BANQUE COMMERCIALE DU BURUNDI 2008 REPORT. 48 th Fiscal Year

BANQUE COMMERCIALE DU BURUNDI 2008 REPORT 48th Fiscal Year 84, Chaussée P L Rwagasore - BP: 990 Bujumbura-Burundi Phone : +257 22 22 23 17 - Fax.: ...
Author: Garry Harmon
10 downloads 1 Views 4MB Size
BANQUE COMMERCIALE DU BURUNDI

2008 REPORT 48th Fiscal Year

84, Chaussée P L Rwagasore - BP: 990 Bujumbura-Burundi Phone : +257 22 22 23 17 - Fax.: +257 22 22 10 18 Swift: BCBU BI BI E-mail: [email protected] - www.bancobu.com

Une tradition de bien faire

REPORT, BALANCE SHEET, PROFITS AND LOSSES STATEMENTS ON DECEMBER 31, 2008 PRESENTED TO THE ORDINARY GENERAL MEETING OF SHAREHOLDERS OF 3RD MARCH 2009

2008 REPORT, 48th FISCAL YEAR

3

84, Chaussée P L Rwagasore - BP: 990 Bujumbura-Burundi Tél.: +257 22 22 23 17 - Fax.: +257 22 22 10 18 Swift: BCBU BI BI E-mail: [email protected] - www.bancobu.com

Une tradition de bien faire CONTENTS

KEY INDICATORS OF LAST 5 YEARS (in millions BIF)

06

SPEECH OF THE CHAIRMAN OF THE BOARD OF DIRECTORS

07

REPORT OF ACTIVITIES OF THE BOARD OF DIRECTORS

11

AUDITOR’S REPORT

21

RESOLUTIONS OF THE ORDINARY GENERAL MEETING OF SHAREHOLDERS

22

PROFITS AND LOSSES STATEMENTS

24

BALANCE SHEET

25

DISTRIBUTION NETWORK

26

INTERNATIONAL NETWORK

27

2008 REPORT, 48th FISCAL YEAR

5

Une tradition de bien faire

Total Balance Deposits Credits Stockholders’ equity Net Banking income Net profit

2008

2007

2006

2005

2004

94161 66028 47840 7914 11179 4172

67798 45782 31563 6736 8332 1869

54724 34916 31296 5642 6651 824

62277 43589 28963 5138 6015 467

54601 36868 33644 6280 6714 956

Deposit Deposits

Total Balance 70000

100000 90000

60000

80000

50000

70000 60000

40000

50000 30000

40000 30000

20000

20000 10000

10000

0

0 2004

2005

2006

2007

2008

2004

Credits

2005

2006

2007

2008

Stockholders' equity

60000

9000 8000

50000

7000

40000

6000 5000

30000

4000

20000

3000 2000

10000

1000

0

2004

2005

2006

2007

0

2008

2004

2005

Net banking income

2007

2008

Net profit

12000

4500 4000

10000

3500

8000

3000 2500

6000

2000

4000

1500 1000

2000 0

2006

500 2004

2005

2008 REPORT, 48th FISCAL YEAR

2006

2007

0

2008

6

2004

2005

2006

2007

2008

Une tradition de bien faire SPEECH OF THE CHAIRMAN OF THE BOARD OF DIRECTORS

TO THE ORDINARY GENERAL MEETING OF SHAREHOLDERS FOR THE FISCAL YEAR CLOSED ON 31/12/2008 Ladies and Gentlemen,

At the level of recovering unpaid debts, results are also very encouraging because recovering of provisions during the year 2008 has more than tripled with regard to the fiscal year 2007. This performance ensues from the implementation of an effective strategy of recovery of debts which values more negotiation than judicial solution.

On the occasion of holding this Ordinary General Assembly of the Banque Commerciale du Burundi «BANCOBU», we have the honor to present you the report of activities of the fiscal year 2008. During the fiscal year 2008, the BANCOBU was endowed of a new team at the Head office which was able to mobilize all the resources of the bank in order to reach the results that we have the pleasant duty to present to you today.

The impact of this strategy is highly remarkable for the second half of the year 2008 during which 77% of recovered provisions were able to be recovered.

Indeed, 2008 has been a year of success. The BANCOBU has realized very good financial performances.

As for the counter operations, service to customers is henceforth opened 7 days a week in all the sale points. It is in this context that during the second half of the year 2008, several customers relied on us as far as we record 1434 opened accounts in the BANCOBU’s books, against 706 opened accounts during the first half of the same year. Thus, BANCOBU is strengthening more and more its figure of a community-based bank.

With a net result of more than 4 billions, the BANCOBU has more than doubled its net result with regard to the year 2007. This result is also the most important ever realized. We have to note with satisfaction that more than 61 % of this result was generated due to efforts led during the second half of the year 2008. The performances acheived during the year 2008 provide evidence of the efficiency of strategies taken at the level of the main activities of the bank.

Ladies and Gentlemen, These impressive performances were acquired in an environment where the financial sector is experiencing a more and more strong competition. This gives then the evidence of the capacity of BANCOBU to adapt itself and to redeploy all its potential to maintain a more and more growth supported by its activities.

