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Reshaping African banking. Annual Report 2014 of Atlas Mara Limited
Our
Contents
Overview
Overview
01 About Atlas Mara
success
02 What will help us succeed?
Why Africa?
Why Africa?
18 What is our vision?
20 Africa in numbers
22 Too big to ignore
24 The rise and rise of cities
24 Governance and the rule of law
26 Trade and investment
28 Natural resources
30 Technology
is linked
32 The Atlas Mara opportunity
Strategy
Strategy
34 Chairman’s letter
38 Chief Executive Officer’s letter
40 Business model
42 Strategy and key performance indicators
46 Relationships and responsibilities
50 Principal risks
to Africa’s
Performance
Performance
54 Chief Financial Officer’s review
of financial performance
Governance
62 Chairman’s introduction to
success.
corporate governance
64 Board of Directors
Governance
66 Board of Directors biographies
68 Corporate Governance Report
77 Directors’ Remuneration Report
86 Directors’ Report
89 Independent Auditor’s Report
Financial statements
92 Consolidated statement of financial position
Financial statements
93 Consolidated statement of loss
93 Consolidated statement of other
comprehensive income
94 Consolidated statement of changes
in equity
96 Consolidated statement of cash flows
97 Organisation and significant
accounting policies
101 Notes to the financial statements
Atlas Mara Limited (“Atlas Mara” or “the Company” and, together Atlas Mara’s strategy is to create sub-Saharan Africa’s premier
Additional information
with its subsidiaries, “the Group”) is a rapidly growing sub-Saharan financial institution. We recognise that this is an audacious goal.
Additional information African (or “SSA”) financial services group listed on the London We intend to achieve this by:
172 Share price information
173 Simplified company structure
Stock Exchange. Since its founding by Bob Diamond and –– combining our global institutional knowledge with our
Ashish J. Thakkar in late 2013, we have acquired, by way of four extensive local insights and experience;
transactions1, control of (or significant stakes in) banking operations –– harnessing our access to capital, liquidity and funding to
in seven sub-Saharan African countries, including Botswana, both support growth and enhance the competitiveness of
Zimbabwe, Zambia, Tanzania, Mozambique, Rwanda and Nigeria, our existing operations;
For more information about Atlas Mara
several of which rank amongst the fastest growing countries –– leveraging technology to provide innovative and differentiated
go to http://atlasmara.com in the world. product offerings and excellent customer service; and
–– continuing to attract and retain top talent – people who share
We believe in sub-Saharan Africa’s potential. We believe that our passion for Africa and our mission to effect change.
the multi-faceted drivers of Africa’s growth will support a bright,
sustainable future. We believe that access to financial services
and competitive banking sectors can improve people’s lives. We
believe that we can be a positive disruptive force in the markets
in which we operate. We believe that we can create meaningful
value for our stakeholders.
1. ABC Holdings Limited (“BancABC”), ADC African Development Corporation
AG (“ADC”), BRD Commercial Bank Ltd (“BRD Commercial”) and Union Bank
of Nigeria plc (“UBN”) (30% direct and indirect stake)
01 Annual Report 2014
Atlas Mara Limited
What will help
Overview
Operating, not
us succeed? just investing
We are operators. We have We understand the
Why Africa?
built businesses. We have run complexities, challenges
large, multi-national, financial and opportunities associated
services groups. We have with the markets in
operated extensively across which we have operations
sub-Saharan Africa. and investments.
Strategy
Performance
Governance
Financial statements
Additional information
Leadership.
02 Annual Report 2014
Atlas Mara Limited
03 Annual Report 2014
Atlas Mara Limited
What will help
Overview
Growing while
us succeed? others are retreating
Operating with
Why Africa?
permanent capital
Building strong ties
with development
Strategy
financial institutions
Opportunities for growth a vacuum that Atlas Mara
across sub-Saharan is seeking to fill.
Performance
Africa abound. However,
constraints on capital, We have raised significant
liquidity and funding have equity capital, executed
served as a brake on multiple transactions and
economic expansion. are evaluating several more.
There are few, if any, SSA- We have a London share
based financial institutions listing providing access to
that would not benefit from the equity capital markets.
Governance
enhanced access to all
three levers for growth. Additionally, we have a
network of deep relationships
Capital.
At the same time, due to the with development financial
introduction of Basel III and institutions (“DFIs”) for whom
issues in their domestic the provision of funding to
markets, many international financial services companies
financial groups are retreating is consistent with their
Financial statements
from the continent, creating development mandates.
Liquidity.
Additional information
Funding.
04 Annual Report 2014
Atlas Mara Limited
05 Annual Report 2014
Atlas Mara Limited
What will help
Overview
Leveraging
us succeed? leap-frogging
technologies
Why Africa?
There is a technological access, product availability
revolution underway across and service to our existing
sub-Saharan Africa. African customers and leverage
innovations are being applications to increase
exported and copied around financial inclusion and bank
the world. The lack of legacy the under- and un-banked.
systems in the region has
Strategy
created unique opportunities Migrating from mobile
to create new solutions to money transfer to mobile
historical problems. banking is an example
of the step-changes
We intend to harness in the provision of
technology to ensure the technology-enabled
soundness and efficiency of financial services that
our infrastructure, enhance we are actively evaluating.
Performance
Governance
Financial statements
Additional information
Technology.
06 Annual Report 2014
Atlas Mara Limited
07 Annual Report 2014
Atlas Mara Limited
What will help
Overview
Buying, protecting
us succeed? and growing assets
We have a three-pillar model Case study: BancABC
Why Africa?
for growing the Company. Since closing the acquisition
of BancABC in late August
Buy 2014, we have been working
We have a robust pipeline closely with the bank in:
of prospective merger and –– improving credit
acquisition candidates and processes;
are evaluating and negotiating –– identifying a number
potential acquisitions and of “quick wins”;
Strategy
partnerships. –– successfully supporting
BancABC’s obtaining
Protect $125 million of DFI
We are actively involved funding; and
in enhancing the operations –– injecting $100 million
of operating subsidiaries of funds to support
across the Group. We the business and its
have numerous initiatives growth aspirations.
Performance
underway that are expected
to directly translate into
bottom line results.
Grow
We are focused on
extracting synergies
and deploying capital
Governance
to drive growth.
Buy.
BancABC
www.bancabc.com
Financial statements
Protect.
Additional information
Grow.
