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Investor call presentation

Full Year 2010 & Q1 2011 Results


Forward looking statements
This presentation contains or incorporates by reference ‘forward-looking statements’ regarding the belief or current
expectations of Diamond Bank, the Directors and other members of its senior management about the Group’s businesses
and the transactions described in this presentation. Generally, words such as ‘‘could’’, ‘‘will’’, ‘‘expect’’, ‘‘intend’’,
‘‘anticipate’’, ‘‘believe’’, ‘‘plan’’, ‘‘seek’’ or similar expressions identify forward-looking statements.

These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and
assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control
of the Company and/or its Group and are difficult to predict, that may cause actual results to differ materially from any
future results or developments expressed or implied from the forward-looking statements. Such risks and uncertainties
include, but are not limited to, regulatory developments, competitive conditions, technological developments and general
economic conditions.
conditions The Bank assumes no responsibility to update any of the forward looking statements contained in
this presentation.

Any forward-looking statement contained in this presentation based on past or current trends and/or activities of Diamond
Bank should not be taken as a representation that such trends or activities will continue in the future. No statement in this
presentation is intended to be a p
p profit forecast or to imply
p y that the earnings
g of the Company
p y for the current yyear or future
years will necessarily match or exceed the historical or published earnings of the Company. Each forward-looking
statement speaks only as of the date of the particular statement. Diamond Bank expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any
change in Diamond Bank’s expectations with regard thereto or any change in events, conditions or circumstances on which
any such statement is based.

2
Outline

• Opening Statement and Strategy (by Alex Otti, GMD)

• 2010 Financial Performance (by Abdulrahman Yinusa, CFO)

• Business Segments Performance (by Abdulrahman Yinusa


Yinusa, CFO)

• Q1 2011 Financial Performance (by Abdulrahman Yinusa, CFO)

• Concluding Remarks (by Alex Otti, GMD)

• Appendix

3
2010 Performance Analysis
(N’Bn) Bank Subsidiaries Group Comments

Gross Earnings 85.7 5.3 91.0 The high provision for losses of N22.9
billion in the Profit and Loss Account was
due to the following:
Operating Income 70.3 3.9 74.2
Bank (provision for losses of N17.7
billion)
Operating Expenses (43.1) (3.5) (46.6)
From existing NPLs (charge of N9.9 billion)

F
From new NPLs
NPL (charge
( h off N7.8
N7 8 billion)
billi )
Operating Profit 27.2 0.4 27.6
Subsidiaries (provision for losses of N5.2
Provision for Losses (17.7) (5.2) (22.9) billion)
Underwriting commitment loss of N3.7
billion in our investment banking
Profit/(Loss) Before Tax 9.5 (4.7) 4.8 subsidiary (Diamond Capital)

Diminution in collateral value of N0.7


billion relating to investment in hospitality
business by Diamond Capital

Others – N0.8 billion

4
2011 Provisioning: Our preliminary view

N30 billion projected provisions in 2011 Impact on P&L (N’Bn)


The initial estimated p
provisions for losses in 2011 are
broken down as follows: Operating Profit 35.0 / 40.0

Impact of divestment from subsidiaries ~ N10.0bn


Provision for Losses (Circa) ~ (30.0)
Net impact from existing NPLs ~ N12.0bn

Net impact from new NPLs ~ N4.0bn Profit/(Loss) Before Tax 5.0 / 10.0

General provision on performing loans ~ N4.0bn

Comments

New management’s preliminary view on the impact


of provisioning in 2011 will be updated after the team
completes its first ‘100 days’ at the time of the half
year results conference call expected in July

