1

Investor/Analyst Presentation

FY 2015

2

1. Overview

2. Operating environment

3. Funding and liquidity

4. Credit risk and asset quality

5. Profitability and capital

6. Outlook

Agenda

Overview

3

Overview

4

Sterling Bank at a glance

Branch Network

187Branches

840ATMs

>1,600,000Customer base

>2,600Professional Employees

2010-2012

National Commercial Banking License

BBB+A2

B2 Long term rating

Long term rating

Short term rating

BBB Long term rating

A3 Short term rating

Retail, Commercial & Corporate Clients

Business Focus

5

Milestone

Our Heritage

Sterling Bank Plc was born out of a merger of five other Nigerian banks in a bid to achieve compliance with the regulatory requirement mandating a N25 billion minimum capital base for Nigerian banks.

Magnum

Trust Bank

NAL Bank

Plc

Trust Bank

of Africa Ltd.

Indo-Nigeria

Merchant Bank

NBM Bank Ltd.

These banks were predominantly investment banks with little retail footprint. Given this fact, the business of commercial banking was somewhat new to Sterling Bank with challenges

Low Branch

Network

Weak

Customer Base

Low Brand

Visibility

Deposit Book

Concentration

Low Capital

Base

The result of the low retail penetration was a high cost of funds which impaired growth and profitability.

We navigated through

these years to:

Establish a foothold for

better scale in the market

Integrate our

people following from the M&A

Create a distinct

brand identity.

Sustainable solutions

to reposition usas a key

competitor

Beef up capital to enable us achieve

better scale.

Grow our retail footprint by investing in technology and service channel network growth i.e. branches, ATMs, internet and mobile banking, network upgrade and other technologyinfrastructure.

Adopt social media to deepen customer

interactions

Enhance brand visibility for both our corporate

and retail clients

Improve our technological capabilities to

enable us segment and create uniqueexperiences for our customers

Fund deposit book

predominantly from the retail

segment

Invest in our people by

encouraging a learning and Knowledge

driven organization

2006 – 2010 The Birthing Process

6

Milestone

In furtherance of the retail growth strategy, in 2011, the Bank consummated a business combination with Equitorial Trust Bank. This was to position the enlarged entity to benefit from the significant commercial opportunities in the emerging banking landscape and the Nigerian economy in general.

We re-launched our brand promise in 2009 with 'the one-customer bank' slogan

2011

Our capital programmeraising plan commenced in 2013 at which point we had over N50bn.

2015Capital Base

2013Capital Base

As at the end of 2015, our capital base was about N100bn allowing us make the necessary investments for our growth plans

Received PCIDSS Certificationfor all our cards

Over the last five years we have received ISO certifications for our information assets

N68b

N100b Our capital adequacy ratio is currently

above the regulatory benchmark of 10%.

17.5%

Our bank as well as its management have received local and global awards on innovation, leadership and service to the community.

We have publicly declared our ratings from internationally acclaimed rating agencies Moody's, Lafferty and GCR who have given external and independent validation of our journey and vision.

Although still navigating the tides in our current regulatory environment, we have a resilient model as we have been since the first merger.

Our journey has been eventful and fulfilling. As an institution we are committed to being the financial institution of choice and continue

to navigate our way to deliver on this promise.

2011 – 2015 The Growth Years

Our Strategy F Our Strategy

- Build a sustainable and systemically important bank

Manage risk, balance sheet and capital to deliver superior returns to shareholders.

Create a learning organization to optimize productivity.

