diamond bank - ir presentation (q3 2012 results) 161012

7/31/2019 Diamond Bank - IR Presentation (Q3 2012 Results) 161012

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Investor call presentation

9-Month Results


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Forward lookin statements

This presentation contains or incorporates by reference forward-looking statements regarding the belief or current expectations ofDiamond Bank, the Directors and other members of its senior management about the Groups businesses and the transactions

. , , , , , , , ,similar expressions identify forward-looking statements.

These forward-looking statements are not guarantees of future performance. Rather, they are based on current views andassumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of the

ompany an or s roup an are cu o pre c , a may cause ac ua resu s o er ma er a y rom any u ure resu s or

developments expressed or implied from the forward-looking statements. Such risks and uncertainties include, but are not limitedto, regulatory developments, competitive conditions, technological developments and general economic conditions. The Bankassumes 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 Bankshould not be taken as a representation that such trends or activities will continue in the future. No statement in this presentation isintended 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.

revisions to any forward-looking statements contained herein to reflect any change in Diamond Banks expectations with regardthereto or any change in events, conditions or circumstances on which any such statement is based.

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Outline

. ,

9-Month 2012 YTD Financial Performance (by Abdulrahman Yinusa, CFO)

Business Segments Performance (by Abdulrahman Yinusa, CFO)

Concluding Remarks (by Dr. Alex Otti, GMD)

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Overview

The macro-economic pulse of the Nigerian economy has been quite supportive to investments with

over N6.8 trillion local and Foreign Direct Investment (FDI) commitments on the back of stableeconom c ac v es, sca s a y an mprove power supp y

Central Bank of Nigeria (CBN) has continued to manage liquidity through tightening of monetary

open position (NOP) to 1 percent from 3 percent

Activit in the ca ital market is ickin u as evidenced b the ear-to-date rowth of 25 in the NSE

All Share Index. This is driven by the stronger demand for stocks following the continued improved

performance of quoted companies, as well as the introduction of market makers within the 3rd Quarter

The 9-months 2012 performance of Diamond Bank points to a healthy and sustainable profitability

QoQ on the back of an improved and more efficient balance sheet growth

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2012 2013 Sustaining the Momentum

Corporate Banking

Provision of state-of-the-art, low cost and efficient

banking services, with a focus on increasing fee-

Human Capital Management

Create a culture of ownership, responsibility and

accountability through the roll out of our performance

based income

Re-engineer processes to improve efficiency and

create a sustainable business model and culture

mon tor ng an consequence management n t at ve

Retaining our best people through the use of an

aggressive reward and recognition model and

competitive remunerations

Maintain focus on strategic objective of consistently

providing a superior customer experience

Increase market penetration by deepening existing

Operational EffectivenessEnhance online capabilities for transactions and

reporting

customers relationships

Standardize propositions and products in line with

target operating model

long term through automation and centralization of

customer service function and transformation of

channel services (Diamond Online Reload)

Customer experience

Creation of Service Champions to ensure durability

of service culture in our various branches and

Risk management

Implementation of portfolio planning that recognizes

relative threats and opportunities across economic

sectors

6

headoffice

Creation of a Service Idea Box to elicit feedback

from all staff

Implementation of a Credit Sanction Grid with the aim of

checking the incidence of credit abuses in the bank


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9M 2012 Grou Performance Anal sis

P&L (NBn) Sep 2012 Sep 2011 % Growth Comments

Gross Earnings 110 69 59

Operating Profit 47 20 135

following from similar profitability reported

in Q1 2012 and Q2 2012

Profit Before Tax 23 (6.9) 436million from International FinanceCorporation (IFC) concluded in Q3 2012.

