stanbic ibtc holdings plc - the vault 5 group results in brie business unit revie income statement...

Analysis of full-year financial results for the year ended 31 December

Stanbic IBTC Holdings PLC

2013

1

Group results in brief

Business unitreview

Income statementanalysis

Balance sheet analysis

Capital management

Market and Shareholderinformation

Otherinformation

Stanbic IBTC Analysis of financial results for the period ended 31 December 2013

Group results in briefPerformance highlights

Financial results, ratios and statistics

Economic and capital market statistics

Overview of financial results

Summarised income statement

Statement of other comprehensive income

Summarised group income statement quarterly analysis

Statement of financial position

Statement of financial position quarterly analysis

Statement of changes in equity

Statement of cash flows

Group entity’s financial statements

Business unit reviewSegmental structure for key business units

Summarised segmental income statement

Personal and Business Banking

Corporate and Investment Banking

Wealth

Income statement analysisOverview of group income

Net interest income and margin analysis

Non-interest revenue

Credit impairment charges

Operating expenses

Taxation

Balance sheet analysisOverview of group consolidated assets

Loans and advances

Loans and advances performance

Asset quality

Deposits and current accounts

Funding and liquidity

Capital managementReturn on ordinary equity

Risk weighted assets

Market and shareholder informationMarket capitalisation and price-to-book ratio

Dividend payment history

Equity and range analysis

Other informationFinancial and other definitions

Contact details

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All results in this booklet are presented on an IFRS (International Financial Reporting Standards) basis.

Contents

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Capital management


Otherinformation

Group resultsin brief

2 Stanbic IBTC Analysis of financial results for the period ended 31 December 2013



Fitch rating

AAA(nga)(2012: AAA(nga))

Liquidity ratio

89.1% (statutory minimum: 30%)

Price to book

2.3 times (2012: 1.3 times)

Total income Vs. Total cost growth

Total income

Profit after tax Total cost growth

Total income growthProfit after tax/total income

0

5

10

15

20

25

30

2010 2011 2012 20130

70,000

80,000

60,000

50,000

40,000

30,000

20,000

10,000

90,000

Nmillion %

5

21%

12%

24%

55,24750,041

67,410

85,232

15%

10,3336,643 10,157

20,773

2010 2011 2012 20130

20

15

10

5

25

%

14

20

16

2122

17

26

18

5

Total income

N85,232 million26% up

Gross earnings


Performance highlights

Profit before tax


Profit after tax


Gross loans & advances

N303,306 million(2012: N279,473million) up 9%

After-tax return on average equity

21.0%

(2012: 10.9%)

Deposit liabilities

N416,352 million(2012: N355,419million) up 17%

Cost-to-income ratio

68.0% (2012: 72.8%)

Credit loss ratio

0.9% (2012: 2.5%)

NPL/total loan ratio

4.4% (2012: 5.1%)

Capital adequacy ratio

24.5% (2012: 21.3%)

Total assets

N763,046 million (2012: N676,819 million) up 13%

Total income and profit after taxCAGR (2010- 2013): Total income: 19%

Profit after tax: 27%

Group results in briefPerformance highlights




Summarised income statement

Statement of other comprehensive income


Statement of financial position

Statement of financial position quarterly analysis

Statement of changes in equity

Statement of cash flows


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Change % 2013 2012

Business unit contribution to profit before tax

Profit before tax Nmillion >100 24,617 11,412

Banking business >100 9,474 3,764

Personal & Business Banking Nmillion 44 (7,696) (5,296)

Corporate & Transactional Banking Nmillion 90 17,170 9,060

Investment Banking Nmillion >100 2,884 177*

Wealth Nmillion 64 12,259 7,471

Balance sheet

Total assets Nmillion 13 763,046 676,819

Loans and advances (net of credit impairments) Nmillion 9 289,747 266,344

Deposits from customers Nmillion 17 416,352 355,419

Key performance indicators

Net interest margin % 4.9 5.0

Non-interest revenue to total income % 56.6 50.2

Cost-to-income ratio % 68.0 72.8

Return on average equity (pre-tax) % 27.7 14.0

Return on average equity (after-tax) % 21.0 10.9

Return on average assets (pre-tax) % 3.4 1.9

Return on average assets (after-tax) % 2.9 1.6

Basic earnings per share kobo >100 186 50

Net asset value per share kobo 13 943 833

Shareholders' equity Nmillion 13 94,313 83,341

Other indicators

Price-to-book (P/B ratio) times 77 2.3 1.3

Effective tax rate % 15.6 11.0

Average number of employees number (5) 2,077 2,184

Stanbic IBTC GroupChange % 2013 2012

Balance sheet


Loans and advances (net of credit impairments) Nmillion 9 289,747 266,344

Deposits from customers Nmillion 17 419,032 359,503

Selected returns and ratios

Return on average equity (pre-tax) % 14.1 5.6

Return on average equity (after-tax) % 15.0 7.9

Return on average assets (pre-tax) % 1.4 0.6

Return on average assets (after-tax) % 1.5 0.9

Loan to deposit ratio % 72.4 77.7



Credit impairment charges Nmillion >100 2,667 6,895

Credit loss ratio % 0.9 2.5

Cost-to-income ratio % 80.2 79.8

Tier 1 capital adequacy % 16.6 16.3

Total capital adequacy % 18.3 16.3

Non-performing loan to total loan % 4.4 5.1

Effective tax credit % 6.9 40.8

Average number of employees (8) 1,355 1,475

Banking activities

* Investment banking profit was just for the period from 22 November to 31 December 2012 (1 month 10 days) when the new structure was implemented.

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In 2013, the group experienced:

Globally

Weakening of emerging market currencies over concerns that the United States (US) Federal Reserve would start to slow its monetary stimulus.

Contained global inflation, although significantly higher in developing markets than advanced economies.

More stable macro-economic conditions in East and West Africa as indicated by lower average interest rates.

Signs of recovery in the US economy with the unemployment rate at 6.7%, the lowest level since October 2008.

Economic stagnation in the Eurozone.

Nigeria

Sustained single digit inflation in 2013. Headline inflation closed the year at 8.0%.

Continued decline in oil revenues as a result of crude oil losses which persist in the southern part of Nigeria.

Ongoing reforms in agriculture, power and oil and gas sectors.

Significant growth in the capital market performance. NSE ASI appreciated by 47.2%.

Continued banking regulatory reform leading to tightening margins and pricing caps.

Continued monetary policy tightening as cash reserve requirement (CRR) on public sector deposits increased to 50% from 12%, while CRR on private sector deposits remained at 12%. The monetary policy rate remained at 12% and liquidity ratio was also maintained at 30%.Share price performance:

2013 (rebased)

Stanbic Share price NSE All Share index Banking Index

Stanbic’s share price outperformed both the NSE All share Index (NSE ASI) and the Banking Index (BI) in 2013. The share price appreciated by 94% to close at N21.35 from N11.00 on 2 January 2013, while NSE ASI and BI appreciated by 47% and 28% respectively in 2013

0

0.5

1.0

1.5

2.0

2.5

%

02-May

-13

02-Apr

-13

02-Mar-

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02-Feb

-13

02-Jan

-13

02-Jun

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Change % 2013 2012

Economic indicators

Headline inflation (12 month average) % 8.5 12.2

GDP growth % 6.8 6.6

External reserves $billion (1) 43.6 44.2

Average official exchange rate N/$ 2 159.2 155.4

Market Indicators

NSE All Share Index 47 41,329.2 28,078.8

NSE equities turnover Nbillion 56 1,025.5 658.2

Average daily activity Nmillion 19 426.2 359.5

Aggregate market capitalisation Ntrillion 29 19.1 14.8

Equity market capitalisation Ntrillion 47 13.2 8.98

Stanbic share statistics

Share price

High for the period kobo 72 2,135 1,238

Low for the period kobo 6 1,100 1,041

Closing kobo 94 2,135 1,100

Shares traded

Number of shares thousands (17) 527,801 633,567

Value of shares Nmillion 85 8,217 4,432

Market capitalisation Nbillion 94 213.5 110.0

Financial results, ratios and statistics (continued)

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Operating environment

Global operating environmentGlobal economy continued to grow at a slow pace despite improved global financial conditions and reduced short-term risks. The global growth rate for 2013 is put at 2.9% from 3.2% recorded in 2012. The sluggish economic activity in the Eurozone, with 0.3% growth, continues to impede global economic growth as unemployment continues to rise in Euro zone countries such as Belgium, Finland, France and Italy. Developing countries and economies in transition continue to register much stronger growth than developed economies. Although, emerging markets that were major beneficiaries of cheap money from the US Federal Reserve Bank stimulus could experience financial market instability as tapering begins.

Growth in emerging markets and developing economies also eased to 4.5% in 2013, from 4.9% in 2012, due to the poor economic performances in India and China, at 3.8% (2012: 5.0%) and 7.6% (2012: 7.8%), respectively. Africa’s economy witnessed slower growth owing to the negative impact of the slowdown in developed economies on economic activity. The major drivers of growth include further increases in output in the natural resources sector such as gas and agricultural products, which underpins rising fiscal expenditure, especially in infrastructure projects. Bumper harvests in some regions (due to favourable weather), tightening trade and investment ties with emerging economies. Sub-Sahara Africa’s growth remained broadly flat over the period, and is estimated at 5.0% from 4.9% in 2012.

Domestic operating environmentThe Nigerian economy, measured by GDP, is to grow by 6.8% in 2013, from 6.6% in 2012 and lower than the 7.3% recorded in 2011. The non-oil sector continued to drive the growth in the economy as a result of better performance in the agricultural sector, crop production in particular, banking and insurance activities, real estate, hotels & restaurants and building & construction. The oil sector continues to face challenges of crude oil theft and pipeline vandalism leading to the decline of oil production to 2.26 million barrels per day (3Q 2013) from 2.52 million barrels per day at the end of 2012. Oil growth has been consistently negative in the past few years owing to the decline in investment in the sector due to the delay in passing the Petroleum Industry Bill.

The headline inflation remained at single digit throughout 2013. Headline inflation closed at 8.0% at the end of 2013 improving from 12.0% recorded in 2012. The improvement in the inflation rate was driven by increased food supply and the moderate prices of commodities in 2013, compared to 2012 where there was hike in price of food items as a result of flood experienced in some parts of the country. The 12

month average inflation rate for 2013 closed at 8.5% from an average of 12.2% recorded in 2012.

The nation’s external reserves witnessed a continuous decline in 2013. The reserves closed at US$43.6 billion at the end of 2013, from US$44.2 billion at the beginning of the year. The reserve balance rose to US$48.85 billion in April 2013 after which it maintained a steady decline to close the year at US$43.6 billion. The major cause of the depletion in external reserves is the Central bank’s resolve to ensure exchange rate stability to prevent imported inflation as the economy is import dependent as well as the decline in revenue from crude oil sales.

The foreign exchange rate remained relatively stable as it traded around N155/$1 – N160/$1 throughout 2013. The exchange rate experienced some volatility in second half of the year, during which time the naira traded between N157.60/US$ and N163.90/US$ as the demand for foreign exchange outweighed supply. This resulted in the Central bank tightening foreign exchange supply with the reintroduction of the Retail Dutch Auction System (RDAS), while the Wholesale Dutch Auction System (WDAS) was suspended. Other measures taken includes imposition of a cap of $250,000 on sale of foreign exchange by banks to the Bureau de change (BDCs), as well as place further regulations surrounding FX cash importation by banks to stabilise the exchange rate in Q4 2013.

The monetary policy committee of the central bank maintained tight monetary policies through 2013. The committee increased the cash reserve ratio on public sector deposits to 50% to further reduce the liquidity in the banking system. It maintained the cash reserve ratio on private sector deposits at 12%, monetary policy rate at 12% and liquidity ratio at 30%.

The Nigerian stock market continued its positive performance in 2013. The NSE All Share Index (ASI) performance was up 47.2%. The market opened the year at 28,078.81 and closed at 41,329.19. The market capitalisation of all listed securities, (equities and bonds), at the end of 2013 closed at N19.08 trillion, appreciating 29% from N14.81 trillion recorded in 2012, while equity market capitalisation of 190 listed shares, which accounted for 69% of aggregate market capitalisation, closed at N13.23 trillion, 47% higher than N8.98 trillion recorded in 2012. The positive performance of the capital market can be adduced to the increased confidence by both local and foreign investors, sustained increase in the demand for blue-chip stocks, particularly the banking sector shares as a result of improvement in earnings and more transparent reporting in compliance with International Financial Reporting Standards (IFRS).

Our results

The group produced a robust performance in 2013 as evidenced by the growth in deposit liabilities with the resultant improvement in the deposit mix, prudent approach to asset growth, improvement in asset quality and growth in transactional volumes and activities, with positive impact on revenue.

Income statement analysis

Gross revenue grew 21% to N111.2 billion, due to a significant increase in non-interest revenue and moderate growth in net interest income. The group’s profitability grew significantly as profit before tax was up 116% to close at N24.6 billion, while profit after tax also increased by 105% to N20.8 billion.

Net interest incomeThe group’s interest income increased 8% to N62.6 billion. The increase is principally from a 37% growth in income from investment securities. Income from loans and advances accounted for 67% of total interest income, while income from investment securities represented 29% and interbank placements accounted for the remaining 4%. Interest expense was up 5% in 2013, despite a 17% growth in deposit liabilities. This reflects an improvement in our deposit mix as we continue to focus on gathering cheaper deposits. Net interest income expectedly, grew by 10% to N37.0 billion. Net interest margin, (defined as a percentage of net interest income to total assets less derivative assets) declined to 4.9% in 2013 (2012: 5.0%). The Personal and Business Banking business contributed 50% of total Net interest income as a result of a 27% growth in its risk assets. This supports our strategy to grow our retail franchise.