Optimize operations and technology to drive better control, manage costs, complexity and risk

Deliver excellent customer service and drive efficiency and sales through robust

digital and payments capability

Awards and Recognition

Barbara Abike Epperson

AwardCertificate for Excellence in CSR

EFMA/Accenture Award Most Disruptive Technology/Innovation

Nigeria Technology Award Best Bank Website of the Year

Lafferty Bank Quality

Ratings

Top 10 in the world, top 3 in Africa, and 1st in Nigeria among 100 banks rated worldwide

The Banker Africa Award Most Innovative Bank

The Banker Africa Award Best Corporate Governance Bank

8

9

Performance Highlights

Management Metrics

NPL ratio >3%Non-performing loans ratio of 4.8% (2014: 3.1%) X(Due to the challenging operating conditions)

Net loans growth >20%Net loans grew -8.8% to N338.726 billion (2014: N321.246bn) X(Due to the repayment of State Government loans (Adjusted growth,14.4%)

Deposit growth >25%Deposits grew -9.9% to N590.889 billion (2014: N655.9bn) X(Due to the implementation of the Treasury Single Account (Adjusted growth, 12.3%)

Dividend per share = 6k

(Dividend policy)Dividend per share of 9 kobo (2014: 6 kobo) √

Guidance Performance

Revenue growth Earnings rose 6.3% to N113.2bn (2014: N103.6bn) X (Due to impact of regulatory and macroeconomic headwinds from decline in global commodity prices )

Cost-to-income <75% Cost-to-income of 72.2% (2014: 73.6%) √

Pre-tax Return on average

Equity (ROAE) >20%

Pre Tax Return on average equity of 12.2% (2014: 16.6%2) X(Due to pressure on earnings arising from macroeconomic headwinds)

10

Overview

11

Operating Environment

2010-2012

12

Global• Crude oil supply glut persisted in the last quarter of the year,

exerting downward pressure on prices

• The plummeting commodity prices impacted negatively on

large emerging markets like Russia and Brazil, some other

emerging economies recorded strong growth and India

became the fastest growing major economy in the world

• Employment growth in the US prompted the Federal Reserve

to tighten monetary policy for the first time since 2006, while

the Euro zone, with a lift in credit growth and declining

unemployment, continued its recovery with a 1.9% growth rate

Domestic• Q4 2015 GDP came in at 2.1% y-o-y (Q4 2014 5.9%), 70 basis

points lower than 2.8% in Q3, 2015

• Foreign reserves was down 15.6% to US$29.1 in December 2015

from US$34.5bn as at December 2014; and fell further to

US$27.86bn in March 2016

• Headline inflation rate trended upward to close the year at

9.6%; 60 basis points above CBN’s target of 9%

• The CBN retained exchange rate at N197/US$ and

implemented various foreign exchange policies to reduce

demand pressure on the Naira

Macro Profile

4858 56 59 65 62

5647 47 48 44

38

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Brent Oil Price Trend-(US$)

32.4

29.6 29.4 29.828.6 28.3

31.2 30.629.9 30.3

29.328.3

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Foreign Reserves Position

(US$’bn)

8.2

%

8.4

%

8.5

%

8.7

%

9.0

%

9.2

%

9.2

%

9.3

%

9.4

%

9.3

%

9.4

%

9.6

%

Headline Inflation Rate

Regulatory Environment

2010-2012

13

Key Regulatory Actions Rationale

• A revised guideline on BASEL II implementation covering Pillar 1

(minimum capital requirement), Pillar 2 (ICAAP) and Pillar 3

(disclosure requirements) with accompanying reporting template • To strengthen the capital position of banks

• Extension of cashless policy to other States in the country• To reduce cost of cash management and

currency outside the banking system

• Biometric Verification Number (BVN) Enrolment• To improve Know Your Customer (KYC),

support retail lending and minimize money

laundering activities• Ban on 41 items from accessing foreign exchange at the official

market• To reduce demand pressure on the Dollar

and conserve foreign exchange• Restructuring of State Government loans by conversion to

FGN 20-year bonds• To improve liquidity and capital adequacy

ratios• Implementation/Enforcement of Treasury Single Account (TSA)

which requires Federal Government Ministries, Departments and

Agencies to transfer their funds to the Consolidated Revenue

Account (CRF)

