FirstBank Annual Report 2010

1. First Bank of Nigeria
Results Presentation
For the nine months ended September 2010
www.firstbanknigeria.com/investorrelations

2. Cautionary Note
This presentation is based on the financial results of FirstBank s unaudited results for the period ended September
30, 2010, consistent with Nigerian GAAP. First Bank of Nigeria Plc ( FirstBank or the Bank ) has obtained some information from
sources it believes to be credible. Although FirstBank has taken all reasonable care to ensure that all information herein is accurate
and correct, FirstBank makes no representation or warranty, express or implied, as to the accuracy, correctness or completeness of
the information. In addition, some of the information in this presentation may be condensed or incomplete, and this presentation may
not contain all material information in respect of FirstBank.
This presentation contains forward-looking statements which reflect management's expectations regarding the group s future
growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as
"anticipate", "believe", "expects", "intend" "estimate", "project", "target", "risks", "goals" and similar terms and phrases have been used
to identify the forward-looking statements. These statements reflect management's current beliefs and are based on information
currently available to the Bank's management. Certain material factors or assumptions have been applied in drawing the conclusions
contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding
future expectations generally.
FirstBank cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from
the results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue reliance
should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or
factors, reference should be made to the Bank's continuous disclosure materials filed from time to time with the Nigerian banking
regulatory authorities. The Bank disclaims any intention or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Kindly note that in this presentation, all reference to:
Q1 09 indicates the period April to June 2009
H1 09 indicates the period April to September 2009
9 Mths 09 indicates the period April to December 2009
2

3. Outline
1 Key Observations in Q3 10
2 Financial Review
3 Summary & Outlook
3

4. Headlines for Q3 10 - Road Map
Stable Improving
Improving Strong & Liquid
Highlights Core Profitability
Funding Mix Balance Sheet
Earnings & Margins
Healthy Volatility In Slightly Pricing
Macro
Economic Yields & Weaker Pressure on
Considerations
Activity Interest Rates Naira Asset book
Strategic Service Performance
Growth Talent
Delivery Excellence Management
4

5. Highlights
What FirstBank Delivered in Q3 10
Strong & liquid balance Sheet
17% Capital Adequacy Ratio, significantly above regulatory
requirements with Tier 1 capital ratio of 15.4%
Stable net loan to deposit ratio of 74.1%
Liquidity ratio of 64.7% (Sept 09: 78.7%)
Non-performing loan ratio of 5.8% (Sept 09: 8.1%)
Business volume
Key performance indicators reflecting
QoQ and YoY growth in deposit of 8.82% and 29.38%
Highlights a satisfactory result in challenging
conditions respectively. YTD growth of 15.8% to N1.6tn
Encouraging lending growth up; 4.98% QoQ, 5.36% YTD and
32% YoY.
Earnings
Resilient gross earnings at N177bn, down 10.57% YoY
Improved mix of earnings with non-interest income contributing
23% (Sept 2009: 17.6%)
Profitability
Expanding net interest margins
Profit before tax of N40.7bn.(Year to Sept 09: N6.6bn loss)
ROAE: 14.1%
ROAA:1.9%
Cumulative earnings per share of N1.33 from (N0.43) in year to
Sept 2009
5

6. Macro Considerations
Global
World economic growth was predominantly driven by emerging and developing economies.
Growth in advanced economies restrained by low consumer spending, high
unemployment levels, stagnant incomes and reduced household wealth
Risk aversion prevalent as investors move to quality assets
Uptrend in oil prices due to supply constraints, weakened dollar and expectation of a cold
winter in temperate regions.
Nigeria
Inflation worries emerged in the quarter under review rising by 13.6% as at September
Economic output
Macro healthy, but risk 2010.
Considerations aversion still very Q3 GDP growth of 7.72% was driven mainly by the non-oil sector but supported by
prevalent improving oil sector dynamics.
Strong output growth has failed to support job creation especially in the formal sector
Interest rates and bond yields declined for the larger part of the year on excess liquidity
concerns.
Recent hike in benchmark rate and illiquidity has led to a spike in short term interest rates
and bond yields.
Equities under pressure with the ASI declining by 8.29% QoQ bringing YTD performance
to 10.68%.
The Naira depreciated slightly by 0.91% in Q3 over concerns of reduction in foreign
reserves as well as apprehension ahead of the 2011 elections.
Banking Industry
The CBN focused on strengthening the regulatory framework for the industry.
The new prudential guidelines provide clearer provisioning method and matches nature of
loans advanced
Dismantling of the universal banking model
6

