Forward looking statements

This presentation contains or incorporates by reference ‘forward-looking statements’ regarding the belief or current expectations of Diamond Bank, the Directors and other members of its senior management about the Group’s businesses and the transactions described in this presentation. Generally, words such as ‘‘could’’, ‘‘will’’, ‘‘expect’’, ‘‘intend’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘plan’’, ‘‘seek’’ or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of the Company and/or its Group and are difficult to predict, that may cause actual results to differ materially from any future results or developments expressed or implied from the forward-looking statements. Such risks and uncertainties include, but are not limited to, regulatory developments, competitive conditions, technological developments and general economic conditions. The Bank assumes 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 Bank should not be taken as a representation that such trends or activities will continue in the future. No statement in this presentation is intended 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 of the particular statement. Diamond Bank expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Diamond Bank’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

2

Outline
• • • • Opening Statement and Strategy (by Dr. Alex Otti, GMD) FY 2011 YTD Financial Performance Business Segments Performance Q1 2012 Financial Performance
(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

Concluding Remarks (by Dr. Alex Otti, GMD)

3

Operating Environment
Global economic growth entered 2011 on a relatively buoyant note. However this growth was short-lived as a barrage of social, economic and political issues weakened global economic activities. According to IMF, world output growth which had been strong in 2010 (5.2%) decreased in 2011 (3.8%) Economic fundamentals in the domestic environment remained strong despite growing concerns about security. FGN through the Economic Management Team formally kick-started the Sovereign Wealth Fund, replacing the Excess Crude Account The new economic blueprint – 2012-2015 Medium Term Fiscal Framework (MTFF), which centers on fiscal consolidation, job creation and repair of critical infrastructure was launched in Q4 2011 Central to fiscal and monetary strategy in 2012 include the removal of petroleum subsidies, port concessioning, accelerating power sector reforms and strengthening of the banking sector through nationalization, M & As and AMCON buy out of bad debts In a bid to maintain price and exchange rate stability the CBN also employed a number of monetary policy adjustments: Increased MPR six times in 2011 from 6.25% at year start to 12% by year end Acceded to a marginal devaluation of the naira from N150/$1 +/-3% to (N155/$1) +/-3%
4

2012 Strategic Priorities – A Year of Re-positioning
Corporate Banking
Target upper end in Corporate Banking Focusing on transaction banking. Providing efficient cash management channels and ebanking platform to major corporate clients

Human Capital Management
Creating a culture of ownership, responsibility and accountability using our performance and consequence management Retaining our best people through the use of an aggressive reward and recognition model and competitive remunerations

Retail Banking
Deliver growth on both sides of the balance sheet of up to 50% Increase Retail share of all-bank income towards 50%

Operational Effectiveness
Revised expense management for effective tracking and monitoring

Customer experience
Complaint Management Service Customer Hotline (phones placed in branches and ATM machines bank wide for customer feedback

Risk management
Ensure capacity building of the Enterprise Risk Management System by building competences in all risk areas of the bank.

5

Forecast for 2012 Profitability
Impact on P&L
Operating Profit

(N’Bn)
35.0 / 40.0

Deposits (N’Bn) and PBT (N’Bn) Operating Profit
35.0/40.0 24.6 27.6 4.8 27.8

15.0/20.0
-16.3

Provision for Losses (Circa)

~ (20.0)

-23.8 2009 2010 Operating Profit

2011 PBT

2012 est

Profit/(Loss) Before Tax

15.0 / 20.0

ROE

Comments
2009 2010 2011 2012 est >10.0% 1.2% 2013 est

Consistently improving profit as from Q1 2012 and beyond Achieve double digit ROE of above 10% in 2012 Tier 2 capital to be injected in Q2 to support business growth Cost of risk of not more than 5% in 2012 ROE to reach high teens in 2013

-11.1%

-11.2% 6

Update on 2011 Full Year Provisioning
Breakdown of N44.1billion provisions in 2011
The provision for losses in 2011 was N44.1bn with breakdown as follows: Net impact from existing NPLs – N37.3bn General provision on performing loans – N3.8bn

Impact on P&L
Operating Profit Provision for Losses Profit/(Loss) Before Tax Loss Before Tax

