Investor Call Presentation Full Year 2013 & Q1 2014 Results - PowerPoint PPT Presentation

Investor Call Presentation Full Year 2013 & Q1 2014 Results 14 APRIL 2014

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. 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 profit forecast or to imply that the earnings of the Company for the current year 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 • Executive Summary (by Dr. Alex Otti, GMD) • Strategy & Business Update (by Dr. Alex Otti, GMD) • FY 2013 Financial Performance (by Abdulrahman Yinusa, CFO) • Q1 2014 Financial Performance (by Abdulrahman Yinusa, CFO) • Concluding Remarks (by Dr. Alex Otti, GMD) 3

Overview  The global economic recovery remained weak despite the US Federal Reserve tapering which further depressed economic activities in emerging markets. The World Economy  Global economy grew 3.0% in 2013, and forecast to grow by 3.7% in 2014; driven by recovery in advanced economies.  The Nigerian economy grew by approximately 6.8% in 2013. Nigeria remains an attractive investment destination as the on-going transformation in the real sector is poised to deliver sustainable growth in The Nigerian Economy the mid to long term.  The recent rebasing of the GDP (to $510bn) offers fresh imperatives for investment opportunities.  The ¡Bank’s ¡full ¡year ¡2013 ¡and ¡Q1 ¡2014 ¡results ¡point ¡to ¡a ¡healthy ¡and ¡sustainable ¡growth. ¡Our ¡strategy ¡ remains to consolidate our dominance in the Retail/SME space while remaining relevant in the Our Strategy Corporate space.  We will continue to offer unequalled customer experience within the financial inclusion framework.  Despite the challenging operating environment, we will continue to explore all opportunities to grow our business and market share as we leverage on our growing customer relationships. Outlook  We remain positive on our retail banking strategy, even though our business and corporate banking segments remain significant business drivers. 4

Operating Environment  Average GDP growth rate of 6.8% in 2013 (7.7% in Q4 2013)  Agriculture, Wholesale & Retail trades and Services remain key drivers of GDP Sound and Stable  Average Headline Inflation of 8.5% in 2013 year-on-year (8.0% in Dec. 2013) Macroeconomic Environment  Stable official exchange rate – N155/N160; albeit the Naira came under pressure at the parallel market segment.  Reduction in Commission on Turnover (COT) from N5/mille to N3/mille (April 2013); N2/mille (Year 2014); N1/mille (Year 2015); and N0/mille (year 2016)  Increase in the savings interest rate to 30% of Monetary Policy Rate (MPR) – 3.6%  Increase in Cash Reserve Requirement (CRR) charge on Public Sector funds to 50% ( August 2013), Regulatory Environment and 75% (February 2014)  Increase in CRR charge on Private Sector funds to 15% from 12% (April 2014)  Cashlite policy – Lagos (April 2012); 6 States (Oct. 2013); Nationwide (to commence in July 2014) 5

Nigerian Economy – Key Trends GDP Growth Rates, % YoY Inflation Rate, % YoY 13.9% 10.9% 12.2% 7.9% 7.4% 6.8% 6.6% 8.5% 2010 2011 2012 2013 2010 2011 2012 2013 Interest Rates, % Private Sector Credit Growth, % YoY Monetary policy rate Standing lending rate Standing deposit rate 16 14 14 12 10 12 8 6 10 4 8 2 0 6 -2 4 -4 -6 2 -8 0 -10 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 6

Diamond Bank at a glance Key Highlights Background  Diamond Bank commenced operations in March 1991; assumed the Countries with Nigeria ¡(255 ¡branches), ¡Benin ¡(19), ¡Cote ¡d’Ivoire ¡ universal banking status in Feb. 2001; and was listed on the NSE in Banking Presence (3), Senegal (4), Togo (4) and UK (1) May 2005. Nigeria Stock Exchange – 2005 Listings London PSE – 2008  The Bank acquired Lion Bank in October 2005 and listed its GDRs on the Professional Securities Market of the London Stock Exchange in Market N91.9 billion (As of 31 March 2014) January 2008. Capitalisation*  The Group has 286 branches across Nigeria, Benin Republic, Cote Ratings Fitch: BBB+ (B, Stable - Int’l), ¡GCR: ¡A - d’Ivoire, Senegal, Togo and the United Kingdom. Number of  In line with the new CBN banking model, Diamond divested from its 3.4 million accounts subsidiaries and obtained licence to operate as a commercial bank with international authorization. ATMs/POS 689 / 10,500 Staff Head Count 4,366 (Group) Current Group Structure Alternative ATMs, POS, Internet, mobile Diamond Delivery Channels Bank Direct Sales Force 1,567 Diamond Bank Diamond Diamond Bank Strategic Partners IFC, USAID, WWB, EFINA, MTN Benin S.A. Pension Fund UK Custodian Appointed by DFID as one of the four African Recognitions banks to manage $7.1 million financial inclusion project Diamond Bank Diamond Diamond IFC’s ¡Award ¡for ¡Best ¡Issuing Bank in Su — Saharan Cote ¡d’Ivoire Bank Senegal Bank Togo Africa (under IFC Global Trade Finance Program); Awards Best Credit card in Nigeria; Best Bank in Oil & Gas 7 investment

FY 2013 Group Performance Summary P & L ( N’Bn ) FY 2013 FY 2012 % Growth Comments Gross earnings grew 30% to N181 billion, driven by the growth in Gross Earnings 181 139 30 balance sheet and other transactional activities. PBT grew by 19% to N32bn from N27bn in December 2012. Operating Income 140 113 24 Customer deposits continued to drive balance sheet growth. Profit Before Tax 32 27 19 Balance Sheet FY 2013 FY 2012 % Growth Total Assets 1,519 1,178 29 Loans to customers 689 585 18 Deposits 1,206 910 33 8

Forecast for 2014 Profitability Deposits ¡(N’Bn) Impact on P&L ( N’Bn ) Operating Profit and PBT ( N’Bn ) 55 Operating Profit 55 55 45 35 32 Provision for Losses 28 - Direct Provision (Circa) ~ (20) 2012 2013 2014 est Profit/(Loss) Before Tax 35 Operating Profit PBT ROAE Comments 2011 2013 2014 est. 2012 ROE of 23% achieved in 2013 financial year > 20% 23.0% 22.7% ROE of above 20% expected in 2014 (excl. impact of any increase in equity capital) -11.4% 9

Outline • Executive Summary (by Dr. Alex Otti, GMD) • Strategy & Business Update (by Dr. Alex Otti, GMD) • FY 2013 Financial Performance (by Abdulrahman Yinusa, CFO) • Q1 2014 Financial Performance (by Abdulrahman Yinusa, CFO) • Concluding Remarks (by Dr. Alex Otti, GMD) 10

Business Segments Deposits (N'bn) Gross Risk Assets (N'bn) 53 29 1 79 393 Retail Banking 189 Retail Banking 309 Business Banking Business Banking Subsidiaries 222 Subsidiaries 542 Corporate Banking Corporate Banking 109 Treasury Treasury NPL (%) NPLs (N'bn) 0 0 2.5 Retail Banking Retail Banking 7.7 4.9 6.2 Business Banking Business Banking Subsidiaries Subsidiaries 7.8 2.8 Corporate Banking Corporate Banking 5.3 6.2 Treasury Treasury 11