DGAP-News: ADC's AGM resolved to further strengthen

DGAP-News: ADC African Development Corporation AG / Key word(s): AGM/EGM/Half Year Results ADC's AGM resolved to further strengthen Supervisory Board ++ Impact of ADC's strategic direction gains traction with BancABC half-year 2013 profit almost equal to full-year 2012 results ++ UBN reports increasing half-year profit 15.08.2013 / 16:56 --------------------------------------------------------------------- Yesterday's Annual General Meeting (AGM) of ADC African Development Corporation AG (ADC), ISIN DE000A1E8NW9, has resolved to elect three additional Supervisory Board members, namely Verna Eggleston of Bloomberg Philanthropies, Arnold Ekpe, former CEO of Ecobank Group and Oltmann Siemens, former representative of the World Bank Group in Europe. The preparation of the proposed capital increase that will finalize ADC's change in strategic direction is still a key focus and fully on track, but Management and the Supervisory Board have suggested to postpone the resolution on the proposed capital increase, undertaking the offer in early 2014 to use the momentum of ADC's growth in 2013 in order to maximize value for existing shareholders. Presenting 2013 financial year data in the securities prospectus is significantly more cost efficient and representative for the pan-African banking group as it will show more than a full year of banking financial statements instead of only five months of consolidated financials in 2012. ADC has enough liquidity to finance existing operations after the 10% capital increase undertaken on 30 July 2013 at a price of EUR 9.50, which raised EUR 8.2 million for the Company. With the additional funds from the capital increase planned in early 2014, ADC aims to increase its shareholdings in core investments as well as expanding into additional key markets, which will grow and strengthen its existing banking operations. The Supervisory Board appointed Arnold Ekpe as Vice Chairman of the Supervisory Board pending the registration of the change in the articles of association in the commercial register to extend the Board to six members as well as appointing Karima Ola, Chief Investment Officer of ADC, as member of the German Management Board (Vorstand). Furthermore, BancABC and UBN H1 2013 results were announced, showing a half-year profit after tax of EUR 11.9 million for BancABC, up 133% from the same time last year, and a profit after tax of EUR 54.6 million for UBN at bank level, a 52% increase from the same period last year. Dirk Harbecke, CEO of ADC commented: 'ADC has successfully transformed itself from an investment holding company into a pan-African Banking Group with controlling stakes in core markets across sub-Saharan Africa and a team of well-known banking experts. The new legal structure has provided the company with the required flexibility to invest in additional key markets, while maintaining a high level of reporting and transparency. The decision at the AGM to elect three additional Supervisory Board members comes at a time of tremendous financial and operational growth for ADC itself as well as for its banking operations. I am honored that Ms. Eggleston, Mr. Ekpe and Mr. Siemens will join the Supervisory Board and welcome their experience and contribution at this exciting juncture. The expanded Board is committed to support an international capital increase in early 2014, a timeframe that allows our team to build additional momentum from the undervalued, but extraordinarily profitable and fast growing banks in ADC's platform.' BancABC H1 2013 results: BancABC half-year results were published this week, showing a Group pre-tax profit of BWP 169.1 million (EUR 15.7 million), a 77% increase from June 2012. Net profit for the Group was up 133%, totaling BWP 128.6 million (EUR 11.9 million) at the end of June 2013, which is close to the 2012 full-year net profit of BWP 135.2 million (EUR 13.8 million). This was driven by total revenues of BWP 701.3 million (EUR 65.2 million), up 47% from the same time last year, which is inclusive of net interest income of BWP 330.4 million (EUR 30.7 million), and non-interest income of BWP 370.9 million (EUR 34.5 million), up 37% and 58% respectively from June 2012. Net income from operations was up 