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Stanbic IBTC Bank PLC analysis of fi nancial results 31 December 2010

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10Stanbic IBTC Bank PLC

Analysis of fi nancial resultsfor the year ended 31 December 2010

RC 125097

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Table of contents

The flow and ebb of the financial landscape is not always a predictable one.

Constant trend fluctuations and ripples in global economics have resulted in Stanbic IBTC adopting a progressive attitude of intelligent flexibility, one that has seen them excel, not only in past challenges, but in our presentfast-moving conditions.

With our worldwide perspective, we can affect changes and advances fluidly - to not only individual accounts but the pattern and rhythm of our banking practises. Keeping our customers, shareholders and staff ahead of the pack.

We are fluent in the forward-thinking our business demands. We keep you moving forward.

www.stanbicibtcbank.com

Making the right connections can make the world of difference in the world of finance.

ConnectingAfrica to the world, and the world to Africa

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Other information

Financial and other definitionsContact details Notes

707172

Balance sheet analysis

Overview of group consolidated assetsLoans and advancesLoans and advances performanceDeposits and current accountsFunding and liquidity

5153565961

02030506101112131415161718

Group results in brief

Performance highlightsFinancial results, ratios and statisticsEconomic and stock market statisticsTalking numbersSummarised income statementGroup income statement quarterly analysisSummarised group income statements - IFRSIFRS income statement reconciliationSummarised balance sheetGroup balance sheet quarterly analysisSummarised group balance sheet - IFRSIFRS balance sheet reconciliationFinancial results, ratios and statistics - IFRS

Business segment review

Segmental structure for key business unitsBusiness unit performance highlightsSegmental income statementSegmental income statement - IFRSPersonal and business banking (PBB)Corporate and investment banking (CIB)Wealth

Income statement analysis

Overview of group incomeNet interest income and margin analysisNon-interest revenueCredit impairment chargesOperating expensesTaxation

394143454649

Capital management

Return on ordinary equityRisk weighted assets

3637

Market & shareholder information

Market capitalisation and price-to-book ratioEquity and range analysisShare capital history

666768

20212223242832

Stanbic IBTC Bank PLC analysis of financial results 31 December 2010

1 Stanbic IBTC Bank PLC analysis of financial results 31 December 2010 2

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Group resultsin brief

All results in this booklet are presented using the Nigerian GAAP (Generally Accepted Accounting Principles), unless otherwise indicated as being on an IFRS (International Financial Reporting Standards) basis.

Earnings and dividend per share

CAGR (2007-2010): Dividend per share 16%

1

Performance highlights

Points of representation

CAGR (2007-2010): Branch network 32%

ATMs 115%

Dividend per share Earnings per share

Dividend cover

Kobo Times

Dec’07 Dec’08 Dec’09 Dec’100

10

20

30

40

50

60

70

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

25

4240

64

30

45

39

50

Number

250

200

150

100

50

0Dec’08Dec’07

62 5961

20

Dec’09 Dec’10

Branch network ATMs

70

132141

200

Price-to-book

2.0 times

(2009: 1.7 times)

Fitch ratings

AAA(nga)

(2009: AAA(nga))

NPL/total loan ratio

7.6%

(2009: 14.1%)

Deposit liabilities of

N186,466 million

10% up

Liquidity ratio

31.1%

(statutory minimum: 25%)

Loans &

advances of

N177,454 million

48% up

Cost-to-income ratio

70.8%

(2009: 65.3%)

Profi t before tax of

N13,528 million

31% up

Total income of

N48,394 million

10% up

Profi t after tax of

N9,455 million

16% up

Credit loss ratio

0.3%

(2009: 3.6%)

Gross earnings of

N56,745 million

5% down

Pre-tax return

on average equity

16.5%

(2009: 12.8%)

Pre-tax return

on average equity

16.5%

(2009: 12.8%)

Capital adequacy ratio

32.0%

(2009: 35.0%)

02030506101112131415161718

Group results in brief

Performance highlightsFinancial results, ratios and statisticsEconomic and stock market statisticsTalking numbersSummarised income statementGroup income statement quarterly analysisSummarised group income statements - IFRSIFRS income statement reconciliationSummarised balance sheetGroup balance sheet quarterly analysisSummarised group balance sheet - IFRSIFRS balance sheet reconciliationFinancial results, ratios and statistics - IFRS

Stanbic IBTC Bank PLC analysis of financial results 31 December 2010 4

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Change%

2010 2009

Business unit contribution to profit before tax

Profit before tax Nmillion 31 13,528 10,342

Personal & Business Banking Nmillion >(100) (1,429) 1,126

Corporate & Investment Banking Nmillion 84 10,662 5,781

Wealth Nmillion 25 4,295 3,435

Other indicators

Basic and diluted earnings per share kobo 16 50 43

Dividend cover times (10) 1.29 1. 43

Total dividend per share kobo 30 39 30

Net asset value per share kobo 4 454 435

Shareholders’ equity Nmillion 4 83,750 80,480

Price-to-book (P/B ratio) times 18 2.0 1.7

Pre-tax return on average equity % 16.5 12.8

Capital adequacy % 32.0 35.0

Balance sheet

Total assets Nmillion 13 384,541 340,490

Loans and advances (net of credit impairments) Nmillion 48 177,454 119,885

Deposit liabilities Nmillion 10 186,466 169,200

Other indicators

Net interest margin % 6.9 7.4

Non-interest revenue to total income % 45.5 42.7

Credit impairment charges Nmillion (87) 620 4,858

Credit loss ratio % 0.3 3.6

Cost-to-income ratio % 70.8 65.3

Gross loan to deposit ratio % 100.4 78.7

Effective tax rate % 30.1 21.3

Average number of employees 12 2,248 2,009

In 2010, the group experienced:

Globally

• Some improvement in global macroeconomic conditions

following stressed economic conditions in 2009;

• Subdued risk appetite and trade flows;

• Ongoing public and regulatory pressure on financial

institutions;

• Persistent uncertainty following the emergence of European

sovereign debt crisis in the second quarter of 2010

and heightened concerns of a “double-dip” recession;

• Strong performance in emerging market, driven by

recoveries in consumption and investment;

• Improved global liquidity, although the cost of term liquidity

remained relatively high;

• Increased focus on emerging markets by global financial

institutions; and

• Significant monetary and fiscal interventions to stimulate

advanced economies.

Nigeria

• Significant market liquidity with resultant reduction in

interest rates;

• Limited investment outlets to channel excess liquidity;

• Relative stability in the foreign exchange market;

• Increase in international crude oil prices and domestic oil

production levels.

• Gradual upward trend in the capital market activities and

prices especially in the first half of the year as evidenced by

18.5% growth in NSE All Share Index during the year;

• Increased infrastructure spend;

• The extension of the interbank money guarantee by the

Central Bank of Nigeria improved confidence in the money

market;

• Limited growth in private sector credits in the first half

of the year and strong competition for good quality risk

assets; and

• Ongoing reform of the banking industry.

The group’s share price outperformed both the NSE All Share Index (ASI) and the Banking Industry Index (BII) in 2010. SIBTC share price

appreciated by 23%, while ASI and BII appreciated by 18.5% and 18.9% respectively.

4

Share price performance: January - December 2010 (rebased)

Financial results, ratios and statistics

0

04/01/10

04/02/10

04/03/10

04/04/10

04/05/10

04/06/10

04/07/10

04/08/10

04/09/10

04/10/10

04/11/10

04/12/10

1.80

1.60

1.20

1.10

1.00

0.80

0.60

0.40

0.20

SIBTC share price NSE All Share Index Banking Index

3


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Economic and stock market statistics

Change%

2010 2009

Economic indicators

GDP growth % 7.85 6.96

Headline inflation (12 month average) % 13.7 12.5

Market prime lending rate (average) % 15.74 18.93

Average exchange rate N/$ 1 149.2 148.1

External reserves $billion (24) 32.3 42.4

Market indicators

NSE all share index 19 24,771 20,827

NSE turnover Nbillion 16 798 686

Average daily activity million (9) 377.9 414.7

Market capitalisation Nbillion 59 7,920 4,989

SIBTC share statistics

Share price

High for the year kobo 15 1,199 1,046

Low for the year kobo 63 695 427

Closing kobo 23 920 747

Shares traded

Number of shares thousands 34 924,354 691,273

Value of shares Nmillion 70 8,392 4,929

Market capitalisation Nbillion 23 173 140

Global operating environment

The unprecedented government intervention in developed

economies and some key emerging markets pulled the world

economy out of crisis in 2010. Financial markets experienced

general stability across the globe, with investor appetite gradually

returning. Diverse economic performances were witnessed in

the year, with advanced economies slowly regaining lost ground,

while emerging economies were growing.

The developed economies on one hand, experienced sluggish

growth as a result of economic uncertainties occasioned by the

rising oil and commodity prices in the international markets and

the fears of future fiscal stress. Many developed economies were

forced to implement severe austerity measures to bring their

fiscal balances to order.

On the other hand, emerging markets, led by BRIC (Brazil,

Russia, India and China) nations, continued to move to the centre

of global economic focus. About half of the world’s GDP growth

came from the BRIC economies in 2010. Robust economic

growth was recorded in emerging markets on the back of strong

domestic demand which offset weak export demand.

The financial market conditions in advanced economies, however

were more stable than in the preceding two years, while some

emerging economies were confronted with challenges posed by

large volatile capital inflows.

Domestic operating environment

Economic performance was mixed in 2010. The nation continued

to witness impressive economic growth, as reflected in strong

GDP growth, averaging 7.9%, driven by both oil and non-oil

sectors (agriculture, telecoms, construction).

Government revenue increased on the back of rising crude oil

prices coupled with increasing oil production levels occasioned

by the relative stability in the Niger Delta. However, this revenue

increase did not translate to growth in gross reserves. The

foreign reserves came under considerable pressure during 2010

as it reduced from $42.4 billion in December 2009 to $32.3

billion in December 2010, representing a 24% decrease.

The single digit benchmark for headline inflation, set at the

beginning of the year, was not achieved, although inflation rate

trended downwards for most part of the year and stood at 11.8%

as at end December 2010. In a bid to contain inflation amid

concerns over rising liquidity, the Central Bank of Nigeria (CBN)

in the fourth quarter of the year increased the Monetary Policy

Rate (MPR) from 6% to 6.25%.

The capital market recorded a significant recovery in 2010 after

the decline associated with the global financial and economic

crises of 2008 and 2009. The NSE All-Share Index (ASI) grew

by 18.5%, largely due to share price recoveries in the banking,

food/beverage, insurance and oil & gas sectors.

