First Bank of Nigeria Results PresentationFor the nine months ended September 2010

First Bank of Nigeria Results PresentationFor the nine months ended September 2010

www.firstbanknigeria.com/investorrelations

2

This presentation is based on the financial results of FirstBank’s unaudited results for the period ended September30, 2010, consistent with Nigerian GAAP. First Bank of Nigeria Plc (‘‘FirstBank’’ or the ‘‘Bank’’) has obtained some information fromsources it believes to be credible. Although FirstBank has taken all reasonable care to ensure that all information herein is accurateand correct, FirstBank makes no representation or warranty, express or implied, as to the accuracy, correctness or completeness ofthe information. In addition, some of the information in this presentation may be condensed or incomplete, and this presentation maynot contain all material information in respect of FirstBank.

This presentation contains forward-looking statements which reflect management's expectations regarding the group’s futuregrowth, 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 usedto identify the forward-looking statements. These statements reflect management's current beliefs and are based on informationcurrently available to the Bank's management. Certain material factors or assumptions have been applied in drawing the conclusionscontained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surroundingfuture expectations generally.

FirstBank cautions readers that a number of factors could cause actual results, performance or achievements to differ materially fromthe results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue relianceshould not be placed on the forward-looking statements. For additional information with respect to certain of these risks orfactors, reference should be made to the Bank's continuous disclosure materials filed from time to time with the Nigerian bankingregulatory authorities. The Bank disclaims any intention or obligation to update or revise any forward-looking statements, whether as aresult 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

Cautionary Note

3

OutlineOutline

Key Observations in Q3 101

Financial Review 2

Summary & Outlook3

4

Headlines for Q3 10 - Road MapHeadlines for Q3 10 - Road Map

Highlights

StrategicDelivery

MacroConsiderations

Stable Core

Earnings

Improving Profitability & Margins

Strong & Liquid Balance Sheet

Improving Funding Mix

Growth Service Excellence TalentPerformance

Management

HealthyEconomic

Activity

Volatility In Yields &

Interest Rates

Pricing Pressure on Asset book

Slightly Weaker Naira

5

HighlightsKey performance indicators reflecting

a satisfactory result in challenging conditions

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• QoQ and YoY growth in deposit of 8.82% and 29.38%

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

HighlightsHighlights

6

MacroConsiderations

Economic output healthy, but risk

aversion still very prevalent

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

2010. • Q3 GDP growth of 7.72% was driven mainly by the non-oil sector but supported by

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

Macro ConsiderationsMacro Considerations

7

-50-40-30-20-10

010203040

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10

10Y FGN Bond Yields NIBORInflation NSE YTD (%)

Macro ConsiderationsMacro Considerations

120135150165180195210225240255270

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10GBP Euro USD

N

Naira against major currencies

19,000

21,000

23,000

25,000

27,000

29,000

31,000

33,000

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10

NSE All Share IndexBond yields, NIBOR and NSE return against inflation

%

8

Strategic Delivery

Key objective: Be the clear leader and Nigeria’s bank of First choice

Strategic focus on being “The leader, The Best”

Strategic DeliveryStrategic Delivery

Growth

Performance Management

Deliver unmatched results by creating a performance culture with clear individual

accountability at all levels

ServiceExcellence

Growth

TalentManagement

Attain full benefits of scale and scope by accelerating growth and diversification of

assets, revenue and profits

Drive unparallel service levels by developing world class institutional processes, systems &

capabilities

Become a hub for the best industry talent; cultivate a highly-motivated, capable, and

entrepreneurial workforce

9

Strategic Delivery - GrowthStrategic Delivery - GrowthO

verv

iew

of G

row

th S

trat

egy

Build scale internationally..

•Significant SSA expansion and growth in banking with selective international forays in non-bank financial services• Focus on driving economies of scale and scope across international network and portfolio of businesses

Diversify group and transform

bank...

• Drive bank transformation to completion• Build scale in investment banking and insurance and leverage group synergies• Commence SSA regional expansion in earnest

Consolidate in Nigeria...

• Drive organic and inorganic expansion• Continue aggressive bank transformation • Structure for growth in investment banking and insurance• Rep office expansion

LONG TERM

2013 - 2014

SHORT TERM

2010

• Group Governance: We are optimising our group structure for taxefficiency, legal/regulatory compliance and to ensure our structure supportsour aspirations.

