1. First Bank Group Results
9 Months ended 31 December 2009 &
Quarter ended 31 March 2010
Presentation to Analysts and Investors
Presentation to Analysts and Investors
April 30, 2010

2. Cautionary Note Regarding Forward Looking Statements
This presentation is based on the financial results of FirstBank’s audited results for the period ended December 31 2009
and unaudited results for the period ended March 21, 2010, consistent with Nigerian GAAP. FirstBank of Nigeria Plc
(‘‘FirstBank’’ or the ‘‘Bank’’) has obtained some information from sources it believes to be credible. Although FirstBank has
taken all reasonable care to ensure that all information herein is accurate and correct, FirstBank makes no representation
or warranty express or implied as to the accuracy correctness or completeness of the information In addition some of
warranty, implied, accuracy, information. addition,
the information in this presentation may be condensed or incomplete, and this presentation may not contain all material
information in respect of FirstBank.
This presentation contains forward‐looking statements which reflect management's expectations regarding the group’s
future growth results of operations performance business prospects and opportunities Wherever possible words such
growth, operations, performance, opportunities. possible,
as "anticipate", "believe", "expects", "intend" "estimate", "project", "target", "risks", "goals" and similar terms and phrases
have been used to identify the forward‐looking statements. These statements reflect management's current beliefs and
are based on information currently available to the Bank's management. Certain material factors or assumptions have
been applied in drawing the conclusions contained in the forward‐looking statements. These factors or assumptions are
subject to inherent risks and uncertainties surrounding future expectations generally
generally.
FirstBank cautions readers that a number of factors could cause actual results, performance or achievements to differ
materially from the results discussed or implied in the forward‐looking statements. These factors should be considered
carefully and undue reliance should not be placed on the forward‐looking statements. For additional information with
respect to certain of these risks or factors reference should be made to the Bank's continuous disclosure materials filed
factors, Bank s
from time to time with the Nigerian banking regulatory authorities. The Bank disclaims any intention or obligation to
update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.
1

3. Agenda
1 FirstBank Overview
2 Financial Review
3 Asset Quality and Risk Management
4 Strategy and Transformation Overview
5 Summary
6 Appendix
2

4. FirstBank is Nigeria’s largest financial services institution offering an
array of banking and related non-bank services
Lines of Business
Lines of Business
Commercial Banking
Corporate and Institutional Banking
Retail Banking
Public Sector Banking
Other Financial Services Subsidiaries
Investment Banking , Asset Management (FBN Capital/FBN Securities)
Venture Capital/Private Equity (First Funds)
Venture Capital/Private Equity (First Funds)
Trust Services (First Trustees)
Pension Fund Custody (First Pension Custodians)
Mortgages/Real Estate (FBN Mortgages)
Insurance Brokerage (FBN Insurance Brokers)
I B k (FBN I B k )
Registrar Services (First Registrars)
Bureau de Change (FBN Bureau de Change)
Microfinance (FBN Microfinance)
International Subsidiaries and Rep Offices
FBN Bank UK
London
Paris
Foreign Rep Offices
Beijing
Johannesburg
3

5. FirstBank is Nigeria’s leading bank across multiple dimensions
#1 bank by total assets ($15.3bn or 14% market share)
# 1 bank by total loans and advances ($8.4bn)
Financial # 1 bank by total deposits ($9.4bn)
Solid liquidity and capital positions (17 7% CAR) with shareholder’s equity of $2.1bn
(17.7% shareholder s $2 1bn
Extensive network with 610 branches and outlets
International locations in London, Paris, Johannesburg, and Beijing
Network
Over 1300 ATMs
Large customer base, with over 5 million customers
High retail investor confidence and interest (2007 equity offer massively oversubscribed)
Relationships
Partner to government and regarded as a national icon
Unparalleled reputation for leadership, strength, and stability
Consistently ranked as #1 most trusted bank in independent consumer surveys
Reputation
Oldest existing financial institution in Nigeria (established 1894) with record of
surviving and even thriving through banking and national crises
Leader in corporate governance
Corporate Underpinned by strong institutional processes, systems, and controls
Governance History of seamless leadership successions
4

