NBC ltd. Annual financial results for quarter ended 30th June'2003

INCOME STATEMENT

						(AMOUNT IN MILLION SHILLINGS)
				Current  quarter ending 30.06.2003	Previous  quarter ending 31.03.2003	Current year Cummulative 30.06.2003	Previous year  Cummulative 30.06.2002
1	Interest Income			5,402	4,717	10,119	9,707
2	Interest Expense			(510)	(414)	(924)	(1,306)
3	Net Interest Income			4,892	4,303	9,195	8,401
4	Bad Debts Written Off			(194)	(193)	(387)	(131)
5	Provision For Bad & Doubtful Debts			524	(525)	(1)	1,309
6	Non Interest Income:			4,252	4,833	9,085	7,892
	6.1 Foreign Exchange Profit/(Loss)			1,494	1,822	3,316	2,338
	6.2 Commissions And Fees			2,758	3,011	5,769	5,554
7	Non Interest Expense			(5,359)	(5,562)	(10,921)	(9,409)
8	Losses/(Recoveries) on behalf  of the Government			(541)	801	260	(200)
	of Tanzania
9	Operating Income Before Tax			3,574	3,657	7,231	7,862
	and Extraordinary Items
10	Extraordinary Gains (Losses)			-	-	-	-
11	Income Tax Provisions			(1,198)	(1,184)	(2,382)	(2,425)
12	Profits attributable to shareholders			2,376	2,473	4,849	5,437
	Number Of Employees			791	787	791	785
	PERFORMANCE INDICATORS
	(i) Return on average total assets*			2%	2%	2%	3%
	(ii) Return on ordinary Shareholders' Funds			28%	31%	29%	33%
	(iii)Non interest expense to gross income			56%	58%	57%	53%
	(iv) Interest margin to average interest earning assets			6%	6%	6%	6%
	* Return on average total assets is computed using
	Profit After Tax and average of current quarter and previous quarter total assets.

CASH FLOW STATEMENT

						(AMOUNTS IN MILLION SHILLINGS)
						Current quarter	Previous quarter
						30th  June 2003	31 st March 2003
I	Cash flow from operating activities:
	Profit before Taxation					3,574	3,657
	Adjustment for non-cash items:
	Depreciation and amortization					456	448
	Tax paid					(1,112)	(1,112)
	Allocation to Government					541	(801)
	Net change  in money market placements					-	-
	Net change in loans and advances					(15,689)	(16,552)
	Gain/loss on sale of assets					-	(2)
	Net change in deposits					(6,329)	(202)
	Net change in certificate deposits					-	-
	Net change in short term negotiable securities					-	-
	Net change in other assets					(309)	11,699
	Net change in other liabilities					(8,001)	16,714
	Other-net change in SMR deposits					1,000	(4,000)
	Net cash provided (used) by operating activities					(25,869)	9,849
II	Cash flow from investing activities:
	Dividends received					-	-
	Purchase of fixed assets					(1,592)	(835)
	Proceeds on sale of fixed assets					-	2
	Acquisition of Government securities					-	(24,300)
	Proceeds from redemption of Government securities					23,691	-
	Net cash provided (used) by investing					22,099	(25,133)
III	Cash flow from financing activities:
	Repayment of long-term debt					-	-
	Proceed from issuance of long-term debt					-	-
	Proceeds from issue of shares					-	-
	Dividend paid to members of the bank					-	(7,500)
	Net change in other borrowings					-	-
	Others					-	-
	Net cash provided (used) by financing activities					-	(7,500)
IV	Cash and cash equivalents
	Net increase (decrease) in cash and cash equivalents					(3,770)	(22,784)
	Cash and cash equivalent at the beginning of the quarter					171,564	194,348
	Cash and cash equivalent at the end of the quarter					167,794	171,564
	Signed by
		Gelard Jordaan			Chief Executive Officer
		Johann De Wet			Head of Finance
		Jonathan Ndosi			Ag. Head of Internal Audit
We, the undersigned non-executive members of the board of directors, attest to the correctness of the above statements. We declare that the statements have been examined by us, and to the best of our knowledge and belief have been prepared in conformance with the instructions and are true and correct.