UNAUDITED RESULTS UNAUDITED FINANCIALFINANCIAL RESULTS the Half Year Ended 30 June 2013 for thefor Half Year

Ended 30 June 2013

BANK INSURANCE ASSET MANAGEMENT
Profit After Taxation $16 million Total Comprehensive income $16 million

Financial Highlights

Profit Before Taxation $20.3 millon

I take great pleasure in presenting our financial results for the half year ended 30 June 2013. Operating Environment The economy witnessed a subdued performance during the first half of the year with the operating environment remaining largely illiquid. Real Gross Domestic Product (GDP) is now expected to grow by at most 4%, compared to the average 7% per annum recorded in the previous periods. This sluggish performance lies in the severe decline in net investment in the productive sectors, weak medium term export growth prospects and internal macroeconomic resource imbalances resulting from a growing public debt. The financial services industry in particular has been negatively affected by a declining deposit base coupled with the impact of the adoption of the MOU on bank charges. National savings continue to decline in tandem with the liquidity levels in the market. Inflation The rate of inflation has however remained relatively stable, within the single digit levels and is broadly in line with that of major trading partners. Annual inflation opened the year at 2.51%, and declined marginally to close the first half of the year at 1.87%. The downward trend in the annual rate of inflation has been attributed to the fall in crude oil prices and movements of the South African Rand exchange rate.

Chairmans Statement

Consolidated Statement of Comprehensive Income

For the half year ended 30 June 2013 Unaudited Unaudited Notes 30 June 2013 30 June 2012 US$ US$ Interest income 2 78 830 358 67 588 727 Interest expense 2 (34 905 489) (26 158 745) Net interest income 43 924 869 41 429 982 Non-interest income 3 21 348 792 20 341 596 Underwriting income (net) 4 3 915 632 2 244 813 Total income 69 189 293 64 016 391 Operating expenditure 5 (42 094 083) (37 319 506) Operating income 27 095 210 26 696 885 Charge for impairment 11.5 (6 629 237) (3 076 387) Transfer to Life Fund (164 346) (630 614) Profit before taxation - 20 301 627 22 989 884 Taxation 6.1 (4 338 518) (4 657 651) Profit for the half year after tax 15 963 109 18 332 233 Other comprehensive income Fair value adjustment on available-for-sale (AFS) financial instruments 6.3 - Income tax relating to components of other comprehensive income 6.3 - Other comprehensive income for the half year net of tax -

26 018 (2 602) 23 416 18 355 649

Capital Market Trade on the stock market saw a marked improvement compared to trades and stock values witnessed during year ended 31 December 2012. The benchmark industrial shares index closed the first half of year 2013 at 211.19 points thereby registering a growth of 38.58% since January while the mining shares index closed at 73.29 points, achieving a growth of 12.55%. The local bourse has the potential for better performance if the underlying listed entities are in a position to achieve at least 60% capacity utilisation. In the absence of such performance, most value gains are quickly eroded by ensuing bearish trends.

Total comprehensive income for the half year

15 963 109

Profit for the half year attributable to: Equity holders of parent 15 803 529 18 266 944 Non-controlling interests 159 580 65 289 15 963 109 18 332 233 Total comprehensive income for the half year attributable to: Equity holders of parent 15 803 529 18 290 360 Non-controlling interests 159 580 65 289 15 963 109 18 355 649 Earnings per share (annualised) (cents): Basic 8 5.64 5.84 Fully diluted 8 5.58 5.84 Headline 8 5.64 5.88

The CBZH stock opened the year 2013 at 10 cents and thereafter rose steadily, reaching a high of 16.5 cents on 8 March and thereafter traded lower until it closed the first half of the year 2013 at 13.5 cents. Closing at 13.5 cents, the share price achieved a year to date growth of 35% With 684.1 million shares in issue, the company closed the first half of 2013 with a market capitalisation of US$92.36 million. Overview of the Groups performance The Group continued to show impressive results which reflect sound execution of business plans. Below are the key highlights of the Groups performance for the stated period: Unaudited Half Year 30-Jun-13 $m Financial Performance Profit before taxation Profit after taxation Total comprehensive income Total assets Total equity and reserves Total deposits Total advances Other statistics Basic earnings per share(cents) Non- interest Income to total Income % Cost to income ratio % Annualised return on assets % Annualised return on equity % Growth in deposits % Growth/(decline) in advances % (Decline)/Growth in PBT % (Decline)/Growth in PAT % 11.96 7.3 (11.7) (12.9) 5.64 36.5 60.8 2.96 16.6 20.3 16.0 16.0 1 350.2 175.9 1 155.8 917.4 Unaudited Half Year 30-Jun-12 $m 23.0 18.3 18.4 1 173.6 136.9 985.7 789.8 5.84 35.3 58.3 3.8 23.6 18.8 (0.7) 19.3 34.1 24.4 8.1 45.4 48.4 7.39 33.9 57.8 4.5 32.2 55.6 45.0 50.1 1 223.1 160.7 1 032.4 854.7 Audited Year 31-Dec-12 $m

As at 30 June 2013 Unaudited Audited Notes 30 June 2013 31 Dec 2012 US$ US$ ASSETS Balances with banks and cash 9 148 422 509 180 186 510 Money market assets 10 120 356 404 24 896 421 Advances 11 917 353 172 854 689 983 Insurance assets 12 7 175 643 4 706 525 Other assets 13 28 734 259 52 217 859 Investments in other financial assets 14 19 958 461 2 181 257 Investment properties 16 20 302 084 20 335 977 Property and equipment 15 78 347 416 74 248 554 Intangible assets 17 1 678 024 2 090 819 Deferred taxation 18 7 853 084 7 539 322 TOTAL ASSETS 1 350 181 056 1 223 093 227 LIABILITIES Deposits 19 1 155 829 353 1 032 352 075 Insurance liabilities 20 8 219 884 6 647 107 Other liabilities 21 7 247 671 16 019 797 Current tax payable 578 833 5 013 168 Deferred taxation 18 2 375 902 2 383 845 TOTAL LIABILITIES 1 174 251 643 1 062 415 992 EQUITY AND RESERVES Share capital 22.1 6 841 445 Share premium 22.5 26 708 659 Treasury shares 23 (8 193 228) Non-distributable reserve 22.2 13 000 000 Revaluation reserve 20 392 736 Revenue reserves 22.3 115 814 766 Share option reserve 719 208 Equity and reserves attributable to equity holders of the parent 175 283 586 Non-controlling interests 22.4 645 827 TOTAL EQUITY & RESERVES 175 929 413 TOTAL LIABILITIES, EQUITY AND RESERVES 1 350 181 056 6 841 445 26 708 659 (8 195 417) 13 000 000 20 392 736 100 943 928 499 637 160 190 988 486 247 160 677 235 1 223 093 227

Consolidated Statement of Financial Position

The Group has enjoyed synergistic benefits, maximized effeciencies and productivity through the consolidation of activities of its respective units. I am encouraged by the continuous innovation in leading products which have met the increasing demands of our stakeholders. Performance awards May I also take this opportunity to highlight some of the awards that the Group received during the period under review. These include; The Afreximbank Financial Institutions Award for 2013 (Gold category). Zimbabwe National Chamber of Commerce (ZNCC) Business Award for having the Best Corporate Social Responsibility - HIV/ AIDS Programme during 2012. Best 2012 SMEs CSR Support by the Regional Centre for Social Responsibility (RCSR.) 2012/2013, Employer of Choice Award in the Financial Services Sector, following a survey which was undertaken by the Employers Confederation of Zimbabwe (EMCOZ) in conjunction with the Institute of People Management in Zimbabwe (IPMZ). Directorship In May 2013, Mr. M. I. O. Ben Ghali announced his retirement from the Board. I would like to thank him for the strategic role he has played as a shareholder representing the Libyan Foreign Bank. On behalf of the Board I would like to wish him well in his future endeavours. Governance The Group is cognisant of its fundamental role in our economy and therefore strong governance is integral to our long term success. The Group has remained compliant with all requirements of the regulatory bodies in its business environment and continually assesses its governance structures to ensure its effectiveness. Dividend In line with the Groups dividend growth policy, and the need to uphold shareholders investment value, the Board has declared an interim dividend of 0.1673 cents per share translating to $1 144 768. Outlook The economic climate is set to become more certain and predictive after the harmonised elections. We remain optimistic of a conducive and friendly economic environment which fosters sustainable investment. The Group will strive to contribute positively to the economic growth of the country and to make further progress in the second half of the year. Appreciation I would like to thank the Boards of the Group and its subsidiaries, management and staff for their commitment to the common goals of growth and success. To all who share our optimism for seizing great opportunities that lie ahead, we say thank you for your continuing confidence and support.

Consolidated Statement of Changes in Equity

For the half year ended 30 June 2013 Non Share Share Treasury Revaluation Share option AFS Revenue controlling capital premium shares NDR reserve reserve reserve reserve interests Total US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ June 2012 (Unaudited) Opening balance Total comprehensive income Treasury shares disposal Dividends Closing balance 6 841 445 26 708 659 (587 510) 13 000 000 15 966 335 - - - - - - - 5 454 - - - - - - - 6 841 445 26 708 659 (582 056) 13 000 000 15 966 335 - (636 497) - 23 416 - - - - - (613 081) 57 565 187 391 723 119 249 342 18 266 944 65 289 18 355 649 91 252 - 96 706 (816 948) - (816 948) 75 106 435 457 012 136 884 749

June 2013 (Unaudited) Opening balance Total comprehensive income Treasury shares disposal Dividends Employee share option reserve Closing balance 6 841 445 26 708 659 (8 195 417) 13 000 000 20 392 736 - - - - - - - 2 189 - - - - - - - - - - - - 6 841 445 26 708 659 (8 193 228) 13 000 000 20 392 736 499 637 - - - 219 571 719 208 - 100 943 928 486 247 160 677 235 - 15 803 529 159 580 15 963 109 - 28 614 - 30 803 - (961 305) - (961 305) - - - 219 571 - 115 814 766 645 827 175 929 413

L. Zembe Chairman 8 August 2013

Unaudited Financial Results

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

Consolidated Statement of Cash Flows

For the half year ended 30 June 2013 CASH FLOWS FROM OPERATING ACTIVITIES Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 20 301 627 2 602 087 414 577 (423 258) 6 629 237 197 325 10 800 435 026 25 393 6 955 219 571 30 419 340 123 279 953 (69 292 426) (95 459 983) (2 469 118) 1 112 357 23 819 577 (8 772 125) (27 781 765) (9 094 558) (6 456 983) 37 800 (17 353 949) (14 707) 353 605 (7 397 483) (1 782) (24 376 516) 30 803 (961 305) (930 502) (31 764 001) 180 186 510 148 422 509 22 989 884 2 397 001 328 204 92 261 3 076 387 (2 422 831) 464 765 346 274 168 716 27 440 661 158 240 641 (2 560 283) (19 534 820) (3 015 333) 4 107 620 (44 523 399) (56 371 944) 36 342 482 (8 552 035) 55 231 108 (446 077) 315 959 (3 660 205) (78 008) (3 868 331) 96 707 (816 948) (720 241) 50 642 536 142 453 856 193 096 392

3. NON-INTEREST INCOME Net income from trading securities Fair value adjustments on financial instruments Net income from foreign currencies dealings Commission and fee income Loss on sale of property and equipment Other operating income 4. UNDERWRITING INCOME (NET) Gross premium insurance Reinsurance Net written premium Unearned premium Net earned premium Net commission Net claims 5. OPERATING EXPENDITURE Staff costs Administration expenses Audit fees Depreciation Amortisation of intangible assets Remuneration of directors and key management personnel (included in staff costs) Fees for services as directors Pension for past and present directors Salaries and other benefits Operating Leases The following is an analysis of expenses related to operating leases: Non cancellable lease rentals are payable as follows: Less than 1 year Between 1 and 5 years

Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 76 254 423 258 4 524 244 14 752 946 (17 755) 1 589 845 21 348 792 8 855 471 (3 233 408) 5 622 063 (348 290) 5 273 773 (195 329) (1 162 812) 3 915 632 24 106 651 14 689 728 281 040 2 602 087 414 577 42 094 083 406 126 70 529 1 387 368 1 864 023 8 360 (92 261) 1 683 022 9 617 685 (168 716) 9 293 506 20 341 596 6 419 559 (3 505 361) 2 914 198 (180 426) 2 733 772 262 855 (751 814) 2 244 813 20 014 023 14 310 799 269 479 2 397 001 328 204 37 319 506 341 733 51 644 1 639 926 2 033 303

Profit before taxation Non cash items: Depreciation Amortisation Fair value adjustments Impairment on advances Unrealised gain on foreign currency position Loss on disposal of investment properties Unearned premium Claims provision Incurred But Not Reported (IBNR) Loss on sale of property and equipment Employee share option provision Operating profit before changes in operating assets and liabilities Changes in operating assets and liabilities Deposits Advances Money market assets Insurance assets Insurance liabilities Other assets Other liabilities Corporate tax paid Net cash inflow/(outflow) from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds on disposal of investment property Net change in investments Purchase of investment properties Proceeds on disposal of property and equipment Purchase of property and equipment Purchase of intangible assets Net cash outflow from investing activities CASHFLOWS FROM FINANCING ACTIVITIES Treasury shares disposal Dividend paid Net cash flow to financing activities NET INCREASE/(DECREASE) CASH AND CASH EQUIVALENTS Cash and cash equivalents at the beginning of the period Cash and cash equivalents at end of period

197 929 701 250 899 179

174 087 1 113 157 1 287 244

The Group leases a number of branches under operating leases. The leases typically run for a period of less than 5 years with an option to renew the lease after the expiry date. During the half year ended 30 June 2013, an amount of US$565 617 was recognised as rent expense in statement of comprehensive income.

Accounting Policies
1.

For the half year ended 30 June 2013 GROUP ACCOUNTING POLICIES The following paragraphs describe the main accounting policies applied consistently by the Group. 1.1 BASIS OF PREPARATION The Groups financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The financial statements are based on statutory records that are maintained under the historical cost convention as modified by the revaluation of property, equipment, investment property and certain financial instruments stated at fair value. The financial statements are presented in United States dollars (US$). Basis of consolidation The Group financial statements incorporate the financial statements of the Company and its subsidiaries. Control exists when the Group is exposed, or has rights, to variable returns from its involvement with investee and has the ability to affect the returns through its power over the investee. The results of subsidiaries acquired or disposed of during the year are incorporated from the date control was acquired and up to the date control ceased. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, income and expenses; profits and losses resulting from intra-group transactions that are recognised in assets and liabilities are eliminated in full. Non-controlling interests represent the portion of profit and net assets that is not held by the Group and are presented separately in the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, separately from parent shareholders equity. 1.2 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS In the process of applying the Groups accounting policies, management made certain judgements and estimates that have a significant effect on the amounts recognised in the financial results. Kindly refer to our website (www.cbz.co.zw) for a detailed analysis of the significant accounting estimates and judgements.

6. TAXATION Current income tax and deferred tax on temporary differences have been fully provided for. Deferred income tax is calculated using the statement of financial position liability method. Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 6.1 Analysis of tax charge in respect of the profit for the half year Current income tax charge 4 660 223 5 327 528 Deferred income tax (321 705) (669 877) Income tax expense 4 338 518 4 657 651 6.2 6.3 7. Tax rate reconciliation Notional Tax Aids levy Permanent differences Effective tax rate % % 25.00 25.00 0.75 0.75 (4.38) (5.49) 21.37 20.26

Tax effects relating to other comprehensive income Gross revaluation adjustment Tax (expense)/credit Gross fair value adjustment on AFS financial assets - Tax credit - Net fair value adjustment on AFS financial assets - Total taxation from other comprehensive income DIVIDENDS - 1 144 768 1 144 768 -

26 018 (2 602) 23 416 2 602

Interim dividend paid Interim dividend proposed 8. EARNINGS PER SHARE

903 071 903 071

Basic earnings per share amounts are calculated by dividing net profit for the half year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period. iluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of D the parent by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares adjusted for the effects of all potentially dilutive ordinary shares. Headline earnings per share amounts are calculated by dividing net profit for the half year attributable to ordinary equity holders of the parent after adjustments for excluded re-measurements by the weighted average number of ordinary shares outstanding during the period. The following reflects the income and share data used in the basic, diluted and headline earnings per share computations: Earnings per share (annualised) (cents): Basic Fully diluted Headline 8.1 EARNINGS Basic earnings (earnings attributable to holders of parent) Fully diluted Headline Number of shares used in calculations (weighted) Basic Fully diluted Headline 8.2 Reconciliation of denominators used for calculating basic and diluted earnings per share: Weighted average number of shares before adjustment for treasury shares Less: Treasury Shares held Weighted average number of shares used for basic EPS Potentially dilutive shares (Employee Share Options) Weighted average number of shares used for diluted EPS Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 5.64 5.84 5.58 5.84 5.64 5.88 15 803 529 15 803 529 15 821 284 560 833 190 565 636 886 560 833 190 18 266 944 18 266 944 18 438 262 626 117 205 626 117 205 626 117 205

Notes to the Consolidated Financial Results

For the half year ended 30 June 2013 1. INCORPORATION AND ACTIVITIES

The consolidated financial statements of the Group for the half year ended 30 June 2013 were authorised for issue in accordance with a resolution of the Board of Directors on 8 August 2013. The Group offers commercial banking, mortgage finance, asset management, short term insurance, life assurance and other financial services and is incorporated in Zimbabwe. Unaudited Unaudited 30 June 2013 30 June 2012 2. INTEREST US$ US$ Interest Income Overdrafts Loans Mortgage interest Staff loans Short-term money market assets Other investments Interest expense Call deposits Savings deposits Money market deposits Other offshore deposits 48 104 240 22 784 925 6 503 608 204 574 77 597 347 1 011 822 221 189 78 830 358 172 334 3 354 828 20 224 564 11 153 763 34 905 489 37 495 379 25 663 087 3 790 142 158 209 67 106 817 448 632 33 278 67 588 727 40 715 2 302 071 16 702 278 7 113 681 26 158 745

684 144 546 684 144 546 (123 311 356) (58 027 341) 560 833 190 626 117 205 4 803 696 565 636 886 626 117 205

Unaudited Financial Results

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (continued)

8.3 Headline Earnings

Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 18 266 944 168 716 2 602 18 438 262

Profit attributable to ordinary shareholders 15 803 529 Adjusted for excluded re-measurements: Disposal loss on property and equipment and intangibles 17 755 Tax relating to re-measurements - 15 821 284 9. BALANCES WITH BANKS AND CASH

12. INSURANCE ASSETS Reinsurance unearned premium reserve Reinsurance receivables Deferred acquisition costs Insurance premium receivables 13. 14. OTHER ASSETS Work in progress Land stands inventory Prepayments and deposits Receivables INVESTMENTS IN OTHER FINANCIAL ASSETS

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 2 095 425 1 702 790 630 771 2 746 657 7 175 643 1 060 418 2 322 194 236 684 1 087 229 4 706 525

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 102 502 494 102 502 494 77 684 016 38 778 884 33 137 879 5 767 253 180 186 510 50 000 13 239 994 441 992 11 164 435 24 896 421 1 081 658 23 814 763 24 896 421 13 989 209 10 800 401 106 811 24 896 421 24 896 421 25 014 327 24 896 421 24 896 421 24 896 421

Balance with the Reserve Bank of Zimbabwe 112 485 542 Current accounts 112 485 542 Balances with other banks and cash 35 936 967 Cash foreign 23 558 178 Nostro accounts 12 331 805 Interbank clearing accounts 46 984 148 422 509 10. MONEY MARKET ASSETS Agro Bills Call placements Accrued interest Treasury bills 10.1 Money market portfolio analysis Held to maturity Held for trading portfolio Maturity analysis Between 1 and 3 months Between 3 months and 1 year Between 1 and 5 years 10.2 Financial assets held for trading Trading bills and placements Maturity value Book value 10.3 Financial assets classification Financial assets held for trading The groups holds Treasury bills from the Reserve Bank of Zimbabwe with a value of $25 150 889. The Treasury bills are classified at fair value through profit and loss. 50 000 4 792 127 671 206 114 843 071 120 356 404 1 205 910 119 150 494 120 356 404 4 358 895 109 037 520 6 959 989 120 356 404 120 356 404 157 722 343 120 356 404 120 356 404 120 356 404

- 23 233 062 1 325 554 4 175 643 28 734 259

6 808 632 14 894 700 1 536 930 28 977 597 52 217 859

Investment in equity instruments Investments in debenture instruments 14.1 Investments in equities Listed investments Unlisted investments At cost At fair value Portfolio analysis Trading Available for sale

12 392 350 7 566 111 19 958 461 1 462 614 10 929 736 12 392 350 10 929 736 1 462 614 12 392 350 3 179 484 9 212 866 12 392 350

2 181 257 2 181 257 1 772 190 409 067 2 181 257 409 067 1 772 190 2 181 257 2 181 257 2 181 257

14.2 Investment in subsidiaries % % CBZ Bank Limited 21 839 891 100 21 839 891 100 CBZ Asset Management (Private) Limited 1 988 473 100 1 423 430 100 CBZ Building Society 19 114 990 100 19 114 990 100 CBZ Insurance (Private) Limited 374 579 58.5 374 579 58.5 CBZ Properties Limited 4 779 144 100 4 779 144 100 CBZ Life Assurance (Private) Limited 1 388 014 100 1 388 014 100 49 485 091 48 920 048 14.3 Investment in debentures Investment in debentures are held to maturity and valued at amortised cost less impairments. Investments in debentures held by the group as at 30 June 2013 are convertible and had the following features; Tenure (years) Interest rate (%) Value (US$) PROPERTY AND EQUIPMENT 5 7-10% 7 566 111 -

11 ADVANCES Overdrafts Loans Mortgage advances Interest accrued Total gross advances Impairment 469 283 437 374 060 315 104 268 385 947 612 137 10 314 651 957 926 788 (40 573 616) 917 353 172 488 988 537 303 554 515 89 980 277 882 523 329 7 621 860 890 145 189 (35 455 206) 854 689 983

15.

