Download as pdf or txt
Download as pdf or txt
You are on page 1of 68

N K OF

BA ZI

M
R E S RVE

BA
E

BWE
2019
MICROFINANCE
ANNUAL REPORT

“Microfinance active in communities”

Tel: +263 242 703000 /+263 867 700 0477


80 Samora Machel Avenue, Harare, Zimbabwe
7$%/(2)&217(176

*29(5125¶6)25(:25'

',5(&725¶6)25(:25'

&+$37(529(59,(:2)7+(0$&52(&2120,&(19,5210(17

&+$37(5'(9(/230(176,17+(0,&52),1$1&(6(&725

&+$37(53(5)250$1&(2)7+(0,&52),1$1&(6(&725

&+$37(5 287/22.

$33(1',&(6

APPENDIX 1: FUNCTION AND ORGANIZATION OF BANK SUPERVISION DIVISION .................................. 55

APPENDIX 2: SUPERVISORY METHODOLOGIES FOR THE MICROFINANCE ............................................. 57

APPENDIX 3: REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2019 ........................... 59

2




0,66,2167$7(0(17
9,6,21

72%($75$16)250$7,9($1'5(63216,9(&(175$/%$1.




0,66,21
9,6,21
7RVDIHJXDUGWKHVWDELOLW\DQGVDIHW\RIWKH=LPEDEZHDQILQDQFLDOV\VWHPDQGWR

SURPRWHLQFOXVLYHJURZWK




9$/8(6

3

*29(5125¶6)25(:25'

 *OREDOO\ PLFURILQDQFH LQVWLWXWLRQV FRQWLQXH WR SOD\ D FULWLFDO UROH LQ
SURPRWLQJ HFRQRPLF JURZWK DQG GHYHORSPHQW DV ZHOO DV HPSOR\PHQW
FUHDWLRQ WKURXJK VXSSRUWLQJ PLFURHQWUHSUHQHXUV DQG VPDOO EXVLQHVVHV ,Q
WKLV UHJDUG PLFURILQDQFLQJ KDV FRQWLQXHG WR SOD\ DQ LPSRUWDQW UROH LQ
EUHDNLQJWKHF\FOHRISRYHUW\DQGLPSURYLQJWKHOLYHOLKRRGVDQGVWDQGDUGRI
OLYLQJRIWKHPDUJLQDOL]HGDQGORZLQFRPHKRXVHKROGVSDUWLFXODUO\ZRPHQ
 ,QUHFRJQLWLRQRILWVLPSRUWDQFHLQHFRQRPLFGHYHORSPHQWDQGDWWDLQPHQWRI
VRPH RI WKH 6XVWDLQDEOH 'HYHORSPHQW *RDOV 6'*V  PLFURILQDQFH ZDV
LGHQWLILHGDVRQHRIWKHPDMRU SLOODUVRIWKH=LPEDEZH1DWLRQDO)LQDQFLDO
,QFOXVLRQ 6WUDWHJ\   DQG D GULYHU RI VXVWDLQDEOH HFRQRPLF
GHYHORSPHQW
 7KHPLFURILQDQFHVHFWRULQ=LPEDEZHKDVFRQWLQXHGWRJURZRYHUWKH\HDUV
ZLWKFRPPHUFLDOEDQNVDQGEXLOGLQJVRFLHWLHVYHQWXULQJLQWRPLFURILQDQFH
LQRUGHUWRVHUYHWKHXQGHUVHUYHGDQGPDUJLQDOL]HGJURXSVDGHYHORSPHQW
WKDWHQKDQFHVILQDQFLDOLQFOXVLRQLQLWLDWLYHVEHLQJVSHDUKHDGHGE\WKH%DQN
 7KH DGRSWLRQ RI WHFKQRORJ\ DQG GLJLWDO SURYLVLRQ RI PLFUR ILQDQFH KDV
SURYLGHGDQLPSHWXVWRPLFURILQDQFHRXWUHDFKLQFOXGLQJUHPRWHDUHDVZKHUH
HVWDEOLVKPHQWRIµEULFNDQGPRUWDU¶IDFLOLWLHVKDGEHFRPHH[WUHPHO\FRVWO\
RQ WKH EDFN RI SRRU LQIUDVWUXFWXUH LQ WHUPV RI URDGV DQG RWKHU DPHQLWLHV
6RPH PLFURILQDQFH LQVWLWXWLRQV DOVR SDUWQHUHG ZLWK PRELOH QHWZRUN
RSHUDWRUVWRRIIHUGLJLWDOEDVHGOHQGLQJSURGXFWVPRELOH

4
 7KH DGRSWLRQ RI WHFKQRORJ\EDVHG PLFURILQDQFH PHWKRGRORJLHV KDV WKXV
UHYROXWLRQL]HG WKH SURYLVLRQ RI ILQDQFLDO VHUYLFHV WR ODUJHQXPEHUV RI WKH
XQEDQNHGDQGPDUJLQDOL]HGDQGLVH[SHFWHGWRJRDORQJZD\LQIDFLOLWDWLQJ
ILQDQFLDOLQFOXVLRQRIWKHORZLQFRPHDQGXQGHUVHUYHGKRXVHKROG
 ,Q DQ HIIRUW WR EXLOG FDSDFLW\ DQG DWWDLQ WKH YLVLRQ IRU WKH JURZWK DQG
GHYHORSPHQWRIDPRUHUREXVWDQGVXVWDLQDEOHPLFURILQDQFHVHFWRUWKH%DQN
XQGHUWRRNDUHJLRQDOVWXG\WRXUWRXQGHUVWXG\WKHPLFURILQDQFHVHFWRULQ(DVW
$IULFD 6XFK H[SHULHQWLDO NQRZOHGJH LV FULWLFDO IRU WKH GHYHORSPHQW RI D
1DWLRQDO 0LFURILQDQFH 'HYHORSPHQW 6WUDWHJ\ LQ OLQH ZLWK WKH FRXQWU\¶V
YLVLRQRIµDQ8SSHU0LGGOH,QFRPH(FRQRP\E\¶
 )XUWKHUWKH%DQNFRQWLQXHGWREXLOGFDSDFLW\LQWKHVHFWRUZLWKUHVSHFWWR
ULVNPDQDJHPHQW FRPSOLDQFHFRUHFOLHQWSURWHFWLRQSULQFLSOHVDQGVRFLDO
SHUIRUPDQFH PDQDJHPHQW WKURXJK FRXQWU\ZLGH ZRUNVKRSV DQG WUDLQLQJ
SURJUDPV
 7KH%DQNDVWKHUHJXODWRU\DXWKRULW\KDVEHHQZRUNLQJRQHQVXULQJDUREXVW
DQG HQDEOLQJ UHJXODWRU\ HQYLURQPHQW ZKLFK IDFLOLWDWHV GHYHORSPHQW RI D
PRUH VXVWDLQDEOH PLFURILQDQFH VHFWRU WKDW FRQWULEXWHV PHDQLQJIXOO\ WR
HFRQRPLFGHYHORSPHQW7KHSURPXOJDWLRQRIWKH0LFURILQDQFH$PHQGPHQW
$FW1RRILQ1RYHPEHUZKLFKSURYLGHVIRUSHUSHWXDOOLFHQFHV
LV H[SHFWHG WR ERRVW FRQILGHQFH LQ WKH PLFURILQDQFH VHFWRU DV ZHOO DV
IDFLOLWDWHWKHDWWUDFWLRQRIORQJWHUPIXQGLQJLQWRWKHVHFWRU
 )XUWKHU WKH UREXVW UHJXODWRU\ DQG VXSHUYLVRU\ IUDPHZRUN LV H[SHFWHG WR
HQKDQFH FRUSRUDWH JRYHUQDQFH ULVN PDQDJHPHQW WUDQVSDUHQF\ DQG
DFFRXQWDELOLW\ZLWKLQLQGLYLGXDOPLFURILQDQFHLQVWLWXWLRQVDQGWKHVHFWRUDV
DZKROH
 ,QDQHIIRUWWREXLOGVWURQJHUILQDQFLDOO\VRXQGPLFURILQDQFHLQVWLWXWLRQVWKDW
DUHEHWWHUDEOHWRXQGHUZULWHPRUHPHDQLQJIXOEXVLQHVVWKH%DQNUHYLHZHG
WKHPLQLPXPFDSLWDOUHTXLUHPHQWVIRUPLFURILQDQFHLQVWLWXWLRQV

5
 7KHPLFURILQDQFHVHFWRULVH[SHFWHGWRFRQWLQXHRQDQXSZDUGWUDMHFWRU\LQ
WHUPVRIRXWUHDFKORDQSRUWIROLRVL]HDQGTXDOLW\DQGSURILWDELOLW\GHVSLWH
WKH&29,'SDQGHPLFZKLFKHPHUJHGWRZDUGVWKHHQGRI
 7KH%DQNZLOOFRQWLQXHWRPRQLWRUWKHGHYHORSPHQWVLQWKHVHFWRUDQGWDNH
DSSURSULDWHPHDVXUHVWRVXSSRUWWKHGHYHORSPHQWRIWKHLQGXVWU\ZKLFKLV
FULWLFDOLQWKHSURYLVLRQRIDFFHVVWRILQDQFLDOVHUYLFHVIRUWKHPDUJLQDOLVHG
KRXVHKROGVDQGFRPPXQLWLHV
 , ZRXOG OLNH WR WDNH WKLV RSSRUWXQLW\ WR WKDQN DOO WKH PLFURILQDQFH
VWDNHKROGHUVIRUWKHLUFRQWLQXHGVXSSRUWWRZDUGVGHYHORSPHQWRIDVRXQG
VXVWDLQDEOHDQGGHYHORSPHQWRULHQWHGPLFURILQDQFHVHFWRULQ=LPEDEZH,
DOVR H[WHQG P\ DSSUHFLDWLRQ WR WKH %DQN PDQDJHPHQW DQG VWDII IRU WKHLU
FRQWLQXHG GHGLFDWLRQ WR GXW\ DV ZH WUDYHUVH VXFK D G\QDPLF RSHUDWLQJ
ODQGVFDSH
'5-30$1*8'<$


6
      
',5(&725¶6)25(:25'

 7KHPLFURILQDQFHVHFWRUKDVPDLQWDLQHGDQXSZDUGWUDMHFWRU\LQWHUPVRIRXWUHDFK
WKH QXPEHU RI DFWLYH FOLHQWV DQG ZRPHQ ERUURZHUV VL]H RI ORDQ SRUWIROLR
DJJUHJDWHHTXLW\DQGSURILWDELOLW\DVWKHVHFWRUFRQWLQXHGWRPDNHLQURDGVLQWRWKH
ILQDQFLDOLQFOXVLRQVSDFH
 7KH PDLQ GULYHU RI WKH JURZWK LQ WKH PLFURILQDQFH VHFWRU ZDV WKH LQFUHDVHG
GHPDQGIRUPLFURORDQVE\PRUHPLFURVPDOODQGPHGLXPHQWHUSULVHVDVWKHORZ
LQFRPH KRXVHKROGV VRXJKW ZD\V WR ZDUG RII WKH QHJDWLYH LPSDFW RI WKH KDUVK
PDFURHFRQRPLFHQYLURQPHQW
 )XUWKHU WKH HVWDEOLVKPHQW RI PLFURILQDQFH EDQNV WKDW DUH VSHFLILFDOO\ PDQGDWHG
ZLWKHPSRZHUPHQWRI ZRPHQZKRFRQVWLWXWHWKH PDMRULW\RIWKHSRSXODWLRQLQ
=LPEDEZH DQG WKH \RXQJ SHRSOH FRQWULEXWHG WR WKH JURZWK LQ PLFURILQDQFH
RXWUHDFK
 7KHLQFUHDVHLQRXWUHDFKDOVRFDPHDJDLQVWWKHEDFNJURXQGRILQFUHDVHGDGRSWLRQ
RIWHFKQRORJLFDOSODWIRUPVWKURXJKLQQRYDWLYHGHOLYHU\FKDQQHOVZKLOHOHYHUDJLQJ
RQWKHGUDPDWLFSHQHWUDWLRQRIPRELOHWHFKQRORJ\DQGPRELOHSD\PHQWV
 7KH LQFUHDVHG LQIRUPDOLVDWLRQ DQG DWWHQGDQW JURZWK RI WKH PLFUR VPDOO DQG
PHGLXPHQWHUSULVHVKDVEHHQWKHPDMRUGULYHLQWKHJURZWKRIWKHPLFURILQDQFH
VHFWRUDVGHPDQGIRUPLFURORDQVFRQWLQXHWRWUHQGXSZDUGV$VDW'HFHPEHU
WKHVHFWRUKDGDWRWDORIUHJLVWHUHGPLFURILQDQFHLQVWLWXWLRQVFRPSULVLQJ
RI  FUHGLWRQO\ PLFURILQDQFH LQVWLWXWLRQV DQG VHHQ   GHSRVLWWDNLQJ
PLFURILQDQFHLQVWLWXWLRQV

7
 2QH   GHSRVLWWDNLQJ PLFURILQDQFH LQVWLWXWLRQ ZDV SODFHG XQGHU FXUDWRUVKLS
ODUJHO\GXHWRSRRUFRUSRUDWHJRYHUQDQFHSUDFWLFHVDQGLQDGHTXDWHFDSLWDOLVDWLRQ
ZKLOHDQRWKHURQHZDVVWLOOLQWKHSURFHVVRISXWWLQJLQSODFHDGHTXDWHVWUXFWXUHVWR
FRPPHQFHGHSRVLWWDNLQJPLFURILQDQFHEXVLQHVV
 2XWUHDFKLQWHUPVRIWKHQXPEHURIDFWLYHFOLHQWVUHJLVWHUHGDLQFUHDVHLQ
WKHQXPEHURIDFWLYHFOLHQWVIURPDVDW'HFHPEHUWRDV
DW'HFHPEHUDVWKHPLFURILQDQFHVHFWRUFRQWLQXHGWRPDNHLQURDGVLQWR
WKHILQDQFLDOLQFOXVLRQVSDFH7KHQXPEHURIZRPHQERUURZHUVDOVRLQFUHDVHGLQ
WDQGHPZLWKWKHLQFUHDVHLQWKHQXPEHURIDFWLYHFOLHQWVIURPWR
DQGDFFRXQWHGIRURIWKHWRWDOQXPEHURIDFWLYHFOLHQWVDVDW'HFHPEHU
 +RZHYHU ORDQV WR ZRPHQ ERUURZHUV RI  PLOOLRQ DFFRXQWHG IRU RQO\
RIWRWDOVHFWRUORDQVRIPLOOLRQFRQILUPLQJWKHJHQHUDOREVHUYDWLRQ
WKDW ZRPHQ DUH SRRUHU LQ DQ\ JLYHQ SRSXODWLRQ DQG JHQHUDOO\ WKH SRRU WHQG WR
IRFXVRQVPDOOORDQVLQWHUPVRIYDOXH
 *OREDOO\ZRPHQHPSRZHUPHQWKDVEHFRPHRQHRIWKHSULRULWLHVRIVXVWDLQDEOH
HFRQRPLFGHYHORSPHQWDQGDVVXFKWKHVHFWRUQHHGVWRGHYLVHVWUDWHJLHVWRHQVXUH
DFFHVVWRILQDQFHDQGWKHHPSRZHUPHQWRIWKLVPDUJLQDOLVHGJURXS
 7KHLQGXVWU\UHJLVWHUHGDLQFUHDVHLQDJJUHJDWHHTXLW\RYHUWKH\HDUIURP
PLOOLRQDVDW'HFHPEHUWRPLOOLRQDVDW'HFHPEHU
 ODUJHO\ DWWULEXWHG WR UHYDOXDWLRQ JDLQV HPDQDWLQJ IURP WKH UHYDOXDWLRQ RI
DVVHWV
7RWDO ORDQV RI  PLOOLRQ DV DW  'HFHPEHU  UHSUHVHQW D 
LQFUHDVHLQWRWDOVHFWRUORDQVRYHUWKH\HDUIURPPLOOLRQODUJHO\GULYHQE\
LQFUHDVHG GHPDQG LQ PLFUR ORDQV IURP WKH JURZLQJ PLFUR VPDOO DQG PHGLXP
HQWHUSULVHV
7KHPLFURILQDQFHVHFWRUFRQWLQXHGWRVXSSRUWWKHSURGXFWLYHVHFWRUDVHYLGHQFHG
E\WKHLQFUHDVHLQORDQVWRWKHSURGXFWLYHVHFWRURIIURPPLOOLRQ
DV DW  'HFHPEHU  WR  PLOOLRQ DFFRXQWLQJ IRU  RI WKH
PLFURILQDQFHVHFWRUORDQV

8
3RUWIROLRTXDOLW\UHPDLQHGUHODWLYHO\XQFKDQJHGDVUHIOHFWHGE\WKH3D5 !GD\V 
UDWLRRIDVDW'HFHPEHUFRPSDUHGWRDVDW'HFHPEHU
DJDLQVWWKHLQWHUQDWLRQDOEHQFKPDUNRI7KHPDUJLQDOGHWHULRUDWLRQZDV
ODUJHO\DWWULEXWHGWRLQIODWLRQDU\SUHVVXUHVRQWKHEDFNGURSRIGHFOLQLQJGLVSRVDEOH
LQFRPHV
7KH PLFURILQDQFH LQGXVWU\ UHSRUWHG D  LQFUHDVH LQ SURILWDELOLW\ IURP
PLOOLRQIRUWKH\HDUHQGHG'HFHPEHUWRPLOOLRQIRUWKH
\HDUHQGHG'HFHPEHUPDLQO\DWWULEXWDEOHWRUHYDOXDWLRQJDLQV
2YHUWKHUHYLHZSHULRGWKHVHFWRUUHPDLQHGRSHUDWLRQDOO\VHOIVXIILFLHQWZLWKWKH
DYHUDJH2SHUDWLRQDO6HOI6XIILFLHQF\ 266 UDWLRRIZKLFKUHSUHVHQWHG
DPDUJLQDOGHFOLQHIURPDVDW'HFHPEHU7KHGHFOLQHLVSDUWO\
DWWULEXWHGWRWKHSUHYDLOLQJFKDOOHQJLQJHFRQRPLFHQYLURQPHQW
7KH GHSRVLWWDNLQJ PLFURILQDQFH LQVWLWXWLRQV VXEVHFWRU UHJLVWHUHG D 
JURZWK LQ WRWDO GHSRVLWV RYHU WKH VDPH SHULRG IURP  PLOOLRQ WR 
PLOOLRQDVDW'HFHPEHU
7KH DPHQGPHQW RI WKH 0LFURILQDQFH $FW WKURXJK WKH SURPXOJDWLRQ RI WKH
0LFURILQDQFH$PHQGPHQW$FW1RRIPDUNHGDVLJQLILFDQWGHYHORSPHQWLQ
WKHUHJXODWRU\IUDPHZRUNRIWKHPLFURILQDQFHVHFWRU7KH$PHQGPHQW$FWZKLFK
SURYLGHV IRU SHUSHWXDO OLFHQFHV DQG WZR FODVVHV RI PLFURILQDQFH EXVLQHVV WKH
FUHGLWRQO\PLFURILQDQFHEXVLQHVVDQGWKHGHSRVLWWDNLQJPLFURILQDQFHEXVLQHVVLV
H[SHFWHGWRLPSURYHFRQILGHQFHLQWKHVHFWRU
)XUWKHUWKH$FWSURYLGHVIRUHQKDQFHGVXSHUYLVLRQRIWKHPLFURILQDQFHVHFWRUDV
ZHOO DV D PRUH FRPSUHKHQVLYH FRUSRUDWH JRYHUQDQFH DQG ULVN PDQDJHPHQW
IUDPHZRUN


7KH266LVGHILQHGDVWKHUDWLRRIDQ0),
VRSHUDWLQJUHYHQXHVWRLWVRSHUDWLQJH[SHQVHVLQFOXGLQJWKHILQDQFLDOFRVWV
DQGLPSDLUPHQWORVVHVRQORDQV


9
,QDQHIIRUWWRHQKDQFHWKHFDSDFLW\RIPLFURILQDQFHLQVWLWXWLRQVWRXQGHUZULWHPRUH
PHDQLQJIXOEXVLQHVVWKH%DQNUHYLHZHGWKHPLQLPXPFDSLWDOUHTXLUHPHQWVIRUWKH
WZRFODVVHVRIPLFURILQDQFHEXVLQHVVWRWKH=:HTXLYDOHQWIRU86'DQG
86' IRU FUHGLWRQO\ PLFURILQDQFH DQG GHSRVLWWDNLQJ PLFURILQDQFH
LQVWLWXWLRQVUHVSHFWLYHO\HIIHFWLYH'HFHPEHU
7KHJURZWKWUDMHFWRU\IRUWKHVHFWRULQLVH[SHFWHGWREHFRQVWUDLQHGRZLQJWR
WKHGLVUXSWLYHHIIHFWVRIWKH&RYLGSDQGHPLF
7KH%DQNH[WHQGVLWVVLQFHUHDSSUHFLDWLRQWRDOOPLFURILQDQFHVWDNHKROGHUVIRUWKHLU
FRQWLQXHG VXSSRUW DQG LQSXW WRZDUGV EXLOGLQJ RI D UREXVW LQQRYDWLYH DQG
VXVWDLQDEOHPLFURILQDQFHVHFWRUVXSSRUWLYHRILQFOXVLYHHFRQRPLFGHYHORSPHQW


 370$'$020%(
 

 0LFURILQDQFH$QQXDO&RQIHUHQFH

10
&+$37(529(59,(:2)7+(0$&52(&2120,&

(19,5210(17

*OREDO0DFURHFRQRPLF'HYHORSPHQWV«

 7KHJOREDOHFRQRPLFJURZWKGHFHOHUDWHGVLJQLILFDQWO\LQ WRGRZQ


IURPWKHIRUHFDVWHGIRUWKHVDPHSHULRGDQGWKHORZHVWLQWKHSRVW
JOREDOILQDQFLDOFULVLVHUD7KHVXEGXHGJURZWKZDVODUJHO\DWWULEXWHGWRWKHWUDGH
WHQVLRQVEHWZHHQWKH8QLWHG6WDWHVDQG&KLQDJHRSROLWLFDOWHQVLRQVLQWKH0LGGOH
(DVWDVZHOODVXQFHUWDLQW\FRQFHUQLQJ%UH[LW
 *OREDOWUDGHLQJRRGVGHFOLQHGWRWKHORZHVWILJXUHRILQGRZQIURP
 LQ  *OREDO PDQXIDFWXULQJ DFWLYLW\ DOVR GHFOLQHG LQ WDQGHP ZLWK
GHYHORSPHQWVRQWKHJOREDODUHQD
 ,QDGYDQFHGHFRQRPLHVWKHJOREDOHFRQRPLFJURZWKGHFOLQHGIURPWR
LQODUJHO\DWWULEXWHGWRWUDGHWHQVLRQVEHWZHHQWKH8QLWHG6WDWHVDQG&KLQD
 *URZWK LQ WKH HPHUJLQJ PDUNHWV DQG GHYHORSLQJ HFRQRPLHV (0'(V  DOVR
GHFHOHUDWHGIURPLQWRRQWKHEDFNRIKHLJKWHQHGULVNDYHUVLRQ
ZKLFKFRQWULEXWHGVLJQLILFDQWO\WRVXEGXHGFDSLWDOLQIORZVLQWRWKH(0'(V
 7KH:RUOG%DQNDWWULEXWHVGDPSHQHGJURZWKZLWKLQWKH(0'(VWRODUJHULQFRPH
HODVWLFLW\ RI GHPDQG IRU FRPPRGLWLHV FRXSOHG ZLWK JHRSROLWLFDO WHQVLRQV DQG
H[WUHPHZHDWKHUFRQGLWLRQVLQVRPHFRXQWULHV
 $FFRUGLQJ WR WKH :RUOG %DQN   6XE6DKDUDQ $IULFD LV HVWLPDWHG WR KDYH
UHJLVWHUHG D JURZWKRI  LQ ODUJHO\ GULYHQ E\ VXEGXHG JURZWK LQ WKH
PDMRU66$HFRQRPLHVRI$QJROD1LJHULDDQG6RXWK$IULFD
 7KHGDPSHQHGJURZWKLQ66$ZDVFRPSRXQGHGE\GHFOLQLQJHFRQRPLFDFWLYLWLHV
LQ PDMRU WUDGLQJ SDUWQHUV JOREDO SROLF\ XQFHUWDLQWLHV DQG IDOOLQJ JOREDO
FRPPRGLW\SULFHV