6. Group Financial Highlights: 9 Months to December 2009 & Q1 2010
Dec 09/08
Dec 09/08 Q1 10/Q1 09
Q1 ’10/Q1 ’09
Dec 2009 Q1 2010 Change
Change
Gross earnings N196.4 bn +28.80% N62.4 bn ‐10.65%
Group
Net revenue N130.5 bn +15.27% N40.1 bn ‐23.61%
Performance
Profit before taxes
Profit before taxes N11.6 bn
N11 6 bn ‐72.6%
72 6% N15.4 bn
N15 4 bn N/M
Dec 2009 Q1 2010
Capital adequacy ratio 15.80% 17.67%
Capital and
Capital and
Tier 1 ratio
i i 13.88% 14.58%
balance
sheet Leverage ratio 7.02x 7.40x
Liquidity and
Total loans to deposit ratio 81.3% 89.7%
funding
Liquidity ratio 53.0% 45.6%
x
Provision for credit & other losses N40.6 bn ‐ N1.5 bn
Key
NPL 8.2% 6.9%
Performance
Indicators
di ROE
ROE 1.4%
1 4% 15.9%
15 9%
ROAA 0.2% 2.4%
5

7. December 2009 & Q1 2010 Group Results
9 Mths Mar 2010 Mar 2010
9 Mths 12 Mths 9 Mths Dec ‘09 vs Qtr to Mar Qtr to Dec Qtr to Mar vs Mar vs Dec
Key Financials, N'm 31-Dec-08 31-Mar-09 31-Dec-09 Dec ‘08 2009 2009 2010 2009 2009
Balance Sheet
Total Advances and Loans to Customers 927,691 752,166 1,089,287 17% 752,166 1,089,287 1,261,291 68% 16%
Total Assets 1,801,526 2,009,914 2,172,346 21% 2,009,914 2,172,346 2,292,019 14% 6%
Deposits and Current Accounts 1,110,311 1,194,455 1,339,142 21% 1,194,455 1,339,142 1,406,802 18% 5%
Shareholders’ Funds 330,728 337,405 309,558 -6% 337,405 309,558 309,558 -8% 0%
Profit and Loss Account
Gross Earnings 152,491 217,630 196,408 29% 69,839 68,891 62,339 -11% -10%
Profit Before Taxation and Exceptional
Items 42,405 53,799 11,585 -73% (9,846) 9,508 15,420 N/M 62%
Exceptional Item - (26,113) - - - -
Profit After Taxation 33,924 12,569 3,189 -91% (12,800) 7,606 12,336 N/M 62%
Figures may not add up due to rounding 6

8. Agenda
1 FirstBank Overview
2 Financial Review
3 Asset Quality and Risk Management
4 Strategy and Transformation Overview
5 Summary
6 Appendix
7

9. Gross earnings continues to grow at a healthy pace
Gross Earnings N’bn
i ’b Gross Earnings Mix by Business Lines
Gross Earnings Mix by Business Lines
262 Annualized 0.7% 1.1%
0.8% 0.4%
0.9% 0.3% Other
218
65
Mortgage Banking
41
41 4.5%
156 34 5.0%
Asset Management
55 Investment & Capital
91
68 Markets
176 162
29 93.7% Retail & Corporate Banking
27 101 92.6%
63
63
41
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Dec‐09 Mar‐10
Non Interest Income
Gross Earnings N’bn Comments
70
• Long term steady growth in gross earnings, benefiting from
62 growth in average earning assets
19 • Q1 gross earnings negatively impacted by declining yields
12
• Strong deposit growth – focused on cheaper demand and
savings deposits
• Stable funding to exploit market opportunities
51 50 • Diversified group of businesses
• We expect significant improvement in the contribution of
non interest income in coming periods as the recovery in the
capital markets and economy continues
Mar‐09 Mar‐10
Interest Income Non Interest Income
8

10. … driven by interest from loans & advances, as well as income from other
earning assets
Net Revenue Split
li Interest Income Split
li
4.5% 4.8% 2.4% 4.0% 0.7% 0.0% 4.9%
13.3% 8.2% 8.2%
16.1%
21.1% 21.5% 28.4% 31.9%
22.9%
26.0%
30.4% 60.9% 64.9% 68.3%
56.1%
56 1%
77.7%
45.5%
69.0% 74.3% 73.7% 69.1%
60.7% 10.6% 12.0%
53.5% 11.3%
33.2%
15.1% 24.5% 10.4%
22.4% 20.4%
2.5% 7.5% 7.0%
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10 Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10
Net Interest Income Other Fees and Commissions Other Income Placements Treasury Bills Loans and Advances Other
Non Interest Income Split Breakdown of Fees and Commissions March ‘10
9.0% 2.8%
22.5% 17.5%
34.7% 33.8% Commission on turnover 40%
Exchange gain 8%
Exchange gain 8%
91.0% 97.2%
82.5% Commission on western union
77.5% transfers 3%
65.3% 66.2% N11.4bn
Loss/(Profit) on disposal of
property and equipment 4%
Credit related fees 2%
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10 Other fees and commissions
42%
Fees and Commission Other income
Other income includes foreign exchange income, recoveries, trusteeship income and income from investments
9

