FirstBank H1'11 Investor & Analyst Presentation
Review
Operating
Environment
Highlights
Governance
Summary &
Outlook
Strategy &
Transformation
Risk Mgt &
Corporate
Financial
ப
Strong growth maintained in domestic economy as well as emerging
markets as a whole
Global Economy
☐
☐
Growth in most emerging and developing economies continues to be
strong, while weak growth is prevalent in many advanced economies
Apprehension over the global economy amid concerns over Europe and
the United states; downside risks in both regions could affect capital flows
to emerging and developing markets
Annualised global economic expansion of 4.3% in the first quarter of
2011, with forecasts for 2011-12 largely unchanged
The Nigerian Economy
☐
Provisional data from the statistics office puts economic growth at 7.43%
in 1Q11, (1Q10: 7.36%); driven largely by the non-oil sector
GDP growth of 6.9% expected for 2011, growing to 6.6% in 2012
Headline YoY inflation growth rate of 10.2% in June 2011 down from
12.4% in May 2011;
Exchange rate
*
154
149
144
Oil prices and exchange rate
Exchange Rate
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Since 1894
Oil Prices
$
130
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Inflation
- Inflation
MPR
15%
110
90
70
70
The Central Bank of Nigeria (CBN) on 1st of July 2011 lifted the one-year
holding period of government securities currently in place for foreign
investors
10%
5%
Banking Industry
Pick up
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
in M&A activities as the 30th September 2011 recapitalisation
deadline for intervened banks approaches
Interbank rates
Rising interbank rates on the back of increases to the MPR and cash
reserve ratio(CRR) by the MPC. MPR increased to 8.0% while the CRR
increased by 2% to 4%
T-Bills
Inter-Bank Call Rate
7 day
30 day
15%
FirstBank H1'11 Investor & Analyst Presentation - 27/07/2011
CBN guarantee on all interbank transactions, foreign credit lines and
pension funds placed with Nigerian Banks to be lifted on the 30th of
September 2011. Further extension till December 31, 2011 given to the
three rescued banks that have reached advanced stages in their
recapitalisation process namely; FinBank Plc, Intercontinental Bank Plc
and Union Bank Plc
10%
5%
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Source: CBN
7
FirstBank
Oil priceView entire presentation