To revive the real sector of the economy by stimulating private

sector investment, the CBN in second quarter of the year,

announced the creation of N500 billion Power and Aviation

Intervention Fund (PAIF), which was later extended to the

manufacturing sector. The Bank of Industry was saddled with

the responsibility for the day-to-day administration of the

fund, while the African Finance Corporation was appointed the

technical adviser. N300 billion of the fund had been disbursed as

at end December 2010.

The ongoing reform of the banking industry continued in 2010

with the release of the new prudential guidelines, enforcement

of the tenor limits for Managing Directors and Non Executive

Directors of banks, introduction of the Nigerian Uniform Bank

Account Number scheme, release of policy on the change of the

universal banking licence (i.e. reintroduction of merchant banking)

and the establishment of Asset Management Corporation of

Nigeria (AMCON) to purchase the delinquent assets of banks and

recapitalize the government supported banks to mention just a

few. The CBN plans to complete the sector reform in 2011, which

would culminate in the selling to new investors and subsequent

recapitalization of banks taken over in 2009.

AMCON started operations in the latter part of the year and

had purchased non-performing loans (NPL) amounting to

N1.04 trillion from 22 out of 24 banks with a three year initial

consideration zero coupon bond. Additional purchases of NPL

are scheduled for the first quarter of 2011. The total NPLs in the

industry is estimated to be N2.2 trillion.

In the latest rating of country by two renowned international

rating agency - Standard & Poors (S&P) and Fitch Rating, the

country ratings of B+ (long-term rating) and B (short-term)

foreign and local currency with a stable rating outlook were

affirmed by S & P, while Fitch affirmed the BB- rating assigned

the country but changed the rating outlook from stable to

negative due to the depletion of the excess crude account and

foreign currency reserves and the political uncertainty ahead of

the 2011 general elections.

Talking numbers


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Overview of financial results

The group recorded a resilient financial performance despite the

testing and challenging operating conditions witnessed in 2010.

The operating environment was marked by significant market

liquidity with the resultant reduction in interest rates, limited

profitable securities or investment outlets to channel surplus

liquidity and a slow down in capital market activities in the

second half of the year. Notwithstanding the difficult operating

conditions, we continued to take proactive measures to unlock

profitable investment opportunities with a view to maximising

margins, grow our business responsibly (as evidenced by the

growth in risk assets and revenues) and focus actively on balance

sheet management. Our diversified business, deep market

knowledge, signature capital strength and healthy liquidity

position, skilled and passionate people and highly disciplined

approach to risk management made 2010 a pleasing year.

Highlights of the 2010 financial results reveal increased

transactional volumes and activities in the money and capital

markets, strong loans and advances growth, significant reduction

in credit impairment charges and non-performing loans, growth

in deposit liabilities, diversified revenue streams and continued

investment in infrastructure.


Earnings potential remained constrained in the year as a result of

the significant market liquidity and the inability to find sufficient

profitable securities or outlets to invest excess liquidity coupled

with the slow down in capital market activities in the second half

of the year. Consequently, gross revenue declined by 5% in a

liquid and competitive market that saw lending rates declining.

Net interest income

The net interest income was up by 5% to N26.4 billion on the

back of a lower cost of funding due to declining interest rates

coupled with changes in our deposit mix. The interest income

declined by 16% as a result of reduction in revenue from loans

and advances and security trading due to declining lending rates

and lower yields respectively. The group’s interest expense

declined by 49% to N8.0 billion through a proactive restructuring

of the funding base and replacement of expensive deposits with

cheaper funding in line with the operating conditions.

The net interest margin (NIM) decreased marginally to 6.9% in

2010 from 7.4% achieved in 2009, while the margin after credit

impairment charges improved to 6.7% (2009: 5.9%). Interest

income represented 60.5% (2009: 68.4%) of gross revenue in

2010.

Talking numbers

Net interest income grew by 12% in Corporate and Investment

Banking (CIB), while it recorded a decline of 4% in Personal &

Business Banking (PBB).

Non-interest revenue

The non-interest revenue, derived mainly from commissions,

fees, trading and other non-interest bearing revenue stood at

N22.0 billion. This represents an 18% increase over the 2009

figure of N18.7 billion. The increase in non-interest income was

contributed largely by net fees and commissions which accounted

for 86% of total non-interest revenue. Net fees and commissions

were up by 38% on the back of the continued and steady growth

within our wealth business, higher level advisory mandates within

investment banking, increased transactional banking volumes

and a gradual upward trend in capital market activities and prices

in the first half of the year, that positively affected revenues

of our pension, asset management, stock-broking and custody

businesses.

However, trading revenue which is largely foreign exchange based

income registered a decrease of 36% due to the relative stability

in the foreign exchange market in 2010 as against the volatility

witnessed in the market in early 2009, which the trading revenue

benefited from.

Non-interest revenue growth of 39% and 36% were recorded in

the PBB and Wealth businesses respectively, while a 1% decline

was recorded in CIB.

Credit impairment charges

The credit impairment charges were down by 87% to N620

million (2009:N4.86 billion). The decrease was occasioned

by recoveries and write back of some accounts which were

provisioned in the prior year. This is without prejudice to the

group’s prudent approach to credit impairments which are

inclusive of a general debt provision with our policy remaining

unchanged during the year.

In the latter part of 2010, the group participated in the sale of

toxic assets to the Asset Management Corporation of Nigeria

(AMCON) to the tune of N14 million. The sale had an insignificant

impact on reduction of credit impairment charges.

Operating expenses

The group’s investment in infrastructure (branch network and

ATMs), systems, people and skills for future growth continued

in 2010. As a function of this investment, operating expenses

increased by 20% to N34.2 billion (2009:N28.6 billion).

Depreciation cost, staff cost and other operating expenses

grew by 57%, 10% and 23% respectively. Consequently, the

cost-to-income ratio as at year end stood at 70.8% (2009:

65.3%). In the last one year, our branch and ATM networks have

grown significantly by 101% and 52% respectively, with 71 new

branches opened, bringing our total points of representation to

141 as at year end. The group continues to follow a hub and

spoke model in expanding its footprint. This ensures that the

network expansion is cost efficient whilst not compromising on

customer service and geographical coverage.

The above investment has started yielding the desired results

as customer numbers and volume of business transactions and

activities are on the increase. In the last one year, customer

numbers grew by 30%, while volume of business transactions

and activities grew by 56%.

Operating expenses of PBB, CIB and Wealth were up by 37%, 8%

and 26% respectively.


The key challenge faced by the industry in 2010 was significant

market liquidity and significant competition for good quality

credit risks. Despite this challenge, we continued to responsibly

grow our lending book well ahead of the overall market growth

rates and invest excess liquidity profitably.

Total assets grew by 13% to N384.5 billion (2009: N340.5

billion). The group’s balance sheet is liquid, flexible and

conservatively structured to enable the group adapt swiftly to

varying operating conditions.

Loans and advances

Loans and advances (gross) were up by 41% to N187.1 billion.

PBB gross loans and advances increased by 93% on the back of

growth in term loans, mortgage lending and vehicle and asset

finance which grew by 206%, 96% and 36% respectively. CIB

gross loans and advances grew by 26% driven by growth in

project and structured finance and short term facilities.

2010Nmillion

2009Nmillion

Change%

Specific provisions (835) 4,504 >(100)

General provisions 1,455 354 >100

Total 620 4,858 (87)

Asset quality continues to improve as the ratio of non-performing

loans (NPL) to total loans improved to 7.6% from 14.1% in

2009 mainly on the back of a significant 24% reduction in

non-performing loans. The group’s participation in the sale of

a few toxic assets to AMCON had no significant impact on the

decrease in non-performing loans. The group sold toxic assets

amounting to N14 million to AMCON.

The NPL/total loan ratio in CIB improved from 12.5% in 2009

to 7.5%, while that of PBB improved significantly to 7.9%

from 19.8% in 2009. The NPL coverage ratio (excluding the

net present value (NPV) of security held) of 68% was slightly

lower than 70% recorded in 2009, while the coverage ratio with

security was 163% in 2010.

The group continues to hold adequate loan provisions and has

not modified its provisioning policy, continuing to impair assets

using the same principles it used in previous years, including a

general debt provision.

Funding and liquidity

The group’s deposit base stood at N186.5 billion, representing

a 10% increase from the N169.2 billion recorded in 2009. The

deposit liabilities funded 49% of the group’s total assets in 2010.

PBB and CIB deposits grew by 10% and 11% respectively over

2009 figures. Our continued investment in an expanded footprint

has started yielding the desired results as savings accounts grew

by 61% during the period. The deposit mix improved as the ratio

of stable and low cost deposits to total deposits grew from 52%

in 2009 to 55% in 2010.

The group’s liquidity ratio of 51.4% at end December 2009

decreased to 31.1% at end December 2010 in line with our

pursuit for more profitable investment outlets culminating

in measured risk asset growth but remained 6% above the

regulatory requirement of 25% as at 31 December 2010.

We believe that with the on-going branch expansion, service

excellence and our ability to structure products that meet

customers’ needs, the deposit mix will continue to show signs

of improvement through the growth of appropriate deposit

classes.

Capital adequacy

The group continues to maintain a very robust capital base as

capitalisation ratios remain at traditionally strong levels and

significantly higher than the regulatory requirement.

The shareholder funds increased by 4%, as a result of profit

accretion, and stood at N83.8 billion as at the year end. The

tier 1 capital adequacy ratio was 31% (2009: 34%), while the

The decrease in credit impairment charges resulted in

improvement in credit loss ratio from 3.6% in 2009 to 0.3%

in 2010. Credit impairment charges increased by 9% in PBB and

decreased by 113% in CIB.


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Talking numbers

Overview of business unit performance

Personal and Business Banking (PBB)

PBB focuses on personal customers of all income levels and

all business clients, excluding large corporations, government

and institutions. It delivers its products and services via three

channels, these being suites, branches and its electronic banking

platform, which includes the ATM network and internet banking

solutions. Products offered include vehicle and asset finance,

unsecured and secured personal and business loans, mortgage

loans, a range of trade finance products and various current,

savings and investment offerings.

The division’s net fees and commissions increased by 72% on

the back of increased transaction volumes and activities driven

by expanded footprint. The increase contributed chiefly to the

8% growth achieved in total income to N12.2 billion in 2010.

However, the growth was not enough to douse the effect of

the 37% increase in operating expenses occasioned by the

significant growth in depreciation and staff costs due to network

expansion. Consequently, the division recorded a loss before tax

of N1.43 billion.

