1
2017
COMPANY PROFILE
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Contents
1. Cornerstones
2. Key Stakeholders
3. Business
4. Financial Data
3
Contents
1. Cornerstones
2. Key Stakeholders
3. Business
4. Financial Data
4
Contents
1. Cornerstones
2. Key Stakeholders
3. Business
4. Financial Data
5
Cornerstones
Registered Commercial bank
Opened October, 2011
7 branches: Cairo, Chilenje, Matero,
Kalingalinga,Chelston Garden and
Kitwe
Target group: Micro, small and
medium-sized enterprises (MSME)
Agro and low-income populations
Service offering: Fast and simple
loan application process, no prior
banking relationship required for
access to our loans, full cheque and
transfer services, free accounts, no
hidden costs, attractive interest rates
Net Loan Portfolio: ~128 mn ZMW
AB Bank Zambia is one of the rare banks that offers a full range of MSME
credit, deposit and banking products
Total Assets: ~208.7 mn ZMW
Total Deposits: ~61.9 mn ZMW
Mission:
To improve the access to a
broad range of appropriate
financial services for the
Majority of Zambian
businesses and their
owners in a sustainable and
efficient manner.
Total Accounts: ~96,343
As o
f Jan 2
017
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Shareholders and Network
An International Network Of 10 Sister Banks, Which Tend To Reach
Profitability Within 4 Years.
Our current share holders are: AccessHolding Microfinance, KfW
and the International Finance Corporation
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Board of Directors
Mathias Hoffmann Kf W nominee Holds A Masters Of Science In International Economics And Politics And AMasters Degree In International Studies And Diplomacy.
Christoph Diehl Chairman Economist; Member Of The Senior Management Of Access holding AndRegional Manager For Africa At LFS.
Armando M.Sirolla
Executive Director Extensive Microfinance Experience In Africa And Asia. Previously CEO OfPremière Agence De Microfinance AKAM) In Madagascar; Currently CEO,AB Bank Zambia.
Robin Durairajah Independent Lawyer At Chibesakunda & Co., Assisted With Creation Of Company; LocalDirector (Required By Regulation)
Chitundu NormanMwango
Access Holding Nominee
Chartered Accountant; Former Accountant General For Republic Of Zambia;Local Director (Required By Regulation) .
Martin Rohler Access Holding Nominee
Mr. Rohler Holds An M.Sc. In Agricultural Economics, And Speaks German,English, Portuguese And Spanish.
Paul Nkhoma Independent Insurance Specialist; CEO Of Hollard Insurance Zambia Limited; LocalDirector (Required By Regulation).
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Executive Management
Armando
Sirolla
(CEO)
• Joined LFS in 2013.
• Has vast experience managing micro finance projects in various countries in Sub
Saharan Africa, Madagascar and Afghanistan.
• Before this, led projects for the European Union with private sector companies in
Belgium, Portugal, and the UK.
• Holds a Master's of Science in International Economics and Politics and a Master's
degree in International Studies and Diplomacy
Nurullo
Mashrabov
(CCO)
• Nurullo Mashrabov is a senior banking adviser with more than 10 years’experience in MSME finance.
• He has been working for AB Bank Zambia since 2013 and prior to that, heworked in various Access Holding Network Banks in Tanzania, Central Asia andEastern Europe.
• Mr. Mashrabov holds a degree in Business Administration, and speaks Russian,English and Turkish.
Chilufya
Mwamba
Siansangu
(DOO)
• Has been with the bank since inception in 2011 where she started as a Client Advisor
and has progressed through various positions in the Retail department of the bank to the
top position.
• She previously worked for Building Society before joining AB Bank.
• Has an Advanced Diploma in Business and Accountancy studies and a BA in Business
Studies and Management with Leeds Metropolitan University UK.
Maximo
Mulenga
(CFO)
• Maximo has experience in public practice having worked for KPMG and Renco
Associates. Before joining the banking sector, he worked for Zambia Breweries PLC
in both Finance and internal Audit.
• Maximo is a chartered accountant and fellow of both ACCA and ZICA. He also holds
a Masters in Business Administration from Herriot-Watt University and a Diploma in
Accountancy From the Copperbelt University.