• Investment Banking & Asset Mgt: On going realignment of FBNCapital, First Funds, FBN Securities and First Trustees to drive increasedsynergies

• FBN Life Assurance Ltd : Our JV with Sanlam commenced operations inSeptember, offering group life products, with a view to expanding theproduct offerings in the fourth quarter. A Chief Operating Officer from SouthAfrica has also been recruited.

• Holding Company Structure remains our preference in complying with theCBN guidelines. Critical considerations still being resolved, however, borderon tax efficiency

• Commencement of new operating model within the bank alonginstitutional, corporate, retail and public customer segments expected todrive deeper product penetration and sector expertise; relationshipmanagement based on deep understanding of customer needs; continuedfocus on innovative ways to service the retail market with technology andsimple easy-to-use products

• International Expansion: Our representative offices in South Africa andChina have continued to generate new business opportunities/referrals. Wewill continue to expand in identified markets through a combination ofacquisitions and greenfield strategies driven by consideration ofmacroeconomics, size, potential growth rate of banking industry and marketconduciveness amongst other strategic factors

• Brand Transformation: Continued modernisation of the image andperception of the FirstBank brand

Restructuring for Growth

MEDIUM TERM

2011 - 2012

10

Strategic Delivery – GrowthProposed Holding Company StructureStrategic Delivery – GrowthProposed Holding Company Structure

BUSINESSGROUPS

FBN HOLDING PLC

CORPORATE CENTRE

SHARED SERVICES

REP OFFICE SA

FIRST BANK OF NIGERIA

INVESTMENT BANKING & ASSET

MANAGEMENTINSURANCE EMERGING

VENTURES

FBN REAL ESTATE

FBN MICROFINANCE

FIRST TRUSTEES

FIRST FUNDS

FBN LIFE INSURANCE

FBN INSURANCE BROKERS

REP OFFICE CHINA

FBN BDC

FBN BANK (UK)

FBN SECURITIES

FBN CAPITAL FBN MORTGAGES

FIRST REGISTRARS

11

Strategic Delivery – GrowthNew Bank Operating ModelStrategic Delivery – GrowthNew Bank Operating Model

FirstBank

Institutional Banking

Public Sector Public Sector North

Public Sector Public Sector South Risk Finance OperationsRetail

Banking

Human Capital Mgt

Internal audit*

Company Secretary

Strategy &

Development

Strategy & Corporate Development

Corporate

nications

Corporate Commu-nications

Corporate

formation

Corporate Trans-formation

Corporate Banking

1 3 4 52

*Reports to Board of Directors via Board Audit and Risk Assessment Committee

Legal

Individuals

Massmarket

Affluent

Businesses

Enterprise

Corpo-rate

Public sector

Federal Gov’t

State Gov’t

Local Gov’t

Insti-tutional

HNI

Bank Customer Segments

1

2

3

4 5

New Bank Structure

12

Strategic Delivery – Service ExcellenceStrategic Delivery – Service Excellence

Channel Optimization & Migration

Issue Resolution/Customer Experience

Manning/Front-Line Transformation

Branch Transformation

Centralized Processing & Branch Process

reengineering

Transforming Service Delivery

• Optimize costs and increase customer satisfaction by ensuring alternative channels work, and migrating customers to appropriate channel (based on segment needs and requirements)

How can we drive customer ‘self-service’?

• Implement a framework that enables collection, resolution, and future prevention of various customer issues

• Set expectations on customer experience at each touch point, and monitor compliance

How can we identify every customer issue and prevent it from ever happening again?

• Optimize branch operations by centralizing non-customer facing/transactional processes, and redesigning/automating remaining processes within the branch

• Improve standardization of service, and processing speed

How can we minimize transaction time and create more time for sales/customer interaction?

• Transform the branch experience by ensuring all elements are in line with our service delivery aspirations (people, processes, layout, ambience, etc)

How can we maximize each customer visit to the branch for sales?

• Optimize our manning structure , empower staff and align our front-line staff with our service delivery mandate

How do we optimize our manning levels and ensure our service objectives are translated through our frontline staff?