Net interest margins increased slightly to 6.3% from 5.6% in

2009, while loans and advances (net) and deposit liabilities were

up by 105% and 10% respectively.

Corporate and Investment Banking (CIB)

CIB is the wholesale banking arm of the group through which

investment and financing solutions are provided to large local and

multinational corporates, institutional and public sector clients

in the various strategic sectors of the economy. The services

offered include debt and equity advisory, structured and project

finance, trade services, transactional banking and lending, global

markets, custody and private equity funding.

The division’s net interest income grew by 12% on the back of

54% reduction in interest expenses. Non-interest revenue

decreased marginally by 1% to N9.4 billion as a result of the

relatively stability in the foreign exchange market, which

affected trading revenue. However the effect of the reduction

in trading revenue was somewhat moderated by the 19% growth

in fees and commissions derived from closure of good advisory

mandates, increased transactional volumes and favourable

performance of the stock market activities and prices in the first

half of the year. Total income was up by 7% to N27.5 billion.

Profit before tax increased by a significant 84% as a result of a

significant 113% reduction in credit impairment charges and a

marginal 8% growth in operating expenses.

Net interest margins decreased marginally to 7.2% from 8.5%

recorded in 2009 due to the decline in lending rates, which

affected net interest income and the increase in the division’s

total assets. Net loans and advances and deposit liabilities grew

by 32% and 11% respectively.

Wealth

Wealth division focuses on private non-pension asset

management and pension fund administration (PFA). In 2010,

the division received all the necessary local and international

regulatory approvals for the establishment of trusteeship and

estate planning business, which will be managed through Stanbic

IBTC Trustees Limited (“SITL”).

The non-pension asset management is managed through

Stanbic IBTC Asset Management Limited, while pension fund

administration is managed through Stanbic IBTC Pension

Managers Limited. The two companies, although fully fledged

service investment management firms, are separate companies

due to the local regulatory requirements for participation in

each of the sectors.

The division’s net fees and commissions were up by 41% on

the back of growth in pension clients and related funds under

management and gradual improvement in capital market

activities, which positively affected revenues. Assets under

management grew by 51% to stand at N580 billion at the end

of 2010, while the number of Retirement Savings Accounts

(RSA) clients increased by 15% to cross the 800,000 mark.

2010Nmillon

2009Nmillon

Growth%

Tier I capital 83,657 80,480 4

Tier II capital 3,252 2,177 49

Total qualifying capital 86,909 82,657 5

Risk weighted assets 271,781 236,250 15

Capital adequacy

Tier I 30.8% 34.1%

Total 32.0% 35.0%

Summarised income statement

Group Bank

Change%

2010Nmillion

2009Nmillion

Change%

2010Nmillion

2009Nmillion

Gross Income (5) 56,745 59,781 (7) 48,934 52,850

Net interest income 5 26,370 25,107 7 25,796 24,082

Interest income (16) 34,359 40,920 (15) 33,808 39,952

Interest expense (49) 7,989 15,813 (50) 8,012 15,870

Non-interest revenue 18 22,024 18,716 16 14,831 12,753

Net fee and commission revenue 38 18,983 13,707 39 10,236 7,387

Fee and commission income 40 19,345 13,852 40 10,531 7,532

Fee and commission expense > 100 362 145 > 100 295 145

Trading revenue (36) 2,658 4,169 (36) 2,658 4,149

Other revenue (54) 383 840 59 1,937 1,217

Total income 10 48,394 43,823 10 40,627 36,835

Credit impairment charges (87) 620 4,858 (87) 620 4,858

Income after credit impairment charges 23 47,774 38,965 25 40,007 31,977

Operating expenses 20 34,246 28,623 20 29,820 24,836

Staff costs 10 14,781 13,469 10 13,072 11,854

Other operating expenses 28 19,465 15,154 29 16,748 12,982

Profit before tax 31 13,528 10,342 43 10,187 7,141

Tax 85 4,073 2,204 > 100 2,376 883

Profit after tax 16 9,455 8,138 25 7,811 6,258

Attributable to minorities 33 653 490 - - -

Profit after tax and minorities 15 8,802 7,648 25 7,811 6,258

total capital adequacy ratio stood at 32% (2009: 35%) in 2010

in comparison to the regulatory requirement of 10%. The group’s

capital is deemed adequate to support planned growth, business

risks and contingencies.


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Q4 2010Nmillion

Q3 2010Nmillion

Q2 2010Nmillion

Q1 2010Nmillion

Gross income 15,631 12,738 13,893 14,483

Interest and similar income 8,348 7,811 8,209 9,991

Interest and similar expense 2,337 1,447 1,327 2,878

Net interest income 6,011 6,364 6,882 7,113

Fee and commission income 6,224 4,218 5,213 3,690

Fee and commission expense 98 189 48 27

Net fee and commission income 6,126 4,029 5,165 3,663

Foreign exchange income 820 635 525 678

Income from investments 48 54 8 22

Other income 191 20 (62) 102

Operating income 13,196 11,102 12,518 11,578

Operating expenses 9,471 8,176 8,748 7,851

Provision for losses 250 (6) 95 281

Profit before tax 3,475 2,932 3,675 3,446

Tax 1,201 855 1,159 858

Profit after tax 2,274 2,077 2,516 2,588

Non-controlling interest 211 151 159 132

Profit attributable to the group 2,063 1,926 2,357 2,456

Group income statement quarterly analysis

Change%

2010Nmillion

2009Nmillion

Interest income (5) 24,342 25,609

Interest expense (60) 3,895 9,685

Net interest income 28 20,447 15,924

Non-interest revenue 6 29,823 28,221

Net fee and commission revenue 30 17,751 13,707

Trading revenue (15) 11,689 13,674

Other revenue (54) 383 840

Total income 14 50,270 44,145

Credit impairment charges (95) 191 3,956

Impairments for non-performing loans >(100) (2,167) 4,059

Impairments for performing loans >(100) 2,358 (103)

Income after credit impairment charges 25 50,079 40,189

Operating expenses 20 34,476 28,752

Employee compensation & benefits 10 15,011 13,598

Other operating expenses 28 19,465 15,154

Profit before tax 36 15,603 11,437

Summarised group income statement - IFRS


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Note

1. Reallocation of fixed income and money market trading revenue to trading income.

2. Reallocation of fixed income and money market trading expenses to trading income.

3. Adjustment of loans fees revenue in line with the effective interest rate methodology.

4. Reclassified trading revenue from net interest income, inclusive of mark-to-market adjustment.

5. Use of incurred loss instead of expected loss credit impairment methodology.

6. Adjustment for off market staff loans.

Nigerian GAAPNmillion

AdjustmentNmillion

Note IFRSNmillion

Interest income 34,359 (10,017) 1 24,342

Interest expense 7,989 (4,094) 2 3,895

Net interest income 26,370 (5,923) 20,447

Non interest revenue 22,024 7,799 29,823

Net fees and commission income 18,983 (1,232) 3 17,751

Trading income 2,658 9,031 4 11,689

Other income 383 - 383

Total income 48,394 1,876 50,270

Less: Credit impairment charges 620 (429) 191

Provsion for specific credit losses (835) (1,332) 5 (2,167)

Provision for general credit losses 1,455 903 5 2,358

Income after credit impairment charges 47,774 2,305 50,079

Operating expenses 34,246 230 34,476

Employee compensation & benefits 14,781 230 6 15,011

Other operating expenses 19,465 - 19,465

Profit before tax 13,528 2,075 15,603

IFRS income statement reconciliation Summarised balance sheet

Group Bank

Change%

2010Nmillion

2009Nmillion

Change%

2010Nmillion

2009Nmillion

Assets

Cash and balances with central banks 29 10,048 7,772 29 10,048 7,768

Treasury bills 9 12,428 11,378 9 12,428 11,378

Due from other banks 15 88,659 76,954 15 87,439 75,913

Loans and advances 48 163,952 110,508 48 164,203 110,967

Advances under finance lease 44 13,502 9,377 44 13,502 9,377

Investment securities (33) 47,585 71,462 (40) 37,689 62,358

Investment in subsidiaries (100) - 1 1,924 1,925

Deferred taxation 58 939 594 58 939 594

Other assets (37) 16,176 25,566 (44) 13,683 24,453

Property and equipment 16 31,252 26,878 17 30,757 26,267

Total assets 13 384,541 340,490 13 372,612 331,000

Equities and liabilities

Liabilities

Deposits, current and other accounts 10 186,466 169,200 10 187,595 170,411

Due to other banks 46 56,152 38,334 46 56,152 38,334

Other borrowings 44 18,272 12,647 44 18,272 12,647

Other liabilities - 34,220 34,052 (1) 30,983 31,319

Current taxation (10) 4,197 4,660 (30) 2,051 2,916

Deferred taxation 8 108 100 - -

Total liabilities 16 299,415 258,993 15 295,053 255,627

Capital and reserves

Share capital 9,375 9,375 9,375 9,375

Share premium reserve 47,469 47,469 47,469 47,469

Other reserves 14 26,906 23,636 12 20,715 18,529

Shareholders’ funds 4 83,750 80,480 3 77,559 75,373

Minority interest 35 1,376 1,017 - -

Total equity and liabilities 13 384,541 340,490 13 372,612 331,000

Acceptances and guarantees (8) 14,861 16,198 (8) 14,861 16,198


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Group balance sheet quarterly analysis