08 Annual Report 2014
Atlas Mara Limited
09 Annual Report 2014
Atlas Mara Limited
What will help
Overview
Attracting high-
us succeed? calibre talent
We are focused on attracting experienced, like-minded
Why Africa?
and retaining the best talent people who share our
in the industry. Since our passion and vision to
founding, we have been create sub-Saharan Africa’s
able to identify high-calibre, premier financial institution.
Strategy
Performance
Governance
Financial statements
Additional information
Talent.
10 Annual Report 2014
Atlas Mara Limited
11 Annual Report 2014
Atlas Mara Limited
What will help
Overview
Setting high
us succeed? standards
We view strong corporate on our way to establishing
Why Africa?
governance as a the systems and processes
“differentiator” not just a to ensure our compliance
“qualifier”. While early in with the highest standards
our journey, we are well of governance.
Strategy
Performance
Governance
Financial statements
Additional information
Governance.
12 Annual Report 2014
Atlas Mara Limited
13 Annual Report 2014
Atlas Mara Limited
What will help
Overview
Becoming the
us succeed? partner of choice
Our strategy to create innovative products to our
Why Africa?
sub-Saharan Africa’s premier customers, empowering
financial institution involves employees to grow and
becoming the “partner effect change while ensuring
of choice” for customers, accountability, earning the
employees, merger partners trust of transaction counter-
and shareholders. parties through transparent
and fair dealing, and
We will do this by offering delivering on promises
Strategy
high levels of service and to shareholders.
Performance
Governance
Financial statements
Additional information
Delivery.
14 Annual Report 2014
Atlas Mara Limited
15 Annual Report 2014
Atlas Mara Limited
Why
Our business
Overview
in numbers:
$625m
Why Africa?
Africa?
4
Strategy
of equity capital raised
An overview of our vision and
Performance
1,600+ the trends and opportunities that
we see in sub-Saharan Africa.
Governance
employees
7
acquisitions
Financial statements
completed in 2014
Operations and In this section:
investments in
01. 02. 03.
Additional information
What is our Africa in Too big
vision? numbers to ignore
$ 2.6bn
in assets
04.
The rise and
rise of cities
05.
Governance
and the rule
of law
06.
Trade and
investment
07. 08. 09.
Natural Technology The Atlas Mara
resources opportunity
countries
16 Annual Report 2014 17 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedBob Diamond Ashish J. Thakkar To fulfil its potential, Africa needs:
Overview
SSA countries
48
Founder Director Founder Director
– investment in infrastructure to
support inter- and intra-regional trade;
– good governance; and
– customer-centric, innovative, inclusive
Why Africa?
financial services. SSA population size
Although sub-Saharan Africa is seeing
broad-based economic growth and locally-
driven innovation on the one hand, there is a
937m
Strategy
Total GDP of Africa
$1.6tr
retreat of multi-national banking groups and a
lack of access to capital, liquidity and funding
by local and regional banks on the other.
Performance
To us, this provides a clear opportunity to create Source: World Bank Indicators.
a financial services group to participate in industry
consolidation and serve as a catalyst for stimulating
and accelerating economic growth. It involves
leap-frogging outdated business models through
Governance
effectively harnessing technology, offering enhanced
products and services to both retail and corporate
customers, as well as ensuring strong governance,
risk management, processes and systems.
Financial statements
Atlas Mara is the embodiment of our vision.
We plan to be a positive disruptive force in
sub-Saharan African financial services.
Additional information
Before focusing on Atlas Mara and the
01. achievements of the past 16 months, as well
as the road ahead, we would like to outline the
What is
reasons for our optimism about sub-Saharan
Africa. In particular, we describe the promising
prospects for growth and diversity that mark
it out from other developing economies.
our vision?
Bob Diamond Ashish J. Thakkar
Founder Director Founder Director
More online
http://atlasmara.com
18 Annual Report 2014 19 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedEritrea Sudan Somalia
Overview
Capital Capital Capital
Lagos to London1
5,021km
Asmara Khartoum Mogadishu
GDP GDP GDP
$3.4bn $66.6bn $1.3bn2
Population Population Population
London 6.3m 38.0m 10.5m
Senegal Mali Mauritania Burkina Faso Nigeria Niger Central Chad Democratic Ethiopia South Sudan
Capital Capital Capital Capital Capital Capital African Capital Republic of Capital Capital
Dakar Bamako Nouakchott Ouagadougou Abuja Niamey Republic N’Djamena the Congo Addis Ababa Juba
GDP GDP GDP GDP GDP GDP Capital GDP Capital GDP GDP
$14.8bn $10.9bn $4.2bn $11.6bn $521.8bn $7.4bn Bangui $13.5bn Kinshasa $47.5bn $11.8bn
Dakar to New York1
6,148km
GDP GDP
Why Africa?
Population Population Population Population Population Population Population Population Population
14.1m 15.3m 3.9m 16.9m 173.6m 17.8m $1.5bn 12.8m $32.7bn 94.1m 11.3m
Population Population
4.6m 67.5m
New York
Strategy
Guinea Guinea- Cape Verde The Gambia
Capital Bissau Capital Capital
Conakry Capital Praia Banjul
GDP Bissau GDP GDP
$6.1bn GDP $1.9bn $0.9bn
Population $1.0bn Population Population
11.7m Population 0.5m 1.8m Non sub-Saharan Dar es Salaam to Mumbai1
4,669km
1.7m
Africa
Performance
Sub-Saharan Mumbai Seychelles Tanzania
Africa Capital Capital
Victoria Dodoma
GDP GDP
Dakar $1.4bn $33.2bn
Côte d’Ivoire Liberia Sierra Leone Uganda Kenya Rwanda Burundi Population Population
0.1m 49.3m
02.
