annual report 2011 - accessholding.com · hywel rees-jones. letter from the management board ......

Annual Report 2011

Fruit Sellerfrom Tanzania

www.accessholding.com

Table of Contents

The Access Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Key Results of the Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Letter from the Chairman of the Supervisory Board . . . . . . . . . . . . . . . . . . . . . . . . 6

Letter from the Management Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Summary of Business Development in 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Business Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Our Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 General Meeting of Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Supervisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

History of AccessHolding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Presentation of the AccessGroup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 AccessBankAzerbaijan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 AccèsBanqueMadagascar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 AccessBankTanzania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 ABMicrofinanceBankNigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 AccessBankLiberia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 AccessBankTajikistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 ABBankZambia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Corporate Social Responsibility in the Holding . . . . . . . . . . . . . . . . . . . . . . . . . 38

AccessBank’s Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

AccessHolding Management Report 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Consolidated Financial Statements for the Year Ended 31 December 2011 . . 63

Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Contact Addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

3

AccessHolding|AnnualReport2011

4

AccèsBanqueMadagascar

ABBankZambia

AccessBankLiberia

ABMicrofinanceBankNigeria

AccessBankTanzania

AccessBankAzerbaijan

The Access Network


5

AccessHoldingoperatesanetworkofcommer-cialbanksindevelopingandtransitioncountrieswithatargetgroupfocusonmicro,smallandmedium-sizedenterprises.TheAccessBanknetworkcomprisessevenmemberbankswithatotalofabout3,500staffandover500,000clients,growingbyseveralthousandeverymonth.

AccessHolding in Brief

AccessBankTajikistan

Key Results of the Year(asof31December2011)

2011 2010

Totalassets(EUR) 480m 408mGrossloanportfolio(EUR) 351.6m 289.4mNo.ofloansoutstanding 181,902 158,707Portfolio-at-Risk 30daysin% 1.0 % 1.0%Totalcustomerdeposits(EUR) 188m 146mNo.ofdepositaccounts 482,846 332,641No.ofstaff 3,318 2,502No.ofbranches 68 57

6


Letter from the Chairman of the Supervisory Board

DespitetherecentfinancialmarketturmoilexperiencedinEuropeandNorthAmericatheemergingmarketshaveprovedtoberesili-entunderpinnedbyprudentbanking,growingpopulationsandrisingrealincomes.

AccessHoldingcontinuedtoenjoystronggrowthin2011.Totalassetsofnetworkbanksgrewby18%,loansby21%,depositsby28%andclientsby45%.ThishasbeenachievedboththroughorganicgrowthandbythecontinuedcreationofnewAccessfinancialinstitutions.The7thnetworkbankwasopenedinOctoberwiththelaunchofABBankZambia.ThemostmaturebankinthenetworkisAccessBankAzerbaijanwhichonceagainwonanumberofawardsin2011.Itnowhas30branchesspreadthroughoutthecountry.Over3,300peoplearenowemployedacrossthe7banksandcollec-tivelytheyserveaclientbasethatisexpectedtoexceed500,000inthefirsthalfof2012.

In2011,theGroupposteditsfourthconsolidatedprofitinarow,asignifi-cantprerequisiteforbuildingasustainablebankingnetworkfocusedontheneedsofmicro-entrepreneursandSMEbusinesses.ProfitabilityhasbeenachievedwithoutcompromisingthecommitmentofAccesstooperateinaccordancewiththeSMARTPrinciplesofclientprotectionandtheUNPrin-ciplesforResponsibleInvestment.ProfitabilityisanessentialingredientinenablingAccesstocontinuetoexpandbydrawingcapitalfromitscurrentshareholderbaseandinduecoursefromnewprivatesourcesofcapital.InorderforAccesstomaximiseitsimpactitmustbeprofitableandhencesus-tainableoverthelong-term.

Iwouldliketorecordmythankstoallstaffmembers.Theircontinueddedica-tionandgrowingexpertiseliesbehindthecompany’simpressiveperformance.

HywelRees-Jones

Letter from the Management Board

Fromitsfoundationin2006,AccessHoldinghasgrowntobecomeasuccessfullyoperatinginternationalbanknetwork.Networkbankshaveevolvedintosignificantplayersinthebankingsectorsoftheirrespectivecountriesofoperations.Attheendof2011,weservedmorethan180thousandcreditcustomerswithatotalloanportfolioofmorethanEUR350millionthrough68branchesinsevencountries,andoperatedmorethan480thousandcustomerdepositaccountswithanaggregatebalanceofEUR188million.

Thisprosperous‘takeoff’phaseofAccessBanksisreflectedinanover-achievementofgoalsbyAccessHolding,whichhasshownprofitability(basedonIFRS)ineachyearsince2008.Itcanbeexplainedbytheeffectiveinterplaybetweenshareholders,supervisoryboard,managementandstaffofAccessBanksthatsharestrongcorporatevalues;inparticulartransparency,non-discrimination,opencommunication,performanceorientationandsocialresponsibility.

Theyear2011hasbeenanothersuccessfulbusinessyearforAccessHolding.Allnetworkbankshavebeenperforminginlinewith(orabove)expectations.ThelaunchofABBankZambia,theagreementonthestrategictakeoverofAccessBankinAzerbaijanandthemoveintonewheadquarterpremisesinBerlintosupportfurtherexpansionarejustsomeof2011keymilestones.Thebuildingofheadofficestructuresisespeciallyimportantatthisstageinordertoprovidequalityassuranceandreapthesynergiesrequiredforfurthergrowth.

TheHoldingperformsmanyfunctionsthatcannormallybefoundintheheadofficeofaglobalbank.ApartfromManagement,mainfunctionsare:HRdevelopmentofAccessBanks,productdevelopmentandsupportofthebusinessofthesebanks(loans,deposits,andpaymentservices),accounting,internalaudit,andlegaladvice.Furthermore,theheadofficeplaysanimportantrolewithregardtothedevelopmentofsoftwaresystemsandongoingITsup-portofAccessBanks,andthetrainingofthebanks’managementandstaff.

ThishealthystructuralbackgroundgivesAccessHoldingtheconfidencetoachieveitsmissionofbeingaleadingstrategicinvestorinthemicrofinanceindustryandtofurtherexpanditsglobalnetworkofsubsidiaries.WithjointeffortsAccessHoldingwillrealizeaninterestingpipelinewithfurtherinvest-mentsinthethreefocusregionsSub-SaharanAfrica,CentralAsia/EasternEuropeandLatinAmerica.Inadditiontothisplannedmarketdevelopment,mostAccessBankswillincreasinglyofferservicestomiddleincomecustomersandlarger,moreformalSMEs.Theywillnotonlybemicroandsmallbusinessbanksbut“goodbanks”thatofferrelevantfinancialservicesinacustomerfriendlywayatattractiveconditions.AccessBankswillplaypioneeringroleswithregardstoemploymentstandards,environmentalprotection,customerprotectionandresponsiblelending.

ChristophDiehlandThomasEngelhardt

7

Summary of Business Development in 2011

In2011,AccessHoldinganditsbankingnet-workcontinuedtogrowatarobustpace.Totalassetsofnetworkbanksgrewby18%toEUR480million,fuelledbyanincreaseofthetotalgrossoutstandingloanportfolioby21%toEUR352million.Thenumberofoutstandingloansroseby15%to181,902,whereasthenum-berofcustomerdepositaccountssoaredby45%to482,846(propelledbyastrongclientbaseexpansioninSub-SaharanAfrica).Totalbalancesoncustomerdepositaccountsheldbynetworkbanksincreasedby29%toEUR188million.Morethan3,300staffwereemployedbythesevennetworkbanksasatyear-end,anincreaseof32%comparedto2010.

Mostimportantly,thisgrowthdidnotcomeatthecostofquality.Arrearsandloanlossratesremainatequallylow(i.e.strong)levelsasin2010,withagroup-widePAR 30of1%andcumulativeannualwrite-offsbelow1%attheendof2011.

Profitability-wise,2011wasnotasstrongasthepreviousyear,mainlybecausetheexcep-tionallyhigh2010netprofitofAccessBankAzerbaijanreturnedtomorecustomary(albeitstillstrong)levels.Thetotalafter-taxprofitofallnetworkbankscombinedwasEUR16.7million.

Butevenbeyondtherealmoffinancials,2011hasseennumerousexcitingdevelopmentsandmilestonesacrosstheAccessBanknetwork.Thetimelinebelowvisualizessomeoftheseeventsalongthecourseoftheyear.

8


ABMicrofinanceBankNigeriawitnessesacapitalincreasefromNGN1bntoNGN1.5 bn(EUR4.7milliontoEUR7.1million).

AccessBankTajikistanreachesaloanportfolioofmorethanEUR5million,afterjustoveroneyearofoperations.

ABMicrofinanceBankNigeriasuccess-fullyimplementsSMElending.

FitchRatingsrecon-firmsAccessBank’sBB+rating–thehighestamongAzerbaijan’sprivatebanks;GlobalFinancemagazinerecognizesAccessBankasthebestbankinAzerbaijaninits2011Awards.

AccessBankTanzaniaintroduces“M-Pesa”mobilephonetransferandpaymentservicesasanagentforVodacomTanzania.

2011 February March April June

9

TheBankerMagazinenamesAccessBankasthe‘BankoftheYearinAzerbaijan’initsannualawards.

AccessBankinAzerbaijandisbursesits500,000thloan.

ABBankZambiaisgivenaprestigiousmicrofinanceawardbytheBankersAssociationofZambia.

AccessBankTanzaniareceivesacapitalincreaseofTZS2bn(EUR975thousand)tosupportnewbranchopenings.AccessHoldingbecomesmajorityshareholder.

AccessBankTanzaniareachesthemilestoneof75,000customerdepositaccounts.

TheCentralBankofLiberiaconfirmsthatAccessBankLiberiahasbyfarthebestportfolioqualityintermsofPARintheLiberianbankingsector.

ABBankZambiaopensitsdoorstothepublic.

August 2011BothLFSand

AccessHoldingmoveintonew,significantlylargerofficepremises,thuscreatingsufficientphysicalcapacityforfurthergrowth.

AccèsBanqueMadagascaropensitsfirstruralbranchwithfocusonagriculturalbusiness.

AccessBankwinstheawardfor“BestBankofAzerbaijan”attheannualEuro-money“AwardsforExcellence”inLondon.

July August October November December

Business Purpose

Our vision is a financial sector that offers re-sponsible financial services to all people with equal ambition for excellence and quality.

AccessHolding’smissiontherebyistooperateagrowingglobalnetworkofresponsiblecom-mercialbanksindevelopingandtransitioncountriesthatprovideresponsiblefinancialservicestolowandmiddleincomehouseholdsandinparticulartomicroandsmallbusinesses.

Intheircountriesofoperations,AccessBanksstrivetobethe‘housebank’(bankofchoice)formicroandsmallenterprises,byofferingallthefinancialservicesthattheyusuallyneed.

WebelievethattheMSEsectorisvitalforthedevelopmentanddiversificationofacountry’seconomy,thecreationofjobsandthereductionofpoverty.

Manypeopleinourcountriesofoperationdonothaveaformalandregularsourceofincomebutlivefromtheproceedsofmicroandsmallenterprises,themajorityofwhichareinformal(orsemi-formal)Mostclientsdonotpossessofficialfinancialdocumentation.Furthermore,mostofthepopulationispoorinthesensethattheyarenotabletoaccumulatelargesavingsandassets.

Traditionalcommercialbanksdonotservethisimportantpartofthepopulationadequatelybecausetheirloanbusinessfocusesonlargecompaniesandconsumerloansforsalaryear-ners.Inaddition,theyusuallydiscouragesmalldepositsthroughavarietyofinstruments,e.g.byaskingforhighminimumbalancesontheaccountsorbyrequiringextensiveaccountopeningdocumentation.

Ontheothersideofthefinancialsector,non-bankfinancialinstitutions(e.g.non-governmentalorganizationsandcooperatives)thatofferservicestomicroenterprisesareoftennotef-ficient,mainlyduetotheincentivesgeneratedbytheirownershipstructure.Furthermore,theyarenotauthorizedtooffermanyoftheservicesthatsmallentrepreneursandtheirfamiliesrequire,inparticulardepositaccountsandsimplepaymentservices.Theyoftenremainsmallandasaconsequencearenotabletoreapeconomiesofscalethatwouldallowthemtoreducetheirmarginsovertime.

SmallentrepreneursandtheirfamiliesarethemaintargetgroupofAccessBanks.Ournetworkbankshaveafullbankinglicense(currentlywiththeexceptionofouraffiliateinNigeria).Thisallowsthemtoofferasufficientlybroadproductrangetoevolveintothebankofchoiceofsmallentrepreneurs.Furthermore,allofourproductshavebeenmindfullydesignedinawaytomeettheneedsofthelatter.

Thebank’sloansareprimarilybasedonanassessmentoftheborrower’srepaymentcapacity.Asaconsequence,providingfinancialservicestoourcustomersispersonnel-inten-siveduetothesmallsizeoftransactionsandbecausesmallentrepreneursinourcountriesofoperationsareusuallynotabletoprovidedocumentationofreliablefinancialdata.Thisrequirescollectinginformationthroughcompa-nyandhouseholdvisits.AccessBanks’dedica-tedproductsandriskmanagementtechnology,specificallydevelopedtoservemicro-,small-,andmedium-sizedenterprises,allowthebankstodothisefficientlyandprofitably.

AccessBanksbuild-uplongtermbusinessrela-tionshipswithcustomersbasedonresponsibil-ityandmutualrespect.Bydoingsotheypromoteasavingscultureandsupportborrowerstobuild-upacredithistory.

10

Core CorporateValues andBusiness Model

Mission Statement


Shareholders,managementandstaffofAccessBankssharestrongcorporatevalues,inparticular:

Transparency Non-discrimination Opencommunication Performanceorientation Socialresponsibility Environmentalprotection

AccessHolding’s business modelrestsonthecreationoracquisitionofnewlyestablishedorexistingcommercialbankswithatargetgroupfocusonmicro,smallandmedium-sizedenter-prises(MSMEs).Thesebanksarethenintegra-tedintoagroupwithacommonbrandidentity-the“AccessGroup”.Banksinthegroupshareacorerangeofstandardisedproducts(withlocaladaptationsasrequired)andajointcommit-menttothesameprinciples:

1.Ease and speed of access–providingfinancialservicestopreviouslyun-orunderservedpartsofthepopulation,withtheaimtobefasterandmoreefficientthananycomparableoperatorinthecountry;

2.Transparency and clarityofproducts,servi-cesandeligibilitycriteria–withaslittleroomfordiscretionorsubjectiveinterpretationaspossible;

3.Quality leadership–inallourcountriesofoperations,westrivetosetindustrystandardswithrespecttocustomerorientationandservicequality.Atthesametime,allmemberbanksarecommittedtoensuringthehighestpossiblequalityoftheirloanportfoliosthroughadherencetointernationalbestpracticeswithrespecttotheirunderwritingstandardsandcreditriskmanagement.

4.Training and staff development–oneofthevitalelementsofthebuild-upstrategyforeachmemberbankistherecruitmentandtrainingoffreshstaffonalargescale.Ourrecruitmentconceptplacesstrongemphasisonidentifyingtalentedandmotivatedstaffthatnotnecessarilyhaspriorrelevantworkexperience.Qualifyingthemtoassumemoreresponsiblerolesovertimeisachievedthroughregulartrainingandcoachingaswellasfrequentstaffexchangebetweennetworkbanks.

5.Strong business ethics–AllmembersoftheAccessGroupadheretoajointsetofprinciplesofgoodcorporatebehaviour,coveringamongothersareassuchasresponsiblelendingpractices,adherencetointernationalandlocalsocialandenvironmentalstandards,aswellasastringentcodeofconductforallmemberbankemployees.

Hence,AccessHolding’srolegoesbeyondthatofaprojectincubatororconventionalstrategicinvestor.

11

Our Shareholders

AccessHoldingiscurrentlyownedbyeightshare-holders,hereafterpresentedinalphabeticalorder:

CDCistheUK’sdevelopmentfinanceinsti-tutionthatsupportsthebuildingofbusinessesandinfrastructureinthepoorestpartsofAfricaandSouthAsia,creatingjobsandmakingalastingdifferencetopeople’slives.

Workinginsomeoftheworld’smostdeman-dingbusinessenvironmentsCDC’sthreecoreareasofbusinessare:

Private equity funds investing; Direct equity investing in companies,

banks and infrastructure; and Direct lending to companies, financial

institutions and infrastructure projects.Investingfromitsownbalancesheet,CDChasreturnedaprofitof£1.7bnsince2004.

TheEuropean Investment Bank (EIB)istheEuropeanUnion‘sfinancinginstitution.Itsshareholdersarethe27MemberStatesoftheUnion,whichhavejointlysubscribeditscapital.

12

OwnershipStructure ofAccessHolding

ThecurrentownershipstructureofAccessHoldingisshowninthetablebelow.

14,12 %

3,26 %

14,12 %16,12 %

14,12 %

14,12 %

10,03 %

14,12 %


CDCGroupplc(CDC)

NetherlandsDevelopmentFinanceCompany(FMO)

LFSFinancialSystemsGmbH(LFS)

TheEuropeanInvestmentBank(EIB)

TheOmidyar-TuftsMicrofinanceFund(OTMF)

InternationalFinanceCorporation(IFC)

KfWEntwicklungsbank

MicroAssets

TheEIB‘sBoardofGovernorsiscomposedoftheFinanceMinistersoftheseStates.TheEIB‘sroleistoprovidelong-termfinanceinsupportofinvestmentprojects.OutsidetheEU,theEIBisactiveinover150countries(thepre-accessioncountriesofSouth-EastEurope,theMediterra-neanpartnercountries,theAfrican,CaribbeanandPacificcountries,AsiaandLatinAmerica,CentralAsia,RussiaandotherneighbourstotheEast),workingtoimplementthefinancialpillarofEUexternalcooperationanddevelopmentpolicies(privatesectordevelopment,infrastruc-turedevelopment,securityofenergysupply,andenvironmentalsustainability).

FMOistheDutchdevelopmentbank.Itfi-nancescompanies,projectsandfinancialinsti-tutionsfromdevelopingandemergingmarkets.AttheheartofFMO’sstrategystandsthebeliefthatentrepreneurshipiskeyincreatingsustai-nableeconomicgrowthandimprovingpeople’squalityoflife.FMOisspecializedinsectorswhereitscontributioncanhavethehighest

TheOmidyar-Tufts Microfinance Fund,in-vestsinthefinancialservicessectorinemergingmarketsanddevelopingcountries.Thefundseekstodemonstratetheviabilityofcommercialinvestmentinmicrofinancetoinstitutionalinvestors.ThefundishousedwithintheTuftsUniversityendowment.Thefundwasestablis-hedinNovember2005throughagifttoTuftsUniversitybyPierreOmidyar,founderofeBay,andhiswife,Pam,co-founderofOmidyarNetworkwithherhusband.TuftsUniversity(www.tufts.edu),locatedonthreeMassachusettscampusesinBoston,Medford/Somerville,andGrafton,andinTalloires,France,isrecognizedamongthepremierresearchuniversitiesintheUnitedStates.Tuftsenjoysaglobalreputationforacademicexcellenceandforthepreparationofstudentsasleadersinawiderangeofpro-fessions.

TheownersofAccessHoldingandtheAccess-BankssharetheobjectivesandcorporatevaluesoftheGroupaswellasthefundamentalsofourbusiness model(seepage10–11).Inparticular,theyareconvincedthatprovidingresponsiblefinancialservicestosmallenterprisesandlowerincomestratacanbedoneonaprofitableandsustainablebasis.Theyprovidepatientcapitalthatallowsustopursuealong-termapproachininvestingintrainingandbuildingupasignificantcustomerbasis.

Furthermore,allofourShareholdersplacehighemphasisontheGroup’scorporate social respon-sibility.Tothiseffect,theyhaveformulatedacomprehensivesetofpoliciesforournetworkbanksthatincludesresponsiblelendingpracti-ces,goodemploymentstandards,acodeofconductforallstaffatbankandholdinglevel,andastringentsocialandenvironmentalman-agementsystem.AllmemberbanksoftheAccessGroupstrivetoberecognisednotonlyasexcel-lentfinancialserviceproviders,butmoregenerallyasemployersandstakeholdersofthehighestintegrityintheirlocalcommunities.

ThemixofpublicandprivateinvestorsofAccessHoldingsupportsthemissionofthecompany.WhilepublicinvestorsaddtothereputationandsolvencyofAccessHoldingandstrengthenlongtermcommitmenttodevelop-mentgoals,privateinvestorsareexpectedtoensurecommercialsuccess.

13

long-termimpact-financialinstitutions;energy&housing;andagribusiness,food&water.Theyalsofostercapacitydevelopment,suchasfinancialadministration&planningskills,andsustainablebusinesspractices.

The International Finance Corporation(IFC),amemberofWorldBankGroup,createsopportunityforpeopletoescapepovertyandimprovetheirlives.IFCfosterssustainableeco-nomicgrowthindevelopingcountriesbysup-portingprivatesectordevelopment,mobilizingprivatecapitalandprovidingadvisoryandriskmitigationservicestobusinessesandgovern-ments.Thecorporation’snewinvestmentstotaledUSD12.2billioninfiscalyear2011.Thiswasspreadover518projects;USD4.9billionwenttothepoorestcountrieseligibletoborrowfromtheWorldBank’sInternationalDevelopmentAssociation.IFCalsomobilizedanadditional$6.5billiontosupporttheprivatesectorindevelopingcountries.

KfW Entwicklungsbankfinancesinvest-mentsandaccompanyingadvisoryservicesindevelopingandtransitioncountriesonbehalfoftheGermangovernment.Itsaimistobuildupandexpandthesocialandeconomicinfra-structureoftherespectivecountries,andtoad-vancesoundfinancialsystemswhileprotectingresourcesandensuringahealthyenvironment.KfWEntwicklungsbankisaleaderinsupportingresponsibleandsustainablemicrofinanceandisinvolvedintargetgroup-orientedfinancialinstitutionsaroundtheworld.ItisanintegralpartofKfWBankengruppe,whichistheleadingpromotionalbankinGermany.

LFS Financial Systems GmbH (LFS),whichhasfoundedAccessHoldinginAugust2006andwhichisalsothetechnicalpartnerandma-nagerofthecompanyaswellasitsinvestees.LFSisanadvisoryandmanagementfirmbasedinBerlin,specializinginbankingandfinancialsectorprojectsindevelopingandtransitioncountrieswithfocusonmicro,smallandmedi-umenterprise(MSME)finance

MicroAssets,aBerlin-basedinvestmentcompanythathasbeenestablishedtoenableLFSandstaffoftheAccessnetworktoinvestinAccessHolding.

Common

Objectives and

Values

Corporate Governance

AccessHoldinghasestablishedagovernancestructurethatallowswellinformedandstrongdecisionmaking.Inparticular,theSupervisoryBoardoftheHoldingisactivelysteeringthebusinesswhilemanagementhasfullrespon-sibilityforday-to-daydecisions.Withthesuc-cessivedevelopmentofgloballystandardisedpolicies,productsandsystems(solutions)acrosstheAccessBanknetwork,theManage-mentofAccessHoldingisalsoresponsibletoensurethatmemberbanksareoperatinginconsistencywiththesestandards,soasfortheGrouptoreapnetworksynergiesandfacilitatetheexchangeofpersonnelandotherresourcesbetweenbanks.

AccessHoldingisaJointStockCompany(Aktiengesellschaft)inaccordancewiththeGermanJointStockCompanyLaw(Aktienge-setz)andotherapplicablelaws,furtherrefer-redtoasGermanCorporateLaw.TheCompanyisregisteredinBerlinandsharesofficeswithitstechnicalpartnerLFS.

ThesharesofAccessHoldingareordinaryre-gisterednon-bearershares,whichcanonlybesoldwithpriorapprovaloftheothersharehol-ders.

AccessHoldinghasthethreemaincorporatebodiesofaJointStockCorporationunderGermanCorporateLaw:theGeneralMeetingofShareholders,theSupervisoryBoardandtheManagementBoard.Thefollowingenumera-tionsprovideanoverviewofthetasks,rightsandresponsibilitiesofeachbody.AlloftheseprovisionsaredefinedmorecomprehensivelyintheCompany’sArticlesofAssociationandShareholderAgreement.

1. General Meeting of Shareholders

IntheGeneralMeetingofShareholders(GMSH),allinvestorshavevotingrightsinproportiontotheirrespectiveshareholdings.Thebody’smaintasksandrightsare:

Toapproveoramendthecompany’s ArticlesofAssociation;

ToappointmembersoftheSupervisory Board;

Toappointtheexternalauditorof AccessHolding’sfinancialstatements;

TodeterminetheuseofAccessHolding’s profit.

2. Management Board

Withthesuccessivedevelopmentofgloballystan-dardisedpolicies,productsandsystems(solutions)acrosstheAccessBanknetwork,themanage-mentofAccessHoldingisalsoresponsibletoen-surethatmemberbanksareoperatinginconsis-tencywiththesestandards,soasfortheGrouptoreapnetworksynergiesandfacilitatetheexchangeofpersonnelandotherresourcesbetweenbanks.

WithinthegovernancestructureofAccessHolding,theManagementBoardisresponsiblefortheday-to-dayoperations(includingtheformulationofinvestmentproposals)andsupportstheSupervisoryBoardinitscontrolanddecisionmakingfunctions.

TheManagementBoardofAccessHoldingiscurrentlycomposedoftwomembers,bothofwhichhaveservedatAccessHoldingsinceitsinception:

Thomas Engelhardt (Chairman) Bornin1971,Mr.EngelhardtisoneofthethreepartnersinLFS,andhasbeenwiththecompanysinceitsfoundationin1997.Hehas15

yearsofworkingexperienceintheareaofMSMEfinance,includingvariousseniormanagementpositionsinconsultancyprojectsinCentralAsiaandSouthEasternEurope.Between2002and2006,Mr.EngelhardtservedasthefirstGeneralManagerofAccessBankAzerbaijan(thennamed‘MicroFinanceBankofAzerbaijan’),thusplayingtheleadingroleinbuildingupAccessHolding’sflagshipbankfromscratch.HeistheChairmanoftheSupervisoryBoardsofAccessBanksinTajikis-tanandLiberiarespectively,andisaSupervisoryBoardmemberofAccessBankAzerbaijan.Mr.EngelhardtholdsanM.ScinEconomics,andspeaksGerman,English,RussianandSerbo-Croat.

14

GovernanceStructure

Legal Form/Formof Shares

Bodies


15

Christoph DiehlhasbeenworkingforLFSsince2000andisresponsibleforLFSprojectsinAfrica.WiththefoundationofAccessHoldinginAugust2006,Mr.DiehlwassecondedtotheManagement

BoardoftheHolding.Inthiscapacity,heservesastheChairmanoftheSupervisoryBoardofAccessBankTanzaniaandABBankZambiaandisamemberoftheAuditCommitteeofAccessBankAzerbaijan.HehasthreeyearsprofessionalexperienceasGeneralManagerofaformerLFS-managedMicrofinanceBankinMozambique,andtenyears’experienceinseniormanagementandteamleaderpositionsinMSMEandhousingfinanceinstitutionbuildingprojectsinvariouscountries.From1992to1996,Mr.DiehlservedasanauditorintheoverseasdepartmentofC&LDeutscheRevision.Mr.DiehlhasanM.Sc.inEconomics,andspeaksGermanandEnglish.

JointheadofficeofAccessHoldingandLFSFinancialSystemsinBerlin,exteriorviewandbelow,lobbyentrancehall.

16


Corporate Governance/Organization

3. Supervisory Board

WithinthegovernancestructureofAccess-Holding,theSupervisoryBoardisresponsibleforthedeterminationofthegeneralbusinessstrategy,theappointmentoftheManagementBoardmembers,themonitoringofoperationalactivitiesandthedecisiononallinvestmentsordivestments.TheSupervisoryBoardisnotinvolvedintheday-to-dayoperativebusinessoftheHolding.Itcurrentlyconsistsofthefol-lowingsevenmembersnominatedbythesevenmajorshareholdersofAccessHolding.

Edvardas BumsteinasisaSeniorInvestmentOfficerattheEuropeanInvestmentBank(EIB),beingresponsibleformicrofinanceoperationsintheAfrica,CaribbeanandPacific(ACP)region.Heisamemberofgovernancebodiesandinvest-mentcommitteesofvariousmicrofinancein-vestmentcompanies.PriortojoiningEIBin2005,heworkedasconsultantandteamleaderinoperativemicrolendingprojects.Mr.BumsteinasholdsaM.Sc.inTransitionEconomicsfromtheLondonSchoolofEconomicsandPoliticalScience.

Frank BellonisaPrincipalSectorEconomistatKfW.Heisresponsibleformicrofinanceanden-vironmentalfinancewithinKfW’sCompetencyCenterforSustainableEconomicDevelopmentandGlobalFunds.HeservedalsoasDirectorofKfW‘sCountryOfficesforBoliviaandChileaswellasforBosnia-Herzegovina.FrankBellonhasmorethan20yearsofexperienceindevelop-mentbankingandprojectfinanceandisamem-berofseveralgovernancebodiesoffinancinginstitutions.FrankBellonholdsaMasterDegreeinEconomicsfromtheUniversityofTübingen.

Bernd ZattlerisChairmanoftheSupervisoryBoardsofAccèsBanqueinMadagascarandABMicrofinanceBankNigeria,andDirectorontheSupervisoryBoardofAccessHolding.BeforethefoundationofLFS,heworkedforamultinationalfirmandininstitutionsengagedindevelopmentfinance.HefoundedLFS,AccessHolding’stechni-calpartnerin1997,andhassincethenbeenManagingDirectorandmajorityownerofthefirm.

17

MembersoftheSupervisoryBoard:(lefttoright)EdvardasBumsteinas,FrankBellon,BerndZattler,HywelRees-Jones,EltjoKok,SyedAftabAhmed,TryfanEvans

Hywel Rees-JonesisaManagingDirectoratCDCwithprimaryresponsibilityforglobalsectorprivateequityfunds,microfinanceanddebt.Hisentirecareerhasbeenfocusedontheemergingmarketswherehehasworkedasadevelopmenteconomist,lender,privateequityinvestorandfundoffundsinvestor.Hehaslivedformorethan20yearsinemergingmarketsbothinAfricaandAsia.Hehasbeenadirectorofbusinessesintheagribusiness,financial,FMCG,andpropertysectors.