Non-interest revenueNon-interest revenue was up 42% to N48.2 billion. The increase in non-interest revenue was occasioned by a 29% growth in net fee and commission income and 84% growth in trading revenue. The growth in net fee and commission is as a result of a substantial growth in transaction volumes, improved performance of the capital market, which positively affected the revenues of our capital market related businesses, closure of good advisory mandate in our investment banking business, significant growth in our assets under custody and sustained growth in assets under management of our pension and non-pension asset management businesses. Trading revenue, derived from foreign exchange trading, interest rate trading and securities trading, benefitted from increase in client transaction volumes as well as a well-positioned trading book taking advantage of market fluctuations in interest and exchange rates. Revenue from interest and foreign exchange trading accounted for 91% of trading revenue.

Credit impairmentsCredit impairment charges declined 61% to N2.7 billion in 2013 (2012: N6.9 billion). The reduction is attributable to the resolution of some previously classified loans in our retail banking business segment and recoveries on loans previously written off in our corporate banking business. Consequently, the reduction in impairment charges led to an improvement in credit loss ratio to 0.9% in 2013 better than 2.5% recorded in 2012.

Operating expensesOperating expenses grew 18% to N57.9 billion in 2013. This is driven by a 20% growth in staff costs and 17% growth in other operating costs. The growth in staff costs is as a result of increase in headcount of non-full time staff employed to drive customer acquisition, inflation related salary increase and adjustment in salaries of non-managerial staff during the year. Other operating expenses increased due to the growth in deposit insurance and AMCON sinking fund contribution expenses and marketing & advertising expenses to increase brand awareness. The group’s cost-to-income ratio, despite increase in operating expenses, improved to 68.0% from 72.8% recorded in 2012. For the past 2 years growth in revenue has been faster than cost growth. We expect our cost-to-income ratio to continue to improve as we continue to focus on improving our internal and operational efficiency.

Overall, the group’s profit before tax increased by more than 100% to N24.6 billion (2012: N11.4 billion), while profit after tax also increased by in excess of 100% to N20.8 billion (2012: N10.2 billion).


Total assets grew by 13% to close at N763.0 billion from N676.8 billion achieved at the 2012. The growth is majorly from loans and advances and liquid assets. The balance sheet growth was funded mainly by deposit liabilities from banks and customers (61%) and shareholders’ funds (13%).

Loans and advancesGross loans and advances stood at N303.3 billion at the end of 2013. This represents a 9% growth over N279.5 billion achieved in 2012. We witnessed responsible growth in our risk assets notwithstanding the challenging operating environment characterised by high interest rates and strong competition for good quality corporate credits. Gross loans in our retail business segment moved up 27%, owing to growing customer relationships and leveraging on our expanded delivery channel.

Asset quality continues to improve as our non-performing loan book declined 7% to close at N13.4 billion (2012: N14.3

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billion). This reduction positively impacted the ratio of non-performing loans to total loans, which improved to 4.4% from 5.1% in 2012. The NPL coverage ratio (excluding the net present value of security held) stood at 101% in 2013, increasing from 92% recorded in 2012. We continue to ensure that adequate provisions are held to cover for our risk asset exposures.

Funding and liquidityDeposit from customers was up 17% to close at N416.4 billion in 2013 from N355.4 billion achieved in 2012. Deposit liabilities in our retail banking business increased 21%, while our corporate banking business also witnessed a 14% growth in its deposits from customers. The growth in deposit liabilities is supported by our enlarged network, ability to provide excellent service and specialised products to satisfy customers’ needs.

During the year, we embarked on a targeted deposit drive aimed at improving our deposit mix by focusing on low cost sources of deposit. This impacted positively on our deposit mix as the ratio of low cost deposits to total deposits witnessed improvement to 52% from 43% achieved in 2012.

The group’s deposits from customers represented 63% of total liabilities and funded 55% of the total assets in 2013. We are committed to growing our deposit book and improving the deposit mix through growth of appropriate classes of deposits. The group raised a 7 year subordinated debt of USD40 million during the year to improve foreign currency funding.

We maintained our traditional strong liquidity position throughout the year with liquidity buffers held for potential stressed conditions amounting to N265.2 billion. These levels of liquidity are prudent given the group’s liquidity stress-testing philosophy. The liquidity ratio as at end of 2013 closed at 89.1%. This ratio remains well above the minimum regulatory requirement of 30%.

Capital adequacyThe group continued to maintain a healthy capital base as capitalisation ratios remain at strong levels and are above that the regulatory requirement. The group’s capital is adequate to support our planned growth opportunities within Nigeria as well as business risks and contingencies.

Group2013

Nmillion

Bank 2013

Nmillion

Group2012

Nmillion

Bank 2012

Nmillion

Tier I capital 86,376 63,130 78,197 59,148

Tier II capital 9,941 6,408 2,242 (129)

Total qualifying capital 96,317 69,538 80,439 59,019

Risk weighted assets 392,888 380,437 377,992 362,855

Capital adequacy

Tier I 22.0% 16.6% 20.7% 16.3%

Tier II 2.5% 1.7% 0.6% 0.0%

Total 24.5% 18.3% 21.3% 16.3%

The group’s Tier I capital adequacy ratio was 22.0% (2012: 20.7%), while that of the Bank was 16.6% (2012: 16.3%) in 2013. The total capital adequacy ratio stood at 24.5% for the group (2012: 21.3%) and 18.3% (2012: 16.3%) for Bank in 2013. These ratios are significantly higher than the statutory minimum of 10%.

Summarised income statement – Group

Change%

2013Nmillion

2012Nmillion

Gross earnings 21 111,226 91,860

Net interest income 10 37,013 33,554

Interest income 8 62,585 57,818

Interest expense 5 (25,572) (24,264)

Non-interest revenue 42 48,219 33,856

Net fees and commission revenue 29 32,900 25,568

Fees and commission revenue 29 33,322 25,754

Fees and commission expense >100 (422) (186)

Trading revenue 84 14,895 8,091

Other revenue >100 424 197

Total income 26 85,232 67,410

Credit impairment charges (61) (2,667) (6,895)

Income after credit impairment charges 36 82,565 60,515

Operating expenses 18 (57,948) (49,103)

Staff costs 20 (23,851) (19,953)

Other operating expenses 17 (34,097) (29,150)

Profit before tax >100 24,617 11,412

Income tax >100 (3,844) (1,255)

Profit for the year >100 20,773 10,157

Profit attributable to:

Non-controlling interests 68 2,163 1,289

Equity holders of the parent >100 18,610 8,868

Profit for the year >100 20,773 10,157

Overview of financial results (continued)

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Statement of other comprehensive income – Group

2013Nmillion

2012Nmillion

Profit for the year 20,773 10,157

Other comprehensive income

Items that will never be reclassified to profit or loss - -

Items that are or may be reclassified subsequently to profit or loss:

Net change in fair value of available-for-sale financial assets 408 3,645

Realised fair value adjustments on available-for-sale financial assets reclassified to income statement

(153) 269

Income tax on other comprehensive income - -

Other comprehensive income for the year net of tax 255 3,914

Total comprehensive income for the year 21,028 14,071

Total comprehensive income attributable to:

Non-controlling interests 2,129 1,255

Equity holders of the parent 18,899 12,816

21,028 14,071

4Q 2013Nmillion

3Q 2013Nmillion

2Q 2013Nmillion

1Q 2013Nmillion

Gross earnings 28,305 28,412 27,923 26,586

Net interest income 9,919 9,157 9,682 8,255

Interest income 16,395 15,808 15,716 14,666

Interest expense (6,476) (6,651) (6,034) (6,411)

Non-interest revenue 11,773 12,378 12,196 11,872

Net fee and commission revenue 9,639 8,280 8,013 6,968

Fee and commission revenue 9,776 8,506 8,024 7,016

Fee and commission expense (137) (226) (11) (48)

Trading revenue 2,047 4,037 3,924 4,887

Other revenue 87 61 259 17

Total income 21,692 21,535 21,878 20,127

Credit impairment charges (403) 104 (483) (1,885)

Income after credit impairment charges 21,289 21,639 21,395 18,242

Operating expenses (17,010) (14,426) (13,022) (13,490)

Staff costs (5,871) (6,183) (5,887) (5,910)

Other operating expenses (11,139) (8,243) (7,135) (7,580)

Profit before tax 4,279 7,213 8,373 4,752

Income tax 437 (1,341) (1,761) (1,179)

Profit for the period 4,716 5,872 6,612 3,573

Key performance indicators

Net interest margin (%) 5.2 4.2 4.8 3.8

Non-interest revenue to total income (%) 54.3 57.5 55.7 59.0

Cost-to-income ratio (%) 78.4 67.0 59.5 67.0

Return on equity (%) 20.4 26.3 28.8 16.4

Return on assets (%) 2.3 2.7 3.2 1.6

Non-performing loan to total loan (%) 4.4 4.5 4.6 5.3


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Summarised income statement – Bank

Change%

2013Nmillion

2012Nmillion

Gross earnings 12 87,350 77,732



Interest expense 4 (25,727) (24,818)


Net fees and commission revenue 6 11,688 10,978

Fees and commission revenue 8 12,083 11,164

Fees and commission expense >100 (395) (186)


Other revenue (94) 135 2,134

Total income 16 61,228 52,728


Income after credit impairment charges 28 58,561 45,833


Staff costs 12 (19,218) (17,164)

Other operating expenses 20 (29,869) (24,905)


Income tax (57) 655 1,536

Profit for the year 91 10,129 5,300

Profit attributable to:

Equity holders of the parent 91 10,129 5,300

Profit for the year 91 10,129 5,300

Statement of other comprehensive income - Bank

2013Nmillion

2012Nmillion

Profit for the year 10,129 5,300

Other comprehensive income:

Items that will never be reclassified to profit or loss - -

Items that are or may be reclassified subsequently to profit or loss:

Net change in fair value of available-for-sale financial assets 214 3,203

Realised fair value adjustments on available-for-sale financial assets reclassified to income statement

(76) 269

Income tax on other comprehensive income - -

Other comprehensive income for the year, net of tax 138 3,472

Total comprehensive income for the year 10,267 8,772

Total comprehensive income attributable to:

Non-controlling interests - -

Equity holders of the parent 10,267 8,772

10,267 8,772

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Statement of financial position – Group

Change%

2013Nmillion

2012Nmillion

Assets

Cash and cash equivalents 13 120,312 106,680

Trading assets (65) 40,711 114,877

Pledged assets 1 24,733 24,440

Derivative assets (11) 1,526 1,709

Financial investments 62 139,304 85,757

Loans and advances 32 383,927 290,915

Loans and advances to banks >100 94,180 24,571

Loans and advances to customers 9 289,747 266,344

Other assets (13) 19,829 22,771

Current tax and deferred tax assets 48 7,716 5,212

Property and equipment 2 24,988 24,458

Total assets 13 763,046 676,819

Equity and liabilities

Equity 14 97,634 85,651

Equity attributable to ordinary shareholders 13 94,313 83,341

Ordinary share capital - 5,000 5,000

Ordinary share premium - 65,450 65,450

Reserves 85 23,863 12,891

Non-controlling interest 44 3,321 2,310

Liabilities 13 665,412 591,168

Trading liabilities (24) 66,960 88,371

Derivative liabilities 41 1,085 772

Deposit and current accounts 23 468,038 382,051

Deposits from banks 94 51,686 26,632

Deposits from customers 17 416,352 355,419

Other borrowings (27) 48,764 66,873

Current and deferred tax liabilities 61 7,788 4,844

Subordiated debt >100 6,399 -

Other liabilities 38 66,378 48,257

Total equity and liabilities 13 763,046 676,819

Statement of financial position quarterly analysis - Group

4Q 2013 Nmillion

3Q 2013 Nmillion

2Q 2013 Nmillion

1Q 2013 Nmillion

Assets

Cash and cash equivalents 120,312 78,281 38,879 59,421

Trading assets 40,711 134,694 160,871 260,632

Pledged assets 24,733 23,239 22,265 22,745

Derivative assets 1,526 2,040 2,972 1,382

Financial investments 139,304 141,833 142,522 110,448

Loans and advances 383,927 427,498 375,188 351,592

Loans and advances to banks 94,180 138,703 94,351 82,391

Loans and advances to customers 289,747 288,795 280,837 269,201

Other assets 19,829 38,915 47,446 49,226

Current tax and deferred tax assets 7,716 5,677 5,146 5,565

Property and equipment 24,988 22,528 23,047 23,702

Total assets 763,046 874,705 818,336 884,713


Equity 97,634 93,534 93,831 89,805

Equity attributable to ordinary shareholders 94,313 90,917 91,759 87,129

Ordinary share capital 5,000 5,000 5,000 5,000

Ordinary share premium 65,450 65,450 65,450 65,450

Reserves 23,863 20,467 21,309 16,679

Non-controlling interest 3,321 2,617 2,072 2,676

Liabilities 665,412 781,171 724,505 794,908

Trading liabilities 66,960 92,137 81,567 158,407

Derivative liabilities 1,085 627 383 368

Deposit and current accounts 468,038 557,173 520,994 507,883

Deposits from banks 51,686 65,314 150,974 84,287

Deposits from customers 416,352 491,859 370,020 423,596

Other borrowings 48,764 51,108 49,139 52,080

Current and deferred tax liabilities 7,788 6,059 5,173 6,379

Subordinated debt 6,399 6,517 6,482 -

Other liabilities 66,378 67,550 60,767 69,791

Total equity and liabilities 763,046 874,705 818,336 884,713

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Statement of financial position – Bank Statements of financial position quarterly analysis – Bank