We highlighted five key initiatives to transform our service delivery based on customer feedback and our competitive environment

13

• Account Opening Fulfilment• Account maintenance• Retail loan processing• Retail loan maintenance• Corporate Loan setup• COT ammendments• Fixed deposit processing• Salary processing

• Account creation/data entry

• “Welcome Pack” creation (cheque book, alternate channels set-up, ATM card, etc)

• Cheque confirmation• Salary processing• Intersol Cheque Book/Savings

Withdrawal booklet request• Form redesign

• Confirmation process• Collection, verification and

upload

• ATM • Internet Banking• Contact Centre

• Balance enquiries• Cash Withdrawals below

threshold• Funds transfer• Cheque book requests• Cheque confirmation

Improve standardization and leverage economies of scale for ‘non-customer’ facing activities

Improve turnaround time; increase efficiencies, and reduce error rates

Example Activities

De-congest the branch; drive self-service to improve customer satisfaction and optimise costs

Channel Migration

Objective Sample Processes

Automation/Simplification

Centralisation

Strategic Delivery – Service ExcellenceCPC/Branch Process Re-engineering: We are taking an end-to-end approach in redesigning branch processes

Strategic Delivery – Service ExcellenceCPC/Branch Process Re-engineering: We are taking an end-to-end approach in redesigning branch processes

14

Strategic Delivery – Service ExcellenceBranch Transformation: We are developing a ‘prototype’ branch to reflect our end-to end service delivery aspirations

Strategic Delivery – Service ExcellenceBranch Transformation: We are developing a ‘prototype’ branch to reflect our end-to end service delivery aspirations

– Raise awareness and consideration of bank offerings– Leverage redesigned processes & channel migration strategy to

meet/exceed service expectations and create cost-efficiencies– Attract sales-related visits using façade– Improve perception - leave a lasting impression

• Pilot approach to test the concept and assess impact on

• Selected POC branches

Objectives

Processes

Physical branch format (e.g. layout, communications media andaesthetics/design)

Staff factors (e.g. reporting lines, skills, competencies and mindsets/ culture)

Marketing Tactics (targeted product placements; tools to drive customer engagement, etc)

Trackingand analysis of

performance against objectives to enable effective management

15

“Soft” Issues (Engagement)

• “Role-Fit”

• Knowledge Gap

• Work Overload

• Career Progression

Strategic Delivery – Service ExcellenceManning/Front-Line Transformation: Implementation of the new operations structure providing a platform to address both hard and soft issues

Strategic Delivery – Service ExcellenceManning/Front-Line Transformation: Implementation of the new operations structure providing a platform to address both hard and soft issues

“Hard” Issues (Structural)

• Job grade alignment

• Manning levels• Transaction Volumes (Branch categorization)• Transaction Types• Leave days

• Simplified Structure & synchronized with CPC/branch process re-engineering

• Service Bottlenecks (review of ‘limits’ for all Unit Heads)

• Improved Core/Non-Core staff mix

16

Strategic Delivery – Service ExcellenceChannel Optimization & Migration: Improving ATM uptime is top priority; driving online banking and contact centre awareness/usage also key

Strategic Delivery – Service ExcellenceChannel Optimization & Migration: Improving ATM uptime is top priority; driving online banking and contact centre awareness/usage also key

ATM Optimization

Internet Banking

Contact Centre

Quick Fixes• Weekly ATM optimization report, “Name N Shame”• Verve card supplyStructural• 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

• 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) • Expand services – Outbound (surveys, welcome calls, targeted

marketing, collections, etc)

Current Initiatives

17

Quick-Wins

Expense Control

Projects• Increased utilization of voice-over-IP (VOIP)

telephone usage in branches• Deletion of “Hold” Statements• Email statement drive• Elimination of “Double Ply” flow line purchase• Diesel/Early Closure

• Centralised Admin• Fuel card implementation (H/O; Lagos, Abuja, PH)• Review of Hotel Accommodation Policy• Travel Policy amendments

CostsManning Structure

Depreciation/Maintenance

• Execution ongoing through implementation of new operations structure

• H/O Centralized Fleet Management

Initiatives*• Execute quick-win cost optimisation initiatives- waste

items with little to no impact on strategy/employee morale; sustainable long-term; can be done in a relatively quick time frame

• Review current expense control policies and procedures, and identify opportunities for improvement, especially for controllable costs