5
Overview
Core Business Segments Coverage and Channels
The Bank’s Business Segments are split between Regional Strong presence in Nigeria – 215 branches across
Business and Corporate Banking as follows: 36 states including the FCT (target 300+ branches)
West Africa Expansion
Regional
g Business
Benin Republic with over 15 branches
Specifically our regional business is made up of Retail
Togo, Senegal and Cote D’Ivoire
Banking and Middle Market Corporate Banking, which we
call National Corporate: ATMs, Contact Centre
Retail Banking Internet Banking, Mobile Banking
o Consumers
o Micro, Small and Medium Sized Enterprises (MSMEs) Focus on Core Business
National Corporate Evolving into an international commercial bank from
o Middle Market Corporates a universal bank.; disposing of non-bank
Corporate
p Banking g subsidiaries:
We are a niche player in Corporate Banking focusing on the ADIC Insurance Ltd, Diamond Capital and
following market segments: Financial markets Ltd, Diamond Securities Ltd,
o Multinational Corporations Diamond Pension Fund Custodian Ltd,
o Specialised Industries Diamond Mortgages Ltd and Diamond
o Public Sector Institutions Registrars Ltd
o Financial Institutions
Current Credit Rating
Fitch: A-, GCR: A-

6
2011 Strategic Priorities
Corporate Banking People change
Reverse the recent decline Risk management
Accelerate growth going forward Relationship management
Senior
S i staff
t ff optimization
ti i ti including
i l di att
Retail Banking Executive level
Consolidate low-cost deposit mobilization Fewer and better
Sustain a higher than average NIM
C ti
Continue risk
i k assett growth
th att low
l d
delinquency
li llevels
l P j
Project S kl
Sparkle
Opex has been stabilized
Customer experience Continue to yield cost reductions
Customer centric organization
More improvements in customer experience
Risk management
Very experienced new Head of Risk
Discipline
Significant strengthening across the
Adherence to process and policy
board
Implement consequence management – clear
More intensity and focus on recoveries
accountability
of NPL’s

7
Improve Shareholders’ Value
Operating Profit and PBT (N’Bn)
Deposits (N’Bn) ROE
35.0/40.0 2009 2010 2011 est 2012 est
24.6 27.6 > 1.5%
1.2%
48
4.8 5 0/10 0
5.0/10.0

-23.8

2009 2010 2011 est 2012 est

Operating Profit PBT -11.1%

Cost of Risk Comments

Outlook for 2012 is for a return to normal provisioning


10.4%
Tier 2 capital will be used to finance additional capital
6.4% requirements in the foreseeable future
< 5.2%

ROE to reach high teens in 2012

2010 dividend per share of 15 kobo in line with our


2009 2010 2011 est 2012 est dividend policy

8
Outline

• Opening Statement and Strategy (by Alex Otti, GMD)

• 2010 Financial Performance (by Abdulrahman Yinusa, CFO)

• Business Segments Performance (by Abdulrahman Yinusa


Yinusa, CFO)

• Q1 2011 Financial Performance (by Abdulrahman Yinusa, CFO)

• Concluding Remarks (by Alex Otti, GMD)

• Appendix

9
Group Operational Highlights
Operating Profit (QoQ, N’Bn)
Deposits (N’Bn) Cost of Funds

7.4%
8.5
7.4 6.4%
6.8
4.9 4.5%
3.7% 3.4%

-1.4 D
Dec. 2009 M 2010
Mar. J
Jun. 2010 S t 2010
Sept. D
Dec. 2010
Dec. 2009 Mar. 2010 Jun. 2010 Sept. 2010 Dec. 2010

Cost to Income Ratio Net Interest Margin

70.9%
70.1% 9.7% 10.1%
9.2%
7.4% 7.9%
66.4%
64.4%
62.8%

Dec. 2009 Mar. 2010 Jun. 2010 Sept. 2010 Dec. 2010 Dec. 2009 Mar. 2010 Jun. 2010 Sept. 2010 Dec. 2010

10
Group Financial Highlights
Strong Operating Income – N74.2 billion in Dec. 2010 (Dec 2009 – N68.8 billion –12 months)
Earnings Net Interest Margin (NIM) still strong – above 10%
Return to profitability

Improving risk asset quality


Asset Quality
Non–performing loans ratio down to 14.8% in Dec 2010 (Dec 2009 – 18.2%)

Strong capital and liquidity positions


Funding and Liquidity Capital Adequacy Ratio of 16.6% (Bank – 18.7%) against CBN benchmark of 10%
Liquidity ratio of 42% against Central Bank benchmark of 25% (now 30%)

Savings accounts volume up 112% to N98 billion (Dec.


