First Bank of Nigeria Full Year December 2011 & First Quarter 2012 Results Presentation to Analysts and Investors

First Bank of Nigeria
Full Year December 2011 & First Quarter 2012 Results
Presentation to Analysts and Investors

Outline
Overview & Operating Environment
q Speaker: Group Managing Director Bisi Onasanya (Slides 4 6)

Financial Review
q Speaker: Chief Financial Officer Bayo Adelabu (Slides 7 25)

Risk Management
q Speaker: Chief Risk Officer Remi Odunlami (Slides 26 30)

Strategy
q Speaker: Chief Strategy Officer Onche Ugbabe (Slides 31 40)

Summary
q Speaker: Group Managing Director Bisi Onasanya (Slide 41)

Disclaimer

This presentation is based on First Bank of Nigeria Plc s ( FirstBank or the Group or the Bank ) audited results for the year
ended December 31, 2011 and unaudited IFRS results for the period ended March 31, 2012. To promote
comparability, during this transition to IFRS reporting from NGAAP, all results presented up to and including December
31, 2011 are prepared using NGAAP. The first quarter result for the period ended March 31, 2012 together with the 2011
comparable numbers have been shown separately using IFRS.

FirstBank 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.

© FirstBank 2012 | Results Presentation for FY 2011 & Q1 2012 | 3 May 2012
3

First Bank of Nigeria is a diversified financial services group
Overview

FirstBank
Financial
Review

First Bank FBN First FBN FBN Banque
First FBN Life First First FBN FBN
(UK) Insurance Pension Bureau de Microfinance internationale
Registrars Assurance Funds Trustees Mortgages Capital
Limited Brokers Custodian Change Bank de Credit
Management

FBN Bank
(UK) South
Risk

FBN China Abu Dhabi
Limited Africa
Securities Rep. Rep.
Paris Rep.
Office Office
Branch Office
Strategy
Summary

The FirstBank Group comprises 12 subsidiaries, spanning asset management, investment banking, capital
markets, insurance, microfinance, private equity, mortgage and pension fund custodian services making it one of the
most diversified financial conglomerates on the continent

4

2011: Continued progress towards achieving broader strategic imperatives

Very strong deposit growth
Overview

Accelerated earnings and margin expansion
Highlights
Rising non-interest income

Improving efficiency levels

Stronger business volumes and increasing share of the market
Financial
Review

Rising interest rate environment
Macro
Stable exchange rates
Considerations
Management

Fluctuating inflation rate
Risk

Higher oil prices

Restructuring for growth
Group Strategic
Business line expansion
Strategy

Focus
International expansion

Group synergies and cross-selling

Sequencing growth systematically
Summary

Growth and efficiency

Bank Strategic Service excellence
Focus
Performance management

Talent management

5

Improving outlook for the Nigerian economy

Global Economy
Oil production and price
Static global economic growth in 2011, estimated at 4.0% by the IMF
Overview

Growth driven by developing economies $
Bonny light price Domestic production (right scale)
Mbpd
4
150
The Nigerian Economy 3
According to the Nigerian Bureau of Statistics (NBS), GDP grew by 120
2
7.36% in 2011, as against 7.98% in 2010, driven largely by the non-oil
90
Financial
Review

sector 1

Inflation yoy declined from 12.1% in January 2011 to 10.3% as at 60 0
December 2011; bringing the average inflation rate for 2011 to 10.9% Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11
(2010: 13.8%). This rose to 12.8% yoy as at March 2012
Exchange rates and foreign reserves
Consistent increase in the monetary policy rate (MPR) by the CBN from
Management

N $
6.5% in January 2011 to 12% as at October 2011 as a pre-emptive 160 Foreign reserves (right scale) Exchange rates 50
Risk

measure to reduce inflation. MPR currently maintained at 12% 40
156
The mid-point of target official exchange rate was adjusted from
30
N150/US$1 to N155/US$1 and the band of +/-3.0% was maintained 152
20
amid pressure on the currency and by extension the external foreign
148
Strategy

reserves 10

Phased removal of fuel subsidy 144 0
Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12
The Banking Industry
Industry wide IFRS reporting implementation commencing from March Rates
2012
Summary

