#120 Guaranty Trust Bank December 2014 Full Year results Investor Presentation #GTBankCares#2Important notice This presentation is based on Guaranty Trust Bank's audited financial results for the Full Year period ended December 2014 consistent with IFRS reporting standards. Guaranty Trust Bank Plc ("GTBank" or the "Bank") has obtained information in this presentation from sources it believes to be reliable. Although GTBank has taken all reasonable care to ensure that the information herein is accurate and correct, GTBank makes no representation or warranty, express or implied, as to the accuracy, correctness or completeness of such information. Furthermore, GTBank makes no representation or warranty, express or implied, that its future operating, financial or other results will be consistent with results implied, directly or indirectly, by information contained herein or with GTBank's past operating, financial or other results. Any information herein is as of the date of this presentation and may change without notice. GTBank undertakes no obligation to update the information in this presentation. In addition, some of the information in this presentation may be condensed or incomplete, and this presentation may not contain all material information in respect of GTBank. This presentation may also contain "forward-looking statements" that relate to, among other things, GTBank's plans, objectives, goals, strategies, future operations and performance. Such forward-looking statements may be characterised using words such as “estimates," "aims,” “expects,” “projects,” “believes,” “intends,” “plans,” “may,” “will” and “should” and other similar expressions which are not the exclusive means of identifying such statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause GTBank's operating, financial or other results to be materially different from the operating, financial or other results expressed or implied by such statements. Although GTBank believes the basis for such forward-looking statements to be fair and reasonable, GTBank makes no representation or warranty, express or implied, as to the fairness or reasonableness of such forward-looking statements. Furthermore, GTBank makes no representation or warranty, express or implied, that the operating, financial or other results anticipated by such forward-looking statements will be achieved. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. GTBank undertakes no obligation to update the forward-looking statements in this presentation. 2 GTBank#3Outline section 1. 2. Macro economic overview Banking industry and regulatory overview 3. FY 2014 results overview 4. Conclusion page 4 6 8 22 3 GTBank#4Macro-economic overview Economic overview ■ Oil price induced economic slowdown After a year of over 6% GDP growth, Nigeria's economic growth rate dropped below 6% in December 2014 (December 2014 - 5.94%; December 2013: 6.77) GDP Growth and Inflation Real GDP Growth Inflation (year on year) 14.0% 12.9% 12.0% 11.8% 12.0% 11.3% The slowdown in economic growth is expected to continue in 2015 as both oil and non- oil sectors show strain amidst low oil prices, a weaker Naira and reduced access to credit. Non-oil sector grew 6.44% in Q4 2014 vs 8.78% in Q4 2013 10.0% 8.6% 8.0% 6.0% 5.57% 3.64% ■Fx reserves 4.0% 4.11% 4.45% 3.46% 2.0% - Foreign exchange reserves declined by 20.96% from Dec 2013 to Dec 2014 Reserves have declined further by 10% as at March 2015 Drop in reserves attributed to drop in oil prices, weakened Naira and loss of investor confidence 8.4% 8.0% 7.9 % 7.8% 8.2% 8.3% 8.0% 5.40% 5.94% 6.77% 