• To provide transparency in Government

revenue management system

• Reduction in Monetary Policy Rate (MPR) from 13% to 11% and a

conditional decrease of CRR from 25% to 20%• To encourage lending to the real sector

• Increase in general provisions on performing loans to 2% (from 1%) • To strengthen the capital position of banks

• Prohibition of foreign currency lending to customers without

foreign currency receivables• To mitigate foreign exchange risks

14

Funding and Liquidity

Assets growth trend

162.1 229.4321.7 371.2 338.7

222.2232.2

177.6175.3 238.8

182.5

242.1 184.7

13.320.4

97.590.5 7.8

2011

20.9 15.3

2014

824.5

-3%

2013

707.8

16.9504.0

8.9

+12%

2015

798.4

9.1

2012

580.221.9 14.0

Government Securities

Other Assets

Fixed Assets

Cash & short term investments

Loans & Advances

• Total assets grew at a compound annual growth rate of 12% (CAGR: 2011-2015) but declined in

2015 by 3% to N798.4 billion as we prioritized balance sheet efficiency

• We also maintained a very liquid balance sheet position despite the implementation of the

Treasury Single Account (TSA) by the FGN with liquid assets accounting for over 40% of total assets

• Growth in Government securities due to the liquidation of State Government loans in exchange

for Government securities

• Reduction in cash & short term investments due to the reduction in Cash Reserve Requirement

Comments

N’B

15

Funding mix

74.0%

8.0% 8.0% 9.0% 10.0%12.0%

80.0%81.0% 80.0%81.0%

4.0%4.0%5.0%4.0%0.6%

1.0%1.0%1.0%1.0% 7.5% 100%

2015

800

5.0% 5.0%

2013

708

5.0%

2012

574 825

6.0%

20142011

499

5.0%

Borrowings Deposits

Equity

Other Liabilities

Debt Securities

N’B

16

Deposits remained the major source of

funding at 74% of total assets (Dec 2014:

80%); reduction in deposit contribution

due to the implementation of the TSA

Equity contribution increased by 200

basis points to 12% due to profit

accretion

Funding from StanChart, Islamic Corp.

and AFREXIM amounting to US$70 million

provided additional dollar liquidity for the

Bank

Comments

Borrowings 2015 2014 Growth

Citibank 19,138 16,549 15.6%

Goldman Sachs International 8,261 7,822 5.6%

Bank of Industry 4,197 7,195 -71.4%

CBN – Agric Fund 14,750 13,396 10.1%

Standard Chartered Bank 4,867 -

Islamic Corporation 5,972 -

AFREXIM 2,966 -

CBN - MSME 135 -

NEXIM - 409

Total 60,286 45,371 32.9%

8.1%

4.9%

9.9% 0.2%

31.7%

13.7%24.5%

7.0%

CBN - Agric-Fund

StandChart

CBN - MSME

AFREXIM

Islamic Corp.

Citibank

Goldman Sachs

Bank of Industry

2010-2012

Deposit Mix Deposit by Business Segments

Deposits

Dec

2015

Dec

2015

Deposits grew at a compound

annual growth rate of 10%

(CAGR: 2011-2015) but

declined 10% YoY to N590.9

billion due to the

implementation of the Treasury

Single Account (Adjusted

growth 12.3%)

Current account deposits were

the most impacted leading to

a 19.2% reduction to N361.7

billion;