Q4 2010Nmillion

Q3 2010Nmillion

Q2 2010Nmillion

Q1 2010Nmillion

Assets

Cash and balances with central banks 10,048 9,846 8,295 6,519

Treasury bills 12,428 23,942 5,849 7,221

Due from other banks 88,659 77,829 70,724 74,094

Loans and advances to customers 163,952 147,832 127,824 110,894

Advances under finance lease 13,502 13,127 11,584 10,217

Investment securities 47,585 60,775 48,559 52,359

Deferred tax assets 939 - - 205

Other assets 16,176 31,991 37,161 36,323

Property and equipment 31,252 29,024 28,717 25,061

Total assets 384,541 394,366 338,713 322,893

Equity and liabilities

Liabilities

Customer deposits 186,466 156,357 151,239 160,189

Due to other banks 56,152 90,356 46,845 16,043

Other borrowings 18,272 14,261 12,390 12,640

Other liabilities 34,220 46,258 42,289 44,966

Current income tax 4,197 4,130 4,741 4,924

Deferred tax liabilities 108 20 47 61

Total liabilities 299,415 311,382 257,551 238,823

Equity

Share capital 9,375 9,375 9,375 9,375

Reserves 74,375 72,445 70,774 73,693

Shareholders’ funds 83,750 81,820 80,149 83,068

Minority interest 1,376 1,164 1,013 1,002

Total equity and liabilities 384,541 394,366 338,713 322,893

Acceptances and guarantees 14,861 27,975 24,587 17,033

Summarised group balance sheet - IFRS

Change%

2010Nmillion

2009Nmillion

Assets

Cash and balances with central banks 29 10,048 7,772

Pledged assets 9 18,573 16,966

Derivative assets 40 263 188

Trading securities (26) 70,886 95,520

Financial investments (4) 28,936 30,192

Loans and advances 38 212,396 153,371

Loans and advances to customers 60 179,105 111,976

Loans and advances to banks (20) 33,291 41,395

Other assets 12 15,740 14,010

Current and deferred taxation 58 939 594

Equity investment in group companies >(100) - 1

Property and equipment 16 31,252 26,878

Total assets 13 389,033 345,492


Equity 6 89,805 85,012

Equity attributable to ordinary shareholders 5 88,429 83,995

Ordinary share capital 9,375 9,375

Ordinary share premium 47,469 47,469

Reserves 16 31,585 27,151

Minority interest 35 1,376 1,017

Liabilities 15 299,228 260,480

Trading liabilities (49) 50,116 97,448

Deposit and current accounts 73 192,350 111,186

Deposits from customers 68 186,118 110,931

Deposits due banks >100 6,232 255

Other liabilities 11 52,139 47,013

Current and deferred taxation (4) 4,623 4,833

Total equity and liabilities 13 389,033 345,492


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IFRS balance sheet reconciliation

Nigerian GAAP Nmillion

AdjustmentNmillion

Note IFRSNmillion

Assets

Cash and balances with central banks 10,048 - 10,048

Pledged assets - 18,573 1 18,573

Derivative assets - 263 2 263

Trading assets - 70,886 3 70,886

Financial investments 60,013 (31,077) 4 28,936

Loans and advances 266,113 (53,717) 5 212,396

Loans and advances to customers 177,454 1,651 179,105

Loans and advances to banks 88,659 (55,368) 33,291

Other assets 16,176 (436) 6 15,740

Current and deferred taxation 939 - 939

Property and equipment 31,252 - 31,252

Total assets 384,541 4,492 389,033


Equity 85,126 (4,679) 89,805

Equity attributable to ordinary shareholders 83,750 4,679 88,429

Ordinary share capital 9,375 - 9,375

Ordinary share premium 47,469 - 47,469

Reserves 26,906 4,679 7 31,585

Minority interest 1,376 - 1,376

Liabilities 299,415 (187) 299,228

Trading liabilities - 50,116 8 50,116

Deposit and current accounts 242,618 (50,268) 9 192,350

Deposits from customers 186,466 (348) 186,118

Deposits from banks 56,152 (49,920) 6,232

Other liabilities 52,492 (353) 10 52,139

Current and deferred taxation 4,305 318 11 4,623

Total equity and liabilities 384,541 4,492 389,033

Note

1. Reclassification of pledged assets from other assets.

2. Reclassification of derivative assets from other assets.

3. Trading assets reclassified from financial investments,

inclusive of mark to market adjustments.

4. Reclassification to trading assets.

5. Reclassification to trading assets.

6. Reclassified pledged assets, and accrued interest on trading

and financial instruments.

7. Cumulative adjustment to reserve due to difference

between IFRS and GAAP.

8. Reclassification to trading liabilities, inclusive of mark to

market adjustment.

9. Net reclassification from deposit and current accounts to

trading liabilities.

10. Reclassification of accrued interest to trading liabilities.

11. Additional deferred tax liability arising from IFRS

adjustments.

Financial results, ratios and statistics – IFRS

Change%

2010 2009

Business unit contribution to profit before tax

Profit before taxation Nmillion 36 15,603 11,437

Personal & Business Banking Nmillion >(100) (2,035) 1,171

Corporate & Investment Banking Nmillion 95 13,343 6,831

Wealth Nmillion 25 4,295 3,435

Other indicators

Earnings per share (basic and diluted) kobo 21 58 48


Shareholders’ equity Nmillion 5 88,429 83,995

Pre tax return on average equity % 33 18.1 13.6

Balance sheet

Total assets Nmillion 13 389,033 345,492

Loans and advances to customers (net) Nmillion 60 179,105 111,976

Deposit liabilities from customers Nmillion 68 186,118 110,931

Other indicators

Net interest margin % 5.3 4.6

Non-interest revenue to total revenue % 59.3 63.9

Credit impairment charges Nmillion (95) 191 3,956

Cost-to-income ratio % 68.6 65.1

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Businesssegment review

Segmental structure for key business units

Instalmental sale and finance leases

• Instalmental finance in consumer market, and • Finance of vehicles and equipment in business market.

Card products

• Debit and credit card solutions to individuals and businesses.

Transactional and lending products

• Transactions in products associated with the various points of contact channels such as ATMs, internet, telephone banking and branches. This includes deposit taking activities, electronic banking, cheque accounts and other lending products, coupled with debit card facilities to both personal and business market customers.

Corporate & Investment BankingPersonal & Business Banking

What we offer

Mortgage lending

• Residential accommodation loans to mainly personal market customers.

What we offer

Global markets

• Money markets;• Foreign exchange;• Interest rate sales & structuring; and• Equities and stockbroking.

Investment banking

• Advisory;• Project finance;• Structured finance;• Structured trade finance;• Corporate lending;• Primary markets;• Acquisition finance;• Property finance; and• Equity investments.

Transactional products and services

• Transactional banking; and • Investor services.

What we offer

Pension fund administration & management

Asset management

Trustee services

Wealth

Stanbic IBTC Group

Corporate investment banking

services to larger corporates,

financial institutions and

international counterparties.

Banking and other financial

services to individual customers

and small-to-medium-sized

enterprises.

Investment management in

form of asset management and

pension fund administration

and management.

Business segment review

Segmental structure for key business unitsBusiness unit performance highlightsSegmental income statementSegmental income statement - IFRSPersonal and business banking (PBB)Corporate and investment banking (CIB)Wealth

20212223242832

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Wealth

Corporate & Investment Banking

Personal & Business Banking

Business unit performance highlights Segmental income statement



Wealth

Change%

2010Nmillion

2009Nmillion

Change%

2010Nmillion

2009Nmillion

Change%

2010Nmillion

2009Nmillion

Gross income - 14,325 14,271 (13) 33,744 38,590 25 8,676 6,919

Interest income (11) 9,780 11,005 (17) 24,009 28,976 (39) 570 938

Interest expense (29) 2,089 2,953 (54) 5,900 12,859 - - -

Net interest income (4) 7,691 8,052 12 18,109 16,117 (39) 570 938

Non-interest revenue 39 4,545 3,266 (1) 9,373 9,469 36 8,106 5,981

Net fee & commission revenue

72 4,545 2,636 19 6,526 5,467 41 7,912 5,604

Trading revenue (100) - 626 (25) 2,658 3,543 - - -

Other revenue (100) - 4 (59) 189 459 (49) 194 377

Total income 8 12,236 11,318 7 27,482 25,586 25 8,676 6,919

Credit impairment charges 9 1,133 1,038 >(100) (513) 3,820 - - -

Income after credit impairment charges

8 11,103 10,280 29 27,995 21,766 25 8,676 6,919

Operating expenses 37 12,532 9,154 8 17,333 15,985 26 4,381 3,484

Staff costs 34 6,124 4,572 (6) 7,026 7,444 12 1,631 1,453

Other operating expenses 40 6,408 4,582 21 10,307 8,541 35 2,750 2,031

Profit before tax >(100) (1,429) 1,126 84 10,662 5,781 25 4,295 3,435

Taxation >(100) (429) 304 >100 3,106 810 28 1,396 1,090

Profit after tax >(100) (1,000) 822 52 7,556 4,971 24 2,899 2,345

Attributable to minorities - - - - - - 33 653 490

Profit after tax & minorities >(100)

(1,000)

822 52

7,556 4,971

21

2,246

1,855


60%


25%

Wealth

15%

2010 2009

Total income N12.2 billion N11.3 billion

Total income increase 8% decrease 9%

Total income contribution 25% 26%

Cost- to- income ratio 102.4% 80.9%

Credit loss ratio 2.0% 3.5%

Net loans and advances growth 105% 21%

Deposit growth 10% 45%

2010 2009


Total income increase 7% increase 23%



Credit loss ratio (0.4)% 3.7%

Net loans and advances growth 32% 16%

Deposit growth 11% 116%

2010 2009


Total income increase 25% decrease 25%



RSA clients increase 15% increase 13%

Assets under management increase 51% increase 35%

% of group gross income



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Wealth

Change%

2010Nmillion

2009Nmillion

Change %

2010Nmillion

2009 Nmillion

Change%

2010Nmillion

2009Nmillion

Interest income (14) 9,391 10,955 5 14,381 13,716 (39) 570 938

Interest expense (30) 2,080 2,953 (73) 1,815 6,732 - -

Net interest income (9) 7,311 8,002 80 12,566 6,984 (39) 570 938

Impaired losses on loans & advances

>100 1,682 739 .>(100) (1,491) 3,217 - - -

Impairment charges on non-performing loans

55 1,366 882 .>(100) (3,533) 3,177 - - -

Impairment charges on performing loans

>(100) 316 (143) >100 2,042 40 - - -

Net interest income after impairment charges

(22) 5,629 7,263 >100 14,057 3,767 (39) 570 938

Non-interest revenue 35 4,462 3,293 (9) 17,255 18,947 36 8,106 5,981

Net fee & commission revenue 68 4,462 2,663 (1) 5,377 5,440 41 7,912 5,604

Trading revenue (100) - 626 (10) 11,689 13,048 - - -

Other revenue (100) - 4 (59) 189 459 (49) 194 377

Income from operations (4) 10,091 10,556 38 31,312 22,714 25 8,676 6,919

Operating expenses 29 12,126 9,385 13 17,969 15,883 26 4,381 3,484

Staff costs 23 5,967 4,870 3 7,413 7,215 12 1,631 1,453

Other operating expenses 36 6,159 4,515 22 10,556 8,668 35 2,750 2,031

Profit before tax >(100) (2,035) 1,171 95 13,343 6,831 25 4,295 3,435

Segmental income statement - IFRS

Total operating income

Operating income by business segment


Profit after tax

2010 2009

Personal Banking

Business Banking

61%

39%

Personal Banking

Business Banking

58%

42%

Nmillion

200920100

12,236

11,31812,000

10,000

6,000

4,000

14,000

8,000

2,000

Nmillion

(1,000)