11. Improving deposit mix in the face of recent pressure from rising cost of
funds
Comments Yield on Interest Earning Assets
i ld i
10.9% 11.2% 10.9% 11.2%
• Improving yield on earning assets
• Recent decline in net interest margin driven by high 9.2% 9.3%
funding costs
• Benefiting from reduction in cost of interest bearing
liabilities:
– Improving deposit mix
– Excess liquidity driving down interest rates
• Continued focus on improving pricing efficiencies to
Continued focus on improving pricing efficiencies to
protect margins
• Further decline expected in cost of funds
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10
Cost of Interest Bearing Liabilities Net Interest Margin
7.2% 7.3%
6.5% 6.6% 6.4%
5.9%
5.3%
5 3%
4.8%
4.4%
3.6%
2.7%
2.0%
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10 Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10
10

12. Operating expenses growing in line with gross earnings, with further cost
efficiencies expected over time
Operating Expense
i Comments
• Operating expenses continued to be impacted by
104 – High maintenance costs for decaying national infrastructure
Annualized – Controlled growth in staff costs
26 – Rising inflation impacting administrative and general expenses
Rising inflation impacting administrative and general expenses
– Cost of workforce restructuring
– Quick wins coming through from earlier cost optimisation
88 initiatives
78
70 • Significant focus on controlling costs through:
45 – Centralised processing/shared services
35
– Fleet management
– Manning structure realignment
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09
9 months to December ‘09 3 months to March ‘10
Staff Cost 51.8% Staff Cost 46.5%
Depreciation 7.1% Depreciation 7.5%
N78.3 bn N26.2 bn
Premium on Deposits 4.7% Premium on Deposits 7.1%
Admin and General Expenses
Ad i dG lE Admin and General Expenses
Ad i dG lE
36.4% 38.9%
11

13. Steep increase in loan loss provision driven by deterioration in asset quality
following the economic slowdown and downturn in equity markets...
Provision for Credit & Other Losses N’bn
i i f di & h ’b Comment
Provision for credit losses accounts for
• Net write backs in the first quarter of 2010
99.4% of total provisions. Other losses
8 Other* • Within the Bank, write backs were credit related, as
include provision for diminution in value
of investments, cash/short term funds and accounts reverted to performing status
due from other banks and financial 5 Oil & Gas
institutions 3 Distributive Trade
• S b idi i
Subsidiaries reported investment related writebacks of
t di t t l t d it b k f
5 Retail Others N3.8 bn
7 Personal & Professional
• Increased focus on recoveries, with remedial strategy being
to recover past due obligations on non‐performing accounts,
19.4 restructure performing exposures against realistic cashflows,
14
Asset Management
4.0 6.4 and pursue gradual work‐out
2.0
(1.5)
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10
Movement (December’09) N’bn Movement (March ’10) N’bn
52.4
3.0 57.4
(7.2) 55.1 (0.7)
55.1
(4.9)
(5.3)
20.3
31‐Mar‐09 Additional General Provision no Amounts 31‐Dec‐09 31‐Dec‐09 Additional Provision: Provision no longer 31‐Mar‐10
Provision: Non Provision: No longer w/off Non Performing required
Performing Longer required
Required
*Other include manufacturing, commercial, construction, utility, education, owner occupier and agric 12

14. ... with significant negative impact on pre-tax profits
Before provisions and exceptional items N’bn
f i i d i li ’b After provisions and exceptional items N’bn
f i i d i li ’b
70 Annualized
17
73
48
54 52 16 Annualized
26 28 4
28 22
22
12
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09
28
15
Loss driven by
exceptional item from
exceptional item from
First Trustees taken in
March 2009
14
Mar‐09 Mar‐10
Mar‐09 Mar‐10 (10)
13

