The results of ABC Group - a regional financial institution registered in Botswana have shown significant growth with the balancesheet growing by 11% which would be above the growth in GDP in many of the countries where the group has a footprint. However, the results show the effect of the global recession and credit crunch that affected its Zambian operations. I think this might necessitate a need to invest in fresh blood in the employees of that country!. However this also shows that credit risk and risk management in general will remain key issues for the banking industry going forward.
Group total comprehensive income was affected by revaluation losses on owner occupied property of USD5.4K . The investment property also had write downs of BWP14.6K . This reflects the stress in the property market prices in the region and Zimbabwe in particular.
Exchange rate risk is also reflected in the exchange losses on translating foreign operations with USD11.02K knocking the total comprehensive income thus weighing down on the total comprehensive income which reflects a total loss of USD5.7K.
The cashflow which is the lifeblood of any business showed positive changes over the 2 years with an increase of BWP338K registered over the period. The once off disposal of associate registered a profit contributing positively to the cashflows.
Segmental results show interesting growth in Mozambique and Botswana and these seem to be jurisdictions of promise in the SADC region despite the Diamond prices that remained depressed in 2009.
The Group Chairman, an astute entrepreneur and engineer, Mr. Chdawu resigned after 9 years serving the company and one hopes for continued growth in the Bank into a true pan-african entreprise
Dony Mazingaizo has an interest in IFRS and Financial Management
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