• Assess current manning levels and manning approach (with an initial focus on branch operations), and identify ways to improve our operating efficiency and provide more satisfying jobs for our staff

• Review ‘big-ticket’ maintenance items and identify areas where we can eliminate and/or optimise our maintenance spend

• Evaluate alternative business models for our existing operations (e.g. outsourcing, in-sourcing, leasing, etc)

Description

~ 400 million naira+ estimated annual impact at steady state

* Initiatives in italics have not yet been included in the annual savings estimate

Strategic Delivery – Service ExcellenceCost Optimisation: We have made some progress against the key areas identified, but more work remains…

Strategic Delivery – Service ExcellenceCost Optimisation: We have made some progress against the key areas identified, but more work remains…

18

Strategic Delivery – Performance Management / TalentStrategic Delivery – Performance Management / Talent

Perf

orm

ance

Man

agem

ent /

Tal

ent

• Staff rejuvenation/corporate workforce renewal

• 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

19

OutlineOutline

Key Observations in Q3 10 1

Financial Review 2

Summary & Outlook3

20

136.3

40.7

32.6

46.7

40.8

5.7

83.9

8.1

Interest Income Interest Expense Non-Interest Income Provisions Operating Expenses Profit Before Taxation Tax Profit After Tax

Evolution of nine months to September 2010 group profit after taxEvolution of nine months to September 2010 group profit after tax

N’ bn

21

9%19% 20% 17% 15% 14%1%

1%11%

0% 0% 0%

73%66%

54% 78%73% 70%

17% 14% 14%5%

12% 16%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Placements Treasury Bills Loans and Advances Others**

Top line performance remains resilient in the face of challenging operating conditionsTop line performance remains resilient in the face of challenging operating conditions

Gross Earnings N’bn Interest Income

CommentsNon-Interest Income

50

103

162

50

94

136 11

22

34

12

28

41

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Interest Income Non Interest Income

24% 24% 18%8% 14% 14%

28% 29%33%

37% 30% 29%

12% 10% 12%

8% 7% 8%

9% 8% 5%

10% 9% 9%

27% 29% 31%38% 40% 40%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Other fees and commissions*

Remittance fees /Management fees

Exchange gain/FX Income

Commission on turnover

Other income

*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

• Year-on-year decline in gross earnings due to low interest rate regime, liquidity glut and slow capital market recovery

• Slower pace of economic recovery impacting transaction volumes• Improving contribution to top line by non-interest income• Migration to a much more customer focused operating model

expected to drive earnings growth via increased share of clients’ wallet

• Expect Q4 rise in yields to enhance interest income• Phased approach to increasing proportion of transactions with

shorter tenors and higher yields expected to benefit growth in non-interest income

61

125

196

62

122

177

22

Our spreads have improved, benefitting from historically low funding costs, and contributing to margin expansionOur spreads have improved, benefitting from historically low funding costs, and contributing to margin expansion

Yield

10.6%11.2%

11.8%

9.4%

8.2%7.6%

7.4% 7.2% 7.2%6.5%

4.1%

2.7%

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 Margin

28

60

96

28

57

90

6.0%

6.7%7.2%

5.2%5.5%

5.8%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Net Interest Income (N'bn) Net Interest Margin

23

59% 61% 60%65% 63%

65%

64%

126%

83%

62% 64%

80%

8%

14%

-17%

13%

-2%

10%

12%

-10%

9%

2%

Q1'09 Q2'09 Q3'09 Q1'10 Q2'10 Q3'10

Pre-provisioning cost to income* Post-provisioning cost to income*

Operating Income Growth Operating expenses Growth

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Staff Cost Depreciation Admin and General Expenses NDIC Premium

55.1

38.0

6.7

23.7

1-Jan-10 Additional Provision

Amounts w/off 30-Sep-10

We expect that our sustained investments in automation and staff rejuvenation will drive improvements in productivity in coming periodsWe expect that our sustained investments in automation and staff rejuvenation will drive improvements in productivity in coming periods

Operating Expense Breakdown (N’bn)

Movement In Provision For Credit Related Losses (N’bn)

Provision for Credit and Other Losses (N’bn)

