Barclays Bank of Zimbabwe

George T. Guvamatanga

Imara Investor Conference

29 May 2014

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Banking Sector Snapshot

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21

Banking Institutions

3

International Banks

3

Regional Banks

+4.7bn

Deposits

+3.7 bn

Advances

+$670m

Revenue Pools

+17%

NPLs

+75%

Deposits under 30 days

+$6.7 bn

Total Assets

+78%

LDR

+24%

Consumer Loans

+80%

Revenue share of top 9 banks

Key Challenges The sector is stable but delicate • Liquidity constraints

– +75% of deposits below 30 Days

– Limited LOLR and inter-bank market activity

• Risky lending environment

– Counterparty viability challenges due to structural issues

- +17% NPLs

– Absence of a credit clearance bureau and buyers of bad

debts

– Adverse selection and concentration risk

• High cost to serve -importation of notes and branch is

still the preferred channel

• Capital constrains spurned by high perceived country

risk

• Stiff competition from Telecom firms in the payments

space

• Clarity on key legislation and regulations

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Key Opportunities

Opportunities available but require

patient money

• Investment Banking initially focusing on

infrastructure development and mining

• Asset finance - +US$1.5bn is spent on vehicle

imports only per year

• Mortgages- high demand for medium to low

income segments

• Private equities- businesses struggling to meet

minimum capital requirements

• Securitisation

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Barclays Bank Snapshot Over a century operating in Zimbabwe • Listed on ZSE in 1991

• Major Shareholders-Barclays PLC (63%),

• Top 20 shareholders account for 90% stake

as at 30 April. Key Metric 31 Dec’13

Branches 32

Sales Centres 2

Total Distribution Points 34

FTE 672

Customer Deposits 248m

Customer Advances $115m

Capital and Reserves $44m

Revenue $40m

ATM Network 46

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Barclays Africa Group Fit

Company confidential

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Corp & Investment

Banking

Business

Banking

COO

Marketing

HR

Finance

Legal

Risk

Compliance

Internal Audit

Fun

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Retail

Banking

South

Afr

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Gh

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Nig

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Na

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Zim

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*

Ug

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Bo

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Za

mbia

Ma

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Se

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Geography

Absa Financial

Services

Bu

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* Managed by Barclays Africa, owned by

Barclays Bank Plc

Our Goal

To be the ‘Go-To’ bank

•Regain status of a leading bank

•Convenience of doing business second to none

•Employer of choice status

•Strongest external and regulatory risk ratings

•Good corporate citizen

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Debt

Deposits

Our Purpose

Helping people achieve their ambitions -

in the right way

•Keep clients at the core- long term partnerships

•Engaged, motivated and empowered

colleagues

•Sustain responsible corporate citizenship

•Sustainable growth and a return to dividends

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Our values and behaviours

Helping people achieve their ambitions in the right way

Respect We respect and value those we work with,

the contribution that they make

Integrity We act fairly, ethically and openly in all we

do

Service We put our clients and customers at the

centre of what we do

Excellence We use our energy, skills and resources to

deliver the best, sustainable results

Stewardship We are passionate about leaving things

better than we found them

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Our Strategy

We seek to achieve sustainable growth in

segments that are stable and growing

• The theme for us has been relevance, sustainability and

scalability .

•Relevance- delivering the aspirations of our key

stakeholders

•Sustainability - generating profit to protect capital and

sustain balance sheet and top line growth into the future.

•Scalability- enhancing the bank’s adaptability to the fast

changing environment ( lean structures, process efficiency

and more e-channel )

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Our business model

We target to fully participate in the value chain of

major players in the economy, their suppliers,

vendors and employees.

•Pursuing a ‘Safe Bank’ model:

– Putting the interest of the depositor first

– lending to businesses we understand and have

demonstrable strong cash flows.

•Growing a quality loan book anchored by MNCs and LLCs

across key sectors without losing focus.

•Leveraging Barclays Group capabilities on investment

banking capabilities, product development and technology

platforms

•Owning the payment space -deliver superior transactional

and cash management services

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Financial performance-FY2013

Key Performance Indicator 2009 2010 2011 2012 2013

Revenue share 8% 9% 7% 5% 6%

Deposit Market Share 10% 9% 7% 6% 7%

Advances Market Share 3% 3% 3% 3% 4%

ROE 5% -4% 4% 6% 7%

Cost/income ratio 98% 105% 93% 90% 85%

L:D ratio 17% 24% 27% 41% 47%

Liquidity ratio 80% 72% 69% 58% 53%

Capital adequacy ratio (Total) 30% 44% 19% 18% 17%

Basic earnings per share (US

cents) 0.07 -0.06 0.07 0.10 0.14

Loan loss ratio -1.6% 0.8% 0.9% 0.6 0.6%

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Financial performance-FY2013

1,151

2,798

6,723 7,642

12,316

2009 2010 2011 2012 2013

Net Interest Income US$ ‘ 000

611

(1,852)

2,118

3,053

5,184

2009 2010 2011 2012 2013

Pre –Tax Profits US$ ‘ 000

20,337

43,130

58,518

91,745

115,329

2009 2010 2011 2012 2013

Loans and Advances US$ ‘ 000

121,786

181,223

213,697 224,778 247,985

2009 2010 2011 2012 2013

Customer Deposits US$ ‘ 000

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Economic outlook

The economic landscape requires significant

decisive interventions to enhance investor

confidence, promote local production and contain

the imports bill.

•Clarity on key policies that local and foreign investors

consider, is critical.

•Sub optimal economic performance is forecasted in the

short term.

•Economic landscape demands a responsive and scalable

business approach.

•This has been and continues to inform our strategy and

business model.

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Barclays short-medium term outlook

Barclays will continue to be a focused international

bank delivering improved, sustainable returns and

growth •Increase level of lending in its chosen segments leveraging

Group capabilities

• Continue with ‘safe bank model’

– solid capital base, strong liquidity and a sound funding

position

– Robust risk management practices and governance

framework

• Focus on superior customer payment service to secure a

market share of transaction activity above liabilities and

assets.

• More focus on IT driven business efficiencies

– Integration of e-channels to increase penetration

– Straight through processing

– Customer on-boarding and document handling

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Key Contacts

George T. Guvamatanga

Managing Director

Tel : +263 750200 / 752 594

george. guvamatanga @ barclays. com

Samuel Matsekete

CFO

+263 4 780 580

samuel.matsekete @ barclays. com

Lawrence Nyazema

Commercial Director

+263 4 775132

lawrence.nyazema @ barclays. com

Valeta Mthimkhulu

Banking Director

+263 4 780591,

valeta.mthimkhulu @ barclays. com

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Thank You

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