7. Macro Considerations
40
33,000
Bond yields, NIBOR and NSE
270 Naira against major currencies NSE All Share Index
return against inflation
30
255
31,000
20
240
29,000
225 10
210 27,000 % 0
N
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
195
-10
25,000
180
-20
165 23,000
-30
150
21,000
-40
135
120 19,000 -50
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
10Y FGN Bond Yields NIBOR
GBP Euro USD
Inflation NSE YTD (%)
7

8. Strategic Delivery
Strategic focus on being The leader, The Best
Attain full benefits of scale and scope by
Growth
Growth accelerating growth and diversification of
assets, revenue and profits
Service Drive unparallel service levels by developing
Strategic Key objective: Be the clear leader Excellence world class institutional processes, systems &
Delivery and Nigeria s bank of First choice capabilities
Performance Deliver unmatched results by creating a
Management performance culture with clear individual
accountability at all levels
Become a hub for the best industry talent;
Talent cultivate a highly-motivated, capable, and
Management entrepreneurial workforce
8

9. Strategic Delivery - Growth
Restructuring for Growth
Significant SSA
expansion and growth in Group Governance: We are optimising our group structure for tax
banking with selective efficiency, legal/regulatory compliance and to ensure our structure supports
international forays in non- our aspirations.
Build scale bank financial services
internationally.. Focus on driving Investment Banking & Asset Mgt: On going realignment of FBN
LONG TERM economies of scale and Capital, First Funds, FBN Securities and First Trustees to drive increased
2013 - 2014 scope across international synergies
network and portfolio of
FBN Life Assurance Ltd : Our JV with Sanlam commenced operations in
businesses
September, offering group life products, with a view to expanding the
Overview of Growth Strategy
product offerings in the fourth quarter. A Chief Operating Officer from South
Drive bank Africa has also been recruited.
transformation to
Holding Company Structure remains our preference in complying with the
completion
Diversify group Build scale in CBN guidelines. Critical considerations still being resolved, however, border
and transform investment banking and on tax efficiency
bank... insurance and leverage
Commencement of new operating model within the bank along
MEDIUM TERM
group synergies
2011 - 2012 Commence SSA institutional, corporate, retail and public customer segments expected to
regional expansion in drive deeper product penetration and sector expertise; relationship
earnest management based on deep understanding of customer needs; continued
focus on innovative ways to service the retail market with technology and
Drive organic and simple easy-to-use products
inorganic expansion
International Expansion: Our representative offices in South Africa and
Continue aggressive
Consolidate in bank transformation China have continued to generate new business opportunities/referrals. We
Nigeria... Structure for growth in will continue to expand in identified markets through a combination of
SHORT TERM investment banking and acquisitions and greenfield strategies driven by consideration of
2010 insurance
Rep office expansion macroeconomics, size, potential growth rate of banking industry and market
conduciveness amongst other strategic factors
Brand Transformation: Continued modernisation of the image and
perception of the FirstBank brand 9

