Guaranty Trust Bank plc Financial Results - Dec 2008

(10 months)
Guaranty Trust Bank

Important Notice
This presentation is based on the financial results of the Banks audited results for the period ended December 2008 consistent with Nigerian GAAP only. Guaranty Trust Bank Plc (GTBank, the Bank) has obtained some 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 such information or with GTBanks 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. Except where indicated, the exchange rate adopted throughout the presentation is US$1 to N139.5 (official exchange rate December 31, 2008). Unless stated otherwise, all figures and ratios have NOT been annualized and are reported on a 10month basis. This presentation also contains forward-looking statements that relate to, among other things, GTBanks plans, objectives, goals, strategies, future operations and performance. Such forward-looking statements may be characterised by words such as estimates, expects, projects, believes, intends, plans, may, will and should and similar expressions but 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 GTBanks 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 forwardlooking 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.
Guaranty Trust Bank

Outline
GTBanks Financial Highlights GTBank Overview (DEC 2008) Operating Environment Business Strategy and Objectives

Guaranty Trust Bank

GTBanks Financial Highlights

Guaranty Trust Bank

GTBanks Financial Highlights (YE Dec 2008)

DEC 2008
(10 months) PBT - $247m Deposits - $3.2bn Loans - $2.99bn NPL - 1.7% Shareholders Funds - $1.3bn Assets* - $9.5bn

Robust & Sustainable Growth (10 months)

PBT

- +26.7%

Deposits Loans -

+25.2% +42.8%

NPL one of Industrys lowest Shareholders Funds - +11.5%

Assets* - +27.4%

**RoAA of 5.0% & **RoAE of 24.3%, up by 40% and 18% (respectively) from Feb 2008

Continuously Improving

Over 1.35m retail customers as of Dec 08 up by 21% from 1.07m in Feb 08 Cost/Income ratio of 50.69%, improved by 5.2% from Feb 2008 Most Customer Focused and Friendly Bank [retail] in 2008 by KPMG and Vanguard; Best Bank in Corporate Governance in 2008 by Vanguard

GTBank Financial Highlights

Continued Increase in local branch network and alternate delivery channels

Growing International, and Local presence

Opened new bank subsidiary and commenced operations in London in May 2008 Received provisional license to operate in Liberia Completed Anglophone Phase of Strategic West African expansion

Setup $2bn GMTN program in June 08;

Global Medium Term Note Program

Access to international capital markets with greater flexibility; Program allows multi-currency issues if and when required; Aim is to bolster banks FCY balance sheet and meet clients demand

Guaranty Trust Bank

* Comprised of Total Assets and Contingents ** Using annualized estimates All dollar conversions are computed at N139.5 - $1

Income Statement
Profit and Loss Accounts 10 months ended 31 December 2008 Group Group 31 Dec. 2008 29 Feb. 2008 10 months 12 months $'m $'m 746.38 488.93 0.02 (160.31) 328.64 (28.98) 299.66 257.43 557.10 (304.93) 252.17 (49.19) 202.98 584.20 379.20 0.02 (139.18) 240.04 (28.20) 211.84 204.98 416.81 (220.63) 196.19 (44.44) 151.75 Bank Bank 31 Dec. 2008 29 Feb. 2008 10 months 12 months $'m $'m 682.04 459.09 0.02 (152.87) 306.24 (28.23) 278.01 222.93 500.94 (253.93) 247.00 (45.76) 201.24 555.30 365.92 0.02 (136.15) 229.79 (27.56) 202.22 189.36 391.58 (196.61) 194.97 (40.92) 154.05 54% 52%

YOY Growth* Group 53% 55%

YOY Growth* Bank 47% 51%

GROSS EARNINGS INTEREST AND DISCOUNT INCOME Lease finance income Interest expense INTEREST MARGIN Loan loss expense (net)

64%

60%

Other income

GTBank Financial Highlights

Operating expenses PROFIT BEFORE TAXATION Taxation PROFIT AFTER TAXATION

* - Annualized estimates All dollar conversions are computed at N139.5 - $1

61%

57%

Guaranty Trust Bank

Balance Sheet
Balance Sheets As at 31 December 2008 Group 31 Dec. 2008 10 months $'m 2,024 1,018 3,002 85 284 489 6,901 Group 29 Feb. 2008 12 months $'m 855 1,287 2,066 53 244 770 5,274 Bank 31 Dec. 2008 10 months $'m 1,806 914 2,985 287 258 356 6,608 Bank 29 Feb. 2008 12 months $'m 742 1,252 2,090 159 227 677 5,147