Leasehold Motor Computer and Work in Unaudited Audited Land Buildings improvements vehicles equipment progress 30 June 2013 31 Dec 2012 Cost US$ US$ US$ US$ US$ US$ US$ US$

Opening balance 4 496 725 44 589 498 583 689 3 239 643 20 825 952 9 691 260 83 426 767 72 233 850 Additions - 158 082 66 746 73 365 941 001 6 158 289 7 397 483 8 087 695 Revaluation - - - - - - - 3 975 867 11.1 Sectoral analysis % % Disposals - - - (44 660) (50 848) (323 200) (418 708) (870 645) Private 103 230 689 11 94 382 701 11 Transfers - 21 588 - 63 110 221 339 (642 012) (335 975) Agriculture 273 818 812 29 266 467 187 30 Closing balance 4 496 725 44 769 168 650 435 3 331 458 21 937 444 14 884 337 90 069 567 83 426 767 Mining 13 646 880 1 13 562 452 2 Manufacturing 121 082 350 13 153 521 287 17 Accumulated depreciation Distribution 226 638 607 24 216 351 971 24 Construction 4 144 602 0 4 607 354 1 Opening balance - - 135 461 1 642 160 7 400 592 - 9 178 213 5 732 274 Transport 30 453 685 3 21 584 514 2 Charge for the period - 547 069 29 335 280 377 1 745 306 - 2 602 087 4 784 926 Communication 11 985 434 1 6 636 850 1 Disposals - - - (27 393) (30 756) - (58 149) (298 554) Services 156 152 625 16 111 954 128 12 Revaluation - - - - - - - (1 040 433) Financial Organisations 16 773 104 2 1 076 745 0 Closing balance - 547 069 164 796 1 895 144 9 115 142 - 11 722 151 9 178 213 957 926 788 100 890 145 189 100 Net Book Value 4 496 725 44 222 099 485 639 1 436 314 12 822 302 14 884 337 78 347 416 74 248 554 11.2 Maturity analysis Demand 571 964 126 524 181 656 Between 1 and 3 months 4 155 215 22 299 913 There was no revaluation of property and equipment during the half year ended 30 June 2013. Properties were revalued on an open Between 3 and 6 months 44 207 680 14 543 293 market basis by an independent professional valuer, Mabikacheche and Associates as at 31 December 2012 in accordance with the Between 6 months and 1 year 23 815 921 59 863 136 Royal Institute of Chartered Surveyors Appraisal and Valuation Manual and the Real Estate Institute of Zimbabwe Standards. Between 1 and 5 years 207 382 400 169 986 402 The revaluation of land and buildings entailed the following: More than 5 years 106 401 446 99 270 789 957 926 788 890 145 189 In determining the market values of the subject properties, the following was considered: Maturity analysis is based on the remaining period from 30 June 2013 to contractual maturity. 11.3 11.4 Loans to directors, key management and employees Loans to directors and key management Included in advances are loans to executive directors and key management:Opening balance Advances made during the period Repayment during the period Closing balance Loans to employees Included in advances are loans to employees: Opening balance Advances made during the period Repayments during the period Closing balance Non performing advances Total advances on which interest is suspended 38 073 520 3 407 495 (4 032 475) 37 448 540 40 714 239 35 469 479 6 629 237 8 707 481 - (10 218 309) 40 587 888 27 268 628 13 319 260 40 587 888 506 365 719 24 728 707 700 061 388 1 231 155 814 35 492 076 9 281 704 (6 700 260) 38 073 520 41 861 695 21 667 170 4 618 173 9 169 863 14 273 35 469 479 19 213 448 16 256 031 35 469 479 397 534 723 26 543 980 726 740 897 1 150 819 600 6 133 293 2 399 065 (939 006) 7 593 352 3 674 690 3 532 271 (1 073 668) 6 133 293 Comparable market evidence which comprised complete transactions as well as transactions where offers had been made but the transactions had not been finalised. Professional judgement was exercised to take cognisance of the fact that properties in the transactions were not exactly comparable in terms of size, quality and location to the properties owned by the Group. The reasonableness of the market values of commercial properties so determined, per above bullet, was assessed by reference to the properties in the transaction. The values per square metre of lettable spaces for both the subject properties and comparables were analysed. With regards to the market values for residential properties, the comparison method was used. This method entails carrying out a valuation by directly comparing the subject property, which have been sold or rented out. The procedure was performed as follows: i. Surveys and data collection on similar past transactions. ii. Analysis of the collected data. Comparison of the analysis with the subject properties and then carrying out the valuation of the subject properties. Adjustments were made to the following aspects:

11.5 Impairments Opening balance Charge for impairment on advances Interest in suspense Provision for doubtful insurance debt Amounts written off during the period Closing balance Comprising: Specific impairments Portfolio impairments 11.6 Collaterals Notarial general covering bonds Cash cover Mortgage bonds

a) Age of property state of repair and maintenance b) Aesthetic quality quality of fixtures and fittings c) Structural condition location d) Accommodation offered size of land The maximum useful lives are as follows: Buildings 40 years Motor vehicles 3 5 years Leasehold improvements 10 years Computer equipment 5 years Furniture and fittings 10 years The carrying amount of buildings would have been US$26 899 636 had they been carried at cost. Property and equipment was tested for impairment through comparison with the open market values determined by independent valuers. No impairment was identified from the test.

Unaudited Financial Results

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (continued)

16. INVESTMENT PROPERTIES Opening balance Additions Disposals Fair valuation gain Closing balance

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 20 335 977 14 707 (48 600) - 20 302 084 17 821 110 16 113 2 498 754 20 335 977

20.1 20.1

INSURANCE CONTRACT PROVISIONS Insurance contract provision Gross Reinsurance Net US$ US$ US$ 2 845 208 8 855 471 (7 661 482) 4 039 197 1 060 418 3 280 110 (2 198 401) 2 142 127 1 784 790 5 575 361 (5 463 081) 1 897 070

(a) Provision for unearned premiums Unearned premiums beginning of period Written premiums Premiums earned during the period Unearned premiums at half year end

The carrying amount of the investment property is the fair value of the property as determined by a registered independent appraiser having an appropriate recognised professional qualification and recent experience in the location and category of the property being valued. The valuation was in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Manual and the Real Institute of Zimbabwe Standards. Fair values were determined having regard to recent market transactions for similar properties in the same location as the Groups investment properties. The properties were valued as at 31 December 2012. There was no valuation, carried out for the half year ended 30 June 2013 The rental income derived from investments properties amounted to US$634 159, with direct operating expenses amounting to US$181 406. Unaudited Audited 30 June 2013 31 Dec 2012 17 INTANGIBLE ASSETS US$ US$ Computer software At cost 3 092 444 3 090 662 Accumulated amortisation (1 414 420) (999 843) 1 678 024 2 090 819 Movement in intangible assets: Opening balance 2 090 819 2 537 393 Additions 1 782 293 337 Amortisation charge (414 577) (739 911) Closing balance 1 678 024 2 090 819 Intangible assets are carried at cost less accumulated amortisation charge. The intangible assets are amortised over a useful life of 3 years. 18 DEFERRED TAXATION Deferred tax related to items charged or credited to statement of other comprehensive income during the period is as follows: Revaluation of property and equipment Fair value adjustment Available for sale financial assets The deferred tax included in the statement of financial position and changes recorded in the income tax expenses are as follows: Deferred tax liability Fair value adjustments Prepayments Property and equipment Impairment allowance Other Add: Opening balance Closing balance Deferred tax asset Opening balance Assessed loss Impairments and provisions Other Closing balance 19. DEPOSITS Call deposits 6 576 881 Savings and other deposits 523 273 869 Money market deposits 364 662 754 Offshore deposits 252 004 169 Accrued interest 9 311 680 1 155 829 353 19.1 Deposits by source Banks 53 279 184 Money market 322 997 963 Customers 524 885 306 Offshore deposits 254 666 900 1 155 829 353 19.2 Deposits by type Retail 77 093 226 Corporate 447 792 080 Money market 376 277 147 Offshore deposits 254 666 900 1 155 829 353 19.3. Sectoral Analysis % Private 117 698 554 10 Agriculture 36 913 301 3 Mining 13 566 835 1 Manufacturing 132 577 682 11 Distribution 139 318 293 12 Construction 25 529 224 2 Transport 16 912 288 2 Communication 66 511 364 6 Services 271 666 565 24 Financial organisations 308 441 314 26 Financial and investments 26 693 933 3 1 155 829 353 100 19.4 Maturity analysis Repayable on demand Between 1 and 3 months Between 3 months and 6 months Between 6 months and 1 year Between 1 and 5 years More than 5 years Maturity analysis is based on the remaining period from 30 June 2013 to contractual maturity. 20. INSURANCE LIABILITIES Reinsurance payables Gross outstanding claims Gross unearned premium reserve Deferred reinsurance acquisition revenue 1 649 030 1 885 218 4 039 197 646 439 8 219 884 1 058 715 1 864 220 2 845 208 878 964 6 647 107 522 539 179 341 170 586 103 777 988 82 509 368 88 056 980 17 775 252 1 155 829 353 5 358 031 499 758 972 339 034 158 178 842 308 9 358 606 1 032 352 075 36 114 207 314 843 174 500 978 085 180 416 609 1 032 352 075 56 386 272 444 591 814 350 957 380 180 416 609 1 032 352 075 % 125 243 743 12 33 347 322 3 11 436 926 1 123 793 013 12 131 278 594 13 23 659 081 2 15 994 662 2 61 966 512 6 197 653 496 19 281 568 065 27 26 010 661 3 1 032 352 075 100 643 962 477 159 132 448 48 834 228 37 016 860 125 737 783 17 668 279 1 032 352 075 - - - 589 899 6 506 596 405

Outstanding claims provision Outstanding claims at beginning of period 2 406 605 1 240 933 1 165 672 Claims incurred 1 449 429 234 004 1 215 425 Incurred but not yet reported claims provision 25 393 - 25 393 Claims paid (2 221 076) (975 199) (1 245 877) Outstanding claims at half year end 1 660 351 499 738 1 160 613 5 699 548 2 641 865 3 057 683 20.1 (b) Reinsurance payables Gross Reinsurance US$ US$ Reinsurance payables at beginning of period 1 058 715 840 582 Premiums ceded during the period 3 280 110 4 996 096 Reinsurance paid (2 689 796) (4 777 963) Reinsurance payables at half year end 1 649 029 1 058 715 Unearned Deferred Commission Acquisition Net US$ US$ US$ (c) Commissions Unearned at beginning of period 236 684 243 478 (6 794) Written premiums 596 274 828 020 (231 746) Earned during the period (416 568) (516 723) 100 155 Unearned at half year end 416 390 554 775 (138 385) (d) Net claims Gross claims incurred Reinsurance claims Incurred but not yet reported claims Gross outstanding claims Reinsurance share of outstanding claims 21. (e) Net commissions Commission received Commission Paid Deferred acquisition costs Net commission OTHER LIABILITIES 924 385 5 226 968 1 096 318 7 247 671 859 007 13 087 114 2 073 676 16 019 797 Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 1 050 679 (234 004) (25 393) 898 488 (499 738) 1 240 818 872 708 (1 092 232) 24 196 (195 329) 4 196 622 (2 889 002) 517 368 1 575 770 (1 163 764) 2 236 994 1 189 541 (1 394 464) (19 108) (224 031)

28 548 (875) (35 642) - 26 (7 943) 2 383 845 2 375 902 7 539 322 (43 347) 797 211 (440 102) 7 853 084

208 547 144 646 82 385 (1 092 359) (654 969) (1 311 750) 3 099 190 2 383 845 5 759 724 152 162 1 191 116 436 320 7 539 322

Revenue received in advance Sundry creditors Other 22. EQUITY AND RESERVES

22.1 SHARE CAPITAL Authorised 1 000 000 000 ordinary shares of US$ 0.01each

10 000 000

10 000 000 6 841 445 13 000 000 13 000 000

Issued and fully paid 684 144 546 ordinary shares of US$ 0.01each 6 841 445 22.2 Non-distributable reserve Opening balance 13 000 000 Movement for the period - Closing balance 13 000 000 22.3 Revenue reserve Revenue reserves comprise: Holding company Subsidiary companies Effects of consolidation journals 22.4 Non controlling interests Non controlling interests comprise: Opening balance Total comprehensive income Closing balance 22.5 22.6 22.7 23 Share premium Opening balance Movement during the period Closing balance Available for sale reserve Opening balance Total comprehensive income Closing balance Share option reserve Opening balance Share options to employees Closing balance TREASURY SHARES Opening balance Share buyback Disposal of shares Closing balance 499 637 219 571 719 208 (8 195 417) - 2 189 (8 193 228)

14 343 927 104 948 344 (3 477 505) 115 814 766 486 247 159 580 645 827 26 708 659 - 26 708 659 - - -

15 895 428 88 490 270 (3 441 770) 100 943 928 391 723 94 524 486 247 26 708 659 26 708 659 (636 497) 636 497 -

499 637 499 637 (587 510) (7 613 361) 5 454 (8 195 417)

Unaudited Financial Results

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (continued)

24. Categories Of Financial Instruments June 2013 Financial assets Balances with banks and cash Money market assets Advances Insurance assets Investments in other financial assets Other assets Total Financial liabilities Deposits Insurance liabilities Other liabilities Current tax payable Total December 2012 Financial assets Balances with banks and cash Money market assets Advances Insurance assets Investments of other financial assets Other assets Total Held for Trading US$ 120 356 404 - - 12 392 350 - 132 748 754 - - - - - Available for sale US$ - - - - - - - - - - - - Loans and Financial assets/liabilities receivables at amortised cost US$ US$ 148 422 509 - 917 353 172 7 175 643 7 566 111 28 734 259 1 109 248 694 - - - - - - - - - - - - 1 155 829 353 8 219 884 7 247 671 578 833 1 171 875 741 Total carrying amount US$ 148 422 509 120 356 404 917 353 172 7 175 643 19 958 461 28 734 259 1 242 000 448 1 155 829 353 8 219 884 7 247 671 578 833 1 171 875 741

29. EMPLOYEE BENEFITS Employee benefits are the consideration given by the Group in exchange for services rendered by employees. In summary such benefits are:Short term benefits These are earned by employees under normal employment terms, including salaries and wages, bonuses and leave pay. These are expensed as earned and accordingly provisions are made for unpaid bonuses and leave pay. Post employment benefits i) The Group and employees contribute towards the National Social Security Authority, a defined contribution fund. Costs applicable to this scheme are determined by the systematic recognition of legislated contributions. ii) The Group operates a defined contribution scheme, the assets of which are held in a separate trustee administered fund. The costs are charged to the statement of comprehensive income as incurred. Unaudited Audited 30 June 2013 31 Dec 2012 US $ US $ NSSA contributions 237 656 353 960 Defined contribution scheme 1 257 615 1 428 872 30. CLOSING EXCHANGE RATES ZAR GBP EUR 31. CAPITAL ADEQUACY The capital adequacy is calculated in terms of the guidelines issued by the Reserve Bank of Zimbabwe. 30 June 2013 31 Dec 2012 30 June 2013 CBZ Building 31 Dec 2012 CBZ Building CBZ Bank Society CBZ Bank Society US$ US$ US$ US$ Risk weighted assets 880 107 611 132 735 967 780 353 072 125 027 823

- 24 896 421 - - 2 181 257 - 20 077 678

- - - - - - -

180 186 510 - 854 689 983 4 706 525 - 52 217 859 1 091 800 877

- - - - - - - 1 032 352 075 16 019 797 5 013 168 1 053 385 040

180 186 510 24 896 421 854 689 983 4 706 525 2 181 257 52 217 859 1 118 878 555 1 032 352 075 16 019 797 5 013 168 1 053 385 040

9.9372 8.4767 1.5261 1.6158 1.3064 1.3192

Financial liabilities Deposits - - - Other liabilities - - - Current tax payable - - - Total 25. FUNDS UNDER MANAGEMENT Pensions Private Unit trust Money market 26. CAPITAL MANAGEMENT

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 109 330 162 14 134 009 1 406 276 11 234 587 136 105 034 90 399 455 11 208 428 1 574 283 7 918 821 111 100 987

The primary objectives of the Group`s capital management are to ensure that the Group complies with external imposed capital requirements and the Group maintains strong credit ratings and healthy capital ratios in order to support its business and maximise shareholder value. The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend payment to shareholders, retain capital or issue capital securities. No changes were made in the objectives, policies and processes from the previous years. 27. CONTINGENCIES AND COMMITMENTS Contingent liabilities Guarantees Capital commitments Authorised and contracted for Authorised and uncontracted for The capital commitments will be funded from the Group`s own resources and borrowings. OPERATING SEGMENTS The Group is comprised of the following operating units: CBZ Bank Limited CBZ Asset Management CBZ Insurance (Private) Limited CBZ Properties (Private) Limited CBZ Life (Private) Limited Provides commercial banking and mortgage finance products through retail banking, corporate and merchant banking and investing portfolios through the treasury function. Provides fund management services to a wide spectrum of investors through place ment of either pooled portfolios or individual portfolios. Provides short term insurance. Property investment arm of the business. Provides long term life insurance. Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 18 125 339 18 125 339 649 140 - 649 140 23 220 366 23 220 366 282 102 282 102

Total qualifying capital 110 616 715 52 316 075 100 702 263 46 237 295 Tier 1 Share capital 5 118 180 7 500 000 5 118 180 7 500 000 Share premium 11 198 956 9 028 622 11 198 956 9 028 622 Revenue reserves 73 267 192 25 263 435 65 260 266 19 281 078 Less tier 1 deductions (19 087 708) (2 637 353) (21 268 004) (4 723 173) 70 496 620 39 154 704 60 309 398 31 086 527 Tier 2 Revaluation reserve 13 714 204 11 508 131 13 714 204 11 508 131 General provisions 8 803 244 1 653 240 9 754 413 1 339 440 22 517 448 13 161 371 23 468 617 12 847 571 Tier 3 Capital allocated for market risk 1 723 457 23 150 1 045 058 30 315 Capital allocated to operations risk 15 879 190 2 272 882 15 879 190 2 272 882 17 602 647 2 296 032 16 924 248 2 303 197 Capital adequacy 12.57% 39.42% 12.90% 36.98% -Tier 1 -Tier 2 -Tier 3 8.01% 2.56% 2.00% 27.77% 7.72% 24.86% 9.92% 3.01% 10.28% 1.73% 2.17% 1.84%