:RUOG%DQN*OREDO(FRQRPLF3URVSHFWV-DQXDU\:DVKLQJWRQ'&

11
 /DERXU XQUHVW HQHUJ\ VXSSO\ FRQVWUDLQWV DQG GHWHULRUDWLQJ SXEOLF ILQDQFHV
ZHLJKHGGRZQRQJURZWKLQ6RXWK$IULFD7KHVHIDFWRUVFRXSOHGZLWKWKHLPSDFW
RI WKH FRYRG SDQGHPLF DUH
H[SHFWHG WR FRQWLQXH VWLIOLQJ
JURZWKLQHFRQRPLFGHYHORSPHQWV
LQ 6RXWK $IULFD DQG WKH UHJLRQ
)XUWKHU ZHLJKLQJ GRZQ RQ VXE
6DKDUDQ¶VJURZWKSURVSHFWVDUHWKH
ULVLQJ GHEW YXOQHUDELOLWLHV LQ
(WKLRSLD
 *RLQJ IRUZDUG WKH JOREDO HFRQRP\ LV SURMHFWHG WR FRQWUDFW E\  LQ 
ODUJHO\ GXH WR WKH ZHDN JOREDO GHPDQG FROODSVH LQ FURVVERUGHU WRXULVP DQG
PDVVLYHMREORVVHVRFFDVLRQHGE\WKHFRYLGSDQGHPLF,QYHVWPHQWVJOREDOO\
DUHH[SHFWHGWREHVXEGXHGDVWKHPDMRULW\RIFRPSDQLHVGHIHUFDSLWDOH[SHQGLWXUH
DPLGKLJKXQFHUWDLQWLHVGXULQJDQGSRVWWKHFRYLGSDQGHPLF
 $FFRUGLQJWRWKH,0)DGYDQFHGHFRQRPLHVDUHSURMHFWHGWRUHJLVWHUDQHJDWLYH
 JURZWK DV FRXQWULHV UHFRQILJXUH WKHLU SROLFLHV DQG VWUDWHJLHV WR SXOO WKHLU
HFRQRPLHVRXWRIWKHWURXJKVRFFDVLRQHGE\WKHSDQGHPLF
 7KH GHYDVWDWLQJ SDQGHPLF LV DOVR H[SHFWHG WR FRQVWUDLQ HFRQRPLF JURZWK DQG
LQWHUQDWLRQDO WUDGH DV FRXQWULHV FORVH WKHLU ERUGHUV LQ DQ HIIRUW WR FRQWDLQ WKH
SDQGHPLF 6KXWGRZQV DQG ORFNGRZQV RQ PDMRU HFRQRPLF DFWLYLWLHV VXFK DV
WRXULVP DQG ORFNGRZQ SURWRFROV DUH H[SHFWHG WR KDYH D VLJQLILFDQW QHJDWLYH
LPSDFWRQVRPHRIWKHPDMRUHFRQRPLHVVXFKDV&KLQDDQGWKH8QLWHG6WDWHVRI
$PHULFD
 (PHUJLQJPDUNHWVDQGGHYHORSLQJHFRQRPLHVDUHH[SHFWHGWRUHJLVWHUQHJDWLYH
JURZWKLQRQWKHEDFNRIGLVUXSWLRQVWRHFRQRPLFDFWLYLW\KLJKOHYHOVRI
LQIHFWLRQV DQG PRUWDOLW\ UDWH WKH LPSDFW RI WKH FRYLG SDQGHPLF DQG


7KH,QWHUQDWLRQDO0RQHWDU\)XQG:RUOG(FRQRPLF2XWORRN8SGDWH-XQH:DVKLQJWRQ'&

12
VLJQLILFDQWSUHVVXUHRQWKHILVFDOEXGJHWVKHDOWKFDUHV\VWHPVDQGVRFLDOVHFXULW\
VDIHW\QHWV

 7KHWDEOHEHORZLQGLFDWHWKHSURMHFWHGJURZWKRQWKHEDFNGURSRIWKHFRYLG
SDQGHPLF
7DEOH3RVW&RYLG3URMHFWHG*URZWK
    
:RUOG2XWSXW   

$GYDQFHG(FRQRPLHV   


United States   
Euro Area   
Germany   
France   
Italy   
Spain   
Japan   
(PHUJLQJ0DUNHWV    
'HYHORSLQJ(FRQRPLHV
China   
India   
6XE6DKDUDQ$IULFD   

Zimbabwe4   

/DWLQ$PHULFD WKH   


&DULEEHDQ

6RXUFH: IMF World Economic Outlook: April 2020

'RPHVWLF(FRQRPLF'HYHORSPHQWV«

 'XULQJWKH=LPEDEZHDQHFRQRP\FRQWUDFWHGE\ODUJHO\GXHWRJURVV
FDSDFLW\XQGHUXWLOL]DWLRQDQGRXWSXWORVVHVLQPDMRUHFRQRPLFVHFWRUVH[WUHPH
ZHDWKHU FRQGLWLRQV LQFOXGLQJ &\FORQH ,GDL DQG SHUVLVWHQW GURXJKWV 7KLV ZDV
FRPSRXQGHGE\SRRUSRZHUVXSSOLHVZKLFKUHVXOWHGLQSRRUSHUIRUPDQFHLQWKH
PLQLQJDJULFXOWXUDODQGWRXULVPVHFWRUV
 +RZHYHUWKHGRPHVWLFHFRQRP\LVH[SHFWHGWREHRQDUHFRYHU\SDWKDVYDULRXV
ILVFDODQGPRQHWDU\LQWHUYHQWLRQVDUHLPSOHPHQWHG7KHFRXQWU\LVH[SHFWHGWR


=LPEDEZHJURZWKUDWHVDUHIURP7UHDVXU\5HVHUYH%DQNRI=LPEDEZH =LPVWDW

13
FRQWLQXH ZRUNLQJ WRZDUGV LPSURYHG SRZHU VXSSO\ WKURXJK LPSRUWV DQG
UHQHZDEOHHQHUJ\VRXUFHVVXFKDVVRODU7KHDGRSWLRQRIWKHIRUHLJQH[FKDQJH
DXFWLRQV\VWHPLVH[SHFWHGWRHQKDQFHERWKSULFHVWDELOLW\DQGIRUHLJQFXUUHQF\
VWDELOLW\ ZKLFK LQ WXUQ ZLOO ERRVW FRQILGHQFH LQ WKH PDUNHW DQG LPSURYH
SURGXFWLYLW\LQDOOVHFWRUVRIWKHHFRQRP\

)LJXUH5HDO*'3*URZWK  (VWLPDWHVDQG3URMHFWLRQV
25.0

20.0 19.7

15.8
15.0
14.2

10.0

5.0 4.7 4.2


2.8 2.4 3.0
1.8
0.0 0.8

-5.0
-6.5

-10.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Est 2020
Proj

Source: Ministry of Finance & Economic Development, Reserve Bank & Zimstat

([WHUQDO6HFWRU'HYHORSPHQWV«

([FKDQJHUDWH«

 'XULQJ  WKH 5HVHUYH %DQN OLEHUDOL]HG WKH H[FKDQJH UDWH E\ DOORZLQJ WKH
57*6GROODUWRIUHHO\IORDWDJDLQVWRWKHUFXUUHQFLHVRQDZLOOLQJEX\HUZLOOLQJ
VHOOHUEDVLV7KHLQLWLDOH[FKDQJHUDWHZDV86=:/LQ)HEUXDU\2Q
WKHWKRI-XQHWKURXJK6WDWXWRU\,QVWUXPHQW 6, RIWKHFRXQWU\
DGRSWHGDPRQRFXUUHQF\UHJLPHWKURXJKUHLQWURGXFWLRQRIWKHGROODU =:/ 

14
 7KH =LPEDEZH GROODU KRZHYHU GHSUHFLDWHG IURP 86=:/ WR FORVH WKH
\HDUDW86=:/)RUHLJQFXUUHQF\VKRUWDJHVDVZHOODVPRQH\VXSSO\
JURZWKZHUHDPRQJVWWKHPDLQGULYHUVRIWKHGHSUHFLDWLRQ


)LJXUH([FKDQJH5DWH'HYHORSPHQWV 86=:/ 

18

16

14

12

10

0
Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 No v - 1 9 D e c - 1 9

Source: Reserve Bank


&XUUHQW$FFRXQW%DODQFH«

 ,Q UHVSRQVH WR WKH ILVFDO DQG PRQHWDU\ UHIRUPV WKH FRXQWU\ ZLWQHVVHG DQ
LPSURYHPHQWLQWKHFXUUHQWDFFRXQWEDODQFHGXULQJWKHILUVWKDOIRIGXHWR
LPSRUW FRPSUHVVLRQ IROORZLQJ WKH H[SHQGLWXUHVZLWFKLQJ HIIHFWV RI WKH
LQWURGXFWLRQ RI WKH H[FKDQJH UDWH ZKLFK KDV VHHQ FRQVXPSWLRQ PRYLQJ DZD\
IURPLPSRUWHGSURGXFWVWRGRPHVWLFDOO\SURGXFHGJRRGV
 7KHFXUUHQWDFFRXQWGHILFLWQDUURZHGIURPDSHDNRI86ELOOLRQLQWR
86ELOOLRQLQDQGLVSURMHFWHGWRIXUWKHUFRQWUDFWWR86PLOOLRQ
LQ
 7KHFRXQWU\¶VH[WHUQDOVHFWRUSRVLWLRQLVVKRZLQJVLJQVRILPSURYHPHQWZLWKWKH
FXUUHQWDFFRXQWGHILFLWSURMHFWHGWRQDUURZIXUWKHUE\HQGRI7KLVLVODUJHO\
RQDFFRXQWRIDVORZGRZQLQLPSRUWVDJDLQVWDEDFNJURXQGRIDQLPSURYHPHQW
LQWKHFRXQWU\¶VH[SRUWHDUQLQJV

15
,QIODWLRQ«
 'XULQJLQIODWLRQDU\SUHVVXUHVLQFUHDVHGLQWKHHFRQRP\ODUJHO\GXHWRSULFH
DGMXVWPHQWV UHODWHG WR WKH FXUUHQF\ UHIRUPV WKDW ZHUH XQGHUWDNHQ E\ WKH
0RQHWDU\$XWKRULWLHV7KHVHUHIRUPVVDZWKHDEROLVKPHQWRIWKHPXOWLFXUUHQF\
UHJLPHDQGWKHUHLQWURGXFWLRQRIWKH=LPEDEZHGROODULQ-XQH
 ,QIODWLRQDU\ SUHVVXUHV PDLQO\ DURVH IURP GHSUHFLDWLRQ RI WKH ORFDO FXUUHQF\
DJDLQVW PDMRU FXUUHQFLHV IXUWKHU IXHOHG E\ DGYHUVH PDUNHW H[SHFWDWLRQV DQG
LQFUHDVHVLQPRQH\VXSSO\
 0RQWKRQPRQWKLQIODWLRQFRQWLQXHGRQDYRODWLOHSDWKLQ0RQWKRQPRQWK
LQIODWLRQDFFHOHUDWHGIURPLQ-DQXDU\SHDNHGDWLQ-XQH
DQGFORVHGWKH\HDUDWDVLQGLFDWHGLQWKHILJXUHEHORZ


)LJXUH0RQWKRQ0RQWK,QIODWLRQ  

45

40

35

30

25

20

15

10

0
2018:01

2018:04
2018:05
2018:06
2018:07
2018:08
2018:09
2018:10
2018:11
2018:12
2019:01
2019:02
2019:03
2019:04
2019:05
2019:06
2019:07
2019:08
2019:09
2019:10
2019:11
2019:12
2018:02
2018:03

-5


Source: Zimstat, 2019

 ,QWKHRXWORRNLQIODWLRQZLOOEHODUJHO\GHWHUPLQHGE\H[FKDQJHUDWHPRYHPHQWV
DV ZHOO DV RWKHU IDFWRUV VXFK DV FOLPDWLF FRQGLWLRQV DQG ZDJH GHPDQGV
,PSURYHPHQWVLQWKHDYDLODELOLW\RIIRUHLJQFXUUHQF\DVZHOODVDEHWWHUUDLQIDOO
VHDVRQPD\KDYHGDPSHQLQJHIIHFWVRQWKHLQIODWLRQDU\SUHVVXUHV

16
)LVFDO'HYHORSPHQWV«

 'XULQJ *RYHUQPHQW UHYHQXH ZDV HVWLPDWHG WRKDYH UHDFKHG  ELOOLRQ
DJDLQVW D WDUJHW RI  ELOOLRQ 7KH LPSURYHPHQW LQ UHYHQXH FROOHFWLRQ ZDV
SDUWO\GXHWRWKHWLJKWHQLQJRIFROOHFWLRQHIIRUWVDVZHOODVLQIODWLRQHIIHFWVRQWKH
FROOHFWHGDPRXQWV7KHPDMRUUHYHQXHFRQWULEXWRUZDV9DOXH$GGHG7D[ZKLFK
JHQHUDWHG  RI WRWDO UHYHQXH )LJXUH  EHORZ VKRZV WKH VWUXFWXUH RI
FRQWULEXWLRQVRIPDMRUWD[UHYHQXHKHDGV

)LJXUH6WUXFWXUHRI7D[5HYHQXH
27+(5,1',5(&7
1217$;5(9(18( 7$;(6
 
,077

3$<(


&25325$7(7$;


9$7

27+(5',5(&7
7$;(6


&867206'87<


(;&,6('87<


Source: MOFED, 2019

 8QDQWLFLSDWHG FRVW HVFDODWLRQV FXOPLQDWHG LQ WKH HVWLPDWHG WRWDO H[SHQGLWXUHV
ULVLQJWRELOOLRQDJDLQVWDWDUJHWRIELOOLRQ7KHPDMRU*RYHUQPHQWFRVW
GULYHUZDVHPSOR\PHQWFRVWZKLFKDFFRXQWHGIRURIWRWDOH[SHQGLWXUHV
7KLVUHVXOWHGLQDQHVWLPDWHGEXGJHWGHILFLWRIELOOLRQ7KH*RYHUQPHQWLV
WDUJHWLQJD QHDU EDODQFHGEXGJHWLQ7KHGRZQVLGHULVNVWRWKHEDODQFHG
PD\ HPDQDWH IURP FRVW HVFDODWLRQV SDUWLFXODUO\ DV D UHVXOW RI KLJKHU ZDJH
GHPDQGV)XUWKHUXQGHUSHUIRUPDQFHE\PDMRUUHYHQXHKHDGVRZLQJWRGHSUHVVHG

17
GRPHVWLFGHPDQGPD\JHQHUDWHDEXGJHWGHILFLWZKLFKPLJKWQHHGWREHILQDQFHG
WKURXJKGRPHVWLFVRXUFHV

'HYHORSPHQWVLQWKH*OREDO0LFURILQDQFH6HFWRU«

 $FFRUGLQJWRWKH:RUOG%DQNDQ
HVWLPDWHG  PLOOLRQ SHRSOH
OLYH EHORZ WKH LQWHUQDWLRQDO
SRYHUW\GDWXPOLQHZLWKRI
WKHVHLQ6XE6DKDUDQ$IULFDDQG
LQ$VLD2YHUWKH\HDUWR
'HFHPEHUPLFURILQDQFLQJ
KDV DOVR EHHQ IROORZLQJ WKH
JURZWKLQWKHQXPEHURISHRSOH
OLYLQJXQGHUWKHSRYHUW\GDWXPOLQH
 7KHJOREDOPLFURILQDQFHVHFWRUKDVEHHQJURZLQJDWDQDYHUDJHDQQXDO UDWHRI
 RYHU WKH SDVW IHZ \HDUV DQG KDV EHQHILWWHG DQ HVWLPDWHG  PLOOLRQ
ERUURZHUV  RI ZKRP DUH ZRPHQ DQG  UHVLGH LQ UXUDO DUHDV ZKHUH
FRQYHQWLRQDOEDQNLQJLVQRWDFFHVVLEOH
 6RXWK $VLD LV HVWLPDWHG WR KDYH WKH ODUJHVW PLFURILQDQFLQJ PDUNHW DQG IDVWHVW
JURZLQJ PLFURILQDQFLQJ PDUNHW ZLWK  PLOOLRQ ERUURZHUV $IULFD ZDV
HVWLPDWHGWRKDYHPLOOLRQPLFURILQDQFHERUURZHUVWKHPDMRULW\RIZRPHQ
DQGWKHPDMRULW\RIZKRPUHVLGHLQUXUDODUHDV
 7KH JOREDO PLFURILQDQFH ORDQ SRUWIROLR URVH E\  LQ  WR DQ HVWLPDWHG
86 ELOOLRQ 7KHVH VWDWLVWLFV KLJKOLJKW WKH LPSRUWDQW UROH SOD\HG E\
PLFURILQDQFHLQVWLWXWLRQVLQWKHXSOLIWLQJWKHVWDQGDUGRIOLYLQJRIZRPHQDVZHOO
DVSHRSOHOLYLQJLQWKHUXUDODUHDV
 7KHJOREDOPLFURILQDQFHLQGXVWU\ZDVSURMHFWHGWRUHDFKELOOLRQLQ
XSIURPELOOLRQ

18
*OREDO0LFURILQDQFH2XWORRN«

 *OREDOO\JURZWKRIWKHPLFURILQDQFHVHFWRULVDQWLFLSDWHGWREHFRQVWUDLQHGE\
WKHHIIHFWVRIWKH&RYLGSDQGHPLFZKLFKLVH[SHFWHGWRUHVXOWLQWKHORVVRI
PLOOLRQVRIMREVLQ YDULRXVVHFWRUVDVZHOOUHGXFHGGHPDQGIRUYDULRXVSURGXFWV
DQGVHUYLFHV
 7KH JOREDO RXWORRN IRU WKH PLFURILQDQFH LQGXVWU\ LV SRLQWLQJ WR VXEGXHG
SHUIRUPDQFH GXH WR WKH LPSDFW RI WKH FRYLG SDQGHPLF 7KH GLPLQLVKLQJ
HDUQLQJV FDSDFLW\ RI WKH PDMRULW\ RI PLFURILQDQFH FOLHQWV RFFDVLRQHG E\ WKH
ORFNGRZQVDQGVRFLDOGLVWDQFLQJSURWRFROVDUHOLNHO\WRLPSDFWQHJDWLYHO\RQWKH
LQGXVWU\SURILWDELOLW\ZKLFKLQWXUQLVOLNHO\WRVWLIOHWKHPXFKDQWLFLSDWHGJURZWK
 :KLOHLQYHVWPHQWVLQWKHHPHUJLQJDQGGHYHORSLQJFRXQWULHVUHPDLQVFRQVWUDLQHG
GXHWRRWKHUGHYHORSPHQWVZLWKLQWKHJOREDODUHQDDQWLFLSDWHGPRGHVWJURZWKLQ
HPHUJLQJDQGGHYHORSLQJFRXQWULHVLVH[SHFWHGWRSURYLGHDQRSSRUWXQLW\IRUWKH
PLFURILQDQFH VHFWRU WR FRQWULEXWH WRZDUGV DWWDLQPHQW RI WKH 6XVWDLQDEOH
'HYHORSPHQW*RDOV
 7KHJOREDOPLFURILQDQFHLQGXVWU\LVH[SHFWHGWRFRQWLQXHSOD\LQJDQLPSRUWDQW
UROHLQWKHILJKWDJDLQVWSRYHUW\DQGVRFLDOLQFOXVLRQ+RZHYHUWKHLQGXVWU\ZLOO
QHHGWRDGDSWTXLFNO\WRDUDSLGO\FKDQJLQJRSHUDWLQJHQYLURQPHQWDQGWKHµQHZ
QRUP¶
 ,Q WKLV UHJDUG DGRSWLRQ RI
WHFKQRORJ\ DQG LPSOHPHQWDWLRQ RI
UREXVW,&7V\VWHPVEHFRPHVNH\LQ
HQVXULQJ VXVWDLQDELOLW\ DQG
UHOHYDQFH RI WKH LQGXVWU\ WR RYHUDOO
HFRQRPLFGHYHORSPHQWDJHQGD


&UDIW6LOLFRQ±0LFURILQDQFH7HFKQRORJ\




19
&+$37(5'(9(/230(176,17+(0,&52),1$1&(6(&725

 7KH FKDSWHU SURYLGHV DQ XSGDWH RQ WKH GHYHORSPHQWV LQ WKH UHJXODWRU\ DQG
VXSHUYLVRU\ IUDPHZRUN DQG RWKHU SROLF\ LQLWLDWLYHV WKDW WRRN SODFH ZLWKLQ WKH
PLFURILQDQFHVHFWRULQ=LPEDEZHGXULQJWKH\HDUHQGHG'HFHPEHU

/(*$/'(9(/230(176

 7KH 0LFURILQDQFH $PHQGPHQW


$FW 1R RI  ZKLFK
DPHQGHGWKH0LFURILQDQFH$FW
>&KDSWHU @ ZDV
SURPXOJDWHG RQ  1RYHPEHU
 7KH 0LFURILQDQFH
$PHQGPHQW $FW RI 
SURYLGHGIRUDQXPEHURILVVXHV
DVVXPPDUL]HGKHUHXQGHU

&ODVVHVRI0LFURILQDQFH%XVLQHVV«
 5HJLVWUDWLRQ RI RQO\ WZR FODVVHV RI
PLFURILQDQFH EXVLQHVV WKH FUHGLW
RQO\ PLFURILQDQFH EXVLQHVV DQG WKH
GHSRVLWWDNLQJ PLFURILQDQFH
EXVLQHVV ,QLWLDOO\ WKH 0LFURILQDQFH
$FWSURYLGHGIRU IRXU GLIIHUHQWW\SHV
RI LQVWLWXWLRQV QDPHO\ FRUSRUDWH 8QGHUVWDQGLQJWKH1HZ$FW±+DUDUH

PLFURILQDQFLHUVFUHGLWRQO\PLFURILQDQFLHUVGHSRVLWWDNLQJPLFURILQDQFLHUVDQG
PRQH\OHQGHUV ZKLFK LQ WXUQ UHVXOWHG LQ DPELJXLW\ DQG RYHUODSSLQJ RI
PLFURILQDQFHDFWLYLWLHV
 &UHGLWRQO\ PLFURILQDQFH LQVWLWXWLRQV DUH GHILQHG DV µFRPSDQLHV WKDW SURYLGH
ORDQVDQGFUHGLWWRORZLQFRPHKRXVHKROGVDQGPLFURVPDOODQGPHGLXPVFDOH

20
ERUURZHUV¶ ZKLOHGHSRVLWWDNLQJ PLFURILQDQFH LQVWLWXWLRQVDUH µFRPSDQLHVWKDW
DFFHSW GHSRVLWV IURP PLFUR VPDOO DQGPHGLXP HQWHUSULVHV DQGPHPEHUV RI
ORZHULQFRPHJURXSV¶,QWKLVUHJDUGWKH5HJLVWUDURI0LFURILQDQFH,QVWLWXWLRQV
LVQRORQJHUUHJLVWHULQJPRQH\OHQGHUVDVWKLVFODVVLVQRORQJHUUHFRJQL]HGXQGHU
WKHQHZ$FW

3HUSHWXDO0LFURILQDQFH/LFHQFHV«
 7KH0LFURILQDQFH$PHQGPHQW$FWSURYLGHVIRULVVXDQFHRISHUSHWXDOOLFHQFHV
IRUERWKFODVVHVRIPLFURILQDQFHEXVLQHVV7KHLVVXDQFHRISHUSHWXDOOLFHQFHVLV
H[SHFWHGWRHQKDQFHFRQILGHQFHDQGVWDELOLW\LQWKHPLFURILQDQFHVHFWRUDVDQQXDO
OLFHQFHV WHQGHG WR VFDUH DZD\ ORQJWHUP IXQGLQJ IURP WKH VHFWRU JLYHQ WKH
XQFHUWDLQWLHVDURXQGEXVLQHVVFRQWLQXLW\XQGHURQH\HDUOLFHQFHV
 )XUWKHU WKH 0LFURILQDQFH $PHQGPHQW $FW RI  SURYLGHV IRU D PRUH
FRPSUHKHQVLYH DQG UREXVW VXSHUYLVRU\ IUDPHZRUN IRU WKH WZR FODVVHV RI
PLFURILQDQFHEXVLQHVVDQGDQHQKDQFHGFRUSRUDWHJRYHUQDQFHIUDPHZRUNZKLFK
LV H[SHFWHG WR
LPSURYH WKH
FRUSRUDWH
JRYHUQDQFH DQG
ULVN PDQDJHPHQW
SUDFWLFHV ZLWKLQ
WKHVHFWRU
 7KH%DQNKHOGDQ
LQLWLDO
VHQVLWL]DWLRQ
Microfinance Workshop: Reserve Bank of Zimbabwe Harare : 2019
ZRUNVKRS WR
SURYLGHDQRYHUYLHZRIWKHQHZSURYLVLRQVLQWURGXFHGWKURXJKWKH0LFURILQDQFH
$PHQGPHQW$FWRI*RLQJIRUZDUGWKH%DQNZLOOFRQGXFWFRPSUHKHQVLYH
ZRUNVKRSVZLWKWKHVHFWRUWRXQSDFNWKH0LFURILQDQFH$PHQGPHQW$FW