Monetary policy rate Prime lending rate Interbank call rate
Industry NPLs have reduced from 18% in 2009 to an estimated 9% due % T-bills Inflation

to the purchase of NPLs of about N3.14 trillion from the banking 20

industry by AMCON; freeing up balance sheets for stronger credit 15
growth
10
33% growth in credit to the private sector to N12.9 trillion in 2011
Cashless policy being introduced by the CBN with effect from April 2012 5
Mobile banking licenses granted to a number of banks
0
Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12
Source: CBN, NBS
6

Full Year 2011: Solid results despite challenging environment
Overview

27.6% growth in gross earnings to N296.3 billion (2010: N232.1 billion)
Earnings
45.6% growth in operating income to N259.2 billion (2010: N178.1billion)
Non-interest income contribution of 25.6% (Dec10: 24.3%)
Financial
Review

93% growth in profit before tax and exceptional item to N65.6 billion (2010: N34 billion)
48% growth in profit before tax to N50.1billionn (Dec 10: N33.8billion)
Cost to income ratio: 56.8% (Dec10: 67.0%)
Profitability
After tax ROAE: 13.0% (Dec10: 9.6%)
Management

After tax ROAA: 1.8% (Dec 10: 1.4%)
Risk

EPS: N1.40 (Dec 10: N0.95)
Net interest margin: 8.0% (Dec 10: 6.1%)

Capital adequacy ratio: 20.5% (Dec 10: 20.4%)
Strategy

Tier 1 capital ratio: 18.1% (Dec 10: 17.7%)
Stronger & more
liquid balance sheet Gross loan to deposit ratio: 66.6% (Dec10: 83.3%)
Liquidity ratio: 68.2% (Dec10: 50.9%)
NPL ratio: 2.6% (Dec 10: 7.8%)
Summary

34.3% growth in deposits to N1.9 trillion
9.2% growth in net loans and advances to N1.2 trillion; adjusted growth of 40.6%
Business volumes No of business locations: 717; ATMs: 1,538
Number of staff: Group 8,426; Bank 7,801
Number of customer accounts: 7.7 million (Dec 10: 6.3 million)
Number of cards: 4.3 million (Dec 10: 1.5 million); 76% card activity rate (2010: 48%)

7

Evolution of full year group profit after tax (N bn)
Overview

75.8
[56.5]
Financial
Review

[(22.4)]
220.4
(32.9) [(0.8)]
[175.6]
(11.9) [0.2]
[(3.7)]
[(53.9)] (15.5)
(1.5)
Management

(37.0)
Risk
Strategy
Summary

[(119.3)] 50.1
44.8
(147.4) [4.6]
[33.8]
(5.3) [29.2]

Interest income Interest expense Non-interest Loan loss provision Provision for other Exceptional item Share of associates Operating Profit before Tax Profit after tax
income losses (a) results expenses taxation
[]December 2010
(a) Includes provision for diminution in value of investments and doubtful receivables (b) Estimated

8

Significant improvements in revenue generation capabilities, resulting in
relatively higher run rates

Gross earnings N bn Gross earnings split by business lines FY 2011
Overview

Interest Income Non Interest Income Retail & Corporate Banking
95.1% (Dec 10: 95.1%) (a)
N296
Investment & Capital
N232 Markets 2.2% (Dec 10: 3.2%)
76 26%
N211
Financial

(b)
Review

57 24% Asset Management 0.6%
50 24% (Dec 10: 0.2%) (c)
N140
N296.3 bn
33 23% Mortgage Banking 0.9% (Dec
10: 0.4%) (d)
N63
Management

16 26%
Other 1.1% (Dec 10: 1.1%)
Risk

176 76% 47 74% 107 77% 161 76% 220 74%
(e)

FY'10 Q1'11 H1'11 9m'11 FY'11

Comments
Strategy

Gross earnings benefiting from expansion in both interest and non
interest income
Interest income benefitting from deliberate shift towards higher
yielding assets
Steady contribution from non-interest income
Summary

Non-interest income benefitting from improved efficiency, improved
customer service & delivery, innovative products & solutions to
clients
Focus is on driving contribution from subsidiaries by improving
group synergies and cross selling
Revenue growth to benefit from mobile banking and the CBN
cashless policy, cross selling and focus on non interest revenue

(a) First Bank of Nigeria & FBN UK (b) FBN Capital & First Registrars (c) First Trustees (d) FBN Mortgages
(e) FBN Life Assurance, FBN Insurance Brokers, First Pension Custodians, FBN Microfinance Bank & First Funds

9

...driven by growing business volumes, customer acquisition, rising yields
and margin expansion.