*cost to income ratio – operating expenses/operating income

Cost Efficiency

47%

7%41%5%

48%

7%

40%

5%

59%

7%

30%

4%

46%

7%39%

7%

50%

7%

37%

7%

49%

7%

38%

6%

23

49

78

26

55

84

1.8

29.5

40.5

2.7 3.8 6.7

0.1

0.0

0.1

(4.2) (4.7)(1.0)

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Loan Loss Provision Other Provisions

1.9

29.5

40.6

(1)5.7

(1.5)

24

Retail & Corporate Banking 72.5%

Investment & Capital Markets 10.5%

Asset Management 14.7%

Mortgage Banking 0.0%

Other* 2.2%

Steady improvement in profitabilitySteady improvement in profitability

Profit Before Tax (N’bn)

H1 2010 PBT Split

9 months 2010 PBT Split

* Insurance, Pension Custodians, Bureau de Change & First Funds

Retail & Corporate Banking 90.3%

Investment & Capital Markets 7.3%

Asset Management 0.3%

Mortgage Banking -0.3%

Other* 2.1%

14

3

12

15

32

41

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

ROE, ROAA & EPS

N40.7bn

N31.7bn

1.37 0.15 0.32 1.70 1.75 1.33

9.8%

1.2%3.0%

15.9%

16.4%14.1%

1.7%

0.2%0.4%

2.2%2.2% 1.9%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

EPS (Kobo) ROAE ROAA

25

36.8% 37.4% 35.6% 37.2% 36.6% 36.1%

24.8% 25.3%20.8%

25.4% 24.1% 23.4%

14.1% 13.7% 25.2% 13.9% 14.1% 14.0%

15.5% 15.0% 9.1% 15.0% 16.0% 16.3%

8.8% 8.5% 9.2% 8.5% 9.2% 10.2%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Over 12 months

6-12 months

3-6 months

1-3 months

0 - 30 days

309 83

1,550

227 73

182

Liabilities

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

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)

577

25

1,148

490

55129

Assets

Inter Bank & Cash 24%

Treasury Bills 1%

Net Loans & Advances 47%

Investments 21%

Managed Funds 2% Other Assets 5%

Capital & Reserves 13%

Short Term Liabilities 3%

Deposits 64%

Other Borrowings 3% Other Liabilities 17%

1,150 1,198 1,339 1,407 1,427

1,550

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Deposits (N’bn)

Deposit Mix

39% 38% 40% 39% 38% 41%

21% 22% 20% 28% 29% 28%

31% 31% 31% 25% 19% 16%

10% 9% 9% 9% 14% 15%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Current deposits Savings deposits Term deposits Domiciliary deposit

Deposit by Maturity (bank only)

2,424 2,42415.8%

8.6%Due to Other Banks 9%

26

340

307 303 303 303 304

45

29 32

69

31 32

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Tier 1 Capital Tier 2 Capital

XXXXXXXXX

XXX

XXXxx

1,403 1,411 1,633 1,694 1,733 1,857

22.8%20.5%

17.5%16.2% 16.3% 15.4%

25.9%

22.4%19.4% 19.9%

18.0% 17.0%

75.6%78.7%

62.0%

67.0%

63.5%64.8%

46.2%

36.7%

33.2%

42.9%40.4% 41.3%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

total RWA (N'bn) Tier 1 capital adequacy ratio %total capital adequacy ratio % Liquidity Ratio (Group)Liquidity Ratio (Bank)

Our capital and regulatory ratios are significantly in excess of regulatory requirements, and adequate to support our businessOur capital and regulatory ratios are significantly in excess of regulatory requirements, and adequate to support our business

N’ bn

385

336 335

373

335 336

27

Net Loans & Advances** (N’bn)

Business Lines (Bank Only)

We are gradually improving the mix of our interest earning assets in favourof higher yielding assets, whilst maintaining a diversified loan bookWe are gradually improving the mix of our interest earning assets in favourof higher yielding assets, whilst maintaining a diversified loan book

913 868

1,089 1,074 1,094 1,148

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Interest Earning AssetsN1,917 bn N2,302 bn

45.3% 49.9%

1.2%1.1%

32.7% 22.2%

0.3%0.3%

15.5% 21.3%

2.4% 2.4%2.6% 2.9%

Sep-09 Sep-10

Cash and balances with Central Bank Managed funds

Investment

Investment property

Due from other banks

Treasury bills

Loans and advances to customers

Agriculture 0.8% (0.8%)