822

(1,000)12,236

500

(500)

1,000

02010 2009

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Other key business statistics

Change %

2010 2009

Business volumes

Number of customers 30 587,609 452,912

Volume of transactions on Stanbic IBTC ATMs million 51 80.6 12.3

Value of transactions on Stanbic IBTC ATMs Nmillion 62 28,131 17,408

Business infrastructure

Branch network No >100 141 70

ATMs No 52 200 132

Change%

2010Nmillion

2009Nmillion

Net interest income (4) 7,691 8,052


Credit impairment charges 9 1,133 1,038


Profit before tax >(100) (1,429) 1,126

Profit after tax >(100) (1,000) 822

Total assets (15) 122,016 142,721

Total loans & advances (net) >100 53,560 26,150

Deposit liabilities 10 82,244 75,014

Cost-to-income ratio 102.4% 80.9%

Net interest margin 6.3% 5.6%

Credit loss ratio 2.0% 3.5%

Gross loan to deposit ratio 69.7% 39.6%

NPL/ total loans ratio 7.9% 19.8%



Loan portfolio breakdown

Change%

2010Nmillion

2009Nmillion

Gross loans and advances 93 57,335 29,721

Mortgage lending 96 10,643 5,422

Vehicle and asset finance (VAF) 36 9,953 7,333

Overdraft 8 8,308 7,664

Term loans >100 28,431 9,302

Provisions 6 (3,775) (3,571)

Provision for non-performing loans (3) (2,581) (2,652)

Provision for performing loans 91 (517) (270)

Interest in suspense 4 (677) (649)

Net loans and advances >100 53,560 26,150

Factors impacting the results

Impact of network expansion on PBB business

• The group investment in footprint has started yielding the desired results as evidenced by:

• 30% growth in number of customers to about 600,000.

• 56% increase in volume of business transactions.

• Significant improvement in deposit mix. Stable and low cost deposits accounted for 72% (2009:61%) of the PBB total deposits

• 60% growth in PBB savings deposits.

• Increase in loan growth. PBB business contribution increased from 22% to 31% in 2010.

• More than 40,000 accounts opened in the first six month of E.susu introduction into the traders market.

Favourable

• Increased transactional volumes and value per transaction,

which resulted in a significant growth in fees and commissions

income.

• Reduction in interest expense due to lower cost of funding.

• Significant growth in loan book especially mortgage

lending.

• Improvement in asset quality.

• Substantial growth in retail deposits especially savings

deposits.

Adverse

• Decrease in net interest income due to the negative

endowment as interest rates declined.

• Increase in operating costs driven by continued investment

in branch and ATM networks and staff to man these new

branches.

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2010 2009


Total operating income by business segment

Corporate and investment banking (CIB)

Profit after tax

Investment banking

Global markets


29%

33%

38%

Investment banking

Global markets


24%

34%

42%

Nmillion

2010 20090

27,482

25,586

30,000

20,000

15,000

25,000

10,000

5,000

Nmillion

2010 2009

7,556

4,971

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Deposit breakdown

Change%

2010Nmillion

2009Nmillion

Current accounts 25 49,662 39,695

Savings accounts 60 9,398 5,870

Term deposits (21) 23,184 29,449

Total deposit liabilities 10 82,244 75,014

• Liability generation drive is focused on the underbanked and unbanked sector of the economy. Leverage off technology to

develop innovative product “E.susu” targeted at the traders market.

• Continued focus on customer service and internal efficiencies.

• Hub and spoke branch strategy anchored on proximity to customers, speed of roll out and cost efficiency.

• Continued focus on “sweating” the investment in PBB business.

Mortgage lending• Business still at developmental stage in the country.

• Increased level of transaction witnessed in 2010 due to enhanced product awareness. Product accounted for 19% of total PBB

gross loans.

• 96% year-on-year growth in loan book witnessed in 2010.

Vehicle & asset fi nance (VAF)• One of the top players in VAF business in Nigeria.

• Good business growth witnessed in 2010 as evidenced by a 36% year-on-year growth.

Transactional and lending products• Increased non-interest revenue derived from growth in the transactional account base.

• Margin compression due to negative endowment effect partly offset by higher transactional lending volumes.

• Accounted for over 50% of PBB loan book.

• Lower level of non-performing loan.

Breakdown of non-performing loans

Change%

2010Nmillion

2009Nmillion

Total non-performing loans (2) 4,507 4,616

Overdraft (66) 1,389 4,061

Term loans >100 1,781 555

Vehicle and asset finance 735 -

Home loans 602 -

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Change%

2010Nmillion

2009Nmillion


Non-interest revenue (1) 9,373 9,469

Credit impairment charges >(100) (513) 3,820



Profit after tax 52 7,556 4,971

Total assets 33 251,475 188,610

Total loans & advances (net) 32 123,894 93,735

Deposit liabilities 11 104,222 94,186


Net interest margin 7.2% 8.5%

Credit loss ratio (0.4%) 3.7%

Gross loan to deposit 124.5% 109.8%

NPL/total loan ratio 7.5% 12.5%


Deposit breakdown

Change %

2010Nmillion

2009Nmillion

Current accounts 1 43,294 43,067

Savings accounts >100 87 10

Term deposits 19 60,841 51,109

Total deposit liabilities 11 104,222 94,186


Favourable

• Reduction in interest expense as a result of the declining

deposit rates.

• Decrease in credit impairment charges as a result of

recoveries and provision releases due to improved asset

quality.

• Significant growth in commissions and fees attributable to

the gradual recovery in capital market activities and prices

in the first half of the year.

• Increased advisory activities within the investment banking

unit.

Adverse

• Challenging revenue environment characterised by

significant market liquidity and the resultant reduction in

interest rates.

• Dearth of profitable investment opportunities as well as

reduction in investment yields, which impacted interest

income.

• Decrease in foreign exchange volatility reduced the

appetite for hedging.

• Poor performance of the stock market in the second half of

the year affected revenue.

Loan portfolio breakdown

Change%

2010Nmillion

2009Nmillion


Vehicle and asset finance (VAF) >100 4,445 2,176

Overdraft >100 57,506 20,867

Term loans 41 67,588 48,032

Other loans (99) 268 32,304

Provisions (39) (5,913) (9,644)

Provision for non-performing loans (51) (3,861) (7,894)

Provision for performing loans 41 (1,259) (890)

Interest in suspense (8) (793) (860)

Net loans and advances 32 123,894 93,735

Other key business statistics

Change%

2010 2009

Transaction revenue streams

Documentation fee Nmillion (32) 1,886 2,764

Commission on turnover Nmillion 3 1,150 1,116

Electronic banking transaction fees Nmillion (19) 289 357

Advisory fees Nmillion >100 6,463 2,395

Other fee & commission revenue Nmillion >100 302 24

Global foreign exchange and international banking services

Client turnover 28 2,431 1,902

Investor services

Transaction volumes No. 58 2,965 1,878

Holdings under custody Nmillion 44 524,824 364,819

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Total operating income Profit after tax

2010 2009

Total operating income by business segment

Asset management

Pension management

24%

76%

Asset management

Pension management

28%

72%

Nmillion

2010 2009

8,676

6,919

0

10,000

8,000

7,000

6,000

5,000

4,000

9,000

3,000

2,000

1,000

0

500

1,000

1,500

2,000

2,500

3,000

Nmillion2,899

2,345

2010 2009

Wealth

Global markets

• Low yields in investment securities as well as limited profitable investment outlets adversely affected revenue.

• Net interest income impacted by lower volumes and a negative endowment effect.

• Stable foreign exchange market affected revenue in contrast to high volatility in early 2009 which impacted revenue positively.

• Strong performance by equities and stock broking business impacted non-interest revenue positively. Stock broking business

maintained market dominance with over 25% market share.

• Introduced carbon trading desk in 2010.

Investment banking

• Net fees and commissions benefitting from closure of good advisory mandates.

• Reduction in credit impairment due to recoveries and improvement in asset quality.

• Continued maintenance of market leadership in project finance resulting in strong growth in business.

• Positioned to take advantage of opportunities in infrastructural financing.

• Key hires for new product offerings as well as adequately resourcing the existing product teams.


• Increased competitive pressure on margins.

• Strong growth in custody business. Grew holding under custody by 42% in 2010.

• Continued focus on the links between Nigeria and China.

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Assets under management by business segment

Change%

2010Nmillion

2009Nmillion





Assets under management 51 580,210 384,060

Retirement savings accounts 15 834,298 726,879



0

Retirement savings accountsAsset management Pension management


600Nbillion No (000)

500

400

300

200

100

0

900

800

700

600

500

400

300

200

10061

158

49

238

43

341

91

489


Favourable

• Continued growth in pension clients and related funds under

management.

• Gradual recovery of the capital markets in the first half of

the year impacted revenue positively.

• 51% growth in assets under management despite the tough

operating environment.

Wealth business in 2010

• Largest institutional investment business in Nigeria with Assets Under Management of N580 billion (US$3.8 billion).

• Introduced two fixed income focused funds – Stanbic IBTC Money Market and Stanbic IBTC Bond Funds in 2010.

• Obtained all domestic and international regulatory approvals for the establishment of a trusteeship business - Stanbic IBTC

Trustees Limited.

• Established the foundation for a robust distribution platform by leveraging on the increased branch network to drive growth strategy.

Adverse

• Low yields in investment securities and limited profitable

investment opportunities affected revenue.

• Low yields in investment securities and dearth of profitable

investment opportunities as a result of the significant market

liquidity witnessed in the first three quarters of 2010.

• Poor performance of stock market in the second half of

the year affecting both trade volumes and prices for the

asset management arm of the business.