Interest income mix Non-interest revenue mix
Overview

Placements Treasury bills & investment securities Loans and advances N57 N16 N33 N50 N76
2.9% 4.1% 3.1% 3.2% 2.9%
N176 N47 N107 N161 N220
11.7% Commission on Insurance and
20.2% 21.6% 20.4%
23.4% 7.5% western union transfers
5.1% Other income (a)
5.7% 6.6%
4.8%
Letters of credit commissions
Financial

63.4% 33.4%
Review

70.3% 73.6% 72.1% 71.8% 30.4% 22.9% 26.2% and fees
27.9%
Other fees and commissions (b)
7.0% 5.1% 3.8%
3.3% 3.8%
10.9% 10.6% 11.8% 16.4% Remittance fees /Management
11.2%
fees
23.8% Credit related fees
Management

19.1% 16.9% 17.5% 19.0%
27.2% 27.3% 26.7% 26.6% 24.3%
Risk

12.8% Commission on turnover (COT)
10.6% 9.4% 10.4% 9.2%

FY'10 Q1'11 H1'11 9m'11 FY'11 FY'10 Q1'11 H1'11 9m'10 FY'11

Asset yield and cost of liabilities Comments
Strategy

Interest income growth positively impacted by a higher interest rate
Net interest income N'bn Net interest margin*
environment leading to solid growth in income from treasury and
Average yield on interest earning assets Average cost of deposits investment securities as well as growth in income from loans and
9.6% advances
8.8% 9.0% 8.9%
8.6%
Non-interest income primarily driven by credit related
fees, commissions on transactions, rising fees from letters of credit
Summary

8.0% service fees, recoveries and continued benefits of improving service
7.4% 7.1% delivery.
6.9%
6.1% Margin expansion on the back of improving yield on interest earning
3.2% assets and stable cost of interest bearing liabilities

2.0% 2.0% Rebalancing of earning assets to optimise yields further
1.8% 1.6%
High interest rate environment slightly impacting cost of funds. Focus
122 38 88 129 183 remains on low cost liability generation

(a) Investment income and recoveries
FY'10 Q1'11 H1'11 9m'11 FY'11 (b) Exchange gains/ foreign exchange income, Gain on disposal of investment property, Financial advisory fees, Loss/(Profit)
on disposal of property and equipment

10

Underlying growth in operating income driven by stronger platform

Operating income and expenditure N bn Operating expense breakdown N bn
Overview

Staff cost Depreciation Admin and general expenses NDIC Premium
Operating income Operating expenses N147
7 4%
N119
7 6% N107
4 4% 73 49%
Financial
Review

51 43% 41 38%
N71
3 4%
7 9 6%
8 7% 26 37% 6%

N34 4 6%
1 4% 40%
56 52% 59
Management

52 44% 17 48%
2 6% 37 53%
178 119 54 34 121 71 180 107 259 147
Risk

14 41%

FY'10 Q1'11 H1'11 9m'11 FY'11 FY'10 Q1'11 H1'11 9m'11 FY'11

Operating income breakdown by SBU N bn (bank only) Comments
Strategy

Strong operating income growth, on the back of rising revenues and stable
Treasury (a) Private banking Corporate banking funding costs
Public sector Retail banking Institutional banking
N161 N49 N110 N164 N245 Operating expenses impacted by one-off increases in staff costs and the
7 13% recently introduced AMCON resolution cost charge; adjusting for this, on a
31 19% 20 18% 29 18% 39 16%
like for like basis, operating expenses came in significantly below inflation at
8.0%
Summary