Change%

2013Nmillion

2012Nmillion

Assets

Cash and cash equivalents 7 109,385 99,840

Trading assets (66) 38,049 113,401

Pledged assets 1 24,733 24,440

Derivative assets (11) 1,526 1,709

Financial investments 72 123,457 71,629

Loans and advances 31 383,927 290,915

Loans and advances to banks >100 94,180 24,571

Loans and advances to customers 9 289,747 266,344

Other assets (24) 14,634 19,378

Current tax and deferred tax assets 44 7,441 5,169

Property and equipment (9) 21,948 23,989

Total assets 11 725,100 650,470


Equity 10 70,580 64,188

Equity attributable to ordinary shareholders 10 70,580 64,188

Ordinary share capital - 1,875 1,875

Ordinary share premium - 42,469 42,469

Reserves 32 26,236 19,844

Liabilities 12 654,520 586,282

Trading liabilities (24) 66,960 88,371

Derivative liabilities 41 1,085 772

Deposit and current accounts 22 470,718 386,135



Other borrowings (27) 48,764 66,873

Current tax liabilities 73 2,723 1,577

Subordinated debt >100 6,399 -

Other liabilities 36 57,871 42,554

Total equity and liabilities 11 725,100 650,470

4Q 2013 Nmillion

3Q 2013 Nmillion

2Q 2013 Nmillion

1Q 2013 Nmillion

Assets

Cash and cash equivalents 109,385 78,281 38,879 59,421

Trading assets 38,049 130,919 157,159 259,164

Pledged assets 24,733 23,239 22,265 22,745

Derivative assets 1,526 2,040 2,972 1,382

Financial investments 123,457 127,625 128,894 94,655

Loans and advances 383,927 421,633 374,200 341,416

Loans and advances to banks 94,180 132,838 93,363 72,215

Loans and advances to customers 289,747 288,795 280,837 269,201

Other assets 14,634 34,033 46,297 44,672

Current tax and deferred tax assets 7,441 5,597 5,085 5,499

Property and equipment 21,948 22,081 22,593 23,180

Total assets 725,100 845,448 798,344 852,134


Equity

Equity attributable to ordinary shareholders 70,580 70,050 64,843 66,745

Ordinary share capital 1,875 1,875 1,875 1,875

Ordinary share premium 42,469 42,469 42,469 42,469

Reserves 26,236 25,706 20,499 22,401

Liabilities 654,520 775,398 733,501 785,389

Trading liabilities 66,960 92,137 81,567 158,407

Derivative liabilities 1,085 627 383 368

Deposit and current accounts 470,718 561,215 534,889 512,536

Deposits from banks 51,686 67,850 150,974 84,287

Deposits from customers 419,032 493,365 383,915 428,249

Other borrowings 48,764 51,108 49,139 52,080

Current tax liabilities 2,723 2,486 2,060 2,253

Subordinated debt 6,399 6,517 6,482 -

Other liabilities 57,871 61,308 58,981 59,745

Total equity and liabilities 725,100 845,448 798,344 852,134

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Otherinformation




Ordinaryshare

capitalNmillion

Share premiumNmillion

Merger reserve

Nmillion

Statutory credit risk

reserveNmillion

Available -for-sale

revaluation reserve

Nmillion

Share-based payment

reserveNmillion

Other regulatory

reservesNmillion

Retained earnings Nmillion

Ordinary shareholders’

equityNmillion

Non-controlling

interest Nmillion

Totalequity

Nmillion

Balance at 1 January 2012 9,375 65,450 (19,123) - (3,982) 295 15,077 12,775 79,867 1,911 81,778

Total comprehensive (loss)/income for the period - - - - 3,914 - 1,343 7,525 12,782 1,255 14,037

Profit for the year - - - - - - 1,343 7,525 8,868 1,289 10,157

Other comprehensive (loss)/income after tax for the year - - - - 3,914 - - - 3,914 (34) 3,880

Net change in fair value on available-for-sale financial assets - - - - 3,645 - - - 3,645 (34) 3,611

Realised fair value adjustments on available-for-sale financial assets - - - - 269 - - - 269 - 269

Income tax on other comprehensive income - - - - - - - - - - -

Transactions with shareholders, recorded directly in equity (4,375) - - - - 67 - (5,000) (9,308) (856) (10,164)

Equity-settled share-based payment transactions - - - - - 67 - - 67 - 67

Shares cancelled on holding company restructuring (7,500) - - - - - - - (7,500) - (7,500)

Issue of shares on holding company restructuring 3,125 - - - - - - (3,125) - - -

Dividends paid to equity holders - - - - - - - (1,875) (1,875) (856) (2,731)

Balance at 31 December 2012 5,000 65,450 (19,123) - (68) 362 16,420 15,300 83,341 2,310 85,651

Balance at 1 January 2013 5,000 65,450 (19,123) - (68) 362 16,420 15,300 83,341 2,310 85,651

Total comprehensive income/(loss) for the year - - - - 289 - 2,439 16,171 18,899 2,129 21,028

Profit for the year - - - - - - 2,439 16,171 18,610 2,163 20,773

Other comprehensive income/(loss) after tax for the year - - - - 289 - - - 289 (34) 255

Net change in fair value on available-for-sale financial assets - - - - 442 - - - 442 (34) 408

Realised fair value adjustments on available-for-sale financial assets - - - - (153) - - - (153) - (153)

Income tax on other comprehensive income - - - - - - - - - - -

Statutory credit risk reserve - - - 769 - - - (769) - - -

Transactions with shareholders, recorded directly in equity - - - - - (89) - (7,838) (7,927) (1,118) (9,045)

Equity-settled share-based payment transactions - - - - - 73 - - 73 - 73

Transfer of vested portion of equity settled share based payment to retained earnings - - - - - (162) - 162 - - -

Dividends paid to equity holders - - - - - - - (8,000) (8,000) (1,118) (9,118)

Balance at 31 December 2013 5,000 65,450 (19,123) 769 221 273 18,859 22,864 94,313 3,321 97,634

Statement of changes in equity – Group

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Ordinary share capital

Nmillion

Share premiumNmillion

Statutory credit risk

reserveNmillion

Available -for-sale

revaluation reserve

Nmillion

Share-based payment

reserveNmillion

SMIEISreservesNmillion

Statutory reservesNmillion

Retained earnings Nmillion

Ordinary shareholders’

equityNmillion

Balance at 1 January 2012 9,375 47,469 - (3,601) 295 1,039 12,853 2,294 69,724

Total comprehensive (loss)/income for the year - - - 3,472 - - 795 4,505 8,772

Profit for the year - - - - - - 795 4,505 5,300

Other comprehensive (loss)/income after tax for the year - - - 3,472 - - - - 3,472

Net change in fair value on available-for-sale financial assets - - - 3,203 - - - - 3,203

Realised fair value adjustments on available-for-sale financial assets - - - 269 - - - - 269

Transactions with shareholders, recorded directly in equity (7,500) (5,000) - - 67 - - (1,875) (14,308)

Equity-settled share-based payment transactions - - - - 67 - - - 67

Shares cancelled on holding company restructuring (7,500) - - - - - - - (7,500)

Transfer to Holding Company as part of scheme of arrangement - (5,000) - - - - - - (5,000)

Dividends paid to equity holders - - - - - - - (1,875) (1,875)

Balance at 31 December 2012 1,875 42,469 - (129) 362 1,039 13,648 4,924 64,188

Balance at 1 January 2013 1,875 42,469 - (129) 362 1,039 13,648 4,924 64,188

Total comprehensive (loss)/income for the year - - - 138 - - 1,519 8,610 10,267

Profit for the year - - - - - - 1,519 8,610 10,129

Other comprehensive (loss)/income after tax for the year - - - 138 - - - - 138

Net change in fair value on available-for-sale financial assets - - - 214 - - - - 214

Realised fair value adjustments on available-for-sale financial assets - - - (76) - - - - (76)

Statutory credit risk reserve - - - - - - - (769) -

Transactions with shareholders, recorded directly in equity - - 769 - (96) - - (3,779) (3,875)

Equity-settled share-based payment transactions - - - - 63 - - - 63

Transfer of vested share options to retained earnings - - - - (159) - - 159 -

Dividends paid to equity holders - - - - - - - (3,938) (3,938)

Balance at 31 December 2013 1,875 42,469 769 9 266 1,039 15,167 8,986 70,580

Statement of changes in equity – Bank

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Statement of cash flows – Group

2013Nmillion

2012Nmillion

Net cash flows from operating activities 91,682 15,476

Cash flows used in operations 58,110 (13,691)

Profit before tax 24,617 11,412

Adjusted for:(30,285) (23,343)

Credit impairment charges on loans and advances 2,667 6,895

Depreciation of property and equipment 4,053 3,410

Dividends included in trading revenue and investment income (98) (112)

Equity-settled share-based payments 73 67

Interest expense 25,572 24,264

Interest income (62,585) (57,818)

Loss/(profit) on sale of property and equipment 33 (49)

Increase in income-earning assets (18,368) (102,005)

Increase in deposits and other liabilities 82,146 100,245

Dividends received 98 112

Interest paid (25,572) (24,264)

Interest received 62,585 57,818

Direct taxation paid (3,539) (4,499)

Net cash flows used in investing activities (57,908) 8,941

Capital expenditure on:

Property (27) (89)

Equipment, furniture and vehicles (4,715) (2,091)

Intangible assets - (30)

Proceeds from sale of property, equipment, furniture and vehicles 126 657

Proceeds from sale of intangible assets - 3,494

(Purchase)/sale of financial investment securities (53,292) 7,000

Investment in new subsidiary - Stanbic IBTC Capital Limited - -

Net cash flows used in financing activities (20,828) 9,024

Net increase/(decrease) in other borrowings (18,109) 19,255

Inflow received from Stanbic IBTC Bank PLC - -

Proceed from issue subordinated debt 6,399 -

Special dividend on share cancellation - (7,500)

Net dividends paid (9,118) (2,731)

Effect of exchange rate changes on cash and cash equivalents 686 (384)

Net increase in cash and cash equivalents 13,632 33,057

Cash and cash equivalents at beginning of the year 106,680 73,623

Cash and cash equivalents at end of the year 120,312 106,680

Statement of cash flows – Bank

2013Nmillion

2012Nmillion

Net cash flows from operating activities 78,054 10,116

Cash flows used in operations 43,770 (21,488)

Profit before tax 9,474 3,764

Adjusted for:(28,208) (23,572)

Credit impairment charges on loans and advances 2,667 6,895

Depreciation of property and equipment 3,863 3,231

Dividends included in trading revenue and investment income (34) (2,114)

Equity-settled share-based payments 63 67

Interest expense 25,727 24,818

Interest income (60,529) (56,421)

Loss/(profit) on sale of property and equipment 35 (48)

Increase in income-earning assets (15,380) (99,050)

Increase in deposits and other liabilities 77,884 97,370

Dividends received 34 2,114

Interest paid (25,727) (24,818)

Interest received 60,529 56,421

Direct taxation paid (552) (2,113)

Net cash flows used in investing activities (53,547) 13,093

Capital expenditure on:

Property (27) (90)

Equipment, furniture and vehicles (1,946) (1,735)

Intangible assets - (30)

Proceeds from sale of property, equipment, furniture and vehicles 116 494

(Purchase)/sale of financial investment securities (51,690) 10,960

Proceeds from sale of intangible assets - 3,494

Investment in new subsidiary - Stanbic IBTC Capital Limited - -

Net cash flows used in financing activities (15,648) 4,880

Net increase/(decrease) in other borrowings (18,109) 19,255

Proceed from issue of subordinated debt 6,399 -

Special dividend paid on share cancellation - (7,500)

Cash transferred to new holding company - (5,000)

Net dividends paid (3,938) (1,875)

Effect of exchange rate changes on cash and cash equivalents 686 (384)

Net increase in cash and cash equivalents 9,545 27,705

Cash and cash equivalents at beginning of the year 99,840 72,135

Cash and cash equivalents at end of the year 109,385 99,840

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CompanyNmillion

Stanbic IBTC Bank PLC

Nmillion

Stanbic IBTC Capital Ltd

Nmillion

Stanbic IBTC Pension Mgrs Ltd

Nmillion

Stanbic IBTC Asset Mgt Ltd

Nmillion

Stanbic IBTC Ventures Ltd

Nmillion

Stanbic IBTC Trustees Ltd

Nmillion

Stanbic IBTC Stockbroking Ltd

Nmillion

Consolidations/ Eliminations

Nmillion


GroupNmillion

Income statement

Net interest income - 34,802 - 1,444 484 54 20 209 - 37,013

Non interest revenue 9,137 26,426 3,006 14,295 2,293 150 124 1,836 (9,048) 48,219

Total income 9,137 61,228 3,006 15,739 2,777 204 144 2,045 (9,048) 85,232

Staff costs (456) (19,218) (996) (2,194) (630) - (76) (281) - (23,851)

Operating expenses (465) (29,869) (513) (2,771) (733) (10) (25) (439) 728 (34,097)

Credit impairment charges - (2,667) - - - - - - - (2,667)

Total expenses (921) (51,754) (1,509) (4,965) (1,363) (10) (101) (720) 728 (60,615)

Profit before tax 8,216 9,474 1,497 10,774 1,414 194 43 1,325 (8,320) 24,617

Tax 116 655 (290) (3,418) (413) (31) (15) (448) - (3,844)

Profit for the year 8,332 10,129 1,207 7,356 1,001 163 28 877 (8,320) 20,773

At 31 December 2012 1,053 5,300 931 4,630 1,331 80 46 782 (3,996) 10,157

Balance sheet

Total assets 75,401 725,100 6,603 18,060 4,270 2,351 243 3,913 (72,895) 763,046

Total liabilities 3,555 654,520 965 6,648 1,180 293 98 2,377 (4,224) 665,412

Equity and reserves 71,846 70,580 5,638 11,412 3,090 2,058 145 1,536 (68,671) 97,634

Return on equity 12 14 21 64 32 8 19 57 21

Return on assets 11.1 1.4 18.3 40.7 23.4 6.9 11.5 22.4 2.7

Cost-to-income ratio (%) 10.1 80.2 50.2 31.5 49.1 4.9 70.1 35.2 68.0

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Business unit review Market and Shareholderinformation

Business unit reviewSegmental structure for key business units


Personal and Business Banking

Corporate and Investment Banking

Wealth

29

31

32

38

45

Businessunit review

Segmental structure for key business units

Stanbic IBTC Group

Personal & Business Banking

Banking and other financial services to individual customers and small-to-medium-sized enterprises.