Group (N’Bn)
27.8 (44.1) (16.3) (11.3)

Mark to market investment securities / other assets – N3.0bn

Comments
Net impact from existing NPLs – Worst-than expected impact of AMCON sale: AMCON adopted stricter measure in the valuation of loan collateral received from banks during the year, a total of N48bn was sold to AMCON which resulted to a net loss of N34bn to profit and loss AMCON purchase of NPLs from banks remains the main option available to the bank to recover delinquent loans Clean-up of legacy loans – Adequate provisions and write-off were made for delinquent legacy loans. All fully provided loans were written off in 2011 except director related loans Exceptional Items (Divestment from subsidiaries) – Unfavorable market conditions affected the realization of value of assets sale
7

Profit / (Loss) on Divestment from Non-Banking Subsidiaries
Profit / (Loss) on Sale of Subsidiaries
N’Billion ADIC DB Securities DB Registrars Sub-Total Profit/(Loss) 279 (3,291) 39 (2,973)

Following the divestment from non-banking subsidiaries, Diamond Bank Group is now made up of the following subsidiaries:
Diamond Bank Nigeria – ( 223 branches) Diamond Bank Du Benin – (18 branches) Diamond Bank Togo – (1 branch) Diamond Bank Senegal – (1 branch) Diamond Bank Cote d’Ivoire – (1 branch)

Loss on Absorption of Subsidiaries
Diamond Mortgages DB Capital Sub-Total (2,587) (6,328) (8,915)

Diamond Pension Funds Custodian Limited

Total loss on divestment of subsidiaries

(11,888)
8 8

Improved Risk Management Policies & Practices
In order to effectively control cost of credit risk as well as manage various risks, the Risk Management Division has been restructured with improved policies as follows:
Head of Risk Management is currently an Executive Director – Effective May 2011, Board representation as against being a Management staff as obtained previously. Engagement of a new Head of Retail Risk Management in November 2011 – an International banker, with over 20 years of banking experience in Retail Operations, Credit and Risk Management, having worked in various banks in Middle East. Carry out regular in-depth analysis of the various Retail asset portfolios to ensure that adequate risk management controls are put in place for each customer segment. Daily disbursement reviews and repayment/inflow reports for all loans Deployment of an automatic credit monitoring alert system to proactively curtail loan deterioration Detailed Risk Dashboard which integrates risk reporting to support better understanding and decision making by management and Board Strict implementation of portfolio / sectoral limits that recognizes relative threats and opportunities in the various economic sectors Full implementation of a Credit Sanction Grid with the aim of checking the incident of credit abuses in the bank Separation of the corporate exposure monitoring functions from retail monitoring functions to aid effective monitoring Strengthening of credit monitoring capacity and system to aid improved performance

Use of 3 credit Bureau reports to obtain credit history information on prospective borrowers
Effective Board Risk Management committee with an independent director and international risk manager as chairman Aggressive recovery drive including the use of external solicitors on identified and classified risk assets
9

Outline
• • • • • Opening Statement and Strategy (by Dr. Alex Otti, GMD) FY 2011 YTD Financial Performance Business Segments Performance Q1 2012 Financial Performance
(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

Concluding Remarks (by Dr. Alex Otti, GMD)

10

Key Highlights
A robust Business Growth
• • • Group balance sheet size increased by 20% or N167bn to N991bn in Dec 2011 from N824bn achieved in December 2010. Total assets increased by 35% to N804bn in Dec. 2011 from N595bn in Dec. 2010 Risk assets (net) increased by 27% or N85bn to N397bn in Dec 2011 Deposits increased by 46% or N190bn to N602bn in Dec 2011 with approximately 80% being low cost funds

Improving loan portfolio quality
• • • • Share of NPLs to total loan portfolio decreased from 14.8% at YE2010 to 9.4% at YE2011 Non-performing assets of N48bn sold to AMCON at a loss of N34bn Performing assets – N19bn sold to AMCON at a discount of N1bn Coverage Ratio at 53.7%. Minimum of 80% target by YE2012