6.21% 5.17% 6.54% 6.23% 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Interest rates 91 day Treasury Bill Rate 1 Month Deposit Rate 30 Day NIBOR 18.0% Reserves expected to stabilize and reverse its downward trend as oil prices stabilize and the Naira finds its value after the upcoming elections 16.2% 16.0% 16.0% 14.52% 14.0% 13.0% 14.5% 10.9% 11.4% 11.4% 11.0% 12.0% 11.0% 11.1% 14.1% 10.8% ■ Naira 12.8% 10.0% 11.8% 11.6% 11.0% 11.9% 10.9% 10.0% 9.8% 7.5% - Following the sudden drop in oil prices, the Naira was devalued from N155/USD to N168/USD at the official window in November 2014 8.0% 8.2% 7.5% 7.9% 10.2% 8.0% 8.3% 8.5% 8.4% 8.6% 7.6% 7.6% 7.8% 6.0% - Following the closure of the RDAS window, the Naira was further devalued from N168/USD to N199/USD, resulting in a 22.11% official devaluation since December 31st 2013 4.0% 2.0% 2012 2012 2012 2012 2013 2013 2013. 2013 2014 2014 2014 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Source: Central Bank of Nigeria Exchange rates and crude oil price per barrel ■ Inflation Despite severe deterioration of other major indices inflation has remained in single digit averaging 8.0% in Q4 2014 (7.9% in Q4 2013), however some deterioration is expected in 2015 as a result of the devaluation ■ Oil Prices - Oil prices bottomed out at $41.16/bl in January 2015 and appear to have stabilized with an upward bias. At current price levels of >$60/bl, we expect the Naira and related indices to likewise achieve stability following post election adjustments Elections Free and fair elections expected to hold on March 28th 2015 GTBank $/bl BRENT CRUDE PRICE CBN($/R) 160 $/N 175 140 170 120 165 100 80 160 60 155 40 150 20 0 145 4-Jan-13 4-May-13 4-Sep-13 4-Jan-14 4-May-14 4-Sep-14 4-Jan-15#5Outline section 1. Macro economic overview 2. Banking industry and regulatory overview 3. FY 2014 results overview 4. Conclusion page 8 4 6 22 5 GTBank#6Regulatory environment Regulatory Pronouncement Monetary Policy Rate (MPR) increased by 100 basis points from 12% to 13% Cash Reserve Ratio (CRR) on public sector deposits remained constant at 75% while CRR on private sector deposits was increased from 15% to 20% Effective Dates November 25, 2014 Rationale GTBank Aimed at curbing the excess liquidity in the banking system and protecting the Naira which was increasingly at risk due to the sharp decline in oil prices CBN issued a plethora of FX related regulations December - January, 2015 such as the introduction of the FX prudential guidelines, adjustments to Bank's allowable Net Open fx Positions etc. To stabilise the Naira by reducing perceived currency speculation CBN closes RDAS window, resulting in a tacit devaluation February 17, 2015 In a search for price discovery and stability, and to prevent further erosion of the reserves, the CBN closed the official window CBN placed a cap on the spread charged by February, 2015 banks on purchase and sale of fx from and to customers (For purchase: CBN sell rate +N2, Sale: Bank purchase rate +50Kobo) The CBN commenced the Treasury Single Account Initiative which automates revenue collections from Ministries, Departments and Agencies (MDAs) into the Consolidated Revenue Fund (CRF) account March 16, 2015 To curb speculative devaluation, and instill confidence in the new exchange rate To curb perceived market liquidity, protect the Naira from further devaluation, and eliminate abuse of and dependence on public sector deposits by banks#7Outline section page 1. Macro economic overview 4 2. Banking industry and regulatory overview 6 3. FY 2014 results overview 8 4. Conclusion 22 7 