Results Announcement Bank Windhoek Holdings Ltd Group

for the year ended 30 June 2013

16 August 2013

Agenda

• Welcome• Economic Overview• Banking Sector Overview• Overview of BWH Listing• Financial Results• Way Forward• Questions

Market View- General Economic OutlookInflation

• Averaged 6.4% over the last year

• Inflationary risks closely associated with exchange rate

• We expect average inflation for 2014 to be 6.3%

• Expect repo rate to remain unchanged for the next year

JM S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0

2

4

6

8

10

12

14

Overall inflation Repo Rate

Annu

al %

chan

ge

Market View - Credit Growth

• Private sector credit grew by 15% over the past year

• Looking ahead, these levels are expected to be maintained amongst other due to recent reduction in tax rates

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M

2006 2007 2008 2009 2010 2011 2012 2013

0

5

10

15

20

0.00

5.00

10.00

15.00

20.00

Total PSC Prime lending rate (RHS)

Annu

al %

chan

ge

Housing Market

• The housing market has remained strong over the period under review, as demand continues to outstrip supply

• Slow delivery of serviced land, especially in Windhoek, continues be the main driver of sluggish growth in supply as well as adding to the current housing backlog

• Urbanisation and the consequent growing populations in cities and towns in Namibia is also seen as driving demand in the housing market

Banking Sector Overview

• Changing regulatory environment (local and international): • Enhanced capital and liquidity requirements (Basel)• Anti-Money Laundering compliance (national and international)• Standardisation of fees by regulation (consumerism)

• Increased drive for financial inclusion in Namibia

• Competition from non-bank financial service providers globally

• International focus on increased and improved security of all payment systems to counter increased incidences of fraudulent activities in financial services industry internationally

• Increased focus on the Consumer: Consumer Protection Guidelines (BON) and the Code of Banking Practice (Banks)

• Current growth rates of the Namibian banking industry expected to be sustained

Overview of BWH Listing

• The main drivers for the listing of Bank Windhoek Holdings Ltd (BWH) on the Namibian Stock Exchange were to:

– Facilitate direct investment in BWH

– Assist with the development of the Namibian capital markets

– Strengthen the capital base of Bank Windhoek Ltd in anticipation of Basel III

– Proactively satisfy the regulatory call for Namibian banking groups to list on the NSX

Total number of applications 5 771

Total value of applications N$1.34bn

Times over subscribed 3.5

Overview of BWH Listing

Volume traded 6,755,083

Value of trades N$68,183,651

Low N$9.50

Closing price on 13 August 2013 N$10.37

Increase since listing 18.5%

Market cap on 13 August 2013 N$5.2bn

20-Jun 25-Jun 30-Jun 5-Jul 10-Jul 15-Jul 20-Jul 25-Jul 30-Jul 4-Aug 9-Aug980.00

990.00

1,000.00

1,010.00

1,020.00

1,030.00

1,040.00

BWH Price

Financial Highlights

% changey-o-y

2013N$

Compared to Prospectus

forecast

Headline earnings (mil) 25% 495

Headline earnings per share (cents) 25% 109

Total advances (bn) 14% 17.7

Normalised net asset value per share (cents) 21% 532

Key indicators showing consistent improvement

2009%

2010%

2011%

2012%

2013%

Normalised return on average equity

21.0 22.3 22.5 23.3 23.7

Return on average assets 2.0 2.1 2.2 2.3 2.5

Impairment charges to average advances

0.22 0.20 0.22 0.18 0.16

Cost to income ratio 62.8 62.9 61.4 57.4 54.1

Total risk-weighted capital ratio 13.6 12.6 13.2 13.4 16.6

Bank Windhoek continues to contribute significantly to total comprehensive income

• Bank Windhoek largest contributor

• Consistent contribution from associates

• Contribution from non-banking subsidiaries expected to increase with the acquisition of CUTM

Bank Windhoek 89.1%

Other Subsidiaries & As-sociates 10.9%

Consistent double digit growth in net interest income

• Growth achieved on the back of strong asset growth

• CAGR of 16.7% over last four years

• Interest margin consistent

• Bottom of the interest rate cycle

2009 2010 2011 2012 2013 -

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Non-interest income supported by strong growth in commission and fee income

• Double digit growth over the last two years

• CAGR of 11.6% over the last four years

• As a percentage of operating expense, year on year increase from 65.6% to 68.6%

2009 2010 2011 2012 2013 -

100,000

200,000

300,000

400,000

500,000

600,000

55%

60%

65%

70%

75%

80%

85%

Non-interest income Non-interest income as % of operating expense

Continued growth in operating profit and efficiency improvements

• Continued positive differential (JAWS) between operating income and operating expense growth

• Operating income CAGR of 14.7% over the last four years compared to operating expenses CAGR of 10.2%

• Positive trend in cost to income ratio

2009 2010 2011 2012 20130

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Operating income Linear (Operating income)Operating expenses Linear (Operating expenses)

Contribution to year on year growth in total comprehensive income

• Increase in non-interest income outperforming increase in operating expenses

2012 Net interest income

Non-interest income

Operating Expenses

Subsidiaries and asso-

ciates

Tax 2013 -

100,000

200,000

300,000

400,000

500,000

600,000

416,647

129,836

59,859 56,253 14,614

49,078

515,630

Loans and Advances growing whilst improving asset quality

• Loans and advances CAGR over the last 4 years of 16% whilst NPL ratio decrease from 1.58% to 0.86%

• Year on year growth of 14%

2009 2010 2011 2012 20130

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

0.00%

0.40%

0.80%

1.20%

1.60%

Gross loans and advances to customersNon performing loan's as % of Gross loans and Advances

Funding profile

2009 2010 2011 2012 20130

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

11% 15% 16%22% 21%

27%

30% 20%

21% 23%

62%

55% 64%

57%56%

Long Medium Short

• Funding maturity profile comparing favorably with industry

• Remains key focus area

Well capitalised

• Exceeding minimum regulatory capital requirements

• Total risk-weighted capital ratio increased by 2% as a result of the public offer

Total Risk-Weighted Capital ratio

Tier 1 Risk-Based Capital Ratio

Tier 1 Leverage Ratio 0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0% 16.6%

13.2%

11.4%

10.0%

7.0%

6.0%

BWH Min regulatory requirement

Growth in Earnings per share

2009 2010 2011 2012 20130

20

40

60

80

100

120

• Consistent growth

• EPS – four year CAGR of 20.5%

• NAV per share of 532 cents and 20.7% normalised growth on 2012

• Final dividend of 14.5 cents per share paid to shareholders on 12 June 2013 prior to the listing

N$

cent

s

Delivering consistent shareholder value

Normalised return on average equity

• RoE over the last five years in excess of 20%

• RoE calculated using increased equity following the public offer is 21.9%

2009 2010 2011 2012 201319.5%

20.0%

20.5%

21.0%

21.5%

22.0%

22.5%

23.0%

23.5%

24.0%

21.0%

22.3%22.5%

23.3%

23.7%

Way Forward

• The group remains focused on delivering sustainable value:• Service Excellence

• Customer focused operating model

• Increased focus on innovation

• Product and channel developmentCustomers

• Continued focus on leadership development and talent management

• Enhanced reward and recognition schemes

• Skills development and capacity buildingPeople

Way Forward

• Embedding of the enhanced Group Risk Internal Control and Assurance FrameworkRisk

management

• Initiatives to improve operating efficiencies

• Results orientated approach to projects

• Investment in technologyEfficiencies

Way Forward

• Acquisition of Capricorn Unit Trust Management Company (CUTM)

• Explore opportunities for strategic investments

Investments

Questions?