10. Strategic Delivery Growth
Proposed Holding Company Structure
FBN HOLDING PLC
CORPORATE SHARED
CENTRE SERVICES
INVESTMENT
BUSINESS FIRST BANK OF EMERGING
BANKING & ASSET INSURANCE
GROUPS NIGERIA VENTURES
MANAGEMENT
REP OFFICE SA FIRST TRUSTEES FBN LIFE FBN REAL
INSURANCE ESTATE
REP OFFICE FIRST FUNDS
FBN INSURANCE FBN
CHINA FBN SECURITIES
BROKERS MICROFINANCE
FBN BDC
FBN CAPITAL FBN
MORTGAGES
FBN BANK (UK)
FIRST
REGISTRARS
10

11. Strategic Delivery Growth
New Bank Operating Model
New Bank Structure
FirstBank
1 2 3 4 5
Institutional Corporate Retail Public Sector Public Sector
Operations Risk Finance
Banking Banking Banking North South
Bank Customer Segments
Company
Secretary
Human
Capital Mgt
1Insti- HNI Federal
tutional Gov t
Legal
4 5
Corporate
2 Corpo- Affluent Trans-
State formation
rate Gov t
3 Internal audit*
Enterprise Mass Local Strategy &
market Corporate
Gov t Development
Corporate
Businesses Individuals Public sector Commu-
nications
*Reports to Board of Directors via Board Audit and Risk Assessment Committee
11

12. Strategic Delivery Service Excellence
We highlighted five key initiatives to transform our service delivery based on customer feedback and our competitive environment
Transforming Service Delivery
Issue Resolution/ Centralized Processing Branch Manning/Front-Line Channel Optimization
Customer Experience & Branch Process Transformation Transformation & Migration
reengineering
Implement a Optimize branch Transform the branch Optimize our manning Optimize costs and
framework that enables operations by centralizing experience by structure , empower increase customer
collection, resolution, non-customer ensuring all elements staff and align our satisfaction by
and future prevention facing/transactional are in line with our front-line staff with our ensuring alternative
of various customer processes, and service delivery service delivery channels work, and
issues redesigning/automating aspirations mandate migrating customers to
Set expectations on remaining processes (people, processes, appropriate channel
customer experience at within the branch layout, ambience, etc) (based on segment
each touch point, and Improve standardization needs and
monitor compliance of service, and requirements)
processing speed
How do we optimize How can we drive
How can we minimize How can we
How can we identify our manning levels customer self-
transaction time and maximize each
every customer issue and ensure our service service ?
create more time for customer visit to the
and prevent it from objectives are
sales/customer branch for sales?
ever happening again? translated through our
interaction?
frontline staff?
12

13. Strategic Delivery Service Excellence
CPC/Branch Process Re-engineering: We are taking an end-to-end approach in redesigning branch
processes
Objective Sample Processes Example Activities
Improve Account Opening Fulfilment Account creation/data
standardization and Account maintenance entry
leverage economies Retail loan processing Welcome Pack creation
of scale for non- Retail loan maintenance (cheque book, alternate
Centralisation customer facing Corporate Loan setup channels set-up, ATM
activities COT ammendments card, etc)
Fixed deposit processing
Salary processing
Cheque confirmation Confirmation process
Improve turnaround
Salary processing Collection, verification and
Automation/ time; increase
efficiencies, and Intersol Cheque Book/Savings upload
Simplification Withdrawal booklet request
reduce error rates
Form redesign
De-congest the ATM Balance enquiries
branch; drive self- Internet Banking Cash Withdrawals below
Channel
service to improve Contact Centre threshold
Migration
customer Funds transfer
satisfaction and Cheque book requests
optimise costs Cheque confirmation
13

14. Strategic Delivery Service Excellence
Branch Transformation: We are developing a prototype branch to reflect our end-to end service
delivery aspirations
Pilot approach to test the concept and
Raise awareness and consideration of bank offerings assess impact on
Leverage redesigned processes & channel migration strategy to Selected POC branches
meet/exceed service expectations and create cost-efficiencies
Objectives Attract sales-related visits using façade
Improve perception - leave a lasting impression
Physical branch format Staff factors (e.g. reporting
(e.g. lines, skills, competencies and
layout, communications mindsets/ culture)
media and
aesthetics/
design)
Processes
Marketing Tactics Tracking
(targeted product and analysis of
placements; tools to drive performance against
customer engagement, etc) objectives to enable
effective management
14