21
DQG IDFLOLWDWH EHWWHU XQGHUVWDQGLQJ DQG DSSUHFLDWLRQ RI WKH $FW E\ WKH
PLFURILQDQFHLQVWLWXWLRQVDQGRWKHUPLFURILQDQFHVWDNHKROGHUV

7+(7+,5'$118$/0,&52),1$1&(&21)(5(1&(

 7KH %DQN KHOG WKH


7KLUG $QQXDO
0LFURILQDQFH
&RQIHUHQFHIURP±
 1RYHPEHU 
7ZR KXQGUHG DQG
WZHQW\ILYH
SDUWLFLSDQWVLQFOXGLQJ
UHVRXUFH SHUVRQV
IURP =DPELD DQG The 2019 Microfinance Annual Conference, - Wildgees Lodge,
Harare
.HQ\D ZKRKDG YDVW
H[SHULHQFH DQG NQRZOHGJH RQ PLFURILQDQFH DQG GLJLWDO ILQDQFH DWWHQGHG WKH
&RQIHUHQFH
 7KHWKHPHZDV³7KH
5ROH RI 0LFURILQDQFH LQ
%XLOGLQJ D PRUH ,QFOXVLYH
(FRQRP\  $WWDLQPHQW RI
WKH 6XVWDLQDEOH
'HYHORSPHQW *RDOV
6'*V ´ 7KH WKHPH
UHVRQDWHG ZLWK WKH
2019 Microfinance Annual Report – Harare FRXQWU\¶V 9LVLRQ  WR
EHFRPH DQ XSSHU PLGGOH
LQFRPHFRXQWU\E\WKURXJKKLJKHUSURGXFWLYLW\JURZWKDQGMREFUHDWLRQ

22
ZKLFK LQ WXUQ DUH FULWLFDO LQ WKH DWWDLQPHQW RI PRVW RI WKH 6XVWDLQDEOH
'HYHORSPHQW*RDOV
 7KHNH\WDNHDZD\VIURPWKHFRQIHUHQFHLQFOXGHG

D  7KHQHHGIRUPLFURILQDQFHLQVWLWXWLRQVWRSXWLQSODFHDGHTXDWHFRUSRUDWH

JRYHUQDQFHVWUXFWXUHVVWURQJULVNPDQDJHPHQWV\VWHPVWKDWDUHVXSSRUWHG
E\ UREXVW ,&7
V\VWHPV LQ RUGHU WR
DWWUDFWORQJWHUPDQG
PHDQLQJIXO
LQYHVWPHQWV

E  %DQNLQJ DQG
PLFURILQDQFH
Microfinance Institutions – Men & Women at Work
LQVWLWXWLRQV ZHUH
XUJHG WR FRQVLGHU HPEUDFLQJ WKH 6XVWDLQDEOH 6WDQGDUGV DQG &HUWLILFDWLRQ
6WDQGDUGV 66&,  ZKLFK VHHN WR IDFLOLWDWH GHYHORSPHQW RI VXVWDLQDEOH
ILQDQFLDOLQVWLWXWLRQVZKRVHSHUIRUPDQFHDQGFRUSRUDWHJRYHUQDQFHLVVWURQJ
DQGIXOO\DOLJQHGZLWKQDWLRQDOGHYHORSPHQWSULRULWLHV

F  0LFURILQDQFH LQVWLWXWLRQV WR DFWLYHO\ SDUWLFLSDWH LQ WKH ILQDQFLDO LQFOXVLRQ

GULYHIRUWKHHFRQRPLFJURZWKRI=LPEDEZHDQGHQVXUHDFFHVVWRILQDQFLDO
VHUYLFHVIRUWKHDWWDLQPHQWRIWKH6'*V

G  $GRSWLRQ RI GLJLWDO ILQDQFLDO SODWIRUPV WKDW IDFLOLWDWH GHYHORSPHQW RI

LQQRYDWLYHSURGXFWVDQGGHOLYHU\FKDQQHOVIRUHIILFLHQWDFFHVVWRILQDQFHE\
WKHPDUJLQDOL]HGFRPPXQLWLHV

H  0LFURILQDQFHLQVWLWXWLRQVWRIRFXVRQVRFLDOSHUIRUPDQFHZLWKHPSKDVLVRQ

ILQDQFLDOLQVWLWXWLRQV¶DELOLW\WRHIIHFWLYHO\WUDQVODWHWKHLUVRFLDOPLVVLRQLQWR
SUDFWLFH6RFLDOSHUIRUPDQFHPDQDJHPHQWHQDEOHVPLFURILQDQFHLQVWLWXWLRQV
WR SRVLWLYHO\ LPSDFW RQ WKH OLYHV RI WKH FRPPXQLWLHV WKH\ VHUYH ,W ZDV

23
UHFRPPHQGHG WKDW HYDOXDWLRQ RI WKH SHUIRUPDQFH RI PLFURILQDQFH
LQVWLWXWLRQV VKRXOG RI QHFHVVLW\ WDNLQJ LQWR DFFRXQW ERWK ILQDQFLDO
VXVWDLQDELOLW\DQGVRFLDOVXVWDLQDELOLW\

I  0LFURILQDQFH LQVWLWXWLRQV KDYH D VLJQLILFDQW UROH LQ IXQGLQJ RI H[SRUW

RULHQWHGPLFURVPDOODQGPHGLXPHQWHUSULVHVLQRUGHUWRERRVWWKHFRXQWU\¶V
H[SRUWHDUQLQJV

$)5$&$±6$&5$70((7,1*

 7KH %DQN KRVWHG WKH LQDXJXUDO $IULFDQ 5XUDO $JULFXOWXUDO &UHGLW $VVRFLDWLRQ
$)5$&$ PHHWLQJIRUWKH6RXWKHUQ$IULFD6XE5HJLRQDO 6$&5$7 RQ
0D\
 7KH PHHWLQJ ZKLFK
ZDV DWWHQGHG E\ GHOHJDWHV
IURP %DQN RI =DPELD DV
ZHOO DV FDSWDLQV RI WKH
PLFURILQDQFH LQGXVWU\ LQ
=LPEDEZH GHOLEHUDWHG RQ
$)5$&$¶V PDLQ PDQGDWH
RISURPRWLQJUXUDODQGDJULFXOWXUDOILQDQFHLQ$IULFD
 7KHPHHWLQJQRWHGWKDWWKHHIIRUWVE\$)5$&$DQGLWVPHPEHUVZDVDUHVSRQVH
WR IRRG LQVHFXULW\
CABS: - Financing smallholder Banana Farmers in Chipinge
RFFDVLRQHG E\ ODFN
RI DGHTXDWH
IXQGLQJ DQG
UHVRXUFHV WRZDUGV
WKH UXUDO DQG
DJULFXOWXUDO VHFWRUV
RI RXU HFRQRPLHV

24
WKHPDMRULW\RIZKRPDUHGRPLQDWHGE\VPDOOKROGHUIDUPHUV
 $ QXPEHU RI LQVWLWXWLRQV SURYLGHGXSGDWHV RQWKHSURMHFWV WKH\ DUH IXQGLQJWR
VXSSRUWVPDOOVFDOHDQGUXUDODJULFXOWXUHLQFOXGLQJPDL]HSURGXFWLRQPDFDGDPLD
QXWVSURGXFWLRQVXJDUFDQHDQGEDQDQDV0RVWRIWKHIXQGLQJLVDOVRFRPELQHG
ZLWK ILQDQFLDO HGXFDWLRQ WR IDFLOLWDWH EHWWHU XQGHUVWDQGLQJ RI ILQDQFLDO LVVXHV
DPRQJ WKH VPDOO DQG UXUDO
DJULFXOWXUHVHFWRU
 7KHPHHWLQJZDVFRQFOXGHGZLWK
D YLVLW WR D VPDOO VFDOH IDUPLQJ
EXVLQHVV LQ 1\DELUD 0DVK
&HQWUDO 3URYLQFH RZQHG E\ D

FOLHQWZKRZDVIXQGHGE\DEDQNVLQFH
7KH FOLHQW ZDV LQWR KRUWLFXOWXUH DQG
FRPPHUFLDOPDL]HSURGXFWLRQ

 7KH PHHWLQJ UHVROYHG WKDW PHPEHUV RI WKH 6$&5$7 KDYH D UHVSRQVLELOLW\ WR
IDFLOLWDWHQRWRQO\DFFHVVWRILQDQFHE\WKHUXUDODQGVPDOOKROGHUIDUPHUVEXWWKDW
SODWIRUPV IRU UHVHDUFK DQG LQQRYDWLYH UXUDO DQG DJULFXOWXUDO ILQDQFH VKRXOG EH
HVWDEOLVKHGWRHQVXUHDGHTXDWHIRRGVHFXULW\RQWKHFRQWLQHQW


7+(0,&52),1$1&(678'<728572.(1<$

 $V WKH OHDG UHJXODWRU RI WKH PLFURILQDQFH VHFWRU WKH %DQN RUJDQL]HG D
PLFURILQDQFHVWXG\WRXUWR(DVW$IULFDGXULQJWKHSHULRG-XQHZLWK
DYLHZWRIDFLOLWDWLQJSHHUOHDUQLQJDQGLQIRUPDWLRQH[FKDQJHZLWKWKH.HQ\DQ
FRXQWHUSDUWV

25
 7KH WHDP FRPSULVHG WKH %DQN FDSWDLQV RI WKH PLFURILQDQFH LQGXVWU\ DQG
RIILFLDOVIURPWKH=LPEDEZH$VVRFLDWLRQRI0LFURILQDQFH,QVWLWXWLRQV =$0), 
 $ QXPEHU RI OHVVRQV ZHUH GUDZQ
IURPWKHVWXG\WRXUZKLFKLQFOXGH

D  (IIHFWLYHQHVVRIWKHWHVWDQG
OHDUQDSSURDFKDGRSWHGE\WKH
UHJXODWRU\ DXWKRULWLHV LQ
.HQ\D ZKLFK IDFLOLWDWHG WKH
GHYHORSPHQW RI D FRQGXFLYH
OHJDODQGVXSHUYLVRU\HQYLURQPHQW

E  ,PSRUWDQFHRIUHJXODWRU\UHVSRQVLYHQHVVDQGIOH[LELOLW\LQWKHGHYHORSPHQW
RIWKHPLFURILQDQFHVHFWRU

F  7KHLPSRUWDQFHRIFROODERUDWLRQZLWKRWKHUGRPHVWLFUHJXODWRU\DXWKRULWLHV

G  WKHLPSRUWDQFHRIUHVHDUFKDQGGHYHORSPHQWLQLQIRUPLQJGHYHORSPHQWRI
FOLHQWFHQWULF SURGXFWV DV ZHOO DV DQ HQDEOLQJ HQYLURQPHQW IRU
PLFURILQDQFLQJWRWKULYH

H  DGRSWLRQ RI QRQH[FOXVLYH DJHQF\ DSSURDFK ZKHUH D VLQJOH DJHQW FDQ


UHSUHVHQWPXOWLSOHILQDQFLDOVHUYLFHVSURYLGHUVLQFOXGLQJFRPPHUFLDOEDQNV
PLFURILQDQFH LQVWLWXWLRQV PRELOH PRQH\ WUDQVIHU DJHQWV DQG 6$&&26 WR
SURPRWHH[SDQVLRQRIILQDQFLDOLQFOXVLRQDQG

I  HIIHFWLYH FROODERUDWLRQ EHWZHHQ LQGXVWU\ DVVRFLDWLRQV DQG UHJXODWRU\


DXWKRULWLHV LQ SURPRWLQJ LQGXVWU\ FRPSOLDQFH ZLWK UHJXODWLRQV DQG EHVW
SUDFWLFHV

26
 'HYHORSPHQWVLQWKHPLFURILQDQFHVHFWRULQ.HQ\DGHPRQVWUDWHGWKHLPSRUWDQFH
RI PLFURILQDQFLQJ LQ IDFLOLWDWLQJ ILQDQFLDO LQFOXVLRQ DQG DFKLHYHPHQW RI WKH
RYHUDOO QDWLRQDO HFRQRPLF DJHQGD IRU
HPHUJLQJDQGGHYHORSLQJHFRQRPLHV
 7KH H[SHULHQWLDO NQRZOHGJH JDLQHG IURP
WKHVWXG\ZLOOLQIRUPWKHGHYHORSPHQWRID
0LFURILQDQFH 'HYHORSPHQW 6WUDWHJ\ WR

IDFLOLWDWHWKHJURZWKRIDVXVWDLQDEOH
PLFURILQDQFH LQGXVWU\ ZKLFK
FRQWULEXWHV PHDQLQJIXOO\ WRZDUGV
DWWDLQPHQWRIWKHFRXQWU\¶VYLVLRQRI
EHFRPLQJDQ8SSHU0LGGOH,QFRPH
HFRQRP\E\

,1'8&7,21$1'&$3$&,7<%8,/',1*

 7KH%DQNFRQGXFWHGDQXPEHURILQGXFWLRQDQGFDSDFLW\EXLOGLQJZRUNVKRSVIRU
UHJLVWHUHG PLFURILQDQFH LQVWLWXWLRQV 7ZR   LQGXFWLRQ ZRUNVKRSV IRU QHZO\
UHJLVWHUHG PLFURILQDQFH
LQVWLWXWLRQV DQG WZR  
FDSDFLW\EXLOGLQJ
ZRUNVKRSV IRU RSHUDWLQJ
PLFURILQDQFH LQVWLWXWLRQV
ZHUH FRQGXFWHG GXULQJ WKH
\HDU

Capacity building Workshop – Harare 2019

27
 7KHLQGXFWLRQZRUNVKRSVDUHSODWIRUPVRIHQJDJHPHQWEHWZHHQQHZO\UHJLVWHUHG
LQVWLWXWLRQV DQG WKH UHJXODWRU\ DXWKRULW\ DQG SURYLGH WKH LQVWLWXWLRQV ZLWK DQ
RSSRUWXQLW\ WR VHHN FODULW\ RQ ZKDW LV H[SHFWHG RI WKHP E\ WKH 5HJLVWUDU RI
0LFURILQDQFH,QVWLWXWLRQV$UHDVRIIRFXVLQWKHZRUNVKRSVLQFOXGHGH[SODQDWLRQV
RQ WKH UHJXODWRU\ DQG VXSHUYLVRU\ IUDPHZRUN DV ZHOO DV FRPSOLDQFH DQG
VXSHUYLVRU\DFWLRQVWKDWPD\EHWDNHQRQQRQFRPSOLDQWLQVWLWXWLRQVZHUHFRYHUHG
GXULQJWKHVHLQGXFWLRQWUDLQLQJV
 7KH WUDLQLQJ DOVR FRYHUHG WKH
LPSRUWDQFH RI NHHSLQJ FRUUHFW
DQG DFFXUDWH ILQDQFLDO UHFRUGV
E\ PLFURILQDQFH LQVWLWXWLRQV
DQG WKH WLPHO\ VXEPLVVLRQ RI
TXDUWHUO\UHWXUQVWRWKH%DQN 
 7KH FDSDFLW\ EXLOGLQJ Capacity-building Workshop – Harare

ZRUNVKRSVKHOGLQ+DUDUH%XODZD\RDQG0DVYLQJRGHWHUPLQHGWKDWDQXPEHURI
FKDOOHQJHV LQFOXGLQJ ODFN RI ULVN PDQDJHPHQW VNLOOV DQG D SRRU FRPSOLDQFH
FXOWXUH FXUWDLOHG WKH VHFWRU¶V SHUIRUPDQFH ,Q SDUWLFXODU WKH FKDOOHQJHV ZHUH
LPSHGLQJ WKH GHYHORSPHQW RI D UREXVW LQQRYDWLYH DQG PRUH VXVWDLQDEOH
PLFURILQDQFH VHFWRU WKDW LV DEOH WR FRQWULEXWH PHDQLQJIXOO\ WR VXVWDLQDEOH
HFRQRPLFGHYHORSPHQW
 7KHZRUNVKRSVZHUHDWWHQGHGE\SDUWLFLSDQWVIURP0),VDQGFRYHUHG
WKHIROORZLQJDVSHFWV
D  5HJXODWRU\IUDPHZRUNDQGFRPSOLDQFHLVVXHV

E  =,05$H[SHFWDWLRQVIRU0),V

F  ,PSRUWDQFHRIDGRSWLQJGLJLWDOWHFKQRORJ\

G  &RPSOHWLRQRI0LFURILQDQFH4XDUWHUO\5HWXUQDQG

H  8SGDWHRQLPSOHPHQWDWLRQRI1DWLRQDO)LQDQFLDO,QFOXVLRQ6WUDWHJ\

 6SHFLDOL]HGFDSDFLW\EXLOGLQJZRUNVKRSVRQWKH%DQN6XSHUYLVLRQ$SSOLFDWLRQ
6\VWHP %6$ ZHUHDOVRFRQGXFWHGGXULQJ2FWREHUDQG1RYHPEHU

28
 7KHPLFURILQDQFHLQVWLWXWLRQVZHUHWUDLQHGRQWKHXVHRIWKH%DQN6XSHUYLVLRQ
$SSOLFDWLRQ6\VWHP %6$ ZKLFKHQDEOHVWKHLQWHUDFWLRQEHWZHHQWKHLQVWLWXWLRQV
DQGWKH%DQNLQDOLYHHQYLURQPHQW
 7KH VXEPLVVLRQ RI TXDUWHUO\ PLFURILQDQFH UHWXUQV WKURXJK WKH %6$ V\VWHP
HQDEOHVWKHVPRRWKDQGIDVWSURFHVVLQJRIVWDWLVWLFDOLQIRUPDWLRQIRUHDFKTXDUWHU
ZKLFK IDFLOLWDWH WKH GHWHUPLQDWLRQ RI WKH SHUIRUPDQFH DQG FRQGLWLRQ RI WKH
PLFURILQDQFHVHFWRU

0,&52),1$1&(&(2V:,17(56&+22/

 =$0),LQFROODERUDWLRQZLWKWKH=LPEDEZH0LFURILQDQFH)XQGKHOGDWZRGD\
&KLHI ([HFXWLYH 2IILFHUV¶
0LFURILQDQFH :LQWHU 6FKRRO
IURP 0D\DWWKH
&DULEEHD%D\+RWHOLQ.DULED



 7KH WKHPH IRU WKH


CEO Winter School Kariba 2019
0LFURILQDQFH &(2V¶ :LQWHU 6FKRRO
ZDV³'HWHUPLQLQJWKH1H[W)URQWLHUV´
 ,WZDVDWWHQGHGE\&KLHI([HFXWLYH2IILFHUVIURPWKHPLFURILQDQFHLQGXVWU\DQG
VHOHFWHGEDQNLQJLQVWLWXWLRQVWKH%DQN'HSXW\*RYHUQRU'U-7&KLSLNDDQG
VHQLRURIILFLDOVIURPWKHFHQWUDOEDQNUHSUHVHQWDWLYHVRIWKH0LQLVWU\RI)LQDQFH
(FRQRPLF'HYHORSPHQWILQWHFKFRPSDQLHVDQGGHYHORSPHQWSDUWQHUV
 7KH SDUWLFLSDQWV DW WKH &(2V¶ :LQWHU 6FKRRO FRQFXUUHG WKDW WKH PLFURILQDQFH
LQGXVWU\FRQWLQXHGWRH[SHULHQFH

29
D  /LPLWHG DYDLODELOLW\ RI FRQFHVVLRQDU\ IXQGLQJ IRU RQOHQGLQJ ZKLFK LV
FRPSRXQGHGE\ODFNRIORQJWHUPLQYHVWPHQWLQWKHLQGXVWU\

E  $QQXDO UHQHZDO RI PLFURILQDQFH OLFHQFHV ZKLFK KDG PLOLWDWHG DJDLQVW


DWWUDFWLRQ RI ORQJWHUP IXQGLQJ WR WKH LQGXVWU\ DV ZHOO DV GLVWUDFWLQJ
PDQDJHPHQWIURPIRFXVLQJRQFRUHPLFURILQDQFHEXVLQHVV

F  3ROLF\LQVWDELOLW\DQGLQFRQVLVWHQF\ZKLFKQHJDWLYHO\LPSDFWHGRQVWUDWHJLF
EXVLQHVVSODQVDQGEXVLQHVVFRQWLQXLW\RIWKHLQGXVWU\SOD\HUV

G  3HUVLVWHQWOLTXLGLW\FKDOOHQJHVGXHWRLQVXIILFLHQWIXQGLQJERWKLQWHUPVRI
IRUHLJQDQGORFDOFXUUHQF\

H  5LVLQJFRVWRIRSHUDWLRQVGXHWRSULFHYRODWLOLW\DQGWKHLQWHUPHGLDWLRQ
PRQH\WUDQVIHUWD[DQG

I  /LPLWHGSURGXFWGHYHORSPHQWDQGODJJLQJVHUYLFHGHOLYHU\V\VWHPV
 7KH  0LFURILQDQFH &(2V¶ :LQWHU 6FKRRO PDGH WKH IROORZLQJ
UHFRPPHQGDWLRQVLQRUGHUWRUHVROYHWKHDWWHQGDQWFKDOOHQJHV

D  0LFURILQDQFH LQVWLWXWLRQV WR PRGHUQL]H HPEUDFH PRELOH WHFKQRORJ\ DQG

GHYHORSLQQRYDWLYHSURGXFWVDQGVHUYLFHVGHOLYHU\FKDQQHOV

E  $FFHOHUDWH WKH GHYHORSPHQWRI DQ DSSURSULDWH UHJXODWRU\ DQGVXSHUYLVRU\

IUDPHZRUN IRU 6$&&2V WR HQDEOH WKHP WR SOD\ D VLJQLILFDQW UROH LQ
H[SDQVLRQRIILQDQFLDOLQFOXVLRQ

F  0LFURILQDQFHLQGXVWU\WRDGRSWHPHUJLQJLQWHUQDWLRQDOEHVWSUDFWLFHVVXFK

DV 6RFLDO 3HUIRUPDQFH 0DQDJHPHQW DQG 6XVWDLQDEOH 6WDQGDUGV DQG


&HUWLILFDWLRQ6WDQGDUGV 66&, ZKLFKDUHNH\LQIDFLOLWDWLQJVXVWDLQDELOLW\
DQGDWWUDFWLQJIRUHLJQIXQGLQJ

G  *RYHUQPHQWVKRXOGFRQVLGHUSXWWLQJLQSODFHUXUDOILQDQFLQJLQFHQWLYHVWR

VXSSRUWPLFURILQDQFHSOD\HUVWKDWVXSSRUWUXUDODQGVPDOOKROGHUIDUPHUVDV

30
ZHOO DV PLFUR VPDOO DQG PHGLXP HQWHUSULVHV DW JURZWK SRLQWV DQG UXUDO
VHUYLFHFHQWHUV

H  0LFURILQDQFHLQGXVWU\WRDGRSWGLJLWDODQGPRELOHWHFKQRORJ\IRUHIILFLHQW

RSHUDWLRQVDQGVHUYLFHVGHOLYHU\SURFHVVHV

I  0LFURILQDQFH LQVWLWXWLRQV WR EHFRPH PRUH FXVWRPHU FHQWULF DQG VWULYH WR

DWWDLQ&OLHQW3URWHFWLRQ&HUWLILFDWLRQZKLFKLVDVWUDWHJLFPDUNHWLQJWRROIRU
SRWHQWLDOIRUHLJQLQYHVWPHQWV

J  0LFURILQDQFH SURYLGHUV VKRXOG GHYHORS VWUDWHJLF SDUWQHUVKLSV WR LQFUHDVH

EXVLQHVVRSSRUWXQLWLHV,QWKLVUHJDUGPLFURILQDQFHSURYLGHUVFDQWHDPXS
ZLWKGHYHORSPHQWSDUWQHUVWKDWSURYLGHILQDQFLDOOLWHUDF\DQGHGXFDWLRQWR
SRWHQWLDOFXVWRPHUVWKDWWKH\ZLOOIXQG,QVRPHFDVHVWKH\FDQFROODERUDWH
ZLWKJHQXLQHODQGGHYHORSHUVWRSURYLGHPLFURKRXVLQJORDQV

