First Bank annual report 2010

1. FirstBank’s core purpose is to be The clear leader and remain true to our name by providing the best financial
services possible
FirstBank has its headquarters in Lagos, Nigeria and an international presence in London, Paris, Johannesburg, Beijing, China and
expanding. Drawing from our experience spanning 117 years, we continue to consolidate our footprints in Nigeria, diversify and transform our
bank and build scale internationally. The Bank enjoys natural premium respect and first-mention privilege in the market (excellent corporate
governance structure underpinned by strong institutional processes, systems and controls, history of seamless leadership successions,
sound risk management framework, recipient of several globally recognised awards and experienced management).
The FirstBank Group is well diversified with contribution to the national economic development through capital market operations, life
assurance and insurance brokerage, bureau de change, asset management and investment banking, private equity/venture capital, pension
fund custodian management, registrarship, trusteeship, mortgage and microfinance subsidiaries. Within the Bank, we are structured along
institutional, corporate, retail and public sector customer segments; giving us the ability to drive deeper product penetration and develop
sector expertise with a relationship management based on deep understanding of customer needs.
With a primary listing on the Nigerian Stock Exchange, issued shares of about 32.6 billion and one of the highest shareholders’ funds in the
Nigerian landscape, FirstBank is owned by over 1.3 million shareholders across the globe and has an unlisted Global Depository Receipt
(GDR) programme.
The Bank continues to enjoy strong ratings from Standard & Poor’s, Fitch, Global Credit Rating and Agusto & Co. During the year, FirstBank
attained ISO/IEC 27001: 2005 Information Security Management Systems (ISMS) certification from the British Standards Institution (BSI)
indicating its strictest adherence to security and protection of its over five million customers through over 600 locations in Nigeria.
____________________________________________________________________________________________________
Maintaining Leadership
• Significant banking sector market share and still growing Share Price Performance
industry scale currently at 13% of total assets and 15% of
total loans
A
• Issued shares: 32.6 billion units l
Share price Performance l
• Market Cap as at December 31, 2010: N448.04bn (US$3.1bn) N
S
h
• Daily average trading liquidity: 24,811,990 units (Jan – Dec 2010) a
r
0.79 e
Institutions
I
• Shareholding 38.60 Retail n
d
Structure 60.61 Govt Related
e
Holdings
x
Credit Ratings
Report Date National International Outlook
Long term Short term Long term Short term
____________________________________________________________________________________________________________
Standard & Poor’s August 2010 ngA ngA-1 B+ B Negative
____________________________________________________________________________________________________________
Fitch October 2010 A+ F1 B+ B Stable
____________________________________________________________________________________________________________
GCR August 2010 AA- A1+
____________________________________________________________________________________________________________
Agusto & Co October 2010 A+ Stable

2. The primary focus in the near term is the growth and 3Q10 Financial results at a Glance
transformation of the Bank while creating future growth Strong & liquid balance Sheet
options for the Group • 17% Capital Adequacy Ratio, significantly above regulatory
SEQUENCING GROW T H SYST EM AT ICAL LY requirements of 10%,Tier 1 capital ratio of 15.4%
FirstBank Group – Priorities by grow th horiz on • Stable net loan to deposit ratio of 74.1% (Sept 09: 72.5%)
Build scale internationally…
• Liquidity ratio of 64.7% (Sept 09: 78.7%)
• Non-performing loan ratio of 5.8% (Sept 09: 8.1%)
Diversify group and
transform bank…
Business volume
• Significant SSA
Consolidate in expansion and grow th in • QoQ and YoY growth in deposit of 8.82% and 29.38%
bank ing with s elec tiv e
Nigeria… • Drive bank transform ation
to c om pletion international foray s in non-
respectively. YTD growth of 15.8% to N1.6tn
• Build scale in inv . bank ing
•
bank financ ial s erv ic es
Foc us on driving
• Encouraging lending growth up; 4.98% QoQ, 5.36% YTD and
and ins urance and leverage
• Driv e organic and inorganic group synergies econom ies of scale and 32% YoY to N1.6tn
expansion • Comm enc e SSA regional scope ac ross international
• Continue agg res s iv e bank expansion in earnes t network and portfolio of
transform ation
• Struc ture for grow th in inv.