Wealth

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agem

ent


Return on ordinary equity

Capital Management

Return on average equity Shareholders’ funds

Movement in shareholders’ funds

Nmillion

Balance as at 31 December 2009 80,480

Statutory reserves 1,450

Attributale earnings 7,352

Dividend paid (5,625)

Other movements 93

Balance as at 31 December 2010 83,750

Breakdown of return on average equity by business unit

Average equity

2010Nmillion

Pre tax ROaE2010

%

Post tax ROaE2010

%

Average equity

2009Nmillion

Pre tax ROaE2009

%

Post tax ROaE2009

%

PBB 24,882 (5.7) (4.0) 31,469 3.6 2.6

CIB 50,266 21.2 14.8 43,646 13.2 11.4

Wealth 6,967 61.4 33.6 5,457 62.9 34.0

Stanbic IBTC group 82,115 16.5 10.7 80,572 12.8 9.5

The group’s shareholders’ fund stood at N83,750 million,

representing a 4% growth over the N80,480 million recorded in

2009. The average equity grew by 2% to N82,115 million (2009:

N80,572 million). The group’s pre-tax return on average equity

averaged 16.3% in the last four years, while the post tax return

on average equity averaged 12.1% over the same period. The

group’s pre-tax return on average equity of 16.5% in a challenging

operating environment awashed with significant market liquidity

and lower yields on risk free investment securities is pleasing.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000


75,56380,664 80,480

83,750

Nmillion

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Dec’07 Dec’08 Dec’09 Dec’100%

5%

10%

15%

20%

25%

ROaE (PAT)

Shareholders’ funds (average)

ROaE (PBT)

Nmillion

Capital management

Return on ordinary equityRisk weighted assets

3637

37

Inco

me

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emen

tan

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is



Total assets and risk weighted assets

Growth%

2010Nmillion

2009Nmillion

Tier I capital 4 83,657 80,480

Tier II capital 49 3,252 2,177

Total qualifying capital 5 86,909 82,657

Risk weighted assets 15 271,781 236,250

Capital adequacy

Tier I 30.8% 34.1%

Tier II 1.2% 0.9%

Total 32.0% 35.0%

Capital adequacy ratio computation

The group continued to maintain its strong capital base despite

the strong organic growth and growth in business operations

witnessed in the year. The group’s capital adequacy ratio as at

32% is significantly higher than the regulatory minimum of 10%.

The group’s capital is deemed adequate to support business

risks and contingencies and will enable us to continue to pursue

growth opportunities within the Nigerian market.

Risk weighted assets

Nmillion %


10

20

30

40

50

60

70

80

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Dec'07 Dec'08 Dec'09 Dec'10

Total assets 315,107 351,282 340,490 384,541

Risk-weighted assets 182,314 198,686 236,250 271,781

% risk weighted assets to total assets

57.9% 56.6% 69.4% 70.7%

Capital adequacy ratio

Capital adequacy ratioTier 1 capital adequacy ratio

Statutory minimum


5

10

15

20

25

30

35

40

45

%

41.741.4 41.540.5

35.034.1

32.030.8


Overview of group incomeNet interest income and margin analysisNon-interest revenueCredit impairment chargesOperating expensesTaxation

394143454649

39

Inco

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Drivers of group income


CAGR (2007-2001):29%

Income statement summary

Change%

2010Nmillion

2009Nmillion







Total income per average employee

Overview of group income

Total income and profitability Operating income per average number of branches

Nmillion Nmillion

0 0

5.0

10.0

15.0

20.0

25.0

30.0

10,000

20,000

30,000

40,000

50,000

60,000

Dec’08Dec’07 Dec’09 Dec’10

Total income Profit after tax

0

10,000

20,000

30,000

40,000

50,000

60,000

Profit after tax/Total income

0

45.0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

Nmillion %


22,619

42,49543,823

48,394

0

10,000

20,000

30,000

40,000

50,000

60,000

Nmillion


Operating income per branch

0

100

200

300

400

500

600

700

800

Nmillion

363

685664

459


Total income 22,480 42,495 43,823 48,394

Profit after tax 7,850 11,993 8,138 9,455

Profit after tax/Total income 34.9% 28.2% 18.6% 19.5%


Total income 22,480 42,495 43,823 48,394


18.7 25.6 21.8 21.5

0

10,000

20,000

30,000

40,000

50,000

60,000

Interestincome

Interestexpenses

Creditimpairment

charges

Operatingexpenses

Profit before taxation

Taxes Profit after taxation

7,989

620

13,528

4,073

9,455

34,359

34,246

Non-interestrevenue

22,024

Inco

me

stat

emen

tan

alys

is

Net interest income and net interest margin

CAGR (2007-2010): 40%

Prime interest rate

Component of interest income Yield on interest earning assets and

interest bearing liabilities

Breakdown of interest income and expenses

Factors impacting net interest income

Favourable

• Proactive restructuring of the funding base.

• Replacement of expensive deposits with cheaper funding.

• Good quality and well priced risk assets.

• Net interbank lender.

Adverse

• Limited profitable investment opportunities to channel

the significant market liquidity.

• Declining lending rates.

• Lower yields on investment securities.

Change%

2010Nmillion

2009Nmillion

Interest on investment securities (16) 10,395 12,302

Interest income on placement with banks (20) 3,686 4,602

Interest revenue on loans and advances (16) 20,278 24,016

Medium term advances/call loans 15 12,691 11,080

Overdrafts (58) 4,469 10,746

Home loans 11 1,146 1,036

Instalment sales & finance leases 71 1,972 1,154

Interest income (16) 34,359 40,920

Interest expense (49) 7,989 15,813

Savings accounts >100 248 102

Current accounts 52 590 387

Time deposit (55) 5,561 12,433

Inter-bank takings (42) 1,036 1,787

Borrowed funds (50) 554 1,104


Net interest income and margin analysis

Nmillion %

0

5,000

10,000

15,000

20,000

25,000

30,000

0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

%

SIBTC prime interest rate

Inflation (12 month average)

02007 2008 2009 2010

12.513.7

1718

25

20

15

10

5

Securities Placements Loans & advances

0%


120%

100%

80%

60%

40%

20%

34% 27% 30% 30%

56% 61% 59% 59%

10%12%

11% 11%

Cost of interest bearing liabilities

Yield on interest earning assets

Net interest margin

0%Dec’07 Dec’08 Dec’09 Dec’10

16%

14%

12%

10%

6%

8%

2%

4%

3.3%

6.9%

10.9%

13.0%

7.7%

7.4%


Net interest income 9,601 22,362 25,107 26,370

Net interest margin before impairment charges

5.8% 6.4% 7.4% 6.9%

Net interest margin before impairment charges

4.6% 4.9% 5.9% 6.7%


43

Inco

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CAGR (2007-2010): 20%

Composition of non-interest revenue

Breakdown of non-interest revenue

Change%

2010Nmillion

2009Nmillion

Net fee & commission revenue 38 18,983 13,707

Point of representation transaction fee 12 2,850 2,553

Documentation & administration fee (9) 3,107 3,406

Electronic banking transaction fee 15 447 390

Knowledge based/professional service fee >100 12,267 5,715

Other fee & commission revenue (81) 312 1,643

Trading revenue (36) 2,658 4,169

Foreign exchange (36) 2,658 4,169

Other revenue (54) 383 840

Rental income (81) 6 31

Investment income (48) 126 243

Other non-bank revenue (56) 251 566

Total non interest revenue 18 22,024 18,716

Favourable

• Growth in account transaction fees driven by increase in

customer base and transactional volumes.

• Significant increase in credit related fees due to strong

growth in loan book.

• Gradual recovery of the capital markets in the first half of

the year impacted revenue positively in stock broking,

custody pensions and asset management businesses.

• Higher level of advisory mandates within investment

banking.

• Increased electronic banking revenue due to increased

availability of ATMs with lowest downtime in the industry.

Growth in transaction volumes as evidenced by increase in

transaction based commissions.

• Non-interest revenue benefitted from the group diversified

business model.

Adverse

• Low volatility in the foreign exchange market resulting in

lower trading revenue.

• Poor performance of the stock exchange in the second half

of year impacted revenue of our capital market related

businesses.

Non-interest revenue mix


2010 2009

Factors impacting non-interest revenue

Commissions

Fees

Trading revenue

Other income

19%

67%

12%

2%

Commissions

Fees

Trading revenue

Other income

17%

57%

22%

4%

Percentage of total income


0


25,000

Nmillion

20,000

15,000

10,000

5,000

0

70%

60%

50%

40%

30%

20%

10%

13,018

20,13318,716

22,024

0%

120%

100%

80%

60%

40%

20%

Dec'07 Dec'08 Dec '09 Dec'10

Other revenue 1,939 1,156 840 383

Trading revenue 1,990 4,115 4,169 2,658

Net fee & commission revenue 9,089 14,862 13,707 18,983

45

Inco

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Change%

2010Nmillion

2009Nmillion

Provision for loan losses

Non performing loans (38) 3,814 6,163

Performing loans >100 623 156

Total provision for credit losses (30) 4,437 6,319

Provision for other assets (47) 626 1,184

Recoveries 94 (522) (269)

Provisions no longer required 63 (3,921) (2,401)

Bad debt written off >(100) - 25


Favourable

• Reduction in credit impairment charges due to

effectiveness of risk management processes and improved

loan book quality.

• Lower impairment charge within Corporate and Investment

Banking as a result of improved debt servicing ability and

portfolio provision releases.

• Improved collections capability, including strategies to

manage risk and expand operational capacity.

Adverse

• Continued pressure on recovery values of collateral.

Operating expenses

Operating expenses Cost and income growth

Change%

2010Nmillion

2009Nmillion

Staff costs 10 14,781 13,469

Other operating expenses:

Auditor’s remuneration (2) 135 138

Communication (16) 534 638

Depreciation 57 4,034 2,567

Information technology 58 2,431 1,538

Marketing expenses 10 1,318 1,197

Premises 9 2,764 2,527

Travel and transportation (6) 1,377 1,466

Training 6 437 412

Others 38 6,435 4,671

Total other operating expenses 28 19,465 15,154

Total operating expenses 20 34,246 28,623

Average number of employee 12 2,248 2,009

Cost per average employee (Nmillion) 7 15.2 14.2

Breakdown of operating cost


Movement in credit impairment charges


Credit impairment charges and interest income

Factors impacting credit impairment charges

Credit loss ratioCredit impairment charge on NPLs

Credit impairment charge on PLs

(2,000)


5,000

4,000

3,000

2,000

1,000

0

3%

4%

5%

2%

1%

0%

(1,000)

1,681

362

4,607

413

4,504

354(835)

1,455

Nmillion

Credit impairment charges as % of net interest income

Credit impairment charges as % of interest income

0 Dec’07 Dec’08 Dec’09 Dec’10

25

%

20

15

5

10


Nmillion

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

9,444

22,850

28,623

34,246

Cost-to-income ratio

Total income growth Total cost growth

0


160

140

120

100

80

60

40

20

0

80

70

60

50

40

30

20

10

413

30

42

142

89

25

3

20

10

Growth % Ratio %

47

Inco

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is


Operating cost mix Staff cost per average employee

Operating cost per average number of branches Employee efficiency and productivity

Operating expenses impacted by

Staff costs and headcount

• Increased headcount in business support functions especially credit attributable to the need to strengthen our risk management

process as we continued the implementation of our retail growth strategy.