YOY Growth* Group 137% -21% 45% 60% 17% -37% 31%

YOY Growth* Bank 143% -27% 43% 80% 14% -47% 28%

ASSETS Cash and short-term funds Short term investments Loans and advances Long term investments Fixed assets Other assets TOTAL ASSETS LIABILITIES Deposits and other accounts Borrowings Other liabilities Equity

GTBank Financial Highlights

3,385 451 1,760 1,305 6,901 2,971 9,872

2,602 402 1,099 1,171 5,274 2,334 7,608

3,203 451 1,667 1,287 6,608 2,894 9,502

2,559 402 1,031 1,155 5,147 2,312 7,459

30% 12% 60% 11% 31% 27% 30%

25% 12% 62% 11% 28% 25% 27%

Contingents Balance Sheet Size

* - Growth in 10 months (10 month Dec 08 vs. 12 month Feb 08) All dollar conversions are computed at N139.5 - $1

Guaranty Trust Bank

Financial Ratios
Key Financials ($ 'm) Balance Sheet Total Advances and Loans to Customers Total Deposits from Customers Shareholders' Funds Total Assets Total Assets and Contingents Profit and Loss Account Interest Income Non-Interest Income Profit Before Taxes Profit After Taxes Performance Ratios Return on Average Assets (RoAA) 3.41% 16.15% 6.44% 55.16% 3.48% 23.63% 6.16% 52.01% 3.32% 27.88% 5.40% 54.01% 3.59% 20.62% 6.79% 53.48% *5.04% *24.28% 7.68% 50.69% 109.40 58.03 50.21 38.21 152.97 76.21 71.86 56.67 224.89 107.61 110.04 93.28 365.92 189.36 194.97 154.05 459.09 222.93 247.00 201.24 45.42% 42.11% 51.59% 54.31% 466.20 685.04 259.27 1,203.57 1,614.11 598.40 1,525.69 291.37 2,186.96 2,774.23 815.09 2,084.53 340.02 3,429.17 4,253.55 2,089.83 2,559.18 1,154.70 5,146.95 7,458.51 2,985.26 3,203.00 1,287.10 6,608.01 9,501.55 62.39% 49.59% 51.95% 55.99% 58.86% 28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31-Dec-08 CAGR

GTBank Financial Highlights

Return on Average Equity (RoAE) Net Interest Margin Cost/Income Balance Sheet Ratios Loans to Customers/ Customer's Deposits Liquidity Ratio Capital Adequacy Ratio Asset Quality Ratios NPL/Total Loans

63.70% 63.33% 28.95%

39.20% 69.22% 22.41%

33.40% 69.99% 16.64%

70.60% 51.86% 27.55%

81.70% 42.00% 22.11%

2.11% 157.25%

3.37% 120.59%

2.00% 127.60%

1.19% 172.00%

1.70% 122.00%

Guaranty Trust Bank

Provisions for Loan Losses/NPL * Based on annualized estimates

Milestones
Key Events
GTBank moves year end to December
In line with recommendations issued in May 2008 by the Central Bank of Nigeria (CBN), GTBank moved its year end from February 28 to December 31.

Ratings and Awards

Ratings (2009)
Agusto & Co. Fitch Standard & Poors Aaa AA- BB-

GTBank opens UK subsidiary.

GTBank opens Guaranty Trust Bank UK, a fully operational retail bank located at 62 Margaret Street, London.

Awards
Most Customer Focused Bank (retail) KPMG 2009 2nd Most Customer Focused Bank (corporate) KPMG 2009 Best Bank in Nigeria - JP MorganChase, Oct. 2008 Report Bank of the Year, Best Bank in Corporate Governance, Most Customer Friendly Bank Vanguard Awards Deal of the Year for Nigeria 08 Banker Magazine Awards

Setup $2bn Global Medium Term Note Program (GMTN) Launched Asset Management Subsidiary- April 08

Growing Presence
International

New Products
Nigerias first fully automated mobile bank branch Nigerias first Drive-Through ATMs Fully automated E- Branches Initiated development of Naira Denominated Mastercards Initiated the development of Prepaid Master & Visa Cards Developed new Student dedicated accounts