Corporate & Investment Banking Corporate investment banking services to larger corporates, financial institutions and international counterparties.

Wealth

Investment management in form of non-pension asset management, pension asset management and trusteeship and estate management.

What we offer:Pension fund administration Retirement savings Accounts. Gratuity schemes for companies.

Asset management Mutual funds. Portfolio management for High

Net worth individuals.

Trustee services Private trust. Corporate trust.

What we offer:Mortgage lending Residential accomodation loans

to mainly personal market customers.

Instalment sale and finance leases Finance of vehicles for

personal market customers. Finance of vehicles and

equipment in the business market.

Card Products Credit card facilities to

individuals and businesses (Credit card issuing).

Merchant transaction acquiring services (card acquiring).

Transactional products Comprehensive suite of

transactional, savings and investment products. This includes deposit taking activities, electronic banking and debit card facilities.

Lending products Lending products offered to

both personal and business markets.

Bancassurance Short to long term insurance

products to clients through third parties, and financial planning services to clients.

What we offer:Global markets Fixed income and currencies. Commodities. Equities.

Investment banking Advisory. Debt products. Structured finance. Equity capital markets. Debt capital markets. Structured trade and equity

finance.

Transactional products and services Investor services. Transactional banking. Trade finance.

Real estate and principal investment management Real estate finance. Investment in real estate. Principal investment

management.

Coverage and distribution Client facing sales activities

within CIB division.

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2013 2012

Total income N25.35 billion N23.53 billion

Total income increase 8% increase 48%

Total income contribution (%) 29.7 34.9

Cost-to-income ratio (%) 121.1 107.1

Credit loss ratio (%) 1.8 3.4

Gross loan growth (%) 27.1 12.9

Deposit growth (%) 20.6 47.5

2013 2012





Credit loss ratio (%) 0.2 1.9

Gross loan growth (%) (2.7) 0.7

Deposit growth (%) 14.1 8.7

2013 2012





Assets under management growth (%)

32.9 41.6

Retirement savings account growth (%)

15.8 12.3

Personal & Business Banking% of group gross income

Wealth% of group gross income

26%

Corporate & Investment Banking% of group gross income

57%

17%


Corporate & Investment Banking

Wealth

Change%

2013Nmillion

2012Nmillion

Change%

2013Nmillion

2012Nmillion

Change%

2013Nmillion

2012Nmillion

Gross earnings 16 34,033 29,257 21 58,534 48,551 33 18,660 14,052

Interest income 13 27,124 24,030 4 33,513 32,104 16 1,948 1,684

Interest expense 53 (8,682) (5,656) (9) (16,890) (18,608) - - -

Net interest income - 18,442 18,374 23 16,623 13,496 16 1,948 1,684

Non-interest revenue 34 6,909 5,154 51 24,599 16,334 35 16,712 12,368

Net fee and commission revenue

32 6,769 5,141 17 9,420 8,083 35 16,712 12,344

Trading revenue - - - 84 14,895 8,091 - - -

Other revenue >100 140 13 77 284 160 (100) - 24

Total income 8 25,351 23,528 38 41,222 29,830 33 18,660 14,052


(34) (2,344) (3,566) (90) (323) (3,329) - - -

Income after credit impairment charges

15 23,007 19,962 54 40,898 26,501 33 18,660 14,052

Operating expenses 22 (30,703) (25,258) 21 (20,844) (17,264) (3) (6,401) (6,581)

Staff costs 5 (13,366) (12,685) 58 (7,586) (4,791) 17 (2,899) (2,477)

Other operating expenses

38 (17,337) (12,573) 6 (13,258) (12,473) (15) (3,502) (4,104)

Profit/(Loss) before tax

45 (7,696) (5,296) >100 20,054 9,237 64 12,259 7,471

Tax (26) 1,689 2,286 >100 (1,660) (1,646) >100 (3,873) (1,895)

Profit/(Loss) after tax

100 (6,007) (3,010) >100 18,394 7,591 50 8,386 5,576


Segmental structure for key business units (continued)

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Personal and Business Banking (PBB) is the retail arm of group’s business. PBB provides services to customers in personal markets, high networth individuals (HNIs), commercial and small and medium scale enterprises (SME) business segments. It services customers by providing financial solutions through products and services available on various channels and platforms with a nationwide network of branches, ATMs and bank agents.

The focus of PBB is to provide appropriate, affordable, convenient and accessible financial solutions to customers, through passionate and customer focused employees nationwide. It offers the following products; vehicle and asset finance, unsecured and secured personal and business loans, Bancassurance, mortgage loans, a range of trade finance products and various current, savings and investment offerings.

PBB is divided into three business lines for efficient service delivery. The business lines are Personal Banking, Business Banking and High NetWorth individuals (HNI). Personal Banking focuses on banking services to individuals through lifecycle management. It provides solutions that meet individual need as these needs change. Business Banking focuses on two segments - small and medium scale enterprises and commercial, offering them business solutions to support their growing business needs, while HNI focuses on offering bespoke services to high networth individuals by handling their wealth portfolio needs both locally and abroad.

Financial performancePBB’s gross income grew 16% to N34.0 billion. The increase was driven majorly by non-interest revenue on the back of increased transaction volumes and activities from customers. Interest income increased 13% to N27.1 billion from N24.0 billion achieved in 2012, majorly from a 27% growth in loan book. Interest expense increased significantly to N8.7 billion (2012: N5.7 billion). The increase is attributable to the 21% growth in deposit from customers leading to higher funding cost. The growth in interest expense negatively impacted net interest income which was flat year-on-year at N18.4 billion. Net interest margin (a percentage of net interest income to total assets less derivative assets) declined to 6.5% from 7.1% recorded in 2012 as a result of increase in total assets.

The unit’s non-interest revenue, derived majorly from fees and commission, was up 34% to N6.9 billion from N5.2 billion in 2012, benefitting from increased card related fees, a result

Personal and Business Banking (PBB)

of our high ATM uptime, and growth in documentation and administration fees resulting from growing loan book. Total income increased moderately by 8% to N25.4 billion from N23.5 billion in 2012. This increase was however, muted by the growth in operating expenses.

Credit impairment witnessed an improvement on the back of provision releases on resolution of some loans previously classified and recoveries made from loans written off. Thus, credit impairment charges declined 34% to N2.3 billion from N3.6 billion recorded in 2012. Consequently, the reduction in credit impairment charges led to a reduction in the credit loss ratio to 1.8% from 3.4% in 2012.

PBB’s operating expenses grew 22% to N30.7 billion. This is driven by a 5% increase in staff costs and 38% increase in other operating expenses. The increase in staff cost is due to inflation adjustment to staff salaries and increase in headcount of sales staff for customer acquisition, while increase in other operating expenses was occassioned by growth in marketing and advertising expenses driven by launch of new products and promotion of brand awareness, increase deposit insurance expenses and AMCON sinking fund contribution.

The growth in operating expenses worsened PBB’s loss before and after tax. Loss before tax grew by 45% to N7.5 billion from N7.7 billion and loss after tax increased 100% to N6.0 billion from N3 billion recorded in 2012. Consequently, cost-to-income ratio deteriorated to 121% in 2013 from 107% recorded in 2012.

PBB recorded 27% growth in its loan book to close at N133.6 billion in 2013 from N105.1 billion achieved at the end of 2012. The growth is in line with our strategy to grow our retail business with focus on lending to SMEs and individuals with regular income. The unit’s non-performing loans to total loans ratio improved to 7.5% from 8.2% in 2012 despite the increase in loans and advances.

The unit’s deposit from customers grew 21% to N197.9 billion from N164.0 billion in recorded 2012. The growth is on the back of the continuous sales drive to attract low cost deposits leveraging on our branch network and other distribution channels. Expectedly, the deposit mix improved as the ratio of low cost deposits improved to 59% from 56% achieved at the end of 2012.

Total operating incomeCAGR (2010-2013): 29%


Change % 2013 2012

Net interest income Nmillion - 18,443 18,374

Non-interest revenue Nmillion 34 6,909 5,154

Credit impairment charges Nmillion (34) (2,344) (3,566)

Operating expenses Nmillion 22 (30,703) (25,258)

Loss before tax Nmillion 45 (7,696) (5,296)

Loss after tax Nmillion 100 (6,007) (3,010)


Gross loans & advances Nmillion 27 133,550 105,055

Deposit liabilities Nmillion 21 197,898 164,031

Key performance ratios

Cost-to-income % 121.1 107.1





Non-performing loans to total loans & advances ratio % 7.5 8.2

Other key business statistics

Business infrastructure

Branch network Number 2 180 177

ATMs Number 44 359 249

2010 2011 2012 2013

Nmillion

0

5,000

10,000

15,000

20,000

25,000

30,000

11,773

15,940

23,528

25,351

Net interest income and non-interest revenueCAGR (2010-2013): Net interest income: 36%

Non-interest revenue: 16%

Net interest income Non-interest revenue

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2010 2011 2012 2013

Nmillion

4,462

7,311

12,564

18,374 18,443

3,3765,154

6,909

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Quarterly analysis of performance

4Q 2013 3Q 2013 2Q 2013 1Q 2013

Net interest income Nmillion 5,563 4,651 4,392 3,837

Non-interest revenue Nmillion 1,753 1,818 1,679 1,659

Credit impairment charges Nmillion (503) (238) (136) (1,467)

Operating expenses Nmillion (8,910) (7,710) (6,709) (7,374)

Loss before tax Nmillion (2,098) (1,479) (774) (3,345)

Total assets Nmillion 284,810 320,017 304,975 285,961

Gross loans & advances Nmillion 133,550 119,505 111,734 109,533

Deposit liabilities Nmillion 197,898 233,330 180,578 182,477


Cost-to-income % 121.8 119.2 110.5 134.2

Non-interest revenue to total income % 24.0 28.1 27.7 30.2

Net interest margin % 7.7 5.8 5.8 5.4

Credit loss ratio % 1.5 0.2 0.5 5.9

Loan to deposit ratio % 67.5 51.2 61.9 60.0

Non-performing loans to total loans & advances ratio % 7.5 8.5 7.8 9.4


Business infrastructure

Branch network Number 180 180 179 178

ATMs Number 359 344 276 262

Business unit performance

Personal banking

Business banking HNI Total


Non interest revenue Nmillion 3,319 2,928 661 6,908

Credit impairment charges Nmillion (149) (2,203) 8 (2,344)


Loss before tax Nmillion (4,212) (3,874) 389 (7,696)

Loss after tax Nmillion (3,406) (3,157) 557 (6,007)




Cost-to-income ratio % 136.5 114.3 85.2 121.1

Non interest income to total income % 29.9 25.1 25.6 27.2

Credit loss ratio % 0.2 3.7 (0.1) 1.8


2013 2012

Business banking 46%

High networth individuals

10%

Personal banking

44%

Operating income by business unit

Factors impacting the results

Favourable Growth in fees and commissions income due to increased

transactional volumes and activities driven by growing customer relationships and expanded delivery channels.

Increase in interest income supported by growing loan book.

Continued growth in customer deposits, supported by growth in number of customers and the resultant higher average balance per deposit.

Reduction in impairment charges on the back of some resolved loans.

Adverse Increase in operating expenses as a result of growth in

marketing and advertising expenses, deposit and other insurance expenses and AMCON sinking fund contribution.

Increase in interest expense occasioned by the growth in deposit book and high interest rate environment.

Reduction in transaction fees as directed by Central Bank of Nigeria.

Business banking 59%

High networth individuals

11%

Personal banking

30%

Personal and Business Banking (continued)

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Loans & advances

Breakdown of loans and advances to customers Change%

2013Nmillion

2012Nmillion

Gross loans and advances 27 133,550 105,055

Mortgage loans (18) 8,667 10,571

Instalment sale and finance leases 6 18,084 17,080

Overdrafts 37 18,577 13,531

Term loans 38 88,223 63,873

Provisions 14 (8,608) (7,544)

Specific credit impairment 24 (6,879) (5,561)

Portfolio credit impairment (13) (1,729) (1,983)

Net loans and advances 28 124,942 97,511

Breakdown of non-performing loans

Overdrafts 55 1,005 647

Term loans 9 6,377 5,839

Instalment sale and finance leases 95 2,195 1,128

Mortgage loans (60) 418 1,052

Total 15 9,995 8,666

Mortgage lending Reduction in loan book due to conscious effort not to grow it given the level of interest rates in the market. Asset book improved as non-performing loans declined 60% to close at N418 million. Consequently, the products non-

performing loans to total loans ratio reduced to 4.8% from 10.0% in 2012. Continual improvement in customer risk profile.