Regulatory capital consists of Tier 1 capital which comprises share capital, share premium and revenue reserves including current period profit. The other component of the regulatory capital is Tier 2 capital, which includes hidden reserves agreed to by Banking Supervision of the Reserve Bank of Zimbabwe, general provisions and revaluation reserves. RISK MANAGEMENT 32.1 Risk Overview CBZ Holdings Board has adopted a High Risk Management and Compliance Culture as one of its major strategic thrusts which is embedded under a clearly defined risk appetite in terms of the various key risk exposures. This approach has given direction to the Groups overall strategic planning and policies. The Group regularly carries out stress testing as well as simulations to ensure that there is congruency or proper alignment between its strategic focus and desired risk appetite. 32.2 Group Risk Management Framework The Groups risk management framework looks at enterprise wide risks and recognises that for effective risk management to take effect, it has to be structured in terms of acceptable appetite, defined responsibility, accountability and independent validation of set processes. Business Units, Management and staff are responsible for the management of the risks that fall within their organisational responsibilities. Group Risk Management whose function cuts across the Group is responsible for ensuring that the Business Units risk taking remain within the set risk benchmarks. The Group Internal Audit function provides independent assurance on the adequacy and effectiveness of risk management processes. Group Enterprise Wide Governance and Compliance Unit evaluate quality of compliance with policy, processes and governance structures. In terms of risk governance, the Group Board has delegated authority to the following Group Board Committees whose membership consists of exclusively of Non Executive directors of the Group: Risk Management & Compliance Committee has responsibility for oversight and review of prudential risks comprising of but not limited to credit, liquidity, interest rate, exchange, investment, operational, equities, reputational and compliance. Its other responsibilities includes reviewing the adequacy and effectiveness of the Groups risk management policies, systems and controls as well as the implications of proposed regulatory changes to the Group. It receives consolidated quarterly risk and compliance related reports from Group Executive Management Committee (Group EXCO) and Group Risk Management Sub Committee. The committee governance structures ensure that approval authority and risk management responsibilities are cascaded down from the Board through to the appropriate business units and functional committees. Its recommendations are submitted to the Group Board. IT and Business Development Committee oversees the harmonisation, adequacy, relevance and effectiveness of Group IT systems in delivering services to the Groups stakeholders. In addition, it looks at the integrity of the Groups management information systems. Audit & Finance Committee manages financial risk related to ensuring that the Group financial statements are prepared in line with the International Financial Reporting Standards. This committee is responsible for capital management policy as well as the adequacy of the Groups prudential capital requirements given the Groups risk appetite. The committee is also tasked with the responsibility of ensuring that efficient tax management systems are in place and that the Group is in full compliance with tax regulations. Human Resources and Remunerations Committee is accountable for people related risks and ensures that the Group has the optimal numbers, right mix in terms of skills and experience for the implementation of the Groups strategy. The committee also looks at welfare of Group staff as well as the positive application of the Group code of ethics. 32.3 Credit Risk This is the risk of potential loss arising from the probability of borrowers and or counterparties failing to meet their repayment commitments to the Group in accordance with agreed terms. Credit risk management framework Credit risk is managed through a framework of credit policies and standards covering the measurement and management of credit risk. These policies are approved by the Board which also delegates credit approvals as well as loans reviews to designated sub committees within the Group. Credit origination and approval roles are segregated. The Group uses an internal rating system based on our internal estimates of probability of default over a one year horizon and customers are assessed against a range of both quantitative and qualitative factors. Credit concentration risk is managed within set benchmarks by counterparty or a group of connected counterparties, by sector, maturity and by credit rating. Concentrations are monitored and reviewed through the responsible risk committees set up by the Board.
for the half year ended 30 June 2013

28.

The following tables present revenue and profit information regarding the Group`s operating segments for the half year ended 30 June 2013:28.1 Segment operational results Elimination of Commercial Mortgage Asset Property Other inter segment Banking finance management Insurance Investment operations amounts Consolidated US$ US$ US$ US$ US$ US$ US$ US$ Income Total income for the period ended 30 June 2013 54 720 333 10 158 953 1 086 166 4 298 403 7 922 241 403 (1 323 887) 69 189 293 Total income for the period ended 30 June 2012 53 187 221 8 678 890 606 876 2 442 136 509 7 989 989 (8 909 230) 64 016 391 Depreciation and amortisation for the period ended 30 June 2013 Depreciation and amortisation for the period ended 30 June 2012 1 980 834 1 711 517 738 413 738 340 73 665 5 207 89 468 74 685 - - 79 598 95 589 54 686 99 867 3 016 664 2 725 205

Results Profit before taxation for the period ended 30 June 2013 12 191 842 5 982 358 244 465 2 382 044 7 573 (587 803) 81 148 20 301 627 Profit before taxation for the period ended 30 June 2012 17 701 072 5 081 987 (185 440) 647 329 (12 573) 7 789 852 (8 032 343) 22 989 884 Cashflows: Used in operating activities for the period ended 30 June 2013 (7 158 318) (1 081 138) 351 602 145 953 (31 006) 1 113 957 201 967 (6 456 983) Used in operating activities for the period ended 30 June 2012 61 807 431 (1 736) 83 739 117 035 (83 416) 1 468 233 (8 160 178) 55 231 108 Used in investing activities for the period ended 30 June 2013 (23 254 820) (282 405) (19 881) (84 024) 37 800 (1 513 147) 739 961 (24 376 516) Used in investing activities for the period ended 30 June 2012 (3 281 637) (398 894) (84 671) (70 061) - (484 632) 451 564 (3 868 331) Used in financing activities for the period ended 30 June 2013 - - (330 000) - - (961 305) 360 803 (930 502) Used in financing activities for the period ended 30 June 2012 (8 000 000) - (45 000) - - (889 388) 8 214 147 (720 241) Impairment of assets for the period ended 30 June 2013 Impairment of assets for the period ended 30 June 2012 Reportable segment liabilities for the period ended 30 June 2013 Reportable segment liabilities for the period ended 31 Dec 2012 Total segment assets for the period ended 30 June 2013 Total segment assets for the period ended 31 Dec 2012 6 315 437 3 101 282 1 130 260 025 1 019 818 563 1 233 558 557 1 115 110 169 313 800 (24 895) 92 824 977 86 427 121 146 125 165 133 744 951 - - 231 055 1 066 570 2 114 348 2 203 548 - - 9 262 867 7 831 977 15 415 984 11 706 841 - - 1 468 837 1 480 416 9 954 546 9 957 383 - - 2 401 961 1 357 150 - - 6 629 237 3 076 387

(62 198 079) 1 174 251 643 (55 565 805) 1 062 415 992

56 055 175 (113 042 719) 1 350 181 056 56 342 296 (105 971 961) 1 223 093 227

Unaudited Financial Results

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (continued)

The Group through credit originating units as well as approving committees regularly monitors credit exposures, portfolio performance and external environmental factors that are likely to impact on the credit book. Through this process, clients or portfolios that exhibit material credit weaknesses are put on watch list for close monitoring or exiting of such relationships where restructuring is not possible. Credit mitigation Credit mitigation is employed in the Group through taking collateral, credit insurance and other guarantees. The Group is guided by considerations related to legal certainty, enforceability, market valuation and the risk related to the guarantor in deciding which securities to accept from clients. Types of collateral that is eligible for risk mitigation include cash, mortgages over residential, commercial and industrial property, plant and machinery, marketable securities and commodities. Non performing loans & advances The Groups credit policy also covers past due, default and non performing loans and advances, as well as specific and portfolio impairments. Past due refers to a loan or advance that exceeds its limit for fluctuating types of advances or is in arrears by 30 days or more. Default is where for example a specific impairment is raised against a credit exposure as a result of a decline in the credit quality or where an obligation is past due for more than 90 days or an obligor has exceeded a sanctioned limit for more than 90 days. Impaired loans and advances are defined as loans and advances where the Group has raised a specific provision / impairment. A specific impairment is raised where an asset is classified as substandard, Doubtful or Loss under the prudential lending guidelines issued by the Regulatory authorities and where collateral held against the advance is insufficient to cover the total expected losses. Portfolio impairment on the other hand applies under loans and advances that have not yet individually evidenced a loss event i.e. advances classified as Pass and Special Mention under prudential lending guidelines issued by the Regulatory authorities. For such portfolios, the Group calculates General provisions. 32.2. (a) Credit risk exposure The table below shows the maximum exposure to credit for the components of the statement of financial position. Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ Balances with Banks Money market assets Advances Other assets Total Contingent liabilities Commitments Total 124 864 332 120 356 404 917 353 172 16 927 707 1 179 501 615 18 125 339 649 140 18 774 479 141 407 626 57 004 893 854 689 983 52 217 859 1 105 320 361 23 220 366 282 102 23 502 468

32.2 (e) Credit Quality per Class of Financial Assets The credit quality of financial assets is managed by the Group using internal credit ratings. The table below shows the credit quality by class of asset for loan-related statement of financial position lines based on the Groups credit rating system.

June 2013 *Doubtful and *Normal *Special mention *Sub- standard loss grade grade grade grade Total US$ US$ US$ US$ US$ Loans and advances to customers Agriculture Manufacturing Commercial Individual and households Mining Distribution Construction Transport Communication Financial services

236 395 013 108 617 188 99 140 594 89 692 314 9 498 536 237 784 001 3 771 972 28 025 370 11 985 434 16 773 104 841 683 526

34 040 478 19 857 582 1 847 392 6 156 272 2 625 236 10 577 614 240 729 183 719 - - 75 529 022

2 451 612 10 684 444 1 639 807 7 104 922 6 865 5 222 828 131 903 2 244 596 - - 29 486 977

688 382 5 923 135 - 118 343 1 516 244 2 981 159 - - - - 11 227 263

273 575 485 145 082 349 102 627 793 103 071 851 13 646 881 256 565 602 4 144 604 30 453 685 11 985 434 16 773 104 957 926 788

The Group has issued financial guarantee contracts in respect of debtors for which the maximum amount payable by the Group, assuming all guarantees are called on is $18 125 339. DECEMBER 2012 *Doubtful and *Normal *Special mention *Sub- standard loss grade grade grade grade Total US$ US$ US$ US$ US$ Loans and Advances to Customers Agriculture Manufacturing Commercial Individual and Households Mining Distribution Construction Transport Communication Financial services 205 106 497 136 882 592 105 367 132 90 848 606 7 928 034 186 123 375 4 492 674 20 651 966 6 636 850 1 076 745 765 114 471 45 540 772 5 876 761 3 949 359 2 692 997 3 709 321 21 322 683 201 76 929 - - 83 169 023 8 094 884 6 785 432 2 578 387 835 572 1 925 097 8 733 282 114 479 855 619 - - 29 922 752 7 725 034 266 467 187 3 976 502 153 521 287 59 250 111 954 128 5 526 94 382 701 - 13 562 452 172 631 216 351 971 - 4 607 354 - 21 584 514 - 6 636 850 - 1 076 745 11 938 943 890 145 189

Where financial instruments are recorded at fair value the amounts shown above represent the current credit risk exposure but not maximum risk exposure that could arise in the future as a result of changes in value. The Group held cash equivalents of US$124 864 332 (excluding notes and coins) as at 30 June 2013 which represents its maximum credit exposure on these assets. The cash and cash equivalents are held with the Central Bank and local and foreign banks. 32.2 (b) -Aging analysis of past due but not impaired loans (Special Mention Loans): 1 to 3 months Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 75 529 022 83 169 024

Allowances for impairment The Group establishes an allowance for impairment on assets carried at amortised cost or classified as available-for-sale that represents its estimate of incurred losses in its loan and investment debt security portfolio. The main components of this allowance are a specific loss component that relates to specific exposures, and a collective loan loss allowance established for groups of homogeneous assets in respect of losses that have been incurred but have not been identified on loans that are considered individually insignificant as well as individually significant exposures that were subject to individual assessment for impairment but not found to be individually impaired. Write-offs The Group writes off a loan or an investment debt security balance, and any related allowances for impairment, when the relevant committees determine that the loan or security is uncollectible. This determination is made after considering information such as the occurrence of significant changes in the borrowers / issuers financial position such that the borrower / issuer can no longer pay the obligation, or that proceeds from collateral will not be sufficient to pay back the entire exposure. For balance standardised loans, write-off decisions generally are based on a product-specific past due status. Concentration of credit risk The directors believe that the concentration risk is limited due to the customer base being large and unrelated. The Group is not exposed to any customer by more than 10% of the total advance book. 32.2.2 Credit quality definitions Normal grade If the asset in question is fully protected by the current sound worth and paying capacity of the obligor, is performing in accordance with contractual terms and is expected to continue to do so. Special mention grade (i) if the asset in question is past due for more than 30 days but less than 90 days; or (ii) although currently protected, exhibits potential weaknesses which may, if not corrected, weaken the asset or inadequately protect the institutions position at some future date, for example, where: the asset in question cannot be properly supervised due to an inadequate loan agreement; or the condition or control of the collateral for the asset in question is deteriorating; or the repayment capacity of the obligor is jeopardised because of deteriorating economic conditions or adverse trends in the obligors financial position; or there is an unreasonably long absence of current and satisfactory financial information or inadequate collateral documentation in regard to the asset: Provided that, generally, a loan or advance shall require special mention only if its risk potential is greater than that under which it was originally granted. Substandard grade (i) if the asset in question is past due for more than 90 days but less than 180 days; or (ii) is a renegotiated loan, unless all past due interest is paid by the borrower in cash at the time of renegotiation and a sustained record of timely repayment of principal and interest under a realistic repayment programme has been demonstrated for a period of not less than 180 days; or (iii) whether or not it is past due, is inadequately protected by the current sound worth and paying capacity of the obligor by reason of the fact that: the primary source of repayment is insufficient to service the debt and the institution must look to secondary sources such as collateral, sale of fixed assets, refinancing or additional capital injections for repayment; or there is an unduly long absence of current and satisfactory financial information or inadequate collateral documentation in regard to the asset; or generally, there is more than a normal degree of risk attaching to the asset due to the borrowers unsatisfactory financial condition. Doubtful: (i) if the asset in question is past due for more than 180 days but less than 360 days; or (ii) exhibits all the weaknesses of a substandard asset and, in addition, is not well-secured by reason of the fact that collection in full, on the basis of currently existing facts, is highly improbable, but the actual amount of the loss is indeterminable due to pending events that have a more than reasonable prospect of mitigating the loss, such as a proposed merger, acquisition or liquidation, a capital injection, perfecting liens on additional collateral, refinancing plans, new projects or asset disposal. Loss: (i) if the asset in question is past due for more than 360 days, unless such asset is well secured and legal action has actually commenced which is expected to result in the timely realisation of the collateral or enforcement of any guarantee relating to the asset; or 32.2.2 Credit quality definitions (i) (ii) had been characterised as doubtful on account of any pending event , and the event concerned did not occur within 360 days, whether or not the event is still pending thereafter; or is otherwise considered uncollectible or of such little value that its continuance as an asset is not warranted.

Past due but not impaired loans relate to loans in the special mention category. See definition of special mention category on note number 32.2.2 32.2 (c) Aging analysis of impaired loans (Non performing loans): 3 to 6 months 6 to 12 months Total Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 23 164 175 17 550 064 40 714 239 29 922 752 11 938 943 41 861 695

32.2 (d) An industry sector analysis of the Groups financial assets before and after taking into account collateral held is as follows: Unaudited Unaudited Audited Audited 30 June 2013 30 June 2013 31 Dec 2012 31 Dec 2012 US$ US$ US$ US$ Gross maximum Net maximum Gross maximum Net maximum exposure exposure (not exposure exposure (not covered by covered by mortgage security) mortgage security) Private Agriculture Mining Manufacturing Distribution Construction Transport Communication Services Financial Organisations Gross value 103 230 689 273 818 812 13 646 880 121 082 350 226 638 607 4 144 602 30 453 685 11 985 434 156 152 625 16 773 104 957 926 788 17 314 888 71 314 769 3 289 011 34 571 390 71 854 728 2 276 408 13 092 128 3 848 126 40 346 242 - 257 907 690 94 382 701 266 467 187 13 562 452 153 521 287 216 351 971 4 607 354 21 584 514 6 636 850 111 954 128 1 076 745 890 145 189 12 250 926 48 681 925 1 801 697 29 115 753 49 299 014 2 280 646 13 303 576 20 357 059 266 745 177 357 341

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 726 740 897 26 543 980 397 534 723 1 150 819 600

Collateral (mortgage security) 700 061 388 Cash cover 24 728 707 Other forms of security including Notarial General Covering Bonds (NGCBs),cessions, etc 506 365 719 1 231 155 814

The Group holds collateral against loans and advances to customers in the form of mortgage interests over property, other registered securities over assets, guarantees, cash cover, and assignment of crop or export proceeds, leasebacks and stop-orders. Estimates of fair value are based on the value of collateral assessed at the time of borrowing, and are regularly updated with trends in the market. An estimate of the fair value of collateral and other security enhancements held against loans and advances to customers and banks is shown above and analysed as follows: Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ Against doubtful* and loss* grades Property 3 369 417 3 583 000 Other 11 787 388 12 534 574 Against substandard* grade Property 4 921 864 4 982 480 Other 34 885 554 35 315 191 Against special mention* grade Property 11 437 899 70 576 852 Other 85 069 692 40 963 046 Against normal* grade Property 680 332 208 647 598 565 Other 399 351 792 335 265 892 1 231 155 814 1 150 819 600 *See definition on note 32.2.2

Unaudited Financial Results

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (continued)

32.3

Market Risk

32.4.2 (a)

Market Related Risk (continued) INTEREST RATE REPRICING

This is the risk of loss under both the banking book and or trading book arising from unfavourable changes in market prices such as interest rates, foreign exchanges rates, equity prices, credit spreads and commodity prices, which can cause substantial variations in earnings and or economic value of the Group and its SBUs if not properly managed. The Groups exposure to market risk arises mainly from customer driven transactions. 32.3.1 Group market risks management framework To manage these risks, there is oversight at Group Board level through the Group Board Risk Management Committee which covers Asset and Liability Management processes through periodic review of the Groups Asset and Liability as well as investment policies and benchmarks meant to assist in attaining the Groups liquidity strategic plan. The Groups subsidiary (SBU) Boards are responsible for setting specific market risks strategies for their respective SBU and Executive Management implements policy and track performance regularly against set benchmarks through use of daily liquidity position reports, investment portfolio mix, cash flow analysis, liquidity matrix analysis, liquidity gap analysis and liquidity simulations to evaluate ability of the SBU to withstand stressed liquidity situations. Liquidity risk Liquidity relates to the Groups ability to fund its growth in assets and to meet obligations as they fall due without incurring unacceptable losses. The Group recognises two types of liquidity risks i.e. Market liquidity risk and Funding liquidity risk. Market liquidity risk is the risk that the Group cannot cover or settle a position without significantly affecting the market price because of limited market depth. Funding risk on the other hand is the risk that the Group will not be able to efficiently meet both its expected as well as the unexpected current and future cash flow needs without affecting the financial condition of the Group. The Groups liquidity risk management framework ensures that limits are set under respective Group SBUs relating to levels of wholesale funding, retail funding, loans to deposit ratio, counter- party exposures as well as prudential liquidity ratio. The primary source of funding under the Group and its SBUs are customer deposits made up of current, savings and term deposits and these are diversified by customer type and maturity. The Group tries to ensure through the ALCO processes and balance sheet management that asset growth and maturity are funded by appropriate growth in deposits and stable funding respectively.