GTBank Financial Highlights

GTBank completes Anglo West Africa Expansion

With the acquisition of a provisional operating license in 2008 and the launch of GTBank Liberia in 2009, GTBank completed the Anglophone phase of its planned expansion into West Africa

Nigeria
142 Branches 398 strategically located ATMs 1.34million retail customers

Guaranty Trust Bank

GTBank Overview (DEC 2008)

Guaranty Trust Bank

10

Robust Profitability
Stable and Consistent Growth Stable and Consistent Growth
Stability and Consistency
Stable and consistent Return on Average Equity post capital raising in 2004 and 2007 Stable and Consistent Return on Average Asset Stable and Consistent Dividend Payout Stable and Consistent Growth in Earnings with 53% CAGR over past 5 financial years
3.41% 3.48% 3.32% 3.59% 5.04% 16.15% 23.63% 20.62% 27.88% 24.28%

RoAE and RoAA RoAE and RoAA

28- Feb-05

28- Feb-06

28-Feb-07

28-Feb- 08

31-Dec- 08

Return on Average Assets (RoAA)

Return on Average Equity (RoAE)

Source: Company data, as of 31 December 2008 (10 months)

Dividends Dividends GTBank Overview (Dec 09)

Earnings [after tax] $m Earnings [after tax] $m

54% 59% 63% 67% 73%

R CAG

% 54.3
154.05

201.24

93.28 38.21 56.67

Feb 2005 Feb 2006 Feb 2007 Feb 2008 *Dec 2008
To tal Dividend P er Share EP S

28-Feb-05

28-Feb-06

28-Feb-07

28-Feb-08

31 Dec 2008

## Dividend Payout ratio

Profit After Taxes ($ 'm)

Source: Company data, as of 31 December 2008 (10 months)

* - Proposed Final Dividend for Dec 2008. No interim was declared due to new YE

Guaranty Trust Bank

Source: Company data, as of 31 December 2008 (10 months)

11

Business Overview
Selected highlights
Focus on multinationals and large corporates, with turnover in excess of US$40 m Organised in 5 groups: Energy, Telecoms, Corporates, Corporate Finance and Treasury Voted Best Bank in Corporate Governance by Vanguard in 2008

Active customers
About 400

Contribution to GTBank

Institutional banking

27.2%

46.9%

Commercial banking

Focus on small & medium companies, with turnover between US$2 m and US$40 m Extensive product range: tailor-made solutions and flexibility In-depth knowledge of local market Focus on: Federal government State governments Local governments and clients Focus on retail customers Rapidly developing business 142 branches and 398 ATMs Extensive leverage of alternative distribution channels

67.8%

Over 50,000

18.7%

17.9%

Public sector banking

Active in all government segments

28.4%

GTBank Overview (Dec 09)

16.8% 9.9% 36.2% 5.8% 14.8% 9.6%

Loans Deposits PBT

Retail banking

Over 1.34m retail customers

Supported by strong support centres

Finance

Operations/ HR

Risk management

Information technology

Guaranty Trust Bank

12

Regional Presence and Diversification

GTBank (Sierra Leone) Commenced Operations Jan 2002 84% Ownership 4 Branches P&L Positive Total Number of Banks: 13 GTBank (Gambia) Commenced Operations Mar 2002 78% Ownership 8 Branches P&L Positive Total Number of Banks: 11 GTB Asset Commenced Operations - Feb 1991 Listed on the NSE & LSE Over 300,000 Shareholders 6 overseas subsidiaries 5 Bank Subsidiaries 5 non-Bank Subsidiaries GTBank Group Guaranty Trust Assurance plc Commenced Operations -May 2002 74% Ownership Total Number of Insurance Coys US$13.5m profit before taxes (2008) Strong National Coverage through GTBanks regional branch network

GTBank Nigeria

Management Limited Commenced Operations April 2008 100% Ownership AM products and services to HNIs and Institutions

International
GTBank (Ghana) Commenced Operations Mar 2006 70% Ownership 10 Branches P&L Positive (Others)
Mauritania Senegal Benin Republic Togo
Niger Mali

Non Bank

GT Homes Limited Commenced Operations - Jan 2008 100% Ownership Financing of property development and mortgages

Strategic Expansion

GTBank Overview (Dec 09)

Total Number of Banks: 26 GTB UK (London) Commenced Operations - May 2008 To facilitate trade and retail between the UK and West African countries

Guinea

Cte d'Ivoire

Burkina Fasso

Guinea Bissau

Regional Expansion into West Africa (WA) Completed expansion plans into Anglophone West Africa Expansion into Francophone West Africa underway Positioning for growth and reforms Single Currency Integration of WA economies Promotion of WA regional trade, gas pipeline etc.