(Dec 2009 – N46 billion)
Strong Growth
Low-cost deposits – 73% of total deposits (Dec. 2009 – 51%)

Efficiency and Cost to income ratio down to 63% (2009 – 71%)


Profitability Stable cost base of +5% growth despite double digit inflation

11
Profit and Loss
Group Group Group Bank Bank Bank
Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2009 YoY Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2009 YoY
(8 months) (12 months) (8 months) (12 months)
N' billion N' billion N’ billion % N' billion N' billion N’ billion %
Gross Earnings 91.0 67.7 108.0 (15.7) 85.7 64.7 102.6 (16.5)

Net Interest Income 49.0 25.8 42.2 16.1 49.2 24.7 40.3 22.1

Other Income 25.2 16.6 26.6 ((5.3)) 21.1 15.6 24.6 ((14.2))

Operating Income 74.2 42.5 68.8 7.8 70.3 40.2 64.9 8.3

Operating Expenses (46.6) (30.1) (44.2) (5.4) (43.1) (27.4) (38.9) (10.8)

Operating Profit 27.6 12.4 24.6 12.2 27.2 12.8 26.0 4.6

Provision For Losses (22.9) (24.7) (48.4) 52.7 (17.7) (21.9) (42.3) 58.2

Profit / (Loss) Before Tax 48


4.8 (12 4)
(12.4) (23 8)
(23.8) 95
9.5 (9 1)
(9.1) (16 4)
(16.4)

Profit / (Loss) After Tax 1.3 (8.2) (16.8) 6.5 (4.9) (9.7)

12
Balance sheet
Group Group Bank Bank
YoY YoY
Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2009
N' billion N' billion % N' billion N' billion %
Liquid Assets 145 7
145.7 181 2
181.2 (19 6)
(19.6) 122 4
122.4 165 1
165.1 (25 9)
(25.9)

Risk Assets 312.2 329.8 (5.3) 312.9 323.8 (3.4)

Other Assets 26.6 33.4 (20.4) 11.7 21.9 (46.6)

Investments 73.5 68.4 7.5 67.0 58.3 14.9

Fixed Assets 36.8 37.6 (2.1) 34.4 34.9 (1.4)

Total Assets 594.8 650.4 (8.5) 548.4 604.0 (9.2)

Deposits 412.0 482.1 (14.5) 378.7 449.0 (15.7)

Other Liabilities 47.4 43.2 9.7 24.5 25.6 (4.3)


Borrowings 28.3 19.0 48.9 28.3 19.0 48.9
Equity 107.1 106.1 0.9 116.9 110.4 5.9
Total Liabilities 594.8 650.4 (8.5) 548.4 604.0 (9.2)
Off Balance Sheet 228.8 124.0 84.5 155.4 55.3 181.0

Balance Sheet Size 823.6 774.4 6.4 703.8 659.3 6.7

13
Group Balance Sheet Structure
Total Assets Trend (N’Bn) B
Balance
D l it Sh
DepositsSheet
(N’Bt Si
(N’Bn)Size
) (N’B
(N’Bn))
650 595
71 824
64 774
482
412
330 312

181 330 312


146

Dec. 2009 Dec. 2010


Cash and short term investments Dec. 2009 Dec. 2010
Loan and Advances to Customers
Investments Securities Total assets and Contingents Deposits Loans & Advances
Fixed and Other Assets