32.4

30 June 2013 Non 1 to 3 3 months 1 to 5 Above interest Demand months to 1 year years 5 years bearing Total US$ US$ US$ US$ US$ US$ US$ Assets Balance with banks and cash 43 677 002 104 745 507 - - - - 148 422 509 Money market assets 42 160 019 69 728 141 1 508 254 6 959 990 - - 120 356 404 Advances 544 824 864 4 114 922 65 428 183 199 652 406 103 332 797 - 917 353 172 Insurance assets - - 3 913 684 - - 3 261 959 7 175 643 Other assets 1 275 121 13 313 556 1 593 425 - - 12 552 157 28 734 259 Investment in other financial assets - - 317 988 7 566 111 - 12 074 362 19 958 461 Investment properties - - - - - 20 302 084 20 302 084 Property and equipment - - - - - 78 347 416 78 347 416 Intangible assets - - - - - 1 678 024 1 678 024 Deferred taxation - - - - - 7 853 084 7 853 084 Total Assets 631 937 006 191 902 126 72 761 534 214 178 507 103 332 797 136 069 086 1 350 181 056 Liabilities and equity Deposits Insurance liabilities Other liabilities Deferred taxation Current tax payable Equity and reserves Total equity and liabilities Interest rate repricing gap Cumulative gap 522 539 179 341 170 586 186 287 356 88 056 980 17 775 252 - 1 155 829 353 - - - - - 8 219 884 8 219 884 - - - - - 7 247 671 7 247 671 - - - - - 2 375 902 2 375 902 - - - - - 578 833 578 833 - - - - - 175 929 413 175 929 413 522 539 179 341 170 586 186 287 356 88 056 980 17 775 252 194 351 703 1 350 181 056 109 397 827 (149 268 460) (113 525 822) 126 121 527 85 557 545 (58 282 617) 109 397 827 (39 870 633) (153 396 455) (27 274 928) 58 282 617 - -

32.4.1 GAP ANALYSIS LIQUIDITY PROFILE AS AT 30 JUNE 2013 1 to 3 3 months 1 to 5 Above Demand months to 1 year years 5 years Total US$ US$ US$ US$ US$ US$ Assets Advances 544 824 866 4 114 920 65 428 183 199 652 406 103 332 797 917 353 172 Balances with banks and cash 43 677 001 104 745 508 - - - 148 422 509 Investment in other financial assets - 550 099 317 988 7 566 111 2 339 960 10 774 158 Money market assets 41 560 230 70 327 930 8 468 244 - - 120 356 404 Insurance assets - 750 144 3 913 683 - - 4 663 827 Other liquid assets 1 275 121 14 059 162 1 593 425 - - 16 927 708 Total 631 337 218 194 547 763 79 721 523 207 218 517 105 672 757 1 218 497 778 Liabilities Deposits Current tax payable Insurance liabilities Other liabilities Financial guarantees Total Liquidity gap Cumulative liquidity gap 522 539 179 (1 794) - - - 522 537 385 341 170 586 580 627 2 636 377 4 773 656 - 349 161 246 186 287 356 - - 2 315 179 18 125 339 206 727 874 88 056 980 - - 158 837 - 88 215 817 119 002 700 (53 817 301) 17 775 252 - - - - 17 775 251 87 897 506 34 080 205 1 155 829 353 578 833 2 636 377 7 247 672 18 125 339 1 184 417 573 34 080 205 34 080 205

December 2012 Non 1 to 3 3 months 1 to 5 Above interest Demand months to 1 year years 5 years bearing Total US$ US$ US$ US$ US$ US$ US$ Assets Balance with banks and cash 96 839 402 83 347 108 - - - - 180 186 510 Money market assets 9 773 025 14 213 170 803 414 106 812 - - 24 896 421 Advances 488 726 450 22 299 913 74 406 430 169 986 402 99 270 788 - 854 689 983 Insurance assets - - - - - 4 706 525 4 706 525 Other assets 235 516 7 405 492 - - - 44 576 851 52 217 859 Investment in other financial assets - - - - - 2 181 257 2 181 257 Investment properties - - - - - 20 335 977 20 335 977 Property and equipment - - - - - 74 248 554 74 248 554 Intangible assets - - - - - 2 090 819 2 090 819 Deferred taxation - - - - - 7 539 322 7 539 322 Total assets 595 574 393 127 265 683 75 209 844 170 093 214 99 270 788 155 679 305 1 223 093 227 Liabilities and equity Deposits Insurance liabilities Other liabilities Current tax payable Deferred taxation Equity and reserves Total equity and liabilities Interest rate repricing gap Cumulative gap 32.5. EXCHANGE RATE RISK This risk arises from the changes in exchange rates and originates from mismatches between the values of assets and liabilities denominated in different currencies and can lead to losses if there is an adverse movement in exchange rate where open positions either spot or forward, are taken for both on and off statement of financial position transactions. There is oversight at Board level through the Board Risk Management Committee which covers ALCO processes by way of strategic policy and benchmarking reviews and approval. Management ALCO which is held on a monthly basis reviews performance against set benchmarks embedded under acceptable currencies, currency positions as well as stop loss limits. Derivative contracts with characteristics and values derived from underlying financial instruments, exchange rates which relates to futures, forwards, swaps and options can be used to mitigate exchange risk. The Group had no exposure to derivative transactions under the reporting period. At 30 June 2013, if foreign exchange rates at that date had weakened or strengthened by 5 percentage points with all other variables held constant, post tax profit for the period would have been US$824 544 higher or lower respectively than the reported position. This arises as a result of the increase or decrease in the fair value of the underlying assets and liabilities denominated in foreign currencies. The foreign currency position for the Group as at 30 June 2013 is as below: Foreign currency position as at 30 June 2013 Position expressed in US$ Other foreign Total USD ZAR GBP currencies Assets Balances with banks and cash 148 422 509 135 683 427 7 579 466 2 542 675 2 616 941 Money market assets 120 356 404 120 356 404 - - Advances 917 353 172 916 921 698 28 511 9 225 393 738 Insurance assets 7 175 643 7 175 643 - - Other assets 28 734 259 28 454 447 161 824 34 260 83 728 Investment-other financial assets 19 958 461 19 814 818 - - 143 643 Investment properties 20 302 084 20 302 084 - - Property and equipment 78 347 416 78 067 780 129 234 - 150 402 Deferred taxation 7 853 084 7 853 084 - - Intangible assets 1 678 024 1 678 024 - - Total assets 1 350 181 056 1 336 307 409 7 899 035 2 586 160 3 388 452 Liabilities and equity Deposits Insurance liabilities Other liabilities Current tax payable Deferred taxation Equity and reserves Total equity and liabilities 1 155 829 353 8 219 884 7 247 671 578 833 2 375 902 175 929 413 1 350 181 056 1 125 748 829 8 219 884 7 243 483 578 833 2 375 902 175 929 413 1 320 096 344 28 833 904 - 2 609 - - - 28 836 513 435 959 - 1 408 - - - 437 367 810 661 171 810 832 643 962 477 159 132 448 85 851 088 125 737 783 17 668 279 - 1 032 352 075 - - - - - 6 647 107 6 647 107 - - - - - 16 019 797 16 019 797 - - - - - 5 013 168 5 013 168 - - - - - 2 383 845 2 383 845 - - - - - 160 677 235 160 677 235 643 962 477 159 132 448 85 851 088 125 737 783 17 668 279 190 741 152 1 223 093 227 (48 388 084) (31 866 765) (10 641 244) 44 355 431 81 602 509 (35 061 847) (48 388 084) (80 254 849) (90 896 093) (46 540 662) 35 061 847 - -

108 799 833 (154 613 483) (127 006 351) 108 799 833 (45 813 650) (172 820 001)

LIQUIDITY PROFILE AS AT 31 DECEMBER 2012 1 to 3 3 months 1 to 5 Above Demand months to 1 year years 5 years Total US$ US$ US$ US$ US$ US$ Assets Advances 488 726 450 22 299 913 74 406 430 169 986 402 99 270 788 854 689 983 Balances with banks and cash 96 839 402 83 347 108 - - - 180 186 510 Investment in other financial assets 1 723 718 - 256 769 - 200 770 2 181 257 Money market assets 9 773 025 14 213 170 803 414 106 812 - 24 896 421 Financial guarantees - - - 196 279 - 196 279 Other liquid assets 235 516 11 926 230 3 484 538 - - 15 646 284 Total 597 298 111 131 786 421 78 951 151 170 289 493 99 471 558 1 077 796 734 Liabilities Deposits Current tax payable Other liabilities Financial guarantees Total Liquidity gap Cumulative liquidity gap 643 962 477 (724) - - 643 961 753 159 132 448 5 029 692 4 647 128 - 168 809 268 85 851 088 - 11 042 669 - 96 893 757 (17 942 606) 125 737 783 - 330 000 23 220 366 149 288 149 21 001 344 (80 627 751) 17 668 279 (15 800) - - 17 652 479 81 819 079 1 191 328 1 032 352 075 5 013 168 16 019 797 23 220 366 1 076 605 406 1 191 328 1 191 328

(46 663 642) (37 022 847)

(46 663 642) (83 686 489) (101 629 095)

The table above shows the undiscounted cash flows of the Groups non-derivative on and off statement of financial position financial assets and liabilities on the basis of their earliest possible contractual maturity and the related period gaps. For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called. The Groups SBUs carry out static statement of financial position analysis to track statement of financial position growth drivers, the pattern of core banking deposits, statement of financial position structure, levels and direction of the SBUs maturity mismatch and related funding or liquidity gap. The Asset and Liability Management Committee (ALCO) of the respective SBU comes up with strategies through its monthly meetings to manage these liquidity gaps. Details of the liquidity ratio for the relevant Group SBUs as at the reporting date and during the reporting period were as follows: At 31 December 2012 At 30 June 2013 Average for the period Maximum for the period Minimum for the period 32.4.2 Interest rate risk This is the possibility of a Banking Groups interest income being negatively influenced by unforeseen changes in the interest rate levels arising from weaknesses related to a banking Groups trading, funding and investment strategies. This is managed at both Board and Management level through the regular policy and benchmarks which related also to interest rate risk management. The major areas of intervention involves daily monitoring of costs of funds, monthly analysis of interest re - pricing gaps, monthly interest rate simulations to establish the Group and its SBUs ability to sustain a stressed interest rate environment. The use of stress testing is an integral part of the interest rate risk management framework and considers both the historical market events as well as anticipated future scenarios. The Group and its SBUs denominates its credit facilities in the base currency i.e. the USD in order to minimize cross currency interest rate risk. The Groups interest rate risk profiling is displayed below: CBZ Bank CBZ Building Limited Society % % 33 14 37 11 39 11 44 12 35 11

Foreign currency position as at 31 December 2012 Position expressed in US$ Other foreign Total USD ZAR GBP currencies Assets Balances with banks and cash 180 186 510 158 103 460 16 858 548 2 597 105 2 627 397 Money market assets 24 896 421 11 731 755 6 339 123 2 161 870 4 663 673 Advances 854 689 983 853 806 685 1 241 611 257 029 (615 342) Insurance assets 4 706 525 4 706 525 - - Other assets 52 217 859 50 825 225 1 291 389 53 945 47 300 Investment in other financial assets 2 181 257 2 037 614 - - 143 643 Investment properties 20 335 977 20 335 977 - - Property and equipment 74 248 554 74 159 315 13 130 - 76 109 Deferred taxation 7 539 322 7 539 322 - - Intangible assets 2 090 819 2 090 819 - - Total assets 1 223 093 227 1 185 336 697 25 743 801 5 069 949 6 942 780 Liabilities and equity Deposits 1 032 352 075 994 388 628 29 870 209 6 082 124 Insurance liabilities 6 647 107 6 647 107 - - Other liabilities 16 019 797 2 767 325 6 339 299 2 241 959 Current tax payable 5 013 168 5 013 168 - - Deferred taxation 2 383 845 2 383 845 - - Equity and reserves 160 677 235 160 677 235 - - Total equity and liabilities 1 223 093 227 1 171 877 308 36 209 508 8 324 083
for the half year ended 30 June 2013

2 011 114 4 671 214 6 682 328

Unaudited Financial Results

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (continued)

32.5

EXCHANGE RATE RISK (continued)

CBZ Group
Risk Matrix Summary
Type of risk Level of Inherent Risk Moderate Moderate Moderate Low Moderate Moderate Low Moderate Moderate Adequacy of Risk Management Systems Acceptable Acceptable Acceptable Acceptable Acceptable Acceptable Acceptable Acceptable Acceptable Overall Composite Risk Moderate Moderate Moderate Low Moderate Moderate Low Moderate Moderate Direction of Overall Composite Risk Stable Stable Stable Stable Stable Stable Stable Stable Stable

Key

Foreign currency position as at 30 June 2013 Underlying currency Other foreign currencies ZAR GBP US$ Assets Cash and short term assets 75 318 669 1 666 126 2 616 941 Advances 283 316 6 045 393 738 Other assets 1 608 080 22 450 83 728 Investments - - 143 643 Total assets 77 210 065 1 694 621 3 238 050 Liabilities Deposits Other liabilities Total liabilities Net position Foreign currency position as at 31 December 2012 286 528 267 25 926 286 554 193 (209 344 128) 285 669 923 286 592 1 408 029 810 661 171 810 832 2 427 218

Level of inherent risk Low- reflects a lower than average probability of an adverse impact on a banking institutions capital and earnings. Losses in a functional area with low inherent risk would have little negative impact on the banking institutions overall financial condition. Moderate- could reasonably be expected to result in a loss which could be absorbed by a banking institution in the normal course of business. High reflects a higher than average probability of potential loss. High inherent risk could reasonably be expected to result in a significant and harmful loss to the banking institution. Adequacy of Risk Management Systems Weak risk management systems are inadequate or inappropriate given the size, complexity and risk profile of the banking institution. Institutions risk management systems are lacking in important ways and therefore a cause of more than normal supervisory attention. The internal control systems will be lacking in important aspects particularly as indicated by continued control exceptions or by the failure to adhere to written down policies and procedures. Acceptable- management of risk is largely effective but lacking to some modest degree. While the institution might be having some minor risk management weaknesses, these have been recognized and are being addressed. Management information systems are generally adequate. Strong- management effectively identifies and controls all types of risk posed by the relevant functional areas or per inherent risk. The board and senior management are active participants in managing risk and ensure appropriate policies and limits are put in place. The policies comprehensively define the financial institutions risk tolerance, responsibilities are effectively communicated. Overall Composite Risk Low Risk- would be assigned to low inherent risk areas. Moderate risk areas may be assigned a low composite risk where internal controls and risk management systems are strong and effectively mitigate much of the risk. Moderate Risk- risk management effectively identifies and controls all types of risk posed by the relevant functional area, significant weaknesses in the risk management systems may result in a moderate composite risk assessment. On the other hand, a strong risk management system may reduce the risk so that any potential financial loss from the activity would have only a moderate negative impact on the financial condition of the organisation. High Risk- risk management systems do not significantly mitigate the high inherent risk. Thus the activity could potentially result in a financial loss that would have a significant impact on the financial institutions overall condition, even in some cases where the systems are considered strong. Direction of Overall Composite Increasing- based on the current information, composite risk is expected to increase in the next twelve months. Decreasing- based on current information, composite risk is expected to decrease in the next twelve months. Stable- based on the current information, composite risk is expected to be stable in the next twelve months.

Credit Risk Liquidity Risk Interest Rate Risk Foreign Exchange Risk Strategic Risk Operational Risk Legal & Compliance Risk Reputation Risk Overall

CBZ Bank Limited

Risk Matrix Summary
Type of risk Level of Inherent Risk Moderate Moderate Moderate Low Moderate Moderate Low Moderate Moderate Adequacy of Risk Management Systems Acceptable Acceptable Acceptable Acceptable Acceptable Acceptable Acceptable Acceptable Acceptable Overall Composite Risk Moderate Moderate Moderate Low Moderate Moderate Low Moderate Moderate Direction of Overall Composite Risk Stable Stable Stable Stable Stable Stable Stable Stable Stable

Underlying currency Other foreign Credit Risk currencies Liquidity Risk ZAR GBP US$ Interest Rate Risk Assets Foreign Exchange Risk Cash and short term assets 142 904 856 1 607 318 2 627 397 Strategic Risk Advances 10 524 763 159 073 (615 342) Operational Risk Money market assets 51 812 191 - 4 663 674 Legal & Compliance Risk Other assets 10 946 709 33 386 47 300 Reputation Risk Investments - - 143 643 Overall Total Assets 216 188 519 1 799 777 6 866 672 Liabilities Deposits Other liabilities Total liabilities Net position 32.6 Operational risk This is the potential for loss arising from human error and fraud, inadequate or failed internal processes, systems, non-adherence to procedure or other external sources that result in the compromising of the Group and its SBUs revenue or erosion of the Group and its SBUs statement of financial position value. 32.6.1 Operational risk management framework Group Risk Management Committee exercises adequate oversight over operational risks across the Group with the support of SBU Boards as well as business and functional level committees. Group Risk Management is responsible for setting and approval of Group Operational Policies and maintaining standards for operational risk. The Group Board Audit Committee through Internal Audit function as well as Group Enterprise Wide Governance and Compliance perform their independent review and assurances under processes and procedures as set under Business Units policies and procedure manuals. On the other hand Group Risk Management and Group IT Department with assistance from Organization and Methods Department within Group Human Resources ensures processes, procedures and control systems are in line with variables in the operating environment. 32.7 Strategic risk This is the risk that arises where the Groups strategy may be inappropriate to support its long term corporate goals due to underlying inadequate strategic planning process, weak decision making process as well as weak strategic implementation programs. To mitigate this risk, the Groups Board, SBU Boards and Management teams craft the strategy which is underpinned to the Groups corporate goals. Approval of the strategy is the responsibility of the appropriate Board whilst implementation is carried out by Management. On the other hand strategy and goal congruency is reviewed monthly by management and quarterly by the appropriate Board. 32.8 Regulatory risk Regulatory risk is defined as the failure to comply with applicable laws and regulations or supervisory requirements, or the exclusion of provisions of relevant regulatory requirements out of operational procedures. This risk is managed and mitigated through the Group Board Risk Management Committee and the Group Enterprise Wide Governance and Compliance unit which ensures that: Comprehensive and consistent compliance policies and procedures exist covering the Group and its SBUs; A proactive and complete summary statement of the Group and its SBUs position on ethics and compliance; A reporting structure of the Group Enterprise Wide Compliance Function exits that ensures independence and effectiveness; and that; Periodic compliance and awareness training targeting employees in compliance sensitive areas is carried out. 253 200 801 53 736 339 306 937 140 (90 748 621) 3 764 156 1 387 523 5 151 679 (3 351 902) 2 011 115 4 671 213 6 682 328 184 344

CBZ Asset Management

Risk Matrix Summary
Type of risk Strategic Risk Operational Risk Legal & Compliance Risk Reputation Risk Financial Risk Overall Level of Inherent Risk Moderate Moderate Moderate Moderate Moderate Moderate Adequacy of Risk Management Systems Acceptable Acceptable Acceptable Low Acceptable Acceptable Overall Composite Risk Moderate Moderate Moderate Low Moderate Moderate Direction of Overall Composite Risk Stable Stable Stable Stable Stable Stable

32.12 Risk and Credit Ratings 32.12.1 External Credit Rating CBZ Bank Limited Rating agent Global Credit Rating (Short Term) Global Credit Rating (Long Term) 32.2.12.2 Reserve Bank Ratings CAMELS RATING MATRIX CBZ Bank CBZ Holdings Group Key 1. Strong 2. Satisfactory 3 Fair 4. Substandard 5. Weak OUR APPROACH TO CORPORATE GOVERNANCE CBZ Holdings Limited (CBZH) recognises the need to conduct the affairs of the company with integrity and in line with best corporate governance practices. To demonstrate this commitment to sound corporate governance the company applies the best practice in corporate governance in managing the affairs of the Group. The governance of the company is guided by internal policies and external laws, rules, regulations and best practice guidelines including the King Reports and the Reserve Bank of Zimbabwe Corporate Governance Guidelines. The Group is cognisant of its duty to conduct business with due care and in good faith in order to safeguard all stakeholders interests and adheres to the corporate governance structure detailed below: Corporate governance structure as at 30 June 2013
BOARD OF DIRECTORS NON-EXECUTIVE DIRECTORS Mr. Zembe* Mr. Wilde Mrs. Pasi Mr. Lowe Mr. Mugamu Mr. Bere Mr. Mutambara Mr. Nanabawa Mr. Ben Ghali Mr. Dernawi Mrs. Nhamo Mr. Taputaira *CHAIRMAN EXECUTIVE DIRECTORS Dr. Mangudya Mr. Nyemudzo

2012 -

2011 A+

2009 A

2008 A

2007 A

2006 A

2005 A

Composite 1 2

Capital Adequacy 1 2

Asset Quality 2 2

Management 1 -

Earnings 1 2

Liquidity 2 2

Sensitivity to market risk 2 2

32.9 Reputation risk This is the risk of potential damage to the Groups image that arise from the market perception of the manner in which the Group and its SBUs packages and delivers its products and services as well as how staff and management conduct themselves. It also relates to the Groups general business ethics. This can result in loss of earnings or adverse impact on market capitalization as a result of stakeholders adopting a negative view to the Group and its actions. The risk can further arise from the Groups inability to address any of its other key risks. This risk is managed and mitigated through: Continuous improvements of the Groups operating facilities to ensure that they remain within the taste of the Groups various stakeholders, Ensuring that staff subscribe to the Groups code of conduct, code of ethics and general business ethics and that, Stakeholders feedback systems that ensures a proactive attention to the Banks reputation management. 32.10 Money-laundering risk This is the risk of financial or reputational loss suffered as a result of transactions in which criminal financiers disguise the origin of funds they deposit in the subsidiaries of the Group and then use the funds to support illegal activities. The Group manages this risk through: Adherence to Know Your Customer Procedures; Effective use of compliance enabling technology to enhance antimoney laundering program management, communication, monitoring and reporting; Development of early warning systems; and Integration of compliance into individual performance measurement and reward structures. 32.11 Insurance risk The principal risk the insurance company faces under insurance contracts is that the actual claims and benefit payments or the timing thereof, differ from expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and subsequent development of long-term claims. Therefore the objective of the insurance subsidiary is to ensure that sufficient reserves are available to cover these liabilities. The above risk exposure is mitigated by diversification across a large portfolio of insurance contracts and geographical areas. The variability of risks is also improved by careful selection and implementation of underwriting strategy guidelines, as well as the use of reinsurance arrangements. The subsidiary also purchases reinsurance as part of its risk mitigation programme. Reinsurance ceded is placed on both a proportional and non-proportional basis. The majority of proportional reinsurance is quota-share reinsurance which is taken out to reduce the overall exposure of the company to certain classes of business. Non-proportional reinsurance is primarily excess-of-loss reinsurance designed to mitigate the companys net exposure to catastrophe losses. Retention limits for the excess-of-loss reinsurance vary by product line and territory. The insurance companys placement of reinsurance is diversified such that it is neither dependent on a single reinsurer nor are the operations of the company substantially dependent upon any single reinsurance contract.