Capital Capital Capital Capital Capital Capital Capital
Yamoussoukro Monrovia Freetown Kampala Nairobi Kigali Bujumbura
Governance
GDP GDP GDP GDP GDP GDP GDP
$31.1bn $2.0bn $4.1bn $21.5bn $55.2bn $7.5bn $2.7bn
Population Population Population Lagos Population Population Population Population
20.3m 4.3m 6.1m 37.6m 44.4m 11.8m 10.2m
Africa in
Financial statements
numbers
Dar es Salaam
Ghana Togo Benin
Capital Capital Capital
Accra Lomé Porto Novo
GDP GDP GDP
$48.1bn $4.3bn $8.3bn
Population Population Population
Additional information
25.9m 6.8m 10.3m
Sub-Saharan Africa recorded a compound annual
growth rate (“CAGR”) in GDP of approximately Dakar to São Paulo1
5,306km
5% for the period from 2008-2014. The underlying São Paulo
drivers of this growth are broad-based and robust: Johannesburg
–– Favourable demographics –– Regional integration
–– Increasing rates of –– Unparalleled natural
urbanisation resources São Tomé
and Príncipe
Equatorial
Guinea
Cameroon
Capital
Gabon
Capital
Republic
of Congo
Angola
Capital
Namibia
Capital
South Africa
Capitals
Lesotho
Capital
Swaziland
Capitals
Botswana
Capital
Madagascar
Capital
Mauritius
Capital
Zimbabwe
Capital
Mozambique
Capital
Zambia
Capital
Malawi
Capital
Comoros
Capital
–– Relative political stability –– Technological innovation Capital
São Tomé
Capital
Malabo
Yaoundé
GDP
Libreville
GDP
Capital
Brazzaville
Luanda
GDP
Windhoek
GDP
Pretoria,
Cape Town,
Maseru
GDP
Lobamba,
Mbabane
Gaborone
GDP
Antananarivo
GDP
Port Louis
GDP
Harare
GDP
Maputo
GDP
Lusaka
GDP
Lilongwe
GDP
Moroni
GDP
–– Increased foreign direct and early adoption GDP
$0.3bn
GDP
$15.6bn
$29.6bn $19.3bn GDP
$14.1bn
$124.2bn $13.1bn Bloemfontein
GDP
$2.3bn GDP
$3.8bn
$14.8bn $10.6bn $11.9bn $13.5bn $15.6bn $26.8bn $3.7bn $0.6bn
investment
Population Population Population Population Population Population Population Population Population Population Population Population Population
Population Population 22.3m 1.7m Population 21.5m 2.3m $350.6bn 2.1m Population 2.0m 22.9m 1.3m 14.1m 25.8m 14.5m 16.4m 0.7m
0.2m 0.8m 4.4m Population 1.2m
53.0m
The perception gap with respect of the governments and citizenry of the
6,698km
the realisable potential of sub-Saharan 48 countries that constitute sub-Saharan Dakar to Johannesburg1
Africa is narrowing as people increasingly Africa continue to make impressive
recognise the pace of change across the forward strides. We aim to “change
continent. Although negatives such as the conversation” when it comes to GDP and Population Source: World Bank, World Development Indicators Database.
1. Source: http://distance.to.
Ebola, terrorism and corruption continue the expectations and opportunities 2. Somalia GDP as at 2012. Source: http://data.un.org.
to define some attitudes towards Africa, that define Africa in the 21st century.
20 Annual Report 2014
Atlas Mara LimitedModern Africa
51.6m
Overview
This is the world’s
03.
Population of African continent Abidjan to Paris Land mass1
1bn+
flight time4 (sq. km)
snapshot: second largest – and
second most populous – 6hrs 33mins China9,388,211
Brazil8,358,140
Too big
continent: one into USA28,080,464
Facebook users which the USA2, China, India2,973,190
United Kingdom 241,930
India, Brazil and the
Why Africa?
Total29,041,935
Population of SSA1 UK taken together,
16%
could be comfortably
382m Africa329,379,216
to ignore
in 1980
accommodated. It is
hugely diverse.
937m
Strategy
in 2013
Internet penetration Population increase in SSA since 1994 airobi to Dubai
N
371m
It seems almost impertinent to talk The population of sub-Saharan Africa flight time4
Performance
4hrs 54mins
about Africa as a “market”. has been estimated at more than 900
million. There has been a population USA 2
This is the world’s second largest – increase of approximately 270 million
and second most populous – continent: during the past 13 years alone (a 2.7%
one into which the USA2, China, India, compound annual growth rate). Young
50%
Brazil and the UK taken together, could people constitute a high proportion of
be comfortably accommodated. It is this number. In 2012, for example, 45% India
hugely diverse and richly textured. of the population of Tanzania was under
Governance
67
of urban residents The continent as a whole comprises
15 years of age. Spain, which has a
similar population to Tanzania, has a
Africa, as a continent,
are online 54 countries, and more than a billion mere 15% of its population under the will surpass China, in
people who speak up to 3,000 languages. age of 15. The United Nations has
projected that Africa, in aggregate,
terms of working age
Distances and links can be surprising. will represent 40% of global population population by 2040.
For example, Dakar in Senegal is closer growth to 2030 and McKinsey & Co.
to New York City than it is to Johannesburg expects the working age population of China
Financial statements
– and even closer to São Paulo. Abuja Africa to surpass that of China by 2040. Young population
45%
in Nigeria is as close to London as The “dependency ratio” (number of
the Tanzanian capital Dar es Salaam working age people to the number
is to Mumbai. of dependents) is expected to decline
dramatically, thus supporting increases
in GDP per capita. Luanda to
population of Tanzania under 15 years old. Rio de Janeiro
flight time4
Additional information
8hrs13mins
Top 24 languages spoken in SSA Distances and links
can be surprising.
m
For example, Dakar Brazil UK
in Senegal is closer
to New York City than
it is to Johannesburg –
and even closer to
São Paulo.
Languages spoken (approximately)
3,000
Smartphones Above map is for visualisation purposes only.
1. Source: World Bank, World Development Database.
Johannesburg to
Perthflight time4
10hrs 51mins
2. Contiguous US(excluding Alaska, Hawaii). Source: http://en.wikipedia.org/wiki/Contiguous_United_States.
Source: McKinsey Global Institute, 3. Excludes Western Sahara.
Lions go digital, November 2013. 4. Source: www.travelmath.com.
21 Annual Report 2014 22 Annual Report 2014 23 Annual Report 2014
Atlas Mara Limited Atlas Mara Limited Atlas Mara LimitedCity trends across Africa
Overview
04.
Cities in Africa with a population
over 1 million1
52
Algiers
Rabat
Casablanca
Tripoli
Alexandria
The rise and rise of cities
Giza Cairo
46 of which are in SSA.
Why Africa?
Shubra al-Khaymah
The African continent is expected to have owing to the efficiencies that stem from the By contrast, electricity generation has
the world’s fastest rate of urbanisation opportunities and services that cities can stagnated, and transport development has The number of cities with Omdurman Khartoum
from 2020 to 2050. With more than 40% provide to their residents. These include been limited. The 48 sub-Saharan African populations between 5 million and Dakar
of the population already living in cities, the ability to accelerate financial inclusion. countries, with a population of more than 10 million is expected to increase, Kano
the continent is more urbanised than 900 million, generate roughly the same from three in 2014 to 12 in 2030. Conakry
Kaduna
3
Lagos
India (30%) and closer to Chinese levels Infrastructure – making things possible power as Spain with a population of Freetown Ibadan
Addis Ababa
Strategy
(45%). Some 56% of Africa’s population Adequate and reliable social and economic 47 million, and only about 32% of the 2014 Abidjan
Benin City
Port Harcourt
is projected to be living in urban areas infrastructure, such as power plants, population of sub-Saharan Africa has Accra
Douala Yaoundé
by 2050. access to water, roads, railways, ports access to electricity. Mogadishu
and housing have long been identified as
Nairobi
There are currently 52 cities in Africa with major pre-requisites for the attainment of This will not be resolved quickly.