15. Significant improvement in contribution of retail and corporate bank to
group profits
December ‘09 PBT Split
b ‘ li By Business lines
i li March ‘10 PBT Split
Retail & Corporate Retail & Corporate Banking
Banking 57.3% 69.9%
Investment & Capital Mkts Investment & Capital Mkts
10.5% 9.7%
N11.6 bn Asset Mgt 26.2% N15.4 bn Asset Mgt 18.1%
Mortgage Mgt 0.5% Mortgage Mgt 0.4%
Other 5.4% Other 1.8%
PBT Split by Geography
PBT Split by Geography FBN UK
FBN UK
• Global trade volumes remain slightly soft
1.4%
• Interest rates remain low and there continues to be a slight
4.8%
shortage of quality assets, as a result, liquidity remains high
• Progress being made on loans that were provisioned in
2009 and some write backs are expected in Q2
UK • FBN UK voted the ‘Best Trade Bank in West Africa’ by GTR
98.6% 95.2% Nigeria magazine
• Debit cards have now been launched and Wealth
Management business soon to be launched
Dec‐09 Mar‐10
14

16. Rebounding profitability matrices, driven by lower levels of provisioning
as well as focus on controlling costs
Cost/Income Ratio
/ i Branch Productivity (N’bn)
h d i i ( ’b )
91.1%
570 582
536
68.4% 66.6%
64.5% 61.4% 61.6% 469
399 414
137
61.5% 61.7% 65.3% 116
56.2% 54.5% 60.0% 92 96
67
55
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10 Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10
Pre Provisioning Post Provisioning Pre Provision Profitability per branch Number of Branches
ROE, ROAA & EPS
ROE ROAA & EPS Comments
C t
27.0%
24.7% • Over 30% reduction in post provision cost‐to‐ income ratio
• Increasing returns on asset and equity
15.9%
10.4% • Key initiatives are ongoing to ensure major improvement in
income side of cost‐to‐income equation
3.7%
2.8%
1.4% 2.4% • Sustained improvement in profitability expected
2.3% 2.4%
0.6% 0.2% • Improving profitability per branch network; benefits
expected from manning structure realignment and branch
optimisation
332 197 184 51 11 170
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10
EPS (Kobo) ROE ROAA
15

17. Well diversified deposit base providing stable funding; concerted efforts to
reduce mix of expensive term deposits bearing fruits
Deposits N’bn
i ’b Deposits Mix
i i
Current deposits Savings deposits Term deposits Domiciliary deposit
1,407
1,339
8.8% 8.8%
1,194
31.4%
31 4% 24.9%
700
600 19.9% 27.5%
449
39.9% 38.8%
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10 Dec‐09 Mar‐10
By Maturity
B M i By Customer Segmentation
9.7% 8.4%
9.5% 15.0%
48.5% 45.6%
25.2% 13.9%
13 9%
Over 12 months
6‐12 months
25.4%
19.7% 3‐6 months
40.1%
1‐3 months 40.5%
0 ‐ 30 days
36.0% 37.4%
10.4% 14.0%
0.6% 0.4%
Dec‐09 Mar‐10
Dec‐09 Mar‐10 Finance Companies Government Coprorates Individuals
16

18. Steady growth in loan book .....
Loans & Advances N’bn
& d ’b Off balance Sheet Engagements* N’bn
ff b l h * ’b
FBN Capital
1071
46
First Pension Custodian
Bank
552
1,261 973
1,089
696
752 545
473
476 344
179 221 116
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10 Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10
By Maturity Composition of off balance sheet engagements
Composition of off balance sheet engagements
‘March 10 (Bank Only)
Repo/Swap transactions 2.7%
22.4%
34.7%
FX Purchases/Sales 3.8%
3.4%
11.8%
Over 12 months Bills of Lading Indemnity 0.1%
7.0%
10.7% 4.6% 6 ‐ 12 months Bonds and Guarantees 23.4%
7.9%
3 ‐ 6 months N473 bn
Bonds and Guarantees ‐ FCY 12.6%
1 ‐ 3 months
51.8%
51 8% 0 ‐ 30 days Confirmed Documentary Credits
C fi dD t C dit
45.9%
22.0%
Unconfirmed Documentary Credits
30.7%
FX Loan Intermediation 4.7%
Dec‐09 Mar‐10
17