Savings deposits rose by 27.8%

to N41.7 billion supported by

the on-going expansion of our

distribution channels

However, wholesale deposits

increased by 8.8% resulting in a

90 basis points increase in cost

of funds to 6.6%

CommentsN’B

17

34.2%

25.0%

40.1%

0.7%

Corporate & InvestmentRetail & ConsumerCommercial & Institutional

31.6%

7.1%

61.2%

0.1%

Time Savings Current Others

284.1355.8

447.6361.7

158.9

187.3

171.5

186.6

248.5

0.8

4.2

2.0

3.117.7

125.1

18.5

32.6

2013

570.5

-10%+10%

2015

20.7

2011

409.8

2012

466.8

2014

655.9

25.4

590.8

41.7

Others

Current

Savings

Time

2010-2012

Dec

2014

Liquidity

Held for trading Available for sale Held to maturity

Liquid assets (excluding

Pledged) accounted for

44.3% of total assets (Dec

2014: 41.1%) due to increase

in investments securities

Increase in cash and

balances with CBN due to

the apex bank’s policies on

Cash Reserve Requirements

Investment securities grew to

N169.532 billion with 70% in

available for sale securities

and 27% held to maturity

Overall, liquidity ratio was

above regulatory benchmark

of 30% at 43.5% (Dec. 2014;

34%), while net loan to

deposit ratio was 57.3% (Dec.

2014; 56.6%).

CommentsN’B

Investment Securities’ Split

3.56.4

132.9

25.0

68.8

115.9

1.71.1

50.941.6

67.3

174.8

Treasury billsDue from

banks

Cash with

CBN

Corporate

bonds

Euro bondsGovernment

bonds

2014

2015

18

3%

70%

27%

Dec

2015

2%

51%

47%

19

Credit Risk & Asset Quality

Loans and advances

• Gross loans declined by 6.9%

and net loans declined by

8.8% to N354.5 billion and

N338.7 billion respectively

• However, both grew at a

compound annual growth rate

of 20% (CAGR: 2011-2015)

• Reduction in gross loans was as

a result of the liquidation of

state government loans

• Following the reclassification of

our loans in line with our new

operating structure,

Commercial & Institutional

Banking accounted for 52% of

loans, Corporate & Investment

banking accounted for 40%

while Retail & ConsumerBanking accounted for 6.5%.