12
Brazzaville Kinshasha
a population of more than 1 million people sustainable growth and development of However, in the view of the International
of which 46 are in sub-Saharan Africa. African economies. In 2006, for example, Monetary Fund, modest improvement in 2030 Dar es Salaam
Of Africa’s three mega-cities (populations it was estimated that trade within the West infrastructure is not solely a matter of Luanda
Performance
greater than 10 million), two are in African Economic and Monetary Union financial constraints, but a matter of Lubumbashi
sub-Saharan Africa: Lagos (Nigeria) and (WAEMU) could increase threefold if all countries making the most of new financing
Kinshasa (Democratic Republic of Congo). intra-state roads linking the countries of instruments, removing regulatory barriers, Lusaka
By 2030, sub-Saharan Africa is expected the Union were paved. while simultaneously controlling fiscal risks Harare
to have a further three mega-cities: Dar es and maintaining debt sustainability.
Salaam (Tanzania), Johannesburg (South Progress in infrastructure so far this century
Africa) and Luanda (Angola). The number in sub-Saharan Africa has been driven by This creates a tremendous opportunity
of cities with populations of between unprecedented expansion in information/ for financial institutions to connect African Africa is expected to be Pretoria
Maputo
Governance
Soweto
5 million and 10 million is also expected to
increase, from three in 2014 to 12 in 2030.
communications technology. Mobile phone
subscriptions have grown at a rate of 40%
markets to broader international capital
markets with an emphasis on facilitating
the fastest urbanising Johannesburg
Durban
a year during the past decade, and about trade finance and making large part of the world from
Increasing urbanisation is a widely
recognised measure of economic growth
half of countries have moved from under
one phone per 100 people in 2000 to
infrastructure projects happen. 2020 to 2050. Cape Town
and increasing GDP per capita, largely more than 50 a decade later.
Population greater Population between Population greater
than 10 million 5 million and 10 million than 1 million
Financial statements
Creating a positive legacy presidents of Mozambique, Botswana
The ranks of ministries across sub-Saharan Africa
05.
While conflicts persist across the region, and Cape Verde. While this reflects well World Bank’s “Ease of Doing
sub-Saharan Africa has experienced a on the credibility of the prize, it does not Business” rankings2
are staffed by young, well-educated, ambitious
Additional information
degree of relative political stability not seen necessarily put African governance in (selected countries)
since the end of the colonial period. Ashish a good light. The parallel Ibrahim Index people who have spent time in the world’s capitals
has first-hand experience of the devastation of African Governance has shown little #7 United States
and leading businesses and have decided to return
Governance
that can be wrought by conflict, and we change in terms of which countries lead
believe that there is a conscious drive
across the region to create institutional
the league tables and which trail them. home to make a difference. #46 Rwanda
and the rule structures to ensure that the past is not
repeated. The ranks of ministries across
Is doing business in every jurisdiction easy?
No. However, the “direction of travel” in
#62 Russia
of law
sub-Saharan Africa are filled by young, our view is both positive and clear. For In terms of banking regulations, as the IMF While the IMF has recently highlighted #70 Ghana
well-educated, ambitious people who example, in the World Bank’s “Ease of has noted, we believe that multi-country that more work needs to be done in
have spent time in the world’s capitals Doing Business” rankings, Rwanda (#46), African banks can contribute positively to order to appropriately regulate the #74 Botswana
and leading businesses, and have decided Ghana (#70) and Botswana (#74), compare the economies in which they operate by: continued emergence of multi-country
to return home to make a difference. favourably to selected other developing –– increasing competition and efficiency; African banking groups, we have seen, #90 China
economies. In addition, in the last 30 years, –– increasing financial inclusion and first-hand, a concerted effort on the part
Nonetheless, there remains reason for sub-Saharan Africa has realised a steady product innovation; of sub-Saharan African central banks #111 Zambia
scepticism. One of the world’s most increase from -5 to +2 in one of the world’s –– contributing to financial stability through to coordinate their activities and align
prestigious prizes – on par, in our view, leading indicators for political authority, diversification; and their approaches to supervision. #120 Brazil
with the Nobel prizes – is funded by the the Polity IV Index. This supports the strong –– driving significant convergence through
Sudanese billionaire Mo Ibrahim to reward belief that there is increasing transparency the adoption of IFRS, implementation #136 Kenya
excellence in African leadership and and stability in the political landscape of Basel II, and asset classification.
comes with a monetary award of which benefits businesses and local #142 India
$5 million. However, it has only been communities alike.
awarded three times since its inception
in 2007. The recipients were the former
1. Source: The African Economist, December 2012.
2. Source: World Bank’s “Ease of Doing Business” report 2015. www.doingbusiness.org.
24 Annual Report 2014 25 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedOverview
Value of bank-intermediated trade
Imports in EAC, ECOWAS and SADC1 Since the late 1990s, investment in sub-Saharan finance in Africa
Africa has blossomed. The size of foreign direct
$330-350bn
$bn
250
200 187.5 195.4 203.5 investment (“FDI”) inflows into the continent,
150
150.6 as a whole, increased at a CAGR of around 13% This is roughly equal to one-third of
124.5
100
96.5 99.6 110.3 between 2000 and 2013. total African trade.3
Why Africa?