GTB Registrars Limited Diversification in profitable business segments with strong medium to long term prospects Strengthen Competitive advantage by offering existing clients products to cater to their financial needs. Increase profitability and market share Focus on customer satisfaction and retention Increase operational synergies within financial services offered to clients Commenced Operations - Sep 2006 99% Ownership Captive Registrar Services

GTB Finance BV Commenced Operations - Dec 2006 100% Ownership SPV for debut of the $350mm Eurobond issue in January 2007

GTBank (Liberia) Commenced Operations Mar 2009 100% Ownership Total Number of Banks: 8

Guaranty Trust Bank

13

Revenue Composition
Strong Revenue-Growth model Strong Revenue-Growth model
Strong Revenue Growth
45.4% CAGR for Interest Income Mix 42.1% CAGR for Non- Interest Income Mix Total Revenue 5 year CAGR of 44.3%

Revenue growth $m (Gross Earnings) Revenue growth $m (Gross Earnings)

R CAG

% 44.3
1 89.36

222.93

Growth generated by increased lending opportunities in the real sector, resulting in greater opportunities for fees and commissions. Increased transactions volumes to generate increased income from transaction fees, charges, commissions and foreign exchange earnings

1 07.61 76.21 58.03 1 09.40 28-Feb-05 1 52.97 28-Feb-06 224.89 459.09 365.92

28-Feb-07

28-Feb-08

31Dec 2008

Interest Income

Non-Interest Income

Source: Company data, as of 31 December 2008 (10 months)

Interest Income Mix $m Interest Income Mix $m

459

Non Interest Income Mix $m Non Interest Income Mix $m

.1% 42
223 189 15% 18%

GTBank Overview (Dec 09)

R CAG

.4% 45

366

R CAG
86%

225 153 109

64% 76 5% 31%
Feb-08
4%

108 13% 12% 21% 10%

Dec-08 Lo ans and A dvances

38% 38%

52% 3% 10% 3% 45%

Feb-07

58 43% 45%
Feb-06

36% 44% 47% 51%

Feb-07 Feb-08 Dec-08

68% 29%
Feb-05

71% 2% 26%
Feb-06

39% 40%
Feb-05

Dealing and Other Securities

P lacements and Sho rt Term funds

Commissions

Fees and charges

Other Incomes

Guaranty Trust Bank

Source: Company data, as of 31 December 2008 (10 months) Note 1. Other fees include Foreign Exchange earnings and other fees

Source: Company data, as of 31 December 2008 (10 months)

14

Efficiency and Productivity Improvements

Efficient and Conservative Cost Profile Efficient and Conservative Cost Profile
Conservative cost profile Cost to income ratio of 50.69% Below managements maximum of 60% Stable Cost profile Maintained low infrastructure related costs such as power etc through innovative operational policies. Personnel costs in line with industry GTBank remains one of the most efficient in Nigerian banking industry
50.69%

Cost/Income ratio Cost/Income ratio

54.01% 53.48%

28-Feb-07 Cost to Income

28-Feb-08

31 Dec 2008

Source: Company data, as of 31 December 2008 (10 months)

Branches and Employees Branches and Employees GTBank Overview (Dec 09)

Stable Operating Cost profile Stable Operating Cost profile

2500 2000 1500 1000 500 0

28-Feb-07 Staff B ranches 1 7 61 1 02

1 31

1 42

150 100

60% 58%

1 ` 894

2355

50 0

60% 12% 28%

10% 13% 29% 30%

28-Feb-08

31 -Dec-08

Feb-07
Staf f Expenses Depreciat ion

Feb-08
Operat ing Expenses

Dec-08

Guaranty Trust Bank

Source: Company data, as of 31 December 2008 (10 months)

Source: Company data, as of 31 December 2008 (10 months)