BOARD COMMITTEES
AUDIT & FINANCE Mr. Mugamu** Mr. Nanabawa Mr. Bere Mr. Lowe Mrs. Nhamo Mrs. Pasi Dr Mangudya Mr Nyemudzo
**COMMITTEE CHAIRPERSON

RISK MANAGEMENT & COMPLIANCE Mrs. Pasi** Mr. Ben G hali Mr. Bere Mr. Lowe Mr. Dernawi Mrs. Pasi Dr Mangudya

HUMAN RESOURCES & REMUNERATION Mrs. Nhamo** Mr. Zembe Mr. Wilde Mr. Bere Mr. Mutambara Dr Mangudya

IT & BUSINESS DEVELOPMENT Mr. Taputaira** Mr. Zembe Mr. Ben Ghali Mr. Dernawi Mr. Bere Mr. Mutambara Dr Mangudya

Unaudited Financial Results

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (continued)

THE MAKING OF AN EFFECTIVE BOARD Appointment of directors The board is authorised by the companys Articles of Association to appoint new directors based on recommendations by the Human Resources and Remuneration Committee. Eligibility for appointment as a director is guided by the Directors Fit and Proper person test, requirements of the Companies Act and best practice. The Boards role is to foster effective decision making processes and policies. The appointed Directors have expertise sufficient to allow the Board to add value to the Groups policies and processes. The Board thus has broad knowledge and has skills in finance, law, human resources, marketing and information technology. The Boards Commitment to Diversity and Inclusion The Board firmly believes in the importance of diverse board membership. Currently there is a diverse mix of ethnicity, gender and experience on the Board, including two women and three nationalities. Director Induction, Training and Development Programmes Training and orientation workshops are held for new and existing directors. The workshops cover topics such as the Groups business, corporate governance, fiduciary duties and responsibilities, terms of reference of all board committees, key company policies, new laws and regulations and risk management. The Group has in place continuous development programmes that are tailored to the needs of the Directors. Development programmes are arranged for the Board that focus on their duties, responsibilities, powers and potential liabilities as well as governance and the financial services industry. Training is scheduled throughout the year and may be provided internally or by external service providers. The Corporate Secretariat team plays a pivotal role in assisting the non-executive directors to achieve their development plans and this is tracked and reviewed by the Board. Openness and Transparency The board has unrestricted access to company information, records, documents and management. Efficient and timely procedures for briefing board members before board meetings have been developed and implemented. The information provided to directors enables them to reach objective and well-informed decisions. A range of non-financial information is also provided to the board to enable it to consider qualitative performance factors that involve broader stakeholder interests. The directors are empowered to obtain independent professional advice at the Groups expense, should they consider it necessary. Board Meetings The Board meets quarterly. Board meetings are scheduled well in advance according to a board calendar which is set and approved a year in advance. Additional board meetings, apart from those planned, are convened as circumstances dictate. The Board agenda and meeting structure focuses on strategy, performance monitoring, governance and related matters. This ensures that the boards time and energy are appropriately applied. Directors may propose additional matters for discussion at board meetings. Board meetings are conducted in a manner that encourages open communication, active participation and timely resolution of issues. Sufficient time is provided during Board meetings for thoughtful discussions. Board meetings are facilitated, but not overly influenced by the Chairperson. Board Remuneration Non-executive directors receive fees for their board membership and committees on which they serve. In line with best practice, proposals on non-executive directors remuneration are made by the Human Resources and Remuneration Committee for review by the Board. The remuneration of non-executive directors is submitted to shareholders for approval at the annual general meeting held prior to implementation. The Directors remuneration is aligned to best practice and remains competitive with that of other financial institutions. Performance Assessment The Board undertakes a formal and rigorous annual evaluation of its own performance and that of its Committees and each director. The Board, led by the Chairman, uses a detailed questionnaire, completed by each director, as the basis of these evaluations. This evaluation is aimed at determining how the boards effectiveness can be improved. The evaluation process is governed by the Reserve Bank of Zimbabwe which is ultimately the custodian of the Board Evaluation Report in line with its Corporate Governance Guidelines. Succession Planning The Boards succession planning process encompasses an evaluation of the skills, knowledge and experience required to implement the Groups business plans and strategy, as well as the need to transform the board and ensure greater diversity. Our board contains individuals with diverse skills, knowledge and experiences and this provides effective board dynamics. The Board continues to focus on the current and future composition of the Board and its committees and key factors include technical skills, gender and diversity of perspective. STRATEGIC LEADERSHIP The strategic leadership of the company is the responsibility of the board, comprising of two executive directors and twelve independent non-executive directors as at 30 June 2013. The Board manages the Company through a formal schedule of matters reserved for its decision. These include overall management of the Company; approval of the companys strategic plans; approval of the Companys operating and capital expenditure budgets; approval of the annual report and financial statements, material agreements, audit and risk management, remuneration, and corporate responsibility. The board has delegated some of its responsibilities to its subcommittees but reserves some areas of responsibility solely for itself. Board Oversight of Risks and Performance The board identifies and monitors key risk areas, key performance areas and non-financial aspects relevant to the Group, supported by board-appointed committees. The board also considers several key performance indicators, variance reports and industry trends every quarter. Internal Financial Control It is the responsibility of the Board to ensure that effective financial controls are implemented in the Group. Internal controls focus on critical risk areas and are based on established policies and procedures. Adequate segregation of duties are in place to enhance the effectiveness of these controls. The Board monitors the effectiveness of these controls through reviews by the Audit Committee and independent evaluation by the external auditors. Financial Reporting The Directors are responsible for ensuring that the Group maintains adequate records for reporting on the financial position of the Group and the results of its activities with accuracy and reliability. Financial reporting procedures are consistently applied within the Group and all financial and related non-financial information is constantly reviewed and remedial action taken, where necessary. Shareholders and the public are regularly kept up to date through the Annual Report, the Consolidated Financial Statements, as well as Interim Financial Reports. Compliance The banking, building society and asset management subsidiaries are subject to regulation by the Reserve Bank of Zimbabwe and the Registrar of Banks and Financial Institutions. Where appropriate, the Group participates in industry consultative committees and discussion groups aimed at enhancing the business environment. As at 30 June 2013 the Group was not involved in any material litigation, disputes or arbitration proceedings which may have had a significant effect on its financial position. Shareholders The Boards primary role is to promote the success of the Company and the interests of shareholders. The Board is accountable to shareholders for the performance and activities of the Group. The Company recognises the importance of communicating with its shareholders to ensure that its strategy and performance are understood. This is achieved principally through the Annual Report and the AGM. In addition, a range of corporate information, including all Company announcements and presentations, is available to investors on the Companys website. BOARD COMMITTEES The board has established and delegated specific roles and responsibilities to four standing committees, to assist it in discharging its duties and responsibilities. The terms of reference of each committee are approved by the board and reviewed annually or as necessary. All committees are chaired by independent non-executive directors. The committees meet quarterly in accordance with their terms of reference and Members of the Executive Committee and other management attend meetings of the various committees by invitation. The Board receives the minutes of each of the committees meetings. In addition, the committee chairs update the full Board on the items covered by their committee.

This framework ensures that there is a balance of power and that no individual has unlimited decision-making powers. All boarddelegated authorities are reviewed and updated annually by the board. The board evaluates the performance and effectiveness of board committees every year. Board Structure

BOARD

Audit and Finance Committee

Risk Management & Compliance Committee

Human Resources and Remuneration Committee

IT & Business Development Committee

CBZ HOLDINGS LIMITED BOARD COMMITTEE AND BOARD ATTENDANCE REGISTER (January to June 2013)
Audit & Finance Bere, T Ben Ghali, M I O Dernawi, F M Lowe, A Mugamu, E Mutambara, D Nanabawa, M H Nhamo, R Pasi, R Taputaira, G Wilde, R V Zembe, L * Mangudya, J P* Nyemudzo, N* ** ** ** 2 2 ** 2 ** 2 ** ** ** 2 2 Risk Management & Compliance 1 2 2 2 ** ** ** ** 2 ** ** ** 2 2 Human Resources It & Business & Remuneration Development 1 ** ** ** ** 2 ** 2 ** ** 2 2 2 ** ** 2 2 ** ** 2 ** ** ** 2 ** 2 2 1 Main Board 1 2 2 2 2 2 2 2 2 2 2 2 2 2

KEY * Executive Directors ** Not a Member Committee Number of Meetings Held Audit and Finance 2 Risk Management & Compliance 2 Human Resources & Remuneration 2 IT & Business Development 2 Main Board 2 ADDITIONAL SUPPORT TO THE BOARD Subsidiary Boards The board has overall responsibility for the affairs of the Group, however subsidiary boards play an important role in the governance of the Group. The Company has created a governance framework between the Group and its subsidiaries that allows Directors access to subsidiary board documentation. Group Legal Corporate Secretary All directors have access to the qualified and experienced Group Secretary. The Group Legal Corporate Secretary provides guidance to the board as a whole and to individual directors with regard to how their responsibilities should be discharged in the best interests of the Group. The Group Legal Corporate Secretary oversees the induction of new directors and assists the Group Chairman and the Group Chief Executive to determine the board agendas, as well as to formulate governance and Board-related issues. STATEMENT OF COMPLIANCE Based on the information set out in this corporate governance statement, the Board believes that throughout the accounting period under review, the Group complied with the requisite regulatory requirements. By order of the Board

R.A. JAKANANI GROUP LEGAL CORPORATE SECRETARY 08 August 2013

Timeless nancial support for sustainable industrial growth Timeless nancial support for sustainable industrial growth
To promote sustainable industrial growth, CBZ Bank Limited oers nancial support to the manufacturing industries, regardless of their size and potential. Contact our Corporate and Merchant Banking Division to nd out how we can take your business forward. To promote sustainable industrial growth, CBZ Bank Limited oers nancial support to the manufacturing industries, regardless of their size and potential. Contact Corporate and Merchant Banking Proud to be a part of theour growth in our industries. Division to nd out how we can take your business forward.

Proud to be a part of the growth in our industries.

Partners For Success

Head Office: 3rd Floor, Union House, 60 Kwame Nkrumah, P O Box 3313, Harare, Tel: (04) 748050/79, 780880-4 798915, 756233-5,Fax: (04) 758077, Email: info@cbz.co.zw, Website: www.cbz.co.zw

Unaudited Financial Results

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

Partners For Success

Statement of Comprehensive Income

For the half year ended 30 June 2013 For the half year ended 30 June 2013 Unaudited Unaudited Notes 30 June 2013 30 June 2012 US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Interest income 2 71 214 672 63 240 274 Interest expense 2 (34 186 651) (25 923 683) Profit before taxation Net interest income 37 028 021 37 316 591 Non cash items: Non-interest income 3 17 692 312 15 870 630 Depreciation and amortisation Total income 54 720 333 53 187 221 Impairment on advances Operating expenditure 4 (36 213 054) (32 384 867) Unrealised gain on foreign currency position Operating income 18 507 279 20 802 354 Profit on sale of property and equipment Charge for impairment 10.5 (6 315 437) (3 101 282) Operating profit before changes in operating assets and liabilities Profit for the half year before taxation 12 191 842 17 701 072 Taxation 5 (4 184 916) (4 629 612) Changes in operating assets and liabilities Profit for the half year after taxation 8 006 926 13 071 460 Deposits Advances Other comprehensive income Money market assets Other assets Gains on property revaluations Other liabilities Fair value adjustment on available-for-sale (AFS) financial instruments - 26 018 Income tax relating to components of Corporate tax paid other comprehensive income 5.1 - (2 602) Other comprehensive income for the half year net of tax - 23 416 Net cash (outflow)/ inflow from operating activities Total comprehensive income for the half year 8 006 926 13 094 876 CASH FLOWS FROM INVESTING ACTIVITIES Profit for the half year attributable to: Net change in investments Equity holders of parent 8 006 926 13 071 460 Proceeds on disposal of property and equipment 8 006 926 13 071 460 Purchase of property and equipment Total comprehensive income attributable to: Net cash outflow from investing activities Equity holders of parent 8 006 926 13 094 876 8 006 926 13 094 876 CASHFLOWS FROM FINANCING ACTIVITIES Earnings per share (annualised) (cents): Dividends paid Basic 6.4 3.13 5.11 Net cash flow from financing activities Fully diluted 6.4 3.13 5.11 Headline 6.4 3.13 5.12 NET INCREASE/(DECREASE) IN BALANCES WITH BANKS AND CASH Balances with banks and cash at the beginning of period Balances with banks and cash at end of period

Statement of Cash Flows

Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 12 191 842 1 980 834 6 315 437 550 072 3 190 21 041 375 119 710 345 (55 764 449) (99 044 592) 21 295 728 (5 508 815) (19 311 783) (8 887 910) (7 158 318) (16 578 208) 352 215 (7 028 827) (23 254 820) - - (30 413 138) 175 932 794 145 519 656 17 701 072 1 711 517 3 101 282 (2 422 831) 37 026 20 128 066 152 133 108 427 162 (49 298 251) (298 273) (52 899 932) 50 063 814 (8 384 449) 61 807 431 (412 491) 305 479 (3 174 625) (3 281 637 (8 000 000) (8 000 000) 50 525 794 140 060 364 190 586 158

Statement of Financial Position

As at 30 June 2013 Unaudited Audited For the half year ended 30 June 2013 Notes 30 June 2013 31 Dec 2012 1. INCORPORATION AND ACTIVITIES US$ US$ ASSETS Balances with banks and cash 8 145 519 656 175 932 794 Money market assets 9 156 049 485 57 004 893 Advances 10 823 601 217 774 152 205 Other assets 11 31 016 559 52 312 287 Investments in equities 12 16 750 414 172 206 Property and equipment 13 51 677 600 46 698 149 Investment properties 14 2 745 000 2 745 000 Intangible assets 15 888 582 1 175 445 Deferred taxation 16 5 310 044 4 917 190 TOTAL ASSETS 1 233 558 557 1 115 110 169 LIABILITIES Deposits 17 1 123 689 671 1 003 429 254 Other liabilities 18 6 354 212 11 863 027 Current tax payable 216 142 4 526 282 TOTAL LIABILITIES 1 130 260 025 1 019 818 563 EQUITY AND RESERVES Share capital 19 5 118 180 Share premium 19.1 11 198 956 Non-distributable reserve 19.2 5 522 755 Revaluation reserve 19.3 8 191 449 Revenue reserves 19.5 73 267 192 TOTAL EQUITY & RESERVES 103 298 532 TOTAL LIABILITIES, EQUITY AND RESERVES 1 233 558 557 5 118 180 11 198 956 5 522 755 8 191 449 65 260 266 95 291 606 1 115 110 169

Notes to the Financial Results

The Bank is incorporated in Zimbabwe and registered in terms of the Companies Act (Chapter 24:03) and the Banking Act (Chapter 24:20). It offers retail banking, commercial banking, investment banking, small to medium enterprises financing, treasury management, wealth management, agribusiness and custodial services. Unaudited Unaudited 30 June 2013 30 June 2012 2. NET INTEREST INCOME US$ US$ Interest income Overdrafts Loans Mortgage interest Staff loans Short-term money market assets Other Investments Interest expense Savings deposits Call deposits Money market deposits Other offshore deposits 3. NON-INTEREST INCOME Net income from foreign currency dealings Commission and fee income Revaluation profit on foreign currency positions Loss on sale of property and equipment Other operating income 4. OPERATING EXPENDITURE Staff costs Administration expenses Audit fees Depreciation Amortisation of intangible assets 47 651 345 21 404 700 1 125 909 111 455 70 293 409 700 670 220 593 71 214 672 2 380 567 172 334 20 914 825 10 718 925 34 186 651 4 171 550 11 347 689 550 072 (3 190) 1 626 191 17 692 312 21 777 106 12 284 098 171 016 1 693 971 286 863 36 213 054 37 337 665 24 145 090 1 338 562 146 783 62 968 100 238 896 33 278 63 240 274 2 175 308 40 715 16 667 312 7 040 348 25 923 683 1 613 837 4 942 554 2 422 831 (37 026) 6 928 434 15 870 630 18 244 463 12 289 030 139 857 1 451 524 259 993 32 384 867

Statement of Changes in Equity

For the half year ended 30 June 2013 Share Share Revaluation AFS Revenue capital premium NDR reserve reserve reserve Total US$ US$ US$ US$ US$ US$ US$ 2012 Balance at the beginning of the year Total comprehensive income Dividends Balance at 30 June 2012 5 118 180 11 198 956 5 522 755 - - - - - - 5 118 180 11 198 956 5 522 755 6 267 162 - - 6 267 162 (636 498) 50 796 425 23 416 13 071 460 - (8 000 000) (613 082) 55 867 885 78 266 980 13 094 876 (8 000 000) 83 361 856

2013 Balance at 1 January 2013 5118 180 11 198 956 5 522 755 8 191 449 - 65 260 266 95 291 606 Total comprehensive income - - - - - 8 006 926 8 006 926 Balance at 30 June 2013 5 118 180 11 198 956 5 522 755 8 191 449 - 73 267 192 103 298 532

Remuneration of directors and key management Personnel Fees for services as directors Pension for past and present directors Salaries and other benefits Operating Leases The following is an analysis of expenses related to operating leases Non cancellable leases are paid as follows: Less than 1 year Between 1 and 5 years

374 600 70 529 1 066 352 1 511 481

295 797 44 742 1 474 645 1 815 184

150 970 602 094 753 064

77 730 1 096 286 1 174 016

The Bank leases a number of branches under operating leases. The leases typically run for a period of less than 5 years with an option to renew the lease after the expiry date. During the half year ended 30 June 2013, an amount of US $426 223 was recognised as rental expense in the statement of comprehensive income. 5. TAXATION Current income tax and deferred tax on temporary differences have been fully provided for. Deferred income tax is calculated using the statement of financial position liability method. Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ Analysis of tax charge in respect of the profit for the half year Current income tax charge 4 577 770 5 171 060 Deferred income tax (392 854) (541 448) Income tax expense 4 184 916 4 629 612 Tax rate reconciliation Notional Tax Aids levy Permanent difference Temporary difference Effective tax rate % % 25 25 0.75 0.75 2.05 6.53 0.40 34.33 26.15

Unaudited Financial Results

10

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

Partners For Success

NOTES TO THE BANK FINANCIAL RESULTS (continued)

5.1 6. 6.1.