50 34.3 35.6 37.3
n/a
Capital inflows in SSA 2 (excluding SA) Value of unmet demand for
2010 2011 2012 2013
$bn
bank-intermediated trade finance3
$110-120bn
EAC ECOWAS SADC 60
50
40
Strategy
30
Exports in EAC, ECOWAS and SADC1 20
$bn 10
250 221.7 222.1 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13
220.0
200 187.4
175.6 168.4 Inward FDI flows
150 139.3
112.6
100
Performance
Announced value of FDI greenfield projects2 (cumulative 2009-2013)
50 (Manufacturing and services)
13.4 13.9 12.9
n/a
2010 2011 2012 2013 Host Total value Share of investment
region $ billion from Africa %
EAC ECOWAS SADC ECOWAS 58 37
EAC 31 36
ECCAS 23 18
Governance
BRICs exports to SSA 2 BRICs imports from SSA 2 SADC 83 17
$bn $bn COMESA 106 15
120 180 UMA 43 1
160 Africa 281 17
100
140
80 120
100
60
80 Open for business economic ties being forged by way This is a first step towards building
Financial statements
40 60 In addition to the trends in FDI, the trends of the institutionalisation of Africa’s regional capacity and competitiveness for
40
20
20 in inter- and intra-regional trade amongst trading blocs. In particular, we see the exporting globally. Geography provides
Africa’s regional economic trading blocs Southern African Development Community another rationale for boosting intra-African
’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 are equally positive. The chart opposite (“SADC”), East Africa Community (“EAC”) trade. Many African countries, for example
Brazil China India Russian Federation Total BRIC Brazil China India Russian Federation Total BRIC
shows that, since the early 2000s, and Economic Community of West African those in southern Africa, are a long way
inter-regional trade between sub-Saharan States (“ECOWAS”) as examples of the from the large consumer markets in
Africa and the BRIC countries has been impact that policy-makers focused on Europe, North America and Asia. Enhanced
increasing dramatically. In our view, this achieving common goals can have on regional trade will enable these countries
Additional information
is one of the key answers to the question economic development. Further regional to overcome the burden associated
we are sometimes asked along the lines integration will meaningfully decrease with exporting to distant markets.
of “Why is investing in Africa different historical “friction costs” arising due to
this time?”. different regulations in different countries There is also a marked shift towards
or economic zones. the services sector as a driver of growth
As opposed to previous periods of in a number of African economies.
06.
expansion, sub-Saharan Africa’s current Expanding regional trade provides This trend, which is supported by
growth is broader-based and not African countries with an opportunity local and international development
nearly as reliant upon traditional trading to address a major constraint to export agencies, reflects growing demand
relationships as it has been in the past. competitiveness imposed by the from Africa’s burgeoning middle class
Trade and
small size of their national economies. and the impact of urbanisation, as
In our view, inter- and intra-regional In particular, it will enable African well as the need for the continent
trade is critical to the sustainability of enterprises to enhance competitiveness to diversify its trade and economies
the continent’s ongoing development. through exploiting economies of scale away from commodities.
It is heartening to see the closer associated with having a larger market.
investment
EAC – East Africa Community 1. Source: Trade Map (http://www.trademap.org/
ECOWAS – Economic Community of West African States Country_SelProduct_TS.aspx); For some years,
SADC – Southern African Development Community not all countries in each trade block have
SSA – Sub-Saharan Africa reported import/export data. Values in these
BRIC – Brazil, Russia, India, China years are shown as “n/a”.
ECCAS – Economic Community of Central African States 2. Source: http://unctadstat.unctad.org/EN
COMESA – Common Market for Eastern and Southern Africa 3. Source: African Development Bank, “Trade
UMA – Union du Maghreb Arabe in Africa”, December 2014.
26 Annual Report 2014 27 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedMapping Africa’s mineral wealth 1
Overview
Investing in sub-Saharan
07. Africa is about much
more than commodities.
However, the abundance
Percentage of world’s
production
Average annual revenue
from new projects2
Natural
of sub-Saharan Africa’s Ghana, Tanzania, Mali, Guinea
and Burkina Faso
Ghana
($, constant Per cent 2011 GDP
Liberia
($, constant Per cent 2011 GDP
natural resources is
Why Africa?
2011 dollars) 2011 dollars)
difficult to overstate.
9% 2.3% 147.8%
8.5bn 1.7bn
resources Gold Jubilee Oil Fields Iron Ore and Petroleum
Strategy
Guinea Guinea Tanzania3
($, constant Per cent 2011 GDP ($, constant Per cent 2011 GDP
Beyond exports reserves including 30 billion tons in South Furthermore, internal markets are 2011 dollars) 2011 dollars)
Investing in sub-Saharan Africa is Africa and 23 billion tons in Mozambique. developing such that there is a beneficial
about much more than commodities. multiplier effect from African resources 8% 30.7% 15.0%
1.6bn 3.5bn
Nonetheless, the natural resource Between 2011 and 2013, more being put to use by Africans for Africans.
Performance
wealth of the region cannot be overstated. hydrocarbons were discovered in East In terms of oil, we are following the price
Close to 90% of the world’s production Africa than anywhere else in the world. movements closely. While falling prices Bauxite Iron Ore Gas, Gold and Nickel
of platinum group metals (PGMs) comes Several countries are in the process of will certainly impact the economies and
from mines in South Africa, Zimbabwe and securing funding to build oil refineries over government budgets of oil exporting
Russia. A recent United States Geological the next 5-10 years to meet the growing countries, oil importing nations are likely
Survey put South Africa’s gold reserves energy demand in the region. to benefit as can be seen in the following 1. Sources: Raw Materials Data, IntierraRMG, 2013,
at about 6,000 tons – more than 10% of two charts which express the amount Democratic Republic of Congo Mozambique World Bank, Africa Pulse October 2012, Volume
6, IMF, Fiscal Regimes for Extractive Industries:
the world’s recoverable resources. Ghana Of particular importance, however, is that that net importers will spend on oil, or the ($, constant Per cent 2011 GDP
Design and Implementation, 2012, US Geological
Governance
has a further 1,400 tons of reserves. commodity value addition is increasingly revenue that net oil exporters will receive, 2011 dollars)
Survey, Mineral commodity summaries 2013.
happening within sub-Saharan Africa itself expressed as a share of the country’s 2. Estimates are intended to show order of magnitude.
The continent has globally significant rather than abroad. Sub-Saharan Africa GDP assuming different oil prices. Revenue projections are highly sensitive to
53% 21% 27.3%
3.5bn
assumptions about prices, phasing of production,
quantities of oil and copper, uranium and value-added on manufactured products and underlying production and capital costs.
diamonds, and is believed to be sitting on increased by a CAGR of 8.3% from 3. Data represents annual revenue at peak production.
some of the world’s biggest untapped coal 2000 to 2011 (CAGR of 10.5% ex-SA). Cobalt Industrial Diamonds Gas and Coal
Financial statements
Costs and benefits Spending by importers1
Namibia and Niger Botswana
Oil-dependent economies are hurting
because of sinking oil prices, but in 6.3%
Tanzania
the short term, cheaper oil is a boon 3.7%
for new producers still importing 16% 22%
most of their energy. 6.2%
Additional information
Mozambique
3.7%
Uranium Diamonds
6.0%
Kenya
3.6%
4.8%
Brent crude, price per barrel South Africa
2.8% South Africa
Estimated annual
export revenues
$108.56 Revenue for exporters1 77% 46%
Nigeria oil exports
$57.10
100bn
2.7%
Ghana Platinum Chromite
50-day average 1 April 2015
$
1.6%
in June 2014
15.7%
Nigeria
9.3% 21%
56.0%
Angola
33.1% Manganese
Angola oil exports
Sources: Rhodium Group; US Energy Information
70bn
Administration; International Monetary Fund.