K  7KH%DQNH[SHFWHGWRVSHHGXSWKHUROHRXWRIWKH&UHGLW5HJLVWU\6\VWHP

WR DOO PLFURILQDQFH LQVWLWXWLRQV VR WKDW WKH\ FDQ VXEPLW DQG DFFHVV
LQIRUPDWLRQZKLFKHQKDQFHVWKHLUFUHGLWULVNPDQDJHPHQWDVVHVVPHQWVDQG
FUHGLWZRUWKLQHVVRIWKHLUSURVSHFWLYHFOLHQWV

0,&52),1$1&(1$7,21$/(;&(//(1&($:$5'6&(5(021<

 7KH %DQN MRLQHG RWKHU PLFURILQDQFH VWDNHKROGHUV DW WKH VHFRQG HGLWLRQ RI WKH
0LFURILQDQFH1DWLRQDO([FHOOHQFH$ZDUGV&HUHPRQ\ZKLFKZDVKRVWHGE\WKH
=LPEDEZH$VVRFLDWLRQRI0LFURILQDQFH,QVWLWXWLRQV =$0), DQGWKH=LPEDEZH
0LFURILQDQFH)XQG =0) RQ'HFHPEHUDW=LPEDOL*DUGHQVLQ+DUDUH
 7KHPDLQREMHFWLYHRIWKH$ZDUGVFHUHPRQ\ZDVWRUHFRJQL]HDQGUHZDUGWKRVH
PLFURILQDQFHLQVWLWXWLRQVDQGRWKHUPLFURILQDQFHVWDNHKROGHUVWKDWKDGZRUNHG
GLOLJHQWO\WRHQVXUHH[FHOOHQWHIILFLHQWDQGHIIHFWLYHGHOLYHU\RIILQDQFLDOVHUYLFHV
WRWKHORZLQFRPHDQGPDUJLQDOLVHGKRXVHKROGVDQGJURXSV

31
 ,Q KHU NH\ QRWH DGGUHVVWKH 'HSXW\ *RYHUQRU RIWKH %DQN 'U - 7 &KLSLND
XUJHGWKHVHFWRUWRHPEUDFHGLJLWDOLVDWLRQDVLWIDFLOLWDWHVLQFUHDVHGRXWUHDFKDW
ORZ FRVW LQFUHDVHG UHYHQXH
DQG DFFHVV WR WKH QHZ WDUJHW
PDUNHW RI PLOOHQQLDOV
0LFURILQDQFHLQVWLWXWLRQVZHUH
DOVR XUJHG WR OHYHUDJH RQ
UHODWLRQVKLSV ZLWK EDQNLQJ
LQVWLWXWLRQV DV ZHOO DV RWKHU
Microfinance Excellency Awards -2019
ILQDQFLDOVHUYLFHSURYLGHUV
 )XUWKHUIROORZLQJWKHSURPXOJDWLRQRIWKH0LFURILQDQFH$PHQGPHQW$FWRI
ZKLFKSURYLGHVIRULVVXDQFHRISHUSHWXDO PLFURILQDQFHOLFHQFHVWKH
VHFWRU ZDV XUJHG WR DGRSW LQWHUQDWLRQDO EHVW SUDFWLFHV LQ PLFURILQDQFLQJ
LQFOXGLQJ WKH 6RFLDO 3HUIRUPDQFH 0DQDJHPHQW )UDPHZRUN DQG WKH
6XVWDLQDELOLW\6WDQGDUGV&HUWLILFDWLRQLQRUGHUWRDWWUDFWSRWHQWLDOLQYHVWRUV
LQWRWKHVHFWRU 
 7KHDZDUGVUHSUHVHQWHGH[FHOOHQF\LQYDULRXVDVSHFWVRIPLFURILQDQFHLQFOXGLQJ
D  IDVWHVWRXWUHDFKJURZLQJ

E  PRVWFOLHQWIRFXVHGDQGVRFLDOO\UHVSRQVLEOHPLFURILQDQFHLQVWLWXWLRQ

F  PRVWZRPHQIULHQGO\PLFURILQDQFHLQVWLWXWLRQ

G  PRVW\RXWKIULHQGO\PLFURILQDQFHLQVWLWXWLRQ

H  PRVWGLJLWDOLVHGDQGLQQRYDWLYHPLFURILQDQFHLQVWLWXWLRQDQG

I  0RVWUXUDODJULFXOWXUHIRFXVHGPLFURILQDQFHLQVWLWXWLRQ


&203/,$1&(:,7+&25(&/,(173527(&7,2135,1&,3/(6

 7KH%DQNFRQWLQXHGWRPRQLWRUWKHPLFURILQDQFHVHFWRUIRUFRPSOLDQFHZLWKFRUH
FOLHQWSURWHFWLRQSULQFLSOHVUHJXODWRU\IUDPHZRUNDQGRWKHUGLUHFWLYHVLVVXHGLQ
UHVSHFWRIWKHRSHUDWLRQRIPLFURILQDQFHEXVLQHVV

32
 0LFURILQDQFHLQVWLWXWLRQVZHUHIXUWKHUUHTXLUHGWRSXWLQSODFHUREXVWFRPSODLQWV
KDQGOLQJ SURFHGXUHV LQ OLQH ZLWK &RUH &OLHQW 3URWHFWLRQ 3ULQFLSOHV DQG WKH
0LFURILQDQFH$FW>&KDSWHU@
 7KHVHPHDVXUHVDUHDLPHGDWVXVWDLQDEO\SURPRWLQJWKHLQWHJULW\DQGUHSXWDWLRQRI
WKHPLFURILQDQFHVHFWRUZKLOHSURDFWLYHO\VDIHJXDUGLQJWKHLQWHUHVWVRIFRQVXPHUV
RIWKHPLFURILQDQFHSURGXFWVDQGVHUYLFHV
 7KH %DQN FRQWLQXHG WR PRQLWRU WKH PLFURILQDQFH VHFWRU WR HQVXUH UHVSRQVLEOH
OHQGLQJ E\ PLFURILQDQFH LQVWLWXWLRQV FRQWLQXHG DFFHVV WR ILQDQFH WR WKH
PDUJLQDOL]HGDQGORZLQFRPHRQDVXVWDLQDEOHEDVLV
 ,WZDVKRZHYHUQRWHGWKDWGHVSLWH HIIRUWVE\WKH %DQNWRLQFXOFDWHDFXOWXUHRI
FRPSOLDQFH WKURXJK FDSDFLW\ EXLOGLQJ WUDLQLQJ ZRUNVKRSV DQG FRQWLQXRXV
HQJDJHPHQWV VRPH PLFURILQDQFH LQVWLWXWLRQV FRQWLQXHG WR IDFH FKDOOHQJHV ZLWK
UHJDUGVWRFRPSO\LQJZLWKSURYLVLRQVRIWKH0LFURILQDQFH$FW>&KDSWHU@LQ
UHVSHFWRIWKHIROORZLQJ

/DWHDQG1RQ6XEPLVVLRQRI4XDUWHUO\0),5HWXUQV«

 'XULQJWKH\HDUQLQH  PLFURILQDQFHLQVWLWXWLRQVZHUHSHQDOL]HGIRUODWH


VXEPLVVLRQ RI WKH 4XDUWHUO\ 0), 5HWXUQ ZLWK QLQH   RWKHU LQVWLWXWLRQV
SHQDOL]HGIRUQRQVXEPLVVLRQRIWKH4XDUWHUO\0),5HWXUQV
 2QH PLFURILQDQFH LQVWLWXWLRQ ZDV SHQDOL]HG IRU QRQFRPSOLDQFH ZLWK WKH
0LFURILQDQFH$FW>&KDSWHU@ZLWKUHVSHFWWRLQIRUPDWLRQZKLFKVKRXOGEH
GLVSOD\HGRQWKHLQVWLWXWLRQV¶OHWWHUKHDGDQGRWKHURIILFLDOVWDWLRQHU\

)DLOXUHWR0HHW0LQLPXP&DSLWDO5HTXLUHPHQWV«

 $VDW'HFHPEHUHOHYHQ  FUHGLWRQO\PLFURILQDQFHLQVWLWXWLRQVZHUH


QRWFRPSOLDQWZLWKWKHPLQLPXPFDSLWDOUHTXLUHPHQWVRIIRUFUHGLWRQO\
PLFURILQDQFHLQVWLWXWLRQVDQGWKH\ZHUHUHTXLUHGWRUHJXODUL]HWKHLUFDSLWDOOHYHOV

33
1RQ&RPSOLDQFHZLWK%RDUG&RPSRVLWLRQ5HTXLUHPHQWV«

 2QHRIWKH'70),VZDVQRQFRPSOLDQWZLWKWKHUHTXLUHPHQWVRIVHFWLRQRI
WKH 0LFURILQDQFH $FW >&KDSWHU @ ZKLFK UHTXLUHV WKDW WKH ERDUG RI D
PLFURILQDQFH LQVWLWXWLRQ EH FRPSRVHG RI DW OHDVW ILYH   PHPEHUV IROORZLQJ
H[SLU\RIWHQXUHRIVRPHRIWKHERDUGPHPEHUV

)DLOXUHWR$SSRLQWD3ULQFLSDO2IILFHU«

 2QHRIWKH'70),ZDVLQEUHDFKRIVHFWLRQRIWKH0LFURILQDQFH$FWZKLFK
PDNHVWKHDSSRLQWPHQWRID&KLHI([HFXWLYH2IILFHUPDQGDWRU\7KHLQVWLWXWLRQ
KDGEHHQRSHUDWLQJZLWKDQDFWLQJ&KLHI([HFXWLYH2IILFHUVLQFHDXWKRUL]DWLRQWR
FRPPHQFHRSHUDWLRQVRQ-XO\$FFRUGLQJO\WKHLQVWLWXWLRQZDVSHQDOL]HG
IRUIDLOXUHWRFRPSO\ZLWKWKHSURYLVLRQVRIWKH$FW

&RQGXFWLQJRIQRQSHUPLVVLEOHDFWLYLWLHV«

 'XULQJWKH\HDUWZRFUHGLWRQO\PLFURILQDQFHLQVWLWXWLRQVZHUHFRQGXFWLQJQRQ
SHUPLVVLEOHDFWLYLWLHVE\VROLFLWLQJIRUGHSRVLWVIURPWKHSXEOLFLQFRQWUDYHQWLRQ
RI VHFWLRQ  RI WKH 0LFURILQDQFH $FW $SSURSULDWH VXSHUYLVRU\ DFWLRQ ZDV
LQVWLWXWHGDJDLQVWWKHQRQFRPSOLDQWLQVWLWXWLRQV













34
&+$37(53(5)250$1&(2)7+(0,&52),1$1&(6(&725



0,&52),1$1&(6(&72529(59,(:

 7KHPLFURILQDQFHLQGXVWU\DVDSLOODURIWKH1DWLRQDO)LQDQFLDO,QFOXVLRQ6WUDWHJ\
DQG D GULYHU RI VXVWDLQDEOH HFRQRPLF GHYHORSPHQW FRQWLQXHG RQ D JURZWK
WUDMHFWRU\ LQ WHUPV RI RXWUHDFK WKURXJK LQQRYDWLYH SURGXFW RIIHULQJ WR WKH ORZ
LQFRPHDQGPDUJLQDOL]HGJURXSV+RZHYHUWKHVHJDLQVDUHH[SHFWHGWREHVORZO\
HURGHG E\ WKH HIIHFW DQG XQFHUWDLQW\ RI WKH &RYLG SDQGHPLF ZKLFK KDV
UHVWULFWHGWKHRSHUDWLRQVRIEXVLQHVVLQJHQHUDO
 'XULQJ WKH SHULRG XQGHU UHYLHZ WKH PLFURILQDQFH LQGXVWU\ UHJLVWHUHG D JURZWK
WUDMHFWRU\ LQ ORDQ SRUWIROLR VL]H WRWDO DVVHWV GHSRVLWV SURILWDELOLW\ DJJUHJDWH
HTXLW\DQGRXWUHDFK
 +RZHYHUJURZWKLQWKHGHSRVLWWDNLQJVXEVHFWRU¶VWRWDOGHSRVLWVZDVVXEGXHGGXH
WRWKHFKDOOHQJLQJHFRQRPLFHQYLURQPHQWSUHYDLOLQJLQWKHFRXQWU\

$5&+,7(&785(2)7+(0,&52),1$1&(6(&725

 $VDW'HFHPEHUWKHUHZHUHPLFURILQDQFHLQVWLWXWLRQVFRPSULVLQJ
FUHGLWRQO\ PLFURILQDQFH LQVWLWXWLRQV DQG VHYHQ   GHSRVLWWDNLQJ PLFURILQDQFH
LQVWLWXWLRQVDVLQGLFDWHGLQWKH7DEOH

7DEOH$UFKLWHFWXUHRIWKH0LFURILQDQFH6HFWRU

7\SHRI,QVWLWXWLRQ 'HFHPEHU 'HFHPEHU

&UHGLWRQO\0LFURILQDQFH,QVWLWXWLRQV  

'HSRVLWWDNLQJ0LFURILQDQFH,QVWLWXWLRQV  

7RWDO  



 2QH GHSRVLWWDNLQJ PLFURILQDQFH LQVWLWXWLRQ /LRQ )LQDQFH  ZDV VWLOO XQGHU
FXUDWRUVKLSZKLOH1GRUR0LFURILQDQFH%DQNZDVVWLOOSXWWLQJLQSODFHWKHUHTXLVLWH
VWUXFWXUHVDQGSURFHVVHVWRFRPPHQFHGHSRVLWWDNLQJPLFURILQDQFHRSHUDWLRQV

35
7+(3(5)250$1&(2)7+(0,&52),1$1&(6(&725
 7KLV VHFWLRQ SURYLGHV DQ DQDO\VLV RI WKH FRQGLWLRQ DQG SHUIRUPDQFH RI WKH
PLFURILQDQFHVHFWRULQ=LPEDEZHGXULQJWKH\HDUHQGHG'HFHPEHU
 7KHFRQGLWLRQDQGSHUIRUPDQFHRIWKHPLFURILQDQFHLQGXVWU\IRUWKH\HDUHQGHG
'HFHPEHULVDVVKRZQLQ7DEOH

7DEOH.H\0LFURILQDQFH3HUIRUPDQFH,QGLFDWRUV'HF±'HF
,QGLFDWRU 'HF 'HF

7RWDO/RDQV P   

7RWDO$VVHWV P   

7RWDO(TXLW\ P   

1HW3URILW P   

$YHUDJH2SHUDWLRQDO6HOI
 
 6XIILFLHQF\ 266 
7RWDO'HSRVLWV '70),V  P   

3RUWIROLRDW5LVN 3D5!GD\V   

52$  

52(  

1XPEHURI$FWLYH/RDQ&OLHQWV  

1XPEHURI)HPDOH%RUURZHUV  

1XPEHURI2XWVWDQGLQJ/RDQV  
 1XPEHURI%UDQFKHV  


0LFURILQDQFH2XWUHDFK«
 7KHPLFURILQDQFHLQGXVWU\UHFRUGHGDQLQFUHDVHLQWKHEUDQFKQHWZRUNGXULQJWKH
\HDUXQGHUUHYLHZIURPEUDQFKHVWREUDQFKHVGXHWRDQLQFUHDVHLQWKH
QXPEHURIUHJLVWHUHGPLFURILQDQFHLQVWLWXWLRQVDQGH[SDQVLRQRIEUDQFKQHWZRUNV
E\VRPHLQVWLWXWLRQV
 7KHWUHQGLQWKHQXPEHURIPLFURILQDQFHLQVWLWXWLRQVDQGPLFURILQDQFHEUDQFKHVLV
LQGLFDWHGLQ)LJXUH

36
Fig. 5: Trend in the Number of MFIs and Branches : 2013 -
2019

1017

750
682
639
571
473
334
205 229
143 147 152 182 183

2013 2014 2015 2016 2017 2018 2019

No. of MFIs No. of Branches



 $ WRWDO RI WZHQW\WKUHH LQVWLWXWLRQV KDG WZHQW\   RU PRUH EUDQFKHV HDFK
UHSUHVHQWLQJRIWRWDOVHFWRUEUDQFKHV
 7KH VHFWRU UHJLVWHUHG D  LQFUHDVH LQ WKH QXPEHU RI DFWLYH FOLHQWV IURP
WRRYHUWKHUHYLHZSHULRG
 ,Q OLQH ZLWK WKH ILQDQFLDO LQFOXVLRQ WKUXVW RI UHDFKLQJ RXW WR WKH PDUJLQDOL]HG
KRXVHKROGVWKHVHFWRUFRQWLQXHGWRUHDFKRXWWRWKHPDUJLQDOL]HGDQGXQGHUVHUYHG
ZLWK ORDQV WR IHPDOH ERUURZHUV LQFUHDVLQJ E\  IURP  DV DW 
'HFHPEHUWRDVDW'HFHPEHU)HPDOHERUURZHUVDFFRXQWHG
IRURIWKHWRWDOQXPEHURIDFWLYHFOLHQWVDQGWKHYDOXHRIORDQVWRZRPHQ
DPRXQWHGWRPLOOLRQUHSUHVHQWLQJRIWKHWRWDOLQGXVWU\ORDQVRI
PLOOLRQDVDW'HFHPEHU
 7KHWUHQGLQWKHQXPEHURIDFWLYHFOLHQWVDQGIHPDOHERUURZHUVRYHUWKHSDVWILYH
 \HDUVLVVKRZQLQ)LJXUH







37


)LJXUH7UHQGLQ$FWLYH&OLHQWV )HPDOH%RUURZHUV
'HF'HF
454,428 500,000
450,000
396,388
349,341 349,859 400,000
323,286 350,000
290,532
300,000
241,587
205,940 250,000
161,023 166,444 200,000
147,699
128,337 115,690 150,000
71,811 100,000
7RWDOQXPEHURIFOLHQWV 1XPEHURIIHPDOHFOLHQWV 50,000
0
'HF 'HF 'HF 'HF -XQ 6HS 'HF


 7KHVHFWRUPDLQWDLQHGDSRVLWLYHWUDMHFWRU\LQERWKWKHQXPEHURIDFWLYHORDQFOLHQWV
DQGIHPDOHERUURZHUVRYHUWKHILYH\HDUSHULRGUHIOHFWLQJWKHSRVLWLYHLPSDFWRI
WKH LPSOHPHQWDWLRQ RI WKH 1DWLRQDO )LQDQFLDO ,QFOXVLRQ 6WUDWHJ\ LQ IDFLOLWDWLQJ
LPSURYHGDFFHVVWRILQDQFLDOVHUYLFHVE\WKHORZLQFRPHDQGPDUJLQDOL]HGJURXSV
LQFOXGLQJZRPHQDQGWKHPLFURVPDOODQGPHGLXPHQWHUSULVHV

&DSLWDO )XQGLQJ«

 7KHPLFURILQDQFHVHFWRUUHJLVWHUHGDLQFUHDVHLQDJJUHJDWHHTXLW\GXULQJ
WKH \HDU IURP  PLOOLRQ IRUSHULRGHQGHG  'HFHPEHU  WR
PLOOLRQIRUSHULRGHQGHG'HFHPEHUODUJHO\GULYHQE\UHWDLQHGHDUQLQJV
 )LJXUH  VKRZV WKH WUHQG LQ WKH DJJUHJDWH FDSLWDO SRVLWLRQ RI WKH PLFURILQDQFH
LQGXVWU\

38
)LJXUH7UHQGLQ0LFURILQDQFH,QGXVWU\&DSLWDO P 
'HF'HF

=







  
 


    'HF 'HF

7RWDO(TXLW\ P

 :KLOHWRWDOHTXLW\IRUWKHPLFURILQDQFHVHFWRUKDVEHHQRQDQXSZDUGWUHQGRYHU
WKHSDVWVHYHQ  \HDUVWKHGLVFRQQHFWEHWZHHQWKHOHYHORIFDSLWDODQGWKHGHPDQG
IRUPLFURILQDQFHVHUYLFHVDQGSURGXFWVKDVDGYHUVHO\DIIHFWHGWKHVHFWRU¶VDELOLW\
WRUHDOL]HLWVIXOOSRWHQWLDOLQWHUPVRIXQGHUZULWLQJPRUHPHDQLQJIXOEXVLQHVVDQG
LQFUHDVLQJ WKH GHSWK DQG EUHDGWK RI RXWUHDFK 7KH SUREOHP ZDV DJJUDYDWHG E\
OLPLWHGDFFHVVWRFDSLWDODVPRVWRIWKHGHYHORSPHQWSDUWQHUVZLWKGUHZIXQGLQJ
IURP=LPEDEZHGXHWRSHUFHLYHGKLJKFRXQWU\ULVN
 $EVHQFHRIFULWLFDOPDVVLQWHUPVRILQVWLWXWLRQDOLQYHVWRUVZLWKFDSDFLW\WRVXSSRUW
WKHPLFURILQDQFHVHFWRUFRQWLQXHVWRGDPSHQWKHVHFWRU¶VDELOLW\WRUHDOLVHLWVIXOO
SRWHQWLDOLQWHUPVRIRXWUHDFKDQGSRYHUW\UHGXFWLRQ

3RUWIROLR4XDOLW\

 $VDW'HFHPEHUWRWDOORDQVDPRXQWHGWRPLOOLRQUHSUHVHQWLQJD
LQFUHDVHIURPPLOOLRQDVDW'HFHPEHU7RWDODVVHWVIRU
WKHPLFURILQDQFHLQGXVWU\VXEVHTXHQWO\LQFUHDVHGE\WRPLOOLRQ
IURPPLOOLRQ
 7RWDO ORDQV RI  PLOOLRQ IRU WKH GHSRVLWWDNLQJ PLFURILQDQFH VXEVHFWRU
DFFRXQWHGIRURIWRWDOVHFWRUORDQVRIPLOOLRQDVDW'HFHPEHU
ZKLOHORDQVIRUWKHFUHGLWRQO\PLFURILQDQFHVXEVHFWRURIPLOOLRQ
DFFRXQWHGIRURIWRWDOVHFWRUORDQV

39
 7KHPLFURILQDQFHLQGXVWU\UHPDLQVKLJKO\FRQFHQWUDWHGDVWKHWRSPLFURILQDQFH
LQVWLWXWLRQVRXWRIWKHWRWDOLQVWLWXWLRQVDFFRXQWHGIRURIWKHWRWDOORDQ
SRUWIROLRIRUWKHVHFWRURIPLOOLRQ
 /RDQSRUWIROLRTXDOLW\IRUWKHPLFURILQDQFHVHFWRUPDUJLQDOO\GHWHULRUDWHGRYHUWKH
\HDUDVUHIOHFWHGE\WKHSRUWIROLRDWULVN 3D5!GD\V UDWLRRIFRPSDUHG
WRDVDW'HFHPEHUDQGDJDLQVWWKHLQWHUQDWLRQDOEHQFKPDUNRI
 7KHWUHQGLQWKHVHFWRU¶VWRWDOORDQVDQGSRUWIROLRDWULVNLVLQGLFDWHGLQ)LJXUH

) L J X U H    7U H Q G , Q  / R D Q 3 R U W I R O L R   3 D U  5 D W L R  ' H F 
 'HF
10.51%
$700.00 12.00%
11.28% 10.72% 10.96%

$600.00
10.00%
8.34% $632.67
$500.00
8.00%

$400.00 7.34%
6.00%
$387.87
$300.00

4.00%
$200.00
$206.28 $254.04
$187.16 2.00%
$100.00 $156.99

$0.00 0.00%
2014 2015 2016 2017 Dec-18 Dec-19

Total Loans ($M) Benchmark PaR (5%) PaR (%)




 7KHKHLJKWHQHGFUHGLWULVNSURILOHZLWKLQWKHLQGXVWU\LVPDLQO\DUHIOHFWLRQRIWKH
FKDOOHQJLQJ PDFURHFRQRPLF HQYLURQPHQW FKDUDFWHUL]HG E\ GHSUHFLDWLQJ ORFDO
FXUUHQF\DJDLQVWWKH8QLWHG6WDWHV'ROODU

40
 7RWDOPLFURILQDQFHORDQV
WR WKH SURGXFWLYH VHFWRU
GHFOLQHG E\  WR
PLOOLRQRYHUWKH
\HDUHQGHG'HFHPEHU
 DQG DFFRXQWHG IRU
 RI WKH
PLFURILQDQFH LQGXVWU\
ORDQVGRZQIURP
0
DVDW'HFHPEHU7KHGHFUHDVHLVDUHIOHFWLRQRILQFUHDVHGGHPDQGIRUORDQV
IRUFRQVXPSWLYHSXUSRVHVDVUHIOHFWHGLQ)LJXUH

