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Management discussion continued Advances walkforward analysis (African Bank Retail) R000 Lending books Persal Saambou PLB Total Gross advances as at 30 September 2002 3 084 305 731 559 2 396 267 6 212 131 New loans granted – First half 1 005 944 0 0 1 005 944 – Second half 1 209 789 0 0 1 209 789 Loans transferred (note 1) 208 355 0 (208 355) 0 Net receipts (1 677 604) (171 493) (476 269) (2 325 366) Interest, charges and adjustments 1 139 433 97 611 517 613 1 754 657 Gross cash receipts (2 817 037) (269 104) (993 882) (4 080 024) Bad debts written off (400 431) (102 524) (238 589) (741 544) Balance as at 30 September 2003 3 430 358 457 543 1 473 054 5 360 955 Note 1: Payroll loans converted onto African Bank systems in June 2003. Advances analysis – number and average size of loans African Bank Investments Limited 26 As at 30 September 2003 As at 30 September 2002 Gross Gross advances Average advances Average balance Number balance balance Number balance % growth out- of active out- out- of active outin number standing loans standing standing loans standing of loans R million 000 Rand R million 000 Rand LENDING BOOKS 8,5 4 137,7 1 145,2 3 613 3 678,4 1 055,1 3 486 African Bank Retail 9,9 3 430,4 745,3 4 602 3 084,3 678,0 4 549 Payroll (22,3) 1 503,8 270,0 5 570 1 806,9 347,7 5 197 Retail/debit order 43,8 1 761,3 414,3 4 252 1 162,4 288,1 4 035 Standard Bank joint venture 44,6 165,3 61,1 2 706 115,0 42,2 2 722 Specialised Lending 6,0 707,4 399,8 1 769 594,1 377,1 1 575 Credit Indemnity 8,8 315,6 225,4 1 400 246,7 207,3 1 190 Miners Credit Guarantee 2,5 270,8 173,2 1 563 279,4 169,0 1 653 Commercial Vehicle Finance 52,0 114,4 1,2 96 134 66,8 0,8 85 309 Other 6,6 n/a n/a 1,2 n/a n/a PAYDOWN BOOKS (42,1) 2 176,4 306,3 7 105 3 488,3 529,5 6 588 African Bank Retail (38,8) 1 930,6 269,5 7 164 3 127,8 440,3 7 104 Persal (51,1) 457,5 80,7 5 668 731,6 165,1 4 432 Saambou PLB (31,4) 1 473,1 188,8 7 803 2 396,3 275,2 8 707 Specialised Lending (58,7) 245,8 36,8 6 671 360,5 89,2 4 042 Gilt Edged Management Services (53,3) 135,2 36,6 3 699 208,6 78,3 2 662 African Contractor Finance 22,9 110,5 0,3 389 246 141,0 0,2 610 511 Safrich 0,0 n/a n/a 10,9 10,6 1 025 Total (8,4) 6 314,1 1 451,5 4 350 7 166,6 1 584,5 4 523
Sales analysis – number and average size of loans Throughout the period of market instability that led to the demise of Saambou and UniFer, the ABIL Group maintained a very conservative stance to credit granting and shortened the term of loans. This had a negative impact on sales and ultimately the advances portfolio. As market conditions improved towards the end of 2002, the group began to carefully adjust the credit criteria, which on the back of strong demand for credit Value of Average Average loans Number loan loan Number of new loans written of loans size term % new % repeat R million 000 Rand Months clients client 12 months ended 30 September 2003 AFRICAN BANK RETAIL 2 215,7 370,5 5 980 40 60 Payroll 454,4 53,7 8 462 28 41 59 Retail/debit order 1 565,2 269,5 5 808 16 35 65 Standard Bank joint venture 196,1 47,3 4 146 17 67 33 SPECIALISED LENDING 1 322,6 1 028,9 1 286 14 86 Credit Indemnity 772,5 601,5 1 284 5 19 81 Miners Credit Guarantee 462,2 426,8 1 083 8 7 93 Commercial Vehicle Finance 88,0 0,6 140 790 36 86 14 Total 3 538,3 1 399,4 2 529 21 79 % increase on 2002 15,4 8,0 6,9 12 months ended 30 September 2002 AFRICAN BANK RETAIL 1 894,4 302,8 6 256 Payroll 699,9 80,3 8 711 28 Retail/debit order 1 028,1 186,5 5 514 16 Standard Bank joint venture 166,5 36,0 4 623 17 SPECIALISED LENDING 1 170,7 992,7 1 179 Credit Indemnity 721,8 591,9 1 219 3 Miners Credit Guarantee 439,9 400,7 1 098 6 Commercial Vehicle Finance 9,0 0,1 176 255 32 Total 3 065,2 1 295,5 2 366 from our clients has had a positive impact on sales during the course of 2003 without a concomitant increase in default rates. The growth in the size of the lending books was achieved through an increase in the number of loans granted (up 8,0%) and a higher average size of loans (up 6,9%). Turnover for the group on the lending books increased 15,4% to R3 538,3 million (2002: R3 065,2 million). The group sold 1,4 million new loans, of which 1,1 million loans were to clients who have done business with the group before and have chosen to support it again. The group also managed to attract 290 000 new clients. Sales for African Bank Retail for the second half of the year were R1,2 billion, an increase of 20% over the R1,0 billion of the first half. 27 African Bank Investments Limited
Page 1 and 2: African Bank Investments Limited AN
Page 3 and 4: 2,5 2,0 1,5 1,0 0,5 0 JSE statistic
Page 5 and 6: Five-year history Four-year compoun
Page 7 and 8: Features 35 30 25 20 15 10 5 0 Head
Page 9 and 10: Focus and strategy The focus of the
Page 11 and 12: Profile African Bank Investments Li
Page 13 and 14: 1994 Formation of investment trust
Page 15 and 16: Performance against key objectives
Page 17 and 18: Short to medium-term objectives OBJ
Page 19 and 20: African Bank Investments Limited We
Page 21 and 22: Letter to stakeholders ABIL believe