Oil & Gas 24.1% (23.2%)

Manufacturing 8.5% (7.3%)

Construction 0.6% (0.6%)

Real Estate 9.8% (10.6%)

General Commerce 6.9% (4.6%)

Education* 0.5% (0.5%)

Transport 0.1% (0.1%)

Information & Commerce* 5.7% (6.4%)

Finance & Insurance 20.1% (21.4%)

General 14.6% (14.5%)

Public Sector 0.6% (6.1%)

Power & Energy* 0.1%

(0.1%)

Capital Market*

2.6% (2.9%)

Professional* 0.6% (0.5%)

Admin & Support Services* 0.3%

(0.3%)

Human Health* 0.1% (0.1%)

Gross Loans and Advances (sector exposure) (Bank Only)

( ) June 2010 * New sectors introduced by the CBN **includes advances under finance lease

5.4%4.9%

N1,088bn

34%45.5%

1%

0.8%32%

16.7%

11%9.6%

8%4.6%

6%

3.1%

8%19.6%

Sep-09 Sep-10

Money market line

Financial instituitions & treasury

Public sector

Consumer

Retail

Agric/Misc

Corporate

28

62.7% 68.0%74.7% 75.2% 77.5% 76.3%

14.3%12.5%

9.9% 6.8% 6.5% 8.5%21.2% 17.5% 14.0% 16.6% 14.4% 13.9%1.7% 2.0% 1.4% 1.5% 1.5% 1.4%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Others

Overdrafts

Commercial Papers

Term Loans

By Type (bank only)

Ultimately, our key focus is on improving the quality and efficiency of our balance sheetUltimately, our key focus is on improving the quality and efficiency of our balance sheet

85.1%88.0% 89.3%

2.5%

1.6%2.2%

12.4%10.4%

8.5%

Q1'10 H1'10 9 Mths'10

61 - 90 Days

31 - 60 Days

0 - 30 Days

Ageing Analysis of Performing Loan Book (bank only)

N974 bn N960 bn N1,039 bn

Balance Sheet Efficiency

5.76.5 7.0 7.4 7.3 7.8

79.4%

72.5%

81.3%

76.3% 76.7%

74.1%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Leverage Ratio (Times) Loan to Deposit Ratio

Comment

• Steady growth in loan book, driven by the corporate, retail and consumer

segments

• Reduced rate of new NPL formation due to remedial management and

enhanced monitoring by relationship mangers

• Continually reviewing portfolio in line with prudential guidelines, whilst

seeking to optimise volume growth

• Phased approach to skewing loan book to shorter tenored, higher yielding

transactions

• Focus on increasing share of wallet of current clientele

29

27.0%33.8%

17.1% 21.0% 26.9%17.4%

29.7% 13.0%34.8% 20.8%

35.9%

30.4%

32.2% 46.0% 39.7%44.8%

22.8%

35.6%

11.1% 7.2% 8.4% 13.4% 14.4% 16.7%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Interest in suspense

above 360 days (Lost)

180 - 359 days (Doubtful)

90 - 179 days (Substandard)

We have continued to focus on our non-performing loan portfolio, in order to drive sustained recoveriesWe have continued to focus on our non-performing loan portfolio, in order to drive sustained recoveries

NPL Ageing Analysis (bank only)NPL & Coverage Ratios

Agriculture 1.8% (0.9%) Manufacturing 0.5%

(4.7%)

Oil & Gas 13.6% (13.6%)

Construction 1.2% (1.1%)

General Commerce 6.4% (5.4%)

Transportation 0.3% (0.2%)

Information & Communication

0.3% (0.2%)Finance & Insurance 15.9% (17.0%)

Real Estate 35.1% (35.6%)

Power & Utility 0.2% (2.2%)

Government 0.2% (0.3%)

General 24.6% (18.8%)

NPL Sector Exposure Sept 2010 (bank only) NPL By Business Lines (bank only)

25.9%

42.1%34.4% 32.8%

46.8%39.8%

17.5%

16.9% 30.2% 27.7%

23.1%28.1%16.3%

11.4%

16.7%15.9%

11.9% 14.4%

0.0%

0.0%

0.1%0.3%

0.3% 0.2%38.9%

29.0%18.6% 23.1% 17.0% 15.9%

1.3% 0.6% 0.0% 0.3% 0.9% 1.7%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