GTBank#8Financial Highlights Financial Highlights December 2014 • PBT: 116.39bn (December 2013: 107.09bn), • PAT: #98.69bn (December 2013: #90.02bn), • ROAE: 27.93% ROAA: 4.43% 8.68% 9.63% • EPS: 347k Revenue Generation Robust and sustainable • Total Year Dividend: 175k per share (150k final, 25k interim) • Loan book (Net): 1,281.37bn (December 2013: 1,007.97bn) • Interest Income: 200.60bn (December 2013: #185.38bn), • Non Interest Income: #77.64bn (December 2013: #57.28bn) Deposits: 1.65trn (December 2012 : #1.44trn) • 27.12% 8.21% 35.27% 14.36% Operational efficiency Key factor for success • Cost to income ratio: 44.79% (December 2013: 43.53%) • Management's current drive is for sustainable efficiency in operations with an aim to achieve 40% cost-to-income ratio by 2016 Margins, Quality and Capitalization Resilient • Net Interest Margin: 8.10% (December 2013: 8.87%), • NPLS: 3.15% (December 2013: 3.58%) Coverage ratio: 143.22% (December 2013: 110.55%) Capital Adequacy Ratio (Basel II): 21.40% (December 2013: 23.91%) GTBank Subsidiaries Strong growth potential • Despite Ebola pandemic in Sierra Leone and Liberia, both subsidiaries showed strong PBT growth • Our newly acquired subsidiaries, have shown impressive PBT growth in 2014 owing to increased operating efficiency by the GTBank management team • PBT from subsidiaries grew 11.92% in 2014 and now contribute 7.15% to GTBank's PBT, an improvement in line with the Bank's goal of a 10% PBT contribution from subsidiaries by 2016 8#9Business segmentation Institutional and Wholesale Commercial SME Retail GTBank Loans Deposits PBT Description • Multinationals and large corporates (turnover > N5bn) Key figures • Over 400 customers • №896.38bn loans Comprised of six sectors: Energy Telecoms Maritime • Corporate Finance Corporate Banking Treasury • N456.23bn deposits 69.95% • N73.80bn PBT (Dec-13 PBT: N62.84bn) • Middle market companies (turnover between N500mm and N5bn) • Extensive product range: tailor-made solutions and flexibility • Custom E-commerce solutions • Over 50,000 customers • N183.63bn loans ⚫ #267.46bn deposits N10.77bn PBT (Dec-13 PBT: N19.77bn) • Small and medium enterprises (turnover under N500mm) • Products tailored to cater to small, fledgling and other types of fairly unstructured businesses • Over 150,000 customers • N16.66bn loans • N140.46bn deposits • №1.86bn PBT (Dec-13 PBT: N4.99bn) 27.65% 64.03% 2013: 59.2% 2013: 24.3% 2013: 58.7% 14.33% 1.30% 9.34% 16.21% 2013: 20.6% 2013: 17.5% 2013: 18.5% 8.51% 2013: 2.2% 2013: 9.7% • Over 6.5mil. customers 9.64% Deposit drive focus for retail customer-base Rapidly developing business line • 216 branches, 58 e-branches & 1,141 ATMs • Extensive leverage of all distribution channels • N123.58bn loans • N678.22bn deposits • A21.79bn PBT • Focus on: •Federal government Public • State governments Sector • Local governments and customers • Active in all government segments (Dec-13 PBT: N12.60bn) • All tiers of government 4.77% • N61.14bn loans • N107.49bn deposits 2013: 9.7% 41.11% 6.52% 1.62% 18.91% 2013: 4.7% 2013: 41.6% 2013: 11.8% 6.10% • №7.03bn PBT (Dec-13 PBT: N6.79bn) 2013: 8.2% 2013: 7.6% 2013: 6.3%#10Geographical distribution GTBank GTB UK • Established in 2008 100% owned by parent • 1 branch ⚫N7.82bn invested by parent ⚫ FY 2014 PBT: N66.60mm • ROE: 0.94% GTB Gambia • Established in 2002 • 77.81% owned by parent ⚫ 17 branches • N574.28mm invested by parent ⚫ FY 2014 PBT: N702.85mm • ROE: 27.65% GTBank plc • Parent Company • Established in 1991 ⚫213 branches, 56 e-branches • N369.53bn in SHF (Parent) •FY 2014 PBT: N110.37bn (Parent) • ROE: 