Tax effects relating to comprehensive income Gross fair value adjustment on AFS financial assets Tax expense Net fair value adjustment on AFS financial adjustments Total taxation relating to comprehensive income EARNINGS PER SHARE

Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ - - - - 26 018 (2 602) 23 416 2 602

10. ADVANCES (continued) 10.2 Maturity analysis Demand Between 1 and 3 months Between 3 and 6 months Between 6 months and 1 year Between 1 and 5 years More than 5 years

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$

Basic earnings per share amounts are calculated by dividing net profit for the half year attributable to ordinary equity holders of the company by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the company by the weighted average number of ordinary shares outstanding during the half year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into the ordinary shares Headline earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the company after adjustments for excluded re-measurements by the weighted average number of ordinary shares outstanding during the period.

555 213 372 918 356 40 086 084 19 066 242 176 174 772 69 937 760 861 396 586

508 663 930 21 687 862 12 434 738 49 740 824 142 679 444 72 390 058 807 596 856

Maturity analysis is based on the remaining period from 30 June 2013 to contractual maturity. 10.3 10.4 10.5 Loans to directors, key management and employees Loans to directors and key management Included in advances are loans to directors and key management:Opening balance Advances made during the period Repayment during the period Closing Balance Loans to employees Included in advances are loans to employees: Opening balance Advances made during the period Repayments during the period Closing Balance Non performing advances Total advances on which interest is suspended Impairment of advances Opening balance Charge for impairment Interest in suspense Amounts written off during the period Closing Balance Comprising: 25 995 291 11 800 078 37 795 369 18 432 176 15 012 475 33 444 651 33 444 651 6 315 437 8 253 589 (10 218 308) 37 795 369 20 640 909 4 242 173 8 561 569 33 444 651 39 745 077 41 386 122 34 914 128 2 395 608 (2 896 628) 34 413 108 32 933 309 7 774 075 (5 793 256) 34 914 128 5 751 072 1 768 946 (448 686) 7 071 332 3 541 884 3 228 160 (1 018 972) 5 751 072

The following reflects the income and share data used in the basic and diluted earnings per share computations: Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 8 006 926 8 006 926 8 010 116 13 071 460 13 071 460 13 111 088

EARNINGS 6.2 6.3 6.4 Basic earnings Fully diluted Headline Reconciliation of numerators used for calculating basic and diluted earnings per share: Basic earnings Diluted earnings Reconciliation of denominators used for calculating basic and diluted earnings per share:

8 006 926 8 006 926

13 071 460 13 071 460

Weighted average number of shares used 511 817 951 for basic earnings per share Weighted average number of shares used for diluted EPS 511 817 951 Reconciliation of earnings used for calculating basic and headline earnings per share: 8 006 926 3 190 - 8 010 116 3.13 3.13 3.13

511 817 951 511 817 951

Profit attributable to shareholders Adjusted for excluded re- measurements: Disposal losses on property and equipment Tax relating to re-measurements Earnings per share (cents) Basic Diluted Headline 7. DIVIDENDS

13 071 460 37 026 2 602 13 111 088 5.11 5.11 5.12

Specific impairments Portfolio impairments 10.6 Collaterals 11.

Interim dividend paid 8. BALANCES WITH BANKS AND CASH Balance with the Reserve Bank of Zimbabwe Current accounts Balances with other banks and cash Cash foreign Nostro accounts Interbank clearing accounts 9. MONEY MARKET ASSETS Call placements Treasury bills and placements Accrued interest 9.1 Money market portfolio analysis Held for trading portfolio Maturity analysis Between 1 and 3 months Between 3 months and 1 year Between 1 and 5 years 9.2 Financial Assets held for trading 9.3 Trading bills and placements Maturity value Book value Financial assets at fair value through profit and loss Financial assets held for trading

- -

1 100 000 1 100 000

Notarial general covering bonds 516 726 805 396 259 583 Mortgage bonds 612 181 647 649 281 010 1 128 908 452 1 045 540 593 OTHER ASSETS Intercompany balances 10 771 997 7 405 49 Land development 16 161 806 15 941 157 Prepayments and deposits 1 213 123 1 437 173 Short term receivables 2 869 633 27 528 465 31 016 559 52 312 287 12. INVESTMENTS IN OTHER FINANCIAL ASSETS

Unaudited Audited Investments in equity instruments 9 184 303 172 206 30 June 2013 31 Dec 2012 Investments in debenture instruments 7 566 111 US$ US$ 16 750 414 172 206 12.1 investments in equities Listed investments - - 112 244 315 102 502 494 Unlisted investments 9 184 303 172 206 112 244 315 102 502 494 9 184 303 172 206 33 275 341 73 430 300 21 508 371 40 815 918 At cost 9 184 303 172 206 11 719 986 32 605 515 At fair value - 46 984 8 867 9 184 303 172 206 145 519 656 175 932 794 Portfolio analysis Available for sale 9 184 303 172 206 9 184 303 172 206 12.2 investments in debentures 41 410 679 45 992 285 114 243 282 10 942 842 Investments in debentures are held to maturity 395 524 69 766 And valued at amortised cost less impairments 156 049 485 57 004 893 Debenture investments held by the Group are convertible 156 049 485 57 004 893 and had the following features; 156 049 485 57 004 893 Tenure (years) 5 41 560 230 47 007 906 Interest rate (%) 7% -10% 107 529 265 9 996 987 Value (US$) 7 566 111 6 959 990 156 049 485 57 004 893 Portfolio analysis At amortised cost 7 566 111 - 13. PROPERTY AND EQUIPMENT 156 049 485 57 004 893 Leasehold Motor Computer and Work in 157 049 485 57 122 799 Land Buildings improvements vehicles equipment progress 30 June 2013 31 Dec 2012 156 049 485 57 004 893 Cost US$ US$ US$ US$ US$ US$ US$ US$ 156 049 485 57 004 893 Opening balance Additions Revaluation reserve Disposals Transfers Closing balance 2 650 000 - - - - 2 650 000 23 351 500 158 082 - - 21 588 23 531 170 442 240 52 398 - - - 494 638 2 504 055 73 365 - (44 660) 63 110 2 595 870 14 279 646 586 693 - (38 230) 221 339 15 049 448 9 352 360 6 158 289 - (323 200) (306 037) 14 881 412 52 579 801 44 201 607 7 028 827 6 946 595 - 1 930 890 (406 090) (499 291) - 59 202 538 52 579 801

10. ADVANCES Overdrafts Loans Mortgage advances Interest accrued Total gross advances Impairment 452 125 957 361 619 136 37 999 103 851 744 196 9 652 390 861 396 586 (37 795 369) 823 601 217 % 7 30 2 14 24 - 3 1 17 2 100 474 849 515 288 582 634 37 158 222 800 590 371 7 006 485 807 596 856 (33 444 651) 774 152 205 % 51 268 781 6 255 563 449 32 13 120 322 2 151 717 080 19 205 807 416 25 3 119 161 17 070 839 2 6 636 850 1 102 216 773 13 1 076 185 807 596 856 100

10.1 Sectoral analysis Private 58 908 810 Agriculture 257 026 277 Mining 13 146 720 Manufacturing 119 411 113 Distribution 210 858 947 Construction 3 369 448 Transport 26 825 472 Communication 11 985 434 Services 143 091 261 Financial organisations 16 773 104 861 396 586

Accumulated depreciation Opening balance - - 129 528 1 377 845 4 374 279 - 5 881 652 3 524 412 Charge for the period - 286 225 21 619 205 295 1 180 832 - 1 693 971 2 999 193 Disposals - - - (27 393) (23 292) - (50 685) (105 570) Revaluation - - - - - - - (536 383) Closing balance - 286 225 151 147 1 555 747 5 531 819 - 7 524 938 5 881 652 Net Book Value 2 650 000 23 244 945 343 491 1 040 123 9 517 629 14 881 412 51 677 600 46 698 149 There was no revaluation of property and equipment during the half year ended 30 June 2013. Properties were revalued on an open market basis by an independent professional valuer, Mabikacheche and Associates as at 31 December 2012 in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Manual and the Real Estate Institute of Zimbabwe Standards. The revaluation of land and buildings entailed the following: In determining the market values of the subject properties, the following was considered: Comparable market evidence which comprised complete transactions as well as transactions where offers had been made but the transactions had not been finalised. Professional judgment was exercised to take cognisance of the fact that properties in the transactions were not exactly comparable in terms of size, quality and location to the properties owned by the Bank. The reasonableness of the market values of commercial properties so determined, per above bullet, was assessed by reference to the properties in the transaction. The values per square metre of lettable spaces for both the subject properties and comparables were analysed.

Unaudited Financial Results

11

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

Partners For Success

NOTES TO THE BANK FINANCIAL RESULTS (continued)

With regards to the market values for residential properties, the comparison method was used. This method entails carrying out a valuation by directly comparing the subject property, which have been sold or rented out. The procedure was performed as follows: i. Surveys and data collection on similar past transactions. ii. Analysis of the collected data. iii. Comparison of the analysis with the subject properties and then carrying out the valuation of the subject properties. Adjustments were made to the following aspects: a) b) c) d) Age of property state of repair and maintenance Aesthetic quality quality of fixtures and fittings Structural condition location Accommodation offered size of land

18. OTHER LIABILITIES Revenue received in advance Sundry creditors Other 19. SHARE CAPITAL Authorised 600 000 000 ordinary shares of US$ 0.01each Issued and fully paid 511 817 951 ordinary shares of US$ 0.01each

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 924 385 4 944 843 484 984 6 354 212 826 328 10 111 298 925 401 11 863 027

6 000 000 5 118 180 11 198 956 - 11 198 956 5 522 755 - 5 522 755 8 191 449 - 8 191 449 - - -

6 000 000 5 118 180 11 198 956 11 198 956 5 522 755 5 522 755 6 267 162 1 924 287 8 191 449 (636 498) 636 498 -

The maximum useful lives are as follows: Buildings Motor vehicles Leasehold improvements Computer equipment Furniture and fittings 40 years 3 5 years 10 years 5 years 10 years

The carrying amount of buildings would have been US$15 957 428 had they been carried at cost. Property and equipment was tested for impairment through comparison with the open market values determined by independent valuers. No impairment was identified from the test. Unaudited Audited 30 June 2013 31 Dec 2012 14. INVESTMENT PROPERTIES US$ US$ Opening balance Additions Fair valuation gain Closing balance - 2 745 000 - 2 745 000 2 288 000 9 930 447 070 2 745 000

19.1 Share premium Opening balance Movement for the period Closing balance 19.2 Non-distributable reserve Opening balance Movement for the period Closing balance 19.3 19.4 19.5 Revaluation reserve Opening balance Revaluation adjustments made during the period Closing balance Available for sale reserve Opening balance Total comprehensive income Closing balance Revenue reserve Opening balance Profit for the period Dividend paid Closing balance

The carrying amount of the investment property is the fair value of the property as determined by a registered independent appraiser having an appropriate recognised professional qualification and recent experience in the location and category of the property being valued. The valuation was in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Manual and the Real Institute of Zimbabwe Standards. Fair values were determined having regard to recent market transactions for similar properties in the same location as the Banks investment properties. The properties were valued as at 31 December 2012. The rental income derived from investments properties amounted to US$ Nil, with direct operating expenses amounting to US$nil. Unaudited Audited 30 June 2013 31 Dec 2012 15 INTANGIBLE ASSETS US$ US$ Computer software At cost 1 718 438 1 718 438 Accumulated amortisation (829 856) (542 993) 888 582 1 175 445 Movement in intangible assets: Opening balance 1 175 445 1 560 091 Additions - 158 347 Amortisation charge (286 863) (542 993) Closing balance 888 582 1 175 445 Intangible assets are carried at cost less accumulated amortisation charge. The intangible assets are amortised over a period of 3 years. 16 DEFERRED TAXATION Deferred tax liability Deferred tax related to items charged or credited to statement of comprehensive income during the period is as follows: Revaluation of property and equipment - Fair value adjustment Available for sale financial assets - - The deferred tax included in the statement of financial position and changes recorded in the income tax expenses are as follows: Deferred tax asset Fair value adjustments - Prepayments (112 500) Impairment allowance 797 211 Property and equipment (491 883) Other 200 026 392 854 Add: Opening balance 4 917 190 Closing balance 5 310 044 17. DEPOSITS Call deposits 6 574 884 Savings and other deposits 504 917 461 Money market deposits 358 496 058 Offshore deposits 244 798 380 Accrued interest 8 902 888 1 123 689 671 17.1 Deposits by source Banks 53 279 183 Money market 316 444 614 Customers 506 507 054 Offshore deposits 247 458 820 1 123 689 671 17.2 Deposits by type Retail 50 010 257 Corporate 456 496 797 Money market 369 723 797 Offshore deposits 247 458 820 1 123 689 671 17.3. Sectoral Analysis % Private 102 422 563 9 Agriculture 34 967 216 3 Mining 10 558 932 1 Manufacturing 129 477 496 12 Distribution 138 292 959 12 Construction 24 736 229 2 Transport 16 912 288 2 Communication 64 065 520 6 Services 269 739 116 24 Financial organisations 308 293 613 27 Investments organisations 24 223 739 2 1 123 689 671 100 17.4 Maturity analysis Repayable on demand Between 1 and 3 months Between 3 months and 6 months Between 6 months and 1 year Between 1 year and 5 years More than 5 years 5 356 014 484 462 910 332 855 042 171 716 509 9 038 779 1 003 429 254 36 114 207 308 364 851 485 661 677 173 288 519 1 003 429 254 43 014 045 442 647 632 344 479 058 173 288 519 1 003 429 254 % 111 312 920 11 33 069 968 3 9 986 027 1 122 452 318 12 130 789 472 13 23 394 093 2 15 994 662 2 60 589 459 6 190 277 630 19 282 952 584 29 22 610 121 2 1 003 429 254 100 (542 986) (6 505) (549 491)

65 260 266 8 006 926 - 73 267 192

50 796 425 31 044 211 (16 580 370) 65 260 266 Total carrying amount US$ 145 519 656 156 049 485 823 601 217 16 750 414 14 437 280 1 156 358 052 1 123 689 671 6 354 212 216 142 1 130 260 025

20. Categories Of Financial Instruments Held for Trading US$ June 2013 Financial assets Balances with banks and cash Money market assets 156 049 485 Advances - Investments- other financial assets - Other assets - Total 156 049 485 Financial liabilities Deposits Other liabilities Current tax payable Total December 2012 Financial assets Balances with banks and cash Money market assets Advances Investments of other financial assets Other assets Total - - - -

Available for sale US$ - - - 9 184 303 - 9 184 303 - - - -

Loans and Financial assets/liabilities receivables at amortised cost US$ US$ 145 519 656 - 823 601 217 7 566 111 14 437 280 991 124 264 - - - - - - - - - - 1 123 689 671 6 354 212 216 142 1 130 260 025

- 57 004 893 - - - 57 004 893

- - - 172 206 - 172 206

175 932 794 - 774 152 205 - 33 810 128 983 895 127

- - - - - - 1 003 429 254 11 863 027 4 526 282 1 019 818 563

175 932 794 57 004 893 774 152 205 172 206 33 810 128 1 041 072 226 1 003 429 254 11 863 027 4 526 282 1 019 818 563

(22 850) (143 409) 1 092 359 (120 467) 1 272 536 2 078 169 3 388 512 4 917 190

Financial liabilities Deposits - - - Other liabilities - - - Current tax payable - - - Total 21.

CONTINGENCIES AND COMMITMENTS Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ Contingent liabilities Guarantees 17 870 903 23 024 087 17 870 903 23 024 087 Capital commitments Authorised and contracted for 640 579 269 984 Authorised and uncontracted for - 640 579 269 984 The capital commitments will be funded from the Bank`s own resources and borrowings. CAPITAL MANAGEMENT The primary objectives of the Bank`s capital management are to ensure that the Bank complies with external imposed capital requirements and the Bank maintains strong credit ratings and healthy capital ratios in order to support its business and maximise shareholder value. The Bank manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Bank may adjust the amount of dividend payment to shareholders, retain capital or issue capital securities. No changes were made in the objectives, policies and processes from the previous years. Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ CAPITAL ADEQUACY The capital adequacy is calculated in terms of the guidelines issued by the Reserve Bank of Zimbabwe. 880 107 611 110 616 715 780 353 072 100 702 263

22.

23.

Risk weighted assets Total qualifying capital

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 506 507 054 341 124 434 103 777 988 79 758 808 86 999 980 5 521 407 1 123 689 671 630 194 168 159 130 548 48 834 228 35 162 346 124 723 283 5 384 681 1 003 429 254

Maturity analysis is based on the remaining period from 30 June 2013 to contractual maturity.
Unaudited Financial Results

Tier 1 Share capital 5 118 180 5 118 180 Share premium 11 198 956 11 198 956 Revenue reserves 73 267 192 65 260 266 Less tier 1 deductions (19 087 708) (21 268 004) 70 496 620 60 309 398 Tier 2 Revaluation reserve 13 714 204 13 714 204 General provisions 8 803 244 9 754 413 22 517 448 23 468 617 Tier 3 Capital allocated for market risk 1 723 457 1 045 058 Capital allocated to operations risk 15 879 190 15 879 190 17 602 647 16 924 248 Capital adequacy 12.57% 12.90% -Tier 1 8.01% 7.72% -Tier 2 2.56% 3.01% -Tier 3 2.00% 2.17% Regulatory capital consists of Tier 1 capital which comprises share capital, share premium and revenue reserves including current period profit. The other component of the regulatory capital is Tier 2 capital, which includes general provisions and revaluation reserves.
for the half year ended 30 June 2013

12

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

Partners For Success

NOTES TO THE BANK FINANCIAL RESULTS (continued)

24. RISK MANAGEMENT 24.1 Risk overview CBZ Bank has adopted High Risk Management and Compliance Culture as one of its major strategic thrust which is embedded under clearly defined risk appetite in terms of the various key risk exposures. This approach has given direction to the Banks overall strategic planning and policies. Through CBZ Group Risk Management function, the Bank regularly carries out stress testing as well as simulations to ensure that there is congruency or proper alignment between its strategic focus and desired risk appetite. 24.2 Bank risk management framework The Banks risk management framework is consistent with that applied by the Group. For details of this refer to note 32.1, 32.3, 32.3.1 to 32.4.1, 32.7 to 32.12.2. The Banks risk management framework looks at enterprise wide risks and recognises that for effective risk manaement to take effect, it has to be structured in terms of acceptable appetite, defined responsibility, accountability and independent validation of set processes. Bank Management and staff are responsible for the management of the risks that fall within their organisational responsibilities. The CBZ Group Risk Management function is responsible for ensuring that the Bank risk taking remain within the set risk benchmarks. The Group Internal Audit function provides independent assurance on the adequacy and effectiveness of risk management processes. The CBZ Group Enterprise Wide Governance and Compliance Unit evaluate quality of compliance with policy, processes and governance structures. 24.4 (a) Credit risk exposure The table below shows the maximum exposure to credit risk for the components of the statement of financial position. Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ Balances with Banks 124 011 285 Money market assets 156 049 485 Advances 823 601 217 Other assets 14 438 280 Total 1 118 100 267 Contingent liabilities 17 870 903 Commitments 640 579 Total 18 511 482 135 116 876 57 004 893 774 152 205 33 810 128 1 000 084 102 23 024 087 269 984 23 294 071