Eltjo Kokisacorporatefinancialadvisor.HefunctionsasBoardroomAdvisorandisspecia-lisedinimprovingpersonal,teamandcorpo-rateperformanceandeffectiveness.HeworkscurrentlywithDirectorsandBoardsofmulti-nationalandfamilyownedcompanies.HehasbeeninvariouspositionsinhiscorporatelifesuchasFinanceDirector,DivisionalRegionalDirectorandGlobalHRDirector.

Syed Aftab Ahmed workedwiththeInternatio-nalFinanceCorporation(IFC)invariouscapa-citiesfromAugust1989untilhisretirementinDecember2006.ThelastpositionheldatIFCwasasSeniorManagerinchargeoftheGlobalMicroandSmallBusinessFinanceGroup.Inthiscapacity,Mr.AhmedledthedevelopmentofIFC‘sglobalmicrofinancebusinesspracticeandrelatedinvestmentportfolio.Sincehisre-tirement,IFChasnominatedhimontheBoardofDirectorsandtheinvestmentcommitteesofvariousportfoliobanksandfinancialinstitutions.Mr.AhmedholdsaMaster‘sdegreeinEconomics.

Tryfan EvansisDirectoroftheOmidyar-TuftsMicrofinanceFundandresponsibleforinvest-mentstrategy,andportfolioconstructionandmanagement.Mr.EvansalsoservesasDirectorofInvestmentsintheTuftsUniversityInvest-mentOfficewhereheisresponsiblefortheendowment‘sinternationalprivateequitypro-gram.Hehasinvestmentexperienceinover20developingcountriesinAfrica,LatinAmerica,EasternEurope,andSouthandSoutheastAsia.

History of AccessHolding – Main Events and Milestones

Sinceitsestablishmentin2006,AccessHoldinghasinvestedineightcommercialmicrofinancebanks.Twohadalreadybeenco-foundedbyLFSpriortotheestablishmentoftheHolding:MicroFinanceBankofAzerbaijan(whichwaslaterrenamedintoAccessBank,‘ABA’)andSocremoBancodeMicrofinançasinMozam-bique.TheinvestmentinSocremowashoweversoldin2008astheshareholdersoftheBankcouldnotreachagreementonitsintegrationintotheAccessBanknetwork.

ThebanksfoundedaftertheestablishmentofAccessHoldingareAccèsBanqueMadagascar(February20071),AccessBankTanzania(Nov-ember2007),ABMicrofinanceBankNigeria(November2008),AccessBankLiberia(January2009),AccessBankTajikistan(April2010)andABBankZambia(October2011).Thefoundationofthesebankswasspearheadedandcoordi-natedbyAccessHoldingastheleadinvestor,incollaborationwithotherinternationalandlocalinvestors.

AllsevenmemberbanksoftheAccessBanknetworkhavebeendevelopinginlinewith(oraheadof )investorexpectations.Thissuccess-fulperformancehasenabledAccessHoldingtobecomeprofitable(basedonIFRS)alreadyin2008,onlytwoyearsafteritsfoundation.Whilethetotalnetwork’sgrossoutstandingloanportfoliogrewtoEUR351.6millionattheendof2011,97%ofoutstandingloansamountedtolessthanEUR10,000,indicatingaclearfocusonthemicroenterpriseclientele.

LFShasalsobeensignificantlyexpandedsinceAccessHolding’screationin2006,enablingeachnetworkbanktodrawonprofessionalsupportofitsIToperationsatanytime.

Moreover,theAccessBanknetworkhasalsomaintainedanexcellentloanportfolioquality,withaconsolidatedPortfolio-at-Riskgreater30days(PAR 30)ratioaround1%andannualwrite-offratiosofbelow1%ineveryyearsinceinception.Thesequalityindicatorsarecurrentlyunrivalledamonggloballyoperatingmicro-financebanknetworkswithsimilarlendingmethodologies.

However,theimpactofAccessBanksisbyfarnotlimitedtotheirlendingactivities.Overthelastyears,thenetworkbankshaveevolvedintosignificantretailbanksintheirrespectivecoun-triesofoperations,withatotalofmorethan3,300staffspreadover68branchesinsevencountries,theyhavebuiltupatotalof482,846customerdepositaccountswithaggregatebalancesofEUR187.8million.Thetotalclientbasewillexceed500,000inthefirsthalfof2012,andisprojectedtoreachonemillionclientsbytheyear2016.

Inparalleltothedevelopmentofitsbankingnetwork,AccessHolding(incollaborationwithLFS)hasbuiltupitsheadofficestructuresinBerlin.Since2010,networkbanksarecom-prehensivelysupportedbycentralpersonnelworkinginareassuchascredit,retail,productdevelopment,internalaudit,humanresources,learning&development,oraccounting&finance.TheinformationtechnologyarmofLFShasalsobeensignificantlyexpandedsinceAccessHolding’screationin2006,enablingeachnetworkbanktodrawonprofessionalsupportofitsIToperationsatanytime.

1Thedatesinbracketsrefertothemonthsinwhichtherespective

banksopenedtheirdoorstothepublic,notwhentherespectivelegal

entitieswerecreated.

18

Summary


AccessHoldingisfoundedPreparationoffirstroundofinvestments

InvestmentsinexistingbanksinAzerbaijan andMozambique

Foundationandlaunchofnetworkbanksin MadagascarandTanzania

CDCjoinstheshareholdergroup

AHbecomesprofitableDivestmentfromSocremoBank(Mozambique)

LaunchofABMicrofinanceBankNigeria

LaunchofAccessBankLiberiaFMOjoinstheshareholdergroup

LaunchofAccessBankTajikistanSignificantexpansionof

headofficestructures

LaunchofABBankZambiaMoveintonewpremisestosupportfurther

expansionAgreementonstrategictakeoverof

AccessBankinAzerbaijan

19

2006

2007

2008

2009

2010

2011

Watchmakerfrom Azerbaijan

AccessBank Azerbaijan

AccessBankAzerbaijanwasfoundedbyLFSFinancialSystemsandamultinationalgroupofpartners(theBlackSeaTradeandDevelopmentBank,theEuropeanBankforReconstructionandDevelopment,theInternationalFinanceCorporation,andKfWEntwicklungsbank)inlate2002undertheoriginalnameof‘MicroFinanceBankofAzerbaijan’.AccessHoldingwasadmittedasashareholderafteritsfoundationin2006.In2008,itwasrenamedintoAccess-BankandhassincethenbeenthepremierbankoftheAccessBanknetwork.

21


Overview

BranchNetwork (30)

Shareholders

Capital BakuInhabitants 9.2mArea 86,600km2

GDP per capita (US$) 5,722Key industries Extractiveindustries (oilandnaturalgas)

Baku(14)

KhirdalanSumqayit

Guba

Khachmaz

Mingechevir

Ganja(2)

Gazakh

Zaqatala

Sheki

Goychay

Barda

Imishli

Jalilabad

Lenkoran

Salyan

20,0 %

16,5 %

20,0 %

20,0 %

20,0 %

3,5 %

loans,housingandagriculturalloans,differenttypesofcustomerdeposits,avarietyofmoneytransferservicesaswellaspaymentcards.AgrowingnumberoflargerSMEsarealsousingadvancedbankingservices,suchassalarypaymentfacilitiesandup-to-datetradefinan-cingproducts,suchaslettersofcredit(L/C)andlettersofguaranteewithintheframeworkoftheEuropeanBankforReconstructionandDevelopment’s“TradeFacilitationProgram”.

AccessBank Azerbaijan

Products

AccessBankhasdemonstratedstronggrowthfromthebeginningandhasrecentlyopenedits30thbranch.Ithasquicklyevolvedintotheleadingprovideroffinancialservicestomicro,smallandmedium-sizedenterprises(MSMEs)inAzerbaijan.AsofJanuary2012,AccesBankhasdisbursed528,882loansforUSD1,853,365,972sinceitsinception.ButevenbeyondtherealmofMSMEfinance,AccessBankisarecognizedqualityleaderinthecountry’sbankingsector,holdingthehighestratinginthebankingsector(LongTermIDRBB+/viabilityratingb+,Fitch).

Intermsoftotalbankingassets,AccessBank‘smarketsharewas2.81%attheendof2011withUSD373,086.47.Itisranked7thoutofallbanksinthecountry.Inaddition,intermsoftotalloanportfolio,AccessBank‘smarketshareis3.12%attheendof2011withUSD289,381.71.

Thebankhaswonvariousprestigiousawards(bydifferentinternationalinstitutes)asthebestbankinAzerbaijaninthepastyears.

Initspursuittobea“housebank”foritstargetclienteleofMSMEsandgenerallower/middleincomegroupsinAzerbaijan,ABAhassucces-sivelybroadeneditsrangeofproducts.Itnowoffersvarioustypesofbusinessandpersonal

BusinessDevelopment


22

Key data 2011

Totalassets(EUR) 376.9mGrossloanportfolio(EUR) 294.3mNo.ofloansoutstanding 119,501Portfolio-at-Risk 30daysin% 0.76 %Totalcustomerdeposits(EUR) 144.4mNo.ofdepositaccounts 220,594No.ofstaff 1,344No.ofbranches 30

AccessBank Head Office137AlofsatGuliyevStr.Baku,AZ1000,AzerbaijanPhone:(+99412)493-07-26Fax:(+99412)493-07-96www.accessbank.az

23

Contact

Key data 2011

Totalassets(EUR) 25.4mGrossloanportfolio(EUR) 14.3mNo.ofloansoutstanding 20,883Portfolio-at-Risk 30daysin% 4.43%Totalcustomerdeposits(EUR) 17.8mNo.ofdepositaccounts 71,183No.ofstaff 561No.ofbranches 14

AccésBanque MadagascarImmeubleBirHackeimLotIBG21Ter,AntsahavolaAntananarivo101MadagascarPhone:(+261)202232234Email:[email protected]

AccèsBanque Madagascar

Businessdevelopment

Contact

AccèsBanqueMadagascar(ABM)wasestab-lishedinOctober2006byAccessHoldinginpartnershipwithagroupofinternationalandlocalco-investors.Thebankopeneditsfirstbranchinthecountry’scapitalAntananarivoinFebruary2007andhassincethenbuiltupanetworkof14branchesinthecapitalandothertownsofthecountry.

Withmorethan560employeesandover70,000clients,ABMhasevolvedintoasigni-ficantplayerandaleadingemployerintheMalagasybankingsector.Despiteaclearfocusonthecoretargetgroupofmicro,smallandmedium-sizedenterprises(MSMEs),thebankcatersforabroadvarietyofclientsandaspirestobecomea“housebank”forthelower/middleincomestrataoftheMalagasypopulation.

ABM’sproductrangecomprisesloanstomicroandsmallenterprisesbutincreasinglyalsotomediumentrepreneurs.Bankingservicescom-prisecurrentandsavingsaccountsaswellastermdepositfacilitiesandavarietyofpaymentservices(checksandnationalwiretransferservices).

Overview

Products


24

Capital AntananarivoInhabitants 21.9mArea 587,041km2

GDP per capita (US$) 421Key industries Agriculture andtourism

Antananarivo(11)

AntsirabeBetafoAmbatolampy

Shareholders

16,8%12,0%

13,6%

44,0 %

13,6%

Seamstressfrom Tanzania

Key data 2011


AccessBank Tanzania LtdP.O.Box95068,Dar-es-Salaam,TanzaniaTel:+255-22-2774355Fax:+255-22-2774340Email:[email protected]://www.accessbank.co.tz

AccessBank Tanzania

27

Businessdevelopment

Contact

AccessBankTanzania(ABT)wasestablishedbyAccessHoldingandfourinternationalco-inves-torsasthethirdmemberoftheAccessBanknetworkon21stNovember2007.Thebankoper-atesunderafullcommercialbanklicenseandhasbynowopenedsevenbranchesinthecom-mercialcapitalDaresSalaamanditswiderperimeter.

Sinceopeningitsdoorsinlate2007,ABThasevolvedintooneofthesignificantprovidersofloansandotherfinancialservicestoMSMEsandthelower/middleincomesegmentsinDaresSalaam.ABThasalsoemergedasoneofthequalityleadersintheTanzanianmicrofi-nancesector,witharrearsratesconsistentlybelowmostofitscompetitors.Thebankhasmorethan80,000clientsandisamongthetenlargestemployersintheTanzanianbankingsector.ABTnowplanstoexpanditsgeographi-calfootprinttootherregionsofTanzaniainitslong-termpursuittobecomeoneoftheleadingretailbanksinthecountry.

ABT’sproductportfoliocomprisesmicroandSMEloansonthecreditside.Bankingservicesincludedepositproducts,butalsoaccountproductsincludingcurrentaccounts,savingsaccounts,savingsplanaccountsandstudentaccounts.Avarietyofmoneytransfersystemsarealsooffered.

Overview

Capital DodomaInhabitants 43.2mArea 945,203km2

GDP per capita (US$) 527Key industries Agriculture tourismand mineralexploitation(gold)

DaresSalaam(7)

Dodoma

Shareholders


Products

8,3%10,7%

15,8%

50,7%

14,4%

Key data 2011


AB Microfinance Bank Nigeria

Businessdevelopment

Contact

ComparedtomanyothercountriesinSub-Sa-haranAfrica,Nigeria’sfinancialservicessectorismoredevelopedanddiversified,offeringagoodvarietyofproductsandservicesforcor-porateandhighnetworthclients.Howeveritsmicrofinancesectorisstillataninfantstage,withveryfewoperatorsofsignificantscale.Thisimpedesthedevelopmentofthecountry’smicroandsmallbusinesssectoranditsabilitytogenerateemploymentandincome.ABMicrofinanceBankNigeria(ABN)wasesta-blishedbyAccessHoldingandImpulseMicro-financeFundinMay2008,withthreeothershareholders(aslistedbelow)joiningshortlyafteritsfoundation.Thebankopeneditsdoorstothepublicon10thNovember2008afterseveralmonthsofpreparation.

Injustoverthreeyearsofoperations,ABNhasbuiltupasolidbranchpresenceacrossthegreatermetropolitanareaofLagos,coveringalldistrictsofsignificantmicroenterpriseactivity.ABN’svisionistobecometheleadingmicrofi-nancebankinNigeriaandtosetnewstandardsfortheNigerianmicrofinancesectorintermsofprofessionalism,transparencyandefficiency.Bydeliveringappropriatefinancialservicestothetargetgroup,ABMicrofinanceBankNigeriaseekstocontributetoprivatesectorgrowthandinvestment,thushelpingtocreatenewbusinessandemploymentopportunitiesfortheNigerianpopulation.

Asidefromprovidingbusinessloanstomicroandsmallenterprises,ABNalsocollectsdepositsfromthepublicandprovidescurrentaccountsandabasicrangeofpaymentservices.

AB Microfinance Bank NigeriaIkeja(HeadOffice)0,ObaAkranAvenue,Ikeja,LagosNigeriaTel:[email protected]://www.ab-mfbnigeria.com/

Overview

Products


28

Capital AbujaInhabitants 152.2mArea 923,768km2

GDP per capita (US$) 1,222Key industries Extractiveindustries (oilandnaturalgas)

Lagos(8)

Abuja

Shareholders

12,5%12,5%

15,0%

50,1%

10,0%

AB Microfinance BankNigeria

ClientAccessBank, Liberia

Key data 2011


Monrovia Head Office20thStreet,Sinkor,TubmanBoulevard,Monrovia,LiberiaTel:+231(0)77852135+231(0)76358499www.accessbank.com.lr

AccessBank Liberia

31

Businessdevelopment

Contact

AccessBankLiberia-theMicrofinanceBank(ABL)startedoperationsinJanuary2009withitsheadquartersinthecapitalMonrovia,whichaccountsforaboutathirdofLiberia’stotalpopulationof3.5million.ABLisalicensedandregulatedfully-fledgedcommercialbank,whilstbeingthefirstLiberiabanktofocusspecificallyonthemicroandsmallbusinessclientele.Accesstobankingserviceswasuntilrecently(withthemarketentryofABL)limitedtoasmallnumberofmostlyhigh-value,well-connectedcustomers.AccessBankLiberia,TheMicrofinanceBankwasfoundedbyfourrepu-tableinternationalshareholdersinajointefforttosupporttheLiberianbankingsectoringeneralandthecountry’smicrofinanceindustryinparticular.

ABL’smissionistobecomethebankofchoiceforthelowandmiddleincomestrataoftheLiberianpopulation,andthecountry’sleadingprovideroffinancialservicestomicro,smallandmediumenterprises.Withinjustoverthreeyearsofopera-tions,theBankhassignedupmorethan80,000clients,demonstratingthatitsproductofferingofloansanddepositserviceshashittherightspotinthisstillunderservedmarket.

ABLprovidesmicroandSMEloanstoeligiblebusinessowners.Regardingbankingservicescurrentandsavingsaccountaswellasatermdepositoptionareoffered.AllaccountscanbeheldinLiberianDollarandUSDollar.

Overview

Products

Capital MonroviaInhabitants 3.5mArea 111,369km2

GDP per capita (US$) 247Key industries Agriculture

Shareholders

Monrovia(5)


13,3%17,7%

13,3%

55,7%

Key data 2011

Totalassets(EUR) 15.4mGrossloanportfolio(EUR) 9.6mNo.ofloansoutstanding 4,798Portfolio-at-Risk 30daysin% 1.32%Totalcustomerdeposits(EUR) 450,639No.ofdepositaccounts 402No.ofstaff 237No.ofbranches 4

AccessBank Tajikistan

Businessdevelopment

Contact

Tajikistan’sfinancialsectorisnotyethighlydevelopedbutsincetheendoftheCivilWarin1997,politicalstabilityandforeignaidhaveallowedthecountry‘seconomytogrow.Never-theless,Tajikistan’spercapitaGDPisbyfarthelowestintheCISregion.AccessBankTajikistanisajointventureofAccessHoldingandthreeofitspartnerswithlong-standingexperienceinthesector:theEuropeanBankforReconstructionandDe-velopment(EBRD),theInternationalFinanceCorporation(IFC)andKfWEntwicklungsbank.Thebankwasinauguratedon29March2010andhasitsheadofficeaswellasfourbranchesinthecapitalDushanbe.

AccessBankTajikistan’svisionistobecometheleadingmicrofinancebankinTajikistanandtosetnewstandardsfortheTajikbankingindustryintermsofprofessionalism,transpa-rencyandefficiency.Bydeliveringappropriatefinancialservicestoitstargetgroup,thebankseekstocontributetoprivatesectorgrowthandinvestment,thushelpingtocreatenewbusinessandemploymentopportunitiesfortheTajikpopulation.Inordertofacilitateaccesstofinancealsoinotherpartsofthecountry,AccessBankTajikis-tanaimstodevelopastrongregionalpresenceinthecomingyears.

Operatingunderafullbankinglicense,Access-Bankoffersabroadrangeoffinancialservicestomicro,smallandmedium-sizedenterprises(MSMEs)inTajikistanaswellasthegenerallowerandmiddleincomestrataoftheTajikpopulation.DespiteitscurrentfocusonMSMElending,thebankwillsuccessivelyintroducearangeofotherfinancialproductsincludingagricultural,housingandconsumerloans,aswellasforeignexchangeandotherbankingservicesinthecomingyears.

AccessBank Tajikistan61/1Firdavsistr.Dushanbe,734061RepublicofTajikistanPhone:+992372319824

Overview

Products


32

Capital DushanbeInhabitants 7.6mArea 143,100km2

GDP per capita (US$) 820Key industries Productionofaluminum growingofcotton

Dushanbe(4)

Shareholders

12,0 %

52,0 %

18,0%18,0%

AB Bank Zambia’sFirst Customer

Key data 2011

Totalassets(EUR) 3.9mGrossloanportfolio(EUR) 380,123No.ofloansoutstanding 407Portfolio-at-Risk 30daysin% N/ATotalcustomerdeposits(EUR) 83,821No.ofdepositaccounts 1,433No.ofstaff 84No.ofbranches 1

Stand No. 7393, Ground Floor, ChaindaplaceoffCairoRoad,Lusaka.Monday-Friday08:00-16:00Tel:(+260)211220835/36/38/40Email:[email protected]

AB Bank Zambia

Businessdevelopment

Contact

ABBankZambia(ABZ)openeditsdoorsinOctober2011andistheseventhandcurrentlyyoungestmemberoftheAccessBanknetwork.ItwasfoundedbyAccessHoldingincollabora-tionwithfourofitslongstandingpartners:KfWEntwicklungsbank,theInternationalFinanceCorporation,theDutchdevelopmentfinancein-stitutionFMO,andtheBelgium-basedImpulseMicrofinanceFund.

ABZaimstoevolveintooneoftheleadingpro-vidersoffinancialservicestothistargetgroupinZambiaandtosetindustrystandardsintermsofthespeed,easeandqualityofMSMEbanking.ABZ’sbranchnetworkiscurrentlylimitedtoLusakabutthebankplanstoexpandtootherregionsinthecomingyears.Ithashadagoodstartofoperations.

ABZoffersarangeofloananddepositproductsfocusingonthecoreclienteleofmicro,smallandmedium-sizedenterprisesaswellasthegenerallower-/middleincomegroupsofthecountry.Bankingservicesincludetermdeposit,savingandcurrentaccountsaswellasasavingplanandpaymentservicessuchasasalaryproject,mobilepaymentandmoneytransfersystems.

Overview

Products

Capital LusakaInhabitants 13.5mArea 752,618km2

GDP per capita (US$) 1,253Key industries Agricultureand copperindustry

Lusaka

Shareholders

35


12,5%12,5%

12,5%

51,0%

12,5%

Corporate Social Responsibility in the Holding

Asaninternationallyoperatingbanknetwork,wefeelthatourresponsibilityismanifold.Asaconsequencewehaveovertheyearselaboratedanindividualandcomprehensiveprofileofthisresponsibility.ThisprofilecomprisesallactivitiesandguidelinesinareasinwhichAccessHoldingisdeterminedtotakeonarolethatgoesbeyondcompliancewithlegalobligationsandbasicethicalstandards.

AccessHoldingattributeshighimportancetoconsideringandactingintheinterestofourdifferentstakeholders(suchasclients,commu-nities,shareholders,theenvironment)inordertodobusinessinasustainableandresponsibleway.Weareawarethatweoperateincountrieswhereitcanseemespeciallyimportantthattheprivatesectortakesonitsresponsibilitytocontributetosustainabledevelopment.Ournetworkbanksthereforenotonlyconsidertheirprofitabilityandgrowthbutarecommittedtotheinterestsofthesocietiesandenvironmentstheyareoperatingin.Assuch,ourbanksnotonlystandoutbecauseoftheirmicrofinance-bankingexpertisebutalsobecausetheirbusi-ness modelisbackedbyacorporateculturethathasastrongethicalandmoralbasis.

OperatinginthemicrofinancesectormakesitespeciallyimportantforAccessHoldingtograntthesustainableincorporationofresponsiblepracticesintobusiness.Wearedoingbusinessindevelopingcountriesandtargetsocialgroupsusuallyexcludedfromthetraditionalbankingsystem.Thereforeourengagementisfocusedon:

Our internal guidelinesThecommercializationofmicrofinanceisincreas-inglyaccompaniedbytheriskthatsomeplayersinthemarketareseekingshort-termprofitondispenseofthecustomer.Thelatterismoreandmorethreatenedbyover-indebtednessandotherimmoral/unethicalpractices.ThereforeAccessHoldingisstressingitsdedicationtoresponsiblefinance.

ItisatthecoreofAccessHolding’sCSRphilosophytomakeacontributiontowardsasustainabledevelopmentofthemicrofinance

industryworldwide.Consequentlyprotectingtheclientbylendinginaresponsiblefashionisoneofourkeyprinciples.

Inaddition,itisanintegralpartofAccessHolding’sCSRphilosophytomakeacontributiontowardsasustainabledevelopmentofthemicrofinanceindustryworldwide.Consequentlyprotectingtheclientbylendinginaresponsiblefashionisoneofourkeyprinciples.

Thefollowingguidelineshavebeenformulatedonthisbehalfandareofforemostimportancenotonlyontheholdinglevelbutforeachindividualbank.Inordertoavoidover-indeb-tednessandprotectourclientsweare:

buildinglong-termrelationshipswithour clients;

conductingathoroughandintegral analysisofpaymentcapacitywhichalso includesforexampletherespectoffamily relatedpaymentobligations;

makingsureinstallmentsrepresentonlya limitedcomponentoftheborrower’s monthly‘freecashflow’,

guaranteeingthatreceivingloansisnot conditionalontheclientdepositingmoney inthebank

Responsiblecollectionofoverdue installments

Endorsing the SMART CampaignAccessHoldingisstrivingevernewwaystoemphasizetheimportanceofavoidingover-indebtedness.Assuch,weareaconvincedfollowerandendorseroftheSMARTcampaignwhichissupportedbyallbanksinthenetwork.TheSmartCampaignisaglobalefforttounitemicrofinanceleadersaroundacommongoal:tokeepclientsasthedrivingforceoftheindustry.Acertificationprogramisinprogress.

SmartMicrofinanceencompassesthefollowingcoreClientProtectionPrinciplestohelpmicro-financeinstitutionspracticegoodethicsandsmartbusiness:

Appropriateproductdesignanddelivery Preventionofover-indebtedness Transparency Responsiblepricing

36

Our Philosophy

Responsible Lending/Client Protection


“All clients of AccessBank should bebetter off using the bank’s products than not.”

Fairandrespectfultreatmentofclients Privacyofclientdata Mechanismsforcomplaintresolution

Inordertodemonstratethe(long-term)impor-tanceattributedtoresponsiblelendingandclientprotection,AccessBankinAzerbaijanhasalreadybeenauditedbytheSMARTcommitteewiththereassuringresultofbeingextraordinarilygoodatavoidingover-indebtednesscomparedtoindustrystandards.

AccessHoldingisconvincedthatthekeytoanysuccessfulorganizationismotivatedandsatisfiedemployeesthatstriveforexcellence.Thereforeandtosetstandardsinourcountriesofoperationswithofteninsufficientlegalsafetyfortheemployee,weapplythefollowingHRpoliciesacrossthenetworktosafeguardthewellbeingandsatisfactionofourstaff:

Clearjobdescriptionsandopencommuni- cationchannels

Employee-friendlyworkingconditionsand avarietyofmotivationalschemessuch additionalinsurancepackages,team buildingdays,sportsevents,andothers. Employmentopportunitiesforrecent graduates–givingyoung,inexperienced talentstheopportunitytohaveafull- scalejobentryanddeveloptheirpotential

Highlytransparent,meritandperformance basedinternalpromotionpolicies,with manyverticalandlateraldevelopment opportunitiesinalldepartments,anda relativelyfasttransferofresponsibilities.

Employmentoflong-termstaffwith tailoredcareerdevelopmentthrough classroomtraining,trainingonthejob, andsupportfromcolleagues

Performance-orientedpaypackages Promotionofequalopportunities

LivinguptosocialandenvironmentalstandardsisofhighmoralimportancetoAH.WehavedevelopedourownSocialandEnvironmentalManagementSystem(SEMS)toensuresocialandenvironmentalresponsibilitythroughoutthenetwork.TheSMESisbasedonacoresocialandenvironmentalpolicyandprovidesindividualAccessBankswithasetofcoreproceduresandguidelines.TheseSocialandEnvironmentalPerformanceStandards(SEPS)thatAccessHoldingseekstoimplementinallAccessBanksfollowtheInternationalFinanceCorporation(IFC)’sMicrofinanceExclusionListthatforbidsinvestmentsinpotentiallyhazar-dousprojects.Inaddition,AHfollowstheCDCInvestmentCodethatsetsoutgeneralguidelinesforethicalinvestmentpractices.Itrequiresre-sponsiblebusinessmanagementofenvironmen-tal,socialandgovernance(“ESG”)mattersandalsofeaturesanExclusionList,whichspecifiesbusinessesandactivitiesinwhichCDC(andtherebyAH)willnotinvest.

Indaytodaybusinessoperations,AHiscom-mittedtoaresponsibleuseofofficesuppliesandotherscarceresourcessuchaswaterandenergy.

37

Human Resources

Corporate Social Responsibility in the Holding

EachAccessBankhasitsindividualwayoftranslatingthecorporateprinciples.Allofournetworkbanksstrivetobegoodcorporateciti-zensbygivingbacktothecommunitiestheyareoperatingin.Besidesworkinghardontheirprofitability,thefollowingtwoexamplesfrompracticeshowAB’scommitmenttobeingagoodcorporatecitizen.

ABA: Building inclusive communitiesAccessBankinAzerbaijanplaysanimportantrolenotonlyintheeconomicdevelopmentoflocalcommunitiesacrossthecountry.Italsosupports,sponsorsandencouragesstafftobecomeinvolvedincharitableandcommunityprojectsthatbothbenefitandpromotetheevo-lutionofinclusivelocalcommunities.Examplesofsuchprojectsin2010included:sponsoringtheGirlsLeadingOurWorld(GLOW)summercampforschoolgirlsfromtheregionsofAzer-baijan,withparticipationofanAccessBankfemalemanager;distributionoffoodtoneedyfamiliesfortheholidaysbyBankstaff;regularvisitsbystafftovarioushomesfororphans,disabled,pensionersandveteranstodistributegoods,andprovideentertainmentandcompany;sponsorshipandjudgingoftheAzerbaijaniportionofthe‘WritingOlympics’,aninternatio-nalEnglishlanguagewritingcompetition;sponsorshipofthe‘SeeinginColor’artexhibi-tionandworkshopforyoungAzeriartistsorganizedbytheBritishCouncil;financingandprintingofahandbookfordoctors,caregiversandrelativesofpeoplewithDown’ssyndrome;aswellasmanymore.Besidesfromhavingastrongfocusoncommunitydevelopment,ABAisalsotheonlybankinAzerbaijantosubscribetotheUnitedNationsGlobalCompact.

ABT: Children dental care campaignAccessBankTanzaniasponsoredthelaunchofacampaignfocusingonChildrendentalcare.ItwasheldincapitalDaresSalaamonthegroundsofalocalschool.TheeventwhichwassponsoredbyABTwasattendedbyfiveschools.Itreachedasignificantaudienceof500studentsandtheirteachers.Thecampaignfocusedonconvincingchildrentobrushtheirteethonaregularbasistoavoidallkindsofdentaldiseases.InherspeechMissJaneth,managerforMarketingandPublicRelationsat

ABT,advisedthechildrentotakegoodcareoftheirteethiftheywanttopursueasuccessfulcareerinmarketingorteaching.Mr.Kalabu,thechairmanoftheforumthankedtheABTforitssponsorship.ThecampaignistobecontinuedandABTwillsponsormoresimilarcampaignsacrossdifferentschoolsinTanzania.

