ADC African Development Corporation AG
ADC achieves strong half-year 2013 results ++ Profit before tax of EUR 11.9 million largely driven by substantial growth in retail banking ++ Strong growth momentum indicates favorable second half-year
ADC African Development Corporation AG / Key word(s): Half Year Results
ADC African Development Corporation AG (ADC), ISIN DE000A1E8NW9, announces strong financial performance in the first half of 2013. The Group achieved net interest income of EUR 42.9 million and total operating income of EUR 69.2 million in H1 2013 compared to an operating loss of EUR -13.4 million in H1 2012. This leads to a profit before tax in H1 2013 of EUR 11.9 million compared to a loss of EUR -19.7 million in the prior year period and a net profit of EUR 7.8 million in H1 2013.
At the end of June, ADC had assets totaling EUR 1,316.6 million, down slightly from EUR 1,414.1 million at the end of 2012. Total deposits were slightly up in local currency (BWP), however declined by 6.7% from EUR 1,041.9 million as at 31 December 2012 to EUR 972.3 million as at 30 June 2013 due to exchange rate differences. Net loans and advances also increased marginally in local currency versus year-end, but again decreased in Euro due to exchange rate fluctuations from EUR 886.6 million at year-end 2012 to EUR 875.9 million at the end of H1 2013. Over the last six months, the stable level of the Group’s total assets in local currency is the result of a deliberate slowdown in balance sheet growth to reduce risk and balance the portfolio. Total equity increased from EUR 154.6 million at the end of December 2012 to EUR 165.7 million at the end of June 2013 driven by profits recognized in the period. Dirk Harbecke, CEO of ADC, commented: ‘ADC’s H1 2013 profit is mainly attributable to the very successful half-year at BancABC underpinned by substantial growth in retail banking which has now achieved critical mass in Botswana, Zambia and Zimbabwe and is starting to deliver the expected strong profitability. In addition, a significant equity contribution from ADC’s indirect investment in Union Bank of Nigeria (UBN) resulted in a net profit of EUR 2.1 million in the reporting period after the bank’s recapitalization and restructuring in 2012, which has already begun to yield gains for investors. In light of the positive H1 2013 results and growth forecasts of the banking operations, we confirm the aim of a consolidated group net profit of EUR 20.0 million by the end of 2013. Moreover, Management and the Supervisory Board jointly decided to undertake the targeted large-scale capital increase in early 2014 in order to use the momentum of ADC’s growth in 2013 to maximize value for existing shareholders. ADC’s team has turned the vision to become a pan-African banking group into a reality and is now working hard to prepare for the Group’s capital increase in the early part of next year, while simultaneously strengthening governance processes by establishing committees within ADC’s newly expanded Supervisory Board. The Group will continue to execute its strategic plan to create a geographically focused pan-African banking group in key markets, leading in terms of size and profitability.’ About ADC Contact: Investor Relations investor-relations@african-development.com T +49 69 719 12 80 119 End of Corporate News 30.08.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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 80 999 | |
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 |
228432 30.08.2013 |