Annual results presentation For the period ended 30 September 2003

Features ►Headline earnings per share of 140,4 cents ►Sales up by 15,4% to R3,5 billion ►Non-performing loans down by R364 million ►Total ordinary dividends up 86,7% to 56 cents ►Special dividend of 100 cents ►RoA of 10,6% ►RoE of 25,9%

RoA and RoE Return on assetsReturn on equity

Dividends per share

Capital, cash flow and funding

►Establishing capital requirements ►Capital adequacy ►Return on equity ►RoA/RoE focus, underpinned by strong cash flow ►Dealing with surplus capital ►Ordinary dividends ►Other capital reduction strategies Capital philosophy

Capital, cash flow and funding Capital adequacy Target * After the special dividend

R million Capital % Required capital Non-performing loans2 625,3 Less provisions(1 914,4) Residual book value710,9100,0%710,4 Performing loans3 688,824,6%*907,5 Goodwill20,5100,0%20,5 Cash reserves1 628,04,0%65,1 Other assets526,8various183,2 Total assets6 575,0 Group risk weighted assets6 239,8 30,2% 1 887,2 Actual capital44,5%2 775,1 Surplus capital14,2%887,9 Capital, cash flow and funding Capital adequacy model * Three times average bad debt charge

Impact Data R000’s Assumptions Dividendcents100 Average number of shares000’s Average interest rate11,7% Tax rate30,0% As reportedPro forma % Impact on ratios Headline EPS (excl STC)140,4132,2(5,8%) Return on assets10,6%10,8% Return on equity25,9%30,4% Net asset value per share (cents)588,1467,4(20,5%) ABIL group capital adequacy44,5%35,1% Capital, cash flow and funding Impact of special dividend

Capital, cash flow and funding Cash flow analysis R million Cash from operations (net of tax) Change in gross advances(22)(325) Net cash flow from operations Purchase of Saambou book(1 000) Payments to shareholders(863)(132) Ordinary dividends paid(205)(132) Share buy-backs(125)0 Special dividend to be paid (incl STC)(533)0 Net cash inflow/outflow277(428)

Advances, sales and clients

% 30 September 30 September R milliongrowth LENDING BOOKS12,5%4 137,73 678,4 African Bank Retail11,2%3 430,43 084,3 Specialised Lending19,1%707,3594,1 PAY DOWN BOOKS(37,6%)2 176,43 488,3 African Bank Retail(38,3%)1 930,63 127,8 Specialised Lending(31,8%)245,8360,5 TOTAL(11,9%)6 314,17 166,6 Average gross interest-bearing3,4%5 414,85 237,7 advances Advances, sales and clients Advances analysis

Advances, sales and clients Gross advances portfolio mix

LendingSaambou R millionsbooksPersalPLB Total Gross advances as at 30 September ,3731,62 396,36 212,1 New loans granted – 1st half1 005,9––1 005,9 – 2nd half1 209,8––1 209,8 Loans transferred208,3–(208,3)– Net receipts(1 677,6)(171,5)(476,3)(2 325,4) Interest, charges and adjustments1 139,497,6517,61 754,7 Gross cash receipts(2 817,0)(269,1)(993,9)(4 080,0) Bad debts written off(400,4)(102,5)(238,6)(741,5) Balance as at 30 September ,3457,51 473,15 361,0 Advances, sales and clients Advances walkforward analysis (African Bank Retail) Sales in 2nd half of % up on 1st half

Advances, sales and clients African Bank Retail sales The 2002 sales exclude R152 million of once-off Persal consolidation loans in October to December

Advances, sales and clients Clients ►Sales up 15,4% ►Number of loans up 8,0% ►Average loan size up 6,9% ► 1,4 million new loans: ►1,1 million repeat clients ► new clients

Underwriting margin and costs

Operating margin analysis

Underwriting margin and costs Tax charge The STC on the special dividend will reduce EPS in 2004 by 12,5 cents

Underwriting margin and costs Operating costs – Cost to income ratio

Asset quality – NPLs and provisions

September R million ADVANCES Performing3 688,84 176,9 Non-performing2 625,32 989,7 TOTAL6 314,17 166,6 NPLs as a % of total advances41,6%41,7% Total provisions as % of NPLs (NPL cover)74,7%79,5% Total provisions and reserves as % of total advances31,1%33,2% I/S charge for bad debt as % of average gross advances8,2%10,6% Bad debt write-offs as % of average gross advances13,1%12,2% Bad recoveries as a % of write-offs8,5%6,8% Asset quality – NPLs and provisions

NPLs

Specific R millionNPLsprovisions Balance as at 30 September ,62 122,8 Bad debts written off(875,0) (875,0) Gross increase for the period510,6545,6 Balance as at 30 September ,31 793,5 Increase in specific provisions as a % of increase in NPLs106,9% Asset quality – NPLs and provisions Analysis of NPL and provision movements

Asset quality – NPLs and provisions Vintage chart for African Bank Retail Vintages have declined steadily over the past two years

Asset quality – NPLs and provisions African Bank (excl Saambou) – NPLs spread by loan start date

Asset quality – NPLs and provisions ►Steadily improving collection rates ►R358,1 million collected in African Bank Retail in 2003 ►13% of balance outstanding or ►65% of net NPLs after provisions ►Average collection rate on Saambou PLB 69,3% ►Recoveries of bad debts written off almost doubled in 2003, to R74,5 million Collections

Black empowerment

Total managementWomen in management First in TRAINING and DEVELOPMENT in 2003 National Lender competition 1,4 million client base  90% PDI INDIRECT SHAREHOLDING 10% – 12% DIRECT SHAREHOLDING progress in 2004

Black empowerment BEE used for 50% of PROCUREMENT SOCIAL INVESTMENT in excess of the target Black people at board and executive levels

Looking ahead

►Sales to remain robust – should largely compensate for decline in the paydown books ►Continued refining of credit underwriting – emphasis on the further development of behavioural scorecards to reward good customers ►Collection process – making progress on the rehabilitation of clients in distress ►Exploring new products and markets – establishment of the Innovation centre Mindset for growth

Looking ahead ►Harmonising of governance structures across the group ►Further progress in the employment equity objectives ►The integration of sustainability objectives across the group Building on sustainability

Looking ahead ►Gross margins to continue to increase based on changes to portfolio mix ►Bad debt charges steady at current levels ►Continued focus on reducing operating costs ►Potential earnings per share to be reduced by 12,5 cents STC for six months to 31 March 2004 The outlook for both RoA and RoE are positive. Profitability

Thank you