15. Strategic Delivery Service Excellence
Manning/Front-Line Transformation: Implementation of the new operations structure providing a
platform to address both hard and soft issues
Hard Issues (Structural) Soft Issues (Engagement)
Job grade alignment Role-Fit
Manning levels Knowledge Gap
Transaction Volumes (Branch categorization)
Transaction Types Work Overload
Leave days
Career Progression
Simplified Structure & synchronized with CPC/branch process
re-engineering
Service Bottlenecks (review of limits for all Unit Heads)
Improved Core/Non-Core staff mix
15

16. Strategic Delivery Service Excellence
Channel Optimization & Migration: Improving ATM uptime is top priority; driving online banking and
contact centre awareness/usage also key
Current Initiatives
Quick Fixes
Weekly ATM optimization report, Name N Shame
Verve card supply
ATM Optimization Structural
Regionalized ATM support structure (IT)
Monitoring tool; Vendor support & maintenance agreements/SLAs;
ATM Branch Operations (Operations)
ATM Fit notes; Clear ATM custodian role training, monitoring and
consequence management
Card production & issuance
ATM reconciliation (Internal Control/Audit)
Increase accessibility by removing bottlenecks in user sign-up and
password reset process
Internet Banking
Increase functionality (cheque confirmation)
VOIP phones at branches to enable free-calls from branch
On-going campaign to increase awareness/usage, coupled with additional
functionality (e.g. cheque confirmation)
Contact Centre Expand services Outbound (surveys, welcome calls, targeted
marketing, collections, etc)
16

17. Strategic Delivery Service Excellence
Cost Optimisation: We have made some progress against the key areas identified, but more work
remains
Projects Description Initiatives*
Execute quick-win cost optimisation initiatives- waste Increased utilization of voice-over-IP (VOIP)
Quick-Wins items with little to no impact on strategy/employee telephone usage in branches
morale; sustainable long-term; can be done in a Deletion of Hold Statements
relatively quick time frame Email statement drive
Elimination of Double Ply flow line purchase
Diesel/Early Closure
Assess current manning levels and manning Execution ongoing through implementation of new
Costs Structure approach (with an initial focus on branch operations structure
Manning operations), and identify ways to improve our
operating efficiency and provide more satisfying jobs
for our staff
Review current expense control policies and Centralised Admin
Expense Control procedures, and identify opportunities for Fuel card implementation (H/O; Lagos, Abuja, PH)
improvement, especially for controllable costs Review of Hotel Accommodation Policy
Travel Policy amendments
Review big-ticket maintenance items and identify H/O Centralized Fleet Management
Depreciation/ areas where we can eliminate and/or optimise our
Maintenance maintenance spend
Evaluate alternative business models for our existing
operations (e.g. outsourcing, in-sourcing, leasing, etc) ~ 400 million naira+ estimated
annual impact at steady state
* Initiatives in italics have not yet been included in the annual savings estimate 17

18. Strategic Delivery Performance Management / Talent
Staff rejuvenation/corporate workforce renewal
Performance Management / Talent
Implementation of the balanced score card
Training intervention has been designed and selected to
support the bank s strategic aspirations
The primary focus of training up till the end of September was
on product, banking, IT and credit
Commenced the use of in-house developed e-learning
courses
The smooth take off of the new operating model attests to the
efficacy of the orientation programmes
18

19. Outline
1 Key Observations in Q3 10
2 Financial Review
3 Summary & Outlook
19

20. Evolution of nine months to September 2010 group profit after tax
N bn
136.3
40.8
5.7
46.7
40.7
83.9 32.6
8.1
Interest Income Interest Expense Non-Interest Income Provisions Operating Expenses Profit Before Taxation Tax Profit After Tax
20