Comments

354.5380.9

328.7

236.1

170.5

338.7371.2

321.7

229.4

162.1

-9%

-7%

20152014201320122011

Gross Loans

Net loans

Loa

ns

by b

usi

ne

ss

seg

me

nt

N’B

23.7%

10.1%

66.2%

2014

51.9%

0.0%

6.5%

2015

1.9%

39.7%

Corporate & Investment

Retail & Consumer

Commercial & Institutional

Non-interest

20

Loans and advances by sector

21

2015 2014

Sector (N’millions) 2015 % of Total 2014 % of Total Growth

Agriculture 13,146 3.7% 16,123 4.2% -18.5%

Capital Market 79 0.0% 304 0.1% -74.2%

Communication 29,314 8.3% 12,101 3.2% 142.2%

Consumer 4606 1.3% 8 0.0% na

Education 941 0.3% 1,298 0.3% -27.5%

Finance & Insurance 12770 3.6% 16450 4.3% -22.4%

Government 35,023 9.9% 33,981 8.9% 3.1%

Manufacturing 8003 2.3% 14740 3.9% -45.7%

Mining & Quarrying 353 0.1% 295 0.1% 19.9%

Mortgage 12011 3.4% 14789 3.9% -18.8%

Oil& Gas - Upstream 65,450 18.5% 55,265 14.5% 18.4%

Oil & Gas – Downstream 43957 12.4% 39475 10.4% 11.4%

Oil & Gas – Services 32,277 9.1% 36,843 9.7% -12.4%

Others 24451 6.9% 34691 9.1% -29.5%

Power 14,920 4.2% 13,743 3.6% 8.6%

Real Estate & Construction 40217 11.3% 81202 21.3% -50.5%

Transportation 16,480 4.6% 9,578 2.5% 72.1%

Non-Interest Banking 479 0.1% 40 0.0% 1111.6%

Total 354,475 100.0% 380,924 100.0% -6.9%

Loans and advances by currency

22

Sector (N’millions) LCY FCY Total

% of Sector

Loans in FCY

Agriculture 13,146 - 13,146 0%

Capital Market 78 - 78 0%

Communication 9,012 20,302 29,314 69%

Consumer 4,606 - 4,606 0%

Education 941 - 941 0%

Finance & Insurance 13,754 0 13,755 0%

Government 22,330 - 22,330 0%

Manufacturing 8,470 17 8,487 0%

Mining & Quarrying 353 - 353 0%

Mortgage 11,473 538 12,011 4%

Oil & Gas downstream 39,064 4,893 43,957 11%

Oil & Gas - upstream 1,247 64,203 65,450 98%

Oil & Gas - Services 11,758 20,519 32,277 64%

Others 22,063 1,904 47,935 4%

Power 520 14,400 14,920 97%

Real Estate & Construction 39,601 12,324 51,925 24%

Transportation 6,710 9,771 16,480 59%

Non-interest banking 479 - 479 0%

Grand Total 205,604 148,870 354,475 42%

• Foreign currency (FCY) loans are largely concentrated in the following sectors – oil & gas,

communications and power

Asset quality

2.1%

2012

3.8%

2011

4.8%

2013

3.1%

2014

4.8%

2015

NPL Ratio

23

Sector Impaired % of Total

Agriculture 383,758 2.4%

Capital Market 647 0.0%

Communication 345,751 2.2%

Consumer 302,050 1.9%

Education 448,673 2.8%

Finance & Insurance 240,225 1.5%

Manufacturing 1,926,261 12.1%

Mortgage 538,640 3.4%

Oil & Gas - downstream 4,758,543 29.9%

Oil & Gas - Services 362,896 2.3%

Others (General commerce) 3,960,453 24.9%

Power - 0.0%

Real Estate & Construction 2,401,706 15.1%

Transportation 222,756 1.4%

Grand Total 15,892,361 100.0%

Downstream accounted for the highest

sector impairment at 29%; two

customers accounted for 80% of the

impaired loans

A single customer accounted for about

70% of non-performing loans in the

manufacturing sector; however, the

loans were past due but not impaired

Increase in NPL ratio by 170 basis points

largely due to the reduction in gross

loans, while cost of risk also increased

to 2.3% from 1.9% in 2014

Non-performing loans were adequately

covered at 99% coverage ratio

Oil & gas upstream and services sub-

sector loans are viable at current oil

prices, however, we have restructured

in most cases to accommodate

pressure on cashflows

In 2015, total loan recoveries was N3.6

billion out of which N805million was

cash recoveries on written-off loans

Comments

Upgrade to risk management systems

24

Implementation of the Basel II & III project in conjunction with

KPMG

Risk rating models developed for exposures categorized as

specialized lending; Object Finance, Project Finance, Commodity

Finance, Income Producing Real Estate (IPRE)