26.73% (Parent) GTB Kenya •Acquired in 2013 70% owned by parent • 14 branches N17.13bn invested by parent FY 2014 PBT: N1,090.99mm • ROE: 6.10% GTB Sierra Leone • Established in 2002 • 84.24% owned by parent ⚫12 branches • N594.11mm invested by parent •FY 2014 PBT: #1,289.75mm ⚫ROE: 32.55% GTB Uganda Acquired in 2013 Subsidiary of GTB Kenya • 7 branches Developments Ebola Outbreak: Despite the Ebola pandemic which struck two countries in which we operate out of, our subsidiaries in those countries showed strong growth from 2013 This performance was attributable to the strength of our brand, operational efficiency and a flight to safety PBT N'bn 2013 2014 Sierra Leone 801.16 Liberia 262.50 A 1,289.75 60.99% 331.98 26.47% Kenya: GTB Liberia Established in 2009 ⚫99.43% owned by parent ⚫ 7 branches N1.95bn invested by parent •FY 2014 PBT: N331.98mm ROE: 11.17% GTB Cote D'Ivoire Established in 2012 •98.98% owned by parent • 4 branches N3.49bn invested by parent FY 2014 PBT: (N454.74mm) ROE: -18.78% GTB Rwanda Acquired in 2013 • Subsidiary of GTB Kenya • 18 branches GTBank Ghana Established in 2006 .95.37% owned by parent • 31 branches N8.57bn invested by parent • FY 2014 PBT: N5.74bn ⚫ROE: 33.47% Following the acquisition of Fina Bank in December 2013, GTBank was able to make considerable gains in it's first year of running GTBank Kenya PBT N'bn Kenya 2013 96.83 A 2014 1,090.99 1026.70% 10#11Group presence per country N'bn Assets y-o-y Loans y-o-y Deposits y-o-y PBT y-o-y Cote D'Ivoire Gambia Ghana Liberia Sierra Leone United Kingdom 5,593.64 14.54% 14,132.38 24.52% 67,529.11 -2.84% 14,800.74 23.06% 21,789.63 22.12% 74,512.35 16.43% 728.20 121.89% 5,460.91 55.09% 27,610.61 25.62% 4,793.03 11.80% 5,440.85 6.95% 17,684.05 31.06% 2,536.75 49.1% 12,101.17 23.97% 48,822.56 -7.28% 10,075.52 14.46% 18,100.84 65,274.60 -454.74 -27.86% 702.85 4.15% 5,742.13 -4.51% 331.98 26.47% 20.27% 1,289.75 60.99% 17.53% 66.60 21.45% Kenya Uganda Rwanda Total Subsidiaries % of total Nigeria % of total Elimination Entries Grand Total 67,663.40 41.39% 23,595.52 27.42% 7,682.54 25.74% 297,299.31 25,506.23 32.84% 11,596.38 3.80% 2,530.73 -20.79% 101,350.98 51,355.42 45.05% 20,235.48 27.94% 3,962.06 6.08% 232,464.41 1,395.67 -85.62 -48.56 8,940.06 1,026.70% -1531.31% -34.79% 12.27% 7.89% 13.90% 7.49% 2,126,608.31 11.67% 1,182,424.69 27.56% 1,439,665.78 14.08% 110,367.85 9.86% 87.73% 92.11% 86.10% 92.51% -2,922.07 2,423,907.62 1,283,775.67 1,672,130.19 116,385.84 Foreign Subsidiary Contribution to Group Loans 7.9% Deposits PBT 13.9% 7.15% Management's aim is to increase foreign subsidiary contribution to PBT to 10% by 2016 • Income growth to be achieved through business development in existing subsidiaries and entry into target countries • GTBank is not pursuing a Pan African expansion strategy GTBank 11#12Group B/S & P/L GTBank Group Income Statements Group Statement of Financial Position N'bn Interest income Interest expense Dec-1 Dec-13 % y-o-y N'bn Dec-14 Dec-13 % y-o-y Assets 200.6 185.4 8% Cash and cash equivalents (58.2) (48.4) 20% Loans and advances to banks Loans and advances to customers Net interest income 142.4 137.0 4% Financial assets held for trading Loan impairment charges (7.1) (2.9) 345% Derivative financial assets 246.9 5.7 1,275.7 307.4 -20% 5.6 2% 1,002.4 27% 9.4 17.2 -45% 0.5 0.2 150% Net interest income after loan impairment charges Investment Securities: 135.3 134.10 1% - Available for sale 344.7 374.7 -8% Fee and commission income 48 46.6 3% - Held to maturity 35.2 84.7 -58% Assets pledged as collateral 39.2 28.4 38% Fee and commission expense (2.1) (1.8) 17% Property and equipment 76.2 68.3 12% Net fee and commission income 45.8 44.80 2% Intangible assets 12.5 11.2 12% Net gains/(losses) on financial instruments Deferred tax assets 2.4 1.9 26% classified as held for trading 28.3 7.7 268% Restricted deposits and other assets 307.5 200.8 53% Other income 1.7 3.0 -43% Total assets 2,355.9 2,102.8 12% Net impairment loss on financial assets -0.3 0.1 -400% Liabilities Personnel expenses (27.4) (23.8) 15% Deposits from banks 31.7 15.2 109% General and administrative expenses (26.1) (22.6) 15% Deposits from customers 1,618.2 1,427.5 13% Derivative financial liabilities 0.2 0.004 4,900% Operating lease expenses (0.9) (0.8) 13% Other liabilities 57.2 61.0 -6% Depreciation and amortization (12.1) (10.1) 20% Current income tax liabilities 11.2 13.1 -15% Other operating expenses (27.8) (25.3) Deferred tax liabilities. 4.4 5.1 -14% 10% Debt securities issued 167.3 156.5 7% Profit before income tax 116.4 107.1 9% Other borrowed funds 91.3 92.1 -1% Income tax expense (17.7) (17.1) 4% Total liabilities 1,981.5 1,770.5 12% Profit for the year from continuing operations 98.7 90.0 10% Equity Share capital 14.7 14.7 0% Profit for the year from discontinued operations Share premium 123.5 123.5 0% Profit for the year 98.7 90.0 10% Treasury shares (4) (2.0) 100% Retained earnings 61 55.2 11% Profit attributable to: Other components of equity 173.4 135.9 28% Equity holders of the parent entity (total) 98.0 89.6 9% Total equity attributable to owners of the Parent 368.6 327.3 13% Non-controlling interests (total) 0.7 0.4 75% Non-controlling interests in equity 5.7 5.1 12% Total equity 98.7 90.0 10% Total equity and liabilities 374.3 2,355.9 332.40 2,102.90 13% 12% 12#13Income Statement evolution N'bn Gross Earnings Interest income Interest expense Q1 2014 Q2 2014 Q3 2014 Q4 2014 FY 2014 67.5 65.4 66.3 79.4 278.6 48.5 51.2 48.4 52.5 200.6 (13.8) (14.4) (14.7) (15.3) (58.2) Net interest income 34.7 36.8 33.7 37.2 142.4 Loan impairment charges (1.3) (4) (1) (0.8) 7.1 Net interest income after loan impairment charges 33.5 32.7 32.7 36.4 135.3 Fee and commission income 12.4 12.4 13.5 9.7 48 Fee and commission expense (0.6) (0.3) (0.6) (0.6) (2.1) Net fee and commission income 11.7 12.1 12.9 9.2 45.9 Net Trading Income 3.5 2.4 3.5 18.9 28.3 Other income 3.1 (0.6) 0.9 (1.7) 1.7 Net impairment reversal on financial assets 0.2 0.5 (0.3) Operating Income 51.9 46.8 49.9 62.5 211.1 Operation Expenses (23.9) (21.5) (22.7) (26.6) (94.7) Profit before income tax Income tax expense Profit after Tax 28 25.3 27.2 35.9 116.4 (4.9) (4.5) (4.5) (3.8) (17.7) 23.1 20.9 22.7 32 98.7 13 GTBank#14Profitability (Group) Continued drive for profitability ■ Post-tax ROAE: 27.93% (Dec 2013 ROAE: 29.32%) ■ Post-tax RoAA: 4.43% (Dec 2013 ROAA: 4.69%) ☐ Pre-tax RoAE: 32.94% (Dec 2013 ROAE: 34.87%) Pre-tax RoAA: 5.22% (Dec 2013 ROAA: 5.58%) ■ PBT: N116.39bn Up 8.68% from 2013 (Dec 2013 PBT: N107.09%) ■ PAT: N98.69bn Up 9.63% from 2013 (Dec 2013 PBT: N90.02%) Returns on Average Assets/ Equity (ROAA/ROAE) 23.15% 19.09% GTBank 33.98% 29.32% 27.93% 5.22% 4.69% 3.53% 3.73% 4.43% Dec-10 Dec-11 Return on Average Assets (ROAA) Profit before tax (N'bn) Dec-12 Dec-13 Dec-14 Return on Average Equity (ROAE) Profitability driven by - - - - strong 27.12% loan book growth, premised on decent growth in deposit liabilities Improvement in commissions earned as a result of increased transaction volumes growth in commissions from financial guarantees, foreign exchange trading and e-banking effective management of the Bank's fx position 11.92% growth in income from