At the level of the collection of the customers’ savings, he outstanding of deposits has known an annual increase of 44 %. The BANCOBU has at its disposal major opportunities in this domain particularly a network of agencies and counters consisting of 18 sale points. This network extends as well in Bujumbura, the capital, as at the level of the commercial centers in the country side. It is an interconnected network which functions to the satisfaction of customers because operations are performed in real time. This network allows collecting deposits in the most competitive costs.

These performances were also possible due to the commitment of the staff and the set of governance organs of the Bank to whom we present our profound recognition for supplied efforts. We exhort them to double dynamism to further improve the results of the BANCOBU for the undergoing fiscal year.

At the level of granting credits, important initiatives have been implemented so as to take up and to strengthen relations with customers who work in the various sectors of activities. Performances realized in this domain are results of the re-energization of the commercial action based on the improvement of the framing of sale teams as well as on the re-conquest and the creation of customer loyalty. The BANCOBU is also Head Leader in the financing of the 20082009 coffee campaign and has taken an important part at the level of BIF 18.6 billions on a global financing of BIF 37.9 billions.

Ladies and Gentlemen, During the year 2009, we shall remain attentive to the big regional and worldwide challenges which can have a sensitive impact on the Bank activity. It is in particular about the effects of the international financial crisis and about the implications of the integration of Burundi in the East African Community (EAC). It is in this context that lays the intensification of the stockholders’ equity of the Bank such as asked rightly by monetary authorities. On this effect, the Bank of the Republic of Burundi (BRB) requires to increase the social capital to at least BIF 10 billions by the end of 2010. All the shareholders are urged to get involved to face this request.

All these efforts have allowed the increase in a very significant manner the credit activity to reach an annual growth of 52%.

2008 REPORT, 48th FISCAL YEAR

7

Une tradition de bien faire

«

During the fiscal year 2008,

the BANCOBU was endowed of a new team at the Head office which was able to mobilize all the resources of the bank in order to reach the results that we have the pleasant duty to present to you today

Alexis NTACONZOBA, Chairman of the Board of Directors

2008 REPORT, 48th FISCAL YEAR

8

»

Une tradition de bien faire

Jean CIZA Managing Director

Sylvère BANKIMBAGA Deputy Managing Director 2008 REPORT, 48th FISCAL YEAR

9

Une tradition de bien faire Faithful to the slogan of the BANCOBU, «UNE TRADITION DE BIEN FAIRE», we remain convinced that these strategies will lead us to present you again better results for 2009 fiscal year.

Under the constraint national, regional and even international competition, the BANCOBU will be able to achieve its ambitions for the year 2009 due to the consolidation of strategies aiming at the mobilization of management teams, the re-conquest and development of customer loyalty.

We thank you for your attention and invite you for the moment to proceed to the analysis and approval of the report of activities of the Board of Direction of BANCOBU and the report of the Auditor for the fiscal year closed on the 31st December 2008.

The mobilisation of the teams will pass on one hand through the intensification of the control mechanisms of various job-related hazards and on the other hand through the increasing of the sessions of information sharing at all the levels on the opportunities of development of the Bank activity.

Bujumbura, 3rd March, 2009

With the mobilisation of teams, the re-conquest and the increase of customer loyalty will be possible due to targeted commercial actions and a very competitive value for money.

THE CHAIRMAN OF THE BOARD OF DIRECTORS

A view of General Meeting of Shareholders

2008 REPORT, 48th FISCAL YEAR

10

Une tradition de bien faire REPORT OF ACTIVITIES OF THE BOARD OF DIRECTORS TO THE ORDINARY GENERAL MEETING OF SHAREHOLDERS The current report we have the pleasure of presenting you articulates around the following axes:

1. GENERAL CONTEXT

1. First of all, we describe the general context in which BANCOBU led its action during the 2008 fiscal year. 2. In second place, we review the main indicators of activities and profitability of the Bank. 3. In third place, we present the inventory and statement of state of repair of the main functions of support to the activities of the distributive network. 4. In fourth place, we bring up the contribution of the BANCOBU to the initiatives of humanitarian and charitable order, to demonstrations of cultural order, as well as the sponsoring of sport events. 5. Finally, we present the accounts of the BANCOBU for the fiscal year closed on 31/12/2008 duly verified by the Auditor.

1.1 Political environment The year 2008 have been marked by the end of hostilities between the former belligerent parties. This situation restored hope to the Burundian people in general and in particular to the economical operators. At the economic policies level, BURUNDI has pursued the implementation of reforms required by donors to reach the completion point so as to benefit from a lowering of the foreign debt.

Tea plantation

2008 REPORT, 48th FISCAL YEAR

11

Une tradition de bien faire 1.2 Trade and production evolution

1.3 Monetary evolution and internal public debts

At the level of national production, the Gross Domestic Product knew a growth of 4.5 % in 2008 against 3.2 % in 2007. The level of inflation on the other hand reached the level of 22 % in 2008 against 8.3 % in 2007 due essentially to the price increase of foodstuffs and transportation services.