15

Strong Balance Sheet Growth

Comments Comments
Strong asset and deposit growth of 58.9% and 49.6% respectively (CAGR Feb 2005 Dec 2008) Asset growth driven by government reforms and recent economic growth in the Nigerian economy Diverse Funding mix with priority on increasing deposits through steady growth and optimization of branches and delivery channels Increasingly utilizing funds to high margin top-end quality loan activities
To tal Lo ans 4.25 2.77 1 .61 1 2.08 .53 0.69 0.60 0.82 0.47 2.56 2.09 2.99 3.20 7.46

Asset, Loan and Deposit Growth $bn Asset, Loan and Deposit Growth $bn
9.50

Feb-05 Feb-06 Feb-07 Feb-08 Dec-08 To tal Depo sits To tal A ssets & Co ntingents

Funding base diversified further through issue of US$ 350m Eurobond and US$ 824m GDRs

Source: Company data, as of 31 December 2008 (10 months)

Asset Base and Components Asset Base and Components GTBank Overview (Dec 09)

Funding Mix Funding Mix

14% 2%

11% 4% 27%

15% 2% 24%

18% 3%

9% 4%
22%

13% 14%

10% 22% 17% 20% 8% 25% 19%

39%

41% 33%

45%

17% 4%

3%

12%

7%

17%

34%

14% 24%
57%

70% 61% 50% 48%

28%

24%

26% 14% Feb-07

Lo ans and advances

27%

Feb-05
Cash and sho rt-term funds

Feb-06
Sho rt term investments

Feb-08
Lo ng term investments

Dec-08
Other assets

Feb-05 Deposit s and ot her account s

Feb-06 Borrowings

Feb-07 Other Liabilit ies Equity

Feb-08

Dec-08

Guaranty Trust Bank

Source: Company data, as of 31 December 2008 (10 months)

Source: Company data, as of 31 December 2008 (10 months)

16

Strong Net Interest Margins

Comments Comments
Consistently Strong NIM Yield and Cost of liabilities were generally higher in the industry due to initial anticipation of common YE among banks. This fuelled fierce competition for deposits which drove rates higher. The CBN has released a recent directive capping loan interest rates at 22% and deposit rates at 15% to avoid similar spikes in the renewed drive to a common year end. Consistently low cost of liabilities Growth in demand deposits through extensive branch network and increase in alternate delivery channels.
Feb-07 Average Yeild on Assets Feb-08 Dec-08 12.98% 9.88%

Yield on Interest Earning Assets Yield on Interest Earning Assets

9.32%

Source: Company data, as of 31 December 2008

Cost of Interest Bearing Liabilities Cost of Interest Bearing Liabilities GTBank Overview (Dec 09)

Net Interest Margin Net Interest Margin

5.30%

4.09% 3.70%

7.68% 6.79% 5.40%

Feb-07 Average Cost of Liabilities

Feb-08

Dec-08

28-Feb-07 Net Interest Margin

28-Feb-08

31-Dec-08

Guaranty Trust Bank

Source: Company data, as of 31 December 2008 (10 months)

Source: Company data, as of 31 December 2008 (10 months)

17

Capital Adequacy and Liquidity

Comments Comments
Capital Adequacy well above Basel requirement of 10% Strong liquidity ratio above regulatory minimum of 25% Loan to Deposit ratio shows growth in lending post January 2007 Eurobond offering
28.95% 22.41% 16.64% 27.55% 22.11%

Capital Adequacy Ratio Capital Adequacy Ratio

28-Feb-05

28-Feb-06

28-Feb-07

28-Feb-08

31-Dec-08

Capital Adequacy Ratio

Source: Company data, as of 31 December 2008

Loan to Deposit Ratio Loan to Deposit Ratio GTBank Overview (Dec 09)

Liquidity Ratio Liquidity Ratio

81.70% 70.60% 63.70%

63.33%

69.22%

69.99% 51.86%

39.20%

42.00%
33.40%

28-Feb-05

28-Feb-06

28-Feb-07

28-Feb-08

31-Dec-08

28-Feb-05 Liquidity Ratio

28-Feb-06

28-Feb-07

28-Feb-08

31-Dec-08

Loans to Customers/ Customer's Deposits

Source: Company data, as of 31 December 2008

Source: Company data, as of 31 December 2008

Guaranty Trust Bank

18

Loan Portfolio Diversification and Quality

Best in Class in Nigerian banking industry Best in Class in Nigerian banking industry
GTBank is taking advantage of quality lending opportunities in the institutional and commercial banking space Portfolio well spread across sectors with concentration is stable and established institutions Consistently improving asset quality on the back of sound risk management practices NPL ratio of 1.7% - within Managements target of < 5% High coverage ratio - well above 100% Foreign exchange risk averted through proper matching of dollar funding (e.g. Eurobond) to dollar generating clients only. This applies across all forms of foreign exchange transactions.
Transportation & Communication, 21.89% Finance and Insurance, 8.92% Construction/Real Estate, 11.21% General Commerce, 28.72%