21. Top line performance remains resilient in the face of challenging operating
conditions
Gross Earnings N bn Interest Income
5%
17% 14% 14% 12% 16%
196
177
34
41
54% 78%
125 122 66% 73%
73% 70%
22 28
162 62
61 136 11%
11 103 12 1%
94 0% 0% 0%
50 50 1% 19% 20% 17% 15%
9% 14%
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10 Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
Interest Income Non Interest Income Placements Treasury Bills Loans and Advances Others**
Non-Interest Income Comments
Year-on-year decline in gross earnings due to low interest rate
27% 29% 31% regime, liquidity glut and slow capital market recovery
38% 40% 40%
Other fees and commissions* Slower pace of economic recovery impacting transaction volumes
9% 8% 5% Improving contribution to top line by non-interest income
12% 10% 12% 10% 9% 9%
Remittance Migration to a much more customer focused operating model
fees /Management fees
8% 7% 8% expected to drive earnings growth via increased share of clients
Exchange gain/FX Income
28% 29% wallet
33%
37% 30% 29% Commission on turnover
Expect Q4 rise in yields to enhance interest income
Phased approach to increasing proportion of transactions with
24% 24% Other income shorter tenors and higher yields expected to benefit growth in non-
18% 14% 14%
8% interest income
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
*Credit related fees , Letters of Credit commissions and fees , Financial advisory fees, Gains on disposal of investment properties , Commission on insurance premium , Commission on western union transfers , Loss/(Profit) on
disposal of property and equipment. **Advances under finance lease and commission on managed funds 21

22. Our spreads have improved, benefitting from historically low funding
costs, and contributing to margin expansion
Yield Net Interest Margin
11.8%
11.2% 7.2%
10.6% 6.7%
9.4%
6.0% 5.8%
8.2% 5.5%
7.6% 5.2%
7.4% 7.2% 7.2%
6.5%
96 90
4.1%
60 57
2.7% 28 28
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10 Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
Yield on Interest Earning Assets Cost of Interest Bearing Liabilities Net Interest Income (N'bn) Net Interest Margin
22

23. We expect that our sustained investments in automation and staff
rejuvenation will drive improvements in productivity in coming periods
Operating Expense Breakdown (N bn) Provision for Credit and Other Losses (N bn)
84 40.6
78 0.1
6%
4%
29.5
30% 38%
55 0.0
49
7%
5%
7% 37% 7%
40% 40.5
23 26 29.5
7%
5% 7% 7%
41% 59% 39% 49% 5.7
7% 48% 7% 50%
(1)
1.9 (1.5)
47% 46% 6.7
0.1
1.8 2.7 3.8
(1.0)
(4.2) (4.7)
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10 Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
Staff Cost Depreciation Admin and General Expenses NDIC Premium Loan Loss Provision Other Provisions
Movement In Provision For Credit Related Cost Efficiency
Losses (N bn)
Pre-provisioning cost to income* Post-provisioning cost to income*
6.7 Operating Income Growth Operating expenses Growth
14% 13%
23.7
10%
12%
8% 83% 9%
2%
55.1 64% 65% 63% 64%
59% 61% 60% 62%
126%
38.0 -2%
-10% 80%
-17% 65%
1-Jan-10 Additional Amounts w/off 30-Sep-10
Provision Q1'09 Q2'09 Q3'09 Q1'10 Q2'10 Q3'10
*cost to income ratio operating expenses/operating income 23

24. Steady improvement in profitability
Profit Before Tax (N bn) 9 months 2010 PBT Split
41
32 Retail & Corporate Banking
90.3%
Investment & Capital
Markets 7.3%
Asset Management 0.3%
15 N40.7bn
14
12 Mortgage Banking -0.3%
3 Other* 2.1%
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
ROE, ROAA & EPS H1 2010 PBT Split
15.9%
14.1%
16.4%
Retail & Corporate Banking
9.8% 72.5%
Investment & Capital
Markets 10.5%
3.0%
2.2% 1.9% Asset Management 14.7%
1.7% 1.2% 2.2% N31.7bn
0.4% Mortgage Banking 0.0%
0.2%
1.37 0.15 0.32 1.70 1.75 1.33 Other* 2.2%
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
EPS (Kobo) ROAE ROAA
* Insurance, Pension Custodians, Bureau de Change & First Funds 24