19. ….. Leading to more efficient balance sheet utilization, whilst
maintaining liquidity
Loan to Deposit Ratio
i i Composition of Liquid Assets
ii f i id
N444 m N575 m
89.7%
81.3%
FGN bonds
68.0%
68 0% 52.1%
52 1% 55.6%
55 6%
63.0%
Net placement with discount
houses
Net interbank placements
39.9% 2.3%
36.9% 11.7% Nigerian treasury bills
35.4%
35 4%
Cash
24.7%
3.2% 3.0%
7.0% 5.0%
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10 Dec‐09 Mar‐10
Leverage Ratio (Times) Comments
10.9
• Liquidity ratio of 45.6%, well in excess of 25%
9.6
regulatory requirement.
7.4 • N t l
Net placer of funds in Interbank Market
ff d i I t b kM k t
7.0
6.0 • Group treasury function improving efficiency of our
4.3 balance sheet
• Improving capital adequacy ratio, with strong tier 1
capital ratio of 14.58% as at March 2010
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10
18

20. We have successfully navigated turbulence within the banking sector and
our capital ratios remain strong
X
X
24.30
X 15.80 17.67
20.22
13.88 14.58
10% CAR regulatory
requirement
x
1,755
1,674
1,523
Mar‐09 Dec‐09 Mar‐10
total RWA (N'm) Tier 1 capital adequacy ratio % total capital adequacy ratio %
19

21. Development of Tier 1 Capital and Risk-Weighted Assets
Tier 1 Capital N’bn Risk‐Weighted Assets N’bn
174 17 1755
2.1 0.2
355.1
225
1523
(39)
(22)
(121)
(32.5) 317.5
(2.1)
(1.2)
31‐Mar‐09 Ordinary share Statutory Retained Bonus issue Reserve for 31‐Mar‐10 31‐Mar‐09 Due From Due From Off Balance Net Loans & Investments Fixed & 31‐Mar‐10
capital reserve earnings reserve small/medium OECD Other Banks Sheet Advances Other Assets
scale Countries Commitment
industries 20

22. Current Funding Situation – Asset and Liabilities as at December 2009
N2,172bn N2,172bn
Other 5% 110
310 Capital and Reserves 14%
Treasury Bills & Trading 236
236 Comments
C t
Assets 11%
Investments 3% 68 148 Managed Funds 7%
Some of our foreign loans and lines of credit are:
202 Short Term Liabilities & Other
• $175 million 10 year facility from Subordinated
9%
Debt Capital for general balance sheet
D bt C it l f lb l h t
management and growth
1,089
• European Investment Bank
Loans & Advances 50%
– Euro 35 million 5 year loan
– Euro 15 million 8 year loan
y
– Euro 55 million 10 year senior loan
• $100 million US Eximbank facility to support US
1,512 Deposits & Other Accounts 70% exporters
Managed Funds 4%
g 85
85 • $350 million Standard Chartered Bank facility
$350 million Standard Chartered Bank facility
for strategic funding
Cash & Short Term Deposits 585
with Banks 27%
Assets Liabilities
21

23. Agenda
1 FirstBank Overview
2 Financial Review
3 Asset Quality and Risk Management
4 Strategy and Transformation Overview
5 Summary
6 Appendix
22

24. Our loan portfolio cuts across a diverse customer base, with no significant
concentration risk......
Type Comments
N1,108 bn N1,056 bn • Continued growth in loan book at group level
14.6% 16.6%
• 4.5% Decline in Bank loan portfolio between December
2009 and March 2010 driven mainly by maturing
y y g
26.5% 24.1% obligations being paid down
Overdrafts
1.0% 0.8% Money market lines
9.8% 6.8% • Stable sector exposures across board
Leases
Commercial papers • Targeted growth of 10% in loan book for 2010
Term loans
T l
46.6% 50.2%
Investments
1.4% 1.5%
Dec‐09 Mar‐10
Business Lines ‘December 09 Business Lines ‘March 10
Corporates 26.7%
Corporates 28.5%
Corporates 28.5%
Consumer 10.2%
Consumer 10.4%
Retail 25.5%
N1,108 Retail 26.3%
N1,056
bn Financial Institutions & bn Financial Institutions &
Treasury 30.5%
y
Treasury 27.7%
Agric/Misc 0.6%
Agric/Misc 0.8%
Public Sector 6.4%
Public Sector 6.4%
23