ABM: Towards a cleaner environmentAccèsBanqueisveryconsciousaboutitssocialresponsibilityandhasdefinedacorefocusareaforitsengagement.ABMwantstomakeacontributiontoprovidingahealthyandcleanenvironmenttothepopulationoftheislandandthereforeparticipatesinthecleanupoftheareastheyareactivein.AssuchABMhasrecentlydonatedcleansingkitstoapproxi-mately40fokontany(traditionalMalagasyvillages).Eachkitcontainedacombinationofboots,wheelbarrows,bladesandgrates.InthefirstphaseofthisenvironmentaloffenseonlyfokontanyssituatedclosetoanAccèsBanquebranchhavereceivedcleansingkitswhereasanestimatedpopulationof80,000peoplecouldbenefitfromtheproject.From2012on,ABMisgoingtoenlargeitsfocusandwillreachouttoevenmorevillages.Inadditiontothisenviron-mentalinitiativeABMalsoinvestsintheareaofeducation.Assuch,atthebeginningofthelastschoolyear,alargenumberofschoolkitscontainingexercisebookshavebeendistribu-tedtoover40publicprimaryschools.30,000pupilswerereachedbythisinitiative.

38

Communitydevelopment/ CSR on site


ABL: Empowering children in the communityThroughanumberofmeasuresABLstrivestoemphasizethespecialimportanceofchildrentotheircommunities.Onthisbehalf,ABLor-ganizesandsponsorsanumberofeventsthattargetchildrendirectlysuchasthefollowing:

Adrawingcompetitionwasorganizedand carriedoutbyABLstaffatHeadoffice. 15schoolkidscamefrom12different schoolstodrawwhattheythinkabouta bankandexplaintheirdrawings.The winnersgotprizesandwerefeaturedin ABL’S2011Calendar.Allthekidswere givenatouroftheABLfacilitybyourstaff, showingthemhowbankingworks.This wasdonetoeducateLiberiankidsabout theimportanceofbanking.

AFootballTournamentwashostedfor around200schoolkidswhoseschoolsare bankingwithABL.Theeventwascoordi- natedby10ABLstaffthatplayedtheroles ofreferee,linesmenandmatchcommission- ers.Winnersweregivenprizesandwere encouragedtotaketheireducation seriously.ABLaimstodiscouragekidsin thecommunityfromearlyschooldropout.

MotherWleh‘sOrphanageconsistsof46 childrendesperatelyinneedofhelp;it wasvisitedbyABLstaffonChristmas.Kids weregivenChristmaspresentsliketoys andclothes.Theorphanagewasgiven detergentsanddisinfectants,beddings andfoodforthechildren.

39

AccessBank‘s Clients

toaskcustomerstopayinadvancebeforedeliveringthefullorder.Thisinturnlimitedthenumberofpotentialclients.

ThroughafirstloanofUSD800fromAccessBankLiberia,Mr.Wellingtonwasabletopre-financehispurchaseswhichhelpedhimtoincreasehissales.DuetohisincreasingincomeafterthefirstloanandanexcellentrepaymentbehaviorhereceivedarepeatloanofUSD1,400foralongermaturity.Thisenabledhimtobuymoreshovelsandwheelbarrowsforhisworkforcewhichincreasedfrom10to35.HerecentlyopenedathirdproductionpointinSinkor,Mon-rovia,andisabletopurchasehigherquantitiesofcementatalowerprice.Mr.Wellingtonhasalsostartedtoproduceblocksofdifferentdesignstomeettheincreasingcompetitionbyawiderchoiceofproductsandbetterquality.AccessBankLiberia,saysMr.Wellington,hashelpedmetogrowmybusinessandgavemetheconfidencetothinkbigger.

40

1. LiberiaHenry Wellington, Producer of Cement Blocks


AccessHoldinganditsnetworkbanksaregui-dedbyresponsibleandsustainablebusinesspractices.Bybuildingandmaintainingacloserelationtotheirclientele,AccessBanksareinthepositiontotailortheirproductsandservicestotheneedsofthetargetgroup.Thefollowingselectedclientstoriesprovideagoodimpressionofthepositiveimpactsofourbusinessapproachonthosemicroandsmallentrepreneursthatweserve.

HenryWellington,34yearsold,startedtheproductionofcement12yearsagoafterhisgrandfatherhadpassedontohimtheexperi-enceandpassionforthisprofession.TheincomegeneratedfromthebusinessallowedhimtofinancehisstudiesinAccountingattheUniversityofLiberia.However,Mr.Wellingtoncouldhardlymeetthedemandofhisgrowingcustomersontimebecauseofhisfinancialcon-straintsthatlimitedthepurchaseofrequiredcement.Asaconsequencehewasoftenforced

AgnesJacobMollelisahard-workingbusinesswomangrowingmushroomsandraisingpigsinherpremisesinMbesibeach,aresidentialareawithemergingsmallbusinessactivityaround15kmoutsideDaresSalaam.A56-yearoldwidowofMasaioriginwithtwochildrenlivingabroad,AgneshasjustreceivedhersecondloanfromAccessBank’sKijtonyamabranch,whichhasexcellenttransportlinkstothenort-hernperipheryofDaresSalaam.BothloansamountedtoTZS1.6million(around900€)each;thefirstwasusedtoconstructmoresha-desforherpigs,whereasthesecondservestopurchasealargernumberofpigsandaddmoreshelvesforhermushrooms,whichAgnessellstosupermarketsandanumberofindividualcustomers.

IntheNorthernAzerbaijantownofShabran,IlhalmaAlyevaworkswithsevenotherwomenfromhercommunitytomakecarpetsinthetra-ditional“Shirvan”style.Ittakesthreetofourwomentwomonthstoproducethehighqualitycarpet.Whilethishighleveloflaborensuresanexcellentquality,italsomeansthatanexpen-siveproductisbeingmade.Findingbuyerscantakesometime,leavingMs.Aliyevawithlittleincomesheneedstopurchasethematerialsforhernextcarpet.WithloansofAccessBank,Ms.Aliyevahasbeenabletopurchasetheneededmaterialsandalsorepairherloom.Thishasledtoanincreaseinsalaryforthewomenworkingforher,thesepositionsbeingsomeoftheonlypositionsavailabletowomeninhertown.

41

2. Tanzania Agnes Jacob Mollel, Pig Farmer

3. AzerbaijanIlhalma Aliyeva,Carpet Maker

AccessBank Customers

43

Design:MarthaWilleyPhoto archive:StephanieZickertEditorial content:LauraSymma

TheManagementBoardofAccessMicrofinanceHoldingAGisresponsibleforthecontentspresentedinthisdocument.

AccessHolding Management Report 2011

AccessMicrofinanceHoldingAG(AccessHolding),aJointStockCompanyinaccordancewiththeGermanJointStockCompanyAct,basedinBerlin,Germany,isacommercialmicrofinanceholdingcompany.Itsobjectiveistobuildupanetworkofmicrofinance-orientedbanksandtodevelopthesethroughacombinationofequityfinance,holdingservices,andmanagementassistancerenderedbyoneofitsshareholdersandtechnicalpartnerLFSFinancialSystemsGmbH(LFS),Berlin,Germany.AccessHoldingholdsacontrollingstakeinfivefinancialinstitutions,AccessBankTanzania(ABT),AccessBankLiberia(ABL),ABMicrofinanceBankNigeria(ABN),AccessBankTajikistan(ABTJ)andABBankZambia(ABZ).TogetherwithAccessHolding,theseentitiesformagroup,forwhichconsolidatedfinancialstatementsareprepared.TheinvesteecompanyABTisconsolidatedasof31.October2011,whichisthedateonwhichAccessHolding’sownershipstakeinthecompanyincreasedtoabove50percent.

Inaddition,AccessHoldingholdsminoritystakesintwobanks–AccessBankAzerbaijan(ABA)andAccèsBanqueMadagascar(ABM).Theseinstitutionsareclassifiedasassociates,i.e.entitiesoverwhichAccessHoldinghassignificantinfluencebutnocontrol.Accordinglytheseentitiesarenotfullyconsolidatedinthefinancialstatementsbutvaluedatequity(section5ofthisreport).ItisexpectedthatAccessHoldingwillacquireamajoritystakeinAzerbaijanandMadagascarduring2012.Allnetworkbanks,regardlessoftheirstatusassubsidiariesorassociates,areincludedinthegeneralbusinessreportingasprovidedinsections2-4,6and7ofthisManagementReport.ThispartofthereportingdoesnotincludetheassetsandliabilitiesofAccessHoldingitself,nordoesitmakead-justmentsforothershareholdersoftherespectivenetworkbanks.ThesesectionsarethereforenottobereadasconsolidatedfinancialstatementsbutastheaggregatedassetsandliabilitiesoftheAccessHoldingnetworkbanks.

Asinpreviousyears,significantprogresswasmadeinthedevelopmentofthenetworkduring2011.ABZopeneditsdoorstothepublicinOctober,becomingtheseventhAccessBank.By31December2011,totalassetsoftheAccessBanknetworkgrewtoaboutEUR480million(2010:EUR408million);theloanportfolioincreasedtoEUR352million(2010:EUR289million)anddepositstoEUR188million(2010:EUR146million).Creditqualityremainedexcellent,withanetwork-widePortfolio-at-Riskgreater30days(PAR 30)of1%andtotalwrite-offsbelow1%ofthenetwork’syear-endgrossloanportfolio.

Threeofthesevenbanks(ABA,ABN,andABM)closedtheyearwithaprofit.Fuelledmainlybyconti-nuedexcellentperformancesofABAandABN,theaverageweightedreturnonequityforthenetworkbankswas17.9%(2010:33.1%).AccessHoldingposteditsfourthprofitableyearinarow.

Groupintegrationwasstrengthenedthroughstaffexchangeprogrammesbetweennetworkbanksandintensiveknowledgeexchangebetweennetworkbankmanagers(mainlyviacentralworkshopsinareassuchasCredit,Retail,Accounting,InternalAudit,ITorHumanResources).Thebuild-upofheadquarterfunctionscontinuedincooperationwithAccessHolding’stechnicalpartner,LFSFinancialSystems.BothLFSandAccessHoldingmovedintonew,significantlylargerofficepremises,thuscreatingsufficientphysicalcapacityforfurthergrowth.

Morethanthreeyearshavepassedsincetheonsetofthe2008financialcrisisandhopeswerehighthat2011wouldbringaneconomicupswing.However,2011wascharacterizedbytheEurozonedebtcrisis,increasingfoodandoilpricesanddevastatingnaturaldisasterssuchastheTsunamithathitJapan.

However,forAccessHoldinganditsnetworkbanksthesituationoftheworldeconomyhadonlylimitedimplication,asmostoperatingcountriesarelessintegratedintotheglobalfinancialmarkets.Secondaryeffectsfromglobalcrises(e.g.viareducedfundingsupplyfrominternationalfinancialinstitutions)cannotberuledout,butofgreaterimportanceisthespecificeconomicandpoliticalsituationinthecountriesofoperation,whichwillbedescribedbelow.

44

1 Introduction and summary

2 Political andeconomic environ-ment


Whilemicrofinancemarketsinsomecountriesorsub-regions(e.g.inIndia)havereachedorapproachedsaturationafteryearsofstronggrowth,globalmarketcoveragelevelsremainstilllowgiventhenumberofcountrieswhichareyetlackinganadequatesupplyofsimpleandaffordableaccesstofinancialproducts.

Comparedtoconventionalcommercialbanks,thebusinessofAccessHolding’snetworkbanksisconsideredtobelessvulnerabletoexogenousshocks.Thispremiseisbasedonthewidelyacceptednotionthatmicrofinancelendersarecomparativelyresilienttomacroeconomiceffects,duetotheirhighlyatomisedloanportfoliosandthemicroenterpriseclientele’spredominantfocusonsellingbasicneedsitemsonthedomesticmarket.1AccessHolding’snetworkbanksareusingarigorouson-siteduediligencemethodologytoassesseachborrowerindividually,andtailortheirloansizesandmaturitiesbasedonthisassessment.Inthisway,theyhavebeenabletosustainexcellentassetquality.Moreover,continuedsupportisensuredthroughverystrongshareholdersofAccessHoldingandthenetwork,whocontributetoaconductiveenvironmentforgrowthandanoverallfavourabledevelopment.

Nevertheless,nationaleconomicorpoliticaleventsintherespectivecountriesdohaveacertainimpactonournetworkbanks,especiallythosewithalargershareofSME(SmallandMedium-sizedEnterprises)clients,whichtendtohaveahigherexposuretoexternalshocks.Economicrecessionorpoliticaluncertaintymaydampenloandemand,reducethesupplyof(and/orincreasethecostof )refinancingfunds,andincreasecompetitionasupmarketbanksaremovingdownmarkettoseeknewbusiness.Theextentofsuchimpactsvariesobviouslyfromcountrytocountry,andcanthushardlybegeneralisedwithoutover-simplification.Wewillthusdescribetheminmoredetailintheindividualcountrysectionsbelow.

Theexistingpoliticalorderremainedstablethrough2011,withnonationalelectionsorchallenges.Thesameisanticipatedfor2012andbeyond,withthenextpresidentialelectionsetfor2013whichPresidentIlhamAliyevisgenerallyexpectedtocontestandwin.InDecember,TurkeyandAzerbaijansignedanagreementforconstructionofa2,000kmgaspipelinetotransportAzerbaijan’snaturalgastoEuropeanmarkets.Thefirstdeliveryofgasisnotexpecteduntil2017,butthisagreementsupportsthegeopoliticalimportanceandeconomicstabilityofAzerbaijanforatleastthenextdecadewhileoilproductionbeginstotaperoff.Thiscontractionwasalreadyfeltin2011,withan11%declineinoilproduction,dampeningGDPgrowthto0.1%for2011accordingtotheStateStatisticsCommittee,comparedto5%in2010.Non-oilGDPpostedahealthygrowthof9.4%in2011,with5.8%growthpostedintheagriculturalsectorthankstogoodharvestsin2011,followingweakharvestsin2010–thisimpactedpositivelyonmostruralbusinesses.However,nominalGDPgrewbyamuchstronger20.4%,increasingtoAZN50.1billion(USD63.7billion)fromAZN41.6billion(USD52.9billion)in2010,boostedbyrisingglobaloilprices,thatmorethancompensatedforthereductioninoilproduction.Thishelpedresultinanincreaseinstatebudgetrevenuesof37.7%toAZN15.7billion(USD20.0billion),comparedtoAZN11.4billion(USD14.5billion)in2010,and30.8%inexpenditurestoAZN15.4billion(USD19.6billion)in2011,comparedtoAZN11.8billion(USD15.0billion)in2010.InflationedgedupslightlywithCPIofficiallyreportedat7.9%,comparedwith5.7%in2010and1.5%in2009.

ThehigheroilpricesfedthroughtoanincreaseinthetradesurplustoUSD16.8billion(USD14.8billionin2010)onexportsofUSD26.6billionandimportsofUSD9.8billion.ThissupportedthestabilityofthecurrencyandtheAZNremainedvirtuallyunchangedagainstthelocalreferencecurrency,theUSD,atAZN0.7865versusAZN0.7979at2010-end.Energyexportsshouldensurecontinuedeconomicstabilityinthemedium-term,buttheinherentvolatilityofenergypricesandslowingoilproductionbothreinforcetheneedforeconomicdiversification.Otherconcernsremaincontrolofinflationarypressures,improvingbusinessenvironmentandspreadingthebenefitsofoilincome.

Azerbaijan

45

1Seeexplanationsinchapter8(Risk).ForempiricalunderpinningseeGonzales(2007),‘ResilienceofMicrofinanceInstitutionstoNationalMacroeco-nomicEvents:AnEconometricAnalysisofMFIassetquality’,MixDiscussionPaperNo.1,availableviawww.themix.org


Thedevelopmentofthebankingsectorreflectedthatoftheeconomy,withsomebanksfaringbetterthanothers.Totalbankingassetsincreasedby7.3%(toAZN14.3billionfromAZN13.3billion)in2011–whilethetotalloanportfolioincreasedby5%(toAZN9.0billionfromAZN8.6billion)–laggingbehindthe2010growthfigureof14%.Depositsincreasedbyafasterrateof29%toAZN6.7billion.AsaproportionofGDP,totalbankingassetsdecreasedto28%(32%in2010),thetotalloanportfolioto18%(21%in2010),anddepositsincreasedto13%(12%in2010),representingrelativelylowlevelsofbankingpenetration.Themajoritystate-ownedInternationalBankofAzerbaijan,continuestodominate,butsawa9.3%decreaseinitstotalassetsanda15%dropinitscreditport-folioin2011,reducingitsmarket-shareoftotalBankingAssetsto35%andofLoanPortfolioto35%(42%and43%respectivelyat2010-end)

In2011thebankingsectorcontinuedtobenefitfromthethree-yeartaxexemptiononcapitalisedprofit,introducedfrom1January2009tohelpstrengthenthesector.WhiletheCentralBankhasbeenadvo-catingconsolidationinthebankingsectorformanyyears,littleconsolidationhasoccurredandthenumberofbanksat2011-endstoodat44(comparedwith45at2010-end).

AccessBankcontinuedtooutperformthesector,butlesssoin2011thaninyearspastastheeconomicslowdownimpactedonthelowerrungsoftheeconomy.Intermsoftotalbankingassets,AccessBank’smarketsharedecreasedto2.7%from2.8%at2010-endwhiledroppingtoeighthpositionfromseventhoutof44banksinthemarket.Atthesametime,theBank’smarketshareintermsoftotalloanportfolioincreasedfrom3.0%to3.3%whiledroppingtoseventhpositionfromsixth.InagriculturallendingAccessBankremainedthemarketleaderwith30,000clientsand7%shareofthetotalagriculturalport-folioofAzerbaijan’sbankingsector.Apartfromthebanks,approximately27non-bankcreditorganiza-tionsareengagedinmicrofinance.TheAzerbaijanMicrofinanceAssociation(AMFA)collectsdatafor30institutionsinvolvedinmicrofinance(consistingof18ofthesenon-bankfinancialinstitutionsand12banks,includingAccessBank).ThemicroloanportfoliooftheseinstitutionsstoodatUSD646millionat2011-end,givingAccessBank28%marketshare(36%at2010-end),makingAccessBankbyfartheleadingmicrofinanceinstitutioninAzerbaijan,especiallywithsmallfarmerhouseholds.

Somechangesinpoliticalcircumstancescanbereported.Attheendof2011,anewprimeministerwaschosenaspartoftheroadmaptowardspoliticalstabilization.ThisroadmapalsoforeseesthereturnoftheformerPresidentMarcRavalomanana.AnattempttoreturnfromhisexileinSouthAfricawasre-centlystoppedinthelastminutebytheauthorities.InthisrespecttheSADC(SouthernArfricanDeve-lopmentCommunity)isnowdemandingtherevisionofamnestyrights.Ravalomanawassentencedtoprisonandforcedlabourinabsence.Signsofrisingdissatisfactionofthepopulationwiththepoliticalandeconomicsituationmanifestthemselvesindemonstrations,strikesofcourtsandstudents,andariseincriminality.

OfficialnumberssuggestanincreaseofMadagascar’sGDPby0.6%in2011.Theincreaseismainlydrivenbytheminingsectorwhilekeyindustriessuchastextileandagriculturestagnateordeteriorate.Theperceptionbythepopulationisthattheeconomycontractedin2011.Officialinflationin2011waspublishedat7%,whileactualinflationisestimatedcloserto10%.Theriskofafurtherriseininflationisdrivenbyenergyandfoodprices.Energypricesforindustrialclientswillrisein2012,whilethedis-cussiononthestate-subsidyoffuelpricescontinues.Therealpriceisestimated10%abovethepricelimitset,andtheenergysectorcomplainsofnon-ordelayedpaymentsofagreedsubsidies.

Despitethedifficultpoliticalandeconomicsituation,Madagascarisimprovingitsbusinessenvironment.The2012IndexofeconomicfreedomscoresMadagascarasthe75thfreestcountryinthe2012Indexemphasisingimprovementsinbusinessfreedomandthemanagementofgovernmentspending.Madagas-carisranked6thoutof46countriesintheSub-SaharanAfricaregion,anditsoverallscoreisabovetheworldaverage.2

46

Azerbaijan (con’t.)

Madagascar


2http://www.heritage.org/index/country/madagascar

Thebankingsector’stotalportfoliooutstandingincreasedbyonly3.3%(Jan-Nov2011)toMGA2.0trillion(EUR687million),whiledelinquenciesincreasedfrom12.7%to13.6%inthesameperiod.Theoveralldepositandliquiditypositionofthebankingsectorincreased,causingtreasuryshort-termsratestodecrease,whilelong-termratesremainstableorincreaseslightly.Totalassetsofthemicrofi-nancesectorhaveincreasedbyMGA52.9billion(EUR18.0million),anincreaseof28.8%throughouttheyeartostandatMGA236.2billion(EUR80.2million)attheendofSeptember2011.ThegrossloanportfolioincreasedtoMGA146.4billion(EUR48.7million)inSeptember,a31.3%increaseascompa-redto2010.Portfolioqualityhasslightlyrecoveredduetointenserecoverymeasures.3

Inthefourthquarterof2011,theBankofTanzania(BoT)projecteda6%GDPgrowthfor2011.InthemostrecentMonetaryPolicyStatement(June2011)oftheBoT,theforecastfor2012hasbeenraisedto7.2%.AnalystshoweverpredictthatmonetarypolicytighteningalongwithweakexternaldemandwillslowdowntherealgrowthoftheeconomywithaforecastedrealGDPgrowthdownto2-3%YoYbytheendof20124.

Inflationhasreachedunusuallyhighlevelsin2011,afterseveralyearsofrelativepricestability.Thecontinuousincreasesincethebeginningoftheyearendedupat19.8%inDecembermainlyduetosignificantincreasesinfoodpricesandenergy.AnalystsexpectTanzania‘sinflationratetostabilizeorincreaseslightlyfollowinganelectricitytariffincreaseinthefirstquarterof2012beforeitstartsgoingdown.

Followingtheinflationtrend,theTanzanianShilling(TZS)depreciatedagainsttheUSDollar(USD)andagainsttheEuro(EUR)untilmid-November.TheTZS/USDrate,whichwas1,643asattheendofSep-tember,exceeded1,850inOctoberbeforereturningtoalevelof1,550-1,600.TheTZS/EURrate,whichwas2,215asattheendofSeptember,camecloseto2,500inOctoberbeforereturningtopreviouslevels(around2,000-2,050)attheendoftheyear.

Thebankingsectorcontinuedtogrowduringtheyear2011.Thetotalnumberofbanksincreasedto45from42in2011,whilethenumberofbranchesincreasedto498from464.Threenewbanks,namelyAdvansBank(T)Ltd,EFCTanzaniaM.F.CLtdandFirstNationalBank(T)Ltd,startedoperations.EquityBank(T)Ltd,CovenantBankforwomenandAmanaBankLtdweregrantedprovisionalbankinglicenses.GeneralcompetitionespeciallywithintheSMEsectorisgettingstiffer,althoughonlyoneofthemarketentrants(Advans)hasabusinessmodelthatisbroadlycomparabletoAccessBank’s.

AccordingtotheTanzaniaBankingSurvey2011,AccessBankwaslisted12thintermsofmarketshare(1.9%).

TheaforementionedBoTinterventioninmid-OctobertostopthedepreciationoftheShillingandreduceliquidityinthemarketprovokedadramaticincreaseininter-bankovernightinterestratesfrom8%on30Septemberupto36%inthemiddleofDecember 5.Thefinaldaysoftheyearhaveseenaslightcoolingdownoftheinterbankmoneymarket,withratesfallingto33%,atrendwhichcontinuedinearly2012.Attheendoftheyear,devastatingfloodshitthepopulationofDaresSalaam.AccordingtoTMA(Tanza-niaMeteorologicalAgency),theseweretheheaviestrainsTanzaniahasexperiencedsinceindependencein1961.Hundredsofpeoplelivinginthecity‘svalleyshavebeenlefthomeless.ThishasalsoadverselyeffectedloandisbursementsandlendingarrearsinDecember(seeparagraphonbusinessdevelopmentbelow).

ThepoliticalsituationwithinTanzaniaremainsratherstable.Despitesomesignsofpublicdissatisfactionoverthedisputedoutcomeofthe2010elections,therehavebeennosignificantprotests(letalonegene-ralstrikes)thatwouldhaveunderminedthere-electedgovernment.

FreedomhouseratesTanzaniaaspartlyfreein2011whereasthedemocracyindexonlyplacesit90thoutof163countries,classifyingitasahybridregime.

Tanzania

47

3Allinformationoneconomicdevelopment,bankingandmicrofinancesectortakenfromCentralBank4EconomicinformationusedinthissectionistakenfromBankofTanzania(BoT)5Seedailymoneymarketratesatwww.bot-tz.org


Nigeriahaswitnessedatumultuousyear2011.Thepresidentialelectionfinallytookplaceon16April,2011havingbeenpostponedfrom9April.TheelectionfollowedacontroversyastowhetheraMuslimorChristiancandidateshouldbeallowedtobecomepresidentgiventhetraditioninNigeriatorotatethetopofficebetweenthetworeligions.GoodluckJonathan(aChristian)wasdeclarednewpresidenton19April.FollowingtheelectionwidespreadviolencetookplaceintheNorthern,Muslim-dominatedpartofthecountry.

Inthecourseoftheyear,Nigeriawasshakenbyterroristmotivatedviolence.AmongothersasuicidebombingattackonUNheadquartersinAbujakilled23people.RadicalIslamistgroupBokoHaramclaimedresponsibility.Followingthebombing,atleast63peoplearekilledinbombandgunattacksinthenorth-easterntownofDamaturu.Nearly70peoplearekilledindaysoffightingbetweensecurityforcesandBokoHarammilitantsinnorth-easternstatesofYobeandBorno.ViolencereacheditspeakonChristmasDaywhenabombattackkilledabout40people.PresidentJonathanhadtodeclarethestateofemergencytocontainviolencebyBokoHaram.

Nigeria’sNationalBureauofStatistics(NBS)6hasannouncedthatinflationhasdeclinedto10.3%y/yinDecember,from10.5%y/yinNovember-October.Thistranslatesintoanannualinflationrateof10.9%y/yin2011,havingdeclinedfrom13.8%y/yin2010.OnanaggregatebasistheeconomywhenmeasuredbytheRealGrossDomesticProduct(GDP),grewby7.68percentinthefourthquarterof2011asagainst8.60percentinthecorrespondingquarterof2010.Ontheexchangeratemarket,theNairaappreciatedagainsttheEuro,afterapeakattheendofOctoberof223NGN/EUR.Itclosedatarateof206.5NGN/EURattheendofDecember.TheexchangeratetowardstheUSDwasoscillatingaround157.5butdepreciatedinDecemberandwasquotedat159.7NGN/EURattheendofthemonth.Attheendofthefourthquarter2011theNIBORratesstoodataround17%andwerethereby30%higherthanattheendofthethirdquarter2011.ItwasthehighestNIBOR(NigeriaInterbankOfferedRate)ratesintheyears2010and2011.Asforthegeneralbusinessclimate,thingsarerelativelystable.WorldBankranksNigeria133thcountryoutof183foreaseofdoingbusiness,samerankasin2010.7

InJune2011theCentralBankofNigeria(CBN)officiallyreleaseditsnewMicrofinancePolicybutnewguidelineswithdetailsarenotyetavailable.Underthenewframework,microfinancebankswouldnowoperateinthreecategories,whichincludeunit,stateandnationalmicrofinancebanks.Aunitmicrofinancebankisauthorizedtooperateinonelocationwithoutbranches/cashcentreandisrequiredtohaveaminimumpaidupcapitalofNGN20m(EUR90,000).ThestatemicrofinancebankisauthorizedtooperateinonestateortheFederalCapitalTerritory(FCT).ItisrequiredtohaveaminimumpaidupcapitalofNGN100m(EUR450,000)andisallowedtoopenbrancheswithinthesamestateortheFCT,subjecttopriorwrittenapprovalbytheCBNforeachnewbranch.Thenationalmicro-financebankisauthorizedtooperateinmorethanonestate,includingtheFCT.ItisrequiredtohaveaminimumpaidupcapitalofNGN2bn(EUR9m)andisallowedtoopenbranchesinallstatesofthefederationandtheFCT,subjecttopriorwrittenapprovalbytheCBN.CurrentlynoMFIisoperatingonanationallevel.

TheoverallbusinessenvironmentinLiberiadevelopedrelativelystableduringtheyear2011.Assuch,allmacro-economicindicatorshaveremainedrathercontinuous.RealGDPgrowthwasestimatedat6.9%in2011comparedto5.1%in20108.Theinflationratehasremainedinsingledigit,averaging8.5percentatendDecember,2011,comparedwith7.5atend-December,2010buthascontinueditsrise(9%attheendofSeptemberagainst7.9%inJune2011).TheUSDappreciatedslightlyto73/76LD/USD(73averageinthelastquarter).

Thecountry’seconomyisstillenormouslydependantonforeignaid:TheAfricanDevelopmentBankap-provedagrantofUSD48millionin2011tofinanceeconomicgovernanceandcompetitivenesssupport.Rebuildinginfrastructureandraisingincomeswilldependongenerousfinancialandtechnicalassistancefromdonorcountriesandforeigninvestmentinkeysectors,suchasinfrastructureandpowergeneration.

48

Nigeria

Liberia


6AllinformationusedinthissectionistakenfromNBS(NationalBureauofStatistics)7http://www.doingbusiness.org/data/exploreeconomies/nigeria/8AlldatausedinthissectionistakenfromCentralBankLiberia(CBL)’sAnnualReport2011

AccordingtoCentralBankinformation,thebankingsectorrecordedrobustgrowthin2011,continuingthepositivetrendfrom2010.Totalassetsroseby31.3percentin2011,comparedwith2010.Theliquiditypositionisalsostrong,standingat44.0percentatend-December2011,29.0percentagepointsabovetheminimumrequirementof15.0percent.

Sectorsoftheeconomythatrequirelonggestationperiodsandcarryhigherinvestmentrisks,suchasagriculture,havenotbeenadequatelyservedbycommercialbanks.In2011,only3.3percentoftotalbankcreditwenttoagriculture,whichaccountedfor41.3percentofGDP.