25. Benefiting from our strong brand and continued customer confidence and loyalty, we have
continued to grow and improve the quality of our deposit funding especially at the low cost
end
Balance Sheet Structure Sept 10 (N bn) Deposits (N bn)
2,424 2,424
Other Assets 5% 129 15.8%
Managed Funds 2% 55
182 Other Liabilities 17%
73 Other Borrowings 3% 8.6%
Investments 21% 490 227 Due to Other Banks 9%
1,550
1,407 1,427
1,339
1,198
1,150
Net Loans & Advances 47% 1,148 1,550 Deposits 64%
Treasury Bills 1% 25
Inter Bank & Cash 24% 577 83 Short Term Liabilities 3%
309 Capital & Reserves 13%
Assets Liabilities Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
Deposit Mix Deposit by Maturity (bank only)
Current deposits Savings deposits Term deposits Domiciliary deposit 8.8% 8.5% 9.2% 8.5% 9.2% 10.2%
15.0% 9.1% 15.0%
10% 9% 9% 9% 15.5% 16.0% 16.3%
14% 15%
25% 14.1% 13.7% 25.2% 13.9% 14.1% Over 12 months
31% 31% 31% 19% 16% 14.0%
6-12 months
24.8% 25.3% 25.4% 24.1% 23.4% 3-6 months
28% 29% 28% 20.8%
21% 22% 20%
1-3 months
0 - 30 days
39% 40% 39% 38% 41% 36.8% 37.4% 35.6% 37.2% 36.6% 36.1%
38%
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10 Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
25

26. Our capital and regulatory ratios are significantly in excess of regulatory
requirements, and adequate to support our business
N bn X
X 78.7%
X 75.6%
385
373
X
X
67.0%
45 X 64.8%
336 335 335 336 63.5%
69
X 62.0%
29 32
X
32 31
X
46.2%
42.9%
40.4% 41.3%
X 36.7%
X 33.2%
X
25.9%
22.4%
19.4% 19.9%
340 18.0%
X 22.8% 17.0%
307 303 303 303 304
X 20.5%
17.5%
Xxx 16.2% 16.3% 15.4%
1,694 1,733 1,857
1,633
1,403 1,411
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10 Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
total RWA (N'bn) Tier 1 capital adequacy ratio %
Tier 1 Capital Tier 2 Capital total capital adequacy ratio % Liquidity Ratio (Group)
Liquidity Ratio (Bank)
26

27. We are gradually improving the mix of our interest earning assets in favour
of higher yielding assets, whilst maintaining a diversified loan book
Interest Earning Assets Net Loans & Advances** (N bn)
N1,917 bn N2,302 bn
2.6% 2.9% 5.4%
2.4% 2.4% 4.9%
Cash and balances with Central
15.5% Bank
1,148
21.3% 1,089 1,074 1,094
0.3% Managed funds
0.3% 913
Investment 868
32.7% 22.2%
Investment property
1.1%
1.2%
Due from other banks
49.9% Treasury bills
45.3%
Loans and advances to customers
Sep-09 Sep-10
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
Gross Loans and Advances (sector exposure) Business Lines (Bank Only)
(Bank Only)
Public Sector 0.6% 8%
Information &
(6.1%) 6% 19.6%
Finance & Insurance General 14.6% Capital
Commerce* 20.1% (21.4%) Power &
8%
5.7% (6.4%)
(14.5%) Market* 3.1%
Energy* 0.1% 2.6% (2.9%) 11% 4.6%
Transport Money market line
(0.1%) 9.6%
0.1% (0.1%) Financial instituitions & treasury
Professional*
0.6% (0.5%) 16.7% Public sector
Education* 0.5% N1,088bn 32%
(0.5%) Admin & Support 0.8% Consumer
Services* 0.3%
General Commerce
(0.3%) 1% Retail
6.9% (4.6%)
Agric/Misc
45.5%
34% Corporate
Real Estate 9.8% Oil & Gas 24.1% Human Health*
(10.6%) (23.2%) 0.1% (0.1%)
Construction Agriculture
0.6% (0.6%) Manufacturing 0.8% (0.8%) Sep-09 Sep-10
8.5% (7.3%)
( ) June 2010 * New sectors introduced by the CBN **includes advances under finance lease 27