)LJXUH0LFURILQDQFH,QGXVWU\/RDQ3RUWIROLR'LVWUXEXWLRQ
80.00%
73.39% 71.14%
70.00%
67.43%
60.00%
53.30% 54.24% 54.18%
50.00%
46.70% 45.76% 45.82%
40.00%

30.00% 32.57%
26.61% 28.86%
20.00%
14.96%
10.00%
5.00% 7.28%
0.00% 1.40%
1.41% 2.32%
2.21% 2.35%
2.28% 0.40% 1.11% 0.69%
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Productive Education Consumptive Health



 7RWDOORDQVIRU
HGXFDWLRQ SXUSRVHV
PDUJLQDOO\ GHFOLQHG
IURP  PLOOLRQ DV
DW WR  PLOOLRQ
GXULQJWKHVDPHSHULRG
ZKLOH FUHGLW DGYDQFHG
IRU KHDOWK SXUSRVHV

41
UHPDLQHG JHQHUDOO\ WKH VDPH DW  PLOOLRQ FRPSDUHG WR  PLOOLRQ LQWKH


3URILWDELOLW\DQG6XVWDLQDELOLW\«
 7KH PLFURILQDQFH VHFWRU
UHJLVWHUHGDLQFUHDVHLQ
QHWSURILWIURPPLOOLRQWR
PLOOLRQGXULQJWKHSHULRG
HQGHG  'HFHPEHU  7KH
LQFUHDVHZDVPDLQO\DWWULEXWHGWR
UHYDOXDWLRQJDLQVLQIL[HGDVVHWV
 $ WRWDO RI  PLFURILQDQFH
LQVWLWXWLRQV LQFOXGLQJ WZR   '70),V SRVWHG ORVVHV IRU WKH \HDU HQGHG 
'HFHPEHUGXHWRODFNRIFULWLFDOPDVVWRJHQHUDWHVXVWDLQDEOHLQFRPHRQWKH
EDFNRILQFUHDVHGRSHUDWLRQDOFRVWVLQDQLQIODWLRQDU\HQYLURQPHQW
 7KHVHFWRUKRZHYHUUHPDLQHGRSHUDWLRQDOO\VHOIVXVWDLQDEOHGXULQJWKH\HDUXQGHU
UHYLHZ DV UHIOHFWHG E\ DQ RSHUDWLRQDO VHOIVXIILFLHQF\ 266  UDWLR RI 
GRZQIURPDW'HFHPEHU
 7KHWUHQGLQWKHSURILWDELOLW\RIWKHPLFURILQDQFHVHFWRULVLQGLFDWHGLQWKHILJXUH
EHORZ

42
)LJXUH7UHQGLQ0LFURILQDQFH3URILWDELOLW\'HF 'HF

 

  

 

 
ZW$ MILLION

%AGE
 
   
 
  

  

 
     

$JU1HW3URILW =:PLOOLRQ 52$ 52(




 7KHDYHUDJHUHWXUQRQDVVHWV 52$ UDWLRLPSURYHGRYHUWKHUHYLHZSHULRGIURP
WR7KH5HWXUQRQHTXLW\ 52( UDWLRLPSURYHGIURPIRUWR
GXULQJWKHVDPHSHULRG

68%6(&725$/$1$/<6,6

&DSLWDODQG)XQGLQJLQWKH&UHGLWRQO\0LFURILQDQFH6XEVHFWRU

 $VDW'HFHPEHUWKHFUHGLWRQO\PLFURILQDQFHVXEVHFWRU¶VWRWDOHTXLW\RI
 PLOOLRQ UHSUHVHQWHG DQ  LQFUHDVH IURP  PLOOLRQ DV DW 
'HFHPEHUDQGDFFRXQWHGIRURIWKHWRWDOVHFWRUHTXLW\7KHJURZWK
LQFDSLWDOZDVODUJHO\RUJDQLFDWWULEXWHGWRUHWDLQHGHDUQLQJVLQUHVSHFWRIFUHGLW
RQO\PLFURILQDQFHLQVWLWXWLRQV
 $V DW  'HFHPEHU  HOHYHQ   FUHGLWRQO\ PLFURILQDQFH LQVWLWXWLRQV WKDW
ZHUHXQGHUFDSLWDOL]HGZHUHUHTXLUHGWRUHJXODUL]HWKHLUFDSLWDOSRVLWLRQVWRFRPSO\
ZLWKWKHPLQLPXPFDSLWDOUHTXLUHPHQWIRUFUHGLWRQO\PLFURILQDQFHLQVWLWXWLRQV
 )ROORZLQJWKHUHYLHZRIWKHPLQLPXPFDSLWDOUHTXLUHPHQWVIRUWKHPLFURILQDQFH
VHFWRUWR=:/HTXLYDOHQWRI86'IRUFUHGLWRQO\PLFURILQDQFHLQVWLWXWLRQV

43
DQG =:/ HTXLYDOHQW IRU 86' IRU GHSRVLWWDNLQJ PLFURILQDQFH
LQVWLWXWLRQVDOORSHUDWLQJPLFURILQDQFHLQVWLWXWLRQVZHUHGLUHFWHGWRVXEPLWWKHLU
UHFDSLWDOL]DWLRQSODQVWRPHHWWKHQHZPLQLPXPFDSLWDOUHTXLUHPHQWV

6XVWDLQDELOLW\DQG3URILWDELOLW\

 7KH PLFURILQDQFH VHFWRU UHPDLQHG RSHUDWLRQDOO\ VXVWDLQDEOH DV UHIOHFWHG E\ WKH
DYHUDJHRSHUDWLRQDOVHOIVXIILFLHQF\UDWLRRIDQGWKLVLVLQGLFDWLYHRIWKH
UHVLOLHQFHRIWKHVHFWRUDJDLQVWULVLQJRSHUDWLRQDOFRVWV
 $JJUHJDWHQHWSURILWIRUWKHPLFURILQDQFHLQGXVWU\PRUHWKDQGRXEOHGIURP
PLOOLRQWRPLOOLRQGXULQJWKH\HDUHQGHG'HFHPEHU7KHLQFUHDVH
ZDVPDLQO\DWWULEXWDEOHWRUHYDOXDWLRQJDLQV
 $WRWDORIPLFURILQDQFHLQVWLWXWLRQVLQFOXGLQJWZR  '70),VSRVWHGORVVHV
IRU WKH \HDU HQGHG  'HFHPEHU  GXH WR ODFN RI FULWLFDO PDVV WR JHQHUDWH
VXVWDLQDEOHLQFRPHRQWKHEDFNRILQFUHDVHGRSHUDWLRQDOFRVWVRFFDVLRQHGE\WKH
LQIODWLRQDU\HQYLURQPHQW
 $VDW'HFHPEHUWKHGHSRVLWWDNLQJPLFURILQDQFHVXEVHFWRUKDGPRELOL]HG
GHSRVLWV DPRXQWLQJ WR  PLOOLRQ UHSUHVHQWLQJ D  LQFUHDVH IURP WKH
 PLOOLRQ DV DW  'HFHPEHU  7KH FKDOOHQJLQJ PDFURHFRQRPLF
HQYLURQPHQWFRQWLQXHVWRPLOLWDWHDJDLQVWWKHLQGXVWU\¶VDELOLW\WRPRELOL]HGHSRVLWV
IURPWKHWDUJHWPDUNHWZKLFKLVODUJHO\WKHORZLQFRPHDQGPDUJLQDOL]HGVHJPHQWV
RIWKHSRSXODWLRQ

  68%6(&725$/$1$<6,6

 7KLVVHFWLRQSURYLGHVDQDQDO\VLVRIWKHWZRVXEVHFWRUVRIWKHPLFURILQDQFHVHFWRU
WKHGHSRVLWWDNLQJPLFURILQDQFHVXEVHFWRUDQGWKHFUHGLWRQO\PLFURILQDQFHVXE
VHFWRU

7KH'HSRVLW7DNLQJ0LFURILQDQFH6XE6HFWRU

 $VDW'HFHPEHUWKHVXEVHFWRUKDGILYH  RSHUDWLRQDO'70),VRQH  


'70),ZDVXQGHUFXUDWRUVKLSDQGWZR  '70),VZHUHVWLOOSXWWLQJLQSODFHWKH
UHTXLVLWHVWUXFWXUHVWRFRPPHQFHPLFURILQDQFHEXVLQHVV

44
 'XULQJ WKH SHULRGXQGHU UHYLHZ WKHGHSRVLWWDNLQJ PLFURILQDQFH '70),  VXE
VHFWRUUHFRUGHGDQLPSURYHPHQWLQDJJUHJDWHQHWSURILWWRWDODVVHWVFDSLWDOL]DWLRQ
OHYHOVSRUWIROLRDWULVNDQGRXWUHDFK
 7KHVXEVHFWRU¶VORDQSRUWIROLRPDUJLQDOO\LQFUHDVHGE\IURPPLOOLRQ
DVDW'HFHPEHUWRPLOOLRQDVDW'HFHPEHU
 7KHSHUIRUPDQFHRIWKH'70),VXEVHFWRULVLQGLFDWHGE\WKHILQDQFLDOVRXQGQHVV
LQGLFDWRUVDVDW'HFHPEHUVKRZQLQ7DEOH

7DEOH '70),V6XEVHFWRU.H\3HUIRUPDQFH,QGLFDWRUV
,QGLFDWRU 'HF -XQ 6HSW 'HF

P P P P


1HW&DSLWDO%DVH P 

7RWDO(TXLW\ P     


   
7RWDO$VVHWV P 

   


7RWDO/RDQV P 

   


1HW3URILW P 

$YHUDJH2SHUDWLRQDO6HOI
   
6XIILFLHQF\ 266 
7RWDO'HSRVLWV '70),V  P 
   

3RUWIROLRDW5LVN 3D5!GD\V     


1XPEHURI$FWLYH/RDQ&OLHQWV    
1XPEHURI2XWVWDQGLQJ/RDQV    
1XPEHURI%UDQFKHV    
52$    
52(    


'70),2XWUHDFK

 $OWKRXJKWKHQXPEHURIEUDQFKHVRI'70),VGHFOLQHGIURPWRGXULQJWKH
\HDUHQGHG'HFHPEHURXWUHDFKDVPHDVXUHGE\QXPEHURIDFWLYHFOLHQWV

45
LQFUHDVHGE\IURPDVDW'HFHPEHUWRDVDW
'HFHPEHU
 7KH VXEVHFWRU UHJLVWHUHG D  LQFUHDVH LQ WKH QXPEHU RI VDYLQJV DFFRXQWV
IURPDVDW'HFHPEHUWRDVDW'HFHPEHU
 2QH'70),FRPPDQGHGPDUNHWVKDUHRIWRWDOVXEVHFWRUVDYLQJVDFFRXQWV
DVDW'HFHPEHUODUJHO\DWWULEXWHGWRWKHLQVWLWXWLRQ¶VVWUDWHJLFWKUXVWRI
WDUJHWLQJ ZRPHQ WKDW DUH ILQDQFLDOO\ H[FOXGHG DQG ODUJHO\ PDUJLQDOLVHG  7KH
VDYLQJV DFFRXQWV IRU WKH VXEVHFWRU WKH UHVSHFWLYH PDUNHW VKDUH DUH LQGLFDWHG LQ
7DEOH
7DEOH1XPEHURI'HSRVLW$FFRXQWV
<HDU(QGHG'HFHPEHU 0DUNHW6KDUH  


1XPEHURI'HSRVLWV 
,QVWLWXWLRQ
$FFRXQWV
=LPEDEZH:RPHQ¶V0LFURILQDQFH 

%DQN
*HW%XFNV0LFURILQDQFH%DQN  
(PSRZHU%DQN  
6XFFHVV0LFURILQDQFH%DQN  
$IULFDQ&HQWXU\/LPLWHG  
7RWDO  

 7KHJURZWKWUDMHFWRU\LVODUJHO\DWWULEXWHGWRWKHDGRSWLRQRIWHFKQRORJ\LQGHOLYHU\
RI PLFURILQDQFH SURGXFWV DQG VHUYLFHV RQ WKH EDFN RI LQQRYDWLYH EXVLQHVV
GHYHORSPHQWDQGRXWUHDFKE\WKHVXEVHFWRU

 &DSLWDODQG)XQGLQJ

 7KH '70),V VXEVHFWRU UHJLVWHUHG D VLJQLILFDQW JURZWK LQ WKH OHYHO RI
FDSLWDOL]DWLRQDVUHIOHFWHGE\DLQFUHDVHLQDJJUHJDWHQHWFDSLWDOEDVHIURP
 PLOOLRQ DV DW 'HFHPEHU  WR  PLOOLRQ DV DW 'HFHPEHU

 7KHJURZWKLQQHWFDSLWDOEDVHZDVODUJHO\GULYHQE\UHWDLQHGHDUQLQJVDQGIUHVK
FDSLWDO LQMHFWLRQV E\ WZR JRYHUQPHQW RZQHG PLFURILQDQFH EDQNV ,W VKRXOG
KRZHYHUEHQRWHGWKDWWKHUHLVQHHGIRU'70),VWRSXWLQSODFHFDSLWDOSUHVHUYDWLRQ
VWUDWHJLHVLQYLHZRIWKHSUHYDLOLQJLQIODWLRQDU\SUHVVXUHV

46
 $V DW  'HFHPEHU  DOO RSHUDWLQJ GHSRVLWWDNLQJ PLFURILQDQFH LQVWLWXWLRQV
ZHUHLQFRPSOLDQFHZLWKWKHPLQLPXPUHJXODWRU\FDSLWDOUHTXLUHPHQWRIPLOOLRQ
DQGWKHFDSLWDODGHTXDF\UDWLRRI
 7UHQGVLQWKHFRUHFDSLWDOSHULQVWLWXWLRQLVGHSLFWHGLQ7DEOH

7DEOH'70),6XE6HFWRU&DSLWDOL]DWLRQ PLOOLRQ 
,QVWLWXWLRQ &RUH&DSLWDODVDW &RUH&DSLWDODVDW
-XQH P  'HF P 

*HW%XFNV0LFURILQDQFH%DQN  


$IULFDQ&HQWXU\/LPLWHG  
=LPEDEZH:RPHQ¶V0LFURILQDQFH%DQN  
(PSRZHU%DQN/LPLWHG  
6XFFHVV0LFURILQDQFH%DQN  
/LRQ)LQDQFH XQGHUFXUDWRUVKLS   
7RWDO  


 *HWEXFNV 0LFURILQDQFH %DQN DFFRXQWHG IRU  RI WKH WRWDO VXEVHFWRU
FDSLWDOLVDWLRQ
 7RWDO DVVHWV LQ WKH VXEVHFWRU UHJLVWHUHG DQ  JURZWK RYHU WKH \HDU IURP
PLOOLRQDVDW'HFHPEHUWRPLOOLRQDVDW'HFHPEHU


 'HSRVLW0RELOL]DWLRQ

 'XULQJ WKH SHULRG XQGHU UHYLHZ WKH VXEVHFWRU UHJLVWHUHG D  JURZWK LQ
GHSRVLWEDVHIURPPLOOLRQWRPLOOLRQ2QH'70),ZLWKWRWDOGHSRVLWV
RIPLOOLRQDFFRXQWHGIRURIWRWDOVXEVHFWRUGHSRVLWV

 /HQGLQJDQG3RUWIROLR4XDOLW\

 7KHVXEVHFWRUUHJLVWHUHGDPDUJLQDOLQFUHDVHRILQWKHWRWDOORDQERRNIURP
PLOOLRQDVDW'HFHPEHUWRPLOOLRQDVDW'HFHPEHU
7KH PDUJLQDO JURZWK LQ WRWDO ORDQV LV UHIOHFWLYH RI IDOOLQJ GHPDQG IRU ORDQV RQ
DFFRXQWRILQFUHDVLQJLQWHUHVWUDWHVGHFOLQLQJGLVSRVDEOHLQFRPHVIRUFOLHQWVDQG
GHFOLQLQJEXVLQHVVIRU60(VDPLGVWDQLQIODWLRQDU\HQYLURQPHQW

47
 7KHVXEVHFWRUUHFRUGHGDQLPSURYHPHQWLQWKHDVVHWTXDOLW\DVHYLGHQFHGE\WKH
GHFUHDVH LQ WKH 3$5! GD\V IURP  LQ 'HFHPEHU  WR  LQ
'HFHPEHU

3URILWDELOLW\IRUWKH'70)V6XEVHFWRU

 7KHDJJUHJDWHQHWSURILWIRUWKH'70),VVXEVHFWRULQFUHDVHGE\IURP
PLOOLRQWRPLOOLRQGXULQJWKH\HDUHQGHG'HFHPEHUODUJHO\
GULYHQE\UHYDOXDWLRQUHVHUYHV
 7KHVXEVHFWRUUHJLVWHUHGDPDUJLQDOLPSURYHPHQWLQWKHDYHUDJH2SHUDWLRQDO6HOI
6XIILFLHQF\ 266 UDWLRIURPDVDW'HFHPEHUWRDVDW
'HFHPEHU
 7KHDYHUDJHRSHUDWLRQDOVHOIVXIILFLHQF\UDWLRZDVZHLJKHGGRZQE\WZR'70),V
=LPEDEZH :RPHQ¶V 0LFURILQDQFH %DQN DQG (PSRZHUEDQN /LPLWHG ZKLFK
FRPPHQFHGRSHUDWLRQVLQDQGDUHVWLOOEXLOGLQJWKHUHTXLUHGFULWLFDOPDVVWR
VWHHUWKHLQVWLWXWLRQVRXWRIWKHFXUUHQWORVVPDNLQJSRVLWLRQVDVVRFLDWHGZLWKVWDUW
XSFRVWV7KH%DQNFRQWLQXHVWRXUJH'70),VIRUPXODWHVWUDWHJLHVWKDWHQKDQFH
SURILWDELOLW\

  3HUIRUPDQFHRI&UHGLW2QO\0LFURILQDQFH,QVWLWXWLRQV«
 7KHFUHGLWRQO\PLFURILQDQFHVXEVHFWRUFRQWLQXHGRQDQXSZDUGWUDMHFWRU\GHVSLWH
DGYHUVHPDFURHFRQRPLFHQYLURQPHQWLQWHUPVRIWRWDOORDQVDJJUHJDWHHTXLW\DQG
YDOXHRIORDQVWRIHPDOHERUURZHUV
 $ VXPPDU\ RI WKH NH\ SHUIRUPDQFH LQGLFDWRUV IRU WKH FUHGLWRQO\ PLFURILQDQFH
VXEVHFWRUDVDW'HFHPEHULVVKRZQLQ7DEOH

7DEOH&UHGLWRQO\0LFURILQDQFH,QVWLWXWLRQV.H\3HUIRUPDQFH,QGLFDWRUV
,QGLFDWRU 'HF 'HF

1XPEHURI/LFHQVHG,QVWLWXWLRQV  

7RWDO/RDQV P   

7RWDO$VVHWV P   

48
,QGLFDWRU 'HF 'HF

7RWDO(TXLW\ P   

1HW3URILW P   

$YHUDJH2SHUDWLRQDO6HOI6XIILFLHQF\ 266   

3RUWIROLRDW5LVN 3D5!GD\V     


1XPEHURI$FWLYH/RDQ&OLHQWV  
1XPEHURI2XWVWDQGLQJ/RDQV  
1XPEHURI%UDQFKHV  

1XPEHURI:RPHQ&OLHQWV  


9DOXHRI/RDQVWR:RPHQ P   

 3RUWIROLRDW5LVN>@GD\V7KHYDOXHRIDOOORDQVRXWVWDQGLQJWKDWKDYHRQHRUPRUHLQVWDOPHQWVRISULQFLSDO
SDVWGXHPRUHWKDQ>@GD\V7KLVLQFOXGHVWKHHQWLUHXQSDLGSULQFLSDOEDODQFHLQFOXGLQJERWKWKHSDVWGXHDQG
IXWXUHLQVWDOPHQWVEXWQRWDFFUXHGLQWHUHVW,WDOVRLQFOXGHVORDQVWKDWKDYHEHHQUHVWUXFWXUHGRUUHVFKHGXOHG


&UHGLW2QO\0LFURILQDQFH2XWUHDFK

 7KHPLFURILQDQFHLQGXVWU\UHFRUGHGDQLQFUHDVHLQWKHEUDQFKQHWZRUNIURPDV
DW'HFHPEHUWREUDQFKHVDVDW'HFHPEHUGXHWRDQLQFUHDVH
LQ WKH QXPEHU RI UHJLVWHUHG PLFURILQDQFH LQVWLWXWLRQV DQG H[SDQVLRQ RI EUDQFK
QHWZRUNVE\VRPHLQVWLWXWLRQV
 $ WRWDO RI WZHQW\WKUHH LQVWLWXWLRQV KDG WZHQW\   RU PRUH EUDQFKHV HDFK
UHSUHVHQWLQJRIWRWDOVXEVHFWRUEUDQFKHV
 7KHQXPEHURIDFWLYHFOLHQWVIRUWKHFUHGLWRQO\PLFURILQDQFHVXEVHFWRURI
DV DW  'HFHPEHU  UHSUHVHQWHG D  LQFUHDVH IURP  DV DW 
'HFHPEHUDQGDFFRXQWHGIRURIWRWDOQXPEHURIDFWLYHFOLHQWVLQWKH
PLFURILQDQFHVHFWRU
 2YHUWKHVDPHSHULRGWKHQXPEHURIIHPDOHERUURZHUVLQFUHDVHGPDUJLQDOO\IURP
 DV DW  'HFHPEHU  WR  DV DW  'HFHPEHU  DQG
DFFRXQWHGIRURIWKHWRWDOVXEVHFWRUDFWLYHFOLHQWV7KHYDOXHRIORDQVWR
ZRPHQDPRXQWHGWRPLOOLRQUHSUHVHQWLQJRIWRWDOLQGXVWU\ORDQVRI
PLOOLRQDVDW'HFHPEHU

49
 7KHQXPEHURIIHPDOHERUURZHUVVHUYHGE\WKHFUHGLWRQO\PLFURILQDQFHVXEVHFWRU
LQFUHDVHGE\IURPWRDQGDFFRXQWHGIRURIWKHWRWDO
VHFWRUIHPDOHERUURZHUV
 7KHYDOXHRIORDQVWRIHPDOHERUURZHUVLQFUHDVHGE\RYHUWKHUHYLHZSHULRG
IURPPLOOLRQDVDW'HFHPEHUWRPLOOLRQDVDW'HFHPEHU


&DSLWDO )XQGLQJLQWKH&UHGLW2QO\0LFURILQDQFH6XE6HFWRU

 7KHFUHGLWRQO\PLFURILQDQFHVXEVHFWRUUHJLVWHUHGDQLQFUHDVHLQHTXLW\
RYHUWKHUHYLHZSHULRGIURPPLOOLRQDVDW'HFHPEHUWR
PLOOLRQDVDW'HFHPEHU
 7KH LQFUHDVH LQ WKH FDSLWDOL]DWLRQ OHYHOV ZDV DWWULEXWHG PDLQO\ WR UHYDOXDWLRQ
UHVHUYHVDQGUHWDLQHGHDUQLQJVE\VRPHFUHGLWRQO\PLFURILQDQFHLQVWLWXWLRQV
 /DFN RI DGHTXDWH IXQGLQJ FRQWLQXHV WR GDPSHQ WKH VXEVHFWRU¶V DELOLW\ WR
XQGHUZULWH PRUH PHDQLQJIXO EXVLQHVV DQG WR LQFUHDVH WKH GHSWK DQG EUHDGWK RI
RXWUHDFK
 7KH SURPXOJDWLRQ RI WKH 0LFURILQDQFH $PHQGPHQW $FW 1R RI  ZKLFK
SURYLGHVIRUSHUSHWXDOOLFHQFHVLVH[SHFWHGWRHQKDQFHFRQILGHQFHLQWKHVHFWRUDQG
WR DWWUDFW ORQJWHUP LQYHVWPHQW IURP ERWK GRPHVWLF DQG RIIVKRUH LQVWLWXWLRQDO
LQYHVWRUV

&UHGLW2QO\0LFURILQDQFH6XE6HFWRU/HQGLQJDQG3RUWIROLR4XDOLW\

 7KHVXEVHFWRUUHJLVWHUHGDLQFUHDVHLQWKHVL]HRIWKHORDQSRUWIROLRIURP
PLOOLRQDVDW'HFHPEHUWRPLOOLRQDVDW'HFHPEHU
ODUJHO\GULYHQE\LQFUHDVHGGHPDQGIRUPLFURILQDQFHSURGXFWVDQGVHUYLFHV
QXPEHU RI ERUURZHUV DV KRXVHKROGV VRXJKW WR IXQG WKHLU PLFUR EXVLQHVVHV DQG
VPRRWKWKHLUFRQVXPSWLRQRQWKHEDFNGURSRIDK\SHULQIODWLRQDU\HQYLURQPHQW
 $VVHWTXDOLW\LQWKHVXEVHFWRUJHQHUDOO\UHPDLQHGVWDEOHIRUSHULRGXQGHUUHYLHZ
DV UHIOHFWHG E\ WKH SRUWIROLRDWULVN 3D5‫ ޓ‬GD\V  UDWLR RI  DV DW 

50
'HFHPEHU  FRPSDUHG WR  DV DW  'HFHPEHU  DJDLQVW WKH
LQWHUQDWLRQDOEHQFKPDUNRI

3URILWDELOLW\IRUWKH&UHGLWRQO\0LFURILQDQFH6XEVHFWRU

 7KH FUHGLWRQO\ PLFURILQDQFH VXEVHFWRU UHJLVWHUHG DQ DJJUHJDWH QHW SURILW RI
 PLOOLRQ IRU \HDU HQGHG  'HFHPEHU  XS IURP  PLOOLRQ IRU
SHULRGHQGHG'HFHPEHUUHSUHVHQWLQJDLQFUHDVHRYHUWKH\HDU
 7KH VXEVHFWRU UHPDLQHG RSHUDWLRQDOO\ VXVWDLQDEOH ZLWK DQ DYHUDJH 2SHUDWLRQDO
6HOI 6XIILFLHQF\ 266  UDWLR RI  DV DW  'HFHPEHU  GRZQ IURP
DVDW'HFHPEHU




















51
 &+$37(5 287/22.

