profitable. Management now intends to focus on expanding retail banking operations while maintaining the wholesale banking division as well.
He believes the group’s full year results will show “improvements” over last year.
Management intends to add 14 branches in line with its plans to grow its retail business.
Bank ABC Botswana posted an attributable profit of BWP11 million, up 88% compared to the previous interim period, buoyed by improved net interest margins and significant balance sheet growth.
Total operating income for BancABC Mozambique stood at BWP49 million. After tax profit fell to BWP13 million owing to a higher tax rate.
BancABC Tanzania achieved a profit of BWP6 million, up 183% in the comparative period last year.
BancABC Zambia recorded a BWP7,5 million profit, compared to a loss of BWP13 million in the first half of last year — largely helped by a turnaround strategy the group implemented.
BancABC Zimbabwe also recorded a profit of BWP7 million, up 246% from 2009’s BWP2 million.
Management says business in Zimbabwe continues to increase.  The group’s Zimbabwe operation’s total income increased BWP59 million, up 195% to June 2010.
The group sold its holdings in PG Zimbabwe and part of its shares in Star Africa Corporation this year.


Chris Muronzi

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