Instalment sale and finance leases Leading bank in vehicle and asset finance business in Nigeria. Increase in vehicle and equipment sales in the personal and SME segments respectively, with positive impact on interest

income. Asset quality deteriorated as non-performing loans increased to N2.2 billion due to the testing operating environment which

resulted in customers’ inability to repay monthly rentals. Non-performing loans ratio worsened to 12.4% (2012: 6.6%).

Transactional and lending products Increase in overdrafts to small and medium scale business for working capital. Growth in term loans to business banking segment to support business expansion. Growth in non-interest revenue driven by increased transactional volumes and activities supported by continued growth in

customer account base. Deterioration in asset quality as non-performing loans increased to 7.0% (FY 2012: 4.7%) of total loans. Higher credit impairment charges largely due to growth in the unsecured lending book.

Change%

2013Nmillion

2012Nmillion

Current deposits 28 98,550 76,793

Savings deposits 26 19,097 15,116

Call deposits >100 8,863 1,799

Term deposits 2 71,388 70,323

Total deposits and current accounts 21 197,898 164,031

Deposit liabilities

Growth in deposit and current accounts as a result of increase in customer base and number of accounts. Improved deposit mix as lower priced deposits accounted for 59% of total deposits. Conscious effort to exit matured expensive term deposits and replace them with cheaper deposits as evidenced by 28%

growth in current account deposits, while term deposits increased marginally by 2%. Continue to leverage on our expanded delivery channels to increase customers and deposit base.

Area of focus in 2014

Continue to increase customer base across all business segments. Focus on customer relationship management to ensure good quality service. Improve operational efficiency through effective channel management. Continue to focus on lowering cost of operations.

Personal and Business Banking (continued)

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Corporate and Investment Banking (CIB)Corporate and Investment Banking provides wholesale banking services to large local and multinational corporates, institutional and public sector clients in strategic sectors of the economy. CIB offers financial solutions, which includes debt and equity advisory, structured and project finance, trade services, transactional banking and lending, global markets, custody and stockbroking. The unit has three distinct business sub-units through which it delivers client focused financial solutions. The sub-units are Investment banking, Global markets, and Transactional products and services.

Investment Banking provides financial advisory, tailored structuring and funding solutions, which include debt and equity capital offerings. The Global Markets deals in equities, fixed income, foreign exchange, money market and other hedging products to satisfy client requirements. Transactional product and services offers standardised or tailored transactional products and services including cash management, trade finance and custody solutions. A corporate banking team manages the corporate relationships with our clients.

The CIB business also has been involved in market development by committing its staff and resources to various regulatory and government initiatives. These include involvement in the power sector, financial markets and agricultural sector reforms. The power sector privatisation and privatisation of government-owned assets has presented opportunities for Stanbic IBTC to partner with the government and investing consortiums to embark on the phased reforms. This privatisation is allowing us to advise the government and present full-scale banking solutions to consortiums participating in it.

Financial performanceCIB’s gross income increased by 21% to N58.5 billion, supported by a significant growth in non-interest revenue and a modest increase in net interest income. Interest income increased 4% to N33.5 billion as a result of good yields in investment securities, generating 37% of interest income, while interest income from loans and advances accounted for 59% of interest income. Interest expense declined 9% to N16.9 billion in 2013. The decline is occasioned by the reduction of expensive term deposits in deposit mix. The decline in interest expense resulted in a 23% increase in net interest income to N16.6 billion (2012: N13.5 billion). Net interest margin (a percentage of net interest income to total assets less derivative assets) improved to 3.6% from 3.4% in 2012, due to a higher increase in net interest income than growth in total assets.

Non-interest revenue was up 51% to N24.6 billion, driven by a 17% growth in net fee and commission revenue and 84% growth in trading revenue. Net fee and commission closed at N9.3 billion, benefitting from increased transactional

volumes and activities, closure of good advisory mandates in our investment banking business, significant growth in assets under custody and significant growth in the capital market which impacted positively on the revenues of our capital market related businesses.

Trading revenue increased significantly to N14.9 billion, driven mainly by over 100% increase in income from interest rate trading and 19% growth in foreign exchange trading income. The increase was as a result of growth in client transaction volumes and activities, which accounted for about 40% of the foreign exchange trading income, as well as a well-positioned trading book which took advantage of market fluctuations in interest and exchange rates. Expectedly, total income grew 38% to N41.2 billion from N29.8 billion in 2012.

Credit impairment charges declined significantly by 90% to close at N323 million (2012: N3.3 billion). The decline was as a result of resolution of some previously classified loans. The efforts made at recovering some loan written off yielded positive results as some of the clients made payments. Consequently, the reduction in impairment charges positively impacted profitability and the credit loss ratio. The credit loss ratio of 0.2% achieved in 2013 is better than the 1.9% recorded in 2012.

CIB’s operating expenses was up 21% from N17.3 billion to N20.8 billion in 2013. The increase was due to 58% growth in staff cost and 6% increase in other operating costs. The significant increase in staff cost was due to the hire of some experienced staff to help drive the CIB business, inflation related salary increases and adjustment of salaries for non-managerial staff. Despite the increase in operating expenses, cost-to-income ratio improved to 50.6 % from 57.9% recorded in 2012. Profit before tax and profit after tax increased significantly by 112% and 142% respectively, to close at N20.1 billion and N18.4 billion.

CIB’s loans book declined 3% to close at N169.8 billion at the end of 2013 from N174.4 billion recorded in 2012. The decline was due to more challenging environment in the last half of 2013. This was also coupled with the combination of stringent risk appetite, increased distribution of assets and pay down of large facilities by some clients. The unit’s non-performing loans to total loans ratio improved to 2.0% from 3.3% in 2012, on the back of a 40% reduction in non-performing loans to N3.4 billion (2012: N5.7 billion).

Deposit liabilities increased to N218.5 billion. This represents a 14% increase from N191.4 billion in 2012. The increase is due to the continuous efforts to raise cheaper deposits, while exiting expensive term deposits. Expectedly, the deposit mix improved as the ratio of low cost deposits improved to 46% from 32% achieved in 2012.

The CIB continues to maintain leadership in its business segments as evident by some of the awards won in 2013:

Best Broker in Nigeria, EMEA Finance for the second year running.

Best Investment Bank in Nigeria, EMEA Finance Banking Award, 2013 for the second year running.

Best Bank in Africa, Euromoney Real Estate Award, 2013 for the second year running.

Best Custodian in Nigeria 2013 by Global Investor for the sixth year running.

The Most active Dealing Member Firm (Stockbroking) - The Nigerian Stock Exchange CEO Award 2013.

Best Sub-Custodian in Nigeria - Global Finance Magazine at SIBOS.

M&A Deal of the Year The Banker’s awards (2013): for the Tiger Brand’s acquisition of a 63 percent stake in Nigeria’s Dangote Flour Mills.

Structured Finance Deal of the Year (The Banker’s awards (2013) for the US$150-million Skye Bank Remittances Future Flow Securitisation in Nigeria.

Best Foreign Exchange Provider in Africa and Nigeria – Global Finance Awards 2013.

Best merger and acquisition (M&A) deal in Africa – EMEA Finance 2013.

Best follow-on funding in Africa - EMEA Finance 2013.

Total operating incomeCAGR (2010 - 2013): 12%

Net interest income and non-interest revenue CAGR (2010 - 2013): Net interest income: 10%

Non-interest revenue: 13%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2010 2011 2012 2013

Nmillion

29,597 29,281 29,830

41,222

0

5,000

10,000

15,000

20,000

25,000

30,000

2010 2011 2012 2013

Nmillion

17,031

14,27213,496

15,009 16,334

24,599

12,566

16,623

Net interest income Non-interest revenue

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Change % 2013 2012

Net interest income Nmillion 23 16,622 13,496


Credit impairment charges Nmillion (90) (323) (3,329)

Operating expenses Nmillion 21 (20,844) (17,264)

Profit before tax Nmillion >100 20,054 9,237


Gross loans & advances Nmillion (3) 169,756 174,418

Deposit liabilities Nmillion 14 218,454 191,388


Cost-to-income % 50.6 57.9





Non-performing loans to total loans & advances ratio % 2.0 3.3


Investor services

Assets under custody Nbillion 37 2,887 2,114

Quarterly analysis of performance

Business unit performance

4Q 2013 3Q 2013 2Q 2013 1Q 2013



Credit impairment charges Nmillion 100 342 (347) (418)


Profit before tax Nmillion 2,307 5,762 6,141 5,844





Cost-to-income % 72.6 50.3 43.1 42.2

Non-interest revenue to total income % 52.6 62.9 57.5 64.0

Net interest margin % 3.3 3.0 3.9 2.7

Credit loss ratio % (0.2) (0.8) 1.0 0.5


Non-performing loans to total loans & advances ratio % 2.0 1.9 2.6 3.4


Investor services

Assets under custody Nbillion 2,886.8 2,765.4 2,738.7 2,694.0

Global MarketsNmillion

Investment BankingNmillion

Transaction products &

servicesNmillion

TotalNmillion

Total income Nmillion 14,382 5,255 21,585 41,222

Credit impairment charges Nmillion - - (323) (323)



Gross loans & advances Nmillion - - 169,757 169,756

Deposit liabilities Nmillion - - 218,454 218,454



Credit loss ratio % - - 0.2 0.2

Corporate and Investment Banking (CIB) (continued)

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20122013

Favourable

Strong performance in interest rate and foreign exchange trading resulting in increased trading revenue.

Good yields on investment securities resulting in increased revenue.

Execution of more advisory mandates contributing positively to non-interest revenue.

Lower impairment charges driven by recoveries, provision releases and more performing loans.

Improvement in cost-to-income ratio as revenue grows at a faster rate than costs.

Improved performance of the capital market impacting positively on the revenue of our custody and stockbroking businesses.

Adverse

Marginal decline in loan book impacting negatively on interest income.

Strong competition for good quality credits.

Reduction in transaction fees by Central Bank.

Total operating income by business segment


Investment banking 24%

Global markets 34%

Transactional products and services

42%

Investment banking 33%

Global markets 24%


43%

Global markets

Growth in interest income from favourable yields on investment securities.

Increased trading revenue as a result of positive market movement in interest rate and volatility in foreign exchange market.

Increase in volumes and activities positively impacted revenues.

Improved performance of the capital market contributed positively to revenue of the stockbroking business.

Received license to establish Stanbic IBTC Bureau De Change Ltd.

Investment banking

Execution of more advisory mandates improved fees and commissions revenue.

Leverage on resources across the Standard Bank group to execute complex transactions in most sectors of the Nigerian economy and this provides an edge over other investment banking companies.


Increased revenue from custody business as capital market continues to improve and strong growth in assets under custody which closed the year at N2.9 trillion.

Growth in fees and commissions driven by increased transactional volumes and activities.

Deterioration in asset quality as non-performing loans ratio increased to 1.2% from 0.9% in 2012.


Breakdown of loans and advances to customers Change%

2013Nmillion

2012Nmillion

Gross loans and advances (3) 169,756 174,418

Instalment sale and finance lease (26) 9,303 12,598

Overdrafts (7) 14,949 16,085

Term loans (0) 145,504 145,735

Provisions (11) (4,952) (5,585)

Specific credit impairments (44) (2,094) (3,726)

Portfolio credit impairments 54 (2,858) (1,859)

Net loans and advances (2) 164,804 168,833

Breakdown of non-performing loans

Overdrafts 23 174 141

Term loans (34) 2,958 4,514

Instalment sale and finance leases (72) 280 1,019

Total non-performing loans (40) 3,412 5,674

Loans and advances

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Decline in loan portfolio due to combination of stringent risk appetite and pay down of some large facilities by some clients. Strong competition for good quality credits. Reduction in non-performing loans as a result of recoveries and resolution of previously classified loans.

Deposits liabilities

Breakdown of deposits from customersChange

%2013

Nmillion2012

Nmillion


Call deposits >100 44,064 20,377

Term deposits (32) 74,620 109,280


Increase in deposit liabilities with particular focus on cheaper deposits, while exiting expensive term deposits. Improved deposit mix as ratio of low cost deposit increases to 46%.


Increase depth of business with existing clients by providing a bouquet of structured products to meet their needs. Focused on delivering distinctive products and solutions in raising debt and equity for our clients using our group

and local expertise. Improve on operational process and cost efficiencies. Continue to leverage on the group’s expertise to execute complex structured products for clients.

Wealth

Wealth group focuses primarily on pension administration, private non-pension asset management as well as trusteeship and estate planning business. The pension administration is managed through Stanbic IBTC Pension Managers Limited, while the non-pension asset management is managed by Stanbic IBTC Asset Management Limited and trusteeship and estate management is managed by Stanbic IBTC Trustees Limited.

The wealth business model is primarily focused on assisting clients in investing in a variety of asset classes, including fixed income and equities markets to accumulate and preserve wealth.

Financial performanceWealth group achieved a 33% growth in gross income to N18.7 billion (2012:N14.1billion). This growth is attributable to increased income from investment in money market and non-interest revenue. Non-interest revenue, derived principally from fees and commissions and other income, was up 35% to N16.7 billion, on the back of a continued growth in pension clients and related funds under management. Pension assets under management increased 34% to close at N1.2 trillion,

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2010 2011 2012 2013

Nmillion

8,676

10,026

14,052

18,660

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2010 2011 2012 2013

Nmillion

2,899

3,896

5,576

8,386

Total operating incomeCAGR (2010 – 2013): 29%

Profit after taxCAGR (2010 – 2013): 42%

from N865.9 billion achieved at the end of 2012, while the number of Retirement Savings Accounts (RSAs) grew 16% to 1,220,777 from 1,054,525 recorded in 2012.