Total Tier 2 capital now stand at $170

Balance Sheet (NBn) Sep 2012 Sep 2011 % Growth

million as at September 30, 2012 with

another $30 million at advanced stage of

negotiation to bring the total to $200m out

Total Assets 1,029 715 44

Loans to Customers 540 370 46

of the $500 million planned to be raised

this year

7

Deposits 777 530 47


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Forecast for 2012 Profitabilit Revised U wards

Impact on P&L NBn NBn

Operating Profit 55.0 / 60.0

Deposits (NBn)Operating Profit and PBT (NBn)

55.0/60.0

Provision for Losses

- Direct Provision (Circa) ~(20.0)

27.8

46.657.5

23.2 27.5

25.0/30.0

- r te-o s ~ 10.0 ~ 30.0

Profit/(Loss) Before Tax 25.0 / 30.0

-16.3

2011 9M 2012 2012 est

Operating Profit PBT

Sustained profitable growth in Q3 . This was due to solid

Comments

2011 2012 est 2013 est

ROE

,

revenues and growth in other fee-based activities

Provisioning levels are on target (after adjusting for the

accounting treatment of loan write-offs)

>18%

8

ROE of high teens expected by year-end-11.2%


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Outline

nin m n n r . ,




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FinancialHighlightsStrongBalanceSheetGrowth

Assets Loans(net) Deposits(Dec.2011to

Sep.2012) +28%+28% +27%+27% +29%+29%

Stablenetinterestmar in above9%inthelast3 ears 9.1%in9M2012Stablenetinterestmar in above9%inthelast3 ears 9.1%in9M2012Operatingincomeup107.1%YoY,outpacingrevenuegrowthLowcostoffunds below3.5%since2010and2.8%inH12012Operatingincomeup107.1%YoY,outpacingrevenuegrowthLowcostoffunds below3.5%since2010and2.8%inH12012RevenueMix

ContinuousimprovementinCosttoIncomeratio 50.1%in9M2012,from67.6% in9M2011GrowingRetailBankingbusiness 48%ofNairadeposits;drivinghighmarginsandsustainableearningsUpwardswingtoprofitabilityfollowinglossin2011

ContinuousimprovementinCosttoIncomeratio 50.1%in9M2012,from67.6% in9M2011GrowingRetailBankingbusiness 48%ofNairadeposits;drivinghighmarginsandsustainableearningsUpwardswingtoprofitabilityfollowinglossin2011

Efficiencyand

Profitability

Capitalratios 16.2%riskadjustedcapitalratioin9M2012 (fortheBank)against15%statutorylimitTier2Capitalinflowof$170m.Additionalinjectionofabout$330milliontobeinjectedinQ42012MinimumCARofabove17%expectedby31st Dec.2012

Capitalratios 16.2%riskadjustedcapitalratioin9M2012 (fortheBank)against15%statutorylimitTier2Capitalinflowof$170m.Additionalinjectionofabout$330milliontobeinjectedinQ42012MinimumCARofabove17%expectedby31st Dec.2012

Capital

10

ImprovingNPL 5.2%inQ32012,from7.6%inJun.2012and9.4%inDec.2011.Targetbelow5%byDec2012Coverageratio 128.3%inQ32012from64.7%inDec.2011ImprovingNPL 5.2%inQ32012,from7.6%inJun.2012and9.4%inDec.2011.Targetbelow5%byDec2012Coverageratio 128.3%inQ32012from64.7%inDec.2011AssetQuality


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Grou Statement of Com rehensive Income 9M 2012

9M 2012

N' billion

9M 2011

N' billion

YoY

%

Q3 2012

N' billion

Q2 2012

N' billion

Q1 2012

N' billion

Q3/Q2

%

Comments

Gross Earnings 109.9 69.0 59.3 45.0 34.2 30.7 31.6

Net Interest Income 72.4 52.2 38.7 30.4 21.8 20.2 39.4

or N41 billion to N110

billion (YoY) and up

11% (QoQ). This was

driven by sustained

growth in risk assetsmpa rmen arge (23.4) (26.4) (11.4) (13.3) (5.5) (4.6) 141.8

Net interest income(after impairment charge) 49.0 25.8 89.9 17.1 16.3 15.6 4.9

volume and fee

generating transactions

Net interest income up

39% (YoY) to N72 billion

21.0 8.0 162.5 8.4 6.9 5.7 21.7

Operating Income 70.0 33.8 107.1 25.5 23.2 21.3 9.9

O eratin Ex enses

107% or N36 billion

(YoY) and up 10% QoQ

. . . . . . .