 0LFURILQDQFH LQVWLWXWLRQV DUH H[SHFWHG WR FRQWLQXH FRQWULEXWLQJ WR ILQDQFLDO
LQFOXVLRQ DQG HFRQRPLF GHYHORSPHQW +RZHYHU WKH GLVUXSWLYH HIIHFWV RI WKH
&29,'SDQGHPLFPD\LPSDFWRQWKHJURZWKDQGSHUIRUPDQFHRIWKHVHFWRU
DQGLWVRYHUDOOFRQWULEXWLRQWRWKHQDWLRQDOGHYHORSPHQWDJHQGD
 *OREDOO\SRYHUW\OHYHOVDUHH[SHFWHGWREHRQWKHXSZDUGWUHQGDQGWRLQFUHDVH
E\ZLWKRIWKH$IULFDQSRSXODWLRQH[SHFWHGWRIDOOXQGHUWKHSRYHUW\
GDWXPOLQHDVWKHJOREDOHFRQRP\GHDOVZLWKWKHFRQYXOVLYHFRYLGLQGXFHG
VKRFN
 'HPDQG IRU PLFURILQDQFH SURGXFWV DQG VHUYLFHV LV OLNHO\ WR LQFUHDVH DV SRVW
FRYLGUDWLRQDOL]DWLRQLQPRVWFRPSDQLHVSOXQJHPRUHRI WKHLUZRUNHUVLQWR
WKHµXQHPSOR\HG¶SRRO
 *LYHQVXVSHQVLRQRIRSHUDWLRQVE\WKHPDMRULW\RIPLFURILQDQFHSURYLGHUVGXH
WR WKH QDWLRQDO ORFNGRZQ PLFURILQDQFH LQVWLWXWLRQV DUH OLNHO\ JRLQJ WR IRFXV
PRUHRQUHWHQWLRQRIH[LVWLQJFOLHQWVWKDQUHDFKLQJRXWWRQHZFOLHQWV$VDUHVXOW
GLVEXUVHPHQWVWRH[LVWLQJFOLHQWVZLOOFRQWLQXHEXWFDXWLRQZLOOEHH[HUFLVHGZLWK
UHJDUGVWRH[WHQVLRQRIORDQVWRQHZFXVWRPHUV
 7KHQRQSD\PHQWRIORDQVE\VRPHFOLHQWVZKRKDYHQRWEHHQDEOHWRFRQGXFW
EXVLQHVVGXHWRWKH&RYLGSDQGHPLFORFNGRZQSURWRFROVLVOLNHO\WRLPSDFW
QHJDWLYHO\RQWKHTXDOLW\RIWKHPLFURILQDQFHORDQSRUWIROLR
 )XUWKHUODFNRIDGHTXDWHIXQGLQJDQGFDSLWDOLVDWLRQWKUHDWHQVWKHYLDELOLW\DQG
VXVWDLQDELOLW\RIWKHVHFWRUZKLFKLQWKHDEVHQFHRIFRYLGUHOLHIIXQGVPD\
FXOPLQDWH LQ WKH GHFLPDWLRQ RI WKH VHFWRU WKHUHE\ UHYHUVLQJ WKH JDLQV RI WKH
ILQDQFLDOLQFOXVLRQLQLWLDWLYHVWRGDWH
 +LJK RSHUDWLRQDO FRVWV LQ WKH EDFNGURS RI D K\SHULQIODWLRQDU\ HQYLURQPHQW LV
H[SHFWHGWRGDPSHQSURVSHFWVRIKLJKSURILWDELOLW\LQWKHVHFWRUDQGDUHOLNHO\WR
WKUHDWHQ WKH YLDELOLW\ DQG VXVWDLQDELOLW\ RI VRPH RI WKH SOD\HUV LQ WKH
PLFURILQDQFHVHFWRU

52
 7KHVH GHYHORSPHQWV ZLOO RI QHFHVVLW\ FDOO IRU D FKDQJH LQ WKH PLFURILQDQFH
PRGHO XVHG E\ WKH PDMRULW\ RI PLFURILQDQFH LQVWLWXWLRQV LQ =LPEDEZH 7KH
µKLJKWRXFK¶ DSSURDFK WKURXJK SK\VLFDO LQWHUDFWLRQ ZLWK PLFURILQDQFH FOLHQWV
PD\QRORQJHUEHVXIILFLHQWIRUVXVWDLQDEOHPLFURILQDQFLQJ7KHVRFLDOGLVWDQFLQJ
SURWRFROVKDYHEURXJKWWRWKHIRUHWKHLPSRUWDQFHRIWHFKQRORJ\LQWKHGHOLYHU\
RIPLFURILQDQFHVHUYLFHVDQGSURGXFWV
 *RLQJ IRUZDUG D FRPELQDWLRQ RI WKH µKLJKWRXFK¶ DSSURDFK DQG µKLJKWHFK¶
DSSURDFKLVH[SHFWHGWR\LHOGEHWWHUUHVXOWVWKDQWKHKLJKWRXFKPRGHORQLWVRZQ
 ,Q WKLV UHJDUG PLFURILQDQFH LQVWLWXWLRQV DUH XUJHG WR EURDGHQ WKHLU SRWHQWLDO
RIIHULQJVDQGFDSDELOLWLHVWKURXJKVWUDWHJLFSDUWQHUVKLSVZLWKRWKHUVWDNHKROGHUV
VXFKDVILQWHFKFRPSDQLHVDQGPRELOHQHWZRUNSURYLGHUV7KHUHLVDOVRQHHGIRU
0),V WR UHFRQILJXUH WKHLU EXVLQHVV PRGHOV WRZDUGV JUHDWHU HIILFLHQF\ DQG
HIIHFWLYHQHVVLQYLHZRIUHGXFHGEXVLQHVVYROXPHV7KLVLQFOXGHVDGRSWLRQRI
WHFKQRORJLFDOYLUWXDO SODWIRUPV 6WUDWHJLF IOH[LELOLW\ DQG DJLOLW\ DOVR EHFRPH
LPSHUDWLYHVLQVXFKDODQGVFDSH
 7KH SURPXOJDWLRQRI WKH 0LFURILQDQFH $PHQGPHQW $FW &KDSWHU ZKLFK
SURYLGHV IRU LVVXDQFH RI SHUSHWXDO OLFHQFHV LV H[SHFWHG WR LPSURYH LQYHVWRU
FRQILGHQFH LQ WKH PLFURILQDQFH VHFWRU DQG IDFLOLWDWH DWWUDFWLRQ RI ORQJ WHUP
IXQGLQJZKLFKZRXOGVSXUJURZWKRIWKHPLFURILQDQFHLQGXVWU\
 7KH %DQN ZLOO FRQWLQXH WR SXW LQ SODFH SROLF\ PHDVXUHV WKDW PDLQWDLQ WKH
VRXQGQHVVDQGLQWHJULW\RIWKHPLFURILQDQFHVHFWRUDQGIDFLOLWDWHWKHDWWDLQPHQW
RI WKH 6XVWDLQDEOH 'HYHORSPHQW *RDOV 6'*V  DV ZHOO DV GHYHORSPHQW RI
VXVWDLQDEOHILQDQFLDOV\VWHPIRUWKHORZLQFRPHDQGWKHPDUJLQDOLVHGJURXSV
 0LFURILQDQFHLQVWLWXWLRQVDUHH[SHFWHGWRUHDOLJQWKHLUIXQGLQJDQGFDSLWDOLVDWLRQ
OHYHOV LQ OLQH ZLWK QHZO\ VHW PLQLPXP FDSLWDO WKUHVKROG DQG WKH G\QDPLF
RSHUDWLQJHQYLURQPHQWLQRUGHUWRHQVXUHYLDELOLW\DQGVXVWDLQDELOLW\
 0LFURILQDQFH LQVWLWXWLRQV DUH HQFRXUDJHG WR FRQWLQXRXVO\ HQKDQFH WKHLU ULVN
PDQDJHPHQWV\VWHPVDQGEXLOGPLFURILQDQFHULVNPDQDJHPHQWVNLOOVLQRUGHUWR
HIIHFWLYHO\PDQDJHWKHSUHGLFWHGKHLJKWHGFUHGLWULVNLQWKHVHFWRU

53
 7KH LQWURGXFWLRQ RI %6$ V\VWHP IRU WKH VXEPLVVLRQ RI TXDUWHUO\ UHWXUQV DQG
FRQWLQXHG DFFHVV DQG XWLOL]DWLRQ RI WKH &UHGLW 5HIHUHQFH V\VWHP DQG WKH
RSHUDWLRQDOL]DWLRQ RI WKH FROODWHUDO UHJLVWU\ FRXSOHG ZLWK FRQWLQXRXV
LPSURYHPHQWV LQ LQGLYLGXDO LQVWLWXWLRQV¶ LQWHUQDO SURFHVVHV LV H[SHFWHG WR
LPSURYHWKHVHFWRU¶VSRUWIROLRTXDOLW\DQGRXWUHDFK








54
$33(1',&(6

$33(1',;)81&7,21$1'25*$1,=$7,212)%$1.683(59,6,21
',9,6,21


)XQFWLRQRI%DQN6XSHUYLVLRQ'LYLVLRQ
7KH5HVHUYH%DQNRI=LPEDEZHLQWHUPVRI6HFWLRQRIWKH5HVHUYH%DQN$FW[Chapter
22:15],LVPDQGDWHGWRIRVWHUWKHVWDELOLW\DQGSURSHUIXQFWLRQRIWKH=LPEDEZHDQ)LQDQFLDO
6\VWHPDVZHOODVVXSHUYLVLRQRIEDQNLQJLQVWLWXWLRQVDPRQJRWKHUV

2UJDQL]DWLRQRIWKH%DQN6XSHUYLVLRQ'LYLVLRQ %6' 
,Q D ELG WR IXOILOO LWV PDQGDWH WR IRVWHU DQG PDLQWDLQ ILQDQFLDO VWDELOLW\ %DQN 6XSHUYLVLRQ
'LYLVLRQLVRUJDQL]HGLQWRVHYHQ  GHSDUWPHQWVDVLOOXVWUDWHGEHORZ



%$1.683(59,6,21±25*$1,6$7,21$/
6758&785(





55

9LVLRQRI%DQN6XSHUYLVLRQ'LYLVLRQ
7REHFRPHDQHIIHFWLYHHIILFLHQWDQGGHSHQGDEOHUHJXODWRU\DQGVXSHUYLVRU\DXWKRULW\IRU
WKHILQDQFLDOVHFWRUVXSSRUWLYHRIHFRQRPLFGHYHORSPHQWLQ=LPEDEZH


0LVVLRQRI%DQN6XSHUYLVLRQ'LYLVLRQ

7R SURPRWH DQG PDLQWDLQ WKH VDIHW\ DQG VRXQGQHVV RI WKH ILQDQFLDO V\VWHP WKURXJK
SURDFWLYHDQGULJRURXVUHJXODWLRQDQGVXSHUYLVLRQLQOLQHZLWKLQWHUQDWLRQDOEHVWSUDFWLFH







































56


$33(1',;683(59,625<0(7+2'2/2*,(6)257+(0,&52),1$1&(

6(&725

 ,Q DQ HIIRUW WR SURPRWH GHYHORSPHQW RI D VXVWDLQDEOH LQFOXVLYH ILQDQFLDO
V\VWHP IRU WKH ORZ LQFRPH DQG PDUJLQDOLVHG JURXSV LQ OLQH ZLWK WKH 1DWLRQDO
)LQDQFLDO ,QFOXVLRQ 6WUDWHJ\ DQG WKH EURDGHU QDWLRQDO REMHFWLYHV WR EHFRPH D
PLGGOH LQFRPH HFRQRP\ E\  WKH 5HVHUYH %DQN RI =LPEDEZH HPSOR\V
YDULRXV VXSHUYLVRU\ PHWKRGRORJLHV ZKLFK DUH FRQWLQXRXVO\ UHILQHG LQ OLQH ZLWK
LQWHUQDWLRQDOEHVWSUDFWLFH
 &RJQLVDQWRIWKHYDULRXVPLFURILQDQFHLQVWLWXWLRQVWKDWSURYLGHDFFHVVWRILQDQFH
WR WKH ORZ LQFRPH DQG PDUJLQDOLVHG JURXSV WKH 5HVHUYH %DQN DSSOLHV QRQ
SUXGHQWLDOVXSHUYLVLRQRQFUHGLWRQO\PLFURILQDQFHLQVWLWXWLRQVDQGSUXGHQWLDO
VXSHUYLVLRQRQGHSRVLWWDNLQJPLFURILQDQFHLQVWLWXWLRQV

3UXGHQWLDO6XSHUYLVLRQ
 3UXGHQWLDO UHJXODWLRQ RU VXSHUYLVLRQ JRYHUQV WKH ILQDQFLDO VRXQGQHVV RI
OLFHQVHG GHSRVLWWDNLQJ PLFURILQDQFH LQVWLWXWLRQV LQ RUGHU WR SUHYHQW ILQDQFLDO
V\VWHPLQVWDELOLW\DQGORVVHVWRVPDOOXQVRSKLVWLFDWHGGHSRVLWRUV
 8QGHU SUXGHQWLDO VXSHUYLVLRQ WKH 5HVHUYH %DQN HPSOR\V WKH IROORZLQJ
VXSHUYLVRU\PHWKRGRORJLHV
D  5LVNEDVHG VXSHUYLVLRQ ZKLFK LV D VWUXFWXUHG VXSHUYLVRU\ SURFHVV
GHVLJQHG WR LGHQWLI\ NH\ ULVN IDFWRUV WKURXJK TXDOLWDWLYH DQG TXDQWLWDWLYH
DVVHVVPHQWRIDQLQVWLWXWLRQ¶VULVNSURILOHDVVHVVWKHDGHTXDF\RIWKHULVN
PDQDJHPHQWSROLFLHVDQGSUDFWLFHVWKDWDUHXVHGWRPLWLJDWHULVNDQGIRFXV
VXSHUYLVRU\ UHVRXUFHV LQFOXGLQJ H[DPLQDWLRQ WLPH  EDVHG RQ WKH ULVN
FKDUDFWHULVWLFV RI WKH LQVWLWXWLRQV 7KH DSSURDFK UHTXLUHV VWURQJ
XQGHUVWDQGLQJ RI WKH LQVWLWXWLRQ DQG IRFXVHV RQ YDOLGDWLQJ PDQDJHPHQW¶V
DELOLW\WRLGHQWLI\PHDVXUHPRQLWRUDQGFRQWUROULVNV
E  &RQVROLGDWHG6XSHUYLVLRQZKHUHDPLFURILQDQFHLQVWLWXWLRQLVLQDEDQNLQJ
JURXS7KHDSSURDFKHYDOXDWHVWKHVWUHQJWKRIWKHLQGLYLGXDOPLFURILQDQFH
LQVWLWXWLRQ DQG WKH HQWLUH EDQNLQJ JURXS WDNLQJ FRJQL]DQFH RI WKH ZKROH
VSHFWUXPRIULVNVWKDWDIIHFWDQLQVWLWXWLRQZKHWKHUWKHVHULVNVDUHFDUULHGLQ
WKHERRNVRIWKHUHJXODWHGHQWLW\RUUHODWHGSDUWLHV&RQVROLGDWHGVXSHUYLVLRQ

57
SURPRWHVWKHRYHUDOOHYDOXDWLRQERWKTXDOLWDWLYHO\DQGTXDQWLWDWLYHO\RIWKH
VWUHQJWKRIDEDQNLQJJURXSWRZKLFKDPLFURILQDQFHLQVWLWXWLRQEHORQJVLQ
RUGHUWRXQGHUVWDQGWKHUHODWLRQVKLSDPRQJWKHHQWLWLHVDQGWRDVVHVVWKH
SRWHQWLDO LPSDFW RI RWKHU HQWLWLHV LQ WKH JURXS RQ WKH RSHUDWLRQV RI WKH
EDQNLQJLQVWLWXWLRQ

1RQ3UXGHQWLDO6XSHUYLVLRQ
 1RQSUXGHQWLDOVXSHUYLVLRQLVDSSOLHGWRFUHGLWRQO\PLFURILQDQFHLQVWLWXWLRQVDQG
IRFXVHVRQWKHEXVLQHVVRSHUDWLRQVDQGFRQGXFWRIFRQGXFWWRHQVXUHFRPSOLDQFH
ZLWKFRQVXPHUSURWHFWLRQUHJXODWLRQVDQGDQWLPRQH\ODXQGHULQJDQGILQDQFLQJRI
WHUURULVW UHJXODWLRQV 1RQSUXGHQWLDO VXSHUYLVLRQ LQFOXGHV UHJLVWUDWLRQ RI WKH
LQVWLWXWLRQVWROHQGOHJDOO\SHULRGLFVXEPLVVLRQRIILQDQFLDOLQIRUPDWLRQSUHYHQWLRQ
RIIUDXGDQGILQDQFLDOFULPHVFRQVXPHUSURWHFWLRQDQGZLGHDUUD\RIFURVVFXWWLQJ
LVVXHVPLFURILQDQFHLVVXHVRQWUDQVIRUPDWLRQIURPRQHLQVWLWXWLRQDO

58
$33(1',;5(*,67(5('0,&52),1$1&(,167,787,216$6$7
'(&(0%(5

&5(',721/< 3+<6,&$/$''5(66 &217$&7180%(5 6  (0$,/$''5(6(6


,167,787,21
$%&(DV\/RDQVWD%DQF(DV\ 6KRS1XPEHU=,05(&HQWUH  DPXUDKZD#EDQFDEFFRP 

/RDQV 3ULYDWH /WG /HRSROG7DNDZLUD6WUHHW+DUDUH


$%&0RQH\OHQGHUV 3YW /WG +DWILHOG+RXVH6HNH5RDG  LQIR#DEFPRQH\OHQGHUVFR]Z
*UDQLWHVLGH+DUDUH E\URQ#DEFPRQH\OHQGUHVFR]Z
$LUPRGH,QYHVWPHQWV 3YW /WG 6XLWH+DJJHUPDQ%XLOGLQJ&QU  DLUPRGHPLFUR#JPDLOFRP 

WK6WUHHW UG$YHQXH.ZHNZH 


$NLOL&DSLWDO 3ULYDWH /LPLWHG UG)ORRU%HYUHUO\&RXUW&QUWK  SHDUVRQPDGDUD#JPDLOFRP
6WUHHWDQG1HOVRQ0DQGHOD WDNDLWHL#JPDLOFRP 

+DUDUH
$QHSKHQ,QYHVWPHQWV 3YW /WG 6KRS1XPEHU   VWDQV\EDUD#JPDLOFRP 

+LJKJOHQ6KRSSLQJ&HQWUH 
+DUDUH

$QWKLOO&DSLWDO 3YW /LPLWHG 6XLWHWKIORRU$IULFD  DQWKLOOFDSLWDO#\DKRRFRP


+RXVH)LIH$YHQXH%XODZD\R  WLFKPDNRQL#\DKRRFRP
$SSRLQWHG5HVWRUDWLRQ)LQDQFH :DLOHUV%XLOGLQJ1R+DUDUH  QPXWVYDLUR#\DKRRFRP
3ULYDWH /LPLWHG 6WUHHW+DUDUH
$TXDSDYH,QYHVWPHQWV 3YW /WG 6XLWHWK)ORRU&DXVHZD\  $TXDSDYHLQYHVW#JPDLOFRP
%XLOGLQJ+DUDUH
$UGHXU)LQDQFLDO6HUYLFHV 6XLWVW)ORRU&QUWK$YH  DUGHXUIV#JPDLOFRP 

3ULYDWH /LPLWHG )RXUWK6W0DVL\H%XVLQHVV6XLWHV


+DUDUH
$VKOHHQ,QYHVWPHQWV 3ULYDWH  UG)ORRU:HVW:LQJ  MXV\WDG\D#\DKRRFRP
/LPLWHG &RQVWUXFWLRQ+RXVH  MXVWLQ#DVKOHHQPLFURFR]Z
/HRSROG7DNDZLUD6WUHHW+DUDUH ORDQV#DVKOHHQPLFURFR]Z 

$[DILQ 3ULYDWH /LPLWHG (GPRQGV5RDG%HOYHGHUH  PRQH\#D[DILQFRP


+DUDUH
%DDUG\0LFUR&DSLWDO 3YW /WG 2IILFHWK)ORRU&RQFWUXFWLRQ  EDDUG\PLFURFDSLWDO#JPDLOFRP 

+RXVH/HRSROG7DNDZLUD
6WUHHW+DUDUH
%DREDE)LQDQFLDO6HUYLFHV  3DUN/DQH+DUDUH  PLDPV#EDREDEE]
IRUPHUO\0LFURFUHG 3YW /WG QPXFKHQD#EDREDEE]UQMRNR\D#ERD
EREE]

%DWDQDLWRVDYHDQG,QYHVWPHQWV +DUYH\%URZQ0LOWRQ3DUN  LQIR#EDWDQDLWRVDYHFR]Z


+DUDUH
%HQHIDFWR,QYHVWPHQWV 3YW 2IILFH*HOIDQG+RXVH&QU  EHQHIDFWRLQYHVWPHQWV#JPDLOFRP 

/LPLWHG 6SHNH )LUVW6WUHHW+DUDUH


%LVTXLFN)LQDQFH 3YW /WG 7ZHHG5RDG(DVWOHD+DUDUH  ELVTXLFN#JPDLOFRP
%ROGIXQGV)LQDQFLDO6ROXWLRQV 6HORXV$YHQXH+DUDUH  PHQDUGG]LNLWL#JPDLOFRP
3ULYDWH /LPLWHG LQIR#EROGIXQGVFR]Z
%OXHJURXVH)LQDQFH 3YW /WG &KDUORWWH%URRNH  3DPHODJRWRUH#JPDLOFRP 

%RUURZGDOH+DUDUH

%ULGJHYHVW&DSLWDO 3YW /WG VW)ORRU7DNXUD+RXVH.ZDPH  DFKLWDPELUD#EULGJHYHVWFR]Z


1NUXPDK+DUDUH  PUHYDL#EULGJHYHVWFR]Z
&DVK&RQQHFW)LQDQFH 3YW /WG 0DVV0HGLD+RXVH6HORXV  FKDQGLQD#FDVKFRQQHFWFR]Z
$YHQXH+DUDUH PWDNDHQGHVD#FDVKFRQQHFWFR]Z
LQIR#FDVKFRQQHFWFR]Z 