21 42% Admin and general expenses largely impacted by AMCON resolution cost
47 42% 76 46% 109 45% charge as well a branch and ATM expansion
77 48%

Expanded footprint with 21 new business locations, 111 additional ATMs
5 11% and 2,411 Point of Sales (POS) terminals, bringing total business
12 11% 30 12%
12% 13% 21 13% locations, ATMs and POS terminals to 738, 1,649 and 5,122 respectively
19 6
0.3 1% 14 13% 31 13% as at March 2012
12% 1% 20 13%
30 0.7 2 1%
1% 10 20% 1 1% YTD increase in the number of customer accounts by 300,000 to over 8
1 16 15% 10% 33 13%
13 8% 17
million, grown the number of cards issued by 900,000 to 5.2 million, with the
card activity rate also improving to 80% from 76% as at Dec 2011
FY'10 Q1'11 H1'11 9m'11 FY'11
(a) Treasury is not a strategic business unit but contributes to the operating income

11

Focused on sustaining efficiency improvements

Provision for credit losses (N bn) Cost to income ratio
Overview

Loan loss provision Provisions for other losses
N44.8 67%

11.9 64%
Financial
Review

N23.5 60%
N21.6 59%
4.9
57%
N14.4 32.9
0.6
22.4
18.7
Management

N3.8 13.7
Risk

4.0
(0.8) (0.2)
FY'10 Q1'11 H1'11 9m'11 FY'11 FY'10 Q1'11 H1'11 9m'11 FY'11

Movement in loan loss provision* (N bn) Comments
Strategy

Total provision for losses of N44.8 billion made up of N32.9 billion credit
losses, N8.3 billion diminution in value of equity and fixed income
x General provision securities and N3.7 billion other losses.
Provisions for credit losses relate to delinquencies that occurred in the
44.1 course of the financial year and our prudent approach on the loan portfolio
in line with our risk management practices
Summary

N97.4
(88.3) Visible progress from our transformation agenda; 89% ATM migration
11.4
rate, up from 50% in Dec 2010; 300% growth in e-product signup in
branded branches; 15% reduction in our cost to serve as we grow
volumes faster than operating expense; over N1 billion in annual savings
N35.2 expected from our centralised processing center and branch process
68.0 engineering
12.4
Steps to reducing our costs include centralised processing of our back-
22.8 office branch processes, reducing turnaround time and driving increased
volumes
1-Jan-11 Additional provision Amounts written off 30-Dec-11
*includes interest in suspense and provision against leases

12

Improved performance in line with growth in profitability

Profit (N bn) FY 2011 PBT split by business lines
Overview

PBT PAT
48%
Retail & Corporate Banking
54% 102.8% (Dec 10: 80.4%) (a)

Investment & Capital
Markets 5.0% (Dec 10: 8.0%)
Financial
Review

(b)
Asset Management -8.8%
(Dec 10: 8.6%) (c)
N50.1 bn
Mortgage Banking 2.3% (Dec
10: 0.2%) (d)
Management

Other -1.3% (Dec 10: 2.9%)
Risk

(e)

FY'10 Q1'11 H1'11 9m'11 FY'11

Comments
Strategy

Full year growth in profit before tax driven by:
solid income growth
reduction in run rates in operating expenses, and
migrating customers to alternative channels
Summary

Full year profits impacted by an exceptional charge of N15.5 billion.
Haircut due to sale of eligible bank assets to AMCON worth
N176.3 billion, with a net value of N148.8 billion, in exchange
for bonds worth N189.4 billion with a discounted value of
N133.3billion

(a) First Bank of Nigeria & FBN UK (b) FBN Capital & First Registrars (c) First Trustees (d) FBN Mortgages
(e) FBN Life Assurance, FBN Insurance Brokers, First Pension Custodians, FBN Microfinance Bank & First Funds

13

Improving shareholder returns in line with operational progress

Return on average equity Return on average assets
Overview

Shareholders' funds N'bn After-tax ROAE (a)
Total assets N'bn After-tax ROAA
19.8%
18.1% 2.4%
15.46% 2.2%
2.1%
13.0%
10.3% 1.8%
Financial