24.4 (e) Credit Quality per Class of Financial Assets The credit quality of financial assets is managed by the Bank using internal credit ratings. The table below shows the credit quality by class of asset for loan-related statement of financial position lines based on the Banks credit rating system. JUNE 2013 Special Doubtful and Normal mention Sub-standard Loss grade grade grade grade Total US$ US$ US$ US$ US$ Loans and advances to customers Agriculture 220 311 241 33 348 129 2 435 198 688 382 256 782 950 Manufacturing 106 945 951 19 857 582 10 684 444 5 923 135 143 411 112 Commercial 86 487 802 1 438 820 1 639 806 - 89 566 428 Individual and Households 49 008 904 3 471 572 6 309 991 118 343 58 908 810 Mining 8 998 376 2 625 236 6 865 1 516 244 13 146 721 Distribution 224 048 954 8 531 982 5 065 011 2 981 159 240 627 106 Construction 3 237 545 - 131 903 - 3 369 448 Transport 24 397 158 183 718 2 244 597 - 26 825 473 Communication 11 985 434 - - - 11 985 434 Financial organisations 16 773 104 - - - 16 773 104 752 194 469 69 457 039 28 517 815 11 227 263 861 396 586 The Bank has issued financial guarantee contracts in respect of debtors for which the maximum amount payable by the Bank, assuming all guarantees are called on, is $17.9 million. DECEMBER 2012 Doubtful and Normal Special mention Sub- standard Loss grade grade grade grade Total US$ US$ US$ US$ US$ Loans and advances to customers Agriculture 195 772 985 44 015 318 8 050 112 7 725 034 255 563 449 Manufacturing 135 079 160 5 875 986 6 785 433 3 976 502 151 717 081 Commercial 95 798 283 3 780 853 2 578 387 59 250 102 216 773 Individual and Households 49 611 573 1 199 426 452 255 5 526 51 268 780 Mining 7 928 034 3 267 192 1 925 096 - 13 120 322 Distribution 176 506 706 20 442 282 8 685 797 172 631 205 807 416 Construction 3 004 681 - 114 480 - 3 119 161 Transport 16 138 920 76 300 855 619 - 17 070 839 Communication 6 636 850 - - - 6 636 850 Financial organisations 1 076 185 - - - 1 076 185 687 553 377 78 657 357 29 447 179 11 938 943 807 596 856 The Bank has issued financial guarantee contracts in respect of debtors for which the maximum amount payable by the Bank, assuming all guarantees are called on is $23.0 million. 24.5 Liquidity risk Liquidity relates to the Banks ability to fund its growth in assets and to meet obligations as they fall due without incurring unacceptable losses. The Bank recognises two types of liquidity risks i.e. Market liquidity risk and Funding liquidity risk. Market liquidity risk is the risk that the Bank cannot cover or settle a position without significantly affecting the market price because of limited market depth. Funding risk, on the other hand, is the risk that the Bank will not be able to efficiently meet both its expected as well as the unexpected current and future cash flow needs without affecting the financial condition of the Bank. The Banks liquidity risk management framework ensures that limits are set relating to levels of wholesale funding, retail funding, loans to deposit ratio, counter- party exposures as well as prudential liquidity ratio. The primary source of funding under the Bank are customer deposits made up of current, savings and term deposits and these are diversified by customer type and maturity. The Bank tries to ensure through the Assets and Liabilities Committee processes and balance sheet management processes that asset growth and maturity are funded by appropriate growth in deposits and stable funding respectively. LIQUIDITY PROFILE AS AT 30 JUNE 2013 1 to 3 3 months 1 to 5 Above Demand months to 1 year years 5 years Total US$ US$ US$ US$ US$ US$ Assets Advances 530 852 358 878 061 56 556 907 168 444 778 66 869 113 823 601 217 Balances with banks and cash 33 275 341 112 244 315 - - - 145 519 656 Investments in equities - - - 7 566 111 - 7 566 111 Money market assets 41 560 230 107 529 265 6 959 990 - - 156 049 485 Other assets 1 275 121 13 163 159 - - - 14 438 280 Total 606 963 050 233 814 800 63 516 897 176 010 889 66 869 113 1 147 174 749 Liabilities Deposits 506 507 054 341 124 434 183 536 796 86 999 980 5 521 407 1 123 689 671 Current tax payable - 216 142 - - - 216 142 Other liabilities - 6 354 212 - - - 6 354 212 Financial guarantees - - 17 870 903 - - 17 870 903 Total 506 507 054 347 694 788 201 407 699 86 999 980 5 521 407 1 148 130 928 Liquidity gap 100 455 996 (113 879 988) (137 890 802) 89 010 909 Cumulative liquidity gap 100 455 996 (13 423 992) (151 314 794) (62 303 885) LIQUIDITY PROFILE AS AT 31 DECEMBER 2012 1 to 3 3 months 1 to 5 Above Demand months to 1 year years 5 years Total US$ US$ US$ US$ US$ US$ Assets Advances 475 219 280 21 687 862 62 175 562 142 679 444 72 390 057 774 152 205 Balances with banks and cash 92 585 687 83 347 107 - - - 175 932 794 Money market assets 47 007 906 9 996 987 - - - 57 004 893 Other assets - 33 810 128 - - - 33 810 128 Total 614 812 873 148 842 084 62 175 562 142 679 444 72 390 057 1 040 900 020 Liabilities Deposits Current tax payable Other liabilities Financial guarantees Total 630 194 168 - - - 630 194 168 159 130 548 4 526 282 - - 163 656 830 83 996 574 - 11 863 027 - 95 859 601 124 723 283 - - 23 024 087 147 747 370 5 384 681 1 003 429 254 - 4 526 282 - 11 863 027 - 23 024 087 5 384 681 1 042 842 650 67 005 376 (1 942 630) (1 942 630) (1 942 630) 61 347 706 (956 179) (956 179) (956 179)

Where financial instruments are recorded at fair value the amounts shown above represent the current credit risk exposure but not maximum risk exposure that could arise in the future as a result of changes in value. The Bank held cash equivalents of US$124 011 288 (excluding notes and coins) as at 30 June 2013 which represents its maximum credit exposure on these assets. The cash and cash equivalents are held with the Central Bank, local and foreign banks. 24.4 (b) Aging analysis of past due but not impaired loans (Special Mention Loans): Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 1 to 3 months Total Past due but not impaired loans relate to loans in the special mention category. 24.4 (c) Aging analysis of impaired loans (Non-performing loans): Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 3 to 6 months 22 195 013 6 to 12 months 17 550 064 Total 39 745 077 29 447 178 11 938 944 41 386 122 69 457 039 69 457 039 78 657 357 78 657 357

Past due and impaired loans relate to loans under the following asset classification classes: Substandard, Doubtful and Loss. Refer to Group note 32.2.2 for definations. 24.4 (d) An industry sector analysis of the Banks financial assets before and after taking into account collateral held is as follows: Unaudited Unaudited Audited Audited 30 June 2013 30 June 2013 31 Dec 2012 31 Dec 2012 US$ US$ US$ US$ Gross maximum Net maximum Gross maximum Net maximum exposure exposure (not exposure exposure (not covered by covered by mortgage security mortgage security Private Agriculture Mining Manufacturing Distribution Construction Transport Communication Services Financial organisations Gross value at end of period 58 908 810 257 026 277 13 146 720 119 411 113 210 858 947 3 369 448 26 825 472 11 985 434 143 091 261 16 773 104 861 396 586 12 172 561 68 588 643 3 289 011 34 571 390 71 488 600 2 244 027 13 089 966 3 848 126 39 922 615 - 249 214 939 51 268 781 255 563 449 13 120 322 151 717 080 205 807 416 3 119 161 17 070 839 6 636 850 102 216 773 1 076 185 807 596 856 986 644 42 710 338 1 800 567 29 114 950 48 497 010 2 209 715 13 298 841 19 431 599 266 182 158 315 846

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ Collateral (mortgage security) Cash cover Other forms of security including Notarial General Covering Bonds (NGCBs), cessions, etc 612 181 647 18 387 000 498 339 805 1 128 908 452 649 281 010 18 387 000 377 872 583 1 045 540 593

The Bank holds collateral against loans and advances to customers in the form of mortgage interests over property, other registered securities over assets, guarantees, cash cover, and assignment of crop or export proceeds, leasebacks and stop-orders. Estimates of fair value are based on the value of collateral assessed at the time of borrowing, and are regularly updated with trends in the market. An estimate of the fair value of collateral and other security enhancements held against loans and advances to customers and banks is shown above and analysed as follows: Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ Against doubtful* and loss* grades Property 3 369 417 3 583 000 Other 11 787 388 12 534 574 Against substandard* grade Property Other Against special mention* grade Property Other Against normal* grade Property Other *See definition on Group note 32.2.2 4 078 048 32 995 112 9 518 271 80 917 337 595 215 911 391 026 968 1 128 908 452 4 438 500 35 315 191 65 224 386 40 963 046 576 035 123 307 446 773 1 045 540 593

Liquidity gap (15 381 295) (14 814 746) (33 684 039) (5 067 926) Cumulative liquidity gap (15 381 295) (30 196 041) (63 880 080) (68 948 006)

The table above shows the undiscounted cash flows of the Banks non-derivative on and off balance sheet financial assets and liabilities on the basis of their earliest possible contractual maturity and the related period gaps. For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called. The Bank carries out static statement of financial position analysis to track statement of financial position growth drivers, the pattern of core banking deposits, statement of financial position structure, levels and direction of the Banks maturity mismatch and related funding or liquidity gap. The Asset and Liability Management Committee (ALCO) comes up with strategies through its monthly meetings to manage these liquidity gaps.

Unaudited Financial Results

13

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

Partners For Success

NOTES TO THE BANK FINANCIAL RESULTS (continued)

Details of the liquidity ratio for the Bank at the reporting date and during the reporting period were as follows:

Foreign currency position as at 31 December 2012

Position expressed in US$ 30 June 2013 31 Dec 2012 Other foreign Total USD ZAR GBP currencies % % Assets At end of period 36.77 33.09 Balances with banks and cash 175 932 794 154 254 393 16 461 052 2 595 731 2 621 618 Average for the period 38.69 29.79 Money market assets 57 004 893 43 840 226 6 339 123 2 161 870 4 663 674 Maximum for the period 44.02 33.63 Advances 774 152 205 773 269 943 1 240 572 257 030 (615 340) Minimum for the period 35.19 22.48 Other Assets 52 312 287 51 054 445 1 164 923 44 629 48 290 Investment in equities 172 206 28 564 - - 143 642 24.7 Interest rate risk Investment properties 2 745 000 2 745 000 - - - Property and equipment 46 698 149 46 608 910 13 130 - 76 109 This is the possibility of a Banks interest income being negatively influenced by unforeseen changes in the interest rate Deferred taxation 4 917 190 4 917 190 - - - levels arising from weaknesses related to a Banks trading, funding and investment strategies. Intangible assets 1 175 445 1 175 445 - - - Total assets 1 115 110 169 1 077 894 116 25 218 800 5 059 260 6 937 993 This is managed at both Board and Management level through the regular policy and benchmarks which related also to interest rate risk management. The major areas of intervention involves daily monitoring of costs of funds, monthly analysis Liabilities and equity of interest re - pricing gaps, monthly interest rate simulations to establish the Banks ability to sustain a stressed interest rate Deposits 1 003 429 254 965 617 204 29 729 177 6 077 134 2 005 739 environment. The use of stress testing is an integral part of the interest rate risk management framework and considers both Other liabilities 11 863 027 11 793 624 - 61 864 7 539 the historical market events as well as anticipated future scenarios. The Bank denominates its credit facilities in the base Current tax payable 4 526 282 4 526 282 - - - currency i.e. the USD in order to minimize cross currency interest rate risk. The Banks interest rate risk profiling is displayed Equity and reserves 95 291 606 95 291 606 - - - below: Total equity and liabilities 1 115 110 169 1 077 228 716 29 729 177 6 138 998 2 013 278 INTEREST RATE REPRICING Foreign currency position as at 30 June 2013 30 June 2013 1 to 3 3 months 1 to 5 Above Non- interest Demand months to 1 year years 5 years bearing Total US$ US$ US$ US$ US$ US$ US$ Assets Balance with banks and cash 33 275 341 112 244 315 - - - - 145 519 656 Money market assets 41 560 230 107 529 265 - 6 959 990 - - 156 049 485 Advances 530 852 358 878 061 56 556 907 168 444 778 66 869 113 - 823 601 217 Other assets 1 275 121 13 163 159 - - - 16 578 279 31 016 559 Investment in equities - - - 7 566 111 - 9 184 303 16 750 414 Investment properties - - - - - 2 745 000 2 745 000 Property and equipment - - - - - 51 677 600 51 677 600 Deferred taxation - - - - - 888 582 888 582 Intangible assets - - - - - 5 310 044 5 310 044 Total assets 606 963 050 233 814 800 56 556 907 182 970 879 66 869 113 86 383 808 1 233 558 557 Liabilities and equity Deposits Other liabilities Current tax payable Equity and reserves Total equity and liabilities Interest rate repricing gap Cumulative gap 506 507 054 - - - 506 507 054 100 455 996 100 455 996 341 124 434 - - - 341 124 434 (107 309 634 ) (6 853 638) 183 536 796 - - - 183 536 796 (126 979 889) (133 833 527) 86 999 980 - - - 86 999 980 95 970 899 (37 862 628) 5 521 407 - - 6 354 212 - 216 142 - 103 298 532 5 521 407 109 868 886 61 347 706 (23 485 078) 23 485 078 - 1 123 689 671 6 354 212 216 142 103 298 532 1 233 558 557 Underlying currency Other foreign ZAR GBP currencies in US$ Assets Balances with banks and cash 71 063 233 1 666 111 2 614 842 Advances 272 826 6 045 393 738 Other Assets 1 362 986 16 113 83 728 Investments - - 143 643 Property and equipment 1 284 224 - 150 402 Total assets 73 983 269 1 688 269 3 386 353 Liabilities Deposits Other liabilities Total liabilities Net position Foreign Currency Position as at 31 December 2012 Underlying currency Other foreign ZAR GBP currencies in US$ Assets Balances with banks and cash 139 535 403 1 606 468 2 621 618 Advances 10 515 955 159 073 (615 340) Money market assets 53 734 847 - 4 663 674 Other Assets 9 874 699 27 620 48 290 Investments - - 143 642 Property and equipment - - 76 109 Total assets 213 660 904 1 793 161 6 937 993 Liabilities Deposits Other liabilities Total liabilities Net position 252 005 317 - 252 005 317 (38 344 413) 3 761 068 38 287 3 799 355 (2 006 194) 2 005 739 7 539 2 013 278 4 924 715 285 468 975 25 926 285 494 901 (211 511 632) 284 559 923 285 482 1 402 787 780 625 171 780 796 2 605 557

December 2012 1 to 3 3 months 1 to 5 Above Non- interest Demand months to 1 year years 5 years bearing Total US$ US$ US$ US$ US$ US$ US$ Assets Balance with banks and cash 92 585 687 83 347 107 - - - - 175 932 794 Money market assets 47 007 906 9 996 987 - - - - 57 004 893 Advances 475 219 280 21 687 862 62 175 562 142 679 444 72 390 057 - 774 152 205 Other assets - 31 823 667 - - - 20 488 620 52 312 287 Investment in equities - - - - - 172 206 172 206 Investment properties - - - - - 2 745 000 2 745 000 Property and equipment - - - - - 46 698 149 46 698 149 Deferred taxation - - - - - 4 917 190 4 917 190 Intangible assets - - - - - 1 175 445 1 175 445 Total assets 614 812 873 146 855 623 62 175 562 142 679 444 72 390 057 76 196 610 1 115 110 169 Liabilities and equity Deposits 630 194 168 159 130 548 83 996 574 124 723 283 Other liabilities - - - - Current tax payable - - - - Equity and reserves - - - - Total Equity and liabilities 630 194 168 159 130 548 83 996 574 124 723 283 Interest rate repricing gap (15 381 295) (12 274 925) (21 821 012) 17 956 161 Cumulative gap 24.8. (15 381 295) (27 656 220) (49 477 232) (31 521 071) 5 384 681 - - 11 863 027 - 4 526 282 - 95 291 606 5 384 681 111 680 915 67 005 376 (35 484 305) 35 484 305 - 1 003 429 254 11 863 027 4 526 282 95 291 606 1 115 110 169 -

CBZ Bank/ZimSwitch In-Store ATM STATEMENT OF COMPLIANCE Right In Your Store!

convenience for its valuable customers by placing ATMs in select

Based on the information set out in this corporate governance statement, the Board believes that throughout the accounting period under review, thein Bank complied with the requisite regulatory requirements. CBZ Bank partnership with SparkATM Systems is creating more As at 30 June 2013 the Bank wasthe not involved inmake any material litigation, merchant locations across country. So your life easier by dispute or arbitration proceedings which may have had a significant effectusing on its financial position. regularly the accessible CBZ Bank/ZimSwitch In-Store ATMs.

EXCHANGE RATE RISK This risk arises from the changes in exchange rates and originates from mismatches between the values of assets and liabilities denominated in different currencies and can lead to losses if there is an adverse movement in exchange rate where open positions, either spot or forward, are taken for both on and off statement of financial position transactions. There is oversight at CBZ Group Board level through the Group Board Risk Management Committee which covers ALCO processes by way of strategic policy and benchmarking reviews and approval. Management ALCO which is held on a monthly basis reviews performance against set benchmarks embedded under acceptable currencies, currency positions as well as stop loss limits. Derivative contracts with characteristics and values derived from underlying financial instruments, exchange rates which relates to futures, forwards, swaps and options can be used to mitigate exchange risk. The Bank had no exposure to derivative transactions under the reporting period. At 30 June 2013, if foreign exchange rates at that date had weakened or strengthened by 5 percentage points with all other variables held constant, post tax profit for the period would have been US$826 924 higher or lower respectively than the reported position. This arises as a result of the increase or decrease in the fair value of the underlying assets and liabilities denominated in foreign currencies. The foreign currency position for the Bank as at 30 June 2013 is as below:

10407VS

CBZ Bank/ZimSwitch In-Store ATM Right In Your Store!

CBZ Bank in partnership with SparkATM Systems is creating more convenience for its valuable customers by placing ATMs in select merchant locations across the country. So make your life easier by regularly using the accessible CBZ Bank/ZimSwitch In-Store ATMs.