subsidiaries effective cost management, cost to income ratio remained below 45% 62.08 46.28 Dec-10 116.39 107.09 103.03 Dec-11 Dec-12 Dec-13 Dec-14 Profit Before Taxes Consistent dividend payments (NGN) 1.75 1.70 1.55 ■ Total year dividend - Final dividend - 150k - Interim dividend - 25k Total Year Dividend - 175k 1.10 1.00 61.35% 62.15% 53.45% 58.42% 55.21% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 14 Total Dividend Payout Ratio#15Profit Drivers Strong revenue growth across all lines Revenue mix consists of Interest Income - N200.60bn (72.02% of revenue) December 2013 - N185.38 (76.39% of income) Non interest Income - N77.92bn (27.98% of revenue) December 2013 - N57.28bn (23.61% of income) Revenue mix (N'bn) 46.29 112.40 126.47 200.60 185.38 170.30 77.92 57.99 57.28 51.12 Interest Income Interest Income: N200.6bn Up 8.21% from 2013 8.21% growth in Interest Income driven by: - - - 19.65% growth in income from loans and advances interest income growth is largely attributable to loan growth as yields stayed stable through most of 2014. decline in income from investment securities was due to AMCON bonds which matured and were redeemed in 2014 Dec-10 Non Interst Income Dec-11 Dec-12 Dec-13 Dec-14 Interest Income Interest income (N'bn) 86.26 88.49 117.99 114.25 ■ Non-interest Income Non-Interest Income: N77.92bn Up 36.03% from 2013 36.03% growth in non-interest driven by: - 31.88% growth in income from financial guarantees gains in income from increased e- business and card related transactions on our growing retail customer base 168% growth in net gains on financial instruments classified as held for trading 62.54 54.86 50.70 27.67 17.92 10.31 8.22 5.34 4.85 4.57 Dec-10 Placements Dec-11 Investment Securities Dec-12 Dec-13 Loans and Advances Non-Interest income (N'bn) 33.63 14.47 12.66 GTBank 141.18 Dec-14 47.97 46.63 45.45 43.52 10.65 5.67 29.95 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Other income Fee and Commission Income 15#16Cost efficiency Continued focus on optimization ■ Cost to income ratio : 44:79% December 2013: 43.53% ■ Operating expense - - Operating expenses grew 13.85% from N82.64bn in 2013 to N94.08bn in 2014 Operating expense growth partly attributable to a 17.53% growth in AMCON levy which grew as a result of the growth in the Bank's Total Assets On-boarding of certain expenses from our newly acquired subsidiaries (including staff salaries) for our Kenyan group. In 2013, we bore only one month of such expenses, however in 2014, we incurred a full 12 months worth of such expenses Cost-to-Income Ratio 57.21% Dec-10 Cost/Income 52.94% 42.73% 43.53% 44.79% Dec-11 Dec-12 Dec-13 Dec-14 Operating expense breakdown (N'bn) 22.792.13 27.95 GTBank 30.99 28.22 27.44 26.14 22.63 23.76 21.62 22.37 22.41 22.25 22.55 Interest expense - - Interest expense grew 20.16% from N48.44bn to N58.21bn Increase in interest expense attributable to • an increase in MPR from 12% to 13%, which in turn increased regulated interest payment on deposits reduced market liquidity due to hikes in CRR, and the resultant increase in competition for deposits a 42.96% rise in interest paid on debt securities, largely due to the $400m 5yr Eurobond issued by GTBank in November 2013 Dec-10 16.93 3.20 Dec-11 9.52 8.10 3.98 Dec-12 AMCON Expenses ■G&A Other OpEx personnel Expense summary (N'bn) 44.23 3.20 Dec-13 Dec-14 94.08 82.64 76.59 69.83 61.86 Dec-10 58.21 48.44 39.61 27.98 1.84 Dec-11 Fee & Commission expense 1.59 1.82 2.11 Dec-12 Dec-13 Dec-14 16 Interest expense Operating expense#17Balance Sheet Strong, high quality balance sheet growth " Loans