1.5%
Review
Management

341 341 321 322 365
2,305 2,496 2,913 2,861 2,839
Risk

FY'10 Q1'11 H1'11 9m'11 FY'11
(a)Interim numbers do not include unappropriated profit during the year but the full year numbers reflect FY'10 Q1'11 H1'11 9m'11 FY'11
capitalised profits for the year

Dividend
Strategy

EPS (N) DPS (N) Dividend yield(b)
3.32
11%
10%
9%
Summary

1.97
1.84

5% 1.35 1.40
1.2 4%
1 1 4%

0.51 0.95
0.8
0.17 1% 0.6
0.1

Mar-06 Mar-07 Mar-08 Mar-09 Dec-09 Dec-10 Dec-11(c)
(b) Share price as at 31st December (c)Proposed dividend

14

Sustained growth and improvement in balance sheet efficiency on the back
of low cost funding
Balance sheet structure as at Dec 2011 (N bn) Funding mix (N bn)
Overview

N2,839 N2,839 Deposits Equity Due to other banks Other borrowing Other liabilities
Other Assets 6% [5%] 164 211 Other Liabilities 7% [5%]
Ppty & Equipment 2% [2%] 57 93 N2,305 N2,496 N2,913 N2,861 N2,839
182 9% 8% 9%
Investments 21% [15%] 587 11% 10%
5% 5% 4% 4% 3%
10% 11% 5% 6%
6%
11% 13%
Financial

15% 14% 11%
Review

Net Loans & Advances 44% 1,240
[49%]
1,948 Deposits 69% [63%]

66% 70% 69%
63% 63%
Treasury Bills 7% [1%] 187
Management
Risk

Inter Bank & Cash 21% 40 Short Term Liabilities 1% [4%]
604
[27%] 365
Capital & Reserves 13% [15%]
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
[]December 2010 Assets Liabilities

Deposits (N bn) Deposits mix by type (N bn)
Strategy

Bank Subsidiaries Bank growth rate Group growth rate Current accounts Savings accounts Term deposits Domiciliary accounts

N2,011 N1,450 N1,582 N1,920 N2,011 N1,948
N1,920 N1,948
225 164 177 12% 191 12%
315 16% 386 19% 418 21%
254
N1,582
276 19% 284 18%
N1,451
Summary

195 21% 342 17%
352 17% 288 15%
120
20%
9% 388 27% 432 27% 476 25%
7% 486 24% 496 25%

5% 0%
-3% 4%
-3% 609 675
-6% 42% 43% 804 42% 786 39% 747 38%

1,331 1,388 1,666 1,786 1,784

Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11

15

Large portion of the deposit liabilities are core thus providing stable
funding for the business
Deposits by SBU N bn (bank only) Comments
Overview

Retail banking Private banking Corporate banking Full year deposit growth driven by current and savings accounts in
Public sector Treasury (a) Institutional banking both local and foreign currency
N1,321 N1,388 N1,684 N1,786 N1,784
Approximately 62% of total deposits are core1
174 13% 186 13% 18% 253 14% 233 13%
298
34 3% 13 1% 28 2% 19 1% Our products are geared towards driving growth in low cost deposits
28 2%
313 23%
Financial

308 23% 29%
Review

498 28% 520
426 25%
101 7%
95 7%
19 1% 7%
23 2% 113 7% 125 7% 119
19 1% 20 1% 15 1%

697 52% 755 54%
Management

800 48% 860 48% 885 50%
Risk

(a) Treasury is not a strategic business unit but contributes to deposits

Balance sheet efficiency
Strategy

Leverage ratio (times) Gross loans to deposit ratio

83.8% 85.4%
Summary

67.0% 66.7% 65.5%

6.8 7.3 9.1 8.9 7.8

Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 1Deposits with the Bank for more than 2 years

16

Capital and liquidity levels provide solid foundation for asset growth

Earning assets mix (N bn) Evolution of capital and liquidity ratios
Overview

Loans and advances Treasury bills Due from other banks
Total RWA (N'bn) Tier 1 capital ratio
Reserve deposits with CBN Investments (a) Managed funds
N2,196 N2,446 N2,853 N2,569 Total capital adequacy ratio Liquidity ratio (Group)
N2,796
2% 1% 1% 1% 0%
Liquidity ratio (Bank) 68.2%
16% 21% 19% 19% 23%
1% 64.9%
0% 3% 4% 4%
Financial
Review