Organization and Capacity
* HR includes staff loans, Admin includes security
Audit Committee
Loans Review Committee
Risk Management Committee
Internal Audit
General Meeting of Shareholders
Board of Directors
CCO CFODOO
CEO
Financial
Reporting
Micro Loans
Head of SME
SME Loans
Credit Back
Office
HR*
Legal
IT
Admin*
Financial
Control
Treasury
Accounting
Marketing
Banking
Services
Coordinator
Banking
Services
BS Back Office
Executive Committee
Head of Micro
Core Banking
System
Customer
Service &
Complaints
Recovery Unit
Branches
Head of Agro
Agro Loans
Nomination and Remuneration
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Contents
1. Cornerstones
2. Key Stakeholders
3. Business
4. Financial Data
11
Credit Products
Accessible loans for micro-entrepreneurs and SMEs with transparent conditions
Micro-Loan SME Loan and Overdraft AGRO Loan
Purpose &
Methodology
▪ Financing Business,
mainly working capital,
expansion and Fixed
Assets
▪ Cash flow-based
appraisal, historical
financials
▪ Incorporating household
cash flow & risks
▪ Non of the purposes
prohibited in exclusion
list , no liabilities
financing
▪ Financing Business,
working capital & fixed
asset investment
▪ Cash flow-based
appraisal, incorporating
projections, benchmarks
& supplier info
▪ The same rules for Agro
SME loans
▪ Non of the purposes
prohibited in exclusion
list , no liabilities
financing
▪ Financing farming
business, working capital
& fixed asset investment
▪ Monthly Cash flow-based
appraisal, incorporating
monthly projections and
seasonality of the
farming activities
▪ Flexible repayment plans
▪ Non of the purposes
prohibited in exclusion
list , no liabilities
financing
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Credit Products
Micro-Loan SME Loan and Overdraft AGRO Loan
Products
specifications
▪ Tenor: 4 to 18 months
▪ Amount: ZMW 1,000 -
70,000
▪ Collateral: Inventory,
business equipment,
AB Term Deposits,
vehicles and household
assets. (collateral value
to cover 100% of
approved loan amount)
▪ Tenor: 4 to 36 months for
working capital, or to 60
months for fixed assets.
▪ OD tenor: up to 12 months,
▪ Amount: ZMW 70,000-
3,000,000 (up to 5% of the
bank’s core capital)▪ OD Amount: ZWM 25,000 –
1,500,000
▪ Collateral: Inventory,
machinery/business
equipment, vehicles, real
estate, TDAs. (collateral value
to cover min. 120% of approved
loan amount )
▪ Tenor: 5 to 18 months
▪ Amount: ZMW 3,000-
70,000
▪ Collateral: livestock, farm
equipment, vehicles and
household assets.
(collateral value to cover
100% of approved loan
amount )
Pricing
(Last updated
was in Sep
2016)
▪ Interest rate: ranging
from 5.75% to 7.25%
per month, declining
balance
▪ Fees: Loan
arrangement fees(5%
of loan amount)
▪ Interest rate: ranging from
3.5% to 5.5% per month,
declining balance
▪ Fees: Loan arrangement fees
(5% of loan amount)
▪ Interest rate: ranging
from 5.85% to 7.25% per
month, declining balance
▪ Fees: Loan arrangement
fees (6% of loan amount)
13→ Strong growth of business
Loan Portfolio Development
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Loan Portfolio Development
→ Strong growth of business
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Loan Portfolio Quality
→ Low-risk portfolio
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Business Loans Portfolio breakdown
Banking Services Products
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Products* Current Account Savings Account Savings Plan Term Deposits
Purpose & Accessibility
▪Full-fledged
transaction account
▪National and
international
transfers
▪Cheque service
▪USD/EUR accounts
▪No eligibility
requirements
▪Simple, easy
access account
for flexible
savings at
attractive
interest earnings
▪No eligibility
requirements
▪ Savings
account for
regular
contributions
▪ No
withdrawals
▪ Incentives
for increased
savings
▪ No eligibility
requirements
▪ Fixed-term
accounts
blocked for
withdrawal
▪ No eligibility
requirements
Pricing ▪No monthly fees
▪No minimum
balance
▪Minimal cash
withdrawal fee of
0.3%
▪6% interest p.a.