77% year-over-year, at BWP 171.9 million (EUR 16.0 million), owing to a combination of higher revenues and a decline of the cost-to-income ratio to 62% from 75% at the same time last year. Deposit growth was up 2% compared to the end of the 2012 financial year and up 25% compared to June 2012, with total deposits of BWP 10.9 billion (EUR 972.3 million). Loans were up 8% from December 2012, and 26% from the same period last year, at BWP 9.9 billion (EUR 875.9 million). Total assets ended the half-year period at BWP 13.7 billion (EUR 1.2 billion), only a 2% increase from 31 December 2012, due to a deliberate policy to slow down lending and manage liquidity more conservatively. The BancABC results publication is available for download via the following link on the ADC website: www.african-development.com/en/operations/banking-operations/bancabc/ UBN H1 2013 results Union Bank of Nigeria (UBN) released its H1 2013 financial results, delivering a half-year profit after tax of NGN 9.4 billion (EUR 42.2 million) at group level, down 6% from H1 2012. At a bank level, profit after tax was NGN 11.3 billion (EUR 54.6 million), an increase of 52% year-over-year. This was driven by gross revenues for the period of NGN 56.2 billion (EUR 270.4 million) at group level, and gross revenues of NGN 48.1 billion (EUR 231.8 million) at bank level. Net interest income at bank level totaled NGN 28.8 billion (EUR 138.8 million), down 8% year-over-year, and fee & commission income of NGN 7.9 billion (EUR 38.0 million), down 12% vs. H1 2012. Bank operating income was down 12% year-over-year, at NGN 36.7 billion (EUR 176.8 million). This was largely due to an increase in interest expenses, as cost of funds increased over the last year. Deposit growth at the bank was down by 6% compared to the end of the 2012 financial year, with total deposits of NGN 456.9 billion (EUR 2.2 billion). Net loans were up 12%, at NGN 153.9 billion (EUR 728.0 million) for the half-year, while investment securities increased to NGN 297.4 billion (EUR 1.4 billion), up 6% for the half-year ended 30 June 2013. Total assets at bank level ended the half-year period at NGN 826.7 billion (EUR 3.9 billion), a 7% decrease from 31 December 2012, which totaled NGN 886.5 (EUR 4.3 billion). Net interest margins declined slightly to 9.5% in H1 2013 from 10.7% in H1 2012. Weighted average asset yields finished the period at 13.6%, up marginally from 13.2% in H1 2012. UBN's funding costs rose to 4.5% from 3.5% in H1 2012. Operational costs fell 54% year-on-year with the cost-to-income ratio falling from 75% in H1 2012 to 65% in H1 2013. The UBN results publication will be made available for download via the following link on the ADC website: www.african-development.com/en/operations/banking-operations/union-bank-of -nigeria-ubn/ About ADC ADC African Development Corporation AG (ADC) (ISIN: DE000A1E8NW9; Bloomberg: AZC.GR, www.african-development.com), is a German listed, emerging pan-African banking group. ADC has a strong footprint in Southern Africa via BancABC, a regional commercial banking platform operating in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe as well as in West Africa via Union Bank of Nigeria. Parallel to its banking operations, ADC has a private equity portfolio active in growth markets across sub-Saharan Africa. ADC follows an active management approach with a team of experts that comprise operational banking management, investment banking and merchant banking expertise. ADC optimizes its risk-return profile through a political risk insurance solution offered by the MIGA (World Bank Group). Contact: Investor Relations investor-relations@african-development.com T +49 69 719 12 80 119 End of Corporate News --------------------------------------------------------------------- 15.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: ADC African Development Corporation AG Grüneburgweg 18 60322 Frankfurt/Main Germany Phone: +49 69 719 12 80 119 Fax: +49 69 719 12 80 999 E-mail: info@african-development.com Internet: www.african-development.com ISIN: DE000A1E8NW9 WKN: A1E8NW Listed: Freiverkehr in Berlin, Düsseldorf; Frankfurt in Open Market (Entry Standard) End of News DGAP News-Service --------------------------------------------------------------------- 226140 15.08.2013