28. Ultimately, our key focus is on improving the quality and efficiency of
our balance sheet
By Type (bank only) Ageing Analysis of Performing Loan Book (bank only)
N974 bn N960 bn N1,039 bn
1.7% 2.0% 1.4% 1.5% 1.5% 1.4%
17.5% 14.0% 16.6% 14.4% 13.9%
21.2%
9.9% 6.8% 6.5% 8.5% 8.5%
10.4%
12.5% 12.4%
14.3%
Others 2.2%
1.6% 61 - 90 Days
Overdrafts
2.5% 31 - 60 Days
74.7% 75.2% 77.5% 76.3% Commercial Papers
68.0% 0 - 30 Days
62.7% Term Loans
89.3%
88.0%
85.1%
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10 Q1'10 H1'10 9 Mths'10
Balance Sheet Efficiency Comment
Leverage Ratio (Times) Loan to Deposit Ratio Steady growth in loan book, driven by the corporate, retail and consumer
81.3% segments
79.4% Reduced rate of new NPL formation due to remedial management and
76.3% 76.7% enhanced monitoring by relationship mangers
74.1% Continually reviewing portfolio in line with prudential guidelines, whilst
72.5% seeking to optimise volume growth
Phased approach to skewing loan book to shorter tenored, higher yielding
7.4 7.8 transactions
7.0 7.3
6.5 Focus on increasing share of wallet of current clientele
5.7
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
28

29. We have continued to focus on our non-performing loan portfolio, in order
to drive sustained recoveries
NPL & Coverage Ratios NPL Ageing Analysis (bank only)
NPL NPL Coverage NPL %
11.1% 7.2% 8.4% 13.4% 14.4% 16.7%
77.2% Interest in suspense
72.3% 70.1% 71.5%
67.1% 22.8%
61.4% 32.2% 39.7%
46.0%
44.8% 35.6% above 360 days
(Lost)
180 - 359 days
35.9% (Doubtful)
8.1% 8.2% 7.9% 5.7% 5.8% 29.7% 13.0%
4.7%
34.8% 30.4% 90 - 179 days
20.8%
(Substandard)
94 91
74 65 70
44 33.8%
27.0% 26.9%
17.1% 21.0% 17.4%
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10 Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
NPL Sector Exposure Sept 2010 (bank only) NPL By Business Lines (bank only)
Agriculture 1.8%
(0.9%) Manufacturing 0.5% 1.3% 0.6% 0.0% 0.3% 0.9% 1.7%
(4.7%)
18.6% 23.1% 17.0% 15.9% Agric/Miscellaneous
29.0% 0.2%
0.1% 0.3%
General 24.6% (18.8%) Construction 38.9%
Oil & Gas 13.6% 0.3% 11.9% 14.4%
1.2% (1.1%)
0.0% 16.7% Financial instituitions and
(13.6%) 15.9% treasury
General Commerce 11.4%
Government 0.2% 0.0%
(0.3%)
6.4% (5.4%) 23.1% Public sector
Transportation 16.3% 28.1%
16.9% 30.2%
N64.4bn 0.3% (0.2%) 27.7% Consumer
Power & Utility 0.2%
(2.2%) Information & 17.5%
Communication Retail
Finance & Insurance 0.3% (0.2%) 46.8%
42.1% 39.8%
15.9% (17.0%) 34.4% 32.8% Corporate
Real Estate 35.1% 25.9%
(35.6%)
Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10
29

