FIRST BANK OF NIGERIA PLC REPORTS 71% INCREASE IN DEPOSIT LIABILITIES AND PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS INCREASE OF 12% FOR THE YEAR ENDED 31 MARCH 2009

First Bank of Nigeria Plc (Bloomberg: FBN NL) (“FirstBank” or the “Company”), the most diversified financial services group in Nigeria with international presence in London, Paris, Johannesburg and Beijing announces its audited results for the year ended 31 March 2009.

Commenting on the results, Stephen Olabisi Onasanya, Group Managing Director of FirstBank, said:

“Despite the challenging market conditions, FirstBank continues to capitalise on its well established value chain in Nigeria’s financial services sector and has achieved another year of strong organic revenue growth. Recognition of the Bank as one of the strongest and most dependable banks in Nigeria, especially in a time of global downturn, has driven considerable growth in our deposit base, with the total group’s deposit liabilities increasing by 71% to N1.2 trillion. Furthermore, strong year-on-year growth was recorded across all business lines. This is a fantastic achievement and FirstBank is well positioned to continue to grow its asset base supported by a sustained robust capital position with a strong capital adequacy ratio of 24.69% and stable funding.

“Going forward, our growth aspirations will be driven by our commitment to attain the full benefits of scale and scope by accelerating growth and diversification of assets, revenue & profit. At the strategic level, we have identified three pillars that we believe are integral to our objective: they are acceleration of growth by diversification of assets, revenue and profit; service and operational excellence via a single-minded commitment to operational excellence; the design of appropriate institutional processes, systems and capabilities necessary to deliver world class service levels; performance management and people to deliver unmatched results by creating a performance culture with clear individual accountability at all levels as the foundation of all that we shall be doing over the medium-term. There is no doubt that the trajectory going forward would encounter pockets of turbulence. Within this prognosis, our challenge at FirstBank is to build positive momentum around these three pillars and to build on our progress to date.”

Group Financial Highlights

• Gross Earnings of N218.3 billion, an increase of 40%, compared with prior year (N155.7 billion March 2008)
• Profit Before Exceptional Item and Taxation of N53.8 billion, an increase of 12% (N47.9 billion March 2008)
• Exceptional item of N26.1 billion – a provision made for the decrease in value of investments in its asset management and trusteeship business courtesy of shares held on behalf of clients under a guaranteed principal fund agreement and on account of the company’s proprietary investments
• Profit Before Tax of N27.7 billion, a decrease of 42% (N47.9 billion March 2008)
• Profit After Tax of N12.6 billion, a decrease of 66% (N36.7 billion March 2008)
• Total Assets of N2 trillion, an increase of 32% (N1.5 trillion March 2008)
• Deposits liabilities of N1.2 trillion, an increase of 71% (N700 billion March 2008)
• Loans & Advances of N740.4 billion, an increase of 59% (N466.1 billion March 2008)
• Non-performing loan ratio increased to 5% (1% March 2008) Provisions for loans & advances of N23.5 billion, an increase of 142% (N9.7 billion March 2008)
• Cost/income ratio at 67% (64% March 2008)
• Shareholders’ Funds of N337.4 billion, a decrease of 4% (N351.9 billion March 2008)
• EPS N0.51 (N2.67 basic March 2008)
• Proposed DPS of 135k per ordinary share of 50k
• Proposed bonus Issue of one ordinary share of 50kobo to shareholders for every 6 ordinary shares previously held.

Sustained growth levels achieved across all major business lines
Retail and Corporate Banking profit before tax of N46.7 billion up 23% (N38 billion March 2008). Commenting on performance, Mrs Bola Adesola, Executive Director, Lagos said: “growth was driven by the significant expansion of the loan book over the last 12 months. This was balanced by our ability to continue to capture lower cost retail deposits despite the challenging economic environment and resulted in net interest income increasing by over 46%”. Mrs Omolade Olawore, head of credit risk management added: “from a risk perspective, there will be a slowdown in loan growth in 2009. Focus will be on maximizing the yield on the portfolio and collection of obligations towards improving profitability and asset quality. The risk acceptance criteria will be tightened, so that only good quality assets are created.”

Investment and Capital Markets profit before tax of N4.5 billion down 43% (N7.8 billion March 2008). Speaking from Lagos, Mr Bayo Adeleke, CEO of FBN’s investment banking subsidiary commented: “With the downturn in the equity market, our equity capital markets activity slowed in 2008. Moving forward we see a strong pipeline in the debt capital markets particularly state government bonds and also the nascent corporate bond market in Nigeria. The renewed government focus on infrastructure is providing a growing pipeline for PPP deals in power, transportation and housing. In addition, reform in the oil sector is creating new opportunities for private sector participation in project and structured finance that will drive income growth into 2009. We also see significant opportunities for our investment management business in 2009 attracting long term investment funds in real estate investment trusts, balanced mutual funds and other structured investment products we are working towards launching in Nigeria.”

Asset management profit before tax of N1.5 billion (N1.0 billion March 2008) “The Group’s Asset Management business was exposed to unprecedented levels of volatility in the capital markets compounded by the illiquidity associated to some of its positions related to third party managed funds” said Mrs Nana Dawodu, MD, First Trustees Nigeria Ltd. “This resulted in the Group taking a provision of N26.1 billion for the diminution in value of investments held on behalf of clients under a guaranteed principal fund agreement including some of the Bank’s proprietary funds. Going forward we intend to leverage the FirstBank branch network for business, aggressively growing our public trust and private trust sign ups and reducing costs by streamlining operations and diversifying income streams”.

Mortgage Banking profit before tax of N541 million (N319 million March 2008). Mr Boye Adebayo, acting MD of the Group’s Mortgage banking subsidiary commented that: “FirstBank’s mortgage business was underpinned by significant income growth from property trading and development in 2008 as our continued IT and HR initiatives enabled us to maintain our competitive edge and grow market share. This resulted in a 70% rise of our profit before tax for the year. Growth in the medium-term will, however, depend on a clear focus on servicing the middle market, which we believe will be indispensable. With domestic demand forecast to fall farther, on-going efforts at market retention will be reinforced by exploring partnerships and joint ventures with landowners in viable locations and/or other reputable developers in order to share risks. Just as important will be the need to focus on completing on-going projects on-time, on-schedule and on-specification”.

Operational Highlights

• Number of branches/agencies and subsidiaries increased by 15% to 523 (469 March 08)
• Full adoption of International Financial Reporting Standards (IFRS) as from and including for the year ended March 31, 2009
• FirstBank Microfinance commenced operations in January 2009 accessing the micro loans market by leveraging FirstBank’s brand reputation for integrity, liquidity and market accessibility
• FirstBank’s Private equity & venture capital business has revised its strategy away from management of Small and Medium Enterprise Equity Investment Scheme (SMEEIS) funds. Over the next twelve months it will focus on late and growth capital stage investment opportunities. This strategy sets investment size at between N250 million and N600 million, and requires that the businesses invested in shall be scalable medium to large businesses.