Profit Before Tax 23.2 (6.9) 436.2 7.8 7.6 7.8 2.6

Profit After Tax 18.1 (6.1) 396.7 8.1 4.9 5.1 65.3

11

Other comprehensive income 0.2 (0.4) 50.0 0.2 (0.2) 0.2 200.0

Total comprehensive income 18.3 (6.5) 381.5 8.3 4.7 5.3 76.6


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Grou Ke Underl in Profit Drivers

52.272.4

Net Interest Income (YoY: +39%, QoQ: +39%)

21.0

Non-interest Income (YoY: +163%, QoQ: +22%)

NBillionNBillion

21.830.4

Sep. 2011 Sep. 2012 Q2 2012 Q3 2012

8.0 6.9 8.4

Sep. 2011 Sep. 2012 Q2 2012 Q3 2012

40.7

46.8Operating Expenses (YoY: +15%, QoQ: +13%)

NBillion

26.423.4

Impairment Charge (YoY: -11%, QoQ: +142%)NBillion

15.6 17.7

Sep. 2011 Sep. 2012 Q2 2012 Q3 2012

5.5

13.3

Sep. 2011 Sep. 2012 Q2 2012 Q3 2012

Net interest income up 39% YoY driven by sustained growth in lending activities. Customer loans increased by N170 billion from N392

billion in Sep. 2011 to N540 billion as at 30th September 2012.

Comments

Impairment charge down 11% YoY on the back of improved quality of loan book, however increased 142% QoQ following accounting

treatment of fully-provided loans that were written off in Q3 2012

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Grou Statement of Financial Position 9M 2012

9M 2012

N' billion

FY 2011

N' billion

9M 2011

N' billion

YtD

%

Q3 2012

N' billion

Q2 2012

N' billion

QoQ

%

Cash & Balances with Central Banks 96.1 55.8 29.5 72.2 96.1 70.1 37.1 Net loan book of N540

Comments

Loans & Advances to Banks 115.0 90.6 97.3 26.9 115.0 99.6 15.5

Loans & Advances to Customers 539.6 392.0 369.9 37.7 539.6 505.7 6.7

Investments 146.1 190.0 134.1 (23.1) 146.1 120.0 21.8

billion, up 38% from

December 2011 and up

7% QoQ

Deposit base of N777

billion u 29% fromPledged Assets 57.6 13.5 21.4 326.7 57.6 63.8 (9.7)

Fixed Assets & Intangibles 43.3 39.5 38.5 9.6 43.3 40.0 8.2

Deferred Tax Asset 14.1 10.8 7.6 30.6 14.1 11.0 28.2

December 2011 and up

14% QoQ

Total assets up 28% to

N1.03 trillion from N803

billion as at December . . . . . . .

Total Assets 1,028.6 802.7 714.9 28.1 1,028.6 960.1 7.1

Deposits from Banks 11.0 21.0 6.3 (47.6) 11.0 9.4 17.0

Deposits from Customers 776.8 603.0 530.0 28.8 776.8 679.3 14.4

2011 and up 7% QoQ

Other Liabilities 55.5 31.5 56.6 76.2 55.5 106.8 (48.0)

Borrowings 51.9 54.9 26.5 (5.5) 51.9 55.8 (7.0)

Tier 2 Capital 26.7 - - - 26.7 15.8 69.0

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Un-Audited Profit After Tax 18.3 - - - 18.3 4.9 273.5

Equity 88.4 92.3 95.5 (4.2) 88.4 88.1 0.3

Total Equity & Liabilities 1,028.6 802.7 714.9 28.1 1,028.6 960.1 7.1


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Ke Performance Metrics 9M 20129M 2012 H1 2012 Q1 2012 FY 2011

NIM 9.1% 9.2% 9.5% 8.8%

NPL Ratio 5.2% 7.6% 8.0% 9.4%

Cost of Risk 6.3% 4.2% 4.7% 11.6%

Cost of Funds 2.8% 2.8% 2.7% 2.2%

Coverage Ratio* 128.3% 92.5% 87.4% 64.7%Loan-to-Deposit Ratio 74.4% 80.0% 72.7% 69.2%