25% 21%
30% 22% 16%
1% 1% 7% 61.0%
5%
2%
50.4% 50.1%
55.4%
55% 55% 50%
48%
Management

45%
42.1%
Risk

(a) securities, subsidiaries/associates, property 38.3% 39.3%

Components of capital (N bn)
32.1%
Strategy

Tier 1 Capital Tier 2 Capital

46 20.2% 20.4%
19.3%
45 50 17.3% 17.5%
49 44
17.8% 18.1%
16.8%
14.9% 15.4%
Summary

332 335 315 315 358 1,870 1,856 1,956 2,049 1,980

Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 FY'10 Q1'11 H1'11 9m'11 FY'11

17

Review of first quarter 2012
IFRS compliant results

Q1 2012: Continued positive momentum to deliver strong results - IFRS
Overview

42.5% growth in gross earnings to N92.3 billion (Q1 2011: N64.8 billion)
Earnings
50.2% growth in operating income to N74.2 billion (Q1 2011: N49.4 billion)
Non-interest income contribution of 21% (Q1 2011: 25%)
Financial
Review

101.6% growth in profit before tax to N28.9bn (Q1 2011: N14.3bn)
Cost to income ratio: 60.9% (Q1 2011: 70.3%)

Profitability After tax ROE1: 27.0% (Q1 2011: 12.0%)
After tax ROA1: 3.3% (Q1 2011: 1.9%)
Management

EPS1: N3.01 (Q1 2011: N1.49)
Risk

Net interest margin1: 9.5% (Q1 2011: 6.7%)

Capital adequacy ratio: 19.9%
Strategy

Tier 1 capital ratio: 16.3%
Stronger & more
liquid balance sheet Gross loan to deposit ratio: 64.3% (Q1 2011: 81.0%)
Liquidity ratio: 54.7% (Q1 2011: 57.9%)
NPL ratio: 2.7% (Q1 2011: 7.6%)
Summary

Deposits up 31.1% yoy to N2.1tn (Q1 2011: N1.6tn)
Net loans and advances to customers up 4.0% yoy to N1.3tn (Q1 2011: N1.3tn)
Business volumes No of business locations: 738; ATMs: 1,649
Number of staff: Group 8,838; Bank 8,132
Number of customer accounts: 8.0mn
Number of cards: 5.2mn (Q1 2011: 2.3mn); 80% card activity rate (Q1 2011: 60%)

1Annualised

19

Evolution of Q1 2012 group profit after tax (N bn)
Overview

73.1 19.1
[16.4]
[48.4]
Financial
Review

[(9.4)]
(12.7)
[(4.6)]
(5.4)
Management
Risk
Strategy

[(34.7)] [(0.4)] 28.9
(45.2) (0.2) [14.3]
[(2.1)] 24.5
4.3 [12.2]
Summary

Interest income Interest expense Impairment charge for credit Non-interest income Operating expenses Share of associates results Profit before taxation Tax (b) Profit after tax
losses

20

Strong earnings growth on the back of growing business volumes,
increasing segment specialisation, customer acquisition, innovative
product development, rising yields and margin expansion

Gross earnings N bn Interest income mix (N bn)
Overview

Interest Income Non Interest Income Placements Treasury bills & investment securities Loans and advances
N92 N92
42% N92

19 21%
Financial

N65
Review

34 71% 50 68%

16 25%
Management

9 19%
21 28%
Risk

48 75% 73 79%
10%
5 2 3%

Q1'11 Q1'12 Q1'11 Q1'12

Asset yield and cost of liabilities Operating income (N bn)
Strategy

Net interest income N'bn Net interest margin*
50%
Yield on interest earning assets* Cost of deposits*
10.7% 74

8.3%
9.5%
Summary

49

6.7%

2.0% 2.1%

39 60

*Annualised
Q1'11 Q1'12 Q1'11 Q1'12

21

Increased traction in our transformation agenda is driving improvements in
our overall efficiency