At monetary level, the development of monetary market and bid currencies’ market created opportunities to banks to improve the management of their liquidity. As for the payment system, the opening of the third clearing house to GITEGA allowed banks to execute more quickly the clientele orders.

At the level of home trade, the traffic of goods and persons became intensified due to the sensitive improvement of security on the road axes. This created opportunities for our clientele/customers which were able to strengthen exchanges between various corners of the country especially during the various agricultural campaigns. It is necessary to note that the trade coffee produced during the 2008/2009 campaign reached 24,700 tons against 10,433 tons for the previous campaign.

Nevertheless the State debt to non banking private sector was maintained at a very high level: BIF 74 billions at the end of 2008 against 35 billions at the end of 2007. This constitutes an obstacle for economical operators of whom the main of them are at the same time creditors of the State and debtors of the banking sector. This state of fact has put certain debtors of banks in a situation where they can no more honour regularly their commitments.

At the level of foreign/external trade, the exports value crossed from BIF 52 billions in 2007 to BIF 58 billions in 2008, and that of imports from BIF 324 billions to BIF 432 billions.

Coffee plantation

2008 REPORT, 48th FISCAL YEAR

12

Une tradition de bien faire 2. ACTIVITY AND PROFITABILITY INDICATORS 2.1 DISTRIBUTION NETWORK Strong of a long tradition of relations both in the capital Bujumbura as at the level of big trade centres in the country side, the BANCOBU practises its activity of resource collection and granting credits through a distribution network spread all over the national territory. This network makes the BANCOBU to be a community-based bank to better serve its clientele.

opening of counters at KENYA AIRWAYS offices in Bujumbura and in the trade centre of KAYOGORO in MAKAMBA province. The BANCOBU is operating in 10 provinces and has for the moment 18 sale points. Soon, these sale points will increase to 20 by the opening of the QUARTIER ASIATIQUE agency, located in the OREE DU GOLF building and that of RUVUMERA market situated in the urban district of BUYENZI.

During the 2008 fiscal year, this network was enlarged with the

Inauguration of the Q. Asiatique Agency

2008 REPORT, 48 FISCAL YEAR th

13

Une tradition de bien faire 2.1.1 RESOURCES COLLECTION Table n°1: Deposits evolution (in million of Bif) Sections

31/12/08

At sight deposits Term deposits Deposits books TOTAL

value 50 691 10 041 5 296 66 028

31/12/07 % 77 15 8 100

value 34 633 6 024 5 125 45 782

Deviation 2008 / 2007 % 76 13 11 100

value 16 058 4 017 171 20 246

% 46 67 3 44

Deposits evolution (in million of Bif) 60 000 50 000 40 000 30 000 20 000 10 000 0

2007 2008

At sight deposits

Term deposits

Deposits books

The at sight deposits crossed from BIF 35 billions on 31/12/2007 to BIF 51 billions on 31/12/2008, i.e. an increase of 46 %. The term depostis and deposits books crossed from BIF 11 billions on 31/12/2007 to BIF 15 billions on 31/12/2008, i.e. an annual increase of 36 %.

The network extension conjugated with marketing actions allowed the collection of deposits which the outstanding reached BIF 66 billions at the end of 2008 against 46 billions at the end of 2007, i.e. a growth rate of 44 %.

2.1.2. GRANTING OF CREDIT Table n°2: Evolution of the credits (in millions of Bif) Sections

31/12/08

Current account debtors Bills for collections and commitments Coffee consortium Other consortium credits TOTAL

value 18 675 14 195 10 578 4 392 47 840

2008 REPORT, 48th FISCAL YEAR

31/12/07 % 39 30 22 9 100

14

value 17 037 11 943 1 243 1 339 31 562

Deviation 2008 / 2007 % 54 38 4 4 100

value 1 638 2 252 9 335 3 053 16 278

% 10 19 751 228 52

Une tradition de bien faire The loans outstanding establishes to BIF 47, 8 billions at the end of 2008 against 31, 5 billions at the end of 2007, i.e. an annual growth of 52 %.

king capital for economical operators as well as small business and equipment within the framework of collective loans. It is necessary to remind that the BANCOBU participated in the financing of the 2008/2009 coffee campaign to a maximum of BIF 18,6 billions on a These supports have mainly served for financing necessities of col- global financing of BIF 37,9 billions. lection, manufacturing and marketing of coffee, necessities in wor-

Evolution of the credits (in millions of Bif) 20 000 15 000 2007

10 000

2008

5 000 0

Current account Debtors

Bills for collections Coffee consortium and commitments

Other consortium credits

2.1.3 DEBTS RECOVERING

2.1.5 OTHER OPERATIONS AND BANKING SERVICES

The in depth review of the recovering methods had a very important impact on the debts recovering. Indeed, the negotiation option was valued more than the judicial solution.

At the level of the counter operations, the schedule of service was reorganized to be able to serve the customers seven days a week. This is particularly about cash counter and exchange services, and WESTERN UNION.

