FirstBank FY'10 & Q1'11 Investor & Analyst Presentation
Risk Mgt &
Corporate
Governance
Summary &
Strategy &
Transformation
Outlook
Highlights
Our operating expenses have trended largely in line with inflation. We
expect improvements as certain one-off costs drop off
Operating income and expenditure
FirstBank
Operating expense breakdown (N'bn)
Since 1894
Staff cost
Operating income (N'bn)
Operating expenses (N'bn)
QoQ operating expenses growth %
X QoQ operating income growth %
12.1
13.1
11.9
1.5
✗
-9.6
13.3
6.3
A
5.3
1.5
-1.5
-12.5
Depreciation
Admin and general expenses
NDIC premium
7 6%
48 42%
6
7%
4
5%
28 36%
6 7%
32 38%
8 7%
4 7%
6 7%
21 38%
2
7%
4
7%
7%
17 39%
10
39%
131 78
2 7%
40 26
86 55
130 84
178 117
54 34
41
52%
26 48%
41 48%
52 45%
46%
2 7%
14 46%
9m'09
Q1'10
H1'10
9m'10
FY'10
Q1'11
9m'09
Q1'10
9m'10
FY'10
Q1'11
161
8%
1%
10
20%
20
12%
0.3
1%
19
12%
6 13%
Corporate office*
Private banking
5
11%
Corporate banking
77
Public sector banking
48%
.
21
42%
■Retail banking
Operating income breakdown by SBU N'bn (bank only)
212
49
•
H1'10
Comments
Operating income benefiting from rise in yields, non-interest revenue and
decline in interest expense
Benefits from manning structure realignment and branch optimisation being
realised; staff numbers on the decline despite increasing number of branches
Significant reduction in our cost of funds
Full year cost to income ratio negatively impacted by declining yields on the
topline and rising operating expenses; marginal improvement in Q1'11
1% general provision on performing loans taken in 2010
Focus on driving targeted containment in operating expense through
increased awareness and more efficient resource allocation
Institutional banking
•
31
19%
7
13%
Various initiatives in place to reduce costs such as: Introduction of
standardized processes across Bank's divisions to increase
efficiency, centralization of branch operations to enhance economies of
scale, focus on channel migration
Dec-10
Mar-11
FirstBank FY'10 & Q1'11 Investor & Analyst Presentation - 28/04/2011
*Corporate office includes money market lines, treasury, investments and staff welfare loans
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