to deposits ratio - 77.61% (December 2013 - 70.61%) Loans to deposits ratio (including borrowings) - 67.14% - (December 2013 – 60.14%) Net loan-book - N1.281trn, up 27.12% from 2013 (December 2013 - N1.01trn) - loan book growth attributable to a 56.97% growth on our foreign currency loan book to high quality names in the manufacturing, maritime and oil & gas industries; as well as the revaluation factor the growth in the dollar loan-book was funded by our $400 Eurobond issued in 2013 due to the exchange rate movement in 2014, fx loans constituted 51.15% of our loan-book growth in Naira loan-book dampened by intentional, risk conscious divestment from certain state government related loans ahead of elections Deposits N1.65trn, up 14.36% from 2013 - (December 2013 - N1.44trn) - deposit growth attributable to a 34.08% growth on our foreign currency deposit book. foreign currency deposit growth is attributable to the fact that our foreign currency loan obligors, also keep their deposits with us, so as our foreign currency loan book grew, these deposits grew likewise. The Bank also saw strong 14.51% growth in retail deposits due to its strong and growing retail franchise Exchange rate devaluation added a further boost to deposit growth Total Assets, Loans and Deposits (N’bn) 1,608.65 2,355.88 2,102.85 1,734.88 1,649.87 1,442.70 1,281.38 1,168.05 1,172.06 1,063.35 1,007.97 783.91 779.12 604.09 Dec-10 707.05 Dec-11 Dec-12 Dec-13 Dec-14 Total Advances and Loans Total Deposits Total Assets Low cost, diverse funding mix (N'bn) 66.89 23.03 779.12 1,172.06 1,063.35 281.83 216.64 230.39 145.77 156.50 93.23 86.93 92.56 92.13 Dec-10 Dec-11 Dec-12 Debt securities Other borrowed funds ■Total equity Deposits Asset base and components (N'bn) 604.09 383.83 368.28 783.91 707.05 322.99 1,442.70 332.35 167.32 91.30 Dec-13 1,007.97 374.33 Dec-14 246.94 428.99 384.08 398.57 307.40 GTBank 1,649.87 1,281.38 79.00 273.07 211.88 139.71 180.44 149.49 Dec-10 Other Assets Dec-11 ■Cash &equivalents Dec-12 Dec-13. Dec-14 17 Investment securities Loans#18Margins Strong margins • NIMS declined to 8.10% from 8.87% in 2013 Despite decline, NIMS remain relatively strong compared to industry and in light of 2014 operating environment ⚫ Decline in NIMS a result of: • Increase in lower yielding, foreign currency loan book • NIMS impacted by loss of earnings from AMCON bonds which matured in 2014 . The Bank was able to effectively manage its cost of funds to offset NIM compression resulting from low yielding fx loans Cost of interest bearing liabilities 3.20% 2.50% History of strong NIMS 8.21% 8.20% 9.46% 8.87% 8.10% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Net Interest Margin Yields on interest earning assets 3.33% 3.10% 3.12% 12.31% 12.65% 11.66% 11.01% 10.44% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Cost of funds Yeild on earing assets 18 GTBank#19Asset diversification & Quality NPLs, Coverage, COR • NPL ratio - 3.15% (December 2013 - 3.58%) • Cost of risk - 0.61% • (December 2013 -0.31%) Coverage ratio (with regulatory risk reserves) - 143.22% Loans by Industry Upstream O&G 21% • Coverage ratio (without regulatory risk reserves) - 74.13% • NPLs listed under "Manufacturing " is mainly comprised of one exposure with monetary value of11.57bn for which over 50% provision was taken during the financial year 2014. • "Information Telecoms & Transport" accounts for 33.8% of NPLs with Hi Media accounting for the bulk of it. NPLs and coverage 75.64% 102.3% 101.6% 110.6% 143.22% 6.74% 3.45% 2.85% 3.75% 3.58% 3.15% LOLLL 1.68% 0.10% 0.31% 0.61% Dec-11 Dec-10 NPL/Total Loans Cost of Risk Dec-12 Coverage ratio Dec-13 Dec-14 Manufacturing 17% Education. 