Thus, recovery of provisions realized in 2008 almost tripled with regard to that of 2007. It is of BIF 1, 3 billions in 2008 against BIF 446 millions in 2007.

The computing interconnection within the network of agencies and various counters has significantly increased the quality of service to the customers with regards to the payment and withdrawal operations and payment by transfer.

2.1.4. FINANCE MANAGEMENT

At the level of means of payment, measures were taken to reassure more our check forms and payment orders.

The Management Board of BANCOBU has set up daily follow-up and fast reaction methods to the operations of treasury management on various markets. Thus, the Bank has improved its treasury management by participating regularly on the market of currency bids and on the monetary market. The outstanding of bonds and certificates of treasury crossed from BIF 13 billions on 31/12/2007 to BIF 18.5 billions on 31/12/2008, i.e. an annual growth of 42 %.

2008 REPORT, 48th FISCAL YEAR

On a general plan, the treatment of local operations was improved due to the opening of a third clearing house in GITEGA, after the ones of BUJUMBURA and NGOZI. As for the operations of international electronic transfers, they continued with our correspondents spread on various continents with which the BANCOBU is connected by the SWIFT network.

15

Une tradition de bien faire 2.2. INDICATORS OF MANAGEMENT incomes combined with a mastery of expenses. From a year to an other, incomes knew a growth of 44 % while the expenses knew a growth of 22 %.

The level of profitability realized during the year 2008 translates a renewal of competitiveness of the BANCOBU due to a reliable climate restored with its customers and the enthusiasm which started to reborn since second half of the year 2008 within the staff. This atmosphere allowed to realize a very significant growth of

2.2.1 INCOMES Table n°3: Evolution of incomes (in Bif) Sections

31/12/2008

1. Incomes on loan 2. Treasury incomes 3. Forex incomes 4. Sundries 5. Recovery of provisions TOTAL INCOMES

31/12/2007

5 802 416 316 1 594 526 920 4 071 150 939 1 008 860 801 1 397 596 553 13 874 551 529

Deviation 2008 / 2007

4 100 746 977 994 504 943 3 351 536 462 758 165 700 457 620 823 9 662 574 905

Value 1 701 669 339 600 021 977 719 614 477 250 695 101 939 975 730 4 211 976 624

% 41 60 21 33 205 44

Evolution of incomes (in Bif) 7 000 000 000 6 000 000 000 5 000 000 000 4 000 000 000

2007

3 000 000 000

2008

2 000 000 000 1 000 000 000 0

Incomes on loans

Treasury incomes

Forex incomes

The incomes of the BANCOBU have been established to BIF 13.9 billions in 2008 against BIF 9.7 billions in 2007, i.e. an increase of 44 %. This evolution is a logical result of the growth of the activity at the level of the various professions of the Bank as described previously.

Recovery of provisions

Incomes on investments of treasury which amount to BIF 1.6 billions on 31/12/2008 have increased by 60 % with regard to the 2007 fiscal year where they were of BIF 1 billion. The recovering efforts have allowed tripling the recovery of provisions which gets established to BIF 1.3 billions in 2008 against 446 millions in 2007.

The various sources of these incomes, namely the loan activity, the treasury management, the operations with the foreigner partners and the recovering, have all known a considerable evolution.

As for incomes on operations with foreigner partners, they knew an annual growth of 21 %, crossing from BIF 3.4 billions on 31/12/2007 to BIF 4.1 billions on 31/12/2008.

Incomes on granted loans knew an annual growth of 41 % crossing from BIF 4.1 billions on 31/12/ 2007 to BIF 5.8 billions on 31/12/2008. 2008 REPORT, 48th FISCAL YEAR

Sundries

16

Une tradition de bien faire 2.2.2 EXPENSES Table n°4: Evolution of expenses (in Bif) Sections

31/12/2008

31/12/2007

Deviation 2008 / 2007 Value

1. Interest 2. General expenses 3. Tax and taxations 4. Depreciations and provisions 5. Tax on results TOTAL EXPENSES

1 139 675 439 4 191 389 491 131 794 522 2 461 112 973 1 778 501 933 9 702 474 358

805 690 731 3 791 331 193 8 569 710 2 027 910 262 1 161 418 120 7 794 920 016

in %

333 984 708 400 058 298 123 224 812 433 202 711 617 083 813 1 907 554 342

41 11 1 438 21 53 24

Evolution of expenses (in Bif) 4 500 000 000 4 000 000 000 3 500 000 000 3 000 000 000 2 500 000 000 2 000 000 000 1 500 000 000 1 000 000 000 500 000 000 0

2007 2008

Interest

General expenses

Tax and taxations

Depreciation & provisions

Tax on resultat

The global expenses accuse an annual growth of 24 %; they are established to BIF 9.7 billions on 2008 against 7.8 billions on 2007.

31/12/ 2007 to 1.4 billions on 31/12/ 2008. This effort of expenses mastery is considerable with regard to the inflationary pressures recorded throughout the 2008 fiscal year.