25. ......and remains well diversified across different sectors of the
economy
‘ b
Gross Sector Exposure ‘December 09 ‘ h
Gross Sector Exposure ‘March 10
Agriculture , 1%
2.6% Public Sector, 6%
Public Sector, 6% Agriculture , 1% Downstream 3.3% Downstream
0.1% Upstream 0.4%
Retail Services, 8% Retail Services, 10% Upstream
13.6% Services 13.8%
Oil and gas Oil and gas Services
Utilities, 0% Utilities, 1%
Utilities 1%
, 15% , 17%
17%
General
Consumer Credit General
Commerce, 6% Consumer Credit
, 6% Commerce, 5%
, 7%
Communication
, 5% Communication , 5%
Transportation , 1% Manufacturing Transportation , 1%
, 10% Manufacturing , 8%
Finance and Finance and
Insurance , 31% Insurance , 28%
Real estate, 10% Real estate, 10%
Construction , 1% Construction , 1%
Collateral Comments
• Reduced exposure to finance and insurance sectors from
29.1% 27.0% December 2009 to March 2010
• Exposure to share backed loans down to 4.61% from 5.7%
as at March 2009
Unsecured
• Margin loans represent 1.33% of total loans , down from
57.4% Otherwise secured *
57.4%
2.7% in March 2009
Secured against real
estate
estate
13.5% 15.6%
Dec‐09 Mar‐10 * Includes cash, lien on marketable securities, Guarantees, receivable of investment grade banks/ corporate lien on fast moving
inventory in bonded warehouse, deposits e.t.c. 24

26. We have taken significant provisions against our non performing loan
portfolio, with overall improvement in quality of assets
NPL Portfolio N’bn
f li ’b NPL & Coverage Ratios
& i
94.0
90.7
134.8%
105.5%
%
82.8%
77.2%
36.5 64.1% 67.1%
17.3 9.0% 8.2% 6.9%
6.7 7.1 4.8%
4 8%
2.6% 1.5%
Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10 Mar‐06 Mar‐07 Mar‐08 Mar‐09 Dec‐09 Mar‐10
NPL/TL TL LP/NPL
Time Past Due ‘December 09 (Bank Only) Time Past Due ‘March 10 (Bank Only)
90 ‐ 179 days 34.9% 90 ‐ 179 days 21.0%
N81.5 bn 180 ‐ 359 days 13.8% N82.3 bn 180 ‐ 359 days 20.8%
> 360 days 41.9% > 360 days 44.8%
Interest in suspense 9.4%
p Interest in suspense 13.4%
Interest in suspense 13.4%
25

27. Major sectors represented in the NPL driven largely by systemic issues but
we are beginning to see reversals
Sector Exposure ‘December 09 Sector Exposure ‘March 10
General
Commerce, 6% Owner Agric, 0% Others, 4%
Occupier, 2% Education, 1% Asset
Retail Others, 11% Oil & Manufacturing, 3% Management, 18%
,
Gas, 9% Utility, 6% Commercial
Construction, 3%
Construction 3%
Residential, 3%
Commercial
Manufacturing, 3% Residential, 3%
Construction, 3% Utility, 6%
Commercial Non Owner
Residential, 16% Occupier, 1% Personal &
Oil & Gas, 12% Professional, 13%
Education, 1%
Education, 1%
Other Financial
Institutions, 0%
General
Others, 4% Commerce, 6%
Personal & Asset
Management, 21% Commercial Non
Professional, 17% Retail Others, 11% Residential, 17%
Performing but past due loans ‘December 09 Performing but past due loans ‘March 10
0 ‐ 30 days 37.7%
0 ‐ 30 days 50.6%
30 ‐ 60 days 13.4%
30 ‐ 60 days 18.9%
60 ‐ 90 days 48.9%
60 90 d 48 9%
60 ‐ 90 days 30.5%
N172.6 N125.9
bn bn
26

28. Various sectors continue to exhibit vulnerabilities to ongoing stresses within the
economy , but we expect improving performance as the economic backdrop
picks up
NPL’s as a % of loans by sector ‘March 10
97.4%
50.0%
44.6%
40.5%
34.9%
29.9%
25.1%
21.0% 20.2% 20.2%
18.0%
16.0%
13.5% 13.2% 12.5%
10.7% 10.4%
9.0% 9.0% 8.8% 8.3% 8.3%
6.7% 5.5% 5.5%
27