Total Liabilities Trend – Funding Mix (N’Bn) Comments


650 Balance sheet size up p 6.4% to N824 billion in Dec. 2010 ((Dec
595
106 2009 – N774 billion. The growth was largely due to increase in
62 107
Contingents by 84.5% to N229 billion
76
Drop in deposit was to rebalance the cost structure of the
482 balance sheet, and minimize deposit concentration
412
Low-cost deposits
p now accounts for over 73% of total deposits
p
(Dec 2009 – 51%)
Dec. 2009 Dec. 2010

Customers Deposits Other liabilities Shareholders funds


14
Group Loan Portfolio Analysis
Gross loan analysis by maturity – Dec
Chart Title Gross
Loans byLoans
2010 by –Facility
Category 2010 Gross
Loans byLoans
2009 by –Facility
Category 2010
2010 (2009) Type – 2010 Type – 2009
N345Bn (N374Bn)

Dec
D 2010 0 - 30days 30%
(38%)
Dec 2009 1-3 months 16%
(29%)

3 6 months
3-6 o t s 8% 23%
73% 22% 69%
(3%)

6-12 months 10%


(6%) 8%
5%
Over 12 months
36% (24%)

Comments
64% off the
th loan
l tf li maturity
portfolio t it falls
f ll within
ithi 12 Term loans Overdrafts
months while 36% are medium to long term loans Term loans Overdrafts Other Loans
Other Loans
10% of the loan portfolio relates to an exposure in
power generation
15
Group Lending
Gross Loan Breakdown –Dec-10
Dec 2010 (2009) Gross Loans, Non Performing Loans (N’Bn)
N345Bn (N374Bn)
400 374 345
341

1% 1% 200
General Commerce 21% (19%)
1% 21% 68 64 51
2% Oil & Gas 18% (16%)
2% Manufacturing 16% (13%) 0
Dec. 2009 Jun. 2010 Dec. 2010
R l Estate
Real E t t & Constr.
C t 11% (6%)
5%
Power 8% (8%) Gross Loans Non Performing Loans
18%
Consumer Credit 7% (4%)
6%
Communication 6% (11%) Loan to Deposit Ratio
Others 5% (6%)
7% 83.7%
Transport 2% (3%) 77.5% 74.0%
Capital Market 2% (6%)
8% 16%
Finance & Insurance 1% (3%)
11%
Agriculture 1% (4%)
Mortgage 1% (1%)

Dec. 2009 Jun. 2010 Dec. 2010

16
Group NPL Analysis
NPL by Sector (Dec. 2010) NPL by Category
Oil & Gas (Energy) N68.2Bn N51.1Bn
13% General Commerce 34% 40%
27% 12% g
Manufacturing
24% 33%
Transp & Comm
N51.1Bn 6%
Capital Market 42%
4% 27%
3% Real Estate & Mortgage

34% 1% Others Dec. 09 Dec. 10


Consumer Credit Substandard Doubtful Lost

NPL by Sector (Dec. 2009)

Oil & Gas (Energy)


21%
Manufacturing
18% 10% Transp & Comm
Capital Market
N68.2Bn
Real Estate & Mortgage
2% 20%
3% Others
10%
Consumer Credit
16%
Agriculture
17
Group Asset quality
NPL Ratio Coverage Ratio
18.2%
14.8% 64.5% 64.1%

Dec. 2009 Dec. 2010 Dec. 2011 Dec. 2009 Dec. 2010 Dec. 2011

Comments Cost of Risk


NPL ratio improved to 14.8% in 2010 (Dec. 09 – 18.2%)
Cost of risk also improved to 6.4% in Dec. 2010 (Dec. 09 –10.4%), 10.4%
target < 5% in 2011
Sold to AMCON N11 billion in 2010 6 4%
6.4%
N20 billion currently in the process of being sold to AMCON, while
additional N20 billion is being projected to be sold in Q3 2011
AMCON sale impacted marginally on Profit and Loss