We have to note that these expenses have increased less quickly than the incomes which knew an increase of 44 %.

As for the staff expenses, they cross from BIF 2.2 billions in 2007 to BIF 2.7 billions in 2008.

Operating expenses fall of 7 % crossing from 1.5 billions on

2008 REPORT, 48th FISCAL YEAR

17

Une tradition de bien faire 2.2.3 PROFIT Table n°5: Evolution of profit (in millions of Bif) Sections

31/12/2008

Treasury margin Clientele margin Intermediation margin Commissions and sundries Net banking income General expenses Tax and taxations Gross Operating profit Profit before tax Taxations NET PROFIT

31/12/2007

1 575,2 4 942,8 6 518,0 4 661,6 11 179,6 4 191,4 131,8 6 856,4 5 950,6 1778,5 4 172,1

Deviation 2008 / 2007 Value 580,7 1 549,9 2 130,6 716,6 2 847,2 400,1 123,2 2 323,9 2 921,5 617,1 2 304,4

994,5 3 392,9 4 387,4 3 945,0 8 332,4 3 791,3 8,6 4 532,5 3 029,1 1 161,4 1 867,7

% 58 46 49 18 34 11 1438 51 96 53 123

Evolution of profit (in millions of Bif) 12 000,0 10 000,0 8 000,0

2007

6 000,0

2008

4 000,0 2 000,0 0,0

Intermediation margin

Net banking income

The analysis of the earnings report informs that the banking net product crosses from BIF 8.3 billions on 31/12/2007 to BIF 11.2 billions on 31/12/2008 i.e. an annual increase of 34 %. This evolution ensues from a growth of 49 % of the intermediation margin and a growth of 18 % of commissions on operations.

it is of 53 % at the end of 2008 against 29 % at the end of 2007. After tax deduction for an amount of BIF 1.8 billions, the net result becomes BIF 4.2 billions at the end of 2008 against BIF 1.9 billions at the end of 2007, i.e. an annual growth of 123%. It is a more than considerable increase that the Bank had never known.

The exploitation ratio (cost / income ratio) is of 38.7 % on 31/12/2008 against 45 % the previous fiscal year; this translates an improvement of efficiency in the exploitation of the bank. As for the ratio of profitability of stockholders (Return on Equity),

2008 REPORT, 48th FISCAL YEAR

Net profit

18

Une tradition de bien faire 3. THE SUPPORT FUNCTIONS

Several executives and agents participated on them, and on various subjects such as:

The support functions are essentially the management of human resources and material means as well as the mastery of new tech- • financial crime prevention and anti money laundering; • techniques and tools of covering; nologies. • analysis of microfinance institutions; The efficiency of these functions engages that of the distributive • banking management control; • the stand by credit letter and the exchange risk; network and of the main professions of the bank. • IFRS accounting standards.

3.1 HUMAN RESOURCES

The procedures of loans granting to staff members have been simThe number of staff crossed from 270 units on 31/12/2007 to 278 plified in terms of speed of treatment of demands. The outstanding units on 31/12/2008, i.e. a net annual increase of 8 units (22 de- of grants to the staff members shifted from 1.1 billions in 2007 to partures and 30 new units). This net increase is explained by the 1.6 billions in 2008, i.e. an increase of 35 %. creation of new counters and agencies as well as the extension of The BANCOBU also maintained its budgetary supports at the sports the schedule of service to the customers. initiative level and at the level of contribution to the life insurance Training opportunities have been created both locally as well as of the staff of the Bank. abroad.

2008 REPORT, 48th FISCAL YEAR

19

Une tradition de bien faire 3.2 PROPERTY HOLDINGS

as BANCOBU WEB BANK, BANCOBU PHONE BANK and the modernization of the payment means with the implementation of the electronic banking.

The property park of the BANCOBU consists of 19 buildings of which 11 are used for exploitation. All these buildings appear in the balance for a moderate value of BIF 1.6 billions. In front of such a situation, the process of revaluation of these buildings is already engaged.

4. PATRONAGE AND SPONSORSHIP

The rehabilitation of these buildings as well as their indispensable reorganizations are on the way. The main objective is to create a pleasant frame of reception for the customers and better working conditions for the staff of BANCOBU. As for buildings out of exploitation, it is an issue of raising their status to make them better profitable.

The BANCOBU favours a method of targeted intervention in humanitarian actions and cultural events as well as the sponsoring of sports events. In this context, it is worth it to note the sponsors granted to the «EYE CARE» operation introduced by the BUJUMBURA Clubs of the INTERNATIONAL ROTARY as well as to programs of fighting against the VIH / AIDS. Through local communities’ requests, the BANCOBU has also supported several sports events both in Bujumbura as well as in the country side. Insofar as its accommodation capacities allow, the BANCOBU offers training occasions to the finalists of high schools and universities.

3.3 NEW TECHNOLOGIES

Due to the fact that demands are numerous in these domains, their analysis is made on basis of their impact on communities and, if possible of their counterpart at the level of business connections and of brand image of the BANCOBU.