29. Increasingly reduced exposure to share-backed loans, with portfolio
benefitting from improved performance of the equity market
Mar – 09 Dec – 09 Mar - 10
1 Facility Against Shares (FAS)1 N58.2b N53.05b N48.72b
2 Collateral value FAS1 N46.4b N49.18b N51.06b
3 Portfolio Coverage of FAS1 79.7% 92.72% 104.81%
4 FAS/Total Loans 5.7% 4.79% 4.61%
5 Non‐Performing FAS1 Loans N16.2b N30.07b N23.13b
6 Non‐Performing FAS1 Loans (%) 33.84% 56.70% 47.48%
7 Provisions held against FAS1 N12.6b N23.51b N19.16
8 FAS NPL Coverage 77.78% 78.18% 82.84%
9 % FAS1 backed by shares in private placement 27.59% 35.02% 35.28%
10 Margin Loan Exposure N16.4b N11.79b N13.85b
11 Percentage of margin loans to total LAD 2.7% 1.17% 1.33%
12 Collateral value of total margin loans
Collateral value of total margin loans N6.59b
N6 59b N6.93b
N6 93b N8.92b
N8 92b
13 Collateral value of non‐performing margin loans N7.5b N4.96b N8.84b
14 % of loan book renegotiated/restructured* 2.2% 2.79% 5.88%
p g
Provisions have been made in line with prudential guidelines
Portfolio is marked to market only for the purpose of considering open positions. Classified accounts are based on total balance outstanding and not the value at risk.
On recovery of the value at risk, the security value will be taken in to recover the entire sum outstanding
1FAS –Includes margin loans and other loans secured by shares
*Largely margin loan accounts Figures may not add up due to rounding 28

30. Seawolf
Introduction
d i FBN Exposure
• Established on 17 April 2007 as a special purpose
Vehicle, with the primary objective of achieving premier • N87.9bn – Direct exposure
Nigerian status in the ownership and operation of major
high value oilfield assets.
g • 9 year medium term loan
9 year medium‐term loan
• In July 2007, FirstBank availed SeaWolf a $260 million
bridge facility • Percentage of loan book – 8.15%
• Due to the global economic meltdown and declining oil
prices Fi B k was constrained to convert i b id
i FirstBank i d its bridge
facility into a medium term loan
Shareholding
Sponsor Group 10%
FBN Capital Partners
Limited 42%
Pan African Infrastructure
Development Fund 18%
$125 m
Leadway Assurance 7.5%
Haskal Holdings 7.5%
Unallotted 15%
29

31. Risk Management Framework
Risk Management Governance Framework
Board of Directors
Board Credit Committee
Board Credit Committee Board Audit and Risk Assessment Committee
Board Audit and Risk Assessment Committee
ExCo Credit GMD/ExCo/ ALCO
Internal Audit
ED/CRO
30

32. Risk Management
• The Bank’s risk appetite is set by the Board of Directors annually, at a level that minimises erosion of earnings or capital due to
avoidable losses in the banking and trading books or from frauds and operational inefficiencies
• The Bank strives to maintain a conservative balance between risk and revenue considerations
• The Bank’s appetite for risk is governed by the following high‐quality risk assets measured by the following three key performance
indicators:
– ratio of non‐performing loans to total loans – target (among the top three banks);
– ratio of loan loss expenses to interest revenue – target (among the top three banks)
( )
– ratio f loan loss provision to gross non performing loans – 2010 target (5%).
• The Risk Management Directorate coordinates the monitoring and reporting of all risks across the Bank
• Cl
Clear segregation of duties between market facing business units and risk management functions
ti f d ti b t k tf i b i it d ik t f ti
– Ensures separation of policy, monitoring, reporting and control functions from credit processing functions
• Group wide risk management as well as credit appraisals are also being strengthened
• Adoption of SAS risk management module to develop models and test and validate different business scenarios
Adoption of SAS risk management module to develop models and test and validate different business scenarios.
• Implementation of Basel 2 framework, which will be used to determine economic capital adequacy in line with best practices
• Creation of the specialised lending department
• Automation of portfolio reports to aid early detection of problem loans
Automation of portfolio reports to aid early detection of problem loans
• Enhanced training of market facing personnel to improve quality of loan pipeline
31

33. Corporate Governance
Corporate Governance Framework
FirstBank Board Shareholders
Establishment,
Audit and Risk
Governance Disciplinary & Credit Tenders Audit
ExCo Assessment
Committee Promotions Committee Committee Committee
Committee
Committee
Asset &
Liability
Committee
ExCo General
Statutory Committee
Board Committee
ExCo Credit
Management Committee
32