30. Facilities Against Shares portfolio characteristics (Bank Only)
Mar 10 Jun - 10 Sep - 10
1 Facility Against Shares (FAS)1 - gross N53.1bn N48.7bn N28.7bn
2 Collateral value FAS1 N49.2b N51.1b N28.9bn
3 Portfolio Coverage of FAS1 92.7% 104.8% 100.8%
4 FAS/Total Loans and advances 4.8% 4.6% 2.6%
5 Non-Performing FAS1 Loans N30.1bn N23.1bn N10.1bn
6 Non-Performing FAS1 Loans (%) 56.7% 47.5% 35.2%
7 Provisions held against FAS1 N23.5b N19.2bn N5.84bn
8 FAS NPL Coverage 78.2% 82.8% 57.8%
9 % FAS1 backed by shares in private placement 35.0% 35.3% 50.9%
10 Margin Loan Exposure N11.8bn N13.9bn N5.9bn
11 Percentage of margin loans to total LAD 1.2% 1.3% 0.5%
12 Collateral value of total margin loans N6.9bn N8.9bn N2.2bn
13 Non-performing margin loans N11.7bn N5.8bn N3.8bn
14 Collateral value of non-performing margin loans N4.9bn N8.84bn N462m
15 % of FAS exposure renegotiated/restructured* 2.8% 5.9% 18%
1FAS Includes margin loans and other loans secured by shares
*Largely margin loan accounts Figures may not add up due to rounding 30

31. Outline
1 Key Observations in Q3 10
2 Financial Review
3 Summary & Outlook
31

32. Summary and Outlook
SSA underpinned by strong macroeconomic fundamentals and Nigerian imperatives
global economic recovery: GDP growth forecast of 5% in 2010 and Fully optimise and expand our diversified financial services
5.5% in 2011 Improve product and sector expertise with deep
understanding of customer needs
Nigeria is one of the fastest growing oil exporting economies in Improve existing client business volume and increase
Africa with GDP growth forecast of 7.4% in 2010 and 2011 (South clients
Africa 3-3.5% over the same periods). Deploy balance sheet towards higher yielding assets
Optimisation of liquid assets
The Nigerian banking sector remains significantly underpenetrated, Brand transformation
FirstBank has industry scale with 13% of total assets and 15% of
total loans and is well positioned to grow its share of market International imperatives:
Increase the Group s profile across Sub Saharan Africa via
We continue to progress towards its objective of being the clear international expansion. Benefits include:
leader and Nigeria s bank of first choice through the Greater earnings diversification
implementation of a focused transformation programme. Increased shareholder value through higher ROE
Enhance ability to effectively serve an increasingly
In the near term, our objectives borders on growth and international profile of corporate customers.
transformation of the Bank while creating growth options for the
group Above all, we believe that by focusing on our outlined strategies
and coming from a position of strength, we are well poised in
Our medium term strategy is to defend our leadership position, delivering exceptional returns while consolidating, diversifying and
whilst extending it across key dimensions (i.e. customers, brand, transforming the business and building scale internationally
service etc) to achieve superior/sustainable financial results
Build scale
Diversify group and internationally
transform bank
Consolidate
in Nigeria Significant SSA
expansion and growth
Drive bank
in banking with selective
transformation to
Drive organic and international forays in
completion
inorganic expansion non-bank financial
Build scale in inv.
Continue aggressive services
banking and insurance
bank transformation Focus on driving
and leverage group
Structure for growth in economies of scale
synergies
inv. banking and and scope across
Commence SSA
insurance international network
regional expansion in
Rep office expansion; and portfolio of
earnest
initial SSA explorations businesses
2010 2011 - 2012 2013 - 2014
32