Agric/Miscellaneous

Financial instituitions and treasury

Public sector

Consumer

Retail

Corporate

44 74

94 91 65 70

61.4%

72.3%67.1%

77.2%70.1% 71.5%

4.7% 8.1% 8.2% 7.9% 5.7% 5.8%

Q1'09 H1'09 9 Mths'09 Q1'10 H1'10 9 Mths'10

NPL NPL Coverage NPL %

N64.4bn

30

Facilities Against Shares – portfolio characteristics (Bank Only)Facilities Against Shares – portfolio characteristics (Bank Only)

Jun - 10Mar – 10

Non-Performing FAS1 Loans N30.1bn N23.1bn

Collateral value of non-performing margin loans N4.9bn N8.84bn

Provisions held against FAS1 N23.5b N19.2bn

N48.7bn

FAS/Total Loans and advances 4.6%

% of FAS exposure renegotiated/restructured* 5.9%

1.2% 1.3%Percentage of margin loans to total LAD

N53.1bn

4.8%

2.8%

Portfolio Coverage of FAS1 104.8%92.7%

35.3%35.0%

Facility Against Shares (FAS)1 - gross

% FAS1 backed by shares in private placement

Margin Loan Exposure N13.9bnN11.8bn

N51.1bN49.2bCollateral value FAS1

Non-Performing FAS1 Loans (%) 56.7% 47.5%

Collateral value of total margin loans N6.9bn N8.9bn

FAS NPL Coverage 78.2% 82.8%

1

6

11

8

10

4

12

5

3

9

2

7

14

15

Sep - 10

N10.1bn

N462m

N5.84bn

N28.7bn

2.6%

18%

0.5%

100.8%

50.9%

N5.9bn

N28.9bn

35.2%

N2.2bn

57.8%

1FAS – Includes margin loans and other loans secured by shares*Largely margin loan accounts Figures may not add up due to rounding

Non-performing margin loans N11.7bn N5.8bn13 N3.8bn

31

OutlineOutline

Key Observations in Q3 101

Financial Review 2

Summary & Outlook3

32

Summary and OutlookSummary and Outlook

• SSA underpinned by strong macroeconomic fundamentals and global economic recovery: GDP growth forecast of 5% in 2010 and 5.5% in 2011

• Nigeria is one of the fastest growing oil exporting economies in Africa with GDP growth forecast of 7.4% in 2010 and 2011 (South Africa 3-3.5% over the same periods).

• The Nigerian banking sector remains significantly underpenetrated,FirstBank has industry scale with 13% of total assets and 15% oftotal loans and is well positioned to grow its share of market

• We continue to progress towards its objective of being the ‘clear leader and Nigeria’s bank of first choice’ through the implementation of a focused transformation programme.

• In the near term, our objectives borders on growth and transformation of the Bank while creating growth options for the group

• Our medium term strategy is to defend our leadership position, whilst extending it across key dimensions (i.e. customers, brand, service etc) to achieve superior/sustainable financial results

• Nigerian imperativesFully optimise and expand our diversified financial services

– Improve product and sector expertise with deep understanding of customer needs

– Improve existing client business volume and increase clients

– Deploy balance sheet towards higher yielding assets– Optimisation of liquid assets– Brand transformation

• International imperatives:Increase the Group’s profile across Sub Saharan Africa via international expansion. Benefits include:

– Greater earnings diversification– Increased shareholder value through higher ROE– Enhance ability to effectively serve an increasingly

international profile of corporate customers.

Above all, we believe that by focusing on our outlined strategies and coming from a position of strength, we are well poised in delivering exceptional returns while consolidating, diversifying and transforming the business and building scale internationally

Consolidate in Nigeria…

Diversify group and transform bank…

Build scale internationally…

• Drive organic and inorganic expansion

• Continue aggressive bank transformation

• Structure for growth in inv. banking and insurance

• Rep office expansion; initial SSA explorations

• Drive bank transformation to completion

• Build scale in inv. banking and insurance and leverage group synergies

• Commence SSA regional expansion in earnest

• Significant SSA expansion and growth in banking with selective international forays in non-bank financial services

• Focus on driving economies of scale and scope across international network and portfolio of businesses

2010 2011 - 2012 2013 - 2014