The non-pension assets under management grew 27% to N159 billion in 2013 (2012: N125 billion). Stanbic IBTC Asset Management launched a new non-interest Islamic compliant mutual fund, Stanbic IBTC Iman Fund, in 2013 to serve the investment needs of the Muslim faithful. The trustees business increased its client’s base to 2,314 private trusts and 21 corporate trusts in 2013 from 1,437 private trusts and 16 corporate trusts recorded in 2012.

Total income for 2013 was N18.7 billion, representing a 33% growth over N14.1 billion achieved in 2012. Operating expenses on the other hand, declined by 3% to N6.4 billion (2012:N6.6 billion). The decline in operating expenses is as a result of non-recurrence of a one-off technology induced operating expense in 2013. Consequently, cost-to-income ratio improved to 34.3% from 46.8% recorded in 2012. Profit before tax increased 64% to N12.3 billion, while profit after tax also increased by 50% to N8.4 billion.


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Change % 2013 2012

Net interest income Nmillion 16 1,948 1,684


Operating expenses Nmillion (3) (6,401) (6,581)

Profit before tax Nmillion 64 12,259 7,471

Profit after tax Nmillion 50 8,386 5,576


Assets under management Nmillion 33 1,316,690 990,881

Retirement savings accounts Number 16 1,220,777 1,054,525

Cost to income ratio % 34.3 46.8


Quarterly analysis performance

4Q 2013 3Q 2013 2Q 2013 1Q 2013

Net interest income Nmillion 534 455 447 512





Assets under management Nmillion 1,316,690 1,192,936 1,131,328 1,068,736

Retirement savings accounts Number 1,220,777 1,194,324 1,152,617 1,094,870

Cost to income ratio % 30.1 36.9 31.7 40.5

Business unit performance highlightsPension

managementAsset

management Trustees Total

Total income Nmillion 15,739 2,777 144 18,660

Operating expenses Nmillion (4,949) (1,352) (101) (6,401)

Profit before tax Nmillion 10,790 1,425 43 12,259

Profit after tax Nmillion 7,357 1,001 28 8,386

Assets under management Nmillion 1,158 159 - 1,317


0

200

400

600

800

1000

1200

1400

NbillionNbillion

2010 2011 2012 2013

488.8

91.4 93.6 125.0 159.0

606.2

865.9

1,157.7

2013 2012

Asset management 11.9%

Pension management 87.7%

Trustees 0.3%

Assets under management (AuM) and retirement savings account CAGR (2010-2013): Pension management (AuM): 33%

Asset management (AuM): 20%

Retirement savings accounts: 14%

Retirement savings account

Operating income by business segment

Asset management 14.4%

Pension management 84.9%

Trustees0.7%

Asset management Pension management

Wealth (continued)

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Business unit review


Favourable

Continued growth in pension clients and related funds under management.

Growth in interest income as a result of good yields on investment securities.

Continued improvement in operational efficiency resulting in lower operating expenses and cost-to-income ratio.

Bullish trends in the capital market positively affected revenues of the asset and pension management businesses in the wealth group.

Pension fund management

Market leaders in pension asset management business in terms of revenue, assets under management and number of clients.

Growth in assets under management of 34% to N1.2 trillion.

Crossed the N1 trillion assets under management mark during the year.

Retirement savings accounts grew 16% to over 1.2 million.

Asset management

Achieved 27% growth in asset under management to close at N159 billion.

Launched a new non-interest Islamic complaint mutual fund, Stanbic IBTC Iman Fund, during the year.

Maintained improved growth on the seven mutual funds being managed.

Continued to be one of the largest independent non-pension assets manager measured by value of assets under management, number and size of mutual funds and number of clients.

Trustee and estate management

Broke even in the first fifteen months of business.

Making in roads into corporate trusteeship.

Achieved 61% growth in number of clients.


Creation of an alternative investment desk and the launching of our first Exchange Traded Fund.

Exploration of online registration as an alternative to capture the internet savvy subset of prospective Retirement Savings Account (RSA) holders.

Increase visibility of the Trustees business by active collaboration with Banks that do not have associated Trustee Companies and introduction of Stanbic IBTC Trustees website.

Service quality and greater accessibility to clients by building a culture of service and being customer centric.

Income statement

analysis

Income statement analysisOverview of group income

Net interest income and margin analysis

Non-interest revenue


Operating expenses

Taxation

50

52

54

56

58

60

Wealth (continued)

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Income statement analysis Market and Shareholderinformation

2010 2011 2012 20130

80,000

100,000

60,000

40,000

20,000

120,000

54,296

63,377

91,860

111,226

Nmillion

10

2010 2011 2012 20130

50,000

60,000

40,000

30,000

20,000

10,000

70,000

0

50,000

60,000

40,000

30,000

20,000

10,000

70,000

29,954

35,428

62,585

Nmillion

5

24,34227,949

34,042

48,641

57,818

Overview of group income

Income overview

Gross revenue CAGR (2010-2013): 27%

Interest based revenue and non-interest based revenue CAGR (2010-2013): Interest based revenue: 37%

Non-interest based revenue: 18%

Interest based revenue/gross revenue

0

10,000

20,000

30,000

50,000

40,000

70,000

60,000

90,000

80,000

Nmillion

Interestincome

62,585

Interestexpense

25,572

Non-interestrevenue

48,219

Creditimpairment

charges

2,667

Operatingexpenses

57,948

Profit before

taxation

24,617

Taxes

3,844

Profit after

taxation

20,773

Interest based revenue

Non-interest based revenue

2010 2011 2012 20130

50,000

70,000

40,000

30,000

20,000

10,000

90,000

60,000

80,000

0

20.0%

25.0%

15.0%

10.0%

5.0%

30.0%

Nmillion

10,333

55,247

67,410

85,232

5

50,041

6,64310,157

20,773

2010 2011 2012 20130

20.0

25.0

15.0

10.0

5.0

30.0

20

16

22

26

5

14

21

17 18

%

Total income and profitability Income growth Vs. Cost growth

Profit after tax / total incomeTotal income Total income growth

Profit after tax Total cost growth

Income statement summary

Change%

2013Nmillion

2012Nmillion






Profit after tax >100 20,773 10,157

Total income contribution by business unit

Corporate & Investment Banking44%

Corporate & Investment Banking48%

Personal & Business Banking35%

Personal & Business Banking30%

Wealth21%

Wealth22%

2013 2012

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Otherinformation




2010 2011 2012 20130

20,000

35,000

30,000

35,000

15,000

10,000

5,000

40,000

0

4.0%

5.0%

3.0%

2.0%

1.0%

6.0%

Nmillion

10

18,981 27,642 33,554 37,013

5.3%4.9% 5.0% 4.9%

5.2%

4.4%

3.9%

4.5%

Net interest income and margin analysisNet interest income and net interest margin

CAGR(2010-2013): 25%

Composition of interest income

Change%

2013Nmillion

2012Nmillion

Interest income on investment securities 37 19,199 13,969

Interest income on placement with banks >100 3,152 352

Interest revenue on loans and advances (8) 40,234 43,497

Overdrafts (6) 5,387 5,709

Term loans (5) 28,011 29,602

Home loans (13) 1,832 2,108

Instalment sales and finance leases (18) 5,004 6,078


Interest expense 5 25,572 24,264

Savings 87 373 200

Current accounts 20 694 580

Call deposits (3) 2,741 2,816


Inter-bank deposits (15) 1,105 1,293

Borrowed funds 43 1,060 739


Breakdown of net interest income

2010 2011 2012 20130

60%

80%

40%

20%

100%

%

10

59% 83% 76% 67%

30%

15%23%

29%

11%2% 1% 4%

Net interest margin before impairment charges on total assets

Net interest margin after impairment charges on total assets

Net interest income Loans & advances Placements

Investment securities

Factors impacting net interest income

Net interest income by business unit

Change %

2013Nmillion

2012Nmillion

Personal & Business Banking - 18,443 18,374

Corporate & Investment Banking 23 16,622 13,496

Wealth 16 1,948 1,684


Favourable

Positive yields on investment securities.

Growing loan book contributing positively to interest income.

Moderate growth in funding cost aided by the significant growth in stable and low cost deposits.

Continued growth in retail business contribution to total loans and deposits.

Increased income from interbank activities as the bank is a net placer of funds in the market.

Adverse

High interest environment impacted loan growth with resultant effect on net interest income.

Decline in Corporate loan book impacted the growth in interest income negatively.

Increase in term deposits and borrowed funds in the funding book muted net interest income growth.

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2010 2011 2012 20130

20,000

30,000

40,000

50,000

10,000

60,000

0

70.0%

90.0%

50.0%

30.0%

10.0%

80.0%

60.0%

40.0%

20.0%

100.0%

Nmillion

10

29,594 27,606 33,856 48,219

59%

50% 50%

57%

2010 2011 2012 20130

60%

80%

40%

20%

100%

%

10

67% 63% 76% 68%

32%35%

24%31%

1% 2% 1% 1%

Non-interest revenue CAGR (2010-2013): 18%

Composition of non-interest revenue

Breakdown of non-interest revenue Change%

2013Nmillion

2012Nmillion

Net fee and commission revenue 29 32,900 25,568

Account transaction fees 1 3,543 3,495

Card based commission >100 1,460 518

Brokerage and financial advisory fees 56 5,028 3,215

Asset management fees 35 16,613 12,330

Custody transaction fees 64 2,508 1,525

Electronic banking 50 241 161

Foreign currency service fees 10 1,299 1,185

Documentation and administration fees (57) 1,005 2,364

Others 69 1,625 961

Fee and commission expense >100 (422) (186)


Foreign exchange 57 6,644 4,230

Credit (18) 1,329 1,617

Interest rates >100 6,911 2,241

Equity >100 11 3

Other revenue >100 424 197

Dividend income (13) 98 112

Other non-bank revenue >100 326 85

Total non-interest revenue 42 48,219 33,856

Non-interest revenue (NIR)

Percentage of total incomeNon-interest income Fees & commissions Other income

Trading income

Change %

2013Nmillion

2012Nmillion


Personal & Business Banking 34 6,909 5,154

Wealth 35 16,712 12,368


Non-interest income by business unit

Favourable

Increase in transactional volumes and activities supported by growing customer base and enlarged delivery channels, contributed positively to growth in account transaction fees.

Continued growth in assets under custody with attendant increase in fees and commission revenue.

Steady growth in assets under management and customer base within our wealth business.

Growth in capital market performance enhanced revenue of our stockbroking and custody businesses.

A well positioned trading book took advantage of volatility in foreign exchange market and interest rate movements to increase trading revenue.

Increased electronic banking revenue due to increased usage of internet banking platform.

Significant growth in card based fees as a result of increased availability of ATMs with lowest downtime in the industry.

Factors impacting non-interest revenue

Adverse

Growth in account transaction fees was moderated by the regulatory induced reduction in reducing transaction fees charged by banks.

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Change%

2013Nmillion

2012Nmillion

Specific credit impairment charges (64) 2,474 6,816

Provision for performing loans 48 745 504

Total impairment charges (56) 3,219 7,320

Recoveries 30 (552) (425)

Credit impairment charges (61) 2,667 6,895

Specific impairment

raised and releasedNmillion

General impairment

raised and releasedNmillion

RecoveriesNmillion

TotalNmillion

Mortgage lending (105) (107) (151) (363)

Instalment sales and finance lease 1,062 (172) (24) 866

Card 43 (15) - 28

Corporate lending (575) 998 (45) 378

Other loans and advance 2,049 41 (332) 1,758

Total impairment charges 2,474 745 (552) 2,667

Credit impairment charges and credit loss ratio

Movement in credit impairment charges

Credit impairments by product

(3,000)

(2,000)

(1,000)

0

1,000

3,000

2,000

5,000

4,000

7,000

6,000

0

1.0

0.5

2.0

1.5

3.0

2.5

Nmillion

(2,167)

2,358 2,381968

2011

6,391

504

2012

1,922745

20132010

Credit loss ratioCredit impairment charge on non-performing loans Credit impairment charge on performing loans

Change %

2013Nmillion

2012Nmillion

Corporate & Investment Banking (90) 323 3,329

Personal & Business Banking (34) 2,344 3,566

Credit impairment charges (61) 2,667 6,895

Credit impairment charges by business unit

Favourable

Lower impairment charges due to resolution of previously classified loans.

Improved collections capabilities.

Reduction in impairment charge within corporate banking as a result of improved debt servicing ability and portfolio provision releases.

Adverse

Increased credit portfolio provisioning due to loan growth.

Cautious outlook on provisioning due to the high interest environment.

Factors impacting impairment charges

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2010 2011 2012 20130

60

80

40

20

100

%

10

44%

12%

44%

43%

8%

49%

41%

7%

52%

41%

7%

52%

2010 2011 2012 20130

40,000

50,000

30,000

20,000

10,000

70,000

60,000

Nmillion

10

0

10

20

30

40

50

60

70

80

90

100

68.6%75.6%

72.8%68.0%

34,476 49,103 57,94841,792

Operating expenses

Operating expenses and cost-to-income ratio Composition of operation costs

Change%

2013Nmillion

2012Nmillion

Staff costs 20 23,851 19,953

Other operating expenses: 17 34,097 29,150

Communication 6 755 709

Depreciation 19 4,053 3,410

Information technology 12 3,517 3,143

Marketing and advertising 51 2,658 1,765

Premises and maintenance (18) 3,428 4,192

Security 29 1,169 903

Administration and Membership Fees >100 661 196

Training Expenses 47 680 462

Stationery & Printing (3) 774 797

AMCON Fund, NDIC deposit and other insurance 65 5,543 3,366

Travel and transportation 24 1,382 1,112

Professional fees (26) 4,467 6,057

Others 76 5,010 3,038

Total operating expenses 18 57,948 49,103

Breakdown of operating expenses

Cost-to-income ratioOperating expenses Staff costs Other operating expenses

Depreciation

Change %

2013Nmillion

2012Nmillion



Wealth (3) 6,401 6,581

Operating expenses 18 57,948 49,103

Operating expenses by business unit

Staff cost and headcount

Staff cost was impacted by:

Growth in number of sales agents required for customer acquisition. Number of sales agents increased by 41% in 2013.