Thenumberofmajormicrofinanceinstitutions(MFIs)operatinginLiberiaincreasedto8,from7in2010,withaloanportfolioofUSD9.9millionandaclientbaseof51,683atend-September2011.Duringthesameperiodin2010thenumberofclientsstoodat53,556.Thisrepresentsa3.5percentdeclineandcanbeexplainedbywrite-offsassociatedwithnonperformingclients.Accordingtothelatestnumbersavailable,allgrowthinthemicrofinancesectorcomesfromtheportfoliogrowthofABL.Thebankhasbeengainingmarketshare(52.6%intermsofamount)andhasrecapturedthegroundlostinQ42010andQ12011.

Ingeneral,allactivityinthecountrywasstronglyimpactedbythepresidentialelectionsinthefinalquarterof2011.Therun-offelectionswereheldatthebeginningofNovember.TheinaugurationceremoniestookplaceinJanuaryandthenewgovernmentisnominatedprogressively.TheNEC(LiberiaNationalElectionsCommission)declaredincumbentPresidentEllenJohnsonSirleafthewinneroftherun-offon15November2011with90.7%ofthevote.

AlthoughtheoverallpoliticalenvironmentinLiberiahasbeenrelativelystableduring2011,theyearwasmarkedbyconcernsoverpotentialspillovereffectsfromtherecentcivilwarandongoingpoliticalcrisisinneighbouringIvoryCoast.Reportsduring2011indicatedthatrefugeecampsinLiberiasufferedshortagesoffoodandmedicalsuppliesduringtheyearaslargenumbersofrefugeesfromIvoryCoastcrossedtheborder.AresurgeofconflictorviolenceintheneighbouringcountrymighttriggernewrefugeeinflowswithpotentiallydestabilisingeffectsonLiberia.9

Forthefirstninemonthsof2011,theinflationratestoodat9.0%whichisanincreaseofmorethan2.3%comparedtothesameperiodinthepreviousyear.ThevolumeoftheGDPfortheninemonthsofthecurrentyearwasTJS20bn(USD4.2bn);itsrealgrowthhasreached7.5%.GDPpercapitaincreasedconsequentlyandreachedUSD758attheendofSeptember2011.10

FromJanuarythroughSeptember2011,theexchangerateoftheTajikSomonihadtendedtodecrease.AgainsttheUSDthenationalcurrencydevaluatedby6.7%,againsttheEURby9.4%andagainsttheRUBby1.8%.Reasonforthecontinuingdevaluationistheincreaseddemandforforeigncurrencyinthemarket(doubledinthethirdquarter)incombinationwithrisingpricesintheworldcommoditymarkets.Inordertostabilizethenationalcurrency,NBT(NationalBankTajikistan)hasmademarketinterventionsworthUSD48.3mduringthefirstninemonthsoftheyear.DuringthelastquartertheNBTrefinancingratehaschangedtwice–on14October2011itincreasedfrom9%to10%andon14December2011itdecreasedfrom10%to9.8%.

TotalassetsoftheTajikbankingsystemamountedtoTJS9.1billion(~EUR1.5billion)whichisanincreaseofTJS2.3billion(~EUR373million),ariseof33.7%comparedtotheendof2010.

ThebalanceofthecreditportfolioofthebankingsystemforthisperiodtotaledTJS3.9billion(~EUR633million)whichincomparisontotheendofpreviousyearincreasedbyTJS0.6billion(~EUR97million)or18.2%.

Tajikistan

49

9InformationtakenfromcountryinformationprovidedbyUNHCR10AllinformationinthissectionistakenfromNationalBankTajikistan(NBT)


Asof1October2011therewere15banksinTajikistan:onestatebank,ninejoint-stockcommercialbanksandfiveforeignbanks(plusone)–comprisingatotalof272bankbranches(plus18),2non-bankcreditinstitutionsand122micro-financinginstitutions(minusone)workinginthecountry.InearlyDecemberTojiksodirotbankpurchased100%ofthesharesofTajikistanDevelopmentBank(BonkiRushdiTojikiston)andconverteditintoanaffiliate.TheBankofPakistaniscurrentlypreparingthelaunchofadaughtercompanyinTajikistan.On26January2012anewchairmanandvicechairmanoftheNBTwereappointed.

On26DecembertheredactionoftheLawonBankswassignedoffbythepresidentandwasofficiallypublishedon4January2012.ThemainchangeaffectingAccessBankTajikistanistheabolishmentofallpreviousrequirementsfornewbanksforobtainingadepositlicense,i.e.thebankcannowapplyforadepositlicenseforphysicalpersonsandstartattractingdeposits.

ThemicrofinancesectorinTajikistancontinuestogrow.DuringthethirdquarterABTJhadovertakenthreeMFIs(Khumo,OxusandFinca)asperoutstandingloanportfolioandcameveryclosetothesecondlargestMFIArvand.ABTJ’sshareintheDushanbedisbursementshasincreasedfrom3%byendofJuneto3.4%byendofSeptember2011.ABTJ’smaincompetitorintheMicrosegment,IMONInt’l,undertakesseriouseffortstoconvertintoafullyfledgedbank.InearlySeptemberonenewbank(KontBankInvestment)wasestablishedthroughtransformationofanexistingnon-bankFIandisexpectedtostartoperations,soon.Mainfocusofthenewbankwillbefinancingofinvestmentprojects,sonooverlapwithABTJ’stargetgroupshouldarise.

Despitedecreasingcopperprices(whichisamajorsourceofrevenue)andsomeuncertaintyaftertheelectionswhichwereheldinSeptember,therealeconomicgrowthrateisstillmaintainedataround7%for2011.Inflationratesstabilizedbetween8.5%and9%attheendof2011andareinlinewitheffortstoholdthoseinsingledigits.

Pressureremainshighforfinancialinstitutionstoreduceinterestrates.Inthisrespect,statutoryreser-verequirementsandcorporatetaxrateswerereducedtosupportthis.

YieldsonT-Billsfor91and182daysweresetat6.4%and9.4%respectivelybytheendofDecember,adecreaseof150basispointscomparedtothepreviousquarter.ThelocalcurrencyKwacha(ZMK)wasratherstableagainsttheEuroandsawfluctuationsbetween6.590and6.950(4.850and5.100againsttheUSD)duringthefourthquarterof2011.

ThenewGovernoroftheBankofZambiatookofficeattheendoftheyearafterthepredecessorhadtoleaveofficerightaftertheelectionsinSeptember.

TheWorldBankpredictsthatZambia‘seconomywillbeamongthefastestgrowingeconomiesinSub-SaharanAfrica(SSA)inthe2011-2013periodduetothesplendidperformanceinmining,agricultureandservicesectors.Zambia’soverallDoingBusiness2011(DB2011)rankingis76,recordingan8-pointincreasefromlastyear.DB2011reportedthatZambiaeasedbusinessstart-upbyeliminatingtheminimumcapitalrequirement.

Theagriculturalsectorgrewbyapproximately11%in201111.

PresidentialelectionswereheldinSeptember2011.MichaelSata(PatrioticFront)wasdeclarednewpresident,defeatingincumbentRupiahBanda(MovementforMulti-PartyDemocracy)whosepartyhadbeentherulingpowerfor20years.Satawasswornintoofficethesameday.

50

Tajikistan (con’t.)

Zambia


11AccordingtoZNFU(ZambianNationalFramersUnion)information

Thepost-electionperiodwasmarkedbyreview/reversalof(politicallymotivated)decisionstakenbytheformergovernmentduringthecourseofthepastyear(possessionofFinanceBankZambiaandresale,privatizationofZamteltoaLibyaninvestmentcompany)andchangesofsometoppositions/boardsofavarietyofinstitutions(e.g.BankofZambia,ZambiaRevenueAuthority).

ThetwographsbelowshowthedevelopmentofthemostimportantbalancesheetitemsoftheaggregateAccessBanknetworkbetween31December2010and31December2011,fortheassetandliabilitysiderespectively.12

Ascanbeseenfromthefirstchart,totalassetsmanagedbytheAccessBanksincreasedrobustly(by17.6%)duringtheyear,fromEUR407.9milliontoEUR479.8million.Thegrowthwasledbytheloanportfolio,whichgrewby21.0%fromEUR289.4milliontoEUR351.6million.Otherassets(includingliquidassets,fixedassets,intangibleandmiscellaneousassets)increasedbyalesserrate,fromEUR118.5milliontoEUR128.2million(+8.1%).

Thebankingnetwork’slendingbookcontinuestobedominatedbythetwocorelendingproducts,i.e.microandSMEloans.In2011,microloansincreasedby21%fromEUR156.2milliontoEUR182.8millionandremainthemostsignificantbalancesheetitem(52%ofthegrossloanportfolio).SMEloansgrewfromEUR111.8milliontoEUR137.6million(+23%)andarenowaccountingfor39%oftotalloanex-posures.Thecategoryof‘otherloans’(whichcontainsretail,consumerandstaffloans)registeredthestrongestrelativegrowth(+45%)butremainssignificantlysmallerthanthebusinessloanproducts,atEUR31.2million(9%ofgrossloansand7%oftotalassets).

Ontheliabilityside(seechartonthenextpage),customerdepositsgrewby28%fromEUR145.9milliontoEUR187.8million,inducingaslightincreaseofthedeposits/loansratiofrom50%to53%.Thisaggregaterateconcealssignificantdeviationsbetweenthedeposit/loancoveragesoftheindividualnetworkbanks,whichvaryfrom5-12%inTajikistan,NigeriaandZambiato120-122%inMadagascar,TanzaniaandLiberia.ThenetworkbankinAzerbaijanconstitutesthemiddlebetweentheextremes,withadeposits-to-loansratioof49%.

3 BusinessDevelopment

51

12DeviationsfromthegeneralgrowthpathduringtheyeararepredominatelyexplainedbyfluctuationsoftheAzeriManatagainsttheEuro,which closelyfollowmovementsbetweentheEuroandtheUSdollar.

Development of Network Bank Assets (Mill. EUR)

Dec10Jan11Feb11Mar11Apr11May11 Jun11Jul11Aug11Sep11 Oct11 Nov11 Dec11

450

400

350

300

250

200

150

100

50

0

OtherLoans

SMELoans

MicroLoans

OtherAssets


Externalborrowingsfrominternationalfinancialinstitutionsandmicrofinanceinvestmentfundsincre-asedslightlyfromEUR159.2milliontoEUR167.4million.Unsurprisinglyinviewoftheabovedepositcollectionresults,thebanksrequiringthelargestexternaldebtintakeareAzerbaijan,NigeriaandTajikistan(asZambiaisstillfeedingitsloangrowthfromequity).

TheconsolidatednetprofitofallnetworkbanksamountedtoEUR16.7million(2010:EUR24.0million).Thiscorrespondstoaweightedreturnonaverageequityof17.9%(33%).Thereductionofaggregateprofitabilityisaresultofdecliningnetportfolioyields(from23.1%in2010to21.3%in2011)againstincreasingoperatingexpenseratios(from15.7%to17.4%).ThistrendisdrivenmainlybyAccessBankAzerbaijan(ABA),whichduetoitsizehasbeendominatingtheaggregateresult.

Theanalysisofotherbanks(asdetailedbelow)showssignificantdifferencesinearningstrends:net-workbanksinMadagascarandNigeriaswungfromnegativetopositiveprofitability,Tajikistan(whichwasinitssecondyearofoperations)reduceditslosswhilstTanzaniafellbackfromasmallprofitin2010intoalossin2011,thelatterbeingtriggerednotbystructuralbusinessdevelopmentbutbyachangeoffinancingstructurecomparedtopreviousyears.

Inthefollowing,webrieflysummarisethebusinessdevelopmentofeachnetworkbank:2011wasanothersuccessfulyearforAccessBankAzerbaijandespitemoredifficulteconomiccondi-tionsandfiercercompetitioninAzerbaijan’smicrofinancesector.Thebankfurtherstrengtheneditspositionastheleadingbankforsmallbusinessfinanceandoperatesamongtheleadingbanksofthecountry.TheBankerMagazinenamedAccessBankasthe‘BankoftheYearinAzerbaijan’initsannualawardswhileFitchRatingshasagainaffirmeditsratingsforAccessBankwithoutanychanges.AccessBank’slong-termforeigncurrencyIssuerDefaultRating(IDR)wasconfirmedat‚BB+‘with‘Out-lookStable’–thehighestamongAzerbaijan’sfinancialinstitutions.

Excellentportfolioquality(PAR30:0.76%)wasmaintainedandreliableserviceledtocustomerconfi-denceandinternationalrecognition.

52

3 BusinessDevelopment (con’t.)

AccessBankAzerbaijan


600

500

400

300

200

100

Development of Network Bank Equity + Liabilities (Mill. EUR)

Dec10Jan11Feb11Mar11Apr11May11Jun11Jul11Aug11Sep11Oct11 Nov11 Dec11

Equity

OtherLiabilities

ExternalBorrowings

CustomerDeposits

2011endedwithatotalpost-taxprofitofUSD22m(USD33min2010).ROEstoodat25.0%(51.6%in2010)andROAat4.8%(7.8%in2010).CapitalAdequacyreached28.4%(28.0%at2010-end).Whilethenetprofitandprofitabilityindicatorswerelowerthanin2010,duetothereductionininterestincomeasratescontractedandcontinuinggeneralincreaseinstaffandoperationalcosts,thesetrendswereanticipatedandtheresultswerestillfaraboveplan.

Incredit,recorddisbursalsinDecemberofUSD48m,combinedwithstrongdisbursalsintherestofthequarter,pushedtotaldisbursalsin2011reachedUSD469m,an8%increaseon2010(USD436m),withthetotalportfolioincreasingbyUSD37m /11%during2011tofinishtheyearatUSD378m.TheSMEportfoliomadethelargestcontributiontothegrowth–,increasingbyUSD20m(14.9%)in2011,followedbytheRetailportfolio–increasingbyUSD10m(48%).DepositsendedtheyearatUSD179m(18%upcomparedto2010-end).

AtaxlawinAzerbaijanprovidedapartialprofittaxexemptionforbanks,aswellasinsuranceandreinsurancecompanieswhichincreasedtheirchartercapitalbeginning1January2009.ABAcapitalizedprofitsof2009,2010and2011.AlthoughthecapitalizationwasnotintendedtohaveaneffectonAccessHolding,atotalamountofEUR0.8millionwaspaidtotaxauthoritiesbyABAonbehalfofAccessHolding.In2011theConstitutionalCourtofAzerbaijanruledoutthatcapitalizedprofitcanonlybetaxedatrealizationofcapital.Forfuturedividendpaymentswhicharesubjecttowithholdingtax,AccessHoldingcanusetheseamountstooffsetthesetaxes.

AccèsBanqueMadagascar’s(ABM)assetsgrewbyEUR7.4millionfromEUR17.5milliontoEUR24.9million.Theloanportfolioasat31December2011comprised20,883loanstotallingEUR14.3million(2010:14,436loans,EUR11million).CustomerdepositsincreasedfromEUR13.6milliontoEUR17.8million.Attheendoftheyear,ABMemployedatotalof561staffin14branches(2010:435/11).PortfolioqualitydeterioratedwithPAR30risingto4.4%(2010:1.8%),theincreaseemanatingmainlyfromtheSMElen-dingdivision.Ingeneral,theSMElendingbusinesshasnotdevelopedsatisfactorilyin2011,whichwaspartlydrivenbyinternaldifficultiesandpartlybythecontinuousuncertaintiessurroundingthecountry’spoliticalsituation(asdescribedabove).Thepoliticalstalemateandhighperceptionofriskhasbeendam-peninginvestmentappetiteespeciallyamongSMEcustomersandhencereducedloandemand.

ABMreportedaprofitofEUR107,366,whichwashoweverbelowbudgetexpectationsasaresultofhigherloanlossprovisionsandslowerlendinggrowth.TotalequityamountedtoEUR3millionattheendof2011.ThenewlylaunchedAgriculturalBusinessdevelopedverywellinthelastquarterof2011,exceedingexpectations.Theportfolioincreasedby57.3%duringthefourthquarterandnowstandsatMGA519.9m(TEUR178)representing1.26%ofthebank’sentireportfolio.

2011wasthefourthfullbusinessyearforAccessBankTanzania(ABT),whichopenedinNovember2007.Thebankincreaseditsportfolioto12,305loans(2010:5,592)amountingtoEUR15million(2010:7.9million)andcollectedcustomerdepositsofEUR18.2million(2010:EUR8.8million).Asof31December2011,ABToperatedfromsixbranchesandemployed342staff(2009:5/213).ThebankrecordedalossofEUR331,824,whichwashigherthanexpectedinthebudget.PortfolioqualitywasverygoodwithPAR30at1.2%(2010:2.9%),whereaswrite-offsamountedtoapprox.1%oftheyear-endgrossloanportfolio.AcapitalincreaseofTZS2bn(TEUR975)wascarriedouton31October2011tosupportnewbranchopenings.Threeshareholders(AccessHolding,IFCandKfW)participatedintherightsissuewhilsttwoothers(AfDBandBIO)abstained.Asaresultoftheover-proportionalparticipationofAccessHolding,itssharehasrisento50.7%,meaningthatABTbecameapropersubsidiaryandwillthusbeconsolidatedinthefinancialstatements.In2011,thefirstmobilephonepaymentsystemshavebeenintroducedasanagencyservice(butarenotdirectlylinkedtothebank’sowncustomerdepositaccounts).


AccessBankTanzania

53


OpenedinNovember2008,2011wasthethirdfullbusinessyearforABMicrofinanceBankNigeria(ABN).AfterpostingalossofTEUR553in2010,thebankwasabletoreportaprofitofEUR865,324atyear-end2011.Thegrossloanportfolioincreasedfrom9,255loanswithEUR7.6million(attheendof2010)to16,930loanstotallingEUR17millionbytheendof2011.CustomerdepositsgrewfromEUR1.0milliontoEUR2.2million,butremainbelowexpectations.HowevertheBankdisposesofamultitudeofexternalrefinancinglinesfrominternationallenders,althoughthecostofborrowingremainshighatbetween16and20%p.a.

Throughout2011therehasbeenanimportantincreaseinstaff.Atyearend,ABNemployed467staffin8branches(2010:275/6).PARhasincreasedduringtheyear(howevercomingfromverylowlevels),standingat1.57%(PAR1)and0.95%(PAR30)attheendoftheyear.Thisisstillanexcellentvalueandindicatesthestrengthofthelendingtechnology.

AccessBankLiberia(ABL)ended2011withtotalassetsamountingtoEUR13.5million(2010:EUR10.6million).Initsthirdyearofoperationitsoutstandingloanportfoliostoodat7,078withEUR4.2million(2010:5,536/EUR3.3million).Generallyspeaking,thegrowthofthebank’sloanportfolioremainedbelowexpectations,astheMicrolendingbusinesswassloweddownbyportfolioqualityproblems(withPAR 30deterioratingfrom1.62%in2010to5.15%attheendof2011)whereastheimplementa-tionoftheSMElendingproductwashaltedbyadelayedapprovaloftheCentralBankofLiberia(CBL).Onapositivenote,theMicrolendingperformanceimprovedmoderatelytowardstheendoftheyear,andCBLapprovalfortheSMEproductwasfinallygrantedjustbeforetheendoftheyear,sothatSMElendingcancommenceinQ1/2012.However,substantialchallengesremain–deepeningmanagementcapacityandimprovingportfolioqualityarekeyinternalissues.

CustomerdepositstotalledEUR5.2millionattheendof2011(2010:2.5million),exceedingbudgetexpectations.Nofurtherbrancheswereopenedin2011butstaffincreasedfrom210in2010to290on31December2011.ABLregisteredalossofEUR366,569asinterestincomeremainedbelowplanwhereasoperatingexpenseswereincreasedbystaffexpansionandotherfactors.

AccessBankTajikistan(ABTJ)openedforbusinessinApril2010.In2011itsbranchnetworkgrewby2newbranchesto4branches.Inaddition,totalstaffreached237atyear-end2011(2010:162)meaningthatemploymenthasbeenincreasedby48%.Untiltheendof2011,thebankachievedanoutstandingportfolioof4,798loans(2010:1,369)withEUR9.5millioninvolume(2010:EUR2.9million).Loanportfolioqualitystoodat1.32%(PAR30).SinceABTJ’slicensedidnotallowthebanktotakedepositsfromphysicalpersonsuntiltheendof2011,thebankoffersaccountsonlytolegalpersonsandwasabletoattractTEUR451,anincreaseof113%ascomparedto2010.ABTJregisteredalossofTEUR644(2010:TEUR537)

On4April2011ABTJwentlivewithitsnewbankingsoftwareT24+LMBafterthesuccessfulmigrationfromthelegacysystemLFSMicrobankSystem.

20monthsaftertheopeningoftheBank,ABTJhasbecomeoneofthefivelargestmembersofAMFOT(AssociationofMicrofinanceOrganizationsofTajikistan).AccessBankTajikistanhasbeensuccessfullyinspectedbyNationalBankofTajikistanandhasreceivedthehighestmarkamongbanksinTajikistan.Inthefinalquarterof2011thenewmoneytransfersystem“Leader”wasintroduced.

ABBankZambiajoinedtheAccessNetworkasitsyoungestmemberinOctober2011.Thebanktookasuccessfulstart.Inthefirstquarterofoperations(18October-31December2012)407loanswithEUR380,123weredisbursedand1.410depositaccountswereopened.Thedevelopmentsinthebankingser-vicesdepartmentsexceededexpectationsbyabout30%whereasincredittheoutcomewasabout10%belowtheexpectedresults.Sofar,ABBankZambiaconsistsofonebranchwhileemploying84staff.

54

AB Microfinance Bank Nigeria

AccessBank Liberia


AB Bank Zambia


Shortlyafteritslaunch,ABBankZambiawasgivenanawardinrecognitionofthelaunchoftailormademicrofinanceproductssuitebyacommercialbankataBanker’sBallwhichwashostedbytheBankersAssociation.

Note on internal System for Controlling/Monitoring of Investee Companies on the basis of Quantitative Performance BenchmarksGenerallyspeaking,AccessHoldingmonitorsandcontrolsthefinancialandoperationalperformanceofitsnetworkbanksthroughastringentbi-directionalfeedbackloopbasedonquantitativeperformancebenchmarks,budgetdeviationanalysisandtrendanalysis.Thisfeedbackloopinvolvesthemonthlysubmissionofstandardisedperformancereportsbyeachinvesteecompanytotheholding,wherethecollecteddataisprocessedandfedintoanevolvingdatasetcomparingnetworkbankperformancesovertime(longitudinalanalysis),i.e.enrichingtheglobalhistoricaldatabasefromwhichbenchmarksarederived.Additionallyfraudincidentsarereportedonaregularbasis.

Overtime,asetofgeneralisedperformanceexpectationshasemerged(andcontinuestoemerge)withrespecttokeyindicatorssuchasloanofficerproductivity,lendingqualityordepositcollectionresultstobereachedatacertainpointintimeofanetworkbank’sexistence(i.e.afterXmonths/yearsofoperations).However,theanalysisofeachbank’sactualperformanceagainstthesegeneralisedbench-marksneedstotakecountry-orinstitution-specificfactorsintoaccount,i.e.cannotignoredifferencesinmarketsize,industrystructureortheincomeleveloftherespectivetargetgroup.Inmanycountries,bankperformancesarealsosignificantlyinfluencedbylocallaws,regulationsorotherexternalfactors.

Eachinvesteecompanyisassignedtoaprojectco-ordinatoratholdinglevelwhosupportstheinvestee’smanagementinaddressingperformancegapsorstructuralbudgetunderfulfilment.Onaquarterlybasis,theperformancesofallnetworkbanks(andotherissuesrelevanttotheirdevelop-ment)arediscussedindepthinastructuredsessionincludingAccessHolding’sManagementBoard,theheadoftheInvestmentUnitandtherespectiveprojectco-ordinators.SeniorManagersofthenetworkbanksareattendingoneormore(dependingonposition)holding-levelworkshopsperyearinwhichbankperformancesareanalysed,cross-cuttingissuesdiscussedandbudgetprojectionsmadefortheforthcomingyear.

Note on Accuracy/Effectiveness of Internal Planning/Forecasting SystemLikethecontrolling/monitoringsystem,theinternalforecastingprocessalsofollowsabi-directionalapproachinwhichinvesteecompanyareproducingtheirownannualbudgets(or3-to5-yearbusinessplans)whichfeedintotheholding’sbusinessprojections.Whereastheholdingfeedsintothebudgeting/forecastingprocessofitsinvesteecompaniesbycheckingtheplausibilityoftheirforecastsagainstempiricalevidence(averagegrowthratesandperformancebenchmarksobservedatothernetworkbanksatasimilarmaturitylevel)andrecommendsimprovementspriortofinalisation.ThefinalapprovalsofinvesteebudgetsarepreformedbytherespectiveinvesteeBoards.

Theaccuracyofannualforecastshastobemeasuredandinterpretedinlightofthe‘age’oftheinves-teecompanies.‘Young’banksmaydoubleortripletheirearningassetsinasingleyear(aswasthecaseinABT,ABNorABTJin2011).Insuchsituations,evenslightdeviationsoftheexpectedgrowthpath–whichcanbeeasilytriggeredbyeventssuchasthedelayedopeningofanewbranch–cancausemajorunder-oroverfulfilmentofthebudgetedannualprofits.Additionallytherearemanyexternalfactorsinfluencingtheactualresultsthatcannotbeverywellpredicted,suchasmacroeconomiceffects(especiallyexchangeratefluctuations)orchangeoflawsandregulations.

Thisnotionisconfirmedwhenanalysingtheaccuracyofbudgetedresultsatinvesteelevelin2011,astherewerestrongover-fulfilments(ABA’sprofitsbeing36%aboveplaninEuroterms,andABN’seven156%abovetarget)aswellassignificantunderfulfilmentsatsomeoftheotherbanks(withABLandABTJmakinglossesagainstabudgetedsmallprofit).Thetotalafter-taxprofitofallnetworkbankscombined

55


washowevernottoofarofftarget,atEUR16.5million(againstacombinedbudgettargetofEUR13.1million).Totalinvesteecompanyassets(EUR479million)werealsoveryclosetothecombinedbudgetfigure(EUR484million).

Overtime,theincreasingbaseofempiricalnetworkbankdataavailableforextrapolationshouldenableustoimprovetheaccuracyofinvesteeandholdingprojectionstoacertaindegree.Howeverduetotheabovefactors,significanttargetdeviationsinindividualbankscannotberuledoutandourabilitytopredictexternaleffectswillremainlimited.

Note on Research & Development (R&D) Activities during the yearThemainR&DactivityofrelevancetoAccessHolding’sbusinessmodelistheexplorationofnewin-vestmentopportunitiesinGreenfieldprojectsorexistingfinancialinstitutions.13Thescreeningprocessfornewinvestmentsisanongoingprocessinwhichtheorganisation’sknowledgeofpotentialnewmarkets(forastart-upoperation)oracquisitionobjectsiscontinuallyexpandedorupdatedbywayofdeskresearch,fieldmissionsorleveragingofindustrycontacts.

During2011,themostrelevantactivitiesinthiscontextweretheupdatingoffeasibilitystudiesfortheplannedGreenfieldinvestmentsinBrazilandRwanda.InBrazil,thebusinessplanprojectionsfortheplannedstart-upwererevisedbasedonnewcommercialparametersderivedfromthemarketstudyupdate.Otherscreeningactivitiesandpreliminaryduediligenceofpotentialacquisitiontargetswereundertakenduringtheyearbutdidnotresultinconcretepreparationsfornewtransactions.

Note on Option AgreementsAccessHoldingandtheBelgianInvestmentCompanyforDevelopingCountriesSA(“B.I.O.”)havecon-cludedaconditional‘Put/CallOptionAgreement’forthesharesheldbyB.I.O.inAccessBankTanzaniaLtd.Asof31December2011,thepreconditionsforAccessHoldingtoexerciseitscalloptionwerenotyetfulfilledbutthepreconditionforB.I.Otoexerciseitsputoption(atbookvalue)weremet.Sincethepotentialgainsandlossesofthisagreementarecurrentlybalanced,liabilitiesresultingoutofthe‘Put/CallOptionAgreement’arenotrecognised.

AccessHoldingandtheDutchcompanyStichtingTriodosDoen(“Triodos”)haveconcludedanoptional‘Put/CallOptionAgreement’forthesharesheldbyTriodosinAccèsBanqueMadagascarS.A.in2009.Sincethepotentialgainsandlossesofthisagreementarecurrentlybalanced,potentialliabilitiesresultingoutofthe‘Put/CallOptionAgreement’arenotmeasurableandarenotrecognised.

AccessHolding,EBRD,IFCandKfWhaveconcludedanoptional‘PutOptionAgreement’forthesharesheldbyEBRD,IFCandKfWinAccessBankTajikistan.ThisoptionenableseachofshareholderstoselltheirsharestoAccessHoldingforagivenmultiple.Sincethepotentialgainsandlossesofthisagreementarecurrentlybalanced,potentialliabilitiesresultingoutofthe‘PutOptionAgreement’arenotmeasurableandarenotrecognised.

Institutionaldevelopmentatthelevelofeachnetworkbankandtheholdingasawholecontinuedthroughout2011.Attheheadquarterlevel,theLFScompetencycentrewasfurtherstrengthenedwiththeintakeofadditionalstaff.Thisenlargementwasundertakeninpreparationofthemediumtermplantocreateamatrixstructurewithproductmanagersacrossthegroup.Apartfrompermanentonlineandfrequenton-sitesupport,specialtrainingeventswereheldforallgroupCEOs,creditmanagers,retailmanagers,HRmanagers,ITmanagers,internalauditstaffandaccountants.Exchangeofstaffamongnetworkbankswasfurtherintensifiedwithshortandlong-termtrainingmissionsandsecond-mentswithinSub-SaharanAfricaandCentralAsiaaswellasacrossbothclusters.

56

4 InstitutionalDevelopment


13OtherR&Dactivities,suchasthedevelopmentofnewbankingproductsandservicesorthedesignoftechnologicaldeliveryplatformsorotherdistri- butionchannels,areundertakenbyAccessHolding’stechnicalpartnerLFSFinancialSystemsGmbHoninvesteeand/orheadofficelevel.Hence,these activitiesarenotpartoftheservicesrenderedundertheManagementServicesContract,i.e.donotfallunderthescopeofthisAnnualReport.

StaffingoftheLFSITdepartmenthasalsobeenexpandedsuccessively,boththroughpermanentstaffandfreelancers,tocopewiththeadditionalworkloadtriggeredbytheongoingmigrationprojectofthenetworkbankscorebankingsystemsfromLFS-MBS(aproprietarysolutiondevelopedbythetechnicalpartnerLFS)toT24,amarketsolutiondevelopedbyTemenosandcustomizedfortheAccessHoldingnetworkbyLFS.Migrationwasstartedin2011withAccessBankTajikistanadoptingthenewsystemandAccessBankinAzerbaijancommencingthescoping/preparation.Furtherstepsareexpectedfor2012.

