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1. Consolidated Balance Sheet Data

• Depts to clients
• Financial resources
• Loans to the private sector
• Fixed assets

2. Consolidated Profit and Loss Account

• Net margin of utilized funds
• Sundry profits and commissions
• Overhead expenses
• Provisions for risks
• Net result
• Appropriation of the profit
• Administration

1. CONSOLIDATED BALANCE SHEET DATA

The following consolidated data arise from the area of consolidation of the Bank which includes its real estate company, INVESTIMO in addition to its Ngozi, Kirundo, Gitega and Muyinga branches that have a separate accountancy.

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With an increase of (+45.9 %), the total consolidated balance has grown more rapidly than in 2001 (17.7 %), due to the increase of the earmarking of resources by 67.0 % for the deposits of customers and 43.8 % for the credits, but also (+65.3 %) for the Sundry assets, mainly drawn by the assets in foreign banks.

DEBTS TO CLIENTS

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Deposits from clients highly increased to 67.0 % reaching 41,282.4 M as compared to 24,714.1 M the previous year.

The exceptional outputs in a disrupted socio-economic environment are due, of cause, to the extension of our distribution network but also to the good coffee season 2002/2003, of which we take the lead, and to the high increase of foreign currency resources with an outstanding amount reaching the exchange value by nearly 8 billion Burundi francs.

This favourable evolution of customers resources has benefited to all types of deposits, i.e. an increase by 66.1 % for deposits at sight and one month at most, 99.9 % for deposits fore more than one month, which benefited from the reinjection of compensation funds from the European Union auction into the banking system, and 36.3 % for the savings deposits.

FINANCIAL RESOURCES

Following the favourable evolution of resources from customers, the resort to the central Bank refinancing, the main financial resource, has been less characterised (-5.7 %) in spite of a very sustained demand for credits.

The financial resources thus reach 4,278.8 M as compared to 4,535.4 M at the end of December 2001.

LOANS TO THE PRIVATE SECTOR

With a low progression as compared to resources (+67.0 %), credits to the economy however highly increased to 35,908.6 M as compared to 24,970.6 M at the end of December 2001, i.e. an increase by 43.8 %.

The portion of the credits in the total balance remains important and almost unchanged : 63.8 % as compared to 64.8 % twelve months before.

FIXED ASSETS

The 2002 investment program has again mainly emphasised the distribution network especially buildings, computer equipment for the connection of Kirundo and Muyinga branches, stationery and furniture for the new sites.

In addition, the Bank has made an effort to acquire new vehicles for heads of departments, in a move to improve their socio-professional conditions and to promote its outstanding image.

2. CONSOLIDATED PROFIT AND LOSS ACCOUNT

NET MARGIN OF UTILIZED FUNDS

Following the high progression of deposits from customers, the financial expenditures have essentially increased, reaching 2,707.9 M as compared to 1,956.2 M in 2001, i.e. an increase by 38.4 %, as compared to only 0,3 % the previous year.

Consequently to the financial expenditures explosion, the interest margin has increased less quickly than at the end of December 2001, i.e. + 7,7 % instead of 16.9 % twelve months before, whereas even the outputs from our relations and the treasury strongly increased by 20.7 % to 5,571.6 M as compared to 4,614.2 M on December 31st, 2001.

SUNDRY PROFITS AND COMMISSIONS

Whereas they had decreased by 7.8 % at the end of the financial year 2001, the commissions and various incomes at the end of December 2002 significantly increased by 13.0 % to 1,970.1 M, as compared to 1,742.9 M the previous year.

This performance is widely due to the sustained activity at the International Banking following the relief in foreign currency treasury by resources from customers.

The incomes on foreign operations have thus increased by 28.6 %.

OVERHEAD EXPENSES

Although they are standing at a high level, i.e. 2,648.7 M, the overhead expenses continue to fall ; whereas they had increased by 43.6 % in 1999, 44.3 % in 2000 and 30.6 % in 2001, they have only increased by 23.8 %at the end of December 2002 staff expenses have significantly increased by 27.3 % as compared to 11.3 % in 2001, standing at 1,039.9 M.

This increase is widely due to the annual increases in bonuses and allowances as well as the new recruitment's operated for Buyenzi and Jabe branches inaugurated respectively in August 2002, and January 2002.

The other operating expenses, except the depreciation (+42.5 %), have slightly increased by 16.4 %, standing at 1,226.4 M, as compared to the increase of 50.3 % in 2001.

After all is said and done, the increase of overhead expenses remain generally controlled with regard to the high inflation prevailing and the important stationary expenditures increased to the extension of the branches network.

PROVISIONS FOR RISKS

Provisions constituted for the year amount to 303.5 M as compared to 116.7 M in 2001 and 73.4 M in 2002.

The level and the progression of these provisions reflect the increase for risks following the long socio-economic crisis which strongly disrupt the economy.

Those provisions bring the cumulative provisions for risks to 661.3 M after recovery of 44.6 M provisions.

They cover a compromised outstanding amount of 1,353.6 M representing 3.8 % of the credit portfolio, a wastage rate amounting to 3.2 % the preceding year.

Taking into account the general provisions for risks of 3,000.0 M, the total provisions amount to 3,661.3 M and cover 11.9 % of the off coffee portfolio..

NET RESULT

The consolidated net result for the year amounts to 1,085.3 M, after 840.9 M provisions for tax and 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 BIF 1,315,038,646 taking into account the carried forward benefits of 229,758,670.

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 2004.

In pursuance of article 44 of the memorandum of association, the General Assembly would deliberate on the renewal of the mandate of the Auditor of Corporate Accounts, Mr. Déogratias BANDEREMBAKO, and the designation of Mr. Léon MWEBEYA as auditor, in replacement of Mr. Prime NYAMOYA.

If these candidates are agreeable to you, their mandates 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 sustained work, their determination and professionalism as well as their renewed endeavors towards the interests of the Bank and its clientele.

We heartfully thank them.

The Board of Directors.