Page 23 and 24: Incwadi eya kwabanezabelo iqhutshiw
Page 35 and 36: Currency adjusted group balance she
Page 37 and 38: Management discussion Overview Key
Page 39 and 40: 12 months ended 12 months ended 30
Page 41 and 42: Capital adequacy model Non-performi
Page 43: 8 000 7 000 6 000 5 000 4 000 3 000
Page 47 and 48: excluding the Saambou PLB acquisiti
Page 49 and 50: The improved credit conditions are
Page 51 and 52: ook and the written-off book. To th
Page 53 and 54: Statement of average balances Weigh
Page 55 and 56: Divisional reports Operationally, A
Page 57 and 58: collection strike rates, which has
Page 59 and 60: ABIL also expanded its portfolio to
Page 61 and 62: Collections business unit. Its most
Page 63 and 64: Issue arising Corrective action req
Page 65 and 66: Skills and experience of the board
Page 67 and 68: Corporate governance continued regu
Page 69 and 70: from the committee responsible for
Page 71 and 72: that the risk policies and strategi
Page 73: Table 1: Remuneration and fees Serv
Page 76 and 77: Risk review ABIL views risk as an i
Page 79 and 80: Risk review continued Undesirable r
Page 81 and 82: Top ten risks Mitigating factors Ri
Page 83 and 84: Credit risk African Bank Retail Cre
Page 85 and 86: on a regular basis to ensure proper
Page 87 and 88: Social commitment Given the nature
Page 89 and 90: Embarking on a journey The process
Page 91 and 92: The progress The corporate social c
Page 93 and 94: Shareholders’ information Number
Page 95 and 96:
agreements, to ensure that the mate
Page 97 and 98:
The interest rate charged is determ
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Continued effort and focus will go
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services of the best employees. The
Page 103 and 104:
The African Bank Foundation accepts
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Index to global reporting initiativ
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Directors’ responsibility The dir
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Directors’ report 30 September 20
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INTEREST OF THE DIRECTORS IN THE SH
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n4 The strike prices of the share o
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Income statement for the year ended
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Cash flow statement for the year en
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Equity accounted income, which is i
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1.9 Revenue recognition Interest in
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Group Company 2003 2002 2003 2002 R
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Group Company 2003 2002 2003 2002 R
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Group Company 2003 2002 2003 2002 R
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111 Group 2003 2002 R000 R000 12. L
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Group Company 2003 2002 2003 2002 R
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Group Company 2003 2002 2003 2002 R
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117 Group 2003 2002 R000 R000 25. R
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Group Company 2003 2002 2003 2002 R
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One to Four to Beyond Non-interest
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One to Four to Beyond Up to one thr
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125 Group 2003 2002 R000 R000 37. O
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Appendix B Investments in associate
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Appendix D Segmental advances and p
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Appendix F Group structure and prof
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3.4.4 ensure that a comprehensive s
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7.4.3 All directors are required to
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6.3 any general payment shall be ma
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13.6 Any repurchases shall comply w
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DIRECTORS’ CURRICULUM VITAES Anto
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6. Isinqumo esejwayelekile esinguno
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12.9.1 kuyokwenziwa ngokulandela uM
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16. Ukuvota nezithunywa Bonke abani
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Form of proxy AFRICAN BANK INVESTME
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Ifomu yokuqoka isithunywa esizokume
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Members of the ABIL board ASHLEY SE
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RAMANI NAIDOO (41) BA LLB Non-execu
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Corporate information COMPANY REGIS
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GRAPHICOR 30006
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