The BANCOBU has a computer system which allows it to strengthen the control of risks and to improve the quality of services to customers.

Bujumbura, 3rd March, 2009 THE BOARD OF DIRECTORS

The BANCOBU dedicates to this system an important part of its budget, i.e. 23 % of the running expenses for the 2008 fiscal year. The management board of the Bank undertook to increase the efficiency of the computer system at the level of various professions and especially at the level of the development of new products and of the management of risks. That is why specific tools of control in every service have just been set up. At the same time, a wide forward-looking construction site has just been launched to be able to draw the best profit of this information/computer system, especially the strengthening of external and internal communication (intranet / internet) as well as the diversification of electronic products to be offered to the customers such

2008 REPORT, 48th FISCAL YEAR

20

Une tradition de bien faire AUDITOR’S REPORT – 2008 FISCAL YEAR In accordance with the measures of the decree law n°1/017 of October 23rd, 2003 stipulating the regulations of Banks and Financial Institutions, we have the honor of presenting you the report on the completion of our controlling mandate as auditor during the 2008 fiscal year.

General Assembly that the assets exceed with an amount which is higher that the minimum equity such as stipulated in the article 26, the liabilities that the bank is liable to third parties. In conclusion to our audit and in accordance with the decree law n ° 1/017 of October 23rd, 2003 we can certify that the annual accounts of BANCOBU for the 2008 fiscal year display a total of the balance Our verification has been carried in compliance with the generally sheet of BIF 94,147,635,519 (ninety four billions a hundred and foradmitted standards of international accounting revision, and consis- ty seven millions, six hundred and thirty five thousands, five hundred ted of commenting the documents and other accounting records. and nineteen), and a net profit of BIF 4,172,077,171 (four billions a hundred and seventy two millions, seventy seven thousands and We have proceeded on the 31st December 2008 to some verification hundred seventy one), and that the balance sheet, the losses and by surveys and cross-checking and to usual asset controls. Thus, the profits statement submitted to your approval reflect properly the fiverified states have been found in agreement with the accountant nancial situation of BANCOBU on the 31st December, 2008. figures. Bujumbura , 20th January, 2009 Auditor In accordance with the general standards of control, we have examiDEM CONSULT ned the asset and liability situation and the losses and profits statement closed on 31/12/2008. These statements are in accordance with the balance sheet of the verifications. We can in fact assure the

2008 REPORT, 48th FISCAL YEAR

21

Une tradition de bien faire RESOLUTIONS OF THE ORDINARY GENERAL MEETING OF SHAREHOLDERS First resolution:

Fifth resolution:

The Ordinary General Meeting of the Shareholders of the BANCOBU, deliberating in compliance with articles 36, 40 and 47 of the statutes of the Bank, after the examination of the report of the Board of Directors for the fiscal year 2008, approves this report unanimously.

The Ordinary General Meeting of the Shareholders of the BANCOBU, deliberating in accordance with the articles 36, 40 and 47 of the statutes of the Bank, after approving the accounts of the Bank, unanimously gives discharge to the Directors for their management of thefiscal year 2008.

Second resolution:

Sixth resolution:

The Ordinary General Meeting of the Shareholders of the BANCOBU, deliberating in compliance with articles 36, 40 and 47 of the statutes of the Bank, after the examination of the report of the auditor on the accounts of the fiscal year 2008, approves this report unanimously.

The Ordinary General Meeting of the Shareholders of the BANCOBU, deliberating in compliance with the articles 36, 40 and 47 of the statutes of the Bank, unanimously gives discharge to the Auditor for the control of the social fiscal year 2008.

Seventh resolution:

Third resolution:

The Ordinary General Meeting of the Shareholders of the BANCOBU, deliberating in compliance with the articles 36, 40 and 47 of the statutes of the Bank, mandates the Board of Directors to prepare a convention among the shareholders and at the latest upon of shareholders’ next Ordinary General Meeting.

The Ordinary General Meeting of the Shareholders of the BANCOBU, deliberating in compliance with articles 36, 40 and 47 of the statutes of the Bank, after hearing the report of the Board of Directors and the Auditor, approves unanimously the balance sheet, the profit and loss account and the result of the fiscal year 2008 stated at BIF 4.172.077.171.

Eighth resolution: The Ordinary General Meeting of the Shareholders of the BANCOBU, deliberating in compliance with the articles 16, 36 and 40 of the statutes of the Bank, appoints:

Fourth resolution: Taking into consideration the carrying forward of the fiscal year 2007 of BIF 325.452, the deliverable result is stated at BIF 4.172.402.623. The Ordinary General Meeting of the Shareholders of the BANCOBU, deliberating in compliance with the articles 36, 40 and 48 of the statutes of the Bank, owing to the proposal of the Board of Directors, approves unanimously the distribution as follows: 1. Legal reserve 2. Available Reserve 2.019.000.000 3. Dividends 1.540.000.000 4. Percentages 150.000.000 5. Balance carried forward 992.292 6. Balance sheet allowance 462.410.331