Inflation adjusted salary increase for staff.

Market driven salary increase for non-managerial staff.

Other operating expenses

Other operating cost was impacted by:

Increase in deposit insurance cost due to growth in deposit book.

Increased marketing and advertising expenses to launch new products and improve brand awareness.

Increased contribution to AMCON sinking fund due to growth in total assets and off balance sheet items.

Increase in security expenses on cash-in-transit to secure movement of cash to various branches and offsite ATMs.

Increase in transport and travelling expenses as sales and business development activities increases.

Change %

2013Nmillion

2012Nmillion

Personal & Business Banking (11) 998 1,125

Corporate & Investment Banking (16) 152 181

Wealth - 336 335

Credit 20 84 70

Other support functions 7 507 473

Average number of employee (5) 2,077 2,184

Average headcount by business unit

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Balance sheetanalysis



Income statement analysis

Taxation

Taxation charge and effective tax rate

Income tax is payable on the higher of tax computed on taxable income or tax computed on dividend declared and paid. Due to the significant dividend declared in 2013, the group’s tax charge was based on the “dividend tax”. The tax computed on dividend paid was higher than the tax computed on taxable income, resulting in a significant increase in the effective tax rate.

Change %

2013 Nmillion

2012Nmillion

Direct taxation >100 3,844 1,255

Normal taxation 72 6,326 3,685

Deferred tax 2 (2,482) (2,430)

Total taxation >100 3,844 1,255

Breakdown of taxation

Taxation Effective tax rate

0

1,000

2,000

4,000

3,000

5,000

Nmillion

0%

5%

10%

15%

20%

25%

30%

35%

40%

2013201220112010

15.6%

25.5%

33.4%

11.0%

4,073 1,255 3,8443,333

Effective tax rateTaxation

Balance sheet

analysis

Balance sheet analysisOverview of group consolidated assets

Loans and advances


Asset quality



62

64

66

68

70

72

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Balance sheet analysis Market and Shareholderinformation

Overview of group consolidated assets

Asset mix Breakdown of total assets

Cash and loans to banksTrading & derivative assets

Loans & advances to customersFinancial investments

Other assetsOther assets

Trading, derivatives & pledged assetsPledged assets

Cash and loans to banks

Financial investmentsLoans & advances to customers

Property & equipmentProperty & equipment

Overview of group consolidated assets

0

100,000

200,000

300,000

500,000

400,000

700,000

600,000

900,000

800,000

Nmillion

Total Assets Cash and loans to bank

214,492

763,046

Trading and derivative assets

42,237

Pledged assets

24,733

Financial investments

139,304

Loans and advances to customers

289,747

Other assets

27,545

Intangible assets, property and equipment

24,988

0

10

20

30

40

50

60

70

80

90

100

%

2010 2011 2012 2013

8%4%

46%

7%5%

18%

11%

10

5%3%

46%

16%

4%

13%

14%

4%4%

39%

13%

4%

17%

19%

3%4%

38%

18%

3%6%

28%

0

100

200

300

400

500

600

700

800

900

2013 2012

Nmillion

266.3

141.0

131.3214.5

67.0

289.7

139.3

27.5

85.828.0

24.5

25.0

0

0.5

1.0

1.5

2.5

2.0

3.5

3.0

4.5

4.0

%

2010 2011 2012 2013

4.0%

2.1%1.9%

3.4%

2.7%

1.4% 1.6%

2.9%

Pre-tax return on avetage assets

After-tax return on average assets

Change %

2013Nmillion

2012Nmillion



Wealth 33 22,572 17,031

Total assets 13 763,046 676,819

Total assets by business unit

Return on assets

Pre-tax return on average assets

After-tax return on average assets

The balance sheet stood at N763.0 billion at the end of 2013. This represents a 13% growth over the N676.8 billion recorded in 2012. The balance sheet growth was aided by the increase in deposit liabilities which funded the growth in loans and advances and liquid assets. Net loans and advances to customers represented 38% of total assets.

The group’s after tax return on average assets improved to 2.9% from 1.6% recorded 2012. The improvement was occasioned by a higher growth rate in profit after tax than growth in average total assets.

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Loans and advances

Gross loans and advances CAGR (2010-2013): 18%

Composition of gross loans and advances

Breakdown of loans and advances to customers

Change%

2013Nmillion

2012Nmillion


Mortgage lending (18) 8,667 10,571

Instalment sales and finance leases (10) 27,012 29,972

Overdrafts 13 33,526 29,687

Term loans 12 234,101 209,243

Provisions 3 (13,559) (13,129)

Specific credit impairments (3) (8,972) (9,287)

Portfolio credit impairments 19 (4,587) (3,842)

Net loans and advances 9 289,747 266,344

0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

2010 2011 2012 2013

Nbillion

185.0

266.1 279.5

303.3

Term loans77%

Mortgage3%

Overdrafts11%

Instalment sales & finance leases

9%

Breakdown of loans and advances by business unit

PBBNmillion

CIBNmillion

TotalNmillion

Overdrafts 18,577 14,949 33,526

Term loans 88,223 145,504 233,726

Instalment sales and finance leases 18,084 9,303 27,387

Home loans 8,667 - 8,667

Total loans and advances 133,550 169,756 303,306

Loans and advances by sector

Sector Change %

2013Nmillion

2012Nmillion

Agriculture 23 12,703 10,361

Construction and real estate >100 15,294 5,921

Electricity & other utilities 48 10,671 7,223

Finance & Insurance (23) 13,017 16,905

Consumer credit 21 55,853 46,026

Manufacturing (18) 55,741 67,629

Oil, gas & mining 73 55,568 32,136

General commerce (9) 70,967 77,861

Transportation & communication 3 11,318 10,992

Government (51) 2,174 4,419


Loans and advances

Continued growth in loan portfolio driven majorly by retail banking business.

Strong competition for good quality credit in Corporate banking space.

Stringent credit risk appetite muted growth in loans and advances in corporate banking.

Potential increase in annuity income as medium to long term loans accounted for 77% of total loan portfolio.

Breakdown of loans and advances by industry

2013 2012

Manufacturing18%

Manufacturing24%

Construction & real estate5%

Construction & real estate2%

Agriculture4%

Agriculture4%

Consumer credit19%

Consumer credit16%

Finance & insurance4%

Finance & insurance6%

Electricity & other utilities 4%

Electricity & other utilities 3%

Transportation & communication

4%


4%

Government1%

Government2%

General commerce

23%

General commerce

28%

Oil, gas & mining

18%

Oil, gas & mining

11%

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NPL and coverage ratioNon-performing loans

Breakdown of non-performing loans and advances by business unit

Non-performing loans by product

Change%

2013Nmillion

2012Nmillion

Overdrafts 50 1,178 788

Term loans (10) 9,335 10,353

Instalment sales and finance leases 15 2,475 2,147

Home loans (60) 418 1,052

Total non-performing loans and advances (7) 13,407 14,340

PBBNmillion

CIBNmillion

TotalNmillion

Overdrafts 1,005 174 1,178

Term loans 6,377 2,958 9,335

Instalment sales and finance leases 2,195 280 2,475

Home loans 418 - 418

Total non-performing loans and advances 9,995 3,412 13,407

0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2010 2011 2012 2013

12.8

Nbillion %

10

7.0%

16.6

Non-performing loans

NPL/total loans

6.2% 14.3

5.1%

13.4

4.4%

02010 2011 2012 2013

10

NPL/Total loas Provision adequacy

7.0%6.2%

5.1%4.4%

46.0%

56.6%

91.6%

101.1%

NPL/total loans Provision adequacyNon-performing loans Non-performing loans

Non-performing loans by industry

Change %

2013Nmillion

2012Nmillion

Agriculture >100 2,359 310

Construction and real estate (39) 1,651 2,699

Mortgage (60) 418 1,052

Consumer credit >100 2,892 1,408

Manufacturing (61) 1,333 3,410

Oil, gas & mining 37 352 258

General commerce 8 3,356 3,093

Transportation & communication (50) 1,046 2,110

Total non-performing loans (19) 13,407 14,340

Non-performing loans by sector

Decline in non-performing loans due to resolution of some previously classified loans and recoveries made on loans written off.

Asset quality improved as the ratio of non-performing loans to total loans and advances improved to 4.4% from 5.1% recorded in 2012.

NPL coverage ratio improved to 101% from 92% in 2012.

2013 2012

Consumer credit21%

Consumer credit10%

Agriculture18%

Agriculture2%

Construction& real estate15%

Construction& real estate26%


8%


15%

Manufacturing10%

Manufacturing24%

General commerce

25%

General commerce

21%

Oil, gas & mining3%

Oil, gas & mining2%

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Asset quality

Performing loans Non-performing loans

Neither past due nor specifically impaired

Not specifically impaired

Specifically impaired loans

Total Loans and

Advances to

Customers

Balance sheet

impairments for

performing loans

Normal monitoring

Close monitoring

Early arrears

Non- performing

Sub-standard Doubtful Loss Total

Securities and expected recoveries on

specifically impaired

loans

Net after securities

and expected recoveries on

specifically impaired

loans

Balance sheet impairments for non-per-

forming specifically

impaired loans

Gross specific impairment

coverage

Total non-perform-

ing loans

Non- performing

loans

Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion Nmillion % Nmillion %


133,551 1,728 86,998 6,852 29,703 - 3,730 3,027 3,238 9,995 3,116 6,879 6,879 69 9,995 7.5

Mortgage loans 8,667 68 6,709 - 1 539 - 86 60 272 418 111 307 307 73 418 4.8

Instalment sale and finance leases

18,084 447 7,445 2246 6,198 - 545 1,383 267 2,195 839 1,356 1,356 62 2,195 12.1

Card debtors 850 3 587 - 186 - 21 55 - 76 7 69 69 91 76 8.9

Other loans and advances

105,950 1,210 72,257 4606 21,780 - 3,078 1,529 2,699 7,306 2,159 5,147 5,147 70 7,306 6.9

Corporate & Investment Banking

169,756 2,858 150,563 - - - 1,051 293 2,068 3,412 1,318 2,094 2,094 61 3,412 2.0

Corporate loans 169,756 2,858 150,563 15,781 - - 1,051 293 2,068 3,412 1,318 2,094 2,094 61 3,412 2.0

Gross loans and advances

303,307 4,586 237,561 6,852 29,703 - 4,781 3,320 5,306 13,407 4,434 8,973 8,973 67 13,407 4.4

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Deposit liabilities CAGR (2010 - 2013): 30%

Deposit mix

Breakdown of total deposits Change%

2013Nmillion

2012Nmillion




Current accounts 43 198,320 138,524

Call deposits >100 52,927 22,176

Savings accounts 26 19,097 15,116

Term deposits (22) 130,940 167,101

Negotiable certificate of deposits 21 15,068 12,502


2010 2011 2012 20130

350.0

400.0

300.0

250.0

200.0

150.0

100.0

50.0

450.0

186.1

287.2

355.4

416.4

Nbillion

10

2010 2011 2012 20130%

80%

60%

40%

20%

100%

10

43%

5%7%

45%

36%

10%

4%

0% 0%

50%

39%

6%4%

47%

4%

47%

13%

5%

32%

4%

Term deposits

Call deposits

Negotiable certificate of deposits

Savings accounts

Current accounts

Deposit liabilities

Increase in low cost deposits leading to reduction in cost of funds and improvement in the deposit mix.

Demand deposits increased 43% as we continue to leverage on our growing customer relationships supported by our enlarged delivery channels.

Increased contribution to total deposits from the retail banking business.

Increase in number of customers aided low cost deposit growth.

Shift of focus from expensive term deposits to low cost deposits aided funding cost positively.

Deposit breakdown by business unit Change%

2013Nmillion

2012Nmillion



Savings deposits 26 19,097 15,116

Call deposits >100 8,863 1,799




Call deposits >100 44,064 20,377

Term deposits (32) 74,620 109,280


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Balance sheet funding

Funding mix

Assets Liabilities

2013 2012

Equity 13%

Borrowings 6%

Other liabilities

10%

Trading liabilities

9%

Deposits from banks

7%Deposits from customers 55%

Equity 12%

Borrowings 10%

Other liabilities

8%

Trading liabilities

13%

Deposits from banks

4% Deposits from customers 53%

Assets Liabilities

20

25

9828

81139

49

290

52

67416

214

68

Property & equipment and intangible assets

EquityOther assets

Other liabilitiesFinancial investments

Other borrowings

Loans & advances to customers

Deposits from banks

Trading, derivatives and pledged assets

Deposits from customers

Cash and loans to banks

Trading & derivative liabilities

Nbillion

Liquidity market overview

The group’s liquidity risk management framework is designed to measure and manage the liquidity position at various levels of consolidation so that payment obligations could be met at all times, under both normal and considerably stressed conditions. Under the delegated authority of the board, the Asset and Liability Committee (ALCO) sets liquidity risk policies in accordance with regulatory requirements and international best practice.