1% Financial Institutions Agriculture 2% 3% GTBank Government 3% Midstream O&G General 6% Commerce 6% Individuals 7% Telecoms & Transport 11% Construction 8% Others 9% NPLs by Industry CONSTRUCTION & REAL ESTATE 2% AGRICULTURE 2% CAPITAL MARKET & FIN. INSTITUTION 3% MANUFACTURING 39% INFO. TELECOMS & TRANSPORT. 28% Downstream O&G 6% GENERAL COMMERCE 8% MINING, OIL & GAS 8% GENERAL 10% 19#20Outline section 1. Macro economic overview 2. 3. 4. Banking industry and regulatory overview FY 2014 results overview Conclusion page 4 6 8 22 20 20 GTBank#21GTBank GTBank delivers as promised GTBank's 2014 goals As stated in 2013 Investor Presentation Goals 15%-20% growth in loans Continued commitment to RoEs north of 25% Remain on the forefront of Industry best practices Status Achieved Achieved Achieved Achieved Comments The Bank surpassed this with a 27.12% loan book growth. Loan book growth was achieved largely in the Manufacturing, Oil & Gas and Maritime sectors The Bank surpassed this with an ROAE of 27.93%. This was achieved through continued focus on cost efficiency, effective management of fx positions and increased transaction volumes. GTBank strives to attain worldwide best practices This for example, is responsible for our smooth transition to Basel II as we had commenced this practice in-house years ahead of the industry The bank came in at 44.79% on Cost-to-income ratio. The Bank continues to focus intently on cost efficiency. Remain the industry leader with cost-to-income ratio below 45% Achieve a 20% growth in retail deposits to keep low cost of funding Increase subsidiaries' contribution to PBT Achieved The Bank's Deposits grew 14.36%. This was due to increased cost of funding from hikes in CRR, and market illiquidity. With rising costs of deposits, the Bank decided to focus on efficiency. Income from Subsidiaries grew 16.18% from December 2013. PBT contribution from subsidiaries also moved up to 7.15% from 7.03% as at December 2013 21#222015 GTBank GTBank GTBank's Goals and plans for 2015 Solid Profitability and stable returns Quality Credits Best Practices Operating Cost Efficiency Retail Subsidiaries Continued commitment to RoEs above 25% Profits to be derived from higher yields, cost efficiency and subsidiaries NPL's below 5% Continue Best-In-Class risk management & focus on high quality assets Remain on the forefront of Industry best practices Strong risk management, corporate governance Remain the industry leader with cost-to-income below 45% Focus on retail deposits, technology and innovation to keep costs low Continue to grow retail franchise To sustainably lower cost of funding and improve margins Increase subsidiaries' contribution to PBT Focus on optimizing and ensuring all subsidiaries are P&L positive 22 22#23Business Strategy and Objectives COMPASS STATEMENTS Overall Aspiration Our Strategic To be one of the top three banks in Africa by 2016 (absolute profitability) Dominate our chosen markets Aggressively grow market share in our chosen/priority sectors African Expansion Scale up our franchise in Africa Talent Management & Leadership Knowledgeable and highly driven staff with deep industry skills Pillars Leverage Technology Scalable, fit for purpose technology platform Competitive Cost Containment Continue to win on the basis of cost Enhanced Risk Management Strong risk management practices with deep competencies in our key markets Enablers Deep Market Knowledge Products and Solutions Strategic Relationships 23 GTBank#24End Thank you GTBank 14 24