2008 REPORT, 48th FISCAL YEAR

1. Mr Onésime NDUWIMANA, Director for a four-year mandate which will end at the Ordinary General Meeting of the shareholders of 2013 ruling on the accounts of the 2012 fiscal year. 2. Mr Rémy SINKAZI, Director for a four-year mandate which will end at the Ordinary General Meeting of the shareholders of 2013 ruling on the accounts of the 2012 fiscal year. 3. Mr Célestin NDUWAMUNGU, Director in replacement of Mr Alexis NZOHABONIMANA for a two-year mandate which will end at the Ordinary General Meeting of the shareholders of 2011 ruling on the accounts of the 2010 fiscal year. 4. Mr Sylvère BANKIMBAGA, Director representing the private sector to the Board of Directors, to finish the mandate of Mrs Doris NDAYIRAGIJE, which will end at the Ordinary General Meeting of the shareholders of 2012 ruling on the accounts of the 2011 fiscal year. 22

Une tradition de bien faire 5. Mrs Séraphine NGARUKO representing the shareholder PHARMACIE DU ROND POINT and Mr Antoine WEGE and Prosper TURIMUCI are appointed Directors to end up the mandates of Mr Mathias BITIHARI, representing the shareholder BTC and Mr Salvator SAHINGUVU and Bonus KAMWENUBUSA which will end at the Ordinary General Meeting of the shareholders of 2012 ruling on the accounts of the 2011 fiscal year.

preserving the general interest of the Bank and having to be taken by the General Meeting of the shareholders on appropriate time.

Tenth resolution: The Ordinary General Meeting of the Shareholders of the BANCOBU, deliberating in compliance with the articles 31, 36 and 40 of the statutes of the Bank, confirms the nomination of DEM CONSULT as the Auditor of the Bank for a two-years’ mandate, which will end at the Ordinary General Meeting of shareholders of 2010 ruling on the accounts of the 2009 fiscal year. The Ordinary General Meeting confirms at the same time its allowances fixed at BIF 7.605.000, all taxes included, for each fiscal year.

Ninth resolution: The Ordinary General Meeting deliberating in compliance with the articles 22 and 40 of the statutes of the Bank gives mandate to the Board of Directors to take all necessary arrangements in order to preserve the image of the Bank beside its local and foreign correspondents and motivate all decision heading to the need of

Bujumbura, 3rd March, 2009.

THE MEMBERS OF THE BUREAU OF THE ORDINARY GENERAL MEETING OF THE SHAREHOLDERS:

Monsieur Alexis NTACONZOBA , Chairman SOCABU( Monsieur Onésime NDUWIMANA), Teller Monsieur Stanislas BANKIMBAGA, Teller Monsieur Jean CIZA, Secretary DEM CONSULT, Auditor

2008 REPORT, 48th FISCAL YEAR

23

Une tradition de bien faire PROFITS AND LOSSES STATEMENTS DEBIT 1.Interests on deposits 2.Financial expenses on loans

31.12.08 859 594 450 19 321 883

3.Staff’ salaries 4.Operating expenses 5.Taxes & excises

2 736 073 735 1 455 315 756 131 794 522

6.Forex dept.expenses

260 759 106

Payable charges

5 462 859 452

Cash-flow 7.Loss of exchange / reevaluation 8.Depreciation

4 938 341 137 0

9.Income taxe 10.Provisions for debts 11. General provisions risks 12. Provisions depreciation of other assets 13.Provisions for securities 14.Debts depreciation Profit

1 878 501 933 1 817 006 699 45 000 000

Total

2008 REPORT, 48th FISCAL YEAR

492 881 853

31.12.07 CREDIT

31.12.08

31.12.07

707 784 138 1.Income on loans 0 2.Income on treasury investments 2 242 013 905 3.Income on portfolio securities 1 549 317 288 4.Forex income 8 569 710 5.Income miscellaneous transactions 97 906 593 6.Recoveries on expenses 7. Profit on asset transfers 8. Miscellaneous profit 4 605 591 634 Income

5 802 416 316 1 594 526 920

4 100 746 977 994 504 943

3 187 500 1 995 396 552 120 227 328

0 1 264 475 420 104 858 239

727 798 666 111 777 382 45 869 925 10 401 200 589

586 476 549 32 673 103 34 157 809 7 117 893 040

2 075 754 387

2 087 061 042

1 397 596 553

457 620 823

2 512 301 406 0 9. Exchange profit on reevalution 586 263 938 10.Recoveries on depreciation and provisions 1 161 418 120 1 326 445 602 102 921 624

0 6 224 421 4 172 077 171

12 279 098 1 867 654 889

13 874 551 529 9 662 574 905

Total

24

13 874 551 529 9 662 574 905

Une tradition de bien faire BALANCE SHEET ON 31/12/2008 COMPARED TO THAT OF 31/12/2007 ASSETS