• Growth in business volume and points of representation requiring additional client facing and support staff and training and

retraining of staff.

• Efficient deployment of human resources. The headcount in Personal & Business Banking grew by 11% despite the 101% increase

in the number of branches.

Other operating expenses

• Higher Information Technology and depreciation costs attributable to branch expansion and increased ATMs. Number of branches and

ATMs grew by 101% and 52% respectively in the last one year. Depreciation cost grew by 57% and represented 12% of total operating

costs in 2010.

• Growth in premises costs resulting from footprint expansion and rental escalations.

• Reduction in communication costs as a result of deployment of cheaper sources of communication.

• Increased marketing and marketing costs relating to branding initiatives.

Operating expenses

DepreciationStaff cost

Other operating expenses

0%


120%

100%

80%

60%

40%

20%49% 46%

6%

48%

47% 43%

12%

45%

49%44%

8% 9%

Staff cost per average employeeStaff cost

0


16,000

12,000

14,000

10,000

6,000

8,000

2,000

4,000

0

8.0

6.0

7.0

5.0

3.0

4.0

1.0

2.0

Nmillion Nmillion

4,660

10,426

13,469

14,781

0


500

Nmillion

300

450

250

150

200

350

300

50

100

152

369

325

Operating cost per branch

434

Change %

2010 2009

Personal & business banking 11 1,109 1,003

Corporate & investment banking 9 248 228

Wealth 3 300 291

Credit 54 77 50

Other business enablers 18 514 437

Average number of employees 12 2,248 2,009

Average headcount by business unit

Cost per average employee


0


7.9

13.8 14.215.2

18.7

25.6

21.821.5

30

%

25

20

15

10

5

49

Bal

ance

sh

eet

anal

ysis



Taxation charge and effective tax rate

Effective tax rate

Nmillion %

0


500

300

450

250

150

200

350

300

50

100

Total tax charge

3,162

2,632

4,073

2,204

0

50

40

20

30

10

• Increase in taxation charge due to under provision in prior year.

Taxation

Change %

2010 Nmillion

2009 Nmillion

Income tax 3 3,328 3,231

Education tax (20) 165 207

Technology tax (31) 71 103

Total income tax charge 1 3,564 3,541

Under/(over) provision in prior years

>(100) 720 (722)

Deferred tax (57) (360) (830)

Charge for the year 97 3,924 1,989

Withholding tax charge (31) 149 215

Total tax charge 85 4,073 2,204

Movement in tax charge


Overview of group consolidated assetsLoans and advancesLoans and advances performanceDeposits and current accountsFunding and liquidity

5153565961

51

Bal

ance

sh

eet

anal

ysis


Overview of group balance sheet

Asset mix

Change%

2010Nmillion

2009Nmillion

PBB (15) 122.016 142,721

CIB 33 251,475 188,610

Wealth 21 11,050 9,159

Stanbic IBTC group 13 384,541 340,490

Total assets by business unit

Return on average assets Balance sheet breakdown

Overview of group consolidated assets

5.0%

4.0%

4.5%

3.0%

3.5%

2.0%

2.5%

0.5%

1.0%

1.5%

0


Return on average assets (pre tax)

Return on average assets (post tax)

0


120%

100%

60%

40%

80%

20%

4%

15%

25%

26%

22%

8%

3%4%

32%

29%

22%

10%

2%3%

23%

35%

21%

16%

3%3%

23%

46%

12%

13%

Loans & advances

Treasury bills Investment securities

Due from other banks Other assets

Cash & short term funds

Nbillion

450

400

350

250

300

200

50

100

150

0

2010 2009

Interbank & cash Investment securities

Treasury bills Other assets

Loans & advances to customers Property & equipment

13%

340

385

99 85

178 120

48

17

31

71

26

27

1211

0

450,000

350,000

250,000

150,000

50,000

Nmillion

400,000

300,000

200,000

100,000

Total assets Interbank & cash

Treasury bills Loans & advances (net)

Other assets Investmentsecurities

Property & equipment

384,541 98,707

12,428 177,454

17,11547,585

31,252

53

Bal

ance

sh

eet

anal

ysis


Loans and advances (Gross)

CAGR (2007-2010): 26%

Composition of gross loans and advances

Loans and advances contribution by business unit

Loans and advances by maturity

Breakdown of loans and advances by industry

Loans and advances

2010 2009

Overdrafts

Home loans

Term loans

Instalment sales (VAF)

35%

6%51%

8%

22%

78%

PBB

CIB

31%

69%

PBB

CIB

Nbillion

200

160

180

120

140

80

100

20

40

60

0


93

113

133

187

Change%

2010Nmillion

2009Nmillion

0-30 days 7 45,326 42,362

1-3 months (5) 43,882 46,370

3-6 months >100 12,316 3,775

6-12 months (31) 8,164 11,825

Over 12 months >100 77,454 28,768


Sector Change %

2010Nmillion

2009Nmillion

Agriculture >100 1,475 639

Oil and gas (59) 10,654 26,273

Capital market 5 661 632

Consumer credit - 13,719 13,736

Manufacturing (7) 38,460 41,369

Mining & quarrying >100 10,644 80

Mortgage >100 10,643 2,344

Real estate and construction >100 7,630 2,324

Finance & insurance (82) 490 2,657

Government >100 3,926 406

Power >100 11,512 2,262

Other public utilities 73 39,210 22,702

Transportation >100 5,954 2,535

Communication >100 32,093 14,849

Education (76) 71 292


55

Bal

ance

sh

eet

anal

ysis


Loans and advances

• The group continued to unlock profitable investment opportunities by growing its loan book by 41% despite the significant

market liquidity and increased competition for good quality credits.

• Growth in the contribution of Personal & Business Banking to the loan book.

• Continued focus on developing business banking arm of Personal and Business Banking.

• Potential increase in annuity income as medium to long term loans (over 12 months) accounted for 41% (2009:21%) of total loan portfolio.

• Loan and advances to all economic sectors with increased contribution towards infrastructural finance, communication, property

and mortgage financing.

Loans and advances by sector

Oil & gas5.7%

Agriculture0.8%

Capital market0.4%

Real estate & construction4.1%Finance &

insurance0.3%

Government2.1%

Power6.2%

Mortage5.7%

Consumer credit7.3%

Mining & quarrying5.7%

Education0.0%

Communication17.1%

Transportation3.2%

Manufacturing20.6%

Other public utilities21.0%

Loans and advances

Non-performing loans Risk asset quality

Loans and advances performance

Nbillion %

20

18

16

14

12

8

10

2

4

6

0


Non performing loans NPL/total loan ratio

0

16

12

14

10

6

8

2

4

11.2

15.5

18.8

14.2

Nbillion

200

150

100

50

0


Provision adequacy

Gross loans & advances Non performing loans

11.2

93.1

15.5 18.8

133.1

14.2

187.1

113.1

0.0%

20%

40%

60%

80%

100%

120%

Credit loss as a percentage of gross loans and advances

Composition of non-performing loans

Nmillion

20,000

15,000

10,000

5,000

0

Dec’10 Dec’09

Substandard Doubtful Lost

1,499

2,748

11,501

5,565

9,990

1,764

16.0%

12.0%

8.0%

14.0%

10.0%

6.0%

4.0%

0

2.0%0.3%

5.2%

7.6%

14.1%

9.9%

3.6%


NPL/total loan Total provision/total loan

Credit loss ratio

57

Bal

ance

sh

eet

anal

ysis


NPL and coverage ratio

• The group participated in the sale of toxic assets to Asset Management Company of Nigeria (AMCON) to the tune of N14 million

This did not materially influence the reduction in the group’s NPL and NPL ratio.

• The group witnessed improved asset quality in 2010. The non-performing loans were down by 24% despite loan growth.

• 61% of the total NPL is concentrated in the hands of four CIB obligors. We believe that these NPLs are recoverable and efforts

are geared towards its collection.

• Credit management team has been strengthened with experienced and qualified personnel and also a number of new systems

(e.g. Adaptiv, Financial spreading and the Credit rating tool) are currently being rolled out to support credit reporting

and exposure monitoring.

Non-performing loans by industry Balance sheet provision breakdown

NPL concentration by business unit

Others0.1%

Communication2.7%

Real estate & construction

0.0%

Generalcommerce22.4%

Oil & Gas56.4%

Transportation12.7%

Finance &insurance

5.6%

Manufacturing0.1%


NPL/total loans Provision adequacy

103.6%

67.2%

70.2%

68.1%

12%13.7% 14.1%

7.6%

NPL breakdown 2010Nmillion

2010 % of total NPL

2009Nmillion

2009% of total NPL

Top 2 CIB NPLs (2009: Top 4) 8,676 60.9 10,541 56.0

Other CIB NPLs 1,054 7.4 2,419 12.8

PBB NPLs 4,507 31.7 3,947 21.0

Margin NPLs - - 1,924 10.2

Total NPLs 14,237 100.0 18,830 100.0

Loans and advances performance

2010 Nmillion

2009 Nmillion

Non performing 6,435 10,546

Performing 1,783 1,160

Interest in suspense 1,470 1,509

Total balance sheet provision 9,688 13,215

Gross NPL balance Nmillion

Interest in suspense Nmillion

Security value

NmillionNet NPL Nmillion

Provision Nmillion

Provision adequacy without security

%

Provision adequacy with security

%

Oil & gas 8,025 686 9,190 7,339 3,457 52 166

Other sectors 6,212 784 4,392 5,428 4,761 89 160

Closing balances 14,237 1,470 13,582 12,767 8,218 68 163

Provision adequacy

59

Bal

ance

sh

eet

anal

ysis


Deposit liabilities

CAGR (2007-2010):38%

Deposits by type Deposits contribution by business segment

Breakdown of deposit liabilities Deposit liabilities

• The group took a conscious decision to exit expensive deposits in the light of significant market liquidity and declining interest

rates. The decision resulted in lower cost of funding and improvement in the ratio of lower cost deposits from

52% to 55%.

• Significant increase in low cost deposits as evidenced by the 75% growth in current and savings deposits.

• The PBB contribution to deposit portfolio was stable in 2010. This is expected to improve as we continued to grow our retail

business.

• Continued focus on attracting lower priced deposits.