&DVK'LUHFW 3YW /WG )LIWK6WUHHW*ZHUX  JRGLUHFW#FDVKGLUHFWFR]Z


 WPXSDVL#FDVKGLUHFWFR]Z
&DVK7ZHQW\IRXU 3YW /WG 6KRUWKHDWK&KLVL&RPSOH[  MDPHV#JPDLOFRP
&KLVLSLWL+DUDUH
&KLSR0LFURILQDQFH 3YW  3UHPLXP&ORVH6LPRQ  SGHQJX#JPDLOFRPSRQGDLGHQJX#F
/LPLWHG 0X]HQGD6WUHHW+DUDUH GIWUXVWFRP
&LWDGHO5HVRXUFHV 3YW /LPLWHG 1XPEHU-DVRQ0R\R'ULYH  PNDVKLUL#JPDLOFRP
0XUDPEL0XWDUH
&LWLFDVK)LQDQFLDO6HUYLFHV 3YW  WK)ORRU<RUN+RXVH&RUQHU  SFKDSHSD#FLWLFDVKFR]Z
/WG WK$YHQXH+HUEHUW&KLWHSR LQIR#FLWLFDVKFR]Z
6WUHHW%XODZD\R

59
&5(',721/< 3+<6,&$/$''5(66 &217$&7180%(5 6  (0$,/$''5(6(6
,167,787,21
&OXE3OXV 3ULYDWH /LPLWHG &QUWK$YHQXH+HUEHUW&KLWHSR  LQIR#FOXESOXVPLFURILQDQFHFR]Z
UG)ORRU(GJDUV+HDG2IILFH EQGORYX#FOXESOXVFR]Z
%XODZD\R
&RPRJOREH(QWHUSULVHV $QODE\+RXVH&QU1  FRPRJOREH#JPDLOFRP
3ULYDWH /LPLWHG 0DQGHOD$QJZD6WUHHW+DUDUH
&RQFDS$IULFD 3ULYDWH /LPLWHG VW)ORRU7KURJPRUWRQ+RXVH&QU  FPDZDG]D#KRWPDLOFRP
-XOLDV1\HUHUH60DFKHO$YHQXH  NX]HWKHO#JPDLOFRP
1R'DUW5RD9DLQRQD+DUDUH
&RWPDWHFK(QWHUSULVHV 3YW /WG :LOORZ6RXWWHU5RDG1HZ  IPDVXQ]D#JPDLOFRP
$UGEHQLH+DUDUH  DPDVXQ]D#JPDLOFRP
&RYHUOLQN)LQDQFH 3YW /WG 1XPEHU&XPEHUODQG5RDG  LQIR#FRYHUOLQNKROGLQJVFR]Z
(DVWOHD+DUDUH  DEHOPXQKDQGH#JPDLOFRP 




&UHGILQ 3YW /WG 6LOZRRG&ORVH&KLVLSLWH  LQIR#FUHGILQRUJ


+DUDUH 

&UHGIXQG)LQDQFH 3ULYDWH  %URRNH9LOODJH  MXV\JXPERFKXPD#JPDLOFRP
/LPLWHG %RUURZGDOH%URRN
+DUDUH

&UHGLFRQQHFW 3YW /WG .HZ'ULYH+LJKODQGV+DUDUH  LQIR#FUHGLFRQQHFWFR]Z


HGPRQG#FUHGLFRQQHFWFR]Z
&UHGLW3OXV/RDQV 3YW /WG 6WDQG1R2IILFH1R1HZ  FUHGLWSOXV#KRWPDLOFRP
0DUNHW&HQWUH50XJDEH 
6W0DVYLQJR
&URVVURDGV)LQDQFLDO6HUYLFHV +\GH3DUN%DLQHV$YHQXH  QHYDGLQ#PZHEFR]Z
3YW /WG +DUDUH
&URZQ:HDOWK,QYHVWPHQWV 3YW  (DVWZLQJ0)ORRU&OXE&KDPEHUV  FURZQZHDOWKPLFURILQDQFH#JPDLOFRP 

/WG &RUQHUUG 1HOVRQ0DQGHOD 


$YHQXH+DUDUH
&XVKLRQ0H 3YW /WG :DOWHUKLOO$YHQXH(DVWOHD  LQIR#FXVKLRQPHFR]Z

&XWHF0LFURILQDQFH 3YW /WG &KLQKR\L8QLYHUVLW\RI7HFKQRORJ\  WPDMRQL#FXWDF]Z
3%DJ&KLQKR\L  WVPDN#JPDLOFRP

'DUQVWHU)LQDQFH 3YW /WG 2IILFH0DVL\H6XLWHV3ULQFH  GDUQVWHUILQ#JPDLOFRP


&RXUWWK$YHQXH)RUW6WUHHW 
%XODZD\R
'DVZD,QYHVWPHQWV 3YW /WG )XQGDL+RXVH6LPRQ  WDZDQGDNDPXWDWDUL#JPDLOFRP
0X]HQGD6WUHHW+DUDUH
'HOWD)LQDQFLDO6HUYLFHV 3YW  &ODQYLHZ+RXVH6HFRQG  NXPEHPDQ#\DKRRFRP
/WG 6WUHHW0DURQGHUD 
'HQMR 3ULYDWH /LPLWHG *7%DLQ&HQWUH2IILFH)LUVW  FKULVWFKLIXQ\LVH#JPDLOFRP 

)ORRU.LQJ*HRUJH5RDG
$YRQGDOH+DUDUH
'HQYDOHQH)LQDQFLDO6HUYLFHV =LPSRVW%XLOGLQJ7RQJRJDUD  GHQYDOHQQH#JPDLOFRP
3YW /WG 6WUHHW+XJKHV6WUHHW0DVYLQJR 
'LUHFW&RQQHFW)LQDQFLDO 6KRS1XPEHU*URXQG)ORRU  WWXKZH#GLUHFWFRQQHFWFR]Z
6HUYLFHV 3YW /WG (DVWJDWH6KRSSLQJ0DOO+DUDUH  WXKZHWLQDVKH#JPDLOFRP
LQIR#GLUHFWFRQQHFWFR]Z
'RWSDUN(QWHUSULVHV 3ULYDWH  127RQJRJDUD6WUHHW5XVDSH  GRUWSDUN#JPDLOFRP
/LPLWHG
'RYHV)LQDQFLDO6HUYLFHV 3YW  2OZHQ&URFNHU+RXVH+DUDUH  DPXNDVL#GRYHVFR]Z
/WG 6WUHHW32%R[+DUDUH  EYLWR#GRYHVFR]Z
 ILQDQFLDOVHUYLFHV#GRYHVFR]Z
'3&3URIHVVLRQDOV 3YW /WG &HQWUDO$YHQXH+DUDUH   WUDGLWLRQDOKHDOWKIRRGVWUXVW#JPDLOFRP

(DVHZRUOG)LQDQFLDO6HUYLFHV 3HWHUERURXJK(DVWOHD+DUDUH  NDKZDI#HDVHZRUOGFR]Z
3ULYDWH /LPLWHG VKRQLZDH#HDVHZRUOGFR]Z 

(GXFDWH 3ULYDWH /LPLWHG 6KRS$VFRW6KRSSLQJ&HQWUH   WHUUHQFH#HGXFDWHFR]Z


0LQHUWRQ'ULYH%XODZD\R MLOOLRQ#HGXFDWHFR]Z
HGXFDWHORDQV#HGXFDWHFR]Z

60
&5(',721/< 3+<6,&$/$''5(66 &217$&7180%(5 6  (0$,/$''5(6(6
,167,787,21
(GXORDQ 3YW /WG 3DOPHU5RDG0LOWRQ3DUN  5RVHV#HGXORDQFR]D
+DUDUH  EKHNLPSLORP#HGXORDQFR]D

(PSHULDO/HJDF\*URXS 3YW  0VDVD:LQGVRU+RXVH  OOR\G#HOJ]LPFR]Z
/LPLWHG +HUEHUW&KLWHSR6WUHHW0XWDUH
(TXDOLW\0LFURILQDQFH 3YW /WG 2SSRUWXQLW\+RXVH+DUDUH  DNDXUDL#JPDLOFRP
6WUHHW+DUDUH  DNDXUDL#\DKRRFRP
(UJRIOH[,QYHVWPHQWV 3ULYDWH  2IILFH0)ORRU6HFXULW\7UXVW  PDNXZD]DI#JPDLOFRP
/LPLWHG +RXVH&RUQHU6HFRQG6WUHHW 
.ZDPH1NUXPDK$YHQXH+DUDUH
(WKLFDO)LQDQFH 3YW /WG 7REDFFR6DOHV)ORRU*URXQG   EULKZDQ#JPDLOFRP
)ORRU*OHQ(DJOHV5RDG VWDQIRUGPXGDQJZH#JPDLOFRP
:LOORZYDOH+DUDUH
([HFXWLYH&DSLWDO 3YW /WG 2IILFH2OG0XWXDO&$%6  GHQYHUFKLNZDWL#JPDLOFRP
%XLOGLQJ*ZHUX PXSLQLEOHVVLQJ#JPDLOFRP
LQIR#H[HFXWLYHFDSLWDOFR]Z
([SUHVV&UHGLW=LPEDEZH 3YW  1XPEHU0XWDUH5RDG0VDVD  2QDL6LQ\DEXZH#H[SUHVVFUHGLWFR]Z
/WG +DUDUH RVLQ\DEXZH#JPDLOFRP
)DVWEXFNV)LQDQFH(QWHUSULVHV 1R=DQGDDP&RXUW&QU  IDVWEXFNVILQDQFH#\DKRRFRP 

3YW /WG 0D]RZH &KLQDPDQR6WUHHW


+DUDUH
)HPPHV'H'LHX %LVKRS¶V0RXQW&ORVH  IHPPHGHGLHX#JPDLOFRP
*UHHQGDOH+DUDUH
)LQFHQW)LQDQFH 3YW /WG 6XLWH%HLUD+RXVH+DUYH\  Q\DNDFKHEYHURQDOG#JPDLOFRP
%URZQ0LOWRQ3DUN+DUDUH=% 
/LIH7RZHUWK)ORRU+DUDUH
)LGHOLW\/LIH)LQDQFLDO6HUYLFHV WK)ORRU)LGHOLW\+RXVH-XOLXV  RU ZHVOH\E#ILGHOLW\OLIHFR]Z
3YW /WG 1\HUHUH+DUDUH  PXVKD\LW#ILGHOLW\OLIHFR]Z
)LQVKD0LFURILQDQFH 3ULYDWH  2IILFHQR-DPHV&RXUW&RUQHU  ILQVKDPLFUR#FRPRQHFR]Z 

/LPLWHG WK$YH+HUEHUW&KLWHSR6WUHHW
%XODZD\R
)LUVW0RQH\)LQDQFLDO6HUYLFHV VW)ORRU1RUWK:LQJ5RELQVRQ  HQTXLULHV#ILUVWPRQH\IVFRP
+RXVH.ZDPH1NUXPDK$YHQXH  PNDQGDUH#ILUVWPRQH\IVFRP
+DUDUH
)LUVW0XWXDO0LFURILQDQFH ,QVXUDQFH&HQWUH6DPRUD  PQFXEH#ILUVWPXWXDOFR]Z
0DFKHO$YHQXH+DUDUH WPDWHQGDZDID#ILUVWPXWXDOFR]Z
)ORZWUDGH,QYHVWPHQWV 3ULYDWH  7KH*UHHQ6WUHHW)LUVW)ORRU  IORZWUDGHLQYHVW#JPDLOFRP
/LPLWHG +RZDUG+RXVH0DURQGHUD
)0&)LQDQFLDO6HUYLFHV/LPLWHG )HUHGD\'ULYH(DVWOHD+DUDUH  UPPDYKXQJD#IPFILQDQFHFRP
)LUVW0LFUR&UHGLW  3YW /WG  PVPDGHNXEYHQL#IPFILQDQFHFRP 

)RUWPXV)LQDQFLDO6HUYLFHV 6DPRUD0DFKHO$YHQXH  IRUWPXVILQVHUYLFHV#JPDLOFRP


3YW /WG WK)ORRU
7KURJPRUWRQ+RXVH
+DUDUH
3ODWLQXP0LFURILQDQFH 'XQJDUYDQ&ORVH%RUURZGDOH   EJXUDMHQD#JPDLOFRP
IRUPHUO\)URQWSDJH)LQDQFH  +DUDUH EDUEVFKLHI#JPDLOFRP
3YW /LPLWHG
)XQDPHO,QYHVWPHQWV +HEHUW&KLWHSR5RDG RU IXQDPHOILQDQFH#JPDLOFRP
0DVYLQJR 
)XQGKRXVH)LQDQFHV 3YW /WG 3'VW)ORRU0DLQ3RVW2IILFH  WDPDERJDN#IXQGKRXVHFR]Z
&$,)%XLOGLQJ50XJDEHWK IXQGKRXVHILQDQFH#JPDLOFRP
6WUHHW*ZHUX
)XQGPDWH&DSLWDO 3YW /WG %XGLULUR:HVW+DUDUH  ]YRXVKRPDMQ#JPDLOFRP
*HDOFV 3ULYDWH /LPLWHG )LUVW)ORRU8QLRQ%XLOGLQJV      JQ]YHQJHQGH#JPDLOFRP
5REHUW0XJDEH+DUDUH  DOGULVRQQ#JPDLOFRP 

*HQHUDWLRQDO,PSDFW)LQDQFH %ODNHZD\'ULYH%HOYHGHUH       PFKLNDPL#UDJHOLPFR]Z


3YW /LPLWHG +DUDUH    

*ROGHQ.QRW)LQDQFLDO6HUYLFHV 6DPRUD$YHQXH+DUDUH  ILQDQFLDOVHUYLFHV#JROGHQNRQWFR]Z
3ULYDWH /LPLWHG SXQGXS#JROGHQNQRWFR]Z 

*3&)LQDQFLDO6HUYLFHV 6DPRUD0DFKHO$YHQXH:HVW ±± KDUGRQ#GVFFR]Z


%HOYHGHUH  ILQDQFH#GVFFR]Z 

61
&5(',721/< 3+<6,&$/$''5(66 &217$&7180%(5 6  (0$,/$''5(6(6
,167,787,21
*UHDW5HOLHI 3YW /LPLWHG .ZDPH1NUXPDK$YHQXH  GUWDPDNRQL#JUHDWUHOLHIQHW
&RUQHU)LIWK6WUHHW+DUDUH  LQIRJUHDWUHOLHI#JPDLOFRP 

*UHDW7KDQNV,QYHVWPHQWV 3YW  WK6WUHHW+DUDUH  JUHDWWKDQNVLQYHVWPHQWV#JPDLOFRP 

/WG 
*UHHQ/HDI)LQDQFH 3YW /WG &ODUH+RXVH1XMRPD6WUHHW  LQIR#JUHHQOHDIFR]Z
+DUDUH  VLPRQZLQVNLOO#JPDLOFRP 

*UHHQ0DVWHUV,QYHVWPHQWV -7RQJRJDUD$YHQXH  PDMRUFKDQHWVD#\DKRRFRP


3YW /WG %ODNLVWRQ6WUHHW+DUDUH OL]PXNHPD#\DKRRFRP
LQIR#JPLQYHVWPHQWVFR]Z
*URYHVWRQ,QYHVWPHQWV 3YW /WG $7ULQLW\URDG*UHHQGDOH+DUDUH  JURYHVWRQLQYHVW#JPDLOFRP
*U\WRQ&DSLWDO 3YW /WG %UDGEXUQ6WUHHW0DVYLQJR  JU\WRQFDSLWDO#JPDLOFRP
 WG]LQJLVR#JPDLOFRP

+ +0LFURILQDQFH 3YW /WG 1LJHO3KLOLS$YH(DVWOHD  SDQJLG]R#]ROFR]Z
(formerly Litreton Investments +DUDUH  LDQ#KKPLFURQHW
P/L)

+DPPHU 7RQJXHV0RQH\ 6KRS$%HYHUO\&RXUW&QU1   DGPLQ#KWPOFR]Z


/HQGHUV 3YW /WG 0DQGHODWK6WUHHW+DUDUH PLOGUHG#KWPOFR]Z 

+DYLODK6WUHDP)LQDQFH 3YW  &RPPHUFLDO6WUHHW&KLQKR\L  DQGUHZEDUH#\DKRRFRP


/LPLWHG  KDYLODKVWUHDP#\DKRRFRP 

+D\URDGLF 3YW /LPLWHG 2IILFH1XPEHUUG)ORRU  WRGKODNDPD#JPDLOFRP


3RFNHWV%XLOGLQJ-DVRQ0R\R VKHSPDQG#JPDLOFRP
$YHQXH+DUDUH QMFFKLSDQGDPELUD#JPDLOFRP


+HULWDJH([SRVXUH 3YW /LPLWHG $LUGULH5RDG(DVWOHD+DUDUH  IHULGDPDWDPER#JPDLOFRP


+LOOWKUX(QWHUSULVHV 3YW /WG 1R5HND\L7DQJZHQD$YHQXH   KLOOWKUXHQWHUSULVHV#JPDLOFRP
0DVYLQJR 
+RPHOLQN)LQDQFH 3YW /WG ±6DPRUD0DFKHO$YH  GDOL#KRPHOLQNFR]Z
+DUGZLFNH+RXVH+DUDUH  WEXQX#KRPHOLQNFR]Z 

+RPZH)LQDQFLDO6HUYLFHV 6WDQG*UHHQILOHG6WUHHW  KRPZHLQIR#JPDLOFRP


0DVYLQJR QJDQLSG#JPDLOFRP
,PSDFW)LQDQFLDO6HUYLFHV 3YW  6KRS+LJKJOHQ6KRSSLQJ  JSDWVLND#JPDLOFRP 

/WG &HQWUH+DUDUH 


,QFOXVLYH)LQDQFLDO6HUYLFHV -DVRQ0R\R%XODZD\R  J]KRX#LIV]LPFRP 

3YW /WG
,QWHUFUHVW&DSLWDO 3YW /WG 1R6DPRUD0DFKHO$YH  SNZDVKLUDL#JPDLOFRP 

(DVWOHD 
-DNDQD$IULFD0LFURILQDQFH 3YW  +HUEHUW&KLWHSR6WUHHW  MDNDQDFDSWUDGLQJ#JPDLOFRP
/WG +DUDUH ORDQV#MDNDQDFDSLWDOFRP


-+0,QYHVWPHQWV 3ULYDWH  6XLWHWK)ORRU6RXWK:LQJ3D[  MKPZRUNZRUOG#OLYHFRP


/LPLWHG 3YW /WG +RXVH.ZDPH1NUXPDK$YH  VROLGFDVK#KRWPDLOFRP
+DUDUH 
-RVHSK)LQDQFH 3YW /WG +XUWV5RDG:DWHUIDOOV+DUDUH  Q\DVKDKRY#JPDLOFRP
MRVHSKILQDQFHDIULFD#JPDLOFRP
-XQLRU0DULPD 3YW /WG +RIPH\HU6WUHHW0DVYLQJR  QRDKPDULPD#JPDLOFRP
 


.DPOLVK,QYHVWPHQWV 3YW /WG 6XLWHQG)ORRU1HZ$IULFD  NDPOLVK#PZHEFR]Z 

+RXVH.ZDPH1NUXPDK$YH
+DUDUH
.&,0DQDJHPHQW&RQVXOWDQWV 0F&KHU\$YHQXH(DVWOHD  NHQUXIDVKD#\DKRRFRXN
3YW /WG +DUDUH NFLPDQDJHPHQWFRQVXOWDQWV#JPDLOFR
P 

.LQJFDVK)LQDQFH 3YW /WG 6XLWH6W$QGUHZV+RXVH  NFIORDQV#\DKRRFRP 

6DPRUD0DFKHO$YHQXH+DUDUH 
.OHLQILQ 3ULYDWH /LPLWHG *HRUJH6LOXQGLND$YHQXH  SDPFKLPZD#JPDLOFRP
6XLWH6LOXQGLND+RXVH
+DUDUH

62
&5(',721/< 3+<6,&$/$''5(66 &217$&7180%(5 6  (0$,/$''5(6(6
,167,787,21
.UHDPRQ,QYHVWPHQWV 3YW /WG 6DPRUD0DFKHO$YHQXH  DPD]LZLVD#NUHDPRUQFR]Z 

(DVWOHD+DUDUH 
.XQWHP7UDGHUV 3ULYDWH  'RXJODV5RDG:RUNLQJWRQ  NX]LYDP#DOXPHQVKRSILWWHUVFR]Z 

/LPLWHG +DUDUH 


/DQGLV,QYHVWPHQWV 3YW /WG 5RRP1XPEHU6SHFNV+RWHO  ODQGLVNDGRPD#JPDLOFRP 

.DGRPD 
4$7&&DSLWDO 3ULYDWH /LPLWHG +XJKHV6WUHHW0DVYLQJR  LQIRU#TDWFEL] 
0DLQ3RVW2IILFH5RRP) )   PHORG\SHG]LVDL#TDWFEL] 

0DVYLQJR
/LQFROQ&DSLWDO 3ULYDWH /LPLWHG )LUVW)ORRU3HDUO+RXVH6DPRUD  WPKRQGD]#JPDLOFRP
0DFKHO$YHQXH+DUDUH
/LQNDJH)LQDQFH 3YW /WG /LYLQJZDWHUV%XLOGLQJ  OLQNILQSOF#JPDLOFRP 

%HLWEULGJH 
/RDQVIRU<RX 3YW /WG +HUEHUW&KLWHSR6WUHHW  MRVHSKWRLQGHSL#ORDQVIRUXFRP 

+DUDUH
/RDQVWDU 6KRS$YRQGDOH6KRSSLQJ  /RUQDKW#JPDLOFRP 

&HQWUH$YRQGDOH+DUDUH 
/RPDELO 3ULYDWH /LPLWHG 8QLW'6HNH  WRQ\FKLQRV#DROFRP 

&KLWXQJZL]D

/\QR)LQDQFH 3YW /WG VW)ORRU&RQVWUXFWLRQ+RXVH  DGPLQ#O\QRILQDQFHFR]Z


/HRSROG7DNDZLUD6WUHHW JLYHPRUH#O\QRILQDQFHFR]Z
+DUDUH
0D[EDUN,QYHVWPHQWV 5REHUWVRQ6WUHHW0DVYLQJR  PD[EDUN#JPDLOFRP

0&30LFURILQDQFH 3YW /LPLWHG 1R:D\QH6WUHHW+DUDUH  JPDWLND#PFSPLFURILQFR]Z
FPXWL]ZD#PFSPLFURILQFR]Z 

0HGLSD\ 3YW /LPLWHG /LYLQJVWRQH$YHQXH+DUDUH  MNDQKHQJD#JPDLOFRP



0HULW)LQDQFLDO6HUYLFHV 3YW  6KRS1R*URXQG)ORRU=%  LQIR#PHULWIV]FR]Z 

/WG +RXVH&QU)LUVW6W6SHNH$YH 


+DUDUH
0HZO,QYHVWPHQWV 3ULYDWH  6KRS166$+RXVH*ZDQGD  HUJXPER#\DKRRFRP 

/LPLWHG 
0LFURGDZQ)LQDQFLDO6HUYLFHV 2IILFHUG)ORRU6W%DUEDUD  PFLDQ#JPDLOFRP 

3YW /WG +RXVH+DUDUH


0LFURKXE)LQDQFLDO6HUYLFHV -RVLDK&KLQDPDQR$YHQXH  WDPLULUD#JPDLOFRP 

3YW /WG +DUDUH


0LFURORDQ)RXQGDWLRQ 3YW /WG WK)ORRU&$%6&HQWUH  SHWHUU\DQ#POIRUJXN 

-DVRQ0R\R$YHQXH+DUDUH
0LFURSODQ)LQDQFLDO6HUYLFHV WK)ORRU)%&+RXVH  SDWULFNPDQJZHQGH]D#IEFFR]Z
3YW /WG IRUPHUO\0XLUNLUN  /HRSROG7DNDZLUD6W+DUDUH  UHJLQDOGPXUDPED#IEFFR]Z 

0LFUR6XLVVH 3ULYDWH /LPLWHG /RQJIRUG5RDG4XHHQVGDOH  HEPEXOD\L#JPDLOFRP 

+DUDUHEHLQJPRYHGWR3XPXODQL
&RPSOH[6XGDQ6WUHHW*ZDQGD
0LFURYHQWXUH$IULFD 3YW /WG (OVZRUWK5RDG%HOJUDYLD  WDULUR#PLFURYHQWXUHDIULFDFRP 