1. Current assets - Cash-BRB-CCP - Banks - Day by day loans - Other short-term assets 2. Granted Credits - Current account debtors - Bills for collection and commitments - Coffee consortium - Other consortium credits 3. Portfolio - Treasury bills and securities - investnment bonds - Securities and shares 4. Sundry 5. Head Office 6. Fixed asset - Premises - Equipment and furniture - Autres immobilisations

TOTAL

2008 REPORT, 48th FISCAL YEAR

31.12.08

31.12.07 LIABILITIES 21 514 159 091 18 246 272 888 1. Current Liabilities 8 291 223 978 6 733 357 201 - Privileged creditors 13 028 332 875 11 111 522 166 - Banks 0 0 - Call loan 194 602 238 401 393 521 - Refinancing BRB 47 840 206 789 31 562 797 604 - Other short term liabilities 18 675 288 626 17 036 894 847 2. Deposits 14 194 927 155 11 943 074 058 - At sight deposits 10 578 308 611 4 391 682 397 19 408 095 000 18 500 000 000 809 500 000 98 595 000 2 816 858 017 63 327 741 2 504 988 881 1 562 661 546 858 691 257 83 636 078

1 243 336 624 1 339 492 075

- Term deposits - Deposits books - Cash vouchers 13 079 075 000 3. Sundry 13 000 000 000 4. Head office 0 5. Special liabilities 79 075 000 - Capital 2 220 895 117 - Legal reserve 135 415 266 - Available reserve 2 554 101 954 - Merger premium 1 580 809 128 970 291 936 3 000 890

- Issuing premium - General provision for risks - Miscellaneous contingencies provisions - Internal guarantee fund - Other reserve 6. Income accounts - Profit for the previous year - Profit for the ongoing year - Profit carried forwad 94 147 635 519 67 798 557 829 TOTAL

25

31.12.08 2 739 631 629

31.12.07 1 135 420 565

262 040 563 262 211 515 0 0 2 215 379 551 66 028 249 349 50 691 354 219

193 276 027 117 028 979 0 0 825 115 559 45 782 207 447 34 632 683 949

10 040 947 719 5 295 947 411 0 15 351 351 600 0 5 856 000 318

6 024 458 780 5 125 064 718 0 13 518 509 516 0 5 493 092 935

3 520 000 000 352 000 000 314 190 021 54 661 000

3 520 000 000 250 200 000 95 190 021 54 661 000

119 539 200 462 701 000 975 056 766

119 539 200 417 701 000 975 056 766

0 57 852 331 4 172 402 623 0 4 172 077 171 325 452 94 147 635 519

0 60 744 948 1 869 327 366 0 1 867 654 889 1 672 477 67 798 557 829

Une tradition de bien faire DISTRIBUTION NETWORK HEAD OFFICE

84, Chaussée Prince Louis Rwagasore PO Box: 990 BUJUMBURA - BURUNDI Swift: BCBU BI BI Phone.: +257 22 22 23 17 Fax: +257 22 22 10 18 Web: www.bancobu.com E-mail: [email protected] Nif: 2723876322 Trade Register N° 13 143

KIRUNDO

Tel+257 22304612

MUYINGA

Tel+257 22306757

CIBITOKE

NGOZI

Tel+257 22262252

Tel+257 22302236 KAYANZA

Tel+257 22305587 KARUZI

BUBANZA

CANKUZO

MURAMVYA

Tel+257 22263117 BUJUMBURA MAIRIE

RUYIGI

MWARO

BUJUMBURA RURAL

GITEGA Tel+ 257 22402618

RUTANA

BURURI

BUJUMBURA Mairie

Tel+257 22504003 Head Agency : Tel+257 22 22 23 17 Capital City Agency: Tel+257 22 21 18 52 Q. Asiatique Agency Tel+257 22 27 32 41 BRARUDI: Tel+257 22 24 23 AIRPORT Counter: Tel+257 22 24 28 98 ONATEL Counter: Tel+257 22 25 71 74 KENYA AIRWAYS Counter: Tel+257 22 25 86 63

MAKAMBA

Tel+257 22508006

2008 REPORT, 48th FISCAL YEAR

26

Une tradition de bien faire INTERNATIONAL NETWORK EUROP

ING BELGIQUE/BRUXELLES, SWIFT: BBRUBEBB ING BANK M.V/GENEVE, SWIFT:BBRUCHGG

AMERICA

CITIBANK/NEW YORK SWIFT : CITIUS33

DRESDNER BANQUE/FRANKFURT, SWIFT: DRESDEFF

ROYAL BANK OF CANADA/TORONTO. SWIFT:ROYCCAT2

BNP-PARBAS/PARIS, SWIFT: BNPAFRPP FORTIS BANQUE/BRUXELLES, SWIFT: GEBABEBB

AFRICA

BANQUE COMMERCIALE DU RWANDA /KIGALI SWIFT: BCRWRWRW CITIBANK/NAÏROBI SWIFT: CITIKENA KENYA COMMERCIAL BANK NAIROBI, SWIFT: KCBLKENX

Our Bank is connected to SWIFT network for import-export operations 2008 REPORT, 48th FISCAL YEAR

27

Une tradition de bien faire