1. The amount that net importers will spend on oil, Brent crude, price per barrel
or the revenue that net oil exporters will reap,
$
At $108.56 (50-day average in June 2014) At $57.10 (on 1 April 2015)
expressed as a share of the country’s GDP.
28 Annual Report 2014 29 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedOverview
It is Atlas Mara’s
08.
Automated teller machines (ATMs) in SSA1 Forecast growth of internet
users in SSA 2
intention to be at the
forefront of innovation
and technology.
Technology
Why Africa?
167m
Mobile penetration in sub-Saharan Africa has been Technology is an area in which Atlas Mara 129 ATMs 465 ATMs
Strategy
is spending significant time and effort.
growing by 36% a year, on average, since 2000, As McKinsey & Co. recently noted,
PER 100,000 ADULTS PER 100,000 ADULTS
outperforming the 19% annual growth recorded in “Revenues and profits will migrate at scale
toward banks that successfully use digital
2004 2012
the East Asia Pacific region. Sub-Saharan African technologies to automate processes, 2012
mobile subscriptions stood at just 11 million in create new products, improve regulatory
compliance, transform the experiences Mobile phone penetration in SSA 1
2000 and reached 618 million in 2013. of their customers and disrupt key
Performance
components of the value chain.”
The leapfrog continues A growing demographic of technologically-
The number of internet users in sub-Saharan literate young people is creating a wave
Africa also grew at a 23% CAGR between of innovative solutions that are not just Sub-Saharan Africa is
2000 and 2013, and is forecast to reach
600 million by 2025 from 167 million in 2012.
Africa-specific, but can be exported to
many other markets. Beyond M-Pesa creating world-leading th rate
of 36% 600m
r ow
As a result of not having to maintain
(which was developed in Kenya) there is
a host of other initiatives that will positively
technologies, particularly ra ge y
ea rly g
Ave
in credit analysis,
Governance
legacy business models and systems, disrupt “business as usual”. In our view,
the adoption of technology in the region
is revolutionising the way companies,
with 70% mobile penetration but only
20% formal financial inclusion, there is
payments and mobile 618m
particularly banks, operate. What is an arbitrage opportunity generated where money transfer.
especially exciting is the home-grown creative solutions can achieve the goal
nature of many of the technologies and of “doing well, while doing good.” 11m
applications that are being developed.
2000 2013 2025
Financial statements
Mobile technology use1 Growth in the number of internet users in SSA1 Technology is an area
% age 15+
in which Atlas Mara is
23%
15 14.56
12 11.18
spending significant
time and effort.
Additional information
9
6 CAGR
2.97 2.70 2.51 2.35 3.00
3 1.31 1.21 1.04 1.78 1.85 1.33 2.05 1.91
0.81 0.99 0.78
1. Source: World Bank, World Development
East Asia Europe and Latin America Middle East South Asia Sub-Saharan
Indicators Database.
and Pacific Central Asia and Caribbean and North Africa Africa
2. Source: McKinsey & Co., Lions go digital,
2000 2013 November 2013.
Mobile phone used to pay bills Mobile phone used to receive money Mobile phone used to send money
Mobile subscriptions1 Mobile Internet users worldwide1 Internet usage in SSA1
Mobile subscription as
bn subscription % of total per 100 people per 100 people
2.5 (m) population 80 20
2000 2013 2000 2013 CAGR 70
2.0 60 15
East Asia 50
1.5 Pacific 235 2,237 11.5 99.5 19% 40 10
1.0 Sub- 30
0.5 Saharan 20 5
Africa 11 618 1.7 65.9 36% 10
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13
European East Asia Middle East Europe and Sub-Saharan European East Asia Middle East Sub-Saharan
Union and Pacific and North Africa Central Asia Africa (all Union and Pacific and North Africa Africa
(all income levels) (all income levels) (all income levels) income levels) (all income levels) (all income levels) (all income levels)
30 Annual Report 2014 31 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedStrategy
Overview
09.
The Atlas Mara opportunity 34 Chairman’s letter
Why Africa?
38 Chief Executive Officer’s letter
Sub-Saharan Africa’s financial sectors mature-market-based banker. However, are leading to a retrenchment by, 40 Business model
present tremendous opportunities. The despite these statistics, it is interesting particularly, European players. 42 Strategy and key performance indicators
combination of strong projected GDP to note that sub-Saharan African banks’ 46 Relationships and responsibilities
growth and low rates of financial inclusion average cost to income ratios rank among Given the information provided above,
(the African Development Bank estimates the highest in the world – which represents we hope you can appreciate why we 50 Principal risks
that SSA has the lowest deposit institution a substantial opportunity. believe so firmly in sub-Saharan Africa’s
Strategy
in the world, standing at 16.6%, on promise. There are fundamental drivers
average) underpin projections of robust, Despite these fundamentals, sub-Saharan of growth that are practically impossible
sustainable growth in banking revenues, Africa is not being inundated with to reverse. The macroeconomic prospects
which is highlighted by the charts below. expansionary capital from well-established, remain robust, despite challenges in
multi-national financial institutions. On selected markets.
Additionally, the snapshot of the current the contrary, we are seeing the reverse.
countries of operation of Atlas Mara Lacklustre growth in many mature markets There is an opportunity to deploy existing
illustrating the recent GDP growth, is requiring an enhanced focus on domestic and emerging technologies and to effect
Performance
loan-to-deposit ratios, net interest margins operations. The constraints associated with positive change on the continent by
and returns on equity recorded in these the implementation of Basel III and rapidly accelerating the pace of financial inclusion.
countries are likely to be the envy of any increasing costs of regulatory compliance
At a time when many international
financial institutions are retreating from
Forecast formally banked population in SSA sub-Saharan Africa, Atlas Mara is
m %
investing. We are investing in attractive
380
markets. We are investing to create market
Governance
400 60
304
340 leaders. And we are investing in talent.