The CBN continued its monetary tightening retaining monetary policy rate, cash reserve ratio on private sector deposits and liquidity ratio at 12%, 12% and 30% respectively, while increasing cash reserve ratio on public sector deposits to 50%.

The group raised US$40 million in Tier II loan to support its foreign currency based lending.

Liquidity ratio computation Group2013

Nmillion

Bank2013

Nmillion

Group2012

Nmillion

Bank2012

Nmillion

Specified liquid assets

Cash 13,814 12,965 12,306 12,398

Balance with CBN (net DR/CR balance, and excluding CRR) 98,427 83,922 20,197 16,246

Net balance held with banks within Nigeria 9 9 9 5,018

Treasury bills 168,445 171,509 65,995 65,995

Net money at call with other banks - - 2,551 2,551

Federal Government of Nigeria bonds 9,357 5,186 55,219 55,219

Stabilisation securities 1,085 1,085 5,395 5,395

Total Asset (A) 291,138 274,677 161,672 162,822

Current liabilities

Adjusted deposit liabilities 326,888 312,695 324,549 357,474

Net money at call held for other banks - - - -

Total liabilities (B) 326,888 312,695 324,549 357,474

Liquidity ratio A/B*100 89.1% 87.8% 49.8% 45.5%

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Limits are set to restrict the cumulative liquidity mismatch between expected inflows and outflows of funds in different time buckets.

Behavioural profiling is applied to assets, liabilities and off balance sheet commitments with an indeterminable maturity or draw down period, as well as to certain liquid assets.

Behavioural profiling in relation to liabilities, assigns probable maturities based on actual customer behaviour. This process is used to identify additional sources of structural liquidity in the form of liquid assets and core deposits, such as current and savings accounts that although repayable on demand or at short notice, exhibit stable behaviour.

The behaviourally adjusted cumulative liquidity mismatch remains well within liquidity risk appetite.

Behavioural profiling, in respect of assets, is used to identify additional sources of structural liquidity in the form of liquid assets or assets that could be used to generate liquidity within a specific time frame, and certain contractually demand assets are profiled in order to recognize inflow rates in realistic amounts.

Structural liquidity requirements

Group unencumbered surplus liquidity Change%

2013Nmillion

2012Nmillion

Marketable assets 34 174,094 130,077

Short-term foreign currency placements (84) 6,139 38,420

Total unencumbered marketable assets 7 180,234 168,498

Other readily accessible liquidity >100 84,997 5,001

Total unencumbered surplus liquidity 53 265,231 173,499

Funding and liquidity (continued)

Liquidity buffer

Portfolios of highly liquid marketable securities, over and above prudential requirements, are maintained as protection against unexpected disruptions in cash flows. These holdings are considered in the context of internal stress tests and discounts assumed on certain securities in a possible sale.

The amount of contingent liquidity required the group’s liquidity risk standard is influenced by the nature of the depositor, and the contractual terms of the deposit as well as the prevailing and anticipated regulation.

The surplus liquidity holdings are managed taking into account liquidity stress testing results and CBN regulation. The unencumbered surplus liquidity amounted to N265.2 billion as at 31 December 2013.

Diversified funding base

The group’s funding strategy is derived from the projected balance sheet growth which includes consideration of Personal & Business Banking and Corporate & Investment Banking asset classes, capital requirements, the maturity profile of existing funding and anticipated changes in the retail deposit base. Funding requirements and initiatives are assessed in accordance with the group asset and liability committee requirements for diversification, tenor and currency exposure, as well as the availability and pricing of alternative liquidity sources.

Concentration risk limits are used within the group to ensure that funding diversification is maintained across products, sectors, geographic regions and counterparties.

Depositor concentrations 2013%

2012%

Single obligor 4.3 3.7

Top 10 depositors 20.3 20.8

Primary sources of funding are in the form of deposits across a spectrum of retail and wholesale clients, as well as long term capital market funding. Deposit from customers funded 55% of total assets in 2013.

Medium to long term funding form Development and Financial institutions form part of our diversified funding base. Funding from this source accounted for 6% of total liabilities and decreased to N48.8 billion from N66.9 billion at the end of 2012.

Liquidity stress testing and scenario analysis

Anticipated on-and-off balance sheet cash flows 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.

The outcomes of the stress scenarios are considered by asset and liability management committees on at least a monthly basis, and inform minimum liquid asset buffer requirements and contingency funding plans.

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Capitalmanagement


Capital management Market and Shareholderinformation

Capital managementReturn on ordinary equity

Risk weighted assets

77

78

Capitalmanagement

Return on ordinary equity

Shareholders’ equity Average shareholders’ fund and return on equity

Breakdown of return on average equity by business unit

Shareholders’ equity increased by 13% to close at N94.3 billion in 2013 (2012: N83.3 billion). The pre-tax and post-tax return on average equity increased significantly to 27.7% and 21.0% respectively. This performance is better than pre-tax return on average equity of 14.4% and post-tax return on equity of 10.9% achieved in 2012. This increased performance is as a result of over 100 percent growth in profit before and after tax.

Average equity 2013

Nmillion

Pre tax ROaE 2013

%

Post tax ROaE2013

%

Average equity2012

Nmillion

Pre tax ROaE2012

%

Post tax ROaE2012

%

Personal & Business Banking 25,478 (30.2) (23.6) 25,297 (20.7) (11.9)

Coporate & Investment Banking 50,481 39.7 36.4 46,514 20.4 16.3

Wealth 12,868 95.3 64.1 9,793 76.3 43.8

Stanbic IBTC Group 88,827 27.7 21.0 81,604 14.4 10.9

2010 2011 2012 20130

70.0

80.0

60.0

50.0

40.0

30.0

20.0

10.0

90.0

100.0

85.679.9

83.3

94.3

Nbillion

10

Shareholders’ fund (average) ROaE (PAT) ROaE (PBT)Shareholders’ fund

0 0

10,000

20,000

40,000

30,000

50,000

70,000

60,000

80,000

90,000

5.0

10.0

20.0

15.0

25.0

30.0

%Nmillion

2010 2011 2012 2013

10

NPL/Total loas Provision adequacy

84,799 82,735 81,604 88,827

12.2%

14.8%

14.4%

27.7%

6.8%

10.6%

10.9%

21.0%

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Otherinformation

Market and shareholder information


Capital management

Tier 1 capital adequacy

Total capital adequacy Statutory minimum

Stanbic optimum capital target

Risk - weighted assets

Total assets and risk weighted assets Capital adequacy ratio

The group maintained healthy capital base in 2013. Tier 1 and total capital adequacy ratio of 22.0% and 24.5% respectively are significantly higher than the statutory minimum of 10%. The group’s capital is deemed adequate to support business risks and contingencies and will enable us to take advantage of opportunities in the Nigerian market.

Capital adequacy computation - group Group2013

Nmillion

Bank 2013

Nmillion

Group 2012

Nmillion

Bank2012

Nmillion

Tier I capital 86,376 63,130 78,197 59,148

Tier II capital 9,941 6,408 2,242 (129)

Total qualifying capital 96,317 69,538 80,439 59,019

Risk weighted assets 392,888 380,437 377,992 362,855

Capital adequacy

Tier I 22.0% 16.6% 20.7% 16.3%

Tier II 2.5% 1.7% 0.6% 0.0%

Total 24.5% 18.3% 21.3% 16.3%

0

700,000

800,000

600,000

500,000

400,000

300,000

200,000

100,000

900,000

Nmillion

5

0

10

20

30

40

50

60

70

80

%

2010 2011 2012 2013

Total assets 387,218 554,507 676,819 763,046

Risk-weighted assets

266,764 371,444 377,992 392,888

% risk weighted assets to total assets

69.4% 67.0% 55.8% 51.5%

2010 2011 2012 20130

25.0

30.0

20.0

15.0

10.0

5.0

35.0

%

31.4 32.2

19.420.8 20.7 21.3 22.0

24.5

5

Market and shareholder informationMarket capitalisation and price-to-book ratio



80

80

81

Market and shareholderinformation

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Market & Shareholderinformation

Otherinformation




2010 2011 2012 20130

200

150

100

50

250

172.5155.6

110.0

213.5

Nbillion

10

Market capitalisation and price-to-book ratioMarket capitalisation Net asset value per share and price-to-book

In 2013, Stanbic’s share price outperformed both the NSE All share Index and the Banking Index (BI) by appreciating 94%, while NSE ASI and BI appreciated by 47% and 28% respectively. The group’s price-to-book ratio of 2.2 times is a testament of investors’ confidence in the group’s ability to deliver value and higher returns. The group’s market capitalisation increased 94% to close at N213.5 billion in 2013 from N110.0 billion in 2012, and ranked 12th most capitalised stock amongst the 190 listed equities on the Nigerian Stock Exchange.

Change % 2013 2012

Number of shares at the end of the year thousands - 10,000,000 10,000,000

Net asset value Nmillion 13 94,313 83,341

Net asset value per share kobo 14 943 833

Share price at the end of the year kobo 94 2,135 1,100

Market capitalisation at end of the year Nbillion 94 213.5 110.0

Price-to-book at end of the year times 74 2.3 1.3

2010 2011 2012 20130

800

900

700

600

500

400

300

200

100

1,000

0.0

2.0

1.5

1.0

0.5

2.5

kobo Times

10

464

2.0

436

1.9

857

1.3

976

2.2

Net asset value per share Price-to-book



The shareholding pattern of the Group as at 31 December 2013

Period ended Total amount paidNmillion

Dividend paid per shareKobo

December 31, 2012 1,000 10

June 30, 2013 7,000 70

Share range No. of shareholders

% shareholders

No. of holding

% holdings

1 - 1,000 39,092 39.1 21,347,568 0.2

1001 - 5,000 38,649 38.7 80,445,549 0.8

5,001 - 10,000 10,535 10.5 65,466,095 0.6

10,001 - 50,000 8,965 9.0 170,084,878 1.7

50,001 - 100,000 1,348 1.3 84,696,422 0.8

100,001 - 500,000 1,015 1.0 185,938,301 1.9

500,001 - 1,000,000 136 0.1 86,785,521 0.9

1,000,001 - 5,000,000 91 0.1 187,051,640 1.9

5,000,001 - 10,000,000 23 0.0 169,709,213 1.7

10,000,001 - 50,000,000 40 0.0 857,026,475 8.6

50,000,001 - 10,000,000,000 24 0.0 8,091,448,338 80.9

Grand Total 99,918 100.0 10,000,000,000 100.0

Significant shareholding of 5% and above

Shareholder

No. of shares held

31 December 2013

Percentage shareholding31 December

2013

No. of shares held

31 December 2012

Percentageshareholding

31 December2012

Stanbic Africa Holdings Limited 5,316,268,150 53.2 5,315,267,979 53.2

First Century International Limited 747,089,076 7.5 747,089,076 7.5

Share capital history

Authorised (N000) Issued and fully paid up

Year increase cumulative increase cumulative Consideration

2012 - 500 - 125 share exchange

2012 9,999,500 10,000,000 10,000,000 10,000,000 share exchange

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Contact details

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Otherinformation

Financial and other definitions

After tax return on average equity (ROaE) (%) Profit after tax as a percentage of annual average ordinary shareholders’ funds.

Basic earnings per ordinary share (EPS) (kobo) Earnings attributable to ordinary shareholders divided by the ordinary shares in issue.

CAGR (%) Compound annual growth rate.

Cost-to-income ratio (%) Operating expenses as a percentage of total income.

Credit loss ratio (%) Total impairment charges on loans and advances per the income statement as a percentage of gross loans and advances.

Dividend cover (times) Earnings per share divided by dividend per share.

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

Gross impairment coverage (%) Non-performing loan impairments as a percentage of gross non-performing loans.

Net asset value (Nmillion) Equity attributable to ordinary shareholders.

Net asset value per share (kobo) Net asset value divided by the number of ordinary shares in issue at the end of the period.

Net interest margin (%) Net interest income as a percentage of average of total assets less derivative assets.

Non-interest revenue to total income (%) Non/interest revenue as a percentage of total income.

Non-performing loans ratio (%) Total non-performing loans as a percentage of gross loans and advances.

Price-to-book ratio (times) Market capitalization divided by net asset value.

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

Profit for the period (Nmillion) Income statement profit attributable to ordinary shareholders and minorities shareholders for the period.

Provision of performing loans (Nmillion) Provisions for incurred credit losses inherent in the performing loan book.

Provisions for non-performing loans (Nmillion) Provisions for specific identified credit losses.

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Other information Market and Shareholderinformation

Contact details

Registered address:

Stanbic IBTC Holdings PLCI.B.T.C. PlaceWalter Carrington CrescentP. O. Box 71707Victoria IslandLagosNigeria

E: [email protected]

Henry AnahHead: Investor Relations

T: +234 1 4228742 E: [email protected]

Arthur Oginga Chief Financial Officer

T: +234 1 4228746E: [email protected]

Chidi OkezieCompany secretary

T: +234 1 4228695E: [email protected]

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

Total capital adequacy ratio (%) Regulatory capital divided by risk-weighted assets.

Turnover in shares traded (%) Number of shares traded during the period as a percentage of the weighted average number of shares.

Weighted average number of share (number) The weighted average number of ordinary shares in issue during the period as recorded on the NSE.


Other information

Stanbic IBTC Holdings PLC RC1018051

www.stanbicibtc.comDesigned and produced by Creative Interpartners, LondonEmail: [email protected]

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stanbic ibtc holdings plc - the vault 5 group results in brie business unit revie income statement...

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