TheextensionoftheoriginalManagementServicesContract(“MSC”)betweenAccessHoldingandLFS(whichexpiredon30.09.2011)wasnegotiatedandmateriallyapprovedbytheShareholderson9September2011.Duetodelaysinthefinalauthorisationprocess,theactualsigningofthenegotiatednewcontract(“MSC-2”)tookplaceonlyinJanuary2012(butwaseffectiveretroactively).LFSprovidedmanagementservicestoAccessHoldingalsoduringtheinterimperiod.

Asintheoriginalcontract,theremunerationsystemundertheMSC-2isdividedintoafixedandavariablepart.Thevariableportionisaperformancefeewhosemagnitudedependsonthedegreeoftargetfulfilment(withtargetsbeingderivedfromthebusinessplandevelopedfortheperiodof2012-2016).

Comparedwith2010thetotalassetsofthegroupdoubledin2011duetothegrowthofthegroupcompaniesandthenewlyconsolidatedABT.Assetsaredominatedbyinvestmentsinassociates,loansandadvancestocustomersandcashandcashequivalentsandtotaltoEUR98.1million.LiabilitiesincreasedtooverEUR49millionbutarestilllowcomparedtoequity(EUR34.2million)andshareofMinorityShareholders(EUR14.6million)duetotheyoungageofthenetworkbanks.Thereforethedebtratioincreasedfrom21.0%to50.3%.AsaresultfromthenewlyconsolidatedABTandthegrowthoftheotherbanks,loansandadvancestocustomersincreasedfromEUR13.2milliontoEUR45.7millionandcustomeraccountsincreasedfromEUR3.5milliontoEUR23.3million.ExternalfinancingbybankincreasedfromEUR4.7milliontoEUR19.0million.

In2011theprofitandlossaccountweredominatedbynetinterestincomeandoperationalcosts.NetinterestincomeincreasedfromEUR5.1milliontoEUR10.2million.Incontrasttothisstronggrowth,operatingexpensesincreasedmoderatelyfromEUR7.7milliontoEUR13.3million.TheprofitaftertaxofthegroupdecreasedslightlyfromTEUR1,814toTEUR1,592butwashighlyinfluencedbytaxeffectsandtheconsolidationofABTwhichgeneratedalossofTEUR507mainlybecauseofcurrencyeffectsatthetimeofconsolidation.

Returnonaverageequity(withoutothercomprehensiveincome)is5.0%for2011whichisslightlylowercomparedwith2010(7.8%).

Theliquidityriskisshownanddescribedinthenotes.Becauseofthetwoadditionalconsolidatedcom-paniesandthegrowthofthegroupcompaniestheamountofcashandcashequivalentsissignificantlyhigherthanin2010.

Thefollowingmaterialeventshaveoccurredbetweentheclosureofthefinancialyearandtheproduc-tionofthisreport,whichareconsideredtobeofrelevancefortheCompany:

PreparationsforacapitalincreaseofAccessHolding(inviewoftheupcomingacquisitionofa majoritystakeinABA,seechapter9)haveprogressedtothepointthatallbutoneshareholders hadsecuredtheirfinalorpre-finalapprovalsfortheirrespectivecapitalcontributionsatthetime ofwriting.Thecapitalincreaseisforeseentotakeplaceinthesecondquarterof2012.

TheBankofZambia(BoZ)announcedthattheminimumcapitalrequirementforforeigncommercial bankswillbeliftedtotheequivalentofaboutEUR75millionandforlocallyownedbankstothe equivalentofaboutEUR15millionbytheendof2012.Astheseamountsarefarabovetheforeseen

5 Financial Results of the Consolidated Group

6 Subsequent Events

57


andjustifiedcapitalisationlevelforABZ,inparticulartherequiredcapitalforforeignbanks,ABZ shareholders(ledbyAccessHolding)havestarteddiscussionswithBoZrespectofthismatter.

Thenumberofstaffmembersofallnetworkbankstogetherincreasedfrom2,502to3,318(+32.6%),whichwasdrivenbynetstaffincreasesineverynetworkbankplustheopeningofanewbankinZam-bia(seeabove).

Allnetworkbanksfocusonrecruitment,trainingandintegrationofnewstaff.Professionallytrainedandhighlymotivatedteamsarethefoundationsforthesuccessofallnetworkbanks.Allnetworkbankshaveatransparentandequal-opportunitystaffselectionandpromotionprocessinplace.Recruitmentprimarilyfocusesonuniversitygraduates,valuingintegrityandmotivationoverpreviousbankingexperience.Professionalandbankingskillsaretaughttonewstaffthroughextensivetraining,mostofwhichisconductedthroughin-houseseminarsandonthejob.Therapidgrowthofthebankoffersdynamiccareeropportunities.MostManagementpositionsthatwereinitiallyheldbyforeignmanagersareusuallyfilledbylocalcandidatesfromwithintheinstitutionafterthreetofiveyears(thedurationdependingusuallyonthequalityoftheeducationsystemoftherespectivecountry).AccessHolding,sharingtheGlobalCompact’scommitmenttolabourprotection,iscommittedtofairandequalopportunityrecruitment,treatment,andpromotionofourstaff,irrespectiveofgender,race,nationalityorreligion.ThisissetoutwithinourstaffandgenderpoliciesandwithintheGlobalCompactandincludesacodeofconductprovidingguidancetostaffonprofessionalbehaviour.Ournetworkbanksleadthesectorwiththeprovisionofstafftrainingandprovideadditionalprivatehealthinsuranceaswellashighlycompetitiveremuneration.

Inriskmanagement,itisnecessarytodifferentiatebetweentheoperationsoftheholdingandthoseofthenetworkbanks.Whilethemainrisksfortheholdingarecountryandcurrencyrisks,itiscurrentlynotexposedtoanycreditandtoonlyverylimitedoperationalrisks.Thenetworkbanksontheotherhandareexposedtothefullrangeofriskscommontothebankingindustry,aggravatedbyfactthattheyworkinmarketswithsometimesseveredeficienciesintheareasofpoliticalandeconomicstabili-tyandruleoflaw.

Level of AccessHolding Higher than expected capital requirements

Nature of risk:FasterthanexpectedassetgrowthofMFIs,insufficientaccesstoexternalfinancing and/orregulatorychange,canforceAccessHoldingtoaccelerateorincreasetheprovisionofcapital toitsnetworkbanks.UndertheHolding’scurrentcapitaldevelopmentprojectionsandinvestment planthiscanleadtotemporaryliquiditysqueezes.Thesameeffectscanalsooccurasaresultof fluctuationsofdividendincomesfromAccessHolding’sparticipations.

Mitigating factors:AccessHoldingimplementscarefulliquidityplanningandinitscapitalallocation alwayskeepsacushionforunexpectedfollow-upinvestments.Itsshareholdersaresufficiently solventtoprovidemorecapitalifneeded.

Delayed implementation of investment pipeline Nature of risk:Newinvestmentsinnetworkbanksneedtobecarefullyselectedandcoordinatedwith like-mindedco-investors,whosedecisionmechanismsmayrequiremoretimethanenvisioned. Licensingprocessescanbelongandcumbersome.Therefore,delaysintheimplementationofthe investmentpipelinecouldaffectthebuild-upoftheinvestmentportfolioand,ultimately, AccessHolding’soverallprofitability.

Mitigating factors:AccessHoldinghasdevelopedandismaintainingastronginvestmentpipeline, screeningandanalysingpossibletargetcountrieswellinadvance.

58

6 Subsequent Events(con’t.)

7 Human Resources and Training

8 Risk Management


External shocks in MFI host countries Nature of risk:Thecountriesofoperationaresubjectedtoanumberofrisks,suchasmacroeconomic shocks,naturaldisasters,orpoliticalupheaval.Suchrisks,wheretheymaterialise,canhavesub- stantialimpactontheMFIsandtheirclientele,intheformofe.g.adepressedbusinessenvironment, suddendelinquencywaves,tightenedmoneysupply,orextraordinaryforeignexchangelosses. ThesecandestabilisetheinvesteeMFIandcauselossesfortheinvestors.

Mitigating factors:MFIsarecomparativelyshock-resilient,foravarietyoffactors:Firstly,smallbusiness activityindevelopingcountriesisoftenpreciselyaresultofpooreconomicconditionsandinsufficient employmentopportunities,sothatdemandformicroenterpriseloanscanevenincreaseintheevent ofacrisis.Moreover,mostMFIclientsaretradersofbasicgoodssoldinsmallbatches,thedemand forwhichisaffectedbyeconomicshockstoalesserextentthanoveralldemandintheeconomy. Also,mostMFIloansareshort-term,sothattheycanquicklyrespondtointerestratechangesinduced bysuddenalterationsinmoneysupply.Forinvestors,theseadvantagestranslateintoarelativelylow systematicrisk(beta)ofMFIinvestmentsandlowcorrelationtotheperformanceofmostother investments.

AnadditionalmitigatingfactorinthespecificcaseofAccessHoldingisthatthepoliticalleverageof theIFIs(Internationalfinancialinstitutions)amongitsfoundingshareholdersandasinvestorsin networkbanksshouldhelptoreducethecountryriskofitsinvestments.

Foreign exchange risk Nature of risk:AccessHoldingmostlyundertakesequityinvestments,whicharedenominatedinlocal currencyandarethussubjecttoexchangeratefluctuations.Whilethenetworkbanksneedtomanage currencyrisksinrelationtotheirrespectivestatutorycurrency,theholdingisultimatelyinterested intheEurovalueofitsinvestments.Moreover,theinternationalreferencecurrencyinsomecountries ofoperationistheUSDollar,whichintroducesadditionalvolatilitytotheinvestments’value.

Mitigating factors:Duetothelong-termstrategyandnatureofinvestmentsasequity,hedgingis usuallynotpossible.Thecurrencyriskthereforehastobemanagedby(i)aimingtomaintain sufficientprofitabilityinnetworkbankstocompensateforcurrencydevaluationand(ii)diversification ofinvestmentsacrosscountriesandregions.

Level of network banksNetworkbanksareexposedtoallrisksinherentinthebankingindustry.Thisincludescreditrisk,maturity(liquidity)risk,interestraterisk,andcurrencyriskaswellasoperationalrisks,marketrisks,andcoun-tryrisk.Theoverridingriskmanagementstrategyisthecommonmanagementapproach,implementedthroughthetechnicalpartnerLFS,andtheprovisionofactiveinvolvementandcontrolbytheheadquar-ters.Theprovenandwelltestedapproachensuresthroughpermanentandinstitutionalisedexchangeofstaffandinformationaswellasthroughcontrolandauditthatbestpractiseisfollowed,synergiesarerealisedandtheduplicationoferrorsisavoided.Thisapproachisaconclusionfromtheobservationthatmanagementcapacity(asopposedtocompetition,marketlimitationorfunding)isoftenthesinglemostimportantbottleneckforthedevelopmentandsuccessofmicrofinanceinstitutions.ThelinkagebetweentheprovisionofcapitalandmanagementservicesisattheheartofAccessHolding’sbusinessconcept.

Importantprinciplesofthisapproachinclude

Standardisationandconcentrationoncoreproducts:AccessBanksdonotaimtooffereverypossible bankingproductbutconcentrateonprovidingexcellentserviceintheircoreareasofcompetence, i.e.microandsmallbusinessfinance.Thisensuresthatsparsemanagementcapacityisconcentrated andspeculativeorerraticstrategiesareavoided.Moreover,experienceshowsthatawell-managed portfolioofmicroandsmallbusinessloansismuchmoreresilienttoeconomicshocksthancorporate, consumeroraggressivehousingfinance.

59


Lending technology:TheLFStechnologyformicroandsmallbusinesslending–comprisingall aspectsoflendingfromcreditanalysistocreditcycleprocedurestoorganisationalandcompensation matters–hasbeensuccessfullyprovenandtestedinavarietyofcountriesandsituations. Highportfolioqualityandbalancedbutdynamicgrowthcanbeachievedinmostenvironments.

Focus on training: Traininglocalandinternationalstaffonalllevelsfromclericaltotopmanagement isacorefocusoftheactivityofeachnetworkbankandthegroupasawhole.Mostcareersare madein-house,andhighstaffretentionratesandloyaltyareachieved.Thisisespeciallyimportant inabusinesswithsuchspecificrequirementsasmicrofinance.

Simplicity and transparency:Greatattentionisgiventoensuringtransparencyandsimplicityof thenetworkbanks’products,proceduresandappearance.Creatinganddemonstratinga corruption-freeenvironmentisachallengeinmanycountriesofoperations,butalsoacore competitiveadvantageandthebasisforsustainedsuccess.

Prudence and financial risk management:Higheststandardsareappliedintheclassicalareasof bankriskmanagement–standardsofloanlossprovisioning,observationofprudentregulations, interestrate,maturityandcurrencyriskexposure.Inmostcases,internallyappliedregulations aremuchstricterthancentralbanklimits.Thisismadepossibleontheonehandbythenature ofourbanks’businesswhichusuallyexcludesconcentrationofexposures,highmaturityrisksand thelike.Ontheotherhand,thelong-termstrategyofAccessHoldinganditsco-investorsensures thatmanagementisnotpushedtogotothelimitofleverageorotherindicators,andisorientedat growthandsustainabilityratherthanshort-termprofitmaximisation.

Operational risk management:Operationalrisksofvarioustypesfromfraudtodifficultiesin electricitysuppliesareacorethreattothenetworkbanks’profitability.Thedevelopmentand managementofriskmatrixesisthereforebecomingstandardacrossAccessBanksandcentralised servicessuchasinITandproductmanagementaregainingimportanceinreducingoperational risksandensuringthesharingofbestpractiseamongnetworkbanks.

Control and audit:Thebuild-upofefficientandcapablecontrolandauditfunctionsisacore elementofriskmanagement.ThisincludesahighlycapableMISonbankandgrouplevelsaswell asthecentraltrainingof,andcontroloverinternalauditdepartmentsofthenetworkbanks. MeasurestakeninthisareacomprisecarryingoutinternalauditsbytheHQauditteamaswellas providingauditpolicies,proceduresandplanstonetworkbanks,traininginternalauditorsatthe banklevel,andexchangeofauditteamsacrossthenetwork.

2012isexpectedtobeanotherprofitableandsuccessfulyearfortheAccessHoldingnetwork.LedbyABA,thegroupwillcontinuetoconsolidateitspositionasoneofthemajorinternationalplayersinmicrofinance.ABM,ABNandABTwillreachorstabilisetheirprofitability,whileABLandABTJareexpectedtoreachtheoperationalbreak-evenpointtowardstheendoftheyear.ABMandABLshouldalsoseesignificantreductionsoftheirlendingoverduelevels.

AccordingtotheapprovedbusinessplanforAccessHolding,allcurrentinvesteecompanieswillbeundermajorityownershipbytheendof2012(withABMandABAtobeacquiredinthecourseofthesecondquarter),andtwonewnetworkbankswillbeaddedtotheinvestmentportfolio.TotalassetsofallnetworkbankscombinedareprojectedtoreachEUR577million,withatotalloanportfolioofEUR416millionandatotalafter-taxprofitofEUR12million.AccessHolding’sownprofit(afterdeductionoftheprofitattributabletominorityshareholders,andotherholding-leveleffectsincludingforeignexchangeadjustments)isexpectedtoreachEUR2.7million.

60

9 Outlook


Inviewofuncertaintiesandtherelativelyhighriskofexternalshocksinthecountriesweoperatein,thereisalwaysariskofunforeseeabledevelopmentsineachcountry.Buttherearealsochancesofabetterthanexpecteddevelopmentduetogoodmarketopportunitiesandhigheconomicgrowthrateswhichalsocanacceleratethegrowthofourbanks.

Thethreemainchallengesfor2012,asidefromthecontinuationofsoundbusinessdevelopment,are(i)thesuccessfulcompletionoftheacquisitionofthemajorityownershipstakeinAccessBankAzerbai-jan;(ii)thedevelopmentoftheinvestmentpipelinewithaviewtoestablishingoracquiringnewbanks(oratleastreachagreementthereon)inthecourseof2012,and(iii)thecontinuationofthebankingsoftwaremigrationproject.

Withrespecttoitem(i),theacquisitionofABAiscurrentlyforeseentobeclosedinMid-2012butremainssubjecttocertainfactorswhicharenotentirelywithinManagement’scontrol,especiallytheapprovalofthetransactionbythelocalcentralbank.Assuchdelaysareconceivable,althoughtheriskofcompletefailureisconsideredlow.Theacquisitionwillbefinancedbyacombinationofequity(toberaisedinacapitalincreaseofamagnitudeofaboutEUR30million)anddebt(withaforeseenborrowingintakeofEUR10millionfromtwodifferentlenders).ThedebtintakewillobviouslyentailachangeofthefinancialriskprofileofAccessHoldingastheCompanywillencounterregulardebtserviceobligationsthatwillneedtobemetfromdividendinflows.Howeverthefinancingagreementshavebeenstructuredinamannerthatallowsforsignificantflexibility(withoutcausingcreditdefaultevents)incaseofunforeseenreductionsordeferralsofdividendincome.

Progressunderitem(ii)isalsopartlydependentonthecorporateapprovalsofco-investors(whosepresenceisconsideredindispensableforriskandcostsharingaswellaspoliticalsupport),regulatoryapprovalsoftherespectivelocalcentralbanksandpotentialadverseeventsinthecountriesofopera-tions(e.g.raisingofminimumcapitalrequirementsforcommercialbanks,majoreconomicdownturns,orcivilwar).Atthecurrentstageofplanning,theGreenfieldinvestmentinBrazilhasthehighestprobabilityoffruitionin2012,whereasinvestmentopportunitiesinRwandahavetobedescribedasuncertain.Forthisreasonitisassumedthatonlytwonewinvesteecompanies(Brazilplusoneother)willbecreatedin2012.Otheropportunitiesarebeingscreenedcontinuouslybuttheaveragesourcingperiodformicrofinancejointventuresofthisnatureisapprox.2-3years.

Item(iii),themigrationofthebankingsoftware,willreceiveparticularattentionin2012astheimple-mentationinthelargestnetworkbank(ABA)startedin2011andwillcontinuethroughout2012and2013.BesideABA,preparationsforthemigrationofatleastoneothernetworkbankareinprocess.Generallythenewsoftwareofferssubstantiallong-termadvantagesforthenetworkbanks,butmayresultinadditionalcostsandabsorbsignificantmanagementattentionintheshortrun.

Lookingbeyond2012,theforecastfor2013foreseesafurtherexpansionofthebankingnetworkfrom9to10networkbanks,withtotalassetsofEUR729million,totalloansofEUR534millionandacombinedafter-taxprofitofEUR17.6millionatyear-end.Giventhatthemajorityofthenetworkbankswillbestillyoungandcomparativelysmallforthetimebeing,theaccuracyofthepredictedgrowthratewillhingelargelyontheresultsofAccessBankAzerbaijan,andtoalesserextentontheolderAfricannetworkbanks(ABM,ABN,andABT).

Berlin,June252012AccessMicrofinanceHoldingAGManagementBoard

61

Auditors’ Report

WehaveauditedtheconsolidatedfinancialstatementspreparedbyAccessMicrofinanceHoldingAG,Berlin,comprisingthestatementoffinancialposition,theincomestatementandstatementofcompre-hensiveincome,statementofchangesinequity,cashflowstatementandthenotestotheconsolidatedfinancialstatements,togetherwiththegroupmanagementreportforthebusinessyearfromJanuary1toDecember31,2011.ThepreparationoftheconsolidatedfinancialstatementsandthegroupmanagementreportinaccordancewiththeIFRSs,asadoptedbytheEU,andtheadditionalrequire-mentsofGermancommerciallawpursuantto§(Article)315a(1)HGB(„Handelsgesetzbuch“:GermanCommercialCode)aretheresponsibilityoftheParentCompany‘sManagementBoard.Ourresponsi-bilityistoexpressanopinionontheconsolidatedfinancialstate-mentsandthegroupmanagementreportbasedonouraudit.

Weconductedourauditoftheconsolidatedfinancialstatementsinaccordancewith§317HGBandGermangenerallyacceptedstandardsfortheauditoffinancialstatementspromulgatedbytheInstitutderWirtschaftsprüfer(InstituteofPublicAuditorsinGermany)(IDW).Thosestandardsrequirethatweplanandperformtheauditsuchthatmisstatementsmateriallyaffectingthepresenta-tionofthenetassets,financialpositionandresultsofoperationsintheconsolidatedfinancialstatementsinaccordancewiththeapplicablefinancialreportingframeworkandinthegroupmanagementreportaredetectedwithreasonableassurance.KnowledgeofthebusinessactivitiesandtheeconomicandlegalenvironmentoftheGroupandexpectationsastopossiblemisstatementsaretakenintoaccountinthedeterminationofauditprocedures.Theeffectivenessoftheaccounting-relatedinternalcontrolsystemandtheevidencesupportingthedisclosuresintheconsolidatedfinancialstatementsandthegroupmanagementreportareexaminedprimarilyonatestbasiswithintheframeworkoftheaudit.Theauditincludesassessingtheannualfinancialstatementsofthoseentitiesincludedinconsolidation,thede-terminationoftheentitiestobeincludedinconsolidation,theaccountingandconsolidationprinciplesusedandsignificantestimatesmadebytheCompany‘sManagementBoard,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatementsandthegroupmanagementreport.Webelievethatourauditprovidesareasonablebasisforouropinion.

Ouraudithasnotledtoanyreservations.

InouropinionbasedonthefindingsofouraudittheconsolidatedfinancialstatementscomplywiththeIFRSsasadoptedbytheEUandtheadditionalrequirementsofGermancommerciallawpursuantto§315a(1)HGBandgiveatrueandfairviewofthenetassets,financialpositionandresultsofoperationsoftheGroupinaccordancewiththeseprovisions.ThegroupmanagementreportisconsistentwiththeconsolidatedfinancialstatementsandasawholeprovidesasuitableviewoftheGroup‘spositionandsuitablypresentstheopportunitiesandrisksoffuturedevelopment.

FrankfurtamMain,June25,2012

PricewaterhouseCoopersAktiengesellschaftWirtschaftsprüfungsgesellschaft

sgd.PeterKleinschmidt sgd.ppa.StefanWißenbachWirtschaftsprüfer Wirtschaftsprüfer(GermanPublicAuditor) (GermanPublicAuditor)

62


Note 2011 2010 EUR EURInterestincome 11 12.871.974 5.295.709Interestexpense 12 (1.987.728) (83.191)Net interest income before provision for impairment losses on interest bearing assets 10.884.246 5.212.518Impairmentchargeforloanlosses 13 (530.326) (332.221)Net interest income 10.353.920 4.880.297Feeandcommissionincome 14 609.708 877.108Feeandcommissionexpense (17.766) (14.449)Netfeeandcommissionincome 591.942 67Netprofit(loss)fromforeignexchangeoperations 15 161.163 1.065Netprofit(loss)fromsaleofinvestmentsavailable-for-sale 16 – 36.768Netprofit(loss)fromAssociates 17 2.328.585 4.100.934Otherincome 98.938 1.139Net non-interest income 3.180.628 5.002.566Net operating income 13.534.548 9.882.862Personellexpenses (5.394.835) (2.639.267)Depreciationandamortization (1.049.326) (512.311)Otheradministrativeexpenses 18 (6.733.832) (4.611.455)Operating expenses (13.287.993) (7.763.033)Profit (Loss) for the period 356.555 2.119.830CurrentIncometaxexpense 19 (44.089) (449.003)DeferredTaxIncome(Expense) 20 1.016.160 (336.588)Income tax expense 972.071 (785.591)Profit (loss) after tax 1.328.627 1.334.239Profit(loss)attributabletonon-controllinginterests 21 (262.794) (479.700)

Profit (loss) attributable to shareholders 1.591.421 1.813.939

63

Access Microfinance Holding AGStatement of financial positionAs at 31 December 2011Euro

Consolidated Financial Statements for the Year Ended 31 December 2011


64


note 2011 2010 EUR EUR Profit for the year 1.328.627 1.334.239Exchangedifferencesontranslationofforeignoperations 633.301 771.841Shareofothercomprehensiveincome/(expense)ofassociates,netoftax - (2.696)Other comprehensive income of the year, net of tax 633.301 769.145Total comprehensive income of the year 22 1.961.927 2.103.384 Totalcomprehensiveincomeattributableto: Equityholdersoftheparententity(total) 2.216.280 2.624.068Non-controllinginterests(total) (254.353) (520.684)

Total comprehensive income of the year 1.961.927 2.103.384

Access Microfinance Holding AG Consolidated Statement of Comprehensive Income For the year ended 31 December 2011Euro

Note 31December2011 31December2010 EUR EURASSETS Cashandcashequivalents 23 15.778.067 6.512.898Loansandadvancestobanks 2.891.644 3.533.758Investmentsavailableforsale 1.732.275 59.048InvestmentsinAssociates 24 15.614.416 15.362.513Loansandadvancestocustomers 25 45.665.451 13.162.693Intangibleassets 26 2.466.706 638.330Property,plantandequipment 27 5.666.414 3.616.558Currentincometaxasset 28 588 1.208Deferredincometaxasset 29 1.771.657 506.947Otherfinancialassets 29 2.065.021 2.500.000Othernon-financialassets 29 4.416.663 3.945.180Total assets 98.068.902 49.839.134 LIABILITIES Loansfrombanksandotherfinancialinstitutions 30 18.965.980 4.718.940Customeraccounts 31 23.264.997 3.526.836Tradeandotherpayables 32 4.595.561 868.374Currentincometaxliability 18.136-Deferredincometaxliability 33 194.398 765.325Othernon-financialliabilities 34 2.275.397 572.903Total liabilities 49.314.470 10.452.379EQUITY Sharecapital 35 5.839.017 5.513.250Capitalreserve 36 21.979.026 20.858.388Revaluationreserve - 26Currencytranslationdifferences 37 1.033.152 422.000Retainedearnings 38 5.250.009 3.520.935Otherreserves 39 95.325 (19.570)Shareholder equity 34.196.529 30.295.029 Share of Minority Shareholders Equityattributabletonon-controllinginterests 40 14.557.904 9.091.726 Total group equity 48.754.434 39.386.755 Total liabilities and equity 98.068.902 49.839.134

65

Access Microfinance Holding AGStatement of financial positionAs at 31 December 2011 Euro

(Un)paid Item Subscribed contributions Payments Revaluation Currency Other Retained Total Non- Total equity Capital toSubscribed intocapital Surplus Translation Reserves Earnings controlling Capital reserve Differences interests EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR

Carry Forward as at 01 January 2011 5.513.250 - 20.858.388 26 422.000 (19.570) 3.520.935 30.295.029 9.091.72 39.386.755

Profit(loss)fortheyear 1.591.421 1.591.421 (262.794) 1.328.627

Othercomprehensiveincome - - - - - - - 611.151 22.149 633.301

Exchange differences on translation - - - - 611.151 - - 611.151 22.149 633.301

Total comprehensive income 2.202.572 (240.645) 1.961.927

IncreaseinSubscribedCapital 325.767 - - - - - - 325.767 - 325.767

PaidContributionstoCapitalReserve - - 1.120.638 - - - - 1.120.638 - 1.120.638

Currency Translation Effect - - - (4) - - - (4) - (4)

Changeinnon-controllinginterests - - - - - - 137.653 137.653 5.706.823 5.844.476

Other - - - - - 114.874 - 114.874 - -

Balance as at 31 December 2011 5.839.017 - 21.979.026 22 1.033.151 95.304 5.250.009 34.196.529 14.557.904 48.754.434


66


Access Microfinance Holding AG, Berlinstatement of changes in equity for the period from 1 January 2011 to 31 December 2011

67

Access Microfinance Holding AG - Consolidated Cash Flow Statement For the year ended 31 December 2011

2011 2010 EUR EURProfit Profit 1.328.627 1.334.239 Incometax 972.071 785.591 Profitbeforetax 2.300.698 2.119.830Adjustments for non cash items: Shareofprofit(loss)fromAssociates (2.328.585) (4.100.934) Provision/(recoveryofprovision)forimpairmentlossesoninterestbearingassets 530.326 332.630 Translation(gain)/lossonforeignexchangeoperations 165.196 157.996 Depreciationandamortisationexpense 1.049.326 481.172 Interestreceived (12.871.974) (5.295.709) Interestpaid 1.987.728 83.191 Dividendsreceived,netoftax (461.064) (351.367)Cash flows from operating activities before changes in operating assets and liabilities (9.628.350) (6.573.190)Changes in operating assets and liabilities (Increase)/decrease in operating assets: Loansandadvancestobanks 642.114 (3.533.758) Loanstocustomers (32.502.758) (9.286.273) Otherassets (1.301.215) (2.988.359) Interestreceived 12.871.974 5.295.709Increase/(decrease) in operating liabilities Loansandadvancesfrombanks 14.247.040 4.306.435 Customeraccounts 19.738.161 2.183.866 Otherliabilities 4.858.754 736.436 Interestpaid (1.987.728) (83.191)Cash inflow/(outflow) from operating activities before taxation 6.937.993 (9.942.326) Incometaxpaid (516.840) (404.625)Net cash inflow/(outflow) from operating activities 6.421.152 (10.346.951) Cash flow from investment actitivies Purchaseofproperty,plantandequipment (2.828.905) (2.756.144) InvestmentsinAssociatesandassetsavailable-for-sale (1.673.227) (1.371.980) Divdendsreceived 933.949 755.992 SaleofAssociatesandavailable-for-saleassets Net cash inflow/(outflow) from investing activities (3.568.183) (3.372.132)Cash flow from financing actitivies Minorityinteresttosubscribedcapitalofsubsidiaries 5.728.972 5.012.783 ContributiontoSubscribedCapital 325.767 684.750 Proceedsfromissuanceof[ordinary]shares PaymentsintoCapitalReserve 1.120.638 10.498.207Net cash inflow/(outflow) from financing activities 7.175.378 16.195.740 Equityattributabletoothershareholders Effectofchangesinforeignexchangerateoncashandcashequivalents (763.178) 199.991Total Cash flow (763.178) 7.689.431Cash and cash equivalents, beginning of year/period 6.512.898 3.836.250 Cashflowfromoperatingactivities 6.421.152 (10.346.951) Cashflowfrominvestingactivities (3.568.183) (3.372.132) Cashflowfromfinancingactivities 7.175.378 16.195.740 Effectsofexchangeratechanges (763.178) 199.991Cash flow 9.265.169 2.676.648Cash and cash equivalents, end of year/period 15.778.067 6.512.898

Notes to the Consolidated Financial Statements 2011

AccessMicrofinanceHoldingAG(AccessHolding,Company),aJointStockCompanyinaccordancewiththeGermanJointStockCompanyAct,basedinBerlin,Germany,wasfoundedon25August2006andhasitsregisteredofficeatSchönhauserAllee10-11,D-10119Berlin,Germany.ThebusinesspurposeofAccessHolding,asacommercialmicrofinanceholdingcompany,istoinvestinmicrofinanceinstitutions(MFIs)andtodeveloptheseinvestmentsthroughacombinationofequityfinance,holdingservices,andmanagementassistancerenderedbyoneofitsshareholdersandtechnicalpartnerLFSFinancialSystemsGmbH(LFS),Berlin,Germany.