Market and Liquidity Risk Policy to guide the Bank’s Market and

Liquidity Risk exposures

Stop-Loss Policy

2015 PCI DSS recertification

ISO 27001 Surveillance Audit

Quarterly Vulnerability Assessment and Monitoring

25

Profitability and Capital

Income statement highlights

26

Common Size Common Size

Items (N’millions) 2015% of Gross

Earnings2014

% of Gross Earnings

Growth

Gross earnings 110,194 100.0% 103,677 100.0% 6.3%

Interest income 80,909 73.4% 77,932 75.2% 3.8%

Interest expense -41,367 37.5% -34,915 33.7% 18.5%

Net interest income 39,542 35.9% 43,017 41.5% -8.1%

Fees and commission income 15,522 14.1% 16,133 15.6% -3.8%

Net trading income 10,650 9.7% 6,765 6.5% 57.4%

Other operating income 3,113 2.8% 2,847 2.7% 9.3%

Non-interest income 29,285 26.6% 25,745 24.8% 13.7%

Operating income 68,827 62.5% 68,762 66.3% 0.1%

Impairment charges -8,151 7.4% -7,389 7.1% 10.3%

Net operating income after impairment charge

60,675 55.1% 61,373 59.2% -1.1%

Personnel expenses -12,101 11.0% -12,031 11.6% 0.6%

Other operating expenses -11,675 10.6% -9,911 9.6% 17.8%

General and administrative expenses

-16,427 14.9% -19,992 19.3% -17.8%

Other property, plant and equipment costs

-5,590 5.1% -5,551 5.4% 0.7%

Depreciation and amortization -3,865 3.5% -3,140 3.0% 23.1%

Total expenses -49,659 45.1% -50,625 48.8% -1.9%

Profit before income tax 11,016 10.0% 10,748 10.4% 2.5%

Income tax expense -724 0.7% -1,743 1.7% -58.5%

Profit after income tax 10,293 9.3% 9,005 8.7% 14.3%

Revenue evolution …./1

15.7

33.046.8

56.8 59.616.4

19.7

22.318.1

20.1

0.1

+4%+26%

80.9

1.277.9

3.070.0

0.853.5

0.8

32.3

6.410.0

14.6 16.1 15.5

3.76.8

10.6

8.1

3.4

2.8

3.1

3.8

+17% +14%

21.7

2012

15.3

1.6

2011

15.5

2015

29.3

2014

25.7

2013

0.9

Other income

Trading income

Net fees & commission

Inte

rest

In

co

me

No

n-in

tere

st I

nc

om

e

Cash & equivalent

Investment securities

Loans & advances

N’B

27

Revenue evolution …./2

Loans & Advances

Investment Securities

Cash & cash equivalent

Fees & Commission

Trading Income

Others

Gross earnings rose by 6.3% to N110.3

billion representing a compound annual

growth rate of 23% (CAGR: 2011-2015) on

the back of increased transaction volumes

and activities

Earnings were boosted by non-interest

income which rose by 13.7% to N29.3

billion on account of growth in securities

trading

Interest income increased by 3.8% to

N80.9 billion and accounted for 73% of

earnings

Comments

68%78% 76% 75% 73%

32%22% 24% 25% 27%

47.8

2015

110.2

2014

103.7

2013

91.7

2012

68.8

2011

Interest incomeNon-interest income

N’BGross revenue

28

4%

23%

73%

2014

2%25%

73%

2015 53%36%

11%

201563%

26%

11%

2014

Interest Income Non-interest Income

Net interest income

39.543.0

35.8

23.9

16.7

+24% -8% Net interest income declined by 8.1%

to N39.5.0 billion representing a

compound annual growth rate of 24%

(CAGR: 2011-2015)

Decline in net interest income due to

the moderate growth of 3.8% in

interest income which was

outweighed by the 18.5% increase in

interest expense

Interest income was impacted by the

liquidation of state government loans

in exchange for Government

securities; consequently, yield on

earning assets moderated to 13.7%

Funding costs increased by 90 basis

points to 6.6% (2014 5.7%) reflecting a

high interest rate environment, while

net interest margin declined by 180

basis points to 7.1%

We plan to focus on funding cost

optimization in the coming period to

improve margins

CommentsN’B

Net interest income

29

5.0% 5.2%

8.1% 8.9%

7.1%

4.7

% 6.3

%

6.1

%

5.3

% 6.6

%

9.7%

11.5%

14.2% 14.2% 13.7%

2011 2012 2013 2014 2014

Spread Cost of funds Yield on earning assets

Operating Efficiency

72%

38%

62%

69%

39.2

39%43%

68.8

57%

68%

61%

82%

30.1

45%

55%

68.8

37%

63%

74%

57.5

6.5 9.4 10.3 12.0 12.1 1.5 2.6

2.7 3.1 3.9 12.4

20.0

27.1

35.5 33.7

2011 2012 2013 2014 2015

Staff Depreciation Other Expenses

32.0

20.5

40.0

50.6 49.70

Operating income remained flat at

N68.8 billion, but sustained by non-

interest income

Operating expenses declined by 5.1%

to N33.7 billion reflecting progress

made in strategic cost management

Personnel cost was relatively flat at

N12.1 billion

Depreciation and amortization

increased by 23.1% to N3.9 billion due

to the on-going investments in a

number of technology-led service

improvement initiatives across core

and subsidiary systems, and channels

optimization.