bus ines ses Earnings
banking and insurance
• Rep offic e expans ion; initial
• Resilient gross earnings at N177bn, down 10.57% YoY
SSA exploration s • Improved mix of earnings with non-interest income contributing
Short term M edium term Long term
23% (Sept 2009: 17.6%)
The Transformation initiatives are organized along four
strategic themes Profitability
• Expanding net interest margins
VISION
BE THE CLEAR LEADER
• Profit before tax of N40.7bn.(Year to Sept 09: N6.6bn loss)
AND NIGERIA’S BANK OF FIRST CHOICE
• ROAE: 14.1%
MISSION
TO REMAIN TRUE TO OUR NAME BY PROVIDING THE BEST FINANCIAL SERVICES POSSIBLE
• ROAA:1.9%
GROUP STRATEGIC PRIORITIES
• Cumulative earnings per share of N1.33 from (Year to Sept 09:
(N0.43))
Business line expansion International expansion Restructuring for growth Sequencing growth
Focusing core banking on Continuing modest Restructuring the Group’s systematically
profitable growth and the
Group on strong growth
expansion in the
deployment of international
operating model to
optimally drive its strategy
Structurally and timely
sequencing growth
Financial highlights
businesses representative offices to with the right management initiatives and priorities
major strategic oversight and governance over the planning horizon
finance/trade hubs. Total Assets (N’bn)
2 ,4 2 4
19.23%
BANK STRATEGIC PRIORITIES 2 ,2 9 2 2 ,2 6 2
2 ,1 7 2
1 ,9 7 4 2 ,0 3 3
Growth
Attain full benefits of scale
Service Excellence
Drive unparalleled service
Performance management
Deliver unmatched results
Talent management
Become a hub for the Sept 2010:
and scope by accelerating levels by developing by creating a performance best industry talent;
growth and diversification world-class institutional culture with clear individual cultivate a highly N2,424billion
of assets, revenue and processes, systems and accountability at all levels. motivated, capable and
profit. capabilities. entrepreneurial
workforce.
Sept 2009:
N2,033billion
Group structure Q 1 '0 9 H 1 '0 9 9 m th s '0 9 Q 1 '1 0 H 1 '1 0 9 m th s '1 0
Deposit liabilities (N’bn)
FIRSTBANK FBN BANK (UK)
LIMITED
1 ,5 5 0
29.38%
1 ,4 0 7 1 ,4 2 7
1 ,3 3 9
FBN BANK (UK) 1 ,1 9 8
PARIS BRANCH
1 ,1 5 0
Sept 2010:
FBN FBN FIRSTBANK FIRSTBANK
N1,550billion
FIRST FIRST FBN FIRST FBN
FIRST FIRST FBN LIFE BEREAU DE MICROFINANCE SOUTH AFRICA CHINA
FUNDS MORTGAGES PENSION CAPITAL
REGISTRARS INSURANCE ASSUARANCE TRUSTEES
CHANGE BANK (REP OFFICE) (REP OFFICE)
BROKERS CUSTODIAN
Sept 2009:
FBN
SECURITIES
N1,198billion
Q 1 '0 9 H 1 '0 9 9 m th s'0 9 Q 1 '1 0 H 1 '1 0 9 m th s'1 0
Gross Earnings (N’bn)
New bank structure to drive deeper segment N o n -in te re s t in c o m e 196
41.60%
specialisation In te re s t In c o m e
34
177
41
125 122 Sept 2010:
22
28 N177billion
61 162 62
136
11 12
103 94 Sept 2009:
50 50
N125billion
Q 1 '0 9 H 1 '0 9 9 m th s'0 9 Q 1 '1 0 H 1 '1 0 9 m th s'1 0
Profit on ordinary activities after tax (N’bn)
1,266.67%
41
32
Sept 2010:
N41billion
14 15
12
Sept 2009:
3
N3billion
Q 1' 09 H 1 '09 9 m th s ' 09 Q 1' 10 H 1'1 0 9 m t hs '1 0

3. Financials Associate and Affiliate Companies
FIRST BANK OF NIGERIA PLC Associate
UNAUDITED BALANCE SHEET AS AT: The Group The Bank
Sep. 2010 Dec. 2009 Sep. 2010 Dec. 2009 Kakawa Discount House Ltd
Associates and Affiliate Companies N'million N'million N'million N'million
Assets
Cash and balances with central banks 66,356 70,332 65,775 67,576 Affiliate
Treasury bills
Due from other banks
25,253
510,459
14,219
514,193
25,203
213,234
14,219
255,902
Africa Finance Corporation
Loans and advances to customers 1,139,499 1,078,452 1,034,059 1,022,486 African Export- Import Bank
Advances under finance lease 8,754 10,835 8,754 10,835
