Notes on the balance sheet and the profit and loss accounts

1. CONSOLIDATED BALANCE SHEET DATA

The area of consolidation of the INTERBANK BURUNDI group, apart from its Ngozi, Kirundo, Gitega and Muyinga branches that have a separate accountancy, also includes the Bank affiliated real estate company, INVESTIMMO.

Within an increase of 18.3%, the total consolidated balance has grown more rapidly than in 2000 (+10.4%) due mainly to the evolution of the earmarking of resources that increased by 15.9% for the credits and by 17.7% for the deposits.

DEBTS TO CLIENTS

Debts due customers increased by 17.7%, a slight increase as compared to the year 2000 (25.9% increase).

This relative counter-perfomance can be explained by the competition observed on the deposits market while the latter was already scarcely in cash.

FINANCIAL RESOURCES

Following the scarcity of deposits, the financial resources formed by the Central Bank refundingof 80% played an important role to the cash account and increased by 35.1%, reaching 4,535.5 M as compared to 3,356.3 M the previous year.

LOANS TO THE PRIVATE SECTOR

At the end of the fiancial year 2001, credits to the economy increased by half less than in the year 2000, amounting to 24,970.6 M as compared to 21,546.4 M twelve months earlier, ie an increase of only 15.9% against 31.8% in 2000.

The portion of the credits in th total balance remains important : 64.8% against 66.1% in the preceding financial year.

FIXED ASSETS

Similarly to the year 2000, the 2001 investment program mainly emphasized the geographical extension of our distribution network, especially buildings, computer equipment, furniture and stationery for the new branches at Muyinga, Buyenzi and Jabe, as well as fitting-out of our central reception hall at ur head office.

2. CONSOLIDATED PROFIT AND LOSS ACCOUNT

NET MARGIN OF UTILIZED FUNDS

The clientele and the fiancial intermediation margin increased by only 16.9% against 48.6% in the previous fiancial year, which seems to demonstrate that the Bank has reached its optimum level of earmarking of funds.

SUNDRY PROFITS AND COMMISSIONS

By decreasing by 7.8%, the commissions and various incomes suffered from the weakness effects of the activity at International Banking.

The only stand at 1,742.9 M against 1,890.8 M as at December 31, 2000.

OVERHEAD EXPENSES

The progression of the overheads expenses continue to fall: they had increased by 43.6 % in 1999, 44.3 % in 2000 and have only increased by 30.6 % as at December 31, 2001.

Staff salaries have increased by 11.3 %, largely due to the annual salary increases.

The other operating expenses have on the other hand increased by 50.3 % slightly higher than the year 2000 (+49.7 %).

A controlled increase despite the strong inflation (+20 %) and the stationary expenditures increased by the extension of branches network.

PROVISIOS FOR RISKS

Provisions constituted for the year amount to 116.7 M as compared to 73.4 M in 2000 and 42.4 M in 1999, and bring the total provisions for risks to 402.5 M after recovery of 22.0 M provisions.

These total provisions of 402.5 M cover compromised credits of 802.8 M, representing 3.2% of the total credits, a wastage rate amounting to 2.8% of the preceding year.

Taking into account the general provisions for risks of 2,935.0 M, the total provisions amount to 3,337.5 M and cover 13.8% of the off-coffee portfolio

NET RESULT

The consolidated net result for the year amounts to 1,121.0 M after 1,045.8 M provisions for tax; the portion of consolidated entities is ventilated as follows:

APPROPRIATION OF THE PROFIT

Dear Shareholders,

In conformity with article 52 of the Bank memorandum of association, the Ordinary General Assembly is invited to decide on the benefits distribution project for the year.

The latter amounts to 1,302,258,670 BIF taking into account the carried forward benefits of 181,250,574.

We suggest the following allocation:

ADMINISTRATION

In compliance with article 18 of the Bank memorandum of association, the mandates of the following directors:

- Father Gabriel BAZIRUWISABIYE
- Mr. Arturo COSTA
- Mr. Georges COUCOULIS
- Mr. Callixte MUTABAZI
- Mr. Bonaventure NICIMPAYE
- Mrs. Marguerite RUMBETE
- SALEX CORPORATION

Expire at the end of the present session of the Assembly.

These Directors can be re-eligible and are seeking your votes.

If these candidates are agreeable to you, their mandate would expire at the end of the Ordinary General Assembly in the year 2003.

In pursuance of article 44 of the memorandum of association, the mandate of the Auditor of Corporate Accounts, Mr Prime NYAMOYA, expires at the end of the present Assembly.

This Auditor is re-eligible and is presenting himself for election. If this candidate is agreeable to you, his mandate would expire at the end of the Ordinary General Assembly in the year 2005.

We would not like to end the presentation of this report without congratulating and thanking the Management Committee and the whole staff for the dynamism and professionalism they have proved in the pursuit of the year 2001 objectives, and we encourage them to increase their efforts, creativity and lucidity for renewed and reinforced achievements at the end of the financial year 2002.

The Board of Directors