Overall, we achieved 140 basis points

reduction in cost-to-income ratio to

72.2%

CommentsCost-to-income

Net interest income

Non-interest income

N’B

30

2010-2012

EPS

Profitability

1.5% 1.4% 1.4% 1.4% 1.3%

16.7% 17.1%19.0%

16.6%

11.4%

2011 2012 2013 2014 2015

ROAA ROAE

53k44k

52k

42k

36k

201

1

201

2

201

3

201

4

20

15

N’B

• Sustained profit growth momentum

despite pressure on earnings arising

from macro economic head winds.

• PBT rose 2.8% to N11 billion, while PAT

grew by 14.44% to N10.3 billion

• Pre-tax ROAE was 12.2% (post-tax

11.4%)

• The Bank has paid dividend

consistently since 2011 and declared

a 50% increase in dividend to N2.6

billion at 9 kobo per share

• Comments

11.010.7

9.3

7.5

5.6

10.39.0

8.3

7.06.9

20122011

+18.2%

+10.5%

201520142013

Profit after Tax

Profit before Tax

31

2010-2012

Capital

32

95.684.7

63.5

46.641.1

+13%

201320122011

+24%

20152014

Equity

Items (N'm) 2015 2014 Growth

Total Tier 1 81,371 73,863 10.2%

Total Tier 2 3,892 3,432 13.4%

Total Qualifying Capital 85,262 77,295 10.3%

Risk-Weighted Assets 487,487 566,687 -14.0%

Tier 1 Ratio 16.7% 13.0%

Tier 2 Ratio 0.8% 0.6%

Capital Adequacy Ratio (Basel II) 17.5% 13.6%

Capital adequacy ratio was 750

basis points above the regulatory

benchmark of 10%

Total qualifying capital rose by

10.3% to N77.3 billion bolstered by

a steady growth in shareholders’

funds at a compound annual

growth rate of 23.5% (CAGR: 2011-

2015)

Tier 1 capital increased by 10.2%

on the back of retained earnings,

while tier 2 capital rose by 13.4%

due to fair value reserve of N1.2

billion on available-for-sale

securities

The Bank plans to raise additional

US$200 million multi-currency debt

capital to further strengthen our

capital position

Comments

Financial ratios

33

Indicator 2012 2013 2014 2015

Pre Tax Return on Average Equity (annualized) 17.1% 19.0% 16.6% 12.2%

Post Tax Return on Average Equity (annualized) 15.9% 16.9% 13.9% 11.4%

Return on Average Assets (annualized) 1.4% 1.4% 1.4% 1.4%

Earnings per Share 44k 52k 42k 36k

Yield on Earning Assets 11.5% 13.0% 14.2% 13.7%

Cost of Funds 6.3% 6.1% 5.3% 6.6%

Net Interest Margin 5.2% 6.8% 8.9% 7.1%

Cost to Income 81.5% 69.4% 73.6% 72.2%

NPL Ratio 3.8% 2.1% 3.1% 4.8%

Capital Adequacy Ratio 14.6% 14.0% 14.0% 17.5%

Loan to Deposit Ratio 49.5% 56.4% 56.6% 57.3%

Liquidity Ratio 67.3% 61.5% 33.6% 43.5%

34

Management Guidance

Management Guidance

35

NPL ratio < 5%

Cost of funds <5%

Cost-to-income <70%

Guidance

Deposit growth >20%

Net loans growth <17.5%

Pre-tax Return on average

Equity (ROAE) >15%

36

Thank you