Capital Adequacy Ratio (CAR) 14.9% 13.1% 12.4% 13.9%

Liquidity Ratio 34.1% 39.6% 46.1% 46.3%

Cost to Income Ratio 50.1% 53.3% 51.9% 66.7%

The Group Net Interest Margin (NIM) marginally declined to 9.1% in September from 9.2% in H1 2012 due to increase in foreign

currency loans with lower yields compared to the yield on naira loans

Comments

14

CAR of 16.2% (Bank) and 15% (Group) following Tier 2 capital injection of $170 million (N26.7 billion) and capitalization of audited

half-year post-tax profit. Arrangement under way for additional Tier 2 capital of $330m to be injected in Q4 2012

*Note: Coverage Ratio is based on IFRS model of Loan Probability of default, while Nigerian GAAP gives 80% Coverage Ratio.


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Grou Risk Mana ement Metrics 9M 201

9M 2012

N billion

H1 2012

N billion

Q1 2012

N billion

Q4 2011

N billion

. . . .

NPL 30.0 41.4 37.4 39.4

38.3 32.7. .

NPL Ratio 5.2% 7.6% 8.0% 9.4%

NPL Coverage Ratio* 128.3% 92.5% 87.4% 64.7%

Comments

overage a o mprove o . n ep em er rom . n une .

NPL ratio of 5.2% in September from 7.6% in June 2012

Target NPL ratio for December 2012 still remains < 5.0%

*Note: Coverage Ratio is based on IFRS model of Loan Probability of default, while Nigerian GAAP gives 80% Coverage Ratio.

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Grou Balance Sheet Structure

960 1,029

Balance Sheet Trend (NBn)

1,029 211

Total Assets (NBn) Sep 2012 (Dec 2011)

803 146

603679

777

392506 540

540

146

392

190

Dec. 2011 Jun. 2012 Sep. 2012

Total assets & Contingents Deposits Loans & Advances

43 31

TotalAssets

LiquidAssets

RiskAssets

Investments PledgedAssets

FixedAssets

OtherAssets

40 21

Balance sheet up N226 billion or 28% to N1.03 trillion year-to-

date (Dec 2011 N803 billion) and up 14% QoQ. The growth

Comments

1,029 11 777

Total Liabilities (NBn) Sep 2012 (Dec 2011)

803 60321

year-to-date and Tier 2 Capital of N27 billion

Net Risk Assets up by N148 billion or 38% to N540 billion (Dec.

2011: N392 billion) and up 7% QoQ

De osit base stood at N777 billion re resentin a 29%56

52 55 032

16

increase from the N603 billion recorded by FY 2011 and 14%

increase QoQ

107

Total Liabilities Dep. FromBanks

Deposits OtherLiabilities

Borrowings Tier 2 Capital Equity


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Grou Lendin

Dec-11Gross Loan Breakdown Dec 2011 (Jun 2012)

N417Bn (N544Bn)

Sep-11

N578Bn

Gross Loan Breakdown Sep 2012

12%

13%

7%

6%

5%

General Comm 25% (25%)

Oil & Gas 19% (26%)

Real Est & Const 13% (11%) 24%

6%

6%

Oil & Gas 27%

General Comm 24%

Manufacturing 12%

19%

5%

5%

Manufacturing 12% (11%)

Power & Energy 7% (5%)

Consumer Credit 6% (10%)

Others 5% (1%)

5

4%

3%

Real Est & Const 9%

Others 6%

Government 6%

Power & Energy 5%

25%1%

1%

ICT 5% (3%)

Government 5% (5%)

Agriculture 1% (1%)

Trans ortation 1% 1%

27%

1%

1%

Consumer Credit 4%

ICT 3%

Agriculture 2%

Trans ortation 1%

17

Finance and Ins. 1% (1%) Finance and Ins. 1%


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Grou Loan and De osits Growth

777

Loan Growth, Non Performing Loans (NBn) &

Deposits Growth

266.5Over 12 months

Chart TitleGross Loan Analysis by Maturity (NBn) Sep 2012

(Dec 2011)

417466

544 578

603 641679

81.3

.

100.0

120.4

1-3 months

0 - 30 days

39 37 41 30

Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012

75.3

.