TheconsolidatedfinancialstatementsofAccessHoldingfortheyearended31December2011comprisetheCompanyanditssubsidiaries(togetherreferredtoasthe“Group”andindividuallyas“Groupentities”)andtheGroup’sinterestinassociates.

Theprincipalaccountingpoliciesappliedinthepreparationofthesefinancialstatementsaresetoutbelow.

TheseconsolidatedfinancialstatementsarepresentedinEuro(EUR),whichistheCompany’sfunctionalcurrency.

(1) Compliance with International Financial Reporting StandardsTheconsolidatedfinancialstatementsarepreparedaccordingtoInternationalFinancialReportingStandards(IFRS)andIFRICInterpretationsasendorsedbytheEuropeanUnion(EU),followingsections315apara3inconjunctionwithsection315apara1HGB(GermanCommercialCode).

EU-endorsedIFRSmaydifferfromtheIFRSaspublishedbytheInternationalAccountingStandardsBoard(IASB)iftheEUdoesnotadoptcertainneworamendedIFRS.

Accordingly,theGroup’sconsolidatedfinancialstatementsfortheyear2011havebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRS)andIFRICinterpretationsadoptedbytheEU.

Recently Adopted Accounting PronouncementsThefollowingneworamendedstandardsandinterpretationshavebecomeeffectiveforfinancialyearsbeginningafter1January2011.ManagementassessesthosestandardsandinterpretationsasrelevantfortheCompany’soperationsasfollows:

ImprovementstoIFRS(2010):InMay2010,amendmentstoIFRSwereissuedbytheIASBwhich resultedinchangesofseveralIFRSandeffectiveforannualperiodsbeginningonorafter1January 2011.

IAS24RelatedPartyDisclosures(2009):Therevisedstandardchangesthedefinitionofarelated partyandalsodisclosurerequirementsforgovernment-relatedentitieswerechanged.

IFRIC19ExtinguishingFinancialLiabilitieswithEquityInstruments(2009)

Thesechangesdon’thaveasignificanteffectontheconsolidatedfinancialstatementsofAccessHoldingfor2011.

Otherstandardsorinterpretationsoramendmentstoexistingstandardsandinterpretationswhichbecameeffectivein2011hadnosignificantimpactontheGroup’sfinancialstatements.

New Accounting PronouncementsAccessHoldinghasnotearlyadopted:

IFRS9Financialinstruments:ClassificationandMeasurement-On12November2009,theIASB issuedIFRS9“Financialinstruments”asthefirststepinitsprojecttoreplaceIAS39“Recognition andMeasurement”.IFRS9replacespartsofIAS39relatingtotheclassificationandmeasurement

68

General information


offinancialassets.IFRS9introducesnewrequirementsforclassifyingandmeasuringfinancialassets. Thoserequirementsmustbeappliedstarting1January2015(originaleffectivedatewaschanged from1January2013to1January2015),withearlieradoptionpermittedincludingfor2009.The IASBintendstoexpandIFRS9toaddnewrequirementsforclassifyingandmeasuringfinancial liabilities,derecognizingoffinancialinstruments,impairment,andhedgeaccounting.IFRS9is optionalinearlieryears.AtthemomenttheGroupisevaluatingthepotentialimpactontheresults oftheGroup’soperations.

On28October2010theIASBalsoissuedtherequirementsunderIFRS9forfinancialliabilityaccounting. GiventhecurrentstructureofthefinancialstatementsoftheGroupthisstandardwillhaveno materialimpactonthefinancialliabilities.

On7October2010theIASBissuedtherevisedIFRS7.Therevisedstandardenhancesdisclosures abouttransfersoffinancialassets.Giventhecurrentstructureofthefinancialstatementsofthe Grouptheseamendmentswillhavenomaterialimpactonthefinancialliabilities.

InMay2011theIASBissuedIFRS10“ConsolidatedFinancialStatements”,IFRS11“JointArrange- ments”,IFRS12“DisclosureofInterestinOtherEntities”andIFRS13“FairValueMeasurement” whichallhaveaneffectivedateof1January2013.AdditionallytheIASBissuedIAS27“Separate FinancialStatements(2011)”whichsupersedesIAS27(2008)andIAS28“InvestmentsinAssociates andJointVentures(2011)”whichsupersedesIAS28(2008)alsowithaneffectivedateof1January 2013.ThesestandardshaveyettobeendorsedbytheEU.AtthemomenttheGroupisevaluating thepotentialimpactontheresultsoftheGroup’soperations.

On16June2011,theIASBissuedamendmentstoIAS1“PresentationofFinancialStatements”.The presentationofothercomprehensiveincomewaschangedwitheffectivedateof1June2011.Given thecurrentstructureofthefinancialstatementsoftheGrouptheseamendmentswillhavenomaterial impactonthefinancialliabilities.

On20December2010,theIASBissuedamendmentstoIAS12“IncomeTaxes”regardingthedeferred taxesandtherecoveringofUnderlyingAssetswitheffectivedateof1January2012.Giventhecurrent structureofthefinancialstatementsoftheGrouptheseamendmentswillhavenomaterialimpacton thefinancialliabilities.

On16December2011,theIASBissuedamendmentsIAS32“FinancialInstruments:Presentation”. ThechangesaddressOffsettingFinancialAssetsandFinancialLiabilitieswitheffectivedate1January 2014.GiventhecurrentstructureofthefinancialstatementsoftheGrouptheseamendmentswill havenomaterialimpactonthefinancialliabilities.

AllotherStandardsandInterpretationswhichwillbeeffectiveafter2011arenotapplicabletotheGroup’soperations.ManagementbelievetheadoptionoftheseStandardsandInterpretationswillnothaveasignificantimpactontheresultsoftheGroup’soperations.

Amendmentstoexistingstandardsandinterpretationsthatarenotyeteffectivehavenotbeenthesub-jectofearlyadoptionatAccessHolding.Entitiesshallapplythenewstandards,amendmentstoexistingstandardsandinterpretationsforannualperiodsbeginningonoraftertheeffectivedate.

Inprinciple,thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,unlessIFRSrequirerecognitionatfairvalue.ReportingandvaluationareundertakenontheassumptionthattheCompanywillcontinuetooperate.AllestimatesandassumptionsrequiredforreportingandvaluationinconformitywithIFRSarebestestimatesundertakeninaccordancewiththeapplicablestandards.

69


Thepreparationofthefinancialstatementsandthevaluationofassetsandliabilitiesaretoacertainextentbasedonassumptionsandestimatesofthemanagement,whichmaydifferfromactualvalue.

(2) Compliance with German lawAccessMicrofinanceHoldingAGisaparentcompanyofsubsidiarieswhicharebanksorfinancialinstitutions.Therefore,AccessHoldingqualifiesasabankforaccountingpurposesaccordingtosection340ipara.3HGB(GermanCommercialCode)andhastopresenttheGroup’sconsolidatedfinancialstatements.

However,forsupervisorypurposesAccessHoldingdoesnotqualifyasabankaccordingtotheGermanBankingAct(KWG)andisthereforenotsupervisedbytheFederalFinancialSupervisoryAuthority(BaFin).InconformitywiththeregulationssetforthbytheFederalFinancialsupervisoryauthority(BaFin),noloansareissuedbyAccessHoldingtocounterpartiesthatdonotqualifyassubsidiariesaccordingtosection1para.7oftheGermanBankingAct(KWG).

AccessGroup’sconsolidatedfinancialstatementshavebeenpreparedinaccordancewithIFRSpursuanttosections315apara.3inconjunctionwithsection315apara.1oftheHGB.Accordingtosection315HGBamanagementreportwasprepared.

AccessMicrofinanceHoldingAGisnotacapitalmarket-orientedparentcompany.Accordinglypresen-tationoftheconsolidatedfinancialstatementsasof31December2011inconformitywithIFRShasbeenundertakenonavoluntarybasis.

TheconsolidatedfinancialstatementsoftheGroupforthefinancialyear2011willbeapprovedforissuebythegeneralassemblyofshareholderson23July2012.Neithertheentity‘sownersnorothershavethepowertoamendthefinancialstatementsafterissue.”

(3) ConsolidationSubsidiariesTheconsolidatedfinancialstatementscomprisethefinancialstatementsofAccessHoldinganditssubsi-diariesasof31December2011.SubsidiariesareallcompanieswhicharecontrolledbyAccessHolding,i.e.forwhichAccessHoldingcandeterminethefinancialandoperatingpoliciesandisabletoexercisecontrolovertheminordertobenefitfromtheiractivities.ThisisthecaseforcompaniesinwhichAccess-Holdingholdsmorethan50%ofthevotingshares.NewsubsidiariesarefullyconsolidatedfromthedatewhencontrolistransferredtotheGroup.Theyaredeconsolidatedfromthedatethatcontrolceases.

Inter-companytransactions,balancesandintragroupgainsontransactionsbetweengroupcompaniesareeliminated.Intragrouplossesarealsoeliminatedunlessthetransactionprovidesevidenceofimpairmentoftheassettransferred.

Theintegrationofthesubsidiariesintotheconsolidatedfinancialstatementsisbasedonconsistentaccountingandvaluationmethodsforsimilartransactionsandotheroccurrencesundersimilarcircum-stances.

AssociatesAssociatesareentitiesoverwhichAccessHoldinghassignificantinfluencebutnotcontrol.

Investmentsinassociatesareaccountedforbytheequitymethodandareinitiallyrecognisedatcost.TheGroup’sinvestmentinassociatesincludesgoodwill(netofanyaccumulatedimpairmentloss)identifiedonacquisition.

70


TheGroup’sshareofitsassociates’post-acquisitionprofitsorlossesisrecognisedintheconsolidatedincomestatement;itsshareofpost-acquisitionmovementsisrecognisedinreserves.Thecumulativepost-acquisitionmovementsareadjustedagainstthecarryingamountoftheinvestment.WhentheGroup’sshareoflossesinanassociateequalsorexceedsitsinterestintheassociate,includinganyotherunsecuredreceivables,theGroupdoesnotrecognisefurtherlosses,unlessithasincurredobligationsormadepaymentsonbehalfoftheassociate.

IntragroupgainsontransactionsbetweentheGroupanditsassociatesareeliminatedtotheextentoftheGroup’sinterestintheassociates.Intragrouplossesarealsoeliminatedunlessthetransactionpro-videsevidenceofanimpairmentoftheassettransferred.Forpreparationofconsolidatedfinancialstate-ments,equalaccountingpolicesforsimilartransactionsandothereventsinsimilarcircumstancesareused.

Dilutiongainsandlossesinassociatesarerecognisedinequity.

TheclassificationofentitiesasAssociatesisdescribedinnote23.

Transactions and non-controlling interestsTheGroupappliesapolicyoftreatingtransactionswithnon-controllinginterestsastransactionswithequityownersoftheGroup.Forpurchasesfromnon-controllinginterests,thedifferencebetweenanyconsiderationpaidandtherelevantshareacquiredofthecarryingvalueofnetassetsofthesubsidiaryisrecordedinequity.Gainsorlossesondisposalstonon-controllinginterestsarealsorecordedinequity.

Interestsintheequityofsubsidiariesnotattributabletotheparentarereportedinconsolidatedequityasnon-controllinginterest.Profitsorlossesattributabletonon-controllinginterestsarereportedintheconsolidatedcomprehensiveincomeasprofitorlossattributabletonon-controllinginterests.

Business combinationsAccessHoldingusestheacquisitionmethodtoaccountforbusinesscombinations.Theconsiderationtransferredfortheacquisitionofasubsidiaryisthefairvaluesoftheassetstransferred,theliabilitiesincurredtotheformerownersoftheacquireeandtheequityinterestsissuedbythegroup.Theconside-rationtransferredincludesthefairvalueofanyassetorliabilityresultingfromacontingentconsiderationarrangement.Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabusinesscombinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate.Thegrouprecognisesanynon-controllinginterestintheacquireeonanacquisition-by-acquisitionbasis,atthenon-controllinginterest’sproportionateshareoftherecognisedamountsofacquiree’sidentifiablenetassets.

Ifthebusinesscombinationisachievedinstages,theacquisitiondatefairvalueoftheacquirer’spre-viouslyheldequityinterestintheacquireeisre-measuredtofairvalueattheacquisitiondatethroughprofitorloss.

Goodwillisinitiallymeasuredastheexcessoftheaggregateoftheconsiderationtransferredandthefairvalueofnon-controllinginterestoverthenetidentifiableassetsacquiredandliabilitiesassumed.Ifthisconsiderationislowerthanthefairvalueofthenetassetsofthesubsidiaryacquired,thediffe-renceisrecognisedinprofitorloss.

(4) Accounting PoliciesRevenue recognition and Interest Income and ExpenseInterestincomeandexpenseforallinterest-bearingfinancialinstruments,exceptforthoseclassifiedasheldfortradingordesignatedasatfairvaluethroughprofitorloss,arerecognisedwithin‘interestincome’and‘interestexpense’intheincomestatementusingtheeffectiveinterestmethod.

71


Onceafinancialassetoragroupofsimilarfinancialassetshasbeenwrittendownasaresultofanim-pairmentloss,interestincomeisrecognisedusingtherateofinterestusedtodiscountthefuturecashflowsforthepurposeofmeasuringtheimpairmentloss.Forloanswherethereisobjectiveevidencethatanimpairmentlosshasbeenincurred,theaccrualofinterestincomeisterminatednotlaterthan90daysafterthelastpayment.Paymentsreceivedinrespectofwritten-offloansarerecordedintheconsolidatedstatementsofincomeasacomponentoftheprovisionforcreditlosses.

Loan related feesFeesandcommissionsarerecognisedonanaccrualbasiswhentheservicehasbeenprovided.Loancommitmentfeesforloansthatarelikelytobedrawndownaredeferred(togetherwithrelateddirectcosts)andrecognisedasanadjustmenttotheeffectiveinterestrateontheloan.

Commissionandfeesarisingfromnegotiating,orparticipatinginthenegotiationof,atransactionforathirdparty–suchasthearrangementoftheacquisitionofsharesorothersecuritiesorthepurchaseorsaleofbusinesses–arerecognisedoncompletionoftheunderlyingtransaction.

Disclosure of financial assetsTheGroupallocatesfinancialassetstothefollowingIAS39categories:loansandreceivablesandavailable-for-salefinancialassets.Managementdeterminesthecategorizationofitsfinancialinstru-mentsatinitialrecognition.

Financialassetsareclassifiedascashandcashequivalents,loansandadvancestocustomers,invest-mentsavailableforsaleandotherfinancialassets.

Thefairvalueofeachclassoffinancialinstrumentcorrespondstoitsbookvalue.Seealsonote43.

Cash and cash equivalentsCashandcashequivalentscomprisecashathandandbalanceswithlessthanthreemonths’originalmaturity.Cashandcashequivalentsaredesignatedasavailableforsalefinancialassetsandmeasuredatfairvalue.

Loans and advances to customersLoansandadvancestocustomersarenon-derivativefinancialassetswithfixedordeterminablepay-mentsthatarenotquotedinanactivemarket.TheyarisewhentheGroupprovidesmoneydirectlytoadebtorwithnointentionoftradingthereceivable.

Loansandreceivablesareinitiallyrecognisedatfairvalueplustransactionscosts;subsequentlytheyaremeasuredatamortisedcostusingtheeffectiveinterestmethod.Ateachbalancesheetdateandwheneverthereisevidenceofpotentialimpairment,theGroupassessesthevalueofitsloansandreceivables.Theircarryingamountmaybereducedasaconsequencethroughtheuseofanallowanceaccount.Iftheamountoftheimpairmentlossdecreases,theimpairmentallowanceisreducedaccord-ingly,andtheamountofthereductionisrecognisedintheincomestatement.Theupperlimitonthereductionoftheimpairmentisequaltotheamortisedcostswhichwouldhavebeenincurredasofthevaluationdateiftherehadnotbeenanyimpairment.

Afinancialassetisimpairedifobjectiveevidenceindicatesthatalosseventhasoccurredaftertheinitialrecognitionoftheasset,andthatthelosseventhadanegativeeffectontheestimatedfuturecashflowsofthatassetthatcanbeestimatedreliably.

Objectiveevidencethatfinancialassetsareimpairedcanincludedefaultordelinquencybyadebtor,restructuringofanamountduetotheGroupontermsthattheGroupwouldnotconsiderotherwise,

72


indicationsthatadebtororissuerwillenterbankruptcy,adversechangesinthepaymentstatusofbor-rowersintheGroupandeconomicconditionsthatcorrelatewithdefaults.Loansarerecognisedwhentheprincipalisadvancedtotheborrowers.LoansandreceivablesarederecognisedwhentherightstoreceivecashflowsfromthefinancialassetshaveexpiredorwheretheGrouphastransferredsubstantiallyallrisksandrewardsofownership.

Allloansandadvancestocustomersareclassifiedasloansandreceivables(LaR).Investments available for sale Availableforsalefinancialassetsarethosenonderivativefinancialassetsthataredesignatedasavailableforsaleorarenotclassifiedas(i)loansandreceivables,(ii)held-to-maturityinvestmentsor(iii)financialassetsatfairvaluethroughprofitorloss.Thosefinancialassetsaregenerallymeasuredatfairvaluewhichequalsacquisitioncostsattheacquisitiondate.Fairvaluesaredeterminedusingavaluationtechnique.Valuationtechniqueusedisbasedonobservablecurrentmarkettransactions.Changingoneormoreofthoseassumptionstoreasonablypossiblealternativeassumptionswouldnotchangefairvaluesignificantly.

Changesinthefairvalueofavailableforsalefinancialassetsarerecognisedinequity/othercompre-hensiveincomeuntilthefinancialassetsareeithersoldorbecomeimpaired.

DuemissingrelevanceforthefinancialstatementsofAccessHoldingdisclosuresregardingavailableforsaleassetswillonlybemadeinrespectofrelevancetotheGroup.

Held-to-maturity financial assetsHeld-to-maturityinvestmentsarenon-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturitiesthattheGroup’smanagementhasthepositiveintentionandabilitytoholdtomaturity,otherthan:(a) thosethattheGroupuponinitialrecognitiondesignatesasatfairvaluethroughprofitorloss;(b) thosethattheGroupdesignatesasavailableforsale;and(c) thosethatmeetthedefinitionofloansandreceivables.

Theseareinitiallyrecognisedatfairvalueincludingdirectandincrementaltransactioncostsandmea-suredsubsequentlyatamortisedcost,usingtheeffectiveinterestmethod.

Interestonheld-to-maturityinvestmentsisincludedintheconsolidatedincomestatementandreportedasinterestfromheldtomaturityfinancialassets.Inthecaseofanimpairment,theimpairmentlossisbeenreportedasadeductionfromthecarryingvalueoftheinvestmentandrecognisedintheconsoli-datedincomestatementas‘Netgains/(losses)oninvestmentsecurities’.

Property, plant and equipment (PPE)Allproperty,plantandequipmentisstatedathistoricalcostlessdepreciationandimpairmentlosses.Historicalcostincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheitems.

Intangible Assets:Acquiredcomputersoftwarelicencesarecapitalisedonthebasisofthecostsincurredtoacquireandbringtousethespecificsoftware.Thesecostsareamortisedonthebasisoftheexpectedusefullives.

GoodwillrepresentstheexcessofthecostofanacquisitionoverthefairvalueoftheGroup’sshareofthenetidentifiableassetsofacquiredsubsidiariesandassociatesatthedateofacquisition.Goodwillonacquisitionsofsubsidiariesisincludedinintangibleassets.Goodwillonacquisitionsofassociatesisincludedininvestmentsinassociates.

73


DepreciationDepreciationonproperty,plantandequipmentandintangibleassets(excludinggoodwill)iscalculatedusingthestraight-linemethodtoallocatetheircosttotheirresidualvaluesovertheirestimatedusefullives,asfollows:

Buildings15–40years Leaseholdimprovementsshorterofleasetermorusefullife Computers2–5years Furniture5–10years Motorvehicles3–5years Otherfixedassets2–7years Landisnotdepreciated.

Theassets’residualcarryingvaluesandusefullivesarereviewed,andadjustedifappropriate,ateachbalancesheetdate.Bothassetsthataresubjecttodepreciationandlandarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecovera-ble.Anasset’scarryingamountiswrittendownimmediatelytoitsrecoverableamountiftheasset’scarryingamountexceedsitsestimatedrecoverableamount.Therecoverableamountisthehigheroftheasset’sfairvaluelesscoststosellandvalueinuse.Gainsandlossesondisposalsaredeterminedbycomparingproceedswithcarryingamount.Theseareincludedintheincomestatement.

Current and deferred income taxTheGroupissubjecttoincometaxesinnumerousjurisdictions.Significantjudgementisrequiredindeterminingtheworldwideprovisionforincometaxes.Therearemanytransactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertain.TheGrouprecognisesliabilitiesforanticipatedtaxauditissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpactthecurrentanddeferredincometaxassetsandliabilitiesintheperiodinwhichsuchdeterminationismade.

Thetaxexpensefortheperiodcomprisescurrentanddeferredtax.Taxisrecognisedintheincomestatement,excepttotheextentthatitrelatestoitemsrecogniseddirectlyinequity.Inthiscase,thetaxisalsorecognisedinequity.ThecurrentincometaxchargeiscalculatedonthebasisofthetaxlawsenactedorsubstantivelyenactedatthebalancesheetdateinthecountrieswheretheCompany’ssubsidiariesandassociatesoperateandgeneratetaxableincome.Managementperiodicallyevaluatespositionstakenintaxreturnswithrespecttosituationsinwhichapplicabletaxregulationissubjecttointerpretation.Itestablishesprovisionswhereappropriateonthebasisofamountsexpectedtobepaidtothetaxauthorities.

Deferredincometaxisrecognised,usingtheliabilitymethod,ontemporarydifferencesarisingbet-weenthetaxbasesofassetsandliabilitiesandtheircarryingamountsintheconsolidatedfinancialstatements.However,thedeferredincometaxisnotaccountedforifitarisesfrominitialrecognitionofanassetorliabilityinatransactionotherthanabusinesscombinationthatatthetimeofthetransac-tionaffectsneitheraccountingnortaxableprofitnorloss.Deferredincometaxisdeterminedusingtaxrates(andlaws)thathavebeenenactedorsubstantiallyenactedbythebalancesheetdateandareexpectedtoapplywhentherelateddeferredincometaxassetisrealisedorthedeferredincometaxliabilityissettled.

Deferredincometaxassetsincludingcarry-forwardtax-lossesarerecognisedonlytotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthetemporarydifferences,taxcreditsorunusedtaxlossescanbeutilised.Deferredincometaxisprovidedontemporarydifferencesarisingoninvestmentsinsubsidiariesandassociates,exceptwherethetimingofthereversalofthetemporarydifferenceiscontrolledbytheGroupanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

74


Loans from banks and other financial institutions and Customer accountsLiabilitiesfrombanksandotherfinancialinstitutionsandCustomeraccountsarerecognisedinitiallyatfairvaluenetoftransactioncostsincurred.Borrowingsaresubsequentlystatedatamortisedcost;anydifferencebetweenproceedsnetoftransactioncostsandtheredemptionvalueisrecognisedintheincomestatementovertheperiodoftheborrowingsusingtheeffectiveinterestrate.

Allfinancialliabilitiesarederecognisedwhentheyareextinguished–thatis,whentheobligationisdischarged,cancelledorexpires.

LoansfrombanksandotherfinancialinstitutionsandCustomeraccountsaredesignatedasfinancialliabilitiesatamortisedcost.

Trade and other payables and Other LiabilitiesGenerally,TradeandotherpayablesandOtherLiabilitiesarerecognisedinitiallyatfairvaluenetoftransactioncostsandsubsequentlymeasuredatamortisedcost.

FinancialliabilitiesclassifiedastradeandotherpayablesorOtherLiabilitiesaregenerallydesignatedasfinancialliabilitiesatamortisedcost.

LeasesLeasesinwhichasignificantportionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesrecei-vedfromthelessor)arechargedtotheincomestatementonastraight-linebasisovertheperiodofthelease.TheGroupleasesofficepremises.

Agreementswhichtransfertothelesseesubstantiallyalltherisksandrewardsincidentaltotheowner-shipofassets,butnotnecessarilyalegaltitle,areclassifiedasfinanceleases.AccessHoldingdoesnotleaseassetsinfinanceleases.

Government Grants:AccessHoldingappliestheincomeapproachunderwhichagrantisrecognisedinprofitorlossoveroneormoreperiods.InmostcasestheperiodsoverwhichAccessHoldingrecognisesthecostsorexpensesrelatedtogovernmentgrantsarereadilyascertainable.Thusgrantsinrecognitionofspecificexpensesarerecognisedinprofitorlossinthesameperiodastherelevantexpenses.Thereforegovernmentgrantsareneithershowninthestatementoffinancialpositions(balancesheet)norintheincomestatement(profit/loss).InlinewithIAS20.39informationregardinggrantsaredisclosedinthesenotes.

Share based paymentsAspartofthemanagementservicecontract,aperformancefeeispayabletoLFS.Asalternativetocashpayment,themanagementservicecontractprovidesforthepossibilitytoissueyoungsharetosettletheperformancefee.ThemanagementassumesthatthefeewillbesettledincashaccordingtoIFRS2.41pp.

(5) Critical Estimates and JudgementsEstimatesandjudgementsarecontinuallyevaluatedandarebasedonexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.TheGroupmakesestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,bydefinition,seldomequaltherelatedactualresults.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:

75


Associates:Associatesaresubjecttoimpairmentreview.TheGrouprecordsimpairmentlossesonassetsinthiscategorywhentheGroupbelievesthatthecarryingvaluemaynotberecoverable.Thedeterminationoftherecoverableamountintheimpairmentassessmentrequiresestimatesonmarketprice,pricesofcomparablebusinessesorothervaluationtechniques.

Loans and advances to customers:Eachbankregularlyreviewsitsloanportfoliostoassessimpairment.Indeterminingwhetheranimpairmentlossshouldberecordedinprofitorlossfortheyear,theGroupmakesjudgementsastowhetherthereisanyobservabledataindicatingthatthereisameasurabledecreaseintheestimatedfuturecashflowsfromaportfolioofloansbeforethedecreasecanbeidentifiedwithanindividualloaninthatportfolio.Thisevidencemayincludeobservabledataindicatingthattherehasbeenanadversechangeinthepaymentstatusofborrowersinagroup,ornationalorlocaleconomicconditionsthatcorrelatewithdefaultsonassetsinthegroup.TheGroupusesestimatesbasedonhistoricallossexperienceforassetswithcreditriskcharacteristicsandobjectiveevidenceofimpairmentsimilartothoseintheportfoliowhenschedulingitsfuturecashflows.Themethodologyandassumptionsusedforestimatingboththeamountandtimingoffuturecashflowsarereviewedregularlytoreduceanydifferencesbetweenlossestimatesandactuallossexperience.

Property, Plant and Equipment:TheGrouptestsannuallywhetherproperty,plantandequipmentsufferedanyimpairment,inaccordancewiththeaccountingpolicystatedabove.Therecoverableamountsofcashgeneratingunitshavebeendeterminedbasedonvalue-in-usecalculations.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalueinuse.

Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciationoramortization,ifnoimpairmentlosshadbeenrecognised.

Noproperty,plantandequipmentwereimpairedasat31December2011(2010:nil).

Intangible Assets:Ateachdateoftheconsolidatedstatementoffinancialposition,intangibleassetsincludinggoodwillarereviewedforindicationsofimpairmentorchangesinestimatedfutureeconomicbenefits.Ifsuchindicationsexist,theintangibleassetsareanalysedtoassesswhethertheircarryingamountisfullyrecoverable.Animpairmentlossisrecognisedifthecarryingamountexceedstherecoverableamount.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciationoramortization,ifnoimpairmentlosshadbeenrecognised.

Nointangibleassetswereimpairedasat31December2011(2010:nil).

Income Taxes:Forunusedtaxlossestheestimationoffutureprofitscanbeacriticalaccountingestimate.

(6) Foreign Currency TranslationFunctionalandpresentationcurrencyItemsincludedinthefinancialstatementsaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(“thefunctionalcurrency”).

76


ThefinancialstatementsarepresentedinEUR,whichisAccessHolding’sfunctionalandpresentationcurrency.

Transactions and balancesForeigncurrencytransactionsrelatedtosharedealsaretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedatesofthetransactionsorarebasedonactualmonthlyaverageforeignexchangeratesfordaytodaybusiness.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedintheincomestatement.

CurrencytranslationdifferencesonInvestmentinAssociatesarerecogniseddirectlyintheequitypositionandinothercomprehensiveincome.

SubsidiariesTheresultsandfinancialpositionsofthesubsidiarieswhosefunctionalcurrencyisnottheEURaretranslatedintothepresentationcurrencyasfollows:

Balancesheetitemsexcludingequitycomponentsaretranslatedattheclosingrateatthedateof thatbalancesheet;equitycomponentsaretranslatedatthehistoricalexchangerateofthefirst-time recognitioninGroupEquity.

ItemsoftheIncomeStatementandexpensesforeachincomestatementaretranslatedatthe averageexchangerateoftheyear(ortheoperatingperiod,ifnotafullyear).

Onconsolidation,exchangedifferencesarisingfromthetranslationofthenetinvestmentinforeignentitiesarerecognisedinshareholders’equityas“translationreserve”.Thereportingexchangeratesandaverageratesfortheperiodusedintheconsolidatedbalancesheetandtheconsolidatedincomestatementarelistedbelow.

NoneofthegroupcompaniesislocatedinahyperinflationeconomyasdefinedbyIAS29.

Thefollowingexchangerateswereappliedinthesefinancialstatements.