Industry Concentration Industry Concentration

Agriculture, 0.39% Mining, 7.39%

Manufacturing, 21.22%

Public Utilities, 0.25%

Source: Company data, as of 31 December 2008

NPL and Coverage Ratios NPL and Coverage Ratios

GTBank Overview (Dec 09)

2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 28-Feb-07 NPL/Total Loans 28-Feb-08 Provisions for Loan Losses/NPL 31-Dec-08

200.00% 180.00% 160.00% 140.00% 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00%

Guaranty Trust Bank

Source: Company data, as of 31 December 2008

19

GTBanks Profile
Pre-eminent Institutional & Commercial Banking Franchise
Institutional Banking Institutional Banking Traditionally strong, GTBank continues to cultivate and expand key relationships
Relationships with 90% of Nigerias corporates

Commercial Banking Commercial Banking

Covers the middle market Segment organised by geography and industry sectors to achieve proximity to clients to better address their needs Broad lending, product offering and customized solutions
Overdrafts, term loans, commercial paper, bankers acceptances Most loans are secured by real estate

Significant boost to the segment following the increase in capital base

Able to increase lending to large borrowers (i.e. larger single obligor limit) import finance facilities; export credit lines; US denominated credits; equipment finance etc oil and gas; telecoms; real estate; construction manufacturing

Wide product offering which includes:

GTBank Overview (Dec 09)

Focus on stable, high growth industries

Syndications Syndications

Key Clients Margins on Corporate Loans:

10% average NIM 0.5% facility fee;
US$1,278 Million Syndicated Notes Issuance Facility

Also under the corporate banking umbrella

Treasury Group consisting of ALM, Funds Management and Trading (5 desks) Units Corporate Finance providing investment banking advice and loan syndications to existing Clients.

Danote Group of Companies Lead Arranger

Guaranty Trust Bank

20

GTBanks Profile (Contd)

Strategic Distribution Expansion to Capture Increasing Opportunities
North West
# Branches - 10 # ATMs - 37

Effectively Employing Alternative Distribution Effectively Employing Alternative Distribution

North East
# Branches - 14

Established countrys 1st fully integrated Interactive Call Centre Other distribution channels such as internet banking, telephone banking, mobile banking, etc deployed nationwide

South West
# Branches - 25 # ATMs - 63

# ATMs - 29

Lagos
# Branches - 50 # ATMs - 149

Abuja - NC
# Branches - 15 # ATMs - 46

Total
# Branches - 142 # ATMs 398

South East
# Branches - 28 # ATMs - 74

Bank on wheels: mobile banking unit to service remote communities

Source: Company data, as of 31 December 2008

GTBank Overview (Dec 09)

Numbers of Branches and ATMs

Retail Banking Opportunity Retail Banking Opportunity

398 214

Servicing increased demand for retail banking products and services by Nigerias emerging middle class Target market:
Traditionally, the upper segment of the economy; mainly employees of institutional banking clients Re-branded to attract a broader segment

34

39

60

72 84

83 108

131

142

Feb 03
Branches ATM s

Feb 04

Feb 05

Feb 06

Feb 07

Feb 08

Dec 09

Increased reach efficiently and effectively by employing alternative distribution channels GTBank is focused on expanding the liability side while following a prudent approach to lending Focused on customer service and support

Guaranty Trust Bank

Source: Company data, as of 31 December 2008

21

GTBanks Profile (Contd)

Expanding distribution network and channels
Strong and growing local presence Strong and growing local presence
398 ATMs located in branches and in strategic locations
298 244

Continuing increase in Branches & ATMs Continuing increase in Branches & ATMs
398 357

184 new ATMs deployed since Feb 2008 Plan to increase ATM network to 1,000 by 2012
1 32

1 39

1 41

1 42

Significant growth recorded in utilisation levels (branches/ATMs)