34. Agenda
1 FirstBank Overview
2 Financial Review
3 Asset Quality and Risk Management
4 Strategy and Transformation Overview
5 Summary
6 Appendix
33

35. FirstBank aspires to be Sub-Saharan Africa’s* leading financial services
group (and is already the largest in SSA excluding South Africa)
From
Key Elements of FirstBank Group Aspiration
K El t f Fi tB k G A i ti
First = “The Oldest, Largest”
“Become Sub‐Saharan Africa’s* leading financial services group” 1894 First Bank founded as Bank
of British West Africa (BBWA)
1. Be the undisputed leader in every business we choose to
1 Be the undisputed leader in every business we choose to 1957 BBWA rebranded Bank of
West Africa (BWA)
participate in 1966 BWA becomes Standard Bank
of West Africa post-merger, then
Standard Bank of Nigeria (’69)
2. Significantly grow our franchise within and beyond our
1979 Standard Bank of Nigeria
borders becomes Fi t Bank of Ni
b First B k f Nigeria
i
2009 FirstBank is the largest bank in
3. Provide unparalleled and innovative service to our customers Nigeria and leader several non-
bank financial services segments
4. Develop FirstBank into a hub for the best industry talent
5. Remain a bastion of ethical leadership and good corporate To
To… “First = = “Oldest, Largest”
The Leader, The Best”
From…“The Leader, The Best”
governance First = First
in total returns to
6. Deliver superior shareholder returns
Deliver superior shareholder returns Shareholders
shareholders
in service levels &
Customers
value to customers
“Our paramount goal is to ensure that our institution achieves in desirability to
Employees
pre‐eminence in each of its businesses... and to ensure work for
in compliance and
sterling performance in shareholder value growth” Regulators
good governance
– Chairman The Public in positive impact
on society
* Excluding South Africa 34

36. While starting from a position of strength, we recognize current and potential
challenges and have set a bold TRANSFORMATION agenda to address these
Strong assets & opportunities….
Strong assets & opportunities
• Largest and strongest balance
sheet of any SSA bank (ex‐SA)
Some challenges…
• Extensive distribution network
• Translating scale into
(610 branches/outlets)
profits
• Deep institutional, retail, and
p , ,
• O ercoming legac
Overcoming legacy
government relationships and
service delivery FirstBank is
client base of over 5 million
issues aggressively
• Consistently rated the most
Consistently rated the most TRANSFORMING
TRANSFORMING
• Managing credit
trusted Nigerian financial to meet present
quality in the present
services brand in independent and future
macroeconomic
surveys challenges
climate
li t
• Visionary, experienced
• Increased
leadership
competition from
• Operating in Africa’s most foreign entrants
promising financial services
marketplace 35

37. We are restructuring at a group level to enhance portfolio optimization,
coordination and reduce risks and duplications across our businesses
Operational division and
Operational division and Operational division but
Operational division but
FirstBank Group operating structure
Fi tB k G ti t t legal standalone entity not legal standalone
Group FirstBank Group
Holdco
Corporate
Corporate Shared
Shared
Centre Services
Group Management Committee
Business Investment Banking
Groups FirstBank FBN Bank International Insurance and Asset Emerging Ventures
Management
Business ▪ Institutional Banking ▪ FBN Bank UK* ▪ General life/non‐life ▪ Financial advisory ▪ Houses standalone
Units ▪ Corporate Banking ‐ London underwriting ▪ Capital markets subsidiaries
▪ Retail Banking ‐ Paris ▪ Insurance Brokerage ▪ Asset management ▪ Incubation and
– Affluent/High Net
Affluent/High Net • New countries… e.g.,
N i ▪ P i i li
Principal investment development of new
d l f
worth (HNI)
– Mass market ‐ Kenya and private equity businesses
– Enterprise ‐ Ghana etc ▪ Securities services
– Local government ▪ Global custodianship
▪ Public sector ▪ Research
– Federal government
– State government
Mapping to ▪ FirstBank of Nigeria ▪ FBN Bank UK ▪ FBN Insurance Brokers ▪ FBN Capital ▪ First Pension Custodian
present ▪ FBN Bureau de ▪ First Trustees First Registrars
entities Change (BdC) ▪ First Funds ▪ FBN Mortgages
▪ Foreign rep offices
Foreign rep offices ▪ FBN Securities
FBN Securities ▪ FBN Microfinance Bank
FBN Microfinance Bank
36