+DUDUH
0LOJUHH,QYHVWPHQWV 3ULYDWH  QG)ORRU)LGHOLW\/LIHWRZHU  PDYLVQDJR#JPDLOFRP 

/LPLWHG 5DOHLJK6WUHHW+DUDUH
0LOVDP)LQDQFH&RUSRUDWLRQ 6XLWHQG)ORRU6HFRQG%ORFN    PLOVDPILQDQFH#JPDLOFRP 

3YW /WG .ZDPH1NKUXPDK+DUDUH


0LUWHQZDOO,QYHVWPHQWV 3ULYDWH  6KRS1R%HOPRQW&KDPEHUV  PLUWHQZDOOLQYHVWPHQWV#JPDLOFRP 

/LPLWHG 0DVYLQJR
0LVVDSL)LQDQFH 3ULYDWH  3LQH6WUHHW0DURQGHUD    PLVVDSLILQDQFH#JPDLOFRP 

/LPLWHG
0LWFKDUW)LQDQFLDO6HUYLFHV 3YW  0DLQ6WUHHW0XSDQGDZDQD  PLWFKDUWILQDQFH#JPDLOFRP
/LPLWHG *XWX0DVYLQJR  DUWFKLQ\DG]LUR#JPDLOFRP
0R%&DSLWDO 3YW /WG )LGHOLW\/LIH&HQWUH&QU)LIH  PSDODPRUULV#JPDLOFRP
6WUHHWWK$YHQXH%XODZD\R  PREFDSLWDO]LP#JPDLOFRP
0RHQ&UHGLW*XDUDQWHH 3YW  WK)ORRU&DXVHZD\%XLOGLQJ  PRHQFUHGLW#OLYHFRP 

/WG WKLUGVWUHHWDQG&HQWUDO$YH+DUDUH 

63
&5(',721/< 3+<6,&$/$''5(66 &217$&7180%(5 6  (0$,/$''5(6(6
,167,787,21
0RQH\0DUW)LQDQFH 3YW /WG )UDQN-RKQVRQ$YHQXH(DVWOHD  HPXSDPEZD#PRQH\PDUWILQDQFHFRP
+DUDU  LQIR#PRQH\PDUWILQDQFHFRP 

0RXQW&DPHO,QYHVWPHQWV 3YW  QG6WUHHW%OXHKRXVH0XWDUH  FKLQ\DLMRKQ#JPDLOFRP 

/WG
0RXQWILQ)LQDQFH 3YW /WG D&HQWUDO$YHQXH&RUQHUWK  YPXQGRQGR#JPDLOFRP
$YHQXH+DUDUH  YLPEDLFKLQJXZD#RXWORRNFRP
0RUWJDJH+XE)LQDQFLDO &O\GH5G(DVWOHD+DUDUH  NHQFKLWDQGR#\DKRRFRP
6ROXWLRQV
06$$'$&UHGLW 3YW /WG 'HYRQ$YHQXH0H\ULFN3DUN  DGPLQ#PVDDGDFUHGLWFR]Z
0DEHOUHLJQ+DUDUH 
0XOD0LFURILQDQFH 6WHZDUW5RDG%RUURZGDOH  FKLSR#FRUXVFR]Z
+DUDUH
1DVK0LFUR&DSLWDO 3YW /WG 6DPRUD0DFKHO$YHQXH6W  WDJVIHUP#JPDLOFRP 

$QGUHZV+RXVH+DUDUH 
1HOKXUVW7UDGLQJ 3YW /WG $WNLQVRQ'ULYH+LOOVLGH+DUDUH  HPXVXQJDWH#JPDLOFRPRU
 QHOKXUVW#JPDLOFRP
1HZ+RUL]RQ)LQDQFLDO6HUYLFHV 1RUWKDPSWRQ5RDG(DVWOHD  QKIVPLFURILQDQFH#JPDLOFRP
3YW /WG +DUDUH 
1HZODQGV)LQDQFLDO6HUYLFHV -RVLDK&KLQDPDQR$YHQXH  SFKLNZD\D#QHZFDSFR]Z
3YW /WG +DUDUH  GDYLVRQN#QHZFDSFR]Z

1LVVL*OREDO 3YW /WG 6XLWH 3HSSHUPLQW3ODFH&QU  ILQDQFH#QLVVLJOREDOFR]D 

WK$YHQXH *HRUJH6LOXQGLND 


%XODZD\R
1MHUH0LFURILQDQFH 3ULYDWH  WK)ORRU&RQVWUXFWLRQ+RXVH  HPSLJZD#JPDLOFRP 

/LPLWHG +DUDUH
1RYD6XSHUE)LQDQFH 5RRPUG)ORRU([HXWLYH  W\QR#JPDLOFRP
&KDPEHUV&QU*HRUJH6LOXQGLND  WLQRWHQGDQRYDILQDQFH#JPDLOFRP
)LUVW6WUHHW+DUDUH
1XUWXUH)LQDQFH 3YW /WG 1XPEHU<RUN$YHQXH1HZODQGV RU PDUNKD\WHU#QFSDIULFDFRP 



2DNILQ)LQDQFH 3YW /WG )LUVW)ORRU1RUWK:LQJ  RDNILQILQDQFH#JPDLOFRP


7KURJPRUWRQ+RXVH&QU- LQIR#RDNILQILFRP UDQJDULUDL#RDNILQILFRP 

1\HUHUH:D\60DFKHO
$YH+DUDUH
2FWUHY 3ULYDWH /LPLWHG 6DPRUD0DFKHOWK6WUHHW  WRELDVF#PZHEFR]Z
+DUDUH  ]LPSUR#]SWFR]Z

2OG0XWXDO)LQDQFH 7KH&KDVH(PDUDOG+LOO  LVDEHOQ#ROGPXWXDOFR]Z


+DUDUH
2QH)RXU1LQH)LQDQFLDO %DWK5RDG%HOJUDYLD+DUDUH  PHOLVVDKLOGHEUDQG#RQHIRXU
6HUYLFHV QLQHFRPVHUYLFH#RQHIRXUQLQHFRP
2VDUR(QWHUSULVHV 3YW /WG UG)ORRU5RRP6W%DUEUD  RVDUD#\DKRRFRPRVDURHQWHUSULVHV#
+RXVH&QU/HRSROG7DNDZLUD1 \DKRRFRP 

0DQGHOD6WUHHW+DUDUH
3DPX]KDQMH 3YW /LPLWHG 5RRPWK)ORRU7KURJPRUWRQ  &KDUXPHORG\#JPDLOFRP
+RXVH6DPRUD0DFKHO$YHQXH
+DUDUH
3LYRW)LQDQFLDO6HUYLFHV =LPUH3DUN5XZD  JHUDOGPDEXUH]D#\DKRRFRP
3RUWLI\,QYHVWPHQWV 3YW /WG 6XLWH=LPQDW%XLOGLQJWK  SRUWLI\LQYHVWPHQWV#JPDLOFRP 

$YHQXH-DVRQ0R\R6WUHHW
%XODZD\R
3RVW0LFURILQDQFH QG)ORRU+DUDUH0DLQ3RVW  KWHPER#]LPSRVWFR]Z
2IILFH&RUQHU,QH]7HUH]* 
6LOXQGLND$YHQXH+DUDUH
3UHPLHU6HUYLFH0LFURILQDQFH QG )ORRU 360$6 +RXVH    PDUVKDOOP#SVPDVFR]Z 

*HRUJH6LOXQGLND$YHQXH+DUDUH
3ULQWODQ,QYHVWPHQW 2IILFH  6WQOH\ +RRXVH &QU  FGRQJRQGD#JPDLOFRP
-VRQ0R\R)LUVW6WUHHW+DUDUH
3UXGHQWLDO,QFRUSRUDWHG 3YW  2UNQH\5RDG(DVWOHD+DUDUH   MDPHVPXW\DPEL]L#JPDLOFRP
/WG

64
&5(',721/< 3+<6,&$/$''5(66 &217$&7180%(5 6  (0$,/$''5(6(6
,167,787,21
4XDGILQ)LQDQFLDO6HUYLFHV 3YW  2IILFHV  JWRURQJD#TXDGILQFR]Z
/WG WK)ORRU,QVXUDQFH&HQWUH  
6DPRUD0DFKHO$YHQXH+DUDUH 


4XLFN$FFHVV WK)ORRU)LQVXUH+RXVH&QU  LVDX#PZHEFR]Z 

.ZDPH1NUXPDK 6DP1XMRPD 


+DUDUH
4XHVW)LQDQFLDO6HUYLFHV 3YW  VW)ORRU6RFLDO6HFXULW\&HQWUH  GVDUXUR#TXHVWILQFRP
/WG 6DP1XMRPD-XOLXV1\HUHUH:D\ 
+DUDUH
5DLQERZ)LQDQFH 3YW /WG QG)ORRU12&=,0+RXVH  MDPHVPDNL\D#ZHEPDLOFR]D
/HRSROG7DNDZLUD6WUHHW+DUDUH
5D\VXQ&DSLWDO .ZDPH1NKUXPDK$YH+DUDUH  DGPLQ#UD\VXQFDSLWDOFRP 


5HDFK6N\/RDQV 3YW /WG /LJKW,QGXVWU\=YLVKDYDQH  UHDFKVN\ORDQV#RXWORRNFRP 

5HDOLW\0LFURILQDQFH 3YW /WG UG)ORRU,QVXUDQFH&HQWUH   SHSVLKRNR\R#JPDLOFRP 

&RUQHU6DPRUD0DFKHO 
3DUNODQH+DUDUH
5HG6SKHUH)LQDQFH 3YW  6HORXV$YHQXH+DUDUH        PGLQJDQL#FE]FR]Z
/LPLWHG 
5LSSOH&DSLWDO 3YW /LPLWHG /LYLQJVWRQH$YHQXH+DUDUH  ]PXWRPEZD#JPDLOFRP
5LVH&DSLWDO 3YW /WG 5LGJHYLHZ6RXWK+LJKODQGV  UXZLPERNDXNRQGH#JPDLOFRP
+DUDUH
5,62)LQDQFLDO6HUYLFHV 7KDPHV5RDG3RPRQD  7HPERVRORPRQ#JPDLOFRP 

%RUURZGDOH+DUDUH
5RVWDILQ)LQDQFLDO6HUYLFHV +DUDUH'ULYH0W3OHDVDQW  URVHODQG#URVWDILQFR]Z
+DUDUH 
5RWDQD0LFURILQDQFH 397  ([HFXWLYH&KDPEHUV   PKD]YLSHUL#JPDLOFRP
/LPLWHG *HRUJH6LOXQGLND$YHQXH6XLWH  URWDQDPLFUR#JPDLOFRP
 +DUDUH
5RYGHP,QYHVWPHQWV 3ULYDWH  6WDQG1R1\DPKXQJD  URYGHP#JPDLOFRP 

/LPLWHG 7RZQVKLS.DULED
5R\DO0DJL,QYHVWPHQWV 3YW  &QU$HURGURPH QG  HYLHPXWXPEX#JPDLOFRP
/LPLWHG 6WUHHW*HVWQHU%XLOGLQJ0XWDUH 
6HGJHPHUJH,QYHVWPHQWV +HOOHW6WUHHW0DVYLQJR  VHGJHPHUJHLQYHVWPHQWV#JPDLOFRP 


6KDUH:HDOWK 3ULYDWH /LPLWHG 1NZDPH1NUXPDK$YH0DVWHU  LPDFKDULND#VKDUHZHDOWKFRP 

+RXVH6XLWH+DUDUH 
6KHOWHUVRO)LQDQFH 3YW /WG :LOOLDPV:D\0VDVD+DUDUH  DGPLQ#VKHOWHUVROFR]Z 


6KRQV)LQDQFLDO6HUYLFHV 3YW  6XLWHVW)ORRU$OLFH%XLOGLQJ  WDQDNDVKRQV#JPDLOFRP
/WG WK6WUHHW*ZHUX  VKRQVILQDQFH#JPDLOFRP 


6KXPED0RQH\ 3YW /WG 1R6DQODP&HQWUH  DQGUHZ#VKXPEDPRQH\FRP
1HZODQGV+DUDUH
6LPXNDL)LQDQFLDO6HUYLFHV 3YW  6KRSQRUG6WUHHW+DUDUH  VLPXNDLILQDQFLDO#JPDLOFRP 

/WG 
6LURVDQJ,QYHVWPHQWV 3YW /WG 0RRUJDWH5RDG0RXQW  DFNDZRQGHUD#JPDLOFRP
3OHDVDQW+DUDUH 
6NZDPD0LFURILQDQFH 3YW /WG 5DLQKDP5RDG:LOORZYDOH  WMHFKHFKH#JPDLOFRP 

+DUDUH
6N\FUHGLW 3YW /WG 2IILFH6KDPZDUL&RPSOH[&QU   JORULD#VN\FUHGDIULFDFRP 

6DP1XMRPD6W 0DDVGRUS 


$YHQXH%HOJUDYLD+DUDUH
6ROHGG)LQDQFLDO6HUYLFHV 3YW  6XLWHWK)ORRU%DUWV+RXVH  VROHGGILQDQFH#JPDLOFRP 

/WG -DVRQ0R\R$YHQXH+DUDUH 


6ROWHQ)LQDQFLDO6HUYLFHV 'UHZ5RDG&KLVLSLWH+DUDUH  info@solten.co.zw;
3ULYDWH /LPLWHG
saul@solten.co.zw
6SRUW7DON,QYHVWPHQWV 3YW /WG 1RVW)ORRU8QLIUHLJKW   6SRUWWDONBLQYHVWPHQWV#\DKRRFRXN 

+RXVH/7DNDZLUD$YHQXH)LIH 
6WUHHW%XODZD\R

65
&5(',721/< 3+<6,&$/$''5(66 &217$&7180%(5 6  (0$,/$''5(6(6
,167,787,21
6WRFN7DQN,QYHVWPHQWV 6KHULQJKDP&ORVH0W3OHDVDQW  FHR#VWRFNWDQNFR]Z 

3ULYDWH /LPLWHG +DUDUH


6WRQH0LFURILQDQFH 3YW /WG $QJXV5RDG(DVWOHD+DUDUH  SVKRNR#VWRQHPLFURILQDQFHFR]Z 


6WUDWILQ6HUYLFHV 3YW /WG 7UHJHU+RXVHQG)ORRU-DVRQ  VWUDWILQE\R#JPDLOFRP 

0R\R6WUHHW$YHQXH%XODZD\R 
6XFFHVV$VVXUHG)LQDQFLDO 6XLWHWK)ORRU6DLQW%DUEDUD  JLIW#VDILQ]LPFRP
6HUYLFHV +RXVH1HOVRQ0DQGHOD MDFREPXUDVKLNL#JPDLOFRP
$YHQXH+DUDUH
6XLJHQHULV,QYHVWPHQWV )LUVW)ORRU6XLWH,QH]  HQTXLULHV#VXLJHQHULVFR]Z
3ULYDWH /LPLWHG 7HUUDFH$GYHQ+RXVH+DUDUH ZKDWVDSS 


6XQEULG)LQDQFH 2IILFHWK)ORRU1LFR]  MPDQGDYD#VXQEULGFR]Z


'LDPRQG+RXVH6DPRUD  LQIR#VXQEULGFR]Z
0DFKHO$YHQXH+DUDUH
6\PGXQHV)LQDQFLDO6HUYLFHV 1\DQJD6WUHHW6XLWH.HQQHG\  V\PGXQHV#JPDLOFRP 

3YW /WG &RXUW5XVDSH


7DURWK,QYHVWPHQWV 3YW  QG)ORRU'ROSKLQ+RXVH  NXG]LHJDYKXPHQGH#JPDLOFRP 

/LPLWHG /HRSROG7DNDZLUD+DUDUH 


7DHGG\&DSLWDO,QYHVWPHQWV 0W3OHDVDQW+HLJKWV+DUDUH  WVLWVLQ\RQL#\DKRRFRP
3ULYDWH /LPLWHG
7D['ULYHQ,QYHVWPHQWV 6XLWHUG)ORRU3ROODFN  WGLQYHVWPHQWV#JPDLOFRP 

3ULYDWH /LPLWHG +RXVH5REVRQ0DQ\LND$YHQXH


+DUDUH
7D]PDF 3YW /WG &QU50XJDEH,QH]7HUUDFH$VLD  WD]PDFSYW#\DKRRFRP 

+RXVHVW)ORRU6XLWH+DUDUH 
7HUU\ILQ0LFUR&UHGLW 3YW /WG &KDONPHDG/DQH*UHHQGDOH  WKHUHVDVKRQDL#JPDLOFRP
+DUDUH RVKRQDL#\DKRRFRP
7LODWH,QYHVWPHQWV %HOYHGHUH5RDG.RSMH+DUDUH       WLODWHLQYHVWPHQWV#JPDLOFRP

7LQUXH)LQDQFH 3YW /LPLWHG +RXVH1XPEHUWK6WUHHW   WLQUXHPLFURILQDQFH#JPDLOFRP 

*ZHUX 
7KLQF%L]])LQDQFH 3ULYDWH  QG)ORRU7UDYHO3OD]D0D]RH  LQIR#WKLQFEL]]FRP
/LPLWHG 6WUHHW+DUDUH QFRFLHPR#\DKRRFRP
7KULYH0LFURILQDQFH 3YW /WG :LOORZYDOH5RDG+DUDUH   EQ\DEDG]D#JPDLOFRP 

7RWWHQJUDP,QYHVWPHQWV 3YW  7KXUVR&ORVH(DVWOHD+DUDUH  Q]LPEHYD#JPDLOFRP


/WG  ODZUHQFHF#JPDLOFRP 

7KHRFDVK&DSLWDO IRUPHUO\ 5*0XJDEH:D\0DVYLQJR  WPPXWLQKLPD#JPDLOFRP


/HYLWKHR,QYHVWPHQWV  
7()&2 3YW /WG 'DJHQKDP5RDG   LQIR#WHIFRILQDQFHFR]Z 

:LOORZYDOH+DUDUH
7UHER[)LQDQFH 3YW /WG <RUN+RXVHWK$YHQXH  UPDKL\D#WUHER[ILQDQFHFR]Z
%XODZD\R 


7UHWPD,QYHVWPHQWV 3YW /WG 2IILFHQR0 $%XLOGLQJ-1  WUHWPDLQYHVWPHQWV#JPDLOFRP 

1NRPR6WUHHWWK$YHQXH 
%XODZD\R
7UXWRS,QYHVWPHQWV 3YW  7ZLFNHQKDP'ULYH  PXJZLMLW#]ROFR]Z
/LPLWHG 1RUWKZRRG0W3OHDVDQW+DUDUH  IPKHQ\X#\DKRRFRXN
8QLILHU)LQDQFLDO6HUYLFHV 3YW  6XLWH:HVWPLQVWHU&RXUW  ILQDQFLDOXQLILHU#JPDLOFRP
/LPLWHG .ZDPH1NXUXPDK$YHQXH+DUDUH
8QWX&DSLWDO 3YW /WG 1R'UXU\/DQH6WUDWKDYHQ  FOLYHPVLSKD#XQWXFDSLWDOFRP 

+DUDUH
9DOOH\)LQDQFH 3YW /WG &KLQKR\L6WUHHWVW)ORRU  JGLQJZL]D#JPDLOFRP 

9DVVDQ%XLOGLQJ+DUDUH
9HQWXUHV0LFUR)LQDQFH 3YW  1R&RQDOG5RDG*UDQLWHVLGH  ILGHOLVPXEDLZD#JPDLOFRP 

/WG +DUDUH
9HVWURZ 3YW /WG 9DQ3UDDJK$YHQXH0LOWRQ  VDUDK#DVJDUGFR]Z
3DUN+DUDUH
9LUO5XUDO 6RFLDO)LQDQFLDO 4XRUQ$YHQXH  DGPLQLVWUDWLRQ#YLUOPLFURILQDQFHFR]Z 

6HUYLFHV 3YW /WG 0W3OHDVDQW 


+DUDUH

66
&5(',721/< 3+<6,&$/$''5(66 &217$&7180%(5 6  (0$,/$''5(6(6
,167,787,21
9LUWXRXV)LQDQFH 3YW /WG /RQJFKHQJ3OD]D%HOYHGHUH  VSKHODQPDUXIX#JPDLOFRP
+DUDUH SPDWDUXVH#JPDLOFRP
:HGE)LQDQFLDO6HUYLFHV 3YW  +HUEHUW&KLWHSR$YHQXH   HPXNXUD]KL]KD#ZHGEFR]Z
/WG +DUDUH 
:LQIRXQGHUV0LFURILQDQFH 3YW  1R+LOOVLGH5RDG+LOOVLGH  ZLQIRXQGHUVPLFURILQDQFH#JPDLOFRP
/WG +DUDUH 
:LQWURQ)LQDQFLDO6HUYLFHV 3YW  .LQJGRP%XLOGLQJWK  ZLQWURQ#PZHEFR]Z
/WG $YHQXH-0R\R6WUHHW%XODZD\R
:LVURG,QYHVWPHQWV 3YW /WG 6XLWH)LUVW)ORRU6DPRUD  OHZLVPDGDIL#ZLVURGFRP 

0DFKHO$YHQXH1LFR]'LDPRQG
%XLOGLQJ+DUDUH
;WHQGD)LQDQFH 3YW /WG 'RZQLH$YHQXH%HOJUDYLD ± WFKLWVYD#GEIFDSLWDOSDUWQHUVFRP 

+DUDUH 
<DPEXNDL)LQDQFH 3YW /WG WK)ORRU&KL\HG]D+RXVH&QU  HPX]YRQGLZD#FURZQVHFFR]Z 

)LUVW6WUHHW.ZDPH1NUXPDK$YH
+DUDUH
<HER)LQDQFLDO6ROXWLRQV +HUEHUW&KLWHSR+DUDUH  FRQQLPKODQJD#JPDLOFRP 

3ULYDWH /LPLWHG 

<RIXQG)LQDQFH 3ULYDWH  -DVRQ0R\R6WUHHW%LQGXUD  EOHVVLQJNDWXND#JPDLOFRP 

/LPLWHG
<RQGHU5LIW(QWHUSULVHV 3YW  $+HUEHUW&KLWHSR6WUHHW  \RQGHUULIW#JPDLOFRP
/WG +DUDUH USDVL#\RQGHUULIWRUJ 

=DPEXNR7UXVW 3YW /WG 1R$EHUGHHQ5RDG%HOJUDYLD  JMRNRQ\D#JPDLOFRP


+DUDUH  LQIR#]DPEXNRWUXVWFR]Z 

=LEXNR&DSLWDO 3YW /WG .ZDPH1NXUXPDK$YHQXH  


+DUDUH DGPLQ#]LEXNRFRP

=LPEDEZH0LFURILQDQFH)XQG 5KRGHYLOOH$YHQXH*UHHQGDOH  DGPLQ#]PZIWFR]Z


3ULYDWH /LPLWHG +DUDUH  EULDQ#]PZIWFR]Z
=LPQDW)LQDQFLDO6HUYLFHV 3YW  =LPQDW+RXVH&QUUG1HOVRQ  VKRQKLZDJ#]LPQDWFR]Z 

/WG 0DQGHOD6WUHHW+DUDUH

'(326,77$.,1*0,&52),1$1&(,167,787,216
$IULFDQ&HQWXU\/LPLWHG $IULFDQ&HQWXU\*DUGHQV  HQTXLULHV#DIULFDQFHQWXU\FR]Z 

-RVLDK&KLQDPDQR$YHQXH
+DUDUH
6XFFHVV0LFURILQDQFH%DQN/WG 2IILFH1R0H]]DQLQH)ORRU  LQQRVLWKROH#JPDLOFRP 

.RSMH3OD]D%XLOGLQJ&QU-DVRQ 
0R\R.DJXYL6WUHHW+DUDUH
*HW%XFNV)LQDQFLDO6HUYLFHV 6KRSQR166$&RUQHU-  WHUUHQFH#JHWEXFNVFRP 

3YW /WG 1\HUHUH61XMRPD+DUDUH


/LRQ0LFURILQDQFH/LPLWHG *URXQG)ORRU&HQWXU\7RZHUV  SRYHUW\DOOHYLDWLRQ#JPDLOFRP 

6DPRUD0DFKHO$YHQXH+DUDUH 
=LPEDEZH:RPHQ
V *URXQG)ORRU7UXVW7RZHUV  PDQGDVPDULNDQGD#ZRPHQVEDQNFR
0LFURILQDQFH%DQN/LPLWHG 6DPRUD0DFKHO$YHQXH+DUDUH ]Z 

(PSRZHU%DQN/LPLWHG %ORFN7HQGHVHND3DUN)LUVW  HPDNRQL#HPSRZHUEDQNFR]Z


)ORRU6DPRUD0DFKHO$YHQXH  NPSKLQLQJR#HPSRZHUEDQNFR]Z
(DVWOHD+DUDUH
1GRUR0LFURILQDQFH%DQN 3YW  1XPEHU1HOVRQ0DQGHOD  JDUOR\E#JPDLOFRP
/WG $YHQXH+DUDUH

67
N K OF
BA ZI
M
R E S R VE

BA
E

BWE

RESERVE BANK OF ZIMBABWE


80 Samora Machel Avenue
P.O. BOX 1283,Hre
Tel: 263-4-703000, +263 8677000477

You might also like