34.4

56.9

3-6 months

6-12 months Sep. 2012

Dec. 2011

Loan to Deposit Ratio

Loans and advances (gross) were up by 38% to N578 billion year-to-

Comments

.

69.2% 72.7%.

74.4%date and up 6% QoQ (Dec 2011: N417 billion). The growth in loan

portfolio is driven by our growing customer relationships especially

in the corporate end

About 54% of loan portfolio falls within 12 months while 46% are

18Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012

medium to long term loans

The loan to deposit ratio (LDR) of 74.4%


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Grou NPL Anal sis

General Commerce 29%

NPL by Sector (Dec. 2009)NPL by Sector (Sep 2012) NPL by Category

N39.4Bn N41.4BnN47.7Bn N30.0Bn

as nergy

Consumer Credit 15%

Transp. & Comm. 11%

Manufacturin 6%N30.0Bn

39% 39%

74% 58%

18% 22%

Others 5%Agriculture 4%

Real Estate & Constr. 2%

8%

20%

Sep. 2011 Dec. 2011 Jun. 2012 Sep. 2012Substandard Doubtful Lost

General Commerce 35%

NPL by Sector (Dec 2011)

General Commerce and Oil & Gas sectors account for

Comments

Real Estate & Constr. 11%

Transp. & Comm. 9%N39.4Bn

Asset quality continues to improve as non-performing

loans (NPL) declined to N30 billion in Q3 from N41 billion

Q2 while gross risk assets increased to N578 billion in Q3

Manufacturing 3%Others 4%

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Grou Asset Qualit

11.5%

NPL Ratio

128.3%

Coverage Ratio

9.4%8.0% 7.6%

5.2%57.6% 64.7%

87.4% 92.5%

Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012 Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012

7.1%

11.6%

6.3%

Cost of Risk

Non-performing loans (NPL) ratios improved to 5.2% in Q3 from

7.6% in Q2. NPL Ratio to be brought to


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Bank Ca ital and Li uidit

17.9%

14.9% 15.2% 16.2%

Capital Adequacy (CAR)

28%

Liquid Assets Sep 2012 (Dec 2011)

Sep. 2012 (Outer Circle)Dec. 2011 (Inner Circle).

10% 10% 10%

15% 15%

21%

38%16%

Cash & Equivalent

Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012

Actual CAR Stat. Minimum Requirement

56%

Placement

Treasury Bills

44.2%46.3% 45.9%

39.6%

Liquidity

Further injection of Tier-2 capital in Q4 will increase CAR to over

17% by year end

Comments

34.1%

30% 30% 30% 30% 30%

The deposit liabilities funded over 75% of the groups total

assets

Decrease in liquidity ratio to 34.1% in Q3 from 39.6% in Q2 on the

back of increase in cash reserve ratio (CRR) to 12% from 8% in

21


Liquidity Stat. Minimum Requirement

July by the Central Bank of Nigeria

Continue to focus on stable source of funding to exploit marketopportunities


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Outline

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Grou Business Se ments

Business

Lines Retail Banking Business Banking Corporate Banking Other Subsidiaries

Retail banking providesconsumer loans, mortgageloans, credit card and otherfacilities, handling deposits forindividuals and legal entities,

Focus is to grow a diversifiedand profitable asset base,increase deposits, fee basedbusiness & international trade,finance. Also deliver client

The Corporate Banking ispositioned to provide leadingfinancial services capabilitiesto large local and multinationalcorporate clients in the various

Diamond Bank Benin (DBB),Diamond Bank Cote dIvoire,Diamond Bank Senegal,Diamond Bank Togo, andDiamond Pension Fund

Description

affluent segment, retail mass

markets and Micro, Small &Medium scale Enterprise(MSME) businesses

beneficial business

relationships with small,medium and fairly large-scalebusiness enterprises, as well ashigh net-worth and medium

economy

Expertise in financingstrategies to empower ourclients ambition as we work

Deposits

income individuals

N267.8bn (Q2: N265.1bn) N364.2bn (Q2: N295.8bn ) N63.4bn (Q2: N51.0bn ) N81.4bn (Q2: N67.4bn)