Dec. 2009 Dec. 2010 Dec. 2011

18
Group Capital and Liquidity
Capital Adequacy Liquid Assets –Dec. 2010 (2009)

19.5%
16.6% Treasury Cash &
Bills 35% Equivalent
(5%) 36% (56%)
10% 10%
Placement
29% (39%)
Dec. '2009 Dec. '2010

Actual CAR Stat. Minimum Requirement

Liquidity Comments
H lth liquidity
Healthy li idit att 42%,
42% above
b statutory
t t t minimum
i i off 25%
41.5% Tier 2 capital inflow expected to facilitate growth and promote
37.6%
capacity for transaction

The need for Tier 2 capital inflow will be moderated by capital


25% 25% release following
g the sale of subsidiaries

Tier 1 increase not planned in the foreseeable future

Dec. '2009 Dec. '2010


Liquidity Stat. Minimum Requirement 19
Bank Funding Mix & Deposits Composition
Building Stable Low Cost Funding Base Deposit by Type
N449.0bn
41.1 N378.7bn
36% 26% 26%
50% 44%
91.4
226.1
226 1
98.3
64% 74% 74%
50% 56%
181.8 189.0

Dec. 2009 Mar. 2010 Jun. 2010 Sep. 2010 Dec. 2010 Dec. 2009 Dec. 2010
Time Deposits Demand & Savings Deposits Savings Time Demand

Deposit Mix, By Business


Loans &Segments
Advances –2010 (2009) Comments
Increasing influence of Retail Banking leading to
National rising low cost deposit and reduced concentration
Corporate 29% risk
(37%) Growth of over 100% YoY recorded in savings
Retail Banking
47% (23%) account deposits
Corporate Over 50% drop recorded in time deposits
Banking 24%
(40%)

20
Bank Revenue Composition
Revenue mix Cost of funds

24.0% 25.0% 7.7%


Non Int.
Income

3.4%
76.0% 75.0% Int.
Income

Dec. 2009 Dec. 2010 Dec. 2009 Dec. 2010

Yield on earning assets Net Interest


interest Margin
margin -QoQ
(NIM)

16.6% 10.6%
15.2%
7.4%

Dec. 2009 Dec. 2010 Dec. 2009 Dec. 2010

21
Bank Operational Highlights
Operating Profit (QoQ, N’Bn)
Deposits (N’Bn) Cost of Funds

8.1 6.7%
7.6
6.6
4 8%
4.8%
4.9 3.9%
3.4%

M 2010
Mar. J
Jun. 2010 sep. 2010 D
Dec. 2010
Mar. 2010 Jun. 2010 sep. 2010 Dec. 2010

Cost to Income Ratio Net Interest Margin

67.4% 10.6%
9.4% 9.9%
8.2%
63.7%
61.7% 61.4%

Mar. 2010 Jun. 2010 sep. 2010 Dec. 2010 Mar. 2010 Jun. 2010 sep. 2010 Dec. 2010

22
Bank Staff Productivity
Operating Income Per Staff Staff Cost to Total Cost
N’000
28,267
35 9%
35.9% 36.8%
23,312 33.9%
19,991

Dec. 2008 Dec. 2009 Dec. 2010 Dec. 2008 Dec. 2009 Dec. 2010

Key Operational Enhancements


Continued improvement expected as a result of full
implementation of Project Sparkle initiatives
Growth in staff productivity attributable to increase in
centralised processing

23
Outline

• Opening Statement and Strategy (by Alex Otti, GMD)

• 2010 Financial Performance (by Abdulrahman Yinusa, CFO)

• Business Segments Performance (by Abdulrahman Yinusa


Yinusa, CFO)

• Q1 2011 Financial Performance (by Abdulrahman Yinusa, CFO)

• Concluding Remarks (by Alex Otti, GMD)