Q1 B ranches A TM Q2 Q3 YE (1 mo nths) 0

142 branches and cash centres strategically located in key urban areas as of Dec 2008 11 branches opened since Feb 2008 Several branches in the pipeline, i.e. in construction or awaiting CBN approval Network expected to increase in line with Management projections of 200 branches by 2012

Source: Company data, as of 31 December 2008

Growth in transactions via ATMs Growth in transactions via ATMs

GTBank Overview (Dec 09)

Branches are multifunctional catering predominantly for retail, commercial and public sector clients

400 350 300 250 200 150 100 50 0 Value $'m

4,771 4,137 340

5,298

6,000 5,000 4,000 3,000 2,000 1,000 0

229

263

Q1 Volume '000

Q2

Q3

Source: Company data, as of 31 December 2008

Guaranty Trust Bank

22

GTBanks Profile (Contd)

Leveraging on alternative distribution channels
Sustainable growth profile Sustainable growth profile Telephone Banking Clientele
35,359 26,739 27,900 27,243 26,668 26,905

with impact on retail clientele base with impact on retail clientele base
Telephone banking Available 24/7 to all customers First fully Interactive Voice Response in West Africa Number of active users = 35,359 Plan to use medium to telemarket and cross-sell all banks products

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Internet Banking Clientele

38,186 35,140 31,112 26,852 27,002 32,116

Internet banking and internet payment systems Gaining traction and popularity amongst users Available to all customers Number of active users = 32,1116

GTBank Overview (Dec 09)

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Retail Clientele (in millions)

1 .28 16 .1 1 .20 1 .24 1 .32 1 .35

Bank on Wheels First unit launched in April 2007 Cost efficient way to reach unbanked communities and provide ad-hoc banking services

Jul-08

A ug-08

Sep-08

Oct-08

No v-08

Dec-08

Guaranty Trust Bank

Source: Company data, as of 31 December 2008

23

GTBanks Profile (Contd)

Growth across all distribution segments
Market Position Market Position
One of the 5 principal member banks of MasterCard in Nigeria One of the top banks in transactions per ATM (efficiency) Ranked 2nd in Cards Usage on POS terminals 5th in number of card transactions processed Ranked 4th in number of Point-of-Sale (POS) terminals
Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 1008 875 919

Growth in POS terminals acquired Growth in POS terminals acquired

1,106

1,084

Source: Interswitch Report

Source: Company data, as of 31 August 2008

Growth in Card volumes Growth in Card volumes GTBank Overview (Dec 09)

Consistent growth in ATM & POS terminals Consistent growth in ATM & POS terminals

1,463,213 1,308,619 1,194,126 1,032,202 1,082,043

875 919

1,084 1008

1,106

230

262

298

344

398

Apr-08

Jun-08

Aug-08

Oct-08

Dec-08

Apr-08 ATMs POS Terminals

Jun-08

Aug-08

Oct-08

Dec-08

Guaranty Trust Bank

Source: Company data, as of 31 August 2008

Source: Company data, as of 31 August 2008

24

Operating Environment

Guaranty Trust Bank

25

Macro Economic Overview (2008)

Financial Markets Financial Markets
In 2008, the Global financial markets suffered a severe downturn. The Nigerian financial markets also experienced a similar correction in what, till March 2008, could have been seen as a bull market. Over the course of the year, the Nigerian Stock Exchange Index declined by 45.77%
Dec 31 2007 57,990.22 13,264.82 6,456.90 2,652.28 15,307.78 1,468.36 Dec 31 2008 31,450.78 8,776.39 4,434.17 1,577.03 8,859.56 903.25 YTD Chg. -45.77% -33.84% -31.33% -40.54% -42.12% -38.49%

Exchange Rate Exchange Rate

In 2008, in a reaction to the drastic drop in oil prices and other macroeconomic developments, the Central Bank of Nigeria devalued the Naira from N117/$1 to N139.5/$1 as at December 31, 2008.
145 140

135

130

Nigerian Stock Index Dow Jones Industrial Avg FTSE 100 Index Nasdaq Composite Index Nikkei 225 Index S&P 500 Index

125

120

115

110

105
Se p-0 8 Au g-0 8 No v-0 8 De c-0 8 Ju l-0 8 Oc t-0 8

Crude Oil prices Crude Oil prices

2008 saw a 53.5% decrease in oil prices from Dec 31, 2007 (95.98) to Dec 31, 2008 ($44.60). Inflation increased 76% over the year. Inflation is likely to be sustained due to Naira devaluation in an import dependent economy
$160.00 $140.00 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00
May08 Jul-08 8 08 8 Aug-0 8 Sep-0 8 Nov08 Apr08 Oct-0 8 8 Dec08 Jan-0 Feb-0 MarJun-0