Operating expense N bn Impairment charge for credit losses N bn
Overview

Staff cost Depreciation Admin and general expenses NDIC Premium

N45
2 6%

N35
Financial

6%
Review

1 19 43%

17 43% 5.4
2 7%

2 7%
22 44%
Management

4.6
14 44%
Risk

Q1'11 Q1'12 Q1'11 Q1'12

Cost to income ratio Profit N bn
Strategy

PBT PAT ROE ROA

27.0%

70.3%
29
Summary

25

12.0%

14
12
60.9%
3.3%
1.9%

Q1'11 Q1'12 Q1'11 Q1'12

22

Stable funding base

Balance sheet structure as at Mar 2012 (N bn) Funding mix (N bn)
Overview

N2,978 N2,550
Other Assets 7% [4%] Other Liabilities 7% [7%]
Ppty & Equipment 2% [2%] 185 210 Deposit from customers Equity Deposit from banks
61 73 Other Borrowings 2% [5%]
233 Due to Other Banks 8% [9%] Other borrowing Other liabilities
Investments 22% [22%]
662 N2,550 N2,998
8% 9%
5% 2%
9% 8%
Financial
Review

12%
Net Loans & Advances 44% 16%
[50%] 1,328 2,066 Deposits 69% [62%]

69%
62%
Management

Inter Bank & Cash 25% 743 32 Short Term Liabilities 1% [1%]
Risk

[22%] Capital & Reserves 12% [16%]
364

[] March 2011 Mar-11 Mar-12
Assets Liabilities

Deposit mix (N bn) Liquidity
Strategy

Current accounts Savings accounts Term deposits Domiciliary accounts Liquidity ratio Gross loan to deposits
N1,576 N2,066
81.0%
191 12%
418 20%
284 18% 64.3%
Summary

357 17%

432 27% 57.9%
514 54.7%
25%

668
42% 777 38%

Mar-11 Mar-12 Mar-11 Mar-12

23

Improving earning asset mix

Earning asset mix (N bn) Loans and advances (N bn)
Overview

N2,350 N2,692
1% 0% Bank Subsidiaries
N1,328
22% 25% Managed funds N1,276
174
164
0%
5%
Investments (a)
22%
21%
Financial
Review

Reserve deposits with CBN

Loans and advances to banks 1,112 1,153

54% 49%
Loans and advances to
Management

customers
Risk

Mar-11 Mar-12 Mar-11 Mar-12

Asset quality
Strategy

NPL coverage NPL ratio Cost of risk (annualised)

7.60%
117.10%
Summary

55.80%
2.70%

1.40% 1.60%

Mar-11 Mar-12

24

Key adjustments of IFRS numbers to NGAAP

NGAAP IFRS Difference
Major reconciliatory items N'million N'million N'million Explanation
Overview

Adjustments for Interest In Suspense (written back),
Credit related fees (Now treated as EIR) and Interest
Interest income 64,754 73,148 (8,394) subsidy on staff loans (now grossed up)

Adjustment for Credit related fees now part of EIR (contra
Financial

Fees and commissions 18,815 15,573 3,242 in Interest Income)
Review

Incremental impairment charge under the IFRS model,
taking cognisance of Expected Discounted Cash Flow
Loan impairment provision 5,559 5,419 140 from Impaired assets, mainly from Collateral values

MTM losses passed as an adjustment to equity under IAS
Management

Mark to market adjustment on AFS 4,309 - 4,309 39 as required by the FRC
Risk

Subsidy on staff loans included, as well as depreciation
on stock of fixed assets available for use but not yet
Operating expenses 44,760 45,151 (391) deployed

9,210
Strategy

Interest Payable on Deposits now added to the deposit
Deposits 2,064,518 2,065,505 (987) balance

Interest Receivable on loans not yet applied now added
Summary

Loans and advances 1,323,320 1,527,534 (204,214) to Loans and Advances

25

First Bank of Nigeria Full Year December 2011 & First Quarter 2012 Results Presentation to Analysts and Investors

First Bank of Nigeria Full Year December 2011 & First Quarter 2012 Results Presentation to Analysts and Investors

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