Foreign currency position as at 30 June 2013 Position expressed in US$ Other foreign Total USD ZAR GBP currencies Assets Balances with banks and cash 145 519 656 133 210 929 7 151 233 2 542 652 2 614 842 Money market assets 156 049 485 156 049 485 - - Advances 823 601 217 823 170 799 27 455 9 225 393 738 Other Assets 31 016 559 30 771 081 137 160 24 590 83 728 Investment in equities 16 750 414 16 606 771 - - 143 643 Investment properties 2 745 000 2 745 000 - - Property and equipment 51 677 600 51 397 964 129 234 - 150 402 Deferred taxation 5 310 044 5 310 044 - - Intangible assets 888 582 888 582 - - Total Assets 1 233 558 557 1 220 150 655 7 445 082 2 576 467 3 386 353 Liabilities and Equity Deposits 1 123 689 671 1 093 747 476 Other liabilities 6 354 212 6 350 024 Current tax payable 216 142 216 142 Equity and reserves 103 298 532 103 298 532 Total Equity and Liabilities 1 233 558 557 1 203 612 174 28 727 305 2 609 - - 28 729 914 434 265 1 408 - - 435 673 780 625 171 780 796

10407VS

Access to services is not limited to CBZ Bank customers only, VISA and ZimSwitch enabled ATM cards are also accepted.
Head Oce: 3rd Floor, Union House, 60 Kwame Nkrumah, P O Box 3313, Harare, Tel: (04) 748050/79, 780880-4 798915, 756233-5, Fax: (04) 758077, Email: info@cbz.co.zw, Website: www.cbz.co.zw

Unaudited Financial Results

14

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS

for the Half Year Ended 30 June 2013

LIFE LIMITED

Statement of Comprehensive Income

for the half year ended 30 June 2013 Unaudited Unaudited Notes 30 June 2013 30 June 2012 US$ US$

Notes to The Financial Statements

For the half year ended 30 June 2013 1. INCORPORATION AND ACTIVITES Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 271 332 596 - 271 928 436 690 14 928 20 619 604 297 1 076 534 28 909 155 577 395 4 376 160 348 137 224 14 432 11 580 245 534 408 770 29 356

The company offers life insurance services and is incorporated in Zimbabwe. Gross premium income 3 941 752 1 738 601 Reinsurance (96 879) (156 080) Net written premium 3 844 873 1 582 521 2. OTHER INCOME Net commission (295 483) (194 397) Net claims (679 502) (121 838) Short term money markets interest Technical profit 2 869 888 1 266 286 Bank interest Operating expenditure 3 (1 076 534) (408 770) Sundry Income Underwriting profit 1 793 354 857 516 Other income 2 271 928 160 348 3. OPERATING EXPENDITURE Transfer to life fund (164 346) (630 614) Profit before taxation 1 900 936 387 250 Administration expenses Taxation (7 210) (5 486) Audit fees Profit for the half year after tax 1 893 726 381 764 Depreciation and ammortisation Staff costs Other comprehensive income - Total comprehensive income 1 893 726 381 764 Directors remuneration (included in staff costs) Fees for services as Directors

Statement of Financial Position

as at 30 June 2013 Unaudited Audited Notes 30 June 2013 31 Dec 2012 US$ US$

4. BALANCES WITH BANKS AND CASH

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 241 574 257 793

Cash at bank ASSETS Balances with banks and cash 4 241 574 257 793 5. INVESTMENTS Money market assets 5.1 5 717 598 4 361 394 Insurance assets 6 750 144 134 758 5.1 Money market assets Other receivables 132 217 25 439 Property and equipment 8 169 120 134 670 Money market portfolio analysis: Intangible assets 7 2 094 4 371 Held for trading Taxation 1 794 724 TOTAL ASSETS 7 014 541 4 919 149 5.2 Maturity analysis LIABILITIES Insurance liabilities Other liabilities 9.4 10 1 703 025 714 606 1 538 283 677 682

5 717 598

4 361 394

Demand 71 894 Between 1 months and 3 months 4 187 450 Between 3 months and 1 year 1 458 254 Between 1 and 5 years TOTAL LIABILITIES 2 417 631 2 215 965 5 717 598 6. INSURANCE ASSETS EQUITY AND RESERVES Share capital 11.2 2 2 Deferred acquisition costs 214 380 Share premium 1 388 012 1 388 012 Insurance premium receivables 535 764 Retained earnings 3 208 896 1 315 170 750 144 TOTAL EQUITY & RESERVES 4 596 910 2 703 184 7. TOTAL LIABILITIES, EQUITY AND RESERVES 7 014 541 4 919 149 INTANGIBLE ASSETS Cost Opening balance Additions Closing balance

95 049 3 406 120 753 414 106 811 4 361 394 134 758 134 758

Computer Total Total Software June 2013 Dec 2012 US$ US$ US$ 4371 4 371 3 679 - - 692 4 371 4 371 4 371 - 2 277 2 277 2 094 4 371

Statement of changes in equity

for the half year ended 30 June 2013 Amortisation (Accumulated Opening balance - losses)/ Charge for the half year 2 277 Share Capital Share Premium Retained Earnings Total Closing balance 2 277 US$ US$ US$ US$ Carrying amount 2 094 2012 Balance at the beginning of period 2 1 388 012 (217 609) 1 170 405 8. PROPERTY AND EQUIPMENT Computers, furniture Total comprehensive income - - 381 764 381 764 Motor vehicles and other equipment Balance at 30 June 2012 2 1 388 012 164 155 1 552 169 US$ US$

June 2013 Dec 2012 Total Total US$ US$ Cost 2013 Opening balance 80 999 84 653 165 652 102 310 Balance at 1 January 2013 2 1 388 012 1 315 170 2 703 184 Additions - 52 793 52 793 63 341 Total comprehensive income - - 1 893 726 1 893 726 Closing balance 80 999 137 446 218 445 165 651

Balance at 30 June 2013

1 388 012

3 208 896

4 596 910

Accumulated depreciation Opening balance 20 095 Charge for the half year 8 100 Closing balance 28 195 Net Book Value 52 804 10 888 10 242 21 130 116 316 30 983 18 342 49 325 169 120 5 121 25 860 30 981 134 670

Statement of Cash flows

for the half year ended 30 June 2013 CASH FLOWS FROM OPERATING ACTIVITIES Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 387 250 11 579 284 340 346 274 1 029 443 11 293 (15 302) 77 571 (1 081 560) (1 007 998) (7 859) 13 586 (42 657) (42 657) (29 071) 117 722 88 651

9. 9.1

INSURANCE CONTRACT PROVISIONS Provision for unearned premium Unearned premium reserve Unearned at 1 January 2013 Written premiums Earned during the period Unearned at 30 June 2013 Gross Reinsurance Net US$ US$ US$ 902 798 3 941 752 (3 899 977) 944 573 - 143 582 (96 879) 46 703 902 798 3 798 170 (3 803 098) 897 870

Profit before taxation 1 900 936 Non cash items: Depreciation 18 342 Amortisation 2 277 Unearned premium 86 736 Claims incurred but not yet reported 78 006 Operating profit before changes in operating assets and liabilities 2 086 297 Changes in operating assets and liabilities Insurance assets Receivables Other liabilities Money market assets Corporate tax paid Net cash inflow from operating activities (615 386) (106 778) 36 925 (1 356 204) (2 041 443) (8 280) 36 574

Unaudited Unaudited June 2013 June 2012 US$ US$ 9.2 Commissions Commission paid (495 958) (243 102) Commission received 44 688 48 705 Deferred acquisition costs 155 787 Net commission (295 483) (194 397) 9.3 Claims Gross Reinsurance Net US$ US$ US$ 9.3.1 Net claims Gross claims incurred 679 502 - 679 502

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (52 793) Purchase of intangible assets Net cash outflow from investing activities (52 793) NET INCREASE/DECREASE IN BALANCES WITH BANKS AND CASH Balances with banks and cash at the beginning of the period Balances with banks and cash at end of the half year (16 219) 257 793 241 574

9.3.2

Unaudited Audited June 2013 Dec 2012 US$ US$ Provision for IBNR claims IBNR claims provision at 1 January 635 485 138 962 Movement for the half year 78 006 496 523 Closing IBNR provision 713 491 635 485 Insurance liabilities Reinsurance payables at 1 January Gross unearned premium reserve Provision for incurred but not reported claims Guaranteed Education Fund Closing Balance OTHER LIABILITIES Inter-company and other payables SHARE CAPITAL Authorised share capital 20 000 ordinary shares of US$1 20 000 20 000 - 897 870 713 491 91 664 1 703 025 714 606 902 798 635 485 1 538 283 677 682

9.4

10. 11. 11.1 11.2

Issued share capital 2 Ordinary shares of US$1 each

2 2

12. TAXATION 12.1 Analysis of charge for the year Current income tax charge 7 210 21 958 Deferred tax - Income tax 7 210 21 958 12.2 TAX RATE RECONCILIATION Notional tax Aids levy Permanent differences Effective tax rate % 25 0.75 (25.35) 0.40 % 25 0.75 (24.34) 1.41

Unaudited Financial Results

15

for the half year ended 30 June 2013

UNAUDITED FINANCIAL RESULTS DATVEST UNAUDITED FINANCIAL RESULTS for the Half30 Year Ended for the Half Year Ended 30 June 2013 for the Half Year Ended June 2013 30 June 2013 INSURANCE UNAUDITED FINANCIAL RESULTS
Investing with Confidence
A member of the CBZ Group

Statement of Comprehensive Income

For the half year ended 30 June 2013 Unaudited Unaudited for the half year ended 30 June 2013 Unaudited Unaudited Notes 30 June 2013 30 June 2012 30 June 2013 30 June 2012 US$ US$ US$ US$ Interest income 2 29 360 14 629 Gross premium income 4 913 719 4 680 958 Reinsurance (3 136 529) (3 349 281) Net written premium 1 777 190 1 331 677 Unearned premium (348 290) (180 426) Net earned premium 1 428 900 1 151 251 Net commission 100 155 457 252 Net Claims (483 310) (629 976) Technical profit 1 045 745 978 527 Operating expenditure (675 479) (755 423) Underwriting profit 370 266 223 104 Investment income 79 865 29 672 Other income 4 625 7 303 Impairment allowance 26 352 Profit before taxation 481 108 260 079 Taxation (96 581) (102 757) Profit after taxation 384 527 157 322 Other comprehensive income - Total comprehensive income 384 527 157 322
Non-interest income 3 1 056 806 612 247 Total income 1 086 166 626 876 Operating expenditure 4 (827 918) (788 272) Finance costs (13 783) (24 044) Profit/(loss) for the half year before taxation 244 465 (185 440) Taxation 5.1 (62 669) 54 727 Profit/(loss)for the half year after tax 181 796 (130 713)

Statement of Comprehensive Income

Statement of Financial Position

As at 30 June 2013
Notes Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$

Statement of Financial Position

ASSETS Balances with banks and cash 6 219 648 217 927 Money market assets 7 599 789 221 594 Loans and advances 8 - 318 095 Other assets 9 277 333 235 515 Investment securities 10 550 099 626 485 Investment properties 11 85 000 85 000 Property and equipment 12 84 714 75 041 Intangible assets 13 279 739 343 196 Current taxation 15 800 15 800 Deferred taxation 2 226 64 895 TOTAL ASSETS 2 114 348 2 203 548 LIABILITIES Other liabilities 70 252 624 848 Borrowings - 330 000 Provisions 160 803 111 722 TOTAL LIABILITIES 231 055 1 066 570 EQUITY AND RESERVES Share capital 14 63 005 62 005 Share premium 1 924 944 1 361 425 Revenue reserves (104 656) (286 452) TOTAL EQUITY AND RESERVES 1 883 293 1 136 978 TOTAL LIABILITIES, EQUITY AND RESERVES 2 114 348 2 203 548

as at 30 June 2013 Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ ASSETS Non- current assets Intangible assets 169 920 216 752 Property and equipment 102 198 100 113 Investment properties 140 000 140 000 Listed investments 317 988 256 770 Deferred taxation 96 394 132 138 Total non-current assets 826 500 845 773 Technical assets Reinsurance unearned premium reserve Deferred acquisition costs Reinsurance outstanding claims Reinsurance receivables Total technical assets 2 095 425 416 391 499 738 1 203 052 4 214 606 1 060 418 236 684 1 240 933 946 503 3 484 538

Statement of Changes in Equity

For the half year ended 30 June 2013

Share Share Revenue capital premium reserves Total US$ US$ US$ US$ 2012 Balance at the beginning of the year 61 005 977 425 (132 473) 905 957 Total comprehensive income - (130 713) (130 713) Rights issue 1 000 384 000 - 385 000 Balance at 30 June 2012 62 005 1 361 425 (263 186) 1 160 244

2013 Balance at 1 January 2013 62 005 1 361 425 (286 452) 1 136 978 Total comprehensive income 181 796 181 796 Rights Issue 1 000 563 519 564 519 Balance at 30 June 2013 63 005 1 924 944 (104 656) 1 883 293

Current assets Inventory 20 135 11 069 Insurance receivables 2 210 893 1 087 229 Other receivables 130 263 184 243 Money market assets 606 121 860 064 Balances with banks and cash 392 925 314 776 Total current assets 3 360 337 2 457 381

Statement of Cash Flows

For the half year ended 30 June 2013

CASH FLOWS FROM OPERATING ACTIVITIES

Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 244 465 73 665 (129 860) - 188 270 318 095 (378 195) (41 818) 206 246 9 923 49 081 163 332 - 351 602 - (18 099) (1 782) (19 881) (185 440) 5 207 90 911 1 371 (87 951) (30 649) (118 410) (17 409) 135 747 (180 821) 21 590 171 690 83 739 3 749 (10 412) (78 008) (84 671)

Profit/(loss) before taxation Non cash items: Depreciation and amortisation TOTAL ASSETS 8 401 443 6 787 692 Fair value adjustment Profit on sale of property and equipment Operating profit before changes in operating assets and liabilities EQUITY AND RESERVES

Share capital 50 500 Share premium 589 807 Retained earnings 915 900 Total equity and reserves 1 556 207 LIABILITIES Non-current liabilities Deferred taxation 65 383 Loans - Total non-current liabilities 65 383 Technical liabilities Gross unearned premium reserve Gross outstanding claims Unearned commission reserve IBNR Total technical liabilities 3 325 707 898 488 554 775 88 860 4 867 830

50 500 589 807 531 373 1 171 680

Changes in operating assets and liabilities Advances Money market assets Other assets Net change in investment Other liabilities Provisions Corporate tax paid Net cash inflow from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds on disposal of property and equipment Purchase of property and equipment Purchase of intangible assets Net cash outflow from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Rights issue Repayment of borrowings Net cash outflow from financing activities NET INCREASE/(DECREASE) IN BALANCES WITH BANKS AND CASH Balances with banks and cash at the beginning of period Balances with banks and cash at end of the half year

77 900 13 135 91 035 1 942 410 1 722 748 243 478 141 473 4 050 109 1 058 715 238 838 177 315 1 474 868

(330 000) (330 000) 1 721 217 927 219 648

(45 000) (45 000) (45 932) 170 532 124 600

Current liabilities Reinsurance payables 1 649 030 Other payables 210 694 Taxation 52 299 Total current liabilities 1 912 023

Notes to The Financial Results

For the half year ended 30 June 2013
1. INCORPORATION AND ACTIVITIES CBZ Asset Management (Private) Limited, incorporated in Zimbabwe, is a registered asset management company which is governed by the Collective Investments Schemes Act (1997) and the Asset Management Act [Chapter 24:26] (2004). The main activity is fund management and the provision of unit trusts. The Company is a wholly owned subsidiary of CBZ Holdings Limited, incorporated in Zimbabwe. Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 9. OTHER ASSETS Prepayments Management fees receivable Sundry debtors Unaudited Unaudited 30 June 2013 30 June 2012 US$ US$ 112 431 163 702 1 200 277 333 96 007 138 308 1 200 235 515

TOTAL LIABILITIES 6 845 236 5 616 012 TOTAL LIABILITIES, EQUITY AND RESERVES 8 401 443 6 787 692

10. INVESTMENTS SECURITIES 2. INTEREST INCOME Listed investments 550 099 626 485 Current accounts 152 17 Unlisted investments - Money market 24 353 3 186 550 099 626 485 Staff loans 4 855 11 426 29 360 14 629 At cost - for the half year ended 30 June 2013 At fair value 550 099 626 485 3. NON INTEREST INCOME 550 099 626 485 Share Share Retained Total Net income from trading securities 68 357 8 360 capital premium earnings Fair value adjustments-equity investments 129 860 (90 911) Portfolio analysis US$ US$ US$ US$ Commission and fee income 848 416 633 217 Trading 550 099 626 485 Loss on sale of assets - (1 371) Available for sale - Other operating income 10 173 62 952 550 099 626 485 June 2012 1 056 806 612 247 Balance at 1 Junuary 2012 50 500 589 807 303 605 943 912 11. INVESTMENT PROPERTIES 4. OPERATING EXPENDITURE Opening balance 85 000 61 750 Total comprehensive income - - 157 322 157 322 Staff costs 473 048 461 506 Fair value adjustments - 23 250 Balance as at 30 June 2012 50 500 589 807 460 927 1 101 234 Administration expenses 258 705 299 059 Closing balance 85 000 85 000 Audit fees 22 500 22 500 Depreciation 8 426 5 207 Amortisation of intangible assets 65 239 The carrying amount of the investment property is the fair value of the property as determined by a registered June 2013 827 918 788 272 independent appraiser having an appropriate recognised professional qualification and recent experience in the Remuneration of directors and key management location and category of the property being valued. A valuation was carried out at the year ended 31 December personnel (included in staff costs) 2012. The rental income derived from the investment property amounted to US$23 250 without direct operating Balance at 1 January 2013 50 500 589 807 531 373 1 171 680 Salaries and other benefits 111 774 74 846 expenses. Total comprehensive income - - 384 527 384 527 111 774 74 846 12. PROPERTY AND EQUIPMENT Balance at 30 June 2013 50 500 589 807 915 900 1 556 207 5. TAXATION Motor Computer and Current income tax and deferred tax on temporary differences have been fully provided for. Deferred tax is vehicles equipment 30 June 2013 31 Dec 2012 calculated using the liability method. Cost US$ US$ US$ US$ Unaudited Unaudited 30 June 2013 30 June 2012 Opening balance 30 000 144 225 174 225 169 158 US$ US$ Additions - 18 099 18 099 10 412 5.1 Analysis of tax charge in respect for the half year ended 30 June 2013 Unaudited Unaudited Disposals (5 345) of the profit for the half year Closing balance 30 000 162 324 192 324 174 225 30 June 2013 30 June 2012 Current income tax charge - Deferred tax 62 669 (54 727) US$ US$ Accumulated depreciation Income tax expense 62 669 (54 727) CASH FLOWS FROM OPERATING ACTIVITIES Opening balance 9 167 90 017 99 184 85 521 Charge for the period 1 250 7 176 8 426 13 889 5.2 Tax rate reconciliation % % Profit before taxation 481 108 260 079 Disposals - (226) Notional Tax 25.00 25.00 Non cash items: Closing balance 10 417 97 193 107 610 99 184 Aids levy 0.75 0.75 Depreciation 22 017 21 628 Permanent differences (0.11) 3.76 Net Book Value 19 853 65 131 84 714 75 041 Effective tax rate 25.64 29.51 Amortisation 46 832 41 477

Statement of Changes in Equity

Statement of Cash Flows

Fair value adjustment Unearned premium Deferred acquisition Claims incurred but not yet reported Operating profit before changes in operating assets and liabilities Changes in operating assets and liabilities Receivables Money market assets Payables Corporate tax paid Net cash inflow from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Net change in investments Net cash outflow from investing activities CASHFLOWS FROM FINANCING ACTIVITIES Net cash flow to/from financing activities NET INCREASE/DECREASE IN BALANCES WITH BANKS AND CASH Balances with banks and cash at the beginning of the period Balances with banks and cash at end of the half year

(54 090) 348 290 131 590 (52 613) 923 134

28 737 180 426 (135 236) 397 111

(594 105) 253 943 (275 223) 307 749 (198 369) 109 379

(1 386 951) (506 929) 1 704 482 207 713 (75 392) 103 449

6. BALANCES WITH BANKS AND CASH Balance with banks and cash 219 648 Cash 471 Current accounts 219 177 7. MONEY MARKET ASSETS Fixed deposits 599 789 8. LOANS AND ADVANCES Loans - During the first half of the 2013 financial year, the Company successfully negotiated loan financing for staff with CBZ Bank which resulted in a transfer of all staff loans to CBZ Bank. 8.1 Maturity analysis Between 3 months and 1 year Between 1 and 5 years - - -

217 927 175 217 752 221 594 318 095

28 674 289 421 318 095

13. INTANGIBLE ASSETS Computer software At cost Accumulated amortisation Movement in intangible assets: Opening balance Additions Amortisation charge Closing balance 14. SHARE CAPITAL Authorised 1 000 000 000 ordinary shares of US$ 0.0001each Issued and fully paid 630 050 000 ordinary shares of US$ 0.0001each 15. NOMINEE STATEMENT OF FINANCIAL POSITION Assets Balance with banks/ call deposits Money market assets Investment securities Investment properties Total assets Liabilities Unit trust funds Portfolio management funds Total liabilities

Unaudited Audited 30 June 2013 31 Dec 2012 US$ US$ 399 344 (119 605) 279 739 343 196 1 782 (65 239) 279 739 397 562 (54 366) 343 196 319 554 78 008 (54 366) 343 196

(24 102) (7 129) (31 231)

(22 352) (5 052) (27 404)

Maturity analysis is based on the remaining period from 30 June 2013 to contractual maturity.

63 005 1 407 059 67 227 721 65 517 254 1 953 000 136 105 034 1 406 276 134 698 758 136 105 034

62 005 1 052 902 56 610 181 50 970 904 2 467 000 111 100 987 1 588 785 109 512 202 111 100 987

- 78 149 314 776 392 925 Unaudited Financial Results

104 917 139 830 244 747

16

8.2 Loans to directors, key management and employees Loans to directors and key management Included in advances are loans to executive directors and key management: Opening balance 127 243 Advances made during the period 4 013 Repayment during the period (131 256) Balance at half year end - Loans to employees Included in advances are loans to employees: Opening balance 190 852 Advances made during the period - Repayments during the period (190 852) Balance at half year end -

125 799 40 309 (38 865) 127 243 196 982 100 400 (106 530) 190 852

for the half year ended 30 June 2013