Government Government
To reduce a dependence on oil as a major source of GDP, the Nigerian government began an initiative to introduce programs to boost productivity in the agriculture sector e.g. the N200 Special Fund for Large Agriculture Credit Scheme. The measures are expected to reduce the impact of crude oil price fluctuation and inflation. It is expected that the CBN will be able to curtail further devaluation current exchange rates if oil prices stay near or above $45 (Governments 2009 budgetary benchmark) The SEC and the CBN released new regulations and guidelines to stabilize the market.

Guaranty Trust Bank

Operating Environment

26

Regulatory Environment
Central Bank of Nigeria Central Bank of Nigeria
May 2008 CBN issues circular to Banks to adopt common Year end. August 2008 In reaction to interest rate spikes CBN cancels move to common year end Sept 2008 - Introduced discount window facility Directive to Banks giving them the option to restructure margin loans until 2009 Sept 2008 - CBN reduces MPR from 10.25% to 9.75%, CRR from 4% to 2% and liquidity ratio from 40% to 30%. April 2009 - CBN reduces MPR from 9.75% to 8%, CRR from 2% to 1%, and liquidity ratio from 30% to 25% Dec 2008 - Downward review of net Open Position Limits from 20% - 10% of shareholders funds, Jan 2009 from 10% to 5%, April 2009 from 5% to 1% Jan 2009 - Fx purchases by banks to be used for eligible transactions and cannot be sold to other banks Jan 2009 - Introduction of 5 day utilization for all fx purchases (not limited to RDAS)

Rationale Rationale
To further strengthen the banking sector and to enable better regulation of the banking industry

To help banks manage their liquidity and curtain margin loan crisis To ensure a controlled workout of margin loans and to prevent undue panic and market over-reaction To ensure continued market liquidity which would in turn stimulate economic growth

To discourage currency speculation by banks

To discourage official and parallel market arbitrage opportunities To reduce artificial demand and distortions in the market To reduce fluctuation and stabilise exchange rates at 3% To maintain control of large currency transactions and better regulate currency rates To reduce fluctuation and stabilize exchange rates at 3% To enable easier and more efficient currency control the CBN created two tier structure for BDCs To manage expectations, create stability and encourage trade To further strengthen the banking sector, increase transparency and enable better regulation of the industry

Operating Environment
Guaranty Trust Bank

Jan 2009 - Repurchase by CBN of Fx purchases (Other than RDAS) after the utilization period at 1% maximum below its selling rate at the immediate previous RDAS Jan 2009 - Fx receipts by oil firms, Oil services companies and government agencies can be sold only to the CBN Feb 2009 - Bid/Offer margin on all Fx transactions by Authorized Dealers restricted to maximum of 1% & 2% around CBN rates for interbank and BDC respectively Feb 2009 - Re-classification of BDC operators into classes A&B Feb 2009 CBN commits to managing exchange rates between a band of +/-3% 2009 MPC meets to reinstate move to uniform year-end and IFRS reporting for all Banks starting December 2009 Source: CBN

27

Business Strategy and Objectives

Guaranty Trust Bank

28

Business Strategy and Objectives (Medium to Long Term)

No. 1 bank in Nigeria in terms of profit before tax and Return on Equity / Profitability Maintain Cost to Income stability by managing costs Expand leadership position across West Africa

2012 Goals

Focus on Growth business

Enhance product and service offering

Cost Leadership

Institutional
Capitalise on existing relationships
Oil & Gas, Infrastructure, Telco

Opportunities
Insurance Mortgage Banking Investment Banking
Advisory Capital Markets Project Finance

Cost Control
Monthly budgets Outsourcing of non-core functions Staff incentives for cost savings Efficient distribution Invest in reliable technology

Business Strategy and Objectives

Increase penetration in growing sectors

Hospitality, Real Estate Construction, Power

West Africa selective expansion and investments

Asset Management

Efficient, Innovative banking for the Entire Value Chain

GTBanks Client Employees

Suppliers

Distributors

Customers

Guaranty Trust Bank

29

Thank You

Guaranty Trust Bank

30