1 Euro equals Abbreviation 31/12/2010 Average 2011 31/12/2011

AzerbaijanNewManat AZN 1.06 n/a 1.02LiberianDollar LRD 95.42 93.23 93.23MalagasyAriari MGA 2,881.60 n/a 2,843.451000NigerianNaira NGN 0.20 0.21 0.21TajikSomoni TJS 5.84 6.42 6.16TanzanianShilling TZS 1,997.23 2,176.20 2,015.74ZambianKwacha ZMK 6,301.35 6,678.97 6,514.27UnitedStatesDollar USD 1.33 n/a 1.29

Thefollowingtableshowtheimpactofcurrencychangesby+/-10%oncurrencytranslationdifferencesandcashandcashequivalents.Currency Impact on currency translation differences -10% 0% +10%NGN 742,458 1,033,152 1,414,618LRD 638,401 1,033,152 1,515,624TJS 720,530 1,033,152 1,415,245ZMK 842,258 1,033,152 1,266,466TSH 829,828 1,033,152 1,281,659Impact on Cash and cash equivalents -10% 0% +10%USD 739,111 7,391,108 (739,111)

77


(7) Group companiesTheseconsolidatedfinancialstatementscontainthefullfinancialstatementsofAccessHolding,AccessBankLiberia(ABL),ABMicrofinanceBankNigeria(ABN),CJSCAccessBankTajikistan(ABTJ),AccessBankTanzaniaLtd(ABT),andABBankZambia(ABZ).

ABLwasincorporatedon1August2008underthelawsofLiberiaandopenedforbusinesson22January2009.ThesharecapitalwasUSD11,285,000asofDecember2011.Asof31December2011,AccessHoldingowned55.7%ofthesharesofABL(53.5%in2010).ThetotalinvestmentofAccessHoldingwasEUR4,444,990.11andEUR4,033,103.13andasof31December2011and31December2010,respectively.

ABNwasincorporatedon16May2008and,afterreceivingalicenseasaUnitlevelmicrofinancebankunderthelawsofNigeria,startedoperationson10November2008.Capitalisationwascompletedwithseveralinvestmentsofminorityshareholdersduring2010.AccessHoldingowned50.1%ofABN’ssharesasof31December2011(58.4%in2010).ThetotalinvestmentofAccessHoldingwasEUR3,935,857.52asof31December2011(EUR3,647,348.61asin2010).

ABTJwasincorporatedinMarch2010andstartedoperationson12April2010afterreceivingafullban-kinglicenseunderthelawofTajikistan.AccessHoldingowns52%ofABTJ’ssharesasof31December2011.ThetotalinvestmentofAccessHoldingwasEUR4,213,340.31asof31December2011(EUR4,213,340.31in2010).

ABTwasincorporatedinAugust2007andopeneditsdoorson21November2007.ThroughacapitalincreaseinOctober2011,AccessHoldingincreaseditsshareholdingfrom46.98%to50.73%.Conse-quently,thestatusforABTchangedin2011,fromanassociatetoasubsidiarycompany.Attheendof2011,thetotalinvestmentofAccessHoldinginABTstoodatEUR3.3million.

Thestep-acquisitionaccordingtoIFRS3wasproceededlikethis:CarryingamountofpreviouslyheldinterestunderIAS28 2,040,158.18Fairvalueofpre-existingstakes 1,533,502.33Loss of de-recognition -506,655.85CashConsiderationtransferred 583,122.11Considerationtransferredtotal 2,116,624.44ThelossofEUR506.656wasrecognizedasNetprofit(loss)fromAssociates.

Goodwillwasrecognizedasfollows:Considerationtransferredtotal 2,116,624.44Non-controllinginterest 2,019,684.24Sub-total 4,136,308.68Fairvalueofnetassets 4,096,722.59Goodwill 39,586.09TheGoodwillofEUR39,586isshownaspartoftheintangibleassets.

ABZwasincorporatedin2011andoperationsstartedon18October2011afterreceivingafullbankinglicenseundertheZambianlaw.In2011,AccessHoldinginvestedintotalEUR2,318,307.75,representing51.0%ofthetotalsharecapital.

Apartfromtheequityinvestmentsandthetreatmentofequityandprofit(loss)ofminorityinvestors,therearenoothertransactionswithintheGroup,whicharenotshownintheConsolidatedFinancialStatements.

78


In2011theaveragenumberofstaffforallconsolidatedcompanieswas1,231(2010:564).Thefollowingtableshowsthenumberofbusinessloanofficersandbankingserviceofficers(allaverage).

Number of staff AverageNumber 1,231 #BusinessLoanOfficers 494 #BankingServicesOfficers 201

(8) Portfolio reporting on statement of consolidated income

Earningspershare,calculatedinaccordancewithIAS33,arebasedontheconsolidatedsurplusattribu-tabletoAccessHoldingshareholders.Sofar,noconversionandoptionrightswereoutstandingduringthecurrentfinancialyear.Thefigurefordilutedearningspersharewasthereforeidenticaltotheundilutedfigure.Thedenominatorfortheearningpershareisthenumberofoutstandingsharesbytheendoftheperiod.

Increasesinthenetinterestincome,thefeecommissionincomeandtheoperatingexpensesareduetothegrowthoftheconsolidatedbanksandthenewlyconsolidatedbanks.PleasenotthatABTwasconsoli-datedstartingfrom1November2011.

EUR Note 2011 2011 2010 Holding ABL ABN ABTJ ABZ ABT Total Total

Interestincome 10 73,422 2,295,159 7,122,908 2,558,596 63,839 758,049 12,871,974 5,295,709

Interestexpense 11 (85,214) 1,379,171) (388,200) (4,948) (130,196) (1,987,728) (83,191)Net interest income beforeprovision for impairment losseson interest bearing assets 73,422 2,209,945 5,743,738 2,170,396 58,891 627,853 10,884,246 5,212,518

Impairmentchargeforloanlosses 12 (138,687) (51,882) (309,656) (7,695) (22,405) (530,326) (332,221)

Net interest income 73,422 2,071,258 5,691,856 1,860,741 51,196 605,448 10,353,920 4,880,297

Feeandcommissionincome 13 333,613 181,818 21,039 9,919 63,319 609,708 877,108

Feeandcommissionexpense - - - (17,766) - (17,766) (14,449)

Netfeeandcommissionincome - 333,613 181,818 3,273 9,919 63,319 591,942 67

Netprofit(loss)fromforeign

exchangeoperations 14 10,814 84,092 - 10,597 55,255 405 161,163 1,065

Netprofit(loss)fromsaleof

investmentsavailable-for-sale 15 - 36,768

Netprofit(loss)fromAssociates 16 2,328,585 2,328,585 4,100,934

Otherincome 664 779 96,501 994 98,938 1,139

Net non-interest income 2,340,063 417,705 967,899 14,649 161,675 64,719 3,966,709 5,002,566

Net operating income 2,413,485 2,488,963 5,873,674 1,875,390 212,871 670,166 13,534,548 9,882,862

Personnelexpenses (942,207)(2,551,371) (1,217,897) (339,120) (344,240) (5,394,835) (2,639,267)

Depreciationandamortization -

Otheradministrativeexpenses 17 (387,648) (284,074) (235,476) (80,679) (61,450) (1,049,326) (512,311)

Operatingexpenses (1,403,648) (1,596,353) (1,982,399)(1,039,771) (390,657) (321,003) (6,733,832) (4,611,455)

Profit(Loss)fortheperiod (1,403,648) (2,926,208) (4,817,844)(2,493,143) (920,457) (726,692)(13,287,993) (7,763,033)

CurrentIncometaxexpense 19 1,009,837 (437,246) 1,055,830 (617,753) (597,586) (56,526) 356,555 2,119,830

DeferredTaxIncome(Expense) 18 (17,440) (26,649) (44,089) (449,003)

Income tax expense 927,019 (143,739) 231,658 1,222 1,016,160 (336,588)

Profit (loss) after tax 1,936,856 (437,246) 894,651 (644,402) (365,928) (55,304) 1,328,627 1,334,239

Profit(loss)attributableto

non-controllinginterests 20 (193,700) 446,789(309,313) (179,305) (27,265) (262,794) (479,700)

Profit (loss) attributable to

shareholders 1,936,856 (243,546) 447,862 (335,089) (186,624) (28,039) 1,591,421 1,813,939

79


(9) Portfolio reporting on comprehensive income


Profit for the year 1,936,856 (437,246) 894,651 (644,402) (365,928) (55,304) 1,328,627 1,334,239

Exchangedifferenceson

translationofforeign

operations 626,101 (81,448) 125,557 1,537 (12,033) (26,414) 633,301 771,841

Shareofothercomprehensive

income/(expense)of

associates,netoftax - - - - (2,696)

Other comprehensive

income of the year, net of tax 626,101 (81,448) 125,557 1,537 (12,033) 26,414) 633,301 769,145

Totalcomprehensiveincome

oftheyear 21 2,562,957 (518,693) 1,020,208 (642,865) (377,961) (81,718) 1,961,927 2,103,384

Totalcomprehensiveincome

attributableto:

Equityholdersoftheparent

entity(total) 2,562,957 (288,912) 510,716 (334,290) (192,760) (41,431) 2,216,280 2,624,068

Non-controllinginterests

(total) - (229,781) 509,492 (308,575) (185,201) (40,287) (254,353) (520,684)

80


(10) Portfolio reporting on statement of financial position

Thedifferencesbetween2010and2011inthestatementoffinancialpositioncanbeexplainedtoalargeextentbythegrowthoftheconsolidatedbanksandthenewlyconsolidatedABT.


ASSETS

Cashandcashequivalents 22 600,762 5,905,811 803,647 954,684 684,302 6,828,861 15,778,067 6,512,898

Loansandadvancestobanks 2,891,644 2,891,644 3,533,758

Investmentsavailableforsale 125,911 1,606,364 1,732,275 59,048

InvestmentsinAssociates 23 15,614,416 15,614,416 15,362,513

Loansandadvancestocustomers 24 4,069,830 16,943,185 9,158,768 400,124 15,093,544 45,665,451 13,162,693

Intangibleassets 25 39,586 683,563 878,400 152,118 713,039 2,466,706 638,330

Property,plantandequipment 26 1,966,970 884,670 1,202,201 1,041,925 570,648 5,666,414 3,616,558

Currentincometaxasset 27 588 588 1,208

Deferredincometaxasset 28 969,902 205,259 237,515 358,982 1,771,657 506,947

ReceivablesfromSubsidiaries - -

Otherfinancialassets 2,065,021 2,065,021 2,500,000

Othernon-financialassets 29 29,271 677,642 1,357,127 302,538 153,838 1,896,248 4,416,663 3,945,180

Total assets 19,319,545 13,303,815 20,319,800 15,388,236 4,276,185 25,461,322 98,068,902 49,839,134

LIABILITIES

Loansfrombanksandother

financialinstitutions 30 8,119,916 8,119,522 2,726,542 18,965,980 4,718,940

Customeraccounts 31 5,094,305 2,172,687 237,941 85,246 15,674,819 23,264,997 3,526,836

Debtsecuritiesissued - -

Currentincometaxpayable 18,136 18,136 -

Tradeandotherpayables 32 691,656 3,150,851 73,626 679,428 4,595,561 469,868

Currentincometaxliability -

Deferredincometaxliability 33 194,398 194,398 765,325

Othernon-financialliabilities 34 413,722 417,613 1,444,061 2,275,397 971,410

Total liabilities 886,054 5,508,028 13,461,590 8,775,076 158,872 20,524,850 49,314,470 10,452,379

EQUITY

Sharecapital 35 5,839,017 5,839,017 5,513,250

Capitalreserve 36 21,979,026 21,979,026 20,858,388

Revaluationreserve - 26

Currencytranslationdifferences 37 955,635 (49,053) 144,260 1,838 (6,137) (13,392) 1,033,152 422,000.38

Retainedearnings 38 6,810,826 (395,690) (347,470) (614,154) (186,624) (16,879) 5,250,009 3,520,935

Otherreserves 39 (19,570) 22 114,874 95,325 (19,570)

Total equity 35,564,934 (444,743) (203,188) (612,316) (192,760) 84,603 34,196,529 30,295,029

Share of Minority Shareholders 40 44.30% 49.94% 48.00% 49.00% 49.30%

Equityattributableto

non-controllinginterests 40 3,453,534 3,424,990 3,174,3172,071,383 2,433,681 14,557,904 9,091,726

Total group equity 48,754,434 39,386,755

Total liabilities and equity 98,068,903 49,839,134

81


(11) Interest income Interestincomeisbrokendownasfollows:

(14) Fee and commission incomeFeeandcommissionincomeisbrokendownasfollows:

(12) Interest expense Interestexpenseisbrokendownasfollows:

(13) Impairment charges ImpairmentchargeswereestablishedforloanstocustomersinABL,ABN,ABTJ,ABTandABZ.

2011 2010 Interest From loans From bank Interest income Interest income Income to customers accounts available-for-sale held-to-maturity Total TotalAH 71,188 2,235 - 73,422 59,372ABL 2,295,159 2,295,159 1,761,030ABN 2,300,056 257,605 935 2,558,596 2,690,608ABTJ 7,117,311 5,598 - 7,122,908 784,698ABZ 26,341 37,497 63,839 -ABT 741,479 16,571 758,049 -Total 12,551,533 282,008 37,497 935 12,871,974 5,295,709

Fee and Loans and Other non- Other non- 2011 2010 commission advances Customer financial financial Income to customers accounts assets liabilities Total TotalABL - 333,543 - - 333,613 346,408ABN - 21,039 - - 21,039 437,644ABTJ - 181,818 - 181,818 93,056ABZ 9,035 884 - 9,919 -ABT 9,966 47,726 - 5,628 63,319 -Total 19,001 584,126 884 5,628 609,708 877,108

FeeandcommissionexpensesamountingtoEUR17,766wererealizedin2011(2010:EUR14,449).

Loans from banks 2011 2010 Interest Customer and other financial expenses accounts institutions Total TotalABL (85,214) - (85,214) (36,319)ABN (95,783) (1,283,388) (1,379,171) (37,928)ABTJ (28,051) (360,148) (388,200) (8,944)ABZ (4,948) - (4,948) -ABT (98,307) (31,890) (130,196) -Total (209,048) (1,643,536) (1,987,728) (83,191)

2011 2010Impairment chargefor loan losses (530,326) (332,221) Total (530,326) (332,221)

82


83

(15) Net profit (loss) from foreign exchange operationsThenetforeignexchangegainduetoforeigncurrencytransactionsisasfollows:Net profit from 2011 2010foreign exchange operationsAH 10,814 20,372ABL 84,092 (14,835)ABTJ 10,597 (4,472)ABZ 55,255 -ABT 405 -Total 161,163 1,065

(16) Net profit from investments available-for-saleNonetprofitfrominvestmentsavailable-for-saleaccruedin2011(2010:EUR36,768).

(17) Net profit (loss) from AssociatesAccessHoldingrecognisesitsshareintheprofitorlossofAssociates.Net profit (loss) 2011 2010from AssociatesABA 2,804,481 4,088,279ABM 30,761 2,944ABT (506,656) 9,711Total 2,328,585 4,100,934

AccessBank Azerbaijan:Seealsonote24forinformationontheAssociate.AccessBankAzerbaijan(ABA)reportedanetprofitofEUR16,966,005.11.Withashareholdingof16.53%,theprofitattributabletoAccessHoldingamountstoEUR2,804,480.64.

AccèsBanque Madagascar S.A.:Seealsonote24forinformationontheAssociate.AccèsBanqueMadagascarS.A.(ABM)reportedanetprofitofEUR69,910.42for2011.Withashareofnow44.00%,theportionoftheprofitattributabletoAccessHoldingamountstoEUR30,760.59.

In2011theaveragenumberofstaffinthetwoassociatedcompanieswas1,794(2010:1,703includingABT).

Accessbank Tanzania:DuetothefullconsolidationofABTalossofEUR506,656wasrecognizedduetothederecognitionofthepreviousheldshares(seenote7).

(18) Other administrative expensesThebreakdownofoperatingexpensesisasfollows:

Other administrative expenses 2011 2010OfficeRent (626,777) (502,706)Legal,auditandadvisoryexpenses(619,566)(592,605)Insurance (173,632)(66,098)CommunicationandITexpenses (444,598)(521,857)Advertisement (596,058)(374,077)TravelCosts (632,021) -Otheradministrativeexpenses (3,641,179)(2,554,111)Total (6,733,832) (4,611,455)


Thefollowingtableshowsabreakdownofoperatingexpensebyentity.Other administrative expenses 2011 2010AH (1,403,648) (984,098)ABL (1,596,353) (1,008,425)ABN (1,982,399) (2,004,175)ABTJ (1,039,771) (614,755)ABZ (390,657) -ABT (321,003) -Total (6,733,832) (4,611,454)

AtthelevelofAccessHolding,operatingexpensescanbebrokendownasfollows:Operating Expenses, AccessHolding 2011 2010ManagementServiceContract(BasicFee)(860,395) (460,133)PerformanceFee (172,079)(92,026)Legalandadvisoryexpenses (139,771)(105,530)AuditFee (107,105)(69,470)Insurance (25,333)(25,333)TravelCosts (83,514)(100,677)Otheradministrativeexpenses (15,452)(130,929)Total (1,403,648) (984,098)

AManagementServiceContract(MSC)wasexecutedbetweenAccessHoldingandLFSwherebythelattershallsecondtwoManagementBoardMembersandotherexecutiveandadministrativestaffasrequiredtofulfilitsmanagementmandate.LFSwillalsoenableAccessHoldingtodrawuponotherresourcesofLFSasrequiredtoperformitsholdingservicesandfunctions.

ThemanagementservicefeeconsistsofabasicfeeandaperformancefeerelatedtothecapitalofAccessHolding.

In2011,severalperformanceindicatorsweremet,resultinginaperformancefeeofEUR172,079gross.TheperformancefeehasbeenrecognisedasasharedbasedpaymentaccordingtoIFRS2.SettlementofthispaymentiscashaccordingtoIFRS2.41pp.

(19) Current income tax expenseThefollowingtableshowsthereconciliationbetweenexpectedandeffectiveincometaxexpense:Tax Reconciliation 2011 2010Resultfromordinarybusinessactivities 356,555 2,119,830Domestictaxrate 30.18% 30.18%Expectedtaxexpense 107,608 639,765Tax rate differences Tax effects of expenses that are not deductible fortaxpurposesaccordingto§8bcorporateincometaxlaw 42,320 61,692Taxeffectsfromdifferencesoutofrevenuetaxbase Gainsnotsubjecttotax -107,608 -639,765Valuation of deferred tax assets Increaseofvaluationofunusedtaxlosses -89,141 -123,062Effectsnotidentifiedwithaspecialperiod Deferredprovisionfortaxonoverseasdividends -525,428 397,958Notdeductible/creditablewithholdingtaxortaxacc. -399,822 449,003§8bcorporateincometaxorcapitalgaintaxTax income (expense) -972,071 785,591Averageeffectivetaxrate -272.6% 37.1%

DeferredandcurrenttaxincomeandexpensesamounttototalgainofEUR972,071.

84


85

Thedomesticincometaxrate,includingcorporatetax,solidaritysurcharge,andtradetax,usedforcalculatingdeferredtaxassetsandliabilitieswas30.18%fortheyearsendedDecember31,2011,2010,2009and2008.

(20) Deferred tax incomeDeferredtaxincomeamountstoEUR1,016,160.

Deferred tax income 2011 Originationandreversalsoftaxlosses 89,141Originationandreversalsofoutsidebasisdifferences 927,019Total 1,016,160

OriginationandreversalsofoutsidebasisdifferencesarerelatedtowithholdingtaxinAzerbaijanandchangesoftheinterpretationoftaxlaws.

(21)Loss attributable to non-controlling interestsThelossofsubsidiariesattributabletonon-controllinginterestsincludesthefollowingitems:Profit (loss) attributable 2011to non-controlling ABL ABN ABTJ ABZ ABT Total interestsTotalprofit(loss) (437,246) 894,651 (644,402) (365,928) (55,304) (608,229)Minorityinterest 44.30% 49.94% 48.00% 49.00% 49.30% -Profit(loss)attributableto (193,700) 446,789 (309,313) (179,305) (27,265) (262,794)non-controllinginterestsProfit (loss) attributable (243,546) 447,862 (335,089) (186,624) (28,039) (345,435)to AccessHolding

(22) Other comprehensive incomeTheothercomprehensiveincomemainlyconsistsofcurrencytranslationdifferences.DeferredincometaxesrelatedtocurrencyrevaluationamounttoEUR5,576.

Notes to the Statement of financial position(23) Cash and Cash EquivalentsCashandCashEquivalentswerecomprisedasfollows:Cash and cash equivalents 2011 2010AH 600,762 1,629,256ABL 5,905,811 4,107,099ABN 803,647 569,017ABTJ 954,684 207.525ABZ 684,302 -ABT 6,828,861 -Total 15,778,067 6,512,898

CashandcashequivalentsheldbysubsidiariesarenotavailableforusebytheGroup.

(24) Investments in AssociatesAccessHoldingcurrentlyholdsinvestmentsintwoAssociates:AccessBankAzerbaijan(ABA)andAccèsBanqueMadagascarS.A.(ABM).

Associate 31/12/2010 Derecognition Dividends Share in Profit Currency revaluation 31/12/2011ABA 11,739,777.02 0.00 -933,948.60 2,804,480.64 369,534.85 13,979,843.92ABM 1,582,577.98 0.00 0.00 30,760.59 21,233.13 1,634,571.70ABT 2,040,158.18 -2,040,158.18 0.00 0.00 0.00 0.00Total 15,362,513.18 -2,040,158.18 -933,948.60 2,835,241.23 390,767.99 15,614,415.62

RegardingthederecognitionofABTpleaserefertonote(7).


TheGroup’sshareoftheresultsofitsprincipalassociates,allofwhichareunlisted,anditsaggregatedassetsandliabilitiesareasfollows: Assets Liabilities Revenues Profit/Loss TEUR TEUR TEUR TEURABA 376,857 293,026 60,845 16,966ABM 25,407 22,308 10,948 70Total 402,264 315,334 71,793 17,036

AccessBank AzerbaijanClassification as AssociateAccessHoldingholdsastakeof16.53%inABA.Togetherwithitsownshareholders(IFC,KfWandLFS),AccessHoldingowns60%ofthesharesofABA.ThroughexercisingofitsvotingrightsintheShareholders’Assembly,itsrepresentativeontheboardofdirectors,andthroughthecommonmanagementcompany,AccessHoldingexertsasignificantinfluenceonABA.ABAismanagedbyLFS(whichalsoholdsadirectequitystake)underamanagementservicecontract.

Development of the Associate in 2011During2011,ABA’sassetsgrewby5%inlocalcurrency(9%inEUR)toEUR377million.Thebank’smainbusinessisprovidingloanstomicroandsmallbusinesses.Theloanportfolioamountedto119,501loansforEUR294million(2010:122,519loansforEUR259million).EquityamountedtoEUR83.8million(2010:EUR70.4million).In2011,netprofitinEURdecreasedby31%toEUR16,966million;returnonaverageequityamountedto24%(2010:59%).Asof31December2011,ABAoperated30(2010:28)branchesandemployed1,344(2010:1,207)staff.ThebankhasreceivedaBB+rating(Fitch).

ValuationThevalueofthesharesisassessedusingthe“atequity”method.ThestartingvaluewasEUR11,739,777.ThiswasaugmentedbyashareinprofitofEUR2,804,409,dividendsofEUR933,949andacurrencytranslationgainofEUR369,534(recordeddirectlyinequity).Accordingly,thevaluationasof31December2010isEUR13,979,844.

AccèsBanque Madagascar S.A.Classification as AssociateABMwasfoundedin2006withAccessHoldingasthelargestfoundingshareholder.ABMismanagedbyAccessHolding’smanagementcompany,LFSFinancialSystemsGmbH,underamanagementservicecontract.AccessHoldingcurrentlyholdsastakeof44.0%inABMandisthebank’slargestshareholder.ThroughexercisingofitsvotingrightsintheShareholders’Assembly,itsrepresentativeontheboardofdirectors,andthroughthecommonmanagementcompany,AccessHoldingexertsasignificantinflu-enceonABM.

DevelopmentoftheAssociatein20112011wasthefifthbusinessyearforABM.Duringtheyear,assetsgrewby46.8%toEUR25.4million.Theloanportfoliocomprised20,883loansforEUR14.3million(2010:14,436loans,EUR11.1million).CustomerdepositsincreasedfromEUR13.5milliontoEUR17.8million.TheprofitforthebusinessyearamountedtoEUR69,910.42.Asof31December2011,ABMemployed561staffin12branches(2010:435/11).

ValuationThevalueofthesharesisassessedusingthe“atequity”method.ThestartingvaluewasEUR1,582,578.AnexchangegainofEUR21,233equityisrecordeddirectlyinequity.TheshareofprofitforthebusinessyearamountedtoEUR30,760.Accordingly,thefinalevaluationisEUR1,634,571.

86


87

(25) Loans and advances to customersAsof31December2011netloanportfolioamountedtoEUR45,665,451. Loans and advances to customers 2011 2010Microfinanceloanstocustomers(gross) 36,098,323 12,744,693SMEloans 9,025,671 801,873Otherloanstocustomers(gross) 163,339 -Impairmentreserve (800,780)(429,628)Interestandfeesreceivable 1,178,898 45,755ExchangeGain - -Total 45,665,451 13,162,693

ThecarryingamountofloansandadvancestocustomersthatareneitherpastduenorimpairedisTEUR49,771.Thecarryingamountofloansandadvancesthatarepastdue(duemorethan30days)butnoimpairedisTEUR580.

(26) Intangible assetsIntangiblesassetsintheamountofEUR2,466,706includecomputersoftware(EUR2,427,119)andgoodwillofEUR39,586.09realisedin2011(seenote6).Additionallythefollowingtablesshowthecompositionanddevelopmentofcomputersoftwarein2011and2010:

Computer Software 2011 2010 ∆Net book value, 1 January 2011 638,330 512,872125,458Additions 1,997,247 147,7721,849,475Transfers -- -Disposals -- -Totalacquisitioncost 2,635,577 660,644 1,974,933Depreciation (227,662) (70,925)(156,737)Exchangedifference 19,204 48,612(29,408)Accumulateddepreciation (227,662) (70,925)(156,737)Net book value, 31 December2011 2,427,119 638,331 1,788,788

(27) Property, plant and equipmentThefollowingtablesshowthecompositionanddevelopmentofproperty,plantandequipment:Property, plant and equipment 2011 2010AH 600,762 1,629,256ABL 5,905,811 4,107,099ABN 803,647 569,017ABTJ 954,684 207.525ABZ 684,302 -ABT 6,828,861 -Total 15,778,067 6,512,898


Furniture, Assets OtherAccumulated Land and fixtures, under Motor Computer office Tenantdepreciation buildings equipment construction vehicles equipment equipment fixtures Total

Net book value, 1,544,185 1,396,846 - 128,555 377,146 - 169,825 3,616,558

1 January 2011

Additions 249,647 543,089 109,037 217,685 670,564 496,335 709,705 2,996,062

Disposals (1,283) (969) (1,090) (3,341)

Transfers 307,601 (364,406) 226,630 (169,825) -

Totalacquisitioncost 2,100,150 1,938,967 109,037 346,240 1,047,710 495,245 709,705 6,609,278

Depreciation (173,962) (209,045) - (96,349) (263,415) (102,063) (29,962) (874,796)

Impairment 5,298 730 - - - 552 - 6,580

Exchangedifference (54,594) (18,865) - 151 (1,175) - (165) (74,648)

Accumulated depreciation (168,664) (208,316) - (96,349) (263,415) (101,511) 29,962) (868,216)

Net book value, 1,876,892 1,711,786 109,037 250,043 783,121 393,734 679,743 5,666,41431 December 2011

Furniture, Property, plant Land and fixtures, Motor Computer Tenantand equipment buildings equipment vehicles equipment fixtures Total

Net book value,

1 January 2010 381,041 665,423 81,612 287,944 - 1,416,020

Additions 1,249,609 926,882 84,642 166,790 180,449 2,608,372

Disposals - - - - - -

Totalacquisitioncost 1,630,650 1,592,305 166,254 454,734 180,449 3,843,942

Depreciation (106,076.91) (238,938.88) (42,269) (93,457) (10,625) (491,367)

Exchangedifference 19,613 43,480 4,571 15,869 - 83,533

Accumulateddepreciation (106,077) (238,939) (42,269) (93,457) (10,625) (491,367)

Net book value, 1,544,185 1,396,846 128,555 377,146 169,825 3,616,558 31 December 2010

(28) Deferred tax assetsDeferred income tax asset 2011 2010AH 969,902 146,502ABN 205,259 360,445ABZ 237,515 -ABT 358,982 -Total 1,771,657 506,947

Deferredtaxassetsrefertotaxlossescarriedforward.ThelossesattheparentcompanyamountstoEUR3.1MioandareconsolidatedatGrouplevel.ThetotaldeferredtaxassetwouldbeTEUR932.Managementdecidedtorealisethedeferredtaxassetsduetouncertainfuturetaxableincomeonlyintheamountofthenationaldeferredtaxliabilities,amountingtoEUR194,398.Thecalculationofthedeferredtaxliabilitiesisbasedontheaveragetaxrateof30.18%andtheresultofoperationoftheGroup(seealsonote34).

AdditionallyAccessHoldingcancarryforwardwithholdingtaxpaidtoAzeritaxauthoritiesamountingtoEUR0.8million.

TaxassetsamountingtoEUR1.0millionareexpectedtoberecoveredwithin12months.

(29) Other financial assetsOnthelevelofAH,otherfinancialassetsincludealoantoLFS(EUR2.0million)tofinancethedevelop-mentofanewbankingsoftwareforthenetworkbanks(2010:2.5million).

88


89

(30) Other non-financial assets.Othernon-financialassetsaremainlyprepaymentsanddistributedasfollows:

Other non-financial assets 2011 2010AH 29,2713,921,580ABL 677,642780,526ABN 1,357,1271,460,147ABTJ 302,538282,927ABZ 153,838 -ABT 1,896,248 -Total 4,416,663 6,445,180

(31) Loans from banks and other financial institutions

Loans from banks andother financial institutions 2011 2010ABN 8,119,9164,625,374ABTJ 8,119,52293,566ABT 2,726,542 -Total 18,965,980 4,718,940TheLoansfrombanksandotherfinancialinstitutionsconsistslargelyofborrowingstoABNandABTJwithamaturityofmorethanoneyear.