Risk Assets

(net)

NPLs

N68.0bn (Q2: N65.1bn) N211.2bn (Q2: N204.4bn) N209.8bn (Q2: N190.2bn) N50.6bn (Q2: N46.0bn)

N6.8bn N13.9bn N6.0bn N3.3bn

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Retail Bankin

Branch Expansion Plans 130 branches in the next

two years through a combination of organic growth and

Retail Banking Growth Strategy

Over 1.9 million retail clients with about 2,400 new product sales per day

and over 220 branches

Current Position

Customer

Recruitment

Maximise relationship value through differentiated

product suite (Assets : Auto loans, personal,

mortgage and credit cards; Liabilities: SavingsXtra,

Xclusive, etc.)

Monthly recurring fee income increased from less than NGN100mn in

June 08 to over N900m in September 2012

One of the most innovative retail bank in Nigeria

Best Credit Card in Nigeria award (2nd year running) (Expo Africa)

Focus on adding value to customers and lowering

barriers to banking developing propositions for un(der)banked population through partnerships with EFINA,

WWB, USAID and IFC

Implementation of the above growth strategies expected to increase

Over 7,348 POS deployed

Total retail deposits of N267.8bn funds about 48% of banks Naira

balance sheet and accounts for 34% of total deposits

Total risk assets of N68.0bn comprises 12.6% of total loan portfolio

5.3 4.8

Retail Risk Assets Classification (NBn)

number of active customers and diversify income streams

Geographic Presence

3.9 2.7 2.7 2.6

9.3 8.7 8.4 8.2 7.9

30.5 33.3 33.0 34.7 38.1

. . .

South South

Total: 23

North East

Total: 13

South West

Total: 13

South East

Total: 48

223

Total: 76

25

.2 . . 11.5 10.2.

Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012Personal Loan Autoloan and Lease Mortgages MSME Credit Card

North CentralTotal: 39North WestTotal: 11


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Retail Banking The Most Customer Centric Retail Bank in Nigeria

PersonalLoan 15%

(24%)

Sep 2012 (Dec 2011)

18% 24%

Time

deposits12% (10%)

Sep 2012 (Dec 2011)

Mortgage12%

(13%)

24%

13% (13%)

MSME

CreditCard 13%

(7%)

53% (51%)

Savings &Current

A/C 88%

(51%) Autoloan& Lease4% (4%)

Total Retail Loans N68bn (Dec 2011: N65bn) Total Retail Deposits N268bn (Dec 2011: N230bn)

Optimise channel mix to enable customers to self-select the most appropriate channel to interact with us in a way that provides value to

the customer and the organisation

Offerin consumers the broadest ran e of services throu h full multi-channel inte ration and o timization

Comments

26

Training the sales force and relationship managers to be more effective and efficient

Customized cross-selling by leveraging relationships, brand and technology

Segmenting our mass customer base is key to delivering relevant personal banking solutions


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Retail Bankin Quarterl Trend in De osits

Retail Deposits (NBn)

28% 17%

Customer Recruitment - Focus on adding value tocustomers and lower barriers to banking through

Strategy for deposit growth

90% 90% 88% 88% 88%

10% 10% 12% 12% 12%

creating a consistent customer experience acrosskey channels: branches, online, mobile devices, andcontact centres

N210bn N230bn N248bn N265bn N268bn


Low Cost Deposits Fixed Deposits

- -Liabilities Grow customers base by providinginnovative product propositions to suit their needs.

Customer Experience Provide a consistentexperience across all channels while directingcustomers to their channels of choice.

51% 51%

Deposits (NBn)Retail Deposits to Banks Total Deposits Naira (%)

Customer Centricity48% 48%

Achieving

Leadership

in Retail

Financial

Niche Market

Deployment of modern technology

27Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012

Operational excellence


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Retail Bankin Continues to show Health Growth

Retail Quarterly Fee Revenue (NBn)

50% 69%65.0 65.1 68.0

Retail Risk Assets (NBn)

1.81.6

1.92.2

2.7. .

Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012

8% 8% 10% 12% 13%

Retail Risk Assets Classification (NBn)

Regular monthly Fee Income for Q3 2012 of over N900

million

Comments

6% 4% 4% 4%

15% 13% 13% 13% 12%

48% 51% 52% 53% 56% Average product sales approaching 50,000 per month

High margin, high fee business driving growth in

profitability

28

23% 24% 21% 18% 15%


Personal Loan Autoloan and Lease Mortgages MSME Cre. Card


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Outline

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29


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Diamond Bank Outlook for Q4 2012

The return to profitability since Q1 of 2012 is expected to continue in Q4 2012 following

Despite persisting security challenges in some parts of the country, the overall investment

,

Sectors

Our growth strategy remains focused on organic expansion in the short term to deliver

superior shareholder value

On the back of our sustained profitability in Q3 2012, we have again reviewed ourprofitability projection for Full Year 2012 upwards with target ROE from minimum of 15%

to above 17.5% by the end of the 2012 Financial Year

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Bank Statement of Financial Position 9M 2012

9M 2012

N' billion

FY 2011

N' billion

9M 2011

N' billion

YtD

%

Q3 2012

N' billion

Q2 2012

N' billion

QoQ

%

Cash & Balances with Central Banks 76.4 54.4 22.1 40.4 76.4 54.4 40.4

Comments

Loans & Advances to Banks 97.0 72.1 86.3 34.5 97.0 85.9 12.9

Loans & Advances to Customers 489.0 347.3 355.7 40.8 489.0 459.7 6.4

Investments 131.5 179.2 118.4 (26.6) 131.5 109.1 20.5

Net loan book up 41% or

N142 billion to N489

billion year-to-date, this

implies acceleration of

9% in Q3 2012, from 32%

rowth in H1 2012 to 41% . . . . . . .

Fixed Assets & Intangibles 39.9 35.9 34.6 11.1 39.9 36.8 8.4Deferred Tax Asset 14.0 10.8 7.5 29.6 14.0 10.9 28.4

Other Assets 13.4 6.3 13.5 112.7 13.4 44.0 (69.5)

growth in 9M 2012.

Deposit base up 14% to

N695 billion (QoQ) and

up 28% year-to-date

Total Assets 918.8 719.5 659.5 27.7 918.8 864.6 6.3

Deposits from Banks 6.2 3.9 4.6 59.0 6.2 4.8 29.2

Deposits from Customers 695.4 545.2 485.5 27.5 695.4 612.7 13.5

Total assets up N54

billion or 6% QoQ to

N919 billion and up 28%

year-to-date (Dec 2011:

N719 billion)

er a es 35.0 26.4 30.4 32.6 35.0 83.8 (58.2)

Borrowings 51.9 54.9 26.5 (5.5) 51.9 55.8 (7.0)

Tier 2 Capital 26.7 - - - 26.7 15.8 69.0

-

34

. - - - . . .

Equity 85.1 89.1 112.5 (4.5) 85.1 86.8 (2.0)

Total Equity & Liabilities 918.8 719.5 659.5 27.7 918.8 864.6 6.3


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Bank Ke Performance Metrics 9M 2019M 2012 H1 2012 Q1 2012 FY 2011

NIM 9.7% 9.7% 10.0% 9.1%NPL 5.1% 7.7% 8.2% 9.9%

Cost of funds 2.8% 2.8% 2.6% 2.1%

Coverage 136.0% 95.5% 91.4% 69.9%

Loan-to-Deposit Ratio 75.6% 80.9% 72.4% 68.4%

Capital Adequacy 16.2% 15.2% 13.3% 14.9%

Liquidity 34.1% 39.6% 45.9% 46.3%

Cost to Income Ratio 48.3% 51.4% 49.5% 64.5%

35


36/36

Bank Risk Mana ement Metrics 9M 201

9M 2012

N billion

H1 2012

N billion

Q1 2012

N billion

Q4 2011

N billion

. . . .

NPL 26.7 38.0 34.9 36.9

Provisions 36.6 36.3 31.9 25.8

NPL ratio 5.1%7.7% 8.2%

9.9%NPL coverage 136.0% 95.5% 91.4% 69.9%

36

diamond bank - ir presentation (q3 2012 results) 161012

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