Investment 490,252 289,848 474,501 303,889 Banque Internationale du Benin
Managed funds 54,917 84,630 - - Consolidated Discounts Ltd
Other assets 69,334 55,226 62,621 51,245
Investment property 6,639 6,631 - - Nigerian Interbank Settlement Scheme Plc
Property and equipment 52,948 47,980 51,446 46,302 Valucard Nigeria Ltd
2,424,410 2,172,346 1,935,592 1,772,454
Liabilities
Customer deposits 1,550,425 1,339,142 1,366,649 1,236,599
Due to other banks
Liability on investment contracts
226,552
59,207
173,280
148,224
1,904
-
65,087
-
Contact details
Other borrowings 72,820 35,473 72,820 35,473
Tax-liability
Other liabilities
23,375
182,474
30,237
136,432
19,530
160,102
25,092
92,716
Head, Investor Relations
Oluyemisi Lanre-Phillips
2,114,852 1,862,788 1,621,004 1,454,967
Equity Email: investor.relations@firstbanknigeria.com
Ordinary share capital 16,316 14,504 16,316 14,504 Tel: +234 1 9052720
Reserve 293,242 295,054 298,272 302,983
Total Equity 309,558 309,558 314,588 317,487
First Bank of Nigeria Plc
Total equity and liabilities 2,424,410 2,172,346 1,935,592 1,772,454
Samuel Asabia House
Acceptance and Gurantees 1,307,870 972,601 577,966 431,316 35 Marina
Lagos
Total Assets and Contingents 3,732,281 3,144,947 2,513,559 2,203,770
P.O. Box 5216
UNAUDITED PROFIT & LOSS FOR THE PERIOD: The Group The Bank Nigeria
FOR THE PERIOD ENDED SEPTEMBER 30, 2010 9 Months 9 Months www.firstbanknigeria.com
Sep-10 Sep-09 Sep-10 Sep-09
N'million N'million N'million N'million
Gross earnings 177,065 197,988 154,736 172,729
Interest earnings 136,312 153,998 121,632 138,920
Interest expense (46,728) (60,347) (38,049) (49,284)
Net interest income & commissions 89,584 93,650 83,583 89,637
Other income 40,753 43,990 33,103 33,809
Operating Income 130,337 137,640 116,687 123,445
Operating expenses (83,931) (71,252) (76,769) (71,570)
Provision for Risk Assets (5,704) (73,049) (7,174) (36,482)
Net Profit before Tax and Exceptional Items 40,703 (6,660) 32,743 15,394
Exceptional Items - - - -
Net profit(loss) before tax 40,703 (6,660) 32,743 15,394
Taxation (8,141) (1,332) (6,549) (3,079)
Profit after tax 32,562 (7,992) 26,195 12,315
Key Performance Information
Total non-performing loans and advances 69,759 74,382 64,432 69,302
Total non-performing loans to total loans and advances 5.87 8.17 5.97 8.04
EPS (Basic) Naira 1.33 (0.43) 1.07 0.66
EPS (Diluted) Naira 1.33 (0.43) 1.07 0.66
Total loans and advances (Gross) 1,189,403 910,176 1,079,689 861,641
No of shares 32,632 24,862 32,632 24,862
Board of Directors
Chairman
Prince Ajibola Afonja
Executive
Stephen Olabisi Onasanya - Group Managing Director/CEO
Kehinde Lawanson
Bello Maccido
Remi Odunlami
Non-Executive
Tunde Hassan-Odukale
Obafemi Adedamola Otudeko
Ibiai Ajumogobia
Lawal Kankia Ibrahim
Ibrahim Dahiru Waziri
Khadijah Alao Straub
Mahey Rafindadi Rasheed
Ibukun Abiodun Awosika
Ebenezer Adewale Jolaoso
Ambrose Feese
General Disclaimer
This material is solely for information purposes, and may be amended and/or supplemented without notice at any time. FirstBank is not providing any investment advice, nor offering any advisory services through this document. Recipients should
exercise discretion before relying on the statements and information contained herein because such statements and information do not take into consideration the particular circumstances or needs of any specific client. Accordingly, FirstBank
makes no representation or warranty as to the accuracy of the information contained herein and shall have no liability, howsoever arising to the maximum extent permitted by law, for any loss or damage, direct or indirect, arising from the use of
this information by you or any third party relying on this document.
Last updated: December 2010