(32) Customer accountsTotalcustomeraccountsintheamountofEUR23,264,997aredistributedasfollows:

Customer accounts 2011 2010Currentaccounts 3,227,035790,820Savingsaccounts 9,837,5181,774,977Termdeposits 10,200,445961,040Total 23,264,997 3,526,836

(33) Trade and other payablesTradeandotherpayablesaredistributedasfollows:

Trade and other payables 2011 2010AH 691,656469,868ABN 3,150,851398,506ABZ 73,626 -ABT 679,428 -Total 4,595,561 868,374 Allliabilitiesareduewithin12monthsandequaltheircarryingbalancesastheimpactofdiscountingisnotsignificant.PayablesamountingtoEUR2.2millionarerelatedtoABN’sfinancing.

(34) Deferred income tax liabilityDeferredtaxliabilitiesareallrelatedtooutsidebasisdifferencesofinvestmentsinassociatesandwerecalculatedaccordingtothefollowingtable:

Deferred incometax liabilities Difference TaxValue IFRS Difference Taxable 31/12/2011 Difference

ABA 146,502 2,787,197 13,979,844 11,192,647 5.0% 194,398 47,896

ABM - 1,750,505 1,634,572 (115,933) 5.0% - -

Total 146,502 194,39 47,896

ThenegativedifferenceofABMisnotrecognizedbecauseitcan’tbedeductedfromGermantaxincomeaccordingtoGermantaxlaws.

ThedecreaseofdeferredtaxintheamountofEUR570,927toEUR146,502isduetoadifferentinter-pretationofthetaxlawsinAzerbaijanregardingthecapitalizationofprofitsandwithholdingtaxes.Alldomestictaxliabilitiesarenotexpectedtoberecoveredwithin12months.


(35) Other non-financial liabilitiesTotalothernon-financialliabilitiesintheamountofEUR2,275,397aredistributedasfollows:

Share capital No. of Shares = Paid in Capital % of totalShareholder 2011 2010 2011 2010CDCGroupPLC(CDC) 824,500 778,500 14.12% 14.12%EuropeanInvestmentBank(EIB) 824,500 778,500 14.12% 14.12%InternationalFinanceCorporation(IFC) 824,500 778,500 14.12% 14.12%KfWDevelopmentBank(KfW) 824,500 778,500 14.12% 14.12%LFSFinancialSystemsGmbH(LFS) 941,000 888,500 16.12% 16.12%MicroAssetsGbR(MA) 190,106 179,500 3.26% 3.26%Omidyar-TuftsMicrofinanceFund(OTMF) 824,500 778,500 14.12% 14.12%NederlandseFinancierings-Maatschappij 585,411 552,750 10.03% 10.03%VoorOntwikkelingslandenN.V.(FMO) Total 5,839,017 5,513,250 100% 100%

Thesharesarenotgroupedintoclasses,andtherearenodifferentrights,preferencesandrestrictions,includingrestrictionsonthedistributionofdividendsandtherepaymentofcapital.Theshareshavenoparvalue.

(37) Capital reservesInadditiontothestatedsharecapital,eachshareholderhascommittedtopayinadditionalamountsintothecapitalreserves(“CapitalCommitments”).ThepaymentofthecapitalcommitmentsiscalledinbytheManagementBoardfromtimetotimewhenbusinesssorequires.

TheshareholdersofAccessHoldinghavecommittedtopayinadditionalamountsintothecapitalreser-vesandassharecapitalstartingfrom2011.ThenewcommitmentsamounttoatotalofEUR12.2Mio.In2011theshareholdersofAccessHoldingcontributedintotalEUR1,120,638tothecapitalreserve.

(38) Currency translation differencesTotaltranslationreservesamounttoEUR1,033,152.

Currency translation differences 01/01/2011 Addition 31/12/2011AH 329,534 626,101 955,635ABL (3,541) (45,512) (49,053)ABN 94,969 49,292 144,260ABTJ 1,039 799 1,838ABZ - (6,137) (6,137)ABT - (13,392) (13,392)Total 422,000 611,151 1,033,152

ThefollowingtableshowsthecompositionandmovementofthisreserveforAH.Forallotherbanks,thedifferenceresultsfromthefactthatbalancesheetitemsaretranslatedattheexchangerateasof31December2011,whileP&Litemsaretranslatedattheaveragerateduringtheoperatingperiodoftherelevantbank.

Currency translation differences AH 31/12/2010 Addition 31/12/2011ABA 724,423 363,959 1,088,381ABM (87,597) 21,233 (66,364)ABT (318,290) - (318,290)ABL 185,936 156,070 342,007ABTJ 63,979 (226,161) (162,181)ABN (238,918) (60,532) (299,450)ABZ 30,382 30,382ABT 341,150 341,150Total 329,534 626,101 955,635

90


91

(39) Retained earningsThefollowingtableshowsthecompositionandmovementofretainedearnings:

Retained earnings 2010 Addition 2011AH 4,873,970 1,936,856 6,810,826ABL (146,135) (249,555) (395,690)ABN (927,835) 580,365 (347,470)ABTJ (279,065) (335,089) (614,154)ABZ - (3,707,559) (186,624)ABT - (16,879) (16,879)Total 3,520,935 (1,791,862) 5,250,009

(40) Other reservesOtherreservesconsistofEUR-19,570relatedtoachangeintheownershipofAccessHoldinginABMandABTin2010.

(41) Equity attributable to non-controlling interestsInsubsidiariesthatarenotfullyownedbyAccessHolding,theequityattributablenon-controllinginte-restsisnottakenintoaccountintheconsolidatedfinancialstatements.Thefollowingtableshowsthecompositionoftheseitems:

Equity attributable to Non-controlling Attributable tonon-controlling interests interest Total equity non-controlling interestsABL 44.3% 7,795,787 3,453,534ABN 48.0% 6,858,210 3,424,990ABTJ 49.9% 6,613,160 3,174,317ABZ 49.0% 4,227,313 2,071,383ABT 49.3% 4,936,472 2,433,681Total 21,267,157 14,557,904


Additional Notes(42)Liquidity risk

Maturities of assets 12 monthsand liabilities 0 - 30 days 1 - 6 months 6 - 12 months to 5 years Over 5 year Total

Assets

Cashandbalanceswithbanks 15,778,067 - - - - 15,778,067

Loansandadvancestobanks -

Investmentsavailableforsale - 1,732,275 - - - 1,732,275

Loansandadvancestocustomers 2,212,221 8,729,922 21,428,332 4,543,552 - 36,914,025

Intangibleassets - - - - 2,466,706 2,466,706

Property,plantandequipment - - - - 5,666,414 5,666,414

Currentincometaxasset - - - - - -

Deferredincometaxasset - - - - 1,771,657 1,771,657

Otherassets - 500,000 500,000 1,000,000 - 2,000,000

Othernon-financialassets - 25,807 278,177 3,772,867 688,934 4,765,784

Total assets 17,990,288 10,962,196 21,928,332 5,543,552 9,904,777 66,329,144

Liabilities

Loansfrombanksandother

financialinstitutions 7,304 704,528 423,252 16,548,416 - 17,683,499

Customeraccounts 10,519,725 7,721,546 1,847,870 3,155,150 - 23,244,291

Tradeandotherpayables 691,656 - 596,253 - - 1,287,909

Deferredincometaxliability - - - - - -

Otherliabilities - - - - - -

Total liabilities 11,218,684 8,426,074 2,867,375 19,703,566 - 42,215,699

Net liquidity gap 6,771,604 2,536,122 19,060,957 (14,160,014) 9,904,777 24,113,445

Cumulated liquidity gap 6,771,604 9,307,726 28,368,683 14,208,669 24,113,446

ThetableaboveanalysesassetsandliabilitiesoftheGroupintorelevantmaturitygroupingsbasedontheremainingperiodatbalancesheetdatetothecontractualmaturitydate.ThematchingandcontrolledmismatchingofthematuritiesandinterestratesofassetsandliabilitiesisfundamentaltothemanagementoftheGroup.Itisunusualforbanksevertobecompletelymatchedsincebusinesstransactedisoftenofuncertainterm.Thematurityofassetsandliabilitiesandtheabilitytoreplace,atanacceptablecost,interest-bearingliabilitiesastheymature,areimportantfactorsinassessingtheliquidityofthebankanditsexposuretochangesininterestratesandexchangerates.

Liquidityriskismeasuredandcontrolledonthelevelofnetworkbanks.

Interestrateriskismeasuredandcontrolledonthelevelofnetworkbanks.

(43) Net result according to financial categories

SubsequentCategories Interest Fair measurement Total 2010 value ImpairmentLoansandreceivables(LaR) 12,551,533 (530,326) 12,021,208 4,466,605AvailableforSaleFinancialAssets(AfS) 319,505 319,505 482,090Holdtomaturity(htM) 935 935 14,793FinancialLiabilititesMeasuredatAmortisedCost(FLAC) (1,987,728) (1,987,728) (83,191) 10,884,246 -(530,326) 10,353,920 4,880,297

92


93

(44) Financial iruments: classes

Category Carrying amount Fair Value Carrying amount Fair Value (IAS 39) 31.12.11 31.12.11 31.12.10 31.12.10

ASSETS

Cashandcashequivalents AfS 15,778,067 15,778,067 6,512,898 6,512,898

Loansandadvancestobanks LaR 2,891,644 2,891,644 3,533,758 3,533,758

Investmentsavailableforsale AfS 1,732,275 1,732,275 59,048 59,048

Loansandadvancestocustomers LaR 45,665,451 45,665,451 13,162,693 13,162,693

Otherfinancialassets LaR 2,065,021 2,065,021 2,500,000 2,500,000

LIABILITIES

Loansfrombanksandotherfinancialinstitutions FLAC 18,965,980 18,965,980 4,718,940 4,718,940

Customeraccounts FLAC 23,264,997 23,264,997 3,526,836 3,526,836

Tradeandotherpayables FLAC 4,595,561 4,595,561 1,441,278 1,441,278

Fairvaluesforinvestmentsavailableforsalearedeterminedusingavaluationtechnique(MarktoModel).Valuationtechniqueusedisbasedonobservablecurrentmarkettransactions.Changingoneormoreofthoseassumptionstoreasonablypossiblealternativeassumptionswouldnotchangefairvaluesignificantly.

(45) Rights and obligationsAccessHoldingandtheBelgianInvestmentCompanyforDevelopingCountriesSA(“B.I.O.“)havecon-cludedaconditional‘Put/CallOptionAgreement’forthesharesheldbyB.I.O.inAccessBankTanzaniaLtd.Asof31December2011,thepreconditionsforAccessHoldingtoexerciseitscalloptionwerenotyetfulfilledbutthepreconditionforB.I.Otoexerciseitsputoption(atbookvalue)weremet.Sincethepotentialgainsandlossesofthisagreementarecurrentlybalanced,liabilitiesresultingoutofthe‘Put/CallOptionAgreement’arenotrecognised.ThevalueofthesharesofB.I.O.equalsEUR0.7millionon31December2011.

AccessHoldingandtheDutchcompanyStichtingTriodosDoen(“Triodos”)haveconcludedanoptional‘Put/CallOptionAgreement”forthesharesheldbyTriodosinAccèsBanqueMadagascarS.A.in2009.Sincethepotentialgainsandlossesofthisagreementarecurrentlybalanced,potentialliabilitiesresultingoutofthe‘Put/CallOptionAgreement’arenotmeasurableandarenotrecognised.

AccessHolding,EBRD,IFCandKfWhaveconcludedanoptional‘PutOptionAgreement’forthesharesheldbyEBRD,IFCandKfWinAccessBankTajikistan.ThisoptionenableseachofshareholderstoselltheirsharestoAccessHoldingforagivenmultiple.Sincethepotentialgainsandlossesofthisagree-mentarecurrentlybalanced,potentialliabilitiesresultingoutofthe‘PutOptionAgreement’arenotmeasurableandarenotrecognised.

(46) Contingent Liabilities and CommitmentsIn2011anewManagementServiceContractwasconcludedbetweenAccessHoldingandLFS.Thiscontractexpireson31December2013.

Thefollowingtableshowsthecompositionoftotalfutureminimumleasepaymentsundernon-cancellableoperatingleaseswhicharerelatedtoABT.

Operating lease agreements EUR US$Nolaterthanoneyear 362,453 469,341Laterthanoneyearandnolaterthanfiveyears1,391,626 1,802,016Laterthanfiveyears 1,089,712 1,411,068Total 2,843,791 3,682,425AcontingentliabilityequallingEUR0.7millionarisesfromtheputoptionwithB.I.O.(seenote45.)


(47) Capital ManagementTheGroup’sobjectiveswhenmanagingcapital,whichisabroaderconceptthanthe‘equity’onthefaceoftheconsolidatedstatementoffinancialposition,are:

Tocomplywiththecapitalrequirementssetbytheregulatorsofthebankingmarketswherethe entitieswithintheGroupoperate;

Tomaintainastrongcapitalbasetosupportthedevelopmentofitsbusiness

Capitaladequacywillbemonitoredonaminimummonthlybasisattheleveloftheindividualbanks.Asarecommendationeachbankaimsatacapitaladequacyratioof15-20%relatingtotheratioofrisk-weightedassetstoTier1capital.Tier1capitalusuallycompromisessharecapital,generalbankreserve,statutoryreserve,retainedearningsandreservescreatedbyappropriationsofretainedearnings.ThebookvalueofintangibleassetsisdeductedinarrivingatTier1capital.Thecapitaladequacyrequi-rementsforeachbankweremetin2011(and2010)andsucceededourrecommendations.

AHdoesnotuseexternalfinancingonholdinglevel.Developmentofsubsidiesandassociatesaremonitoredonaminimummonthlybasisaccordingtotheirbusinessplans.

Seealsonote35forinformationoncapitalcommitmentsoftheshareholders.

(48) Risk ManagementInriskmanagement,itisnecessarytodifferentiatebetweentheoperationsoftheholdingandthoseofthenetworkbanks.Whilethemainrisksfortheholdingarecountryandcurrencyrisks,itiscurrentlynotexposedtoanycreditorinterestrateriskandtoonlyfewoperationalrisks.Thenetworkbanksontheotherhandareexposedtothefullrangeofriskscommontothebankingindustry,aggravatedbyfactthattheyworkinmarketswithsometimesseveredeficienciesintheareasofpoliticalandecono-micstabilityandruleoflaw.

Level of AccessHolding Higher than expected capital requirements

Nature of risk: FasterthanexpectedassetgrowthofMFIs,insufficientaccesstoexternalfinancing and/orregulatorychange,canforceAccessHoldingtoaccelerateorincreasetheprovisionof capitaltoitsnetworkbanks.UndertheHolding’scurrentcapitaldevelopmentprojectionsand investmentplanthiscanleadtotemporaryliquiditysqueezes.Thesameeffectscanalsooccurasa resultoffluctuationsofdividendincomefromAccessHolding’sparticipations.

Mitigating factors: AccessHoldingimplementscarefulliquidityplanningandinitscapitalallocation alwayskeepsacushionforunexpectedfollow-upinvestments.Itsshareholdersaresufficiently solventtoprovidemorecapitalifneeded.

Delayed implementation of investment pipeline Nature of risk:Newinvestmentsinnetworkbanksneedtobecarefullyselectedandcoordinated withlike-mindedco-investors,whosedecisionmechanismsmayrequiremoretimethanenvisioned. Licensingprocessescanbelongandcumbersome.Therefore,delaysintheimplementationofthe investmentpipelinecouldaffectthebuild-upoftheinvestmentportfolioand,ultimately, AccessHolding’soverallprofitability.

Mitigating factors:AccessHoldinghasdevelopedandismaintainingastronginvestmentpipeline, screeningandanalysingpossibletargetcountrieswellinadvance.

External shocks in MFI host countries Natureofrisk:Thecountriesofoperationaresubjectedtoanumberofrisks,suchasmacroeconomic shocks,naturaldisasters,orpoliticalupheaval.Suchrisks,wheretheymaterialise,canhavesub- stantialimpactontheMFIsandtheirclientele,intheformofe.g.adepressedbusinessenvironment,

94


95

suddendelinquencywaves,tightenedmoneysupply,orextraordinaryforeignexchangelosses.These candestabilisetheinvesteeMFIandcauselossesfortheinvestors.

Mitigating factors: MFIsarecomparativelyshock-resilient,foravarietyoffactors:Firstly,small businessactivityindevelopingcountriesisoftenpreciselyaresultofpooreconomicconditions andinsufficientemploymentopportunities,sothatdemandformicroenterpriseloanscaneven increaseintheeventofacrisis.Moreover,mostMFIclientsaretradersofbasicgoodssoldinsmall batches,thedemandforwhichisaffectedbyeconomicshockstoalesserextentthanoveralldemand intheeconomy.Also,mostMFIloansareshort-term,sothattheycanquicklyrespondtointerest ratechangesinducedbysuddenalterationsinmoneysupply.Forinvestors,theseadvantages translateintoarelativelylowsystematicrisk(beta)ofMFIinvestmentsandlowcorrelationtothe performanceofmostotherinvestments.

AnadditionalmitigatingfactorinthespecificcaseofAccessHoldingisthatthepoliticalleverageof theIFIsamongitsfoundingshareholdersandasinvestorsinnetworkbanksshouldhelptoreduce thecountryriskofitsinvestments.

Foreign exchange risk Nature of risk: AccessHoldingmostlyundertakesequityinvestments,whicharedenominatedin localcurrencyandarethussubjecttoexchangeratefluctuations.Whilethenetworkbanksneed tomanagecurrencyrisksinrelationtotheirrespectivestatutorycurrency,theholdingisultimately interestedintheEurovalueofitsinvestments.Moreover,theinternationalreferencecurrencyinsome countriesofoperationistheUSDollar,whichintroducesadditionalvolatilitytotheinvestments’value.

Mitigating factors: Duetothelong-termstrategyandnatureofinvestmentsasequity,hedgingis usuallynotpossible.Thecurrencyrisksthereforehastobemanagedby(i)aimingtomaintain sufficientprofitabilityinnetworkbankstocompensateforcurrencydevaluationand(ii)diversification ofinvestmentsacrosscountriesandregions.

Level of network banksNetworkbanksareexposedtoallrisksinherentinthebankingindustry.Thisincludescreditrisk,maturity(liquidity)risk,interestraterisk,andcurrencyriskaswellasoperationalrisksandcountryriskandmarketrisks.Theoverridingriskmanagementstrategyisthecommonmanagementapproach,imple-mentedthroughthetechnicalpartnerLFS,andtheprovisionofactiveinvolvementandcontrolbytheheadquarters.Theprovenandwelltestedapproachensuresthroughpermanentandinstitutionalisedexchangeofstaffandinformationaswellascontrolandauditinsurethatbestpractiseisfollowed,synergiesarerealisedandtheduplicationoferrorsisavoided.Thisapproachisaconclusionfromtheobservationthatmanagementcapacity(asopposedtocompetition,marketlimitationorfunding)isoftenthemostsignificantbottleneckforthedevelopmentandsuccessofmicrofinanceinstitutions.ThelinkagebetweentheprovisionofcapitalandmanagementservicesisattheheartofAccessHolding’sbusinessconcept.

Importantprinciplesofthisapproachinclude:

Standardisation and concentration on core products:AccessBanksdonotaimtooffereverypossible bankingproductbutconcentrateonprovidingexcellentserviceintheircoreareasofcompetence, i.e.microandsmallbusinessfinance.Thisensuresthatsparsemanagementcapacityisconcentrated andspeculativeorerraticstrategiesareavoided.Moreover,experienceshowsthatawell-managed portfolioofmicroandsmallbusinessloansismuchmoreresilienttoeconomicshocksthancorpo rate,consumeroraggressivehousingfinance.

Lending technology: TheLFStechnologyformicroandsmallbusinesslending–comprisingall aspectsoflendingfromcreditanalysistocreditcycleprocedurestoorganisationalandcompen- sationmatters,hasbeensuccessfullyprovenandtestedinavarietyofcountriesandsituations. Highportfolioqualityandbalancedbutdynamicgrowthcanbeachievedinmostenvironments.


Focus on training: Traininglocalandinternationalstaffonalllevelsfromclericaltotopmanagement isacorefocusoftheactivityofeachnetworkbankandtheGroupasawhole.Inmostcases, careersaremadein-houseandhighstaffretentionratesandloyaltyareachieved.Thisisespecially importantinabusinesswithsuchspecificrequirementsasmicrofinance.

Simplicity and transparency:Greatattentionisgiventoensuringtransparencyandsimplicityof thenetworkbanks’products,proceduresandappearance.Creatinganddemonstratingacorruption- freeenvironmentisachallengeinmanycountriesofoperations,butalsoacorecompetitiveadvantage andthebasisforsustainedsuccess.

Prudence and financial risk management:Higheststandardsareappliedintheclassicalareasof bankriskmanagement–standardsofloanlossprovisioning,observationofprudenceregulations, interestrate,maturityandcurrencyriskexposure.Inmostcases,internallyappliedregulationsare muchstricterthancentralbanklimits.Thisismadepossibleontheonehandbythenatureofour banks’businesswhichusuallyexcludesconcentrationofexposures,highmaturityrisksandthe like.Ontheotherhand,thelong-termstrategyofAccessHoldinganditsco-investorsensuresthat managementisnotpushedtogotothelimitofleverageorotherindicators,andisorientedat growthandsustainabilityratherthanshort-termprofitmaximisation.

Operational risk management:Operationalrisksofvarioustypesfromfraudtodifficultiesinelec- tricitysuppliesareacorethreattothenetworkbanks’profitability.Thedevelopmentandmanagement ofriskmatrixesisthereforebecomingstandardacrossAccessBanks,andcentralisedservicessuch asinITandproductspecialistsaregainingimportanceinreducingoperationalrisksandensuring thesharingofbestpractiseamongnetworkbanks.

Control and audit:Thebuild-upofefficientandcapablecontrolandauditfunctionsisacoreelement ofriskmanagement.ThisincludesahighlycapableMISatbankandGrouplevelsaswellasthe centraltrainingofandcontroloverinternalauditdepartmentsofthenetworkbanks.Measures takeninthisareacomprisecarryingoutinternalauditsbytheHQauditteamaswellasproviding auditpolicies,proceduresandplanstonetworkbanks,traininginternalauditorsatbanklevel,and exchangeofauditteamsacrossthenetwork.

(49) Credit RiskThefollowingtableshowsthecurrentqualityoftheloanportfolioonthelevelofeachconsolidatedcompany.Theportfolioatriskratioisdefinedastheamountofoutstandingloansdividedbytheamountofoverdueoutstandingloans.

Portfolio at Risk PAR 30ABL 5.15%ABN 0.95%ABTJ 1.32%ABZ -ABT 1.20%

(50) Events after the reporting period

PreparationsforacapitalincreaseofAccessHolding(inviewoftheupcomingacquisitionofamajoritystakeinABA,haveprogressedtothepointthatallshareholdershadsecuredtheirfinalorpre-finalap-provalsfortheirrespectivecapitalcontributionsatthetimeofwriting.Thecapitalincreaseisforeseentotakeplaceinthesecondquarterof2012andwillresultinamajoritystakeinABAofmorethan50%.TheBankofZambia(BoZ)announcedthattheminimumcapitalrequirementforforeigncommercialbankswillbeliftedtotheequivalentofaboutEUR75millionandforlocallyownedbankstotheequi

96


97

valentofaboutEUR15millionbytheendof2012.AstheseamountsarefarabovetheforeseenandjustifiedcapitalisationlevelforABZ,inparticulartherequiredcapitalforforeignbanks,ABZsharehol-ders(ledbyAccessHolding)havestarteddiscussionswithBoZrespectofthismatter.

InApril2012AccessHoldingtookpartincapitalincreaserelatingtoABMwhichwillresultinmajoritystakeinABAofmorethan50%.

(51) Related-party transactions

ThefollowingtableshowsallinvestmentswhicharerelatedpartiestoAccessHolding:Name of Institution Domicile Share in % AccèsBanqueMadagascar Antananarivo,Madagascar 44.00%AccessBankTanzaniaLimited DaresSalaam,Tanzania 50.70%ABMicrofinanceBankNigeriaLimited Lagos,Nigeria 50.06%AccessBankCJSC Baku,Azerbaijan 16.53%AccessBankLiberiaLimited Monrovia,Liberia 55.70%CJSCAccessBankTajikistan Dushanbe,Tajikistan 52.00%ABBankZambia Lusaka,Zambia 51.00%

LFSFinancialSystemsGmbH,Berlin,Germany,isashareholderofAccessHoldingandisarelatedpartyunderthetermsofIAS24.TheManagementServiceContractbetweenAccessHoldingandLFSiscom-mentedoninnotes17and44.ExpensesaccordingtoIFRS2withLFSamounttoEUR172,079in2011.InNovember2009andJuly2010,LFSreceivedamedium-termloanfromAccessHolding(EUR2,500,000)forthepurposeofpre-financingthebankingsoftwaremigrationproject.Theloanwaspricedatmarketconditions.TheoutstandingbalanceamountstoEUR2,000,000on31December2011.

LFSprovidesservicestoAssociatesintheframeworkofmanagementservicesagreements.Undertheseagreements,LFSFinancialSystemsGmbHsecondspartofthebanks’managementand,inreturn,receivesfeesfromtheinvesteecompanies.LFSfurtherprovidesacorebankingsoftwarepackagetoinvesteebanksandchargeslicenseandmaintenancefeesforthem.

In2011,ABApaidEUR1.3milliontoLFSFinancialSystemsGmbHforsuchservices(2010:EUR1.3million).AdditionallyABMpaidEUR1.1milliontoLFSFinancialServicesGmbH.ThebalancesrelatedtoLFSamounttoEUR114,023.

ABTJpaidEUR846,684toLFSFinancialSystemGmbH(2010,EUR205,852)accordingly.ABLpaidEUR162,109andABTEUR284,701.

OutstandingbalancesofABNwithLFSasat31December2011amounttoEUR75,353relatingtopaymentsonbehalfofLFS.PaymentsforservicestoLFSamounttoEUR253,129.LiabitlitesrelatedtoLFSamounttoEUR96,967.

ABAgrantaloantoABTamountingtoEUR2.4million.Noloanshavenbeendisbursedtomembersofthemanagementorsupervisoryboard.

(52) Government grants

FortheimplementationofmicrofinanceinstitutionsinNigeria,LiberiaandZambia,thesebanksrecei-vedgovernmentgrants.TheGroupisusingtheincomeapproach.IncurredexpensesofEUR2.0millionhavebeenrecoveredbygrantincomeandweredeductedfromexpensesintheincomestatement.


(53) Supervisory Board

Asof31December2011,theSupervisoryBoardwascomprisedofthefollowingmembers: Mr.HywelRees-Jones,London,UK(Chairman) Dr.BerndZattler,Berlin,Germany,(DeputyChairman), Mr.SyedAftabAhmed,Washington,USA Mr.EdvardasBumsteinas,Luxembourg, Mr.TryfanEvans,Boston,USA, Ms.EvaWitt,Frankfurt,Germany(until1September2011) Mr.FrankBellon,Frankfurt,Germany(since14November2011) Mr.EltjoKok,Leiden,Netherlands

Themembersofthesupervisoryboarddidnotreceiveanycompensation.

(54) Management Board

SinceitsfoundationinAugust2006,AccessHoldingismanagedbyLFSFinancialSystemsonthebasisofaManagementServiceContract.LFShassecondedtwoofitsseniorstaffmemberstomanageAccessHolding:

ThomasEngelhardt,Berlin,Germany,istheChairmanoftheManagementBoardofAccessHolding.

ChristophDiehl,Berlin,Germany,isaMemberoftheManagementBoard.

RegardingtheremunerationfortheManagementBoardofAccessHoldingtheGroupelectstoapplytheprotectionclausepursuanttosection286Paragraph4oftheGermanCommercialCode(HGB).

(55) Other staff

OtherstaffmembersallocatedtoAccessHoldingincludeMr.PatrickSchoenebornasSeniorInvestmentandControllingOfficers,Mr.MarcusSteinaslegaladvisorandMr.AlexanderPinhammer-Zschocherasaccountant.

(56) Auditors’ remuneration

Theauditors’remunerationinaccordancetoGermanCommercialCodeisdistributedasfollows:

Auditors’ remuneration EURAuditfees 92,911feesrelatingtoprioryear 7,911Otherservices -Total 97,911

(57) Equity holdings according to German Commercial Law

2011 2010Name of Institution Domicile Share in % Share in %AccèsBanqueMadagascar Antananarivo,Madagascar 44.00% 44.00%AccessBankTanzaniaLimited DaresSalaam,Tanzania 50.70% 46.98%ABMicrofinanceBankNigeriaLimited Lagos,Nigeria 50.06% 58.40%AccessBankCJSC Baku,Azerbaijan 16.53% 16.53%AccessBankLiberiaLimited Monrovia,Liberia 55.70% 53.50%CJSCAccessBankTajikistan Dushanbe,Tajikistan 52.00% 52.00%ABBankZambia Lusaka,Zambia 51.00% -

ChangeoftheshareinABNandABLdidnothaveaneffectonthecontroloftheseentities.FortheconsolidationofABTandABZpleaserefertonote7.

98


99

Berlin, June 25,2012Access Microfinance Holding AGManagement Board

Contact Addresses

Access Microfinance Holding AGSchönhauser Allee 10-1110119 Berlin, GermanyPhone: (+49) 30-3087470Email: [email protected]

AccessBank in AzerbaijanAccessBank Head Office137 Alofsat Guliyev str.Baku, AZ1000 Azerbaijan Phone: (+99412) 493-07-26Email: [email protected]

AccèsBanque MadagascarImmeuble Bir Hackeim, Lot IBG 21 Ter,AntsahavolaAntananarivo 101, MadagascarPhone: (+261) 202232234Email: [email protected]

AccessBank Tanzania LtdP.O. Box 95068,Dar-es-Salaam, TanzaniaPhone: (+255) 22-2774355Email: [email protected]

AB Microfinance Bank NigeriaIkeja (Head Office)9, Oba Akran Avenue, Ikeja, Lagos, NigeriaPhone: (+234) 1-4482155-8Email: [email protected]

AccessBank Liberia20th Street, Sinkor,Tubman Boulevard Monrovia, LiberiaPhone: (+231) 7-7852135Email: [email protected]

AccessBank Tajikistan61/1 Firdavsi str.Dushanbe, 734061 Republic of TajikistanPhone: (+992) 372319824Email: [email protected]

AB Bank ZambiaStand No. 7393, Ground Floor, Chainda place off Cairo Road,Lusaka, ZambiaMonday- Friday 08:00-16:00Phone: (+260) 211220835/36/38/40Email: [email protected]

Head OfficeAccessHolding

AccessBankNetwork

annual report 2011 - accessholding.com · hywel rees-jones. letter from the management board ......

Documents