• Appendix

24
Bank Business segment performance – snapshot
Deposits (N’Bn) Comments

175.8 176.7
154.8 163.2 Impressive growth of 61% in retail liabilities
110 8
110.8 110 0
110.0 111.9
111 9 Significant drop in volume
ol me of high cost corporate
90.1
75.4 fixed deposits

Dec. 2008 Dec. 2009 Dec. 2010

Retail Banking National Corporate (Middle Market) Corporate Banking

Deposits
Risk (N’Bn)
Assets (N’Bn)

203.0 Retail now 9% of total risk assets after 180%


173.5 174.6
increase (YoY)
135.3 140.6
111.1 National Corporate (Middle Market) remains the
27.2
6.0 9.7
d i t market
dominant k t segmentt
Dec. 2008 Dec. 2009 Dec. 2010

Retail Banking National Corporate (Middle Market) Corporate Banking


25
Nigeria’s fastest growing Retail Bank
Deposits
Retail (N’Bn)Fee Revenue (N’mn)
Monthly Retail Deposits
Deposits (N’Bn)to Total Deposits (%)
41% 47%
455 35%
30%
348 24%
317 313
242

Dec. 2009 Mar. 2010 Jun. 2010 Sept. 2010 Dec. 2010 Dec. 2009 Mar. 2010 Jun. 2010 Sept. 2010 Dec. 2010

Deposits (N’Bn) Comments

177 Retail Banking now contributes around one third of the bank’s income
161 and has a growing influence on the bank
bank’s
s results.
results
150
129
110 As our customer base grows, the recurring monthly fee income will
continue to grow giving consistent, steadily increasing fee income.
Daily product sales numbers were 50% higher in last quarter 2010
compared to 2008 – averaging 1,800 per day.
Growth in Retail liabilities has helped to push down COF and
Dec. 2009 Mar. 2010 Jun. 2010 Sept. 2010 Dec. 2010 increase in percentage of low-cost deposits to total deposits
We have a very effective Direct Sales Force of 1,000 outsourced
agents
26
Retail Risk Assets Growth
Retail Banking Risk Assets Trend (N’Bn) Comments
The growing retail customer asset base is helping the
27.2 bank to maintain “best in class” net interest margins
At the year end, retail assets accounted for about 9%
of group net assets. We anticipate that this will grow to
around 15% by the end of 2011
Delinquency levels are largely below expectations,
18.1
except for the small credit card portfolio where
delinquencies are now reducing.
13.1 Investment is being considered in Scoring and
11.7
Collections systems
9.7
Partnership in place with USAID, giving partial
guarantee support on medical equipment loans;
further partnerships will follow with major retailers on
point of sale financing and co-brand credit cards.

Dec. 2009 Mar. 2010 Jun. 2010 Sept. 2010 Dec. 2010

27
Outline

• Opening Statement and Strategy (by Alex Otti, GMD)

• 2010 Financial Performance (by Abdulrahman Yinusa, CFO)

• Business Segments
g Performance ((byy Abdulrahman Yinusa,, CFO))

• Q1 2011 Financial Performance (by Abdulrahman Yinusa, CFO)

• Concluding Remarks (by Alex Otti, GMD)