▪No monthly fees
▪No opening fees
▪No minimum
balance
▪ Interest rates
5% to 8%
▪ Minimum
balance K50
▪ No fees
▪ Interest rates
9% to 20%
▪ Minimum
balance of
K500
→ Competitive conditions on low-cost accounts
Plus account free remittances and Foreign Exchange
+ Kids Account
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Deposit Analysis
→ Financial inclusion for low-income households and MSMEs
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000Amount by Accounts Development
Term Deposits
Current
Accounts
Savings
Accounts
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Future Growth Plans
Geographical expansion in
Zambia
Overdraft product
Cash Outlets: ATMs, Agency
BankingMobile banking
Continuous growth and
process improvement
→ Serving clients in an adapted and commercially sustainable way
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Contents
1. Cornerstones
2. Key Stakeholders
3. Business
4. Financial Data
21
Balance Sheet (ZMW) 2012 2013 2014 2015
Audited Audited Audited Audited
ASSETS
CURRENT ASSETS 6,952,606 9,673,074 19,058,811 35,229,877
Cash on hand 671,374 1,930,678 2,839,997 5,759,676
Non-interest bearing deposits and clearing accounts 4,744,683 3,745,737 15,012,882 25,335,664
Interest bearing deposits and investments < 1 year 102,120 2,748,094 - 1,920,080
Prepaid expenses 728,226 752,821 525,463 826,873
Accounts receivable 234,910 106,597 108,471 407,457
Interests receivable 469,695 384,077 571,997 980,126
Other current assets 1,597 5,070 - -
NET LOAN PORTFOLIO 12,252,063 23,873,524 50,779,127 81,802,081
Gross Loan Portfolio (principal outstanding) 12,707,287 24,999,912 53,180,123 84,528,328
(Loan Loss reserves) -455,224 -1,126,388 -2,400,996 -2,726,247
LONG TERM ASSETS 13,832,162 18,000,996 17,493,222 30,812,181
Net Property and Equipment 11,006,092 15,101,277 13,803,770 18,816,115
Other long term assets 2,826,070 2,899,719 3,689,452 11,996,067
TOTAL ASSETS 33,036,830 51,547,594 87,331,160 147,844,139
LIABILITIES
CURRENT LIABILITIES 6,859,724 22,591,774 50,293,140 82,829,336
Demand deposits 3,408,273 7,664,917 9,501,228 14,079,418
Short term Time Deposits (< 1 year) 524,248 1,045,176 15,174,979 28,589,923
Short term Borrowed Funds (< 1 year) 2,297,700 8,068,940 5,588,000 0
Interests payable 118,091 655,215 1,168,912 893,794
Other short term liabilities 511,412 5,157,526 18,860,021 39,266,201
LONG TERM LIABILITIES 3,319,326 16,592,426 23,839,726 25,771,277
Long term Borrowed Funds (> 1 year) 3,319,326 16,592,426 23,839,726 25,771,277
TOTAL LIABILITIES 10,179,050 39,184,200 74,132,866 108,600,613
EQUITY
Paid-up share capital 30,000,000 30,000,000 52,000,000 104,000,000
Current year profit/loss -3,963,509 -10,494,386 -22,226,030 -28,110,583
Reserves / retained earnings / accumulated losses -3,178,712 -7,142,220 -16,575,676 -36,645,890
TOTAL EQUITY 22,857,780 12,363,394 13,198,294 39,243,526
TOTAL EQUITY AND LIABILITIES 33,036,830 51,547,594 87,331,160 147,844,139
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INCOME STATEMENT (ZMW) 2012 2013 2014 2015
Audited Audited Audited Audited
TOTAL FINANCIAL INCOME 6,274,614 11,556,509 22,102,339 36,264,844
Interest and fee income from loan portfolio 5,251,169 11,099,681 21,184,575 37,433,177
Cash Interest and fee income 4,781,474 10,715,604 20,612,578 36,453,051
Accruals ( Interest receivable) 469,695 384,077 571,997 980,126
Interest and fee income from investments 483,747 160,629 299,300 113,366
Other income from financial services 539,699 296,199 618,464 -1,281,699
TOTAL FINANCIAL EXPENSES 158,909 2,306,632 6,376,821 8,295,573
Interest and fee expense 158,909 2,306,632 6,376,821 8,295,573
for Client Deposits 22,932 105,186 499,712 1,599,526
for Borrowed Funds 135,977 2,201,446 5,877,109 6,696,047
Other financial expenses - - -
GROSS FINANCIAL MARGIN 6,115,705 9,249,877 15,725,517 27,969,271
Net loan loss provision expenses 403,830 671,164 1,282,760 1,014,388
Exchange differences: gain/(loss) 28,506 -348,877 193,580 -9,796,381
NET FINANCIAL MARGIN (after provisions) 5,740,381 8,229,837 14,636,337 17,158,502
Other operating income (non-extraordinary) 777,796 781,742 885,502 1,601,340
Operating expenses 11,761,522 19,506,531 37,747,870 50,058,312
Personnel expenses 5,616,301 10,328,309 14,008,164 20,758,988
Administrative Expenses 6,145,221 9,178,222 23,739,706 29,299,325
NET OPERATING MARGIN -5,243,345 -10,494,953 -22,226,030 -31,298,471
NET INCOME (before donations and income-taxes) -5,243,345 -10,494,953 -22,226,030 -31,298,471
Donations 1,000 - - -
Taxation on income and profits - - -3,924,536
NET INCOME -5,242,345 -10,494,953 -22,226,030 -27,373,935