300 272 45
218 243
174 195 We believe that as economies grow,
200 140 156 30
100 15
trade expands, and a vibrant middle
class emerges, an innovation-driven,
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
customer-focused, well-managed and
well-governed, multi-country financial
Banked population % banked institution like Atlas Mara will be able to
Financial statements
Source: Finscope; EFinA; World Bank Findex; US Census Bureau International Program reward its shareholders with attractive
returns while contributing meaningfully
to the communities in which it operates.
SSA banking revenue CAGR (%) 2013A-2016E
(selected countries) The Atlas Mara team has accomplished
% a tremendous amount during the past 16
25
25 months. We have no doubt that 2015 will
20
20 18 be equally eventful as we continue to build
Additional information
15 14 12
15 sub-Saharan Africa’s premier financial
10 7 6
services group.
5
Thank you for joining us on this journey.
Zambia Mozambique Ghana Kenya Nigeria Botswana South Africa Mauritius
SSA excl. SA 16% SSA incl. SA 13%
Source: Annual financial statements, Morgan Stanley, BankScope
Macro review of current Atlas Mara countries
Household Loan to Total banking Loan to Return on Net interest
Population GDP GDP growth expenditure GDP ratio assets deposit equity margin
(m)1 ($bn) (%) ($) (%)2 ($bn)3 (%)3 (%)4 (%)3
Botswana 2.0 14.8 5.8 3,988 32.7 7.3 81.4 30.4 7.2
Mozambique 25.8 15.6 7.4 309.7 33.8 8.9 82.6 19.8 6.2
Nigeria 173.6 521.8 5.4 698.7 13.8 154.6 82.4 17.6 7.8
Rwanda 11.8 7.5 4.7 316.5 n/a n/a n/a 18.8 10.4
Tanzania 49.3 33.2 7.0 312.0 20.2 13.5 77.3 19.5 8.9
Zambia 14.5 26.8 6.7 n/a 13.7 7.5 74.4 21.1 8.9
Zimbabwe 14.2 13.5 4.5 634.6 27.5 6.0 78.3 21.1 8.9
1. Source: World Bank, World Development Indicators Database.
2. Source: BMI Research, http://store.businessmonitor.com/africa.
3. Source: Ibid.
4. Source: Bankscope, Bureau van Dijk Electronic Publishing GmbH, 2013 data.
32 Annual Report 2014 33 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedChairman’s letter
Overview
To invest
As Chairman of Atlas Mara, I am pleased to introduce While selected headwinds exist, we are confident that average
Why Africa?
our first Annual Report. growth across our asset base – not to mention the countries
that we are evaluating for expansion – will meaningfully exceed
Our first 16 months have been remarkable. We have raised that in mature markets and will continue to provide a supportive
in Africa,
$625 million of equity capital and successfully completed four backdrop for financial services.
transactions. As a result, we have established a company
with operations or investments in seven sub-Saharan African Banking in Africa
countries, and effected the transition of Atlas Mara from The fundamental drivers underpinning various countries’
invest in
a concept into a fully-fledged operating company. At the growth – demographics, urbanisation, an expanding middle
Strategy
same time, we have successfully recruited a team of talented class, technology-driven leap-frogging – have ensured that
professionals and Board members, who share our belief in the banking markets in sub-Saharan Africa have continued to
opportunity to create sub-Saharan Africa’s premier financial experience a period of robust growth. This is particularly true
institution and have the passion, experience and drive to in West Africa (notably Ghana and Nigeria), East Africa and
Atlas Mara.
execute our strategy. selected southern African markets, such as Mozambique.
The combination of strong GDP growth, low rates of financial
As a number of multi-national financial institutions have been inclusion, high rates of mobile phone penetration and innovation
scaling back their operations in sub-Saharan Africa, we have in mobile banking services, mean that financial services in
Performance
seen an increase in cross-border M&A activity among financial sub-Saharan Africa remain an attractive investment.
Arnold Ekpe institutions in the region, as well as in-market consolidation.
Chairman We believe we have played a role in catalysing these trends Focus on corporate governance
and that we will also benefit from them, as we continue Achieving Atlas Mara’s vision in sub-Saharan Africa requires
to build an extensive pipeline of attractive opportunities. that we attract and retain the best management talent in
the industry and establish effective corporate governance
Banking on Africa frameworks, which can serve as a model in the region. Our CEO,
In October 2014, before the marked decline in oil prices, the John Vitalo, will touch on the significant progress we have made
Governance
International Monetary Fund (“IMF”) wrote: “The region’s economy during the past several months in expanding our executive team.
is expected to continue growing at a fast clip, expanding by
about 5% in 2014 and 5.75% in 2015”. The IMF also said that I am fortunate to work with a committed and highly professional
the lion’s share of the region’s economies continue to experience Board of Directors. We have an exceptionally well-qualified and
solid growth driven by infrastructure investment, buoyant service engaged Board, with members having experience at the highest
sectors and strong agricultural production. It also noted that levels of banking and industry, in Africa and beyond. The Board’s
recent national accounts data depict economies that are ranks were increased in January 2015 to include Funke Opeke,
significantly more diversified than previously thought, with Amadou Raimi and Eduardo Mondlane, Jr. as Independent
Financial statements
a larger role played by the services sector. This is particularly Non-Executive Directors. Funke’s knowledge of technology
the case in Nigeria, where the service sector almost doubled and telecoms will be invaluable, given our focus on providing
its share of the economy, following a rebasing of the GDP. innovative solutions to IT and retail mobile banking in Africa.
Amadou’s audit experience will ensure that we maintain strong
While Atlas Mara shares the IMF’s optimism, we have no doubt systems and controls and the Board and Company will benefit
that current oil price levels will have a negative impact on the from Eduardo’s extensive experience advising companies on
oil-exporting economies of sub-Saharan Africa, most notably successfully growing and operating throughout sub-Saharan
Nigeria, which has recently trimmed its 2014 GDP growth Africa, particularly in financial services.
Additional information
estimate from 6.4% to 5.5%. However, while oil revenues for
Nigeria could decline, on an annualised basis, from approximately Although our Company is only 16 months old, the evolution
15% of GDP to approximately 9% (holding all other variables and cementing of our corporate governance principles have
constant), oil importing countries stand to benefit. The cost of been rapid. For Atlas Mara, corporate governance is not a
oil imports in countries such as Tanzania and Mozambique qualifier, but a differentiator. I refer further to where we stand,
could fall from approximately 6% of GDP to less than 4% and where we are heading, in the Governance section of this
(once again, holding all other variables constant). report on pages 60 to 89.
