Access Bank Botswana : CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Bank Botswana Limited

Consolidated and separate financial statements

for the year ended 31 December 2022

Access Bank Botswana Limited

Consolidated and separate annual financial statements for the year ended 31 December 2022

Contents	Page
General information	2
Directors' report	3
Directors' responsibilities and approval	4
Independent auditor's report	5 - 9
Consolidated and separate statements of financial	10
position
Consolidated and separate statements of profit or loss	11
and other comprehensive income
Consolidated and separate statements of changes in	12
equity
Consolidated and separate statements of cash flows	13
Accounting policies	15
Notes to the annual financial statements	33-92

1

Access Bank Botswana Limited

Consolidated and separate annual financial statements for the year ended 31 December 2022

General information
Board of Directors
Mrs. Lorato Nthando Mosetlhanyane	Motswana (Chairperson)
Mr. Mooketsi Jacob Motlhabane	Motswana
Mr. Joshua Benjamin Galeforolwe	Motswana
Mr. Boiki Matema Wabo Tema	Motswana
Mrs. Ntoti Mosetlhe	Motswana
Mr. John Bosco Sebabi	Motswana
Mr. Robert Michael Yorwerth Giles	British
Mr. Oluseyi Kolawole Kumapeyi	Nigerian
Ms. Lynda Mataka**	Zambian
Mr. Kgotso Bannalotlhe*	Motswana
Mrs. Ratang Icho-Molebatsi*	Motswana
*Executive director
**appointed 1 July 2022
Company Secretary
Mrs. Thato Mmile
Management
Mr. Kgotso Bannalotlhe	Managing Director
Mrs. Musonda Chishimba	Deputy Managing Director
Mrs. Ratang Icho-Molebatsi	Finance Director
Mrs. Segametsi Sethantsho	Chief Risk Officer
Mr. David Reetsang	Chief Operating Officer (Acting)
Mrs. Pauline Motswagae	Head of Commercial Banking
Mrs. Kagiso Grace Setlhare-Mankanku	Head of Retail Banking
Mrs. Prescilla Gower	Head of Human Capital
Mr. Ngoni Chikore	Chief Information Officer
Mrs. Polelo Kilner	Head of Marketing and Communications
Ms. Ontibile Baakile	Head of Internal Audit
Mr. Allec Tainton	Head of Conduct and Compliance
Mrs. Thato Mmile	Head of Legal & Company Secretary
Administration
Registered Office:	Access House
	Plot 62433
	Fairgrounds Office Park
	Gaborone
	Botswana
Telephone:	3674300
Fax:	3902131
Auditors	Main Bankers
PriceWaterHouseCoopers	Standard Bank of South Africa Limited
Plot 64289	Standard Chartered Bank New York
Tlokweng Road	Citibank New York
P O Box 1519	Commerz Bank
Gaborone	First Rand

2

Access Bank Botswana Limited

Consolidated and separate annual financial statements for the year ended 31 December 2022

Directors' report

The directors have pleasure in submitting the financial statements of Access Bank Botswana Limited for the year ended 31 December 2022, which comprise the statements of financial position as at 31 December 2022, the statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes to the financial statements, as set out on pages 12 to 84, and other information contained in this report.

Activities

The Bank was licensed as a commercial bank on 28 August 2009 and is trading as "BancABC" until October 2021. On 11 October 2021, the Bank ceased trading as a subsidiary of ABC Holdings Limited and became a subsidiary of Access Bank PLC, following a shareholder transaction where Access Bank PLC acquired a majority 78.1% shareholding in the Bank from ABC Holdings Limited. The Bank now trades as Access Bank Botswana Limited. Its principal activities include treasury activities, corporate and small medium enterprise (SME) banking, trade finance, investment banking and retail banking, which includes micro lending and emerging business banking. The Bank registered an insurance agency on 18 January 2012. The insurance agency was registered as Kaleu Pty Ltd, trading as Access Insurance Agency. Kaleu Pty Ltd is 100% owned

by the Bank.

Stated capital

The issued share capital of the bank comprised of 725 000 000 (2021: 725 000 000) ordinary shares at the end of the year.

Capital adequacy and dividend declaration

A dividend of 20.7 thebe (2021: 2.2 thebe) per share was declared and paid during the year 2022. This dividend is considered final and there will be no further dividends for the 2022 financial year.

Directorate

During the year, Ms. Lynda Mataka was appointed to the Board on 1 July 2022 as an Independent Non-Executive Director.

Events after the reporting date

Access Bank Botswana Limited has a 100% owned subsidiary, Kaleu Proprietary Limited t/a Access Insurance Agency ("the Subsidiary"). Due to continued growth over the years, the Subsidiary has had to reassess its capital requirements by reference to the minimum regulatory capital as promulgated by the Insurance Industry Regulations. As such, the Subsidiary resolved to raise additional capital through issuance of one additional share for P2 million per share. The directors of the Bank resolved to purchase the one additional share through a Resolution of the Board of Directors, dated 13th May 2022.

The transaction was completed on the 27th of February 2023 when the cash payment of P2 million was made to Kaleu (Pty) Ltd. From that date, the issued number of shares in Kaleu (Pty) Limited increased from 100 to 101, whilst the total value of the investment in subsidiary increased from P100 to P2,000,100.

Mrs. Thato Mmile

Company Secretary

3

Access Bank Botswana Limited

Consolidated and separate annual financial statements for the year ended 31 December 2022

Directors' responsibilities and approval

The directors are required in terms of the Companies Act, 2003 to maintain adequate accounting records and are responsible for the content and integrity of the consolidated and separate annual financial statements and related financial information included in this report. It is their responsibility to ensure that the consolidated and separate annual financial statements fairly present the state of affairs of the group as at the end of the financial year and the results of its operations and cash flows for the year then ended, in conformity with International Financial Reporting Standards and the Companies Act, 2003. The external auditors are engaged to express an independent opinion on the consolidated and separate annual financial statements.

The consolidated and separate annual financial statements are prepared in accordance with International Financial Reporting Standards and the Companies Act, 2003 and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the group and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the board of directors sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the group and all employees are required to maintain the highest ethical standards in ensuring the group's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the group is on identifying, assessing, managing and monitoring all known forms of risk across the group. While operating risk cannot be fully eliminated, the group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The group's system of controls includes controls over the security of the website and specifically establishing and controlling the process for electronically distributing annual financial statements and other financial information to shareholders.

The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the consolidated and separate annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss.

The directors have reviewed the group's cash flow forecast for the year to December 31, 2022 and, in light of this review and the current financial position, they are satisfied that the group has or had access to adequate resources to continue in operational existence for the foreseeable future.

The external auditors are responsible for independently auditing and reporting on the group's consolidated and separate annual financial statements. The consolidated and separate annual financial statements have been examined by the group's external auditors and their report is presented on pages 5 to 9.

The consolidated and separate annual financial statements set out on pages 10 to 92, which have been prepared on the going concern basis, were approved by the board of directors on March 27, 2023 and were signed on their behalf by:

Mrs. Lorato Nthando Mosetlhanyane	Mr. Kgotso Bannalotlhe
Chairperson	Managing Director

4