• Appendix

28
Group Operational Highlights – Mar 2011
Operating Profit (YoY, N’Bn)
Deposits (N’Bn) Cost of Funds

6.4 6.4%

49
4.9

2.2%

M 2010
Mar. M 2011
Mar.
Mar. 2010 Mar. 2011

Cost to Income Ratio Net Interest Margin

10.3%
70.1%
7.9%
65.2%

Mar. 2010 Mar. 2011 Mar. 2010 Mar. 2011

29
Profit and Loss – Mar 2011
Group Group Bank Bank
Mar. 31, Mar. 31, YoY Mar. 31, Mar. 31, YoY
2011 2010 % 2011 2010 %
N' billion N' billion N' billion N' billion Comments
Gross Earnings 20.3 24.5 (17.1) 19.3 22.7 (15.0) Bank operating profit up 31% to
N6.4 billion (YoY)
Net Interest Income 12.3 10.2 20.6 12.0 10.0 20.0
Stable cost base (group) of +2.6%
growth despite double digit
Other Income 5.9 6.3 (6.3) 5.2 5.0 4.0 inflation
The bank’s provision for losses of
Operating Income 18.2 16.5 10.3 17.2 15.0 14.7 N4.5 billion is made up of:
Impact of integration of
Operating Expenses (11.9) (11.6) (2.6 ) (10.8) (10.1) (6.9) Diamond Mortgages of N2.5
billion

Operating Profit 6.3 4.9 28.6 6.4 4.9 30.6 Accruals


A l for
f existing
i ti and
d new
NPLs of N2.0 billion

Provision For Losses (4.5) (2.9) (55.2) (4.5) (2.8) (60.7)

Profit / (Loss) Before Tax 1.8 2.0 (10.0) 1.9 2.1 (9.5)

Profit / (Loss) After Tax 1.1 1.5 (26.7) 1.2 1.7 (29.4)

30
Balance Sheet – Mar 2011
Group Group Bank Bank
YoY YoY
Mar. 31, 2011 Mar. 31, 2010 Mar. 31, 2011 Mar. 31, 2010
N' billion N' billion % N' billion N' billion % Comments
Liquid Assets 170.2
170 2 177.9
177 9 (4.3) 142.8 161.0
161 0 (11.3)
Bank’s risk asset volume up 1.2%
Risk Assets 327.0 326.1 0.3 319.3 1.2 to N323 billion (YoY), and up 3.3%
323.1
(QoQ)
Other Assets 31.3 62.9 (50.2) 14.9 48.5 (69.3) Although the bank’s deposit base
was down 4.9% to N411 billion
Investments 71.6 66 6
66.6 75
7.5 71 6
71.6 57 4
57.4 24 7
24.7 (Y Y) it wentt up 8% (QoQ)
(YoY), (Q Q)

Fixed Assets 36.7 40.3 (8.9) 34.3 37.7 (9.0) Contingent assets up 227% to
N151 billion YoY
Total Assets 636.8 673.8 (5.5) 586.7 623.9 (6.0)

Deposits 448.5 462.4 (3.0) 410.7 431.8 (4.9)

Other Liabilities 53.5 87.6 (38.9) 31.4 64.0 (50.9)


Borrowings 27.7 17.7 56.5 27.7 17.7 56.5
Equity 107.1 106.1 0.9 116.9 110.4 5.9
Total Liabilities 636 8
636.8 673 8
673.8 (5 5)
(5.5) 586 7
586.7 623 9
623.9 (6 0)
(6.0)
Off Balance Sheet 238.0 127.5 86.7 150.7 46.1 226.9

Balance Sheet Size 874.8 801.3 9.2 737.4 670.0 10.1


31
Key Performance Metrics – Mar 2011

Group Bank
Mar. 2011 Dec. 2010 Sept. 2010 Mar. 2011 Dec. 2010 Sept. 2010

NIM 10.3% 10.1% 9.7% 10.7% 10.6% 9.9%

NPL 14.4% 14.8% 16.8% 14.0% 13.7% 16.7%

Cost of funds 2.2% 3.4% 3.7% 2.0% 3.4% 3.9%

Coverage 72.1% 64.1% 82.5% 66.2% 60.1% 78.3%

Capital Adequacy 15.2% 16.6% 15.4% 17.2% 18.7% 16.6%

Li idit
Liquidity 42 .9%
9% 41 5%
41.5% 39 9%
39.9% 42 9%
42.9% 41 5%
41.5% 39 9%
39.9%
Cost to Income Ratio 65.2% 62.8% 64.4% 62.8% 61.4% 61.7%