We are also closely watching global and regional geopolitical
events, such as the impact of the expected normalisation of
monetary policy in the United States and the growth prospects
of China and India with the related impact on commodity prices
in each of the markets in which we operate.
34 Annual Report 2014 35 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedChairman’s letter Since our incorporation in late
Overview
continued
November 2013, we have been
actively building the Company.
2013
Financial results and dividends
Why Africa?
December $325m
During the period from incorporation until 31 December
2014, the Company incurred a loss of $63.1 million due to a
combination of factors. These included the consolidation of our
acquisitions, costs associated with our establishment and early
operations, and unusually high levels of impairments in our
southern African operations, most notably Zimbabwe. On an
adjusted pro forma basis, excluding various non-recurring items In December 2013, we listed on the main
and including our acquisitions on a full year basis, we reported a
market of the London Stock Exchange
Strategy
profit of $7.2 million. However, these results are not representative
of the potential of our existing, or intended, asset base. raising $325 million.
As a result of both the loss referenced above and our well-
2014
elaborated growth strategy, the Directors do not recommend
May $300m
the payment of a dividend in respect of the period ended
31 December 2014.
Performance
Acknowledgements
I would like to thank our shareholders for their support,
encouragement and candour during the past 16 months;
and our co-founders, Bob and Ashish, my other fellow Board In May 2014, we launched a $300 million
members and the Atlas Mara management team for the
significant strides that they have made in executing our vision. Private Placement which was completed
in August when we re-listed.
I would also like to thank the boards of directors, management
Governance
teams and employees of our subsidiary banks, as well as our
August 98.7%
customers, for trusting us as stewards and providers of capital
and financial services.
Finally, I would like to acknowledge the regulators in the
markets in which we operate with whom we look forward
to constructive relationships. It is our intention to be a model
corporate citizen. In August 2014, we acquired 95.8% of
Financial statements
Outlook BancABC and subsequently increased
I believe firmly in the Company’s strategy of being a “positive our stake by way of mandatory offers
disruptive force” in sub-Saharan African financial services, and in Botswana and Zimbabwe.
am excited by our prospects. I have been working for more than
three decades in African banking and rarely have I seen an
October 100%
environment as we have now. I believe that Atlas Mara’s strategy
is the right one to make the most of it. I remain confident in
Additional information
the outlook for the Company, given the solid platform being
established following the acquisitions undertaken to date, the
high-quality leadership team that we have been able to attract,
and the business model that has been established to drive the
Company’s audacious goals. In October 2014, we acquired BRD
Commercial.
Arnold Ekpe
December 21%
Chairman
In December we acquired 21% of
Union Bank of Nigeria plc increasing
our combined direct and indirect stake
to approximately 30%.
These acquisitions and capital raisings have
created an attractive platform upon which
Atlas Mara intends to build, both organically
and through further acquisitions.
36 Annual Report 2014 37 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedChief Executive Officer’s letter
Overview
To help deliver
I joined as Atlas Mara’s CEO in July 2014. During my To execute our strategy, we have to have the right people,
Why Africa?
relatively short tenure, I have enjoyed an extraordinary nine and I am delighted to report that our ability to attract talent has
months leading a business that has set a number of bold exceeded my high expectations. In addition to Arina McDonald,
goals and is pursuing a strategy of “positive disruption”. our CFO (formerly at Standard Bank), and Richard Muller, our
our strategy,
Head of Integration (previously with Barclays), we announced
We have achieved a number of important milestones since in January 2015, the hiring of Beatrice Hamza Bassey as our
our IPO in December 2013. We have closed several of – what General Counsel. She was formerly head of the Africa practice
I refer to as – our “establishing acquisitions”; we have made at Hughes Hubbard in New York and is a specialist in compliance.
we have attracted
substantial progress in hiring a talented executive team; we have Even more recently, we have brought on board Tarek Rouchdy
Strategy
immersed ourselves in enhancing our operations; and we have as our Internal Auditor. Tarek was previously Auditor General at
identified a number of additional acquisition opportunities. It has the African Development Bank. While selected roles still remain
been a strong start and the way forward is clear. to be filled, the establishment of a high-calibre executive team
is substantially complete.
the right people.
Our over-arching goal is to become sub-Saharan Africa’s premier
financial services institution. For Atlas Mara, “premier” does not In terms of our financial performance, 2014 was a transition
mean the biggest. year. Due to the fact that our major operating acquisition to date,
BancABC, closed in late August 2014, our consolidated financial
Performance
It means being recognised as the best at what we do. It means results for the period ending 31 December 2014 reflect only
John F. Vitalo being a top five player in the markets in which we choose to four months of underlying business operations, but 13 months
Chief Executive Officer operate. It means being a model corporate citizen, maintaining of operating expenses, as well as one-off start-up and transaction
strong and transparent relationships with the regulators in the costs. In this report, we have provided pro forma information
markets in which we operate, and contributing to the in order to establish a base-line for future comparison and
communities in which we work. to establish the reporting framework and key performance
indicators by which we intend to manage our growing base of
It means being a “partner of choice” for institutions seeking a operations – and to be measured. As we continue to execute
Governance
strategic acquirer/partner, for shareholders seeking to invest in our strategy, we are focused on delivering improved financial
the growth in sub-Saharan financial services and, critically, for our performance across the Group, with candid reporting.
customers – the domestic and regional corporate “champions”,
small- and medium-sized entities (SMEs) and retail customers In closing, I would like to thank the co-founders, the other
who require, and deserve, access to innovative banking services members of the Atlas Mara Board and executive team, the
and excellent customer service. And finally, it means delivering management and employees of our subsidiary banks, and,
financial performance superior to our peers. critically, the regulators in the markets in which we operate,
customers and shareholders. I look forward to reporting on
Financial statements
Achieving our goals should deliver attractive returns to all the next steps in our journey.
of our stakeholders.
Our business model is straightforward. It can be summarised John F. Vitalo
in three words: buy, protect and grow. It is an approach that Chief Executive Officer
involves the acquisition and nurturing of assets so that the whole
becomes greater than the sum of the parts. What this means
in practice is described elsewhere in the report, but I want to
Additional information
emphasise that we are not waiting for one phase to end before
the next begins. Each facet of our business model is being
implemented simultaneously across the Group to ensure that
we achieve our objectives.
38 Annual Report 2014 39 Annual Report 2014
Atlas Mara Limited Atlas Mara LimitedYou can also read