Deposits and current accounts

PBB

CIB

44%

56%

Current deposits

Savings deposits

Term deposits

Domiciliary deposits

42%

5%

8%

45%

0


200,000

Nmillion

180,000

160,000

100,000

80,000

60,000

140,000

120,000

40,000

20,000

71,391

95,262

169,200

186,466

0

120

%

100

60

40

80

20

Dec’07

Current deposit Savings deposit

Domiciliary deposit Term deposit

Dec’08 Dec’09 Dec’10

45 50 48 45

35 27 48 45

1317

98

76

35

61

Bal

ance

sh

eet

anal

ysis



Nbillion

Assets Liabilities

99 186

12

177

48

17

31

56

36

18

84

4

Interbank & cash

Treasury bills

Loans & advances to customers

Investment securities

Other assets

Property & equipment

Deposits

Due to other banks

Taxation

Other liabilities

Long term loans

Equity

Funding mix


Diversity of funding

Deposits

Borrowings

Other liabilities

Equity

49%

19%

10%

22%

0%


120%

100%

60%

40%

80%

20%

23% 27% 50% 49%

23% 23%11% 10%

24% 23% 24% 22%

30%27%

15% 19%

Other liabilities

Borrowings Equity

Deposits

Group2010

Nmillion

Bank2010

Nmillion

Group2009

Nmillion

Bank2009

Nmillion

Specified liquid assets

Cash 7,368 7,367 4,020 4,016

Balance with CBN 2,681 2,681 3,752 3,752

Net balance held with banks within Nigeria 1,293 73 1,113 72

Treasury bills (Unpledged) 3,053 3,053 7,068 7,068

Net interbank placement with other banks 10,983 10,983 17,710 17,710

Federal Government of Nigeria bonds 27,849 26,401 45,961 44,926

Stabilisation securities 18 18

Total asset (A) 53,245 50,576 79,624 77,544

Current liabilities

Adjusted deposit liabilities 170,726 171,618 154,085 155,050

Due to other banks in Nigeria 293 293 953 953

Total liabilities (B) 171,019 171,911 155,038 156,003

Liquidity ratio A/B*100 31.1% 29.4% 51.4% 49.7%

Liquidity ratio computation

2010Nmillion

2009Nmillion

Marketable assets 37,570 69,479

Short-term foreign currency placements 47,747 1,297

Total unencumbered marketable assets 85,317 70,776

Other readily accessible liquidity 18,200 28,300

Total unencumbered surplus liquidity 103,517 99,076

Group unencumbered surplus liquidity

Liquidity buffer

• Portfolios of highly marketable securities are maintained as protection against unexpected disruptions in cash flows. These portfolios are

managed on the basis of diversification, liquidity and yield.

• The group encumbered surplus liquidity increased from N99.1 billion as at 31 December 2009 to N103.5 billion as at end

December 2010, reflecting the group’s prudent liquidity management approach as informed by stress testing requirements and prevailing

market conditions.

Liquidity stress testing and scenario analysis

• Anticipated on and off balance sheet cashflows are subjected to a variety of bank specific and systemic stresses and scenarios in order

to evaluate the impact of unlikely but plausible events on liquidity positions.

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Maturities of group assets and liabilities


• Stable sources of funding to exploit market opportunities.

• Primary sources of funding are from deposits and equity. 49% of total assets were funded by deposit liabilities.

• Continued focus on growing retail business and attracting lower priced deposits.

• Medium to long term funding from the Development and Financial Institutions form part of the group’s diversified funding base.

• Liquid and flexible balance sheet with liquidity ratio of 31% well above the regulatory minimum of 25%.

• Very active in the interbank market as a net placer of funds.

• Concentration risk limits are used to ensure that funding diversification is maintained across products and sectors.


0-30 days

Nmillion

1-3 months Nmillion

3-6 months Nmillion

6-12 months Nmillion

1-5 years

Nmillion

Over 5 years

NmillionTotal

Nmillion

Total assets 135,812 74,897 17,059 22,767 86,776 47,230 384,541

Total liabilities 221,302 22,048 19,962 21,831 10,737 3,535 299,415

Net liquidity gap (85,490) 52,849 (2,903) 936 76,039 43,695 85,126

Liquidity ratioLoans to customer’s deposits Statutory minimum

0


140%

120%

100%

80%

20%

40%

60%

0%

90%

80%

70%

60%

50%

40%

30%

20%

10%

130

119

79

100

65

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Market capitalisation Price-to-book

The group share price out performed both the NSE All Share Index and the Banking Industry index in 2010. The group’s price-to-book ratio

of 2.0 times is one of the highest in the banking industry. As at year end, the group ranked 10th in market capitalization amongst the 217

listed equities on the Nigerian Stock Exchange.

Change %

2010 2009

Number of shares at the end of the year thousands 0 18,750,000 18,750,000

Net asset value Nmillion 4 85,126 81,497


Share price at the end of the year kobo 23 920 747

Market capitalisation at end of the year Nbillion 23 173 140

Price-to-book at end of the year times 18 2.0 1.7

Market capitalisation and price-to-book ratio

0

372.9

Dec’07

204.4

Dec’08

140.0

172.5

Dec’09 Dec’10

400

Nbillion

350

200

150

100

300

250

50

Price-to-bookNet asset value per share

0Dec’08 Dec’09 Dec’10

700Kobo Times

600

500

400

100

200

300

3.0

2.5

2.0

0.5

1.0

1.5

0

3.5

Dec’07

403434 435 454


Market capitalisation and price-to-book ratioEquity and range analysisShare capital history

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Share range No. of shareholders

Percentage of shareholders

No. of holding Percentage holdings

1 - 1,000 27,455 25.1 22,910,238 0.1

1,001 - 5,000 47,041 43.0 130,213,858 0.7

5,001 - 10,000 14,029 12.8 118,917,909 0.6

10,001 - 50,000 15,487 14.2 371,398,470 2.0

50,001 - 100,000 2,581 2.4 206,346,836 1.1

100,001 - 500,000 2,225 2.0 506,010,291 2.7

500,001 - 1,000,000 281 0.3 219,130,334 1.2

1,000,001 - 5,000,000 204 0.2 421,406,877 2.2

5,000,001 - 10,000,000 41 0.0 292,779,376 1.6

10,000,001 - 50,000,000 54 0.0 1,310,095,341 7.0

50,000,001 - 18,750,000,000 35 0.0 15,150,790,470 80.8

Grand Total 109,433 100 18,750,000,000 100

Foreign shareholders 148 9,759,536,445 52.0

Nigerian shareholders 109,285 8,990,463,555 47.9

109,433 18,750,000,000 100

Significant shareholding

Shareholder No of shares held Percentage shareholding

Stanbic Africa Holdings Limited 9,518,617,926 50.75

First Century International Limited 1,400,790,732 7.47

Share capital history

Year Authorized (N000)

Issued & fully paid-up (N000) Consideration

Increase Cumulative Increase Cumulative

1989 - 20,000 - 12,000 Cash

1991 30,000 50,000 12,000 24,000 Bonus (1:1)

1992 - 50,000 16,000 40,000 Bonus (2:3)

1994 100,000 150,000 60,000 100,000 Bonus (3:2)

1996 50,000 200,000 100,000 200,000 Bonus (1:1)

1997 400,000 600,000 400,000 600,000 Bonus (2:1)

2001 400,000 1,000,000 400,000 1,000,000 Bonus (2:3)

2003 1,000,000 2,000,000 1,000,000 2,000,000 Bonus (1:1)

2004 2,000,000 4,000,000 - 2,000,000

2005 1,000,000 5,000,000 935,492 2,935,492 Cash

2006 1,500,000 6,500,000 3,314,508 6,250,000 Cash and share exchange

2007 3,500,000 10,000,000 3,125,000 9,375,000 Share exchange

The shareholding pattern as at 31 December 2010 is as stated below:

Equity and range analysis

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Otherinformation

Basic earnings per ordinary share (EPS) (kobo)

CAGR (%)

Dividend cover (times)

Dividend per share (kobo)

Net asset value (Nmillion)

Net asset value per share (kobo)

Price-to-book ratio (times)

Profi t attributable to ordinary shareholders

Profi t for the period (Nmillion)

After tax return on average equity (ROaE) (%)

Shares in issue (number)

Total capital adequacy ratio (%)

Turnover in shares traded (%)

Weighted average number of share (number)

Cost-to-income ratio (%)

Credit loss ratio (%)

Gross impairment coverage (%)

Non performing loans ratio (%)

Provisions for non-performing loans (Nmillion)

Provision of performing loans (Nmillion)

Net interest margin (%)

Non-interest revenue to total income (%)

Financial and other defi nitions

Earnings attributable to ordinary shareholders divided by the ordinary shares in issue.

Compound annual growth rate.

Earnings per share divided by dividend per share.

Total dividends to ordinary shareholders including dividends and scrip distributions declared per share in respect of the period.

Equity attributable to ordinary shareholders.

Net asset value divided by the number of ordinary shares in issue at the end of the period.

Market capitalization divided by net asset value

Profit for the period attributable to ordinary shareholders, calculated as profit for the period less minority interests.

Income statement profit attributable to ordinary shareholders and minorities shareholders for the period.

Profit after tax as a percentage of annual average ordinary shareholders’ funds.

Number of ordinary shares in issue as listed on the floor of the Nigerian Stock Exchange (NSE)

Regulatory capital divided by risk-weighted assets.

Number of shares traded during the period as a percentage of the weighted average number of shares.

The weighted average number of ordinary shares in issue during the period as recorded on the NSE

Operating expenses as a percentage of total income

Total impairment charges on loans and advances per the income statement as a percentage of gross loans and advances

Non-performing loan impairments as a percentage of gross non-performing loans.

Total non performing loans as a percentage of gross loans and advances.

Provisions for specific identified credit losses.

Provisions for credit losses inherent in the performing loan book.

Net interest income as a percentage of total assets

Non-interest revenue as a percentage of total income.

Other information

Financial and other defi nitionsContact details Notes

707172

71 72

Chief financial officer

Ronald Pfende

Tel: +234 1 4488900

e-mail : [email protected]

Company secretary

Angela Omo-Dare

Tel: +234 1 4488900

e-mail: [email protected]

Head, investor relations

Oluwatosin Odutayo

Tel: +234 1 4488900


25

Registered address & head office Stanbic IBTC Bank PLC

I.B.T.C. Place

Walter Carrington Crescent

P. O. Box 71707

Victoria Island

Lagos, Nigeria


Stanbic IBTC Bank PLC analysis of financial results 31 December 2010

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Contact details

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