32
Outline

• Opening Statement and Strategy (by Alex Otti, GMD)

• 2010 Financial Performance (by Abdulrahman Yinusa, CFO)

• Business Segments Performance (by Abdulrahman Yinusa


Yinusa, CFO)

• Q1 2011 Financial Performance (by Abdulrahman Yinusa, CFO)

• Concluding Remarks (by Alex Otti, GMD)

• Appendix

33
Diamond Bank – Setting a New Direction

2010 – A Challenging Year


Additional loan loss provisions on legacy loans, subsidiary losses negatively impacted performance
Underlying performance of the bank was strong despite legacy issues
Clear signs
g of recovery y that are key
y for future p
performance include:
o Growing SME franchise providing a strong NIM that is sustainable
o Stable inflation adjusted OPEX
o Strong operating profit growth

2011 – Concluding on Legacy Issues


The underlying operating performance of the bank remains strong as indicated by Q1 results
Continued drag from legacy loans and subsidiary disposals being addressed proactively
New management is already implementing a clear recovery plan to unleash growth potential and build on the
strong Diamond Brand:
o Rebuild corporate business
o Drive recoveries and unwind NPL
o Enhance risk management, processes and upskill team
o Reduced cost base and divest of unprofitable subsidiaries
o Drive retail business penetration
o Support growth ambition with Tier II capital

In 2012 we anticipate our return to normal provisioning and healthy ROE levels that will comfortably reach into
the high teens

34
Q&A

35
Outline

• Opening Statement and Strategy (by Alex Otti, GMD)

• 2010 Financial Performance (by Abdulrahman Yinusa, CFO)

• Business Segments Performance (by Abdulrahman Yinusa


Yinusa, CFO)

• Q1 2011 Financial Performance (by Abdulrahman Yinusa, CFO)

• Concluding Remarks (by Alex Otti, GMD)

• Appendix

36
Appendix – New Management Team Biographies
Alex Otti (GMD) joined Diamond Abdulrahman Yinusa joined Diamond
Bank from First Bank of Nigeria Bank as Chief Finance Officer
where he held the position of following the completion of his CBN
Executive Director. Prior to the ten appointment as Executive Director of
years he spent at First Bank Nigeria Finance and Strategy for
h held
he h ld managerial
i l and
d business
b i Fi b k
Finbank. Pi
Prior t
to th
the CBN
development positions at United appointment, he was Managing
Bank and Nigerian Merchant Bank Director/CEO of the United Bank for
Ltd. Africa subsidiary in Sierra Leone.

He started his banking g career in 1989 with Nigeriag He has accrued over two decades of high quality banking
International Bank Ltd, a subsidiary of Citibank N.Y, experience having previously worked in management
where he worked in Operations. Alex graduated from the positions for FSB International Bank, now part of Fidelity
University of Port Harcourt with a First class honours & UBA Plc. A graduate in Accounting from Ahmadu Bello
degree in Economics in 1988. He was subsequently University he also holds both an MSc in Economics and
awarded an MBA from the University of Lagos in an MBA from the University of Lagos. Abdulrahman is a
1994 Alex
1994. Al isi a member
b off the
th Institute
I tit t off Directors
Di t and
d fello of the Institute
fellow Instit te of Chartered Accountants
Acco ntants of Nigeria
Honorary Senior Member of Chartered Institute of and Chartered Institute of Bankers of Nigeria, is a
Bankers. He holds an honorary doctorate degree in certified member and Associate of the Chartered Institute
business administration, an alumnus of Harvard Business of Stockbrokers, Chartered Institute of Taxation, Nigeria
School and also trained at Stanford Business School, Institute of Management and he holds the Treasurer
California Wharton Business School (University of
California, Dealership Certificate. He has also attended the world
world-
Pennsylvania) and Columbia Business School, New York. class Advanced Management Programme at INSEAD,
Paris.

37

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