Adequate capital cushion
• • 13.9% Tier 1 Capital Adequacy Ratio under Basel II (Dec. 2010 – 16.6%). Bank CAR of 14.9% against CBN benchmark of 10% Bank liquidity ratio of 46% against Central Bank benchmark of 30% (Dec. 2010 - 42% against CBN ratio of 25%)

Revenue Mix
• Net Interest Margin (NIM) remains strong – currently around 9%; remains the best in the industry
11

Group Profit and Loss Account – (Dec 2011)
FY 2011 N' billion FY 2010 N' billion YoY %Δ Q4 2011 Q3 2011 N' billion N' billion QoQ %Δ

Comments
Group earnings up 6% to N96 billion (YoY) and up 16% QoQ Net interest income up 11% to N56 billion YoY Other Income up 14% to N28 billion YoY and up 26% QoQ Operating profit remains strong in spite of challenges of 2011 Operating expenses increased by 19% to N56 billion (YoY) driven by the impact of severance and AMCON charge (0.3% of total assets) introduced by CBN in 2011

Gross Earnings Interest Income Interest Expense Net Interest Income Other Income Operating Income Operating Expenses Operating Profit Provision For Losses Exceptional items Profit / (Loss) Before Tax Profit / (Loss) After Tax

96.3 67.9 (12.3) 55.6 27.8 83.4 (55.6) 27.8 (44.1) 0.0 (16.3)

91.0 66.2 (16.3) 49.9 24.3 74.2 (46.6) 27.6 (22.8) 0.0 4.8

5.8 2.6 (24.5) 11.4 14.4 12.4 19.3 0.7 93.4

28.0 19.7 (4.0) 15.7 7.7 23.4 (15.4) 8.0 (23.9) 0.0 (15.9)

24.2 18.1 (3.5) 14.6 6.1 20.7 (13.9) 6.8

15.7 8.8 14.3 7.5 26.2 13.0 10.8 17.6

(9.2) 159.8 0.0 (2.4)

(11.3)

1.3

(10.6)

(1.9)

12

Group Balance Sheet – (Dec 2011)
FY 2011 N' billion FY 2010 N' billion YoY %Δ Q4 2011 N' billion Q3 2011 N' billion QoQ %Δ

Comments
Group balance sheet size up 20% to N991 billion (YoY) and 5% QoQ Growth in balance sheet size was mainly due to increase of 46% or N190 billion in deposit volume 78% of deposits are low priced funds against 73% YoY About N168 billion or 89% out of the N190 billion growth in deposits relates to low cost deposits Group risk asset volume (net) up 27% to N397 billion (YoY), and up 3% QoQ despite NPL and performing asset sales to AMCON

Liquid Assets

241.0

145.7

65.4

241.0

202.2

19.2

Risk Assets
Other Assets Investments Fixed Assets Total Assets Deposits Other Liabilities Borrowings Equity Total Liabilities Off Balance Sheet Balance Sheet Size

397.4
19.7 107.0 38.6 803.7 601.7 53.9 54.8 93.3 803.7 187.6 991.3

312.2

27.3

397.4
19.7 107.0 38.6 803.7 601.7 53.9 54.8 93.3 803.7 187.6 991.3

386.4
21.4 77.4 37.7 725.1 529.3 58.0 26.4 111.4 725.1 217.1 942.2

2.8
(7.9) 38.2 2.4 10.8 13.7 (7.1) 107.6 (16.2) 10.8 (13.6) 5.2

23.5 (16.2) 77.2 36.2 594.8 412.0 47.4 28.3 38.6 6.6 35.1 46.0 13.7 93.6

107.1 (12.9) 594.8 35.1

228.8 (18.0) 823.6 20.4

13

Group Key Performance Metrics – Dec 2011
Q4 2011 NIM Cost of funds NPL Coverage Capital Adequacy Liquidity Cost to Income Ratio 8.8% 2.2% 9.4% 53.7% 13.9% 46.3% 66.6% Q3 2011 8.9% 2.2% 11.5% 57.6% 16.6% 44.2% 67.0% Q2 2011 9.1% 2.0% 10.8% 50.4% 16.2% 38.0% 66.9% Q1 2011 10.3% 2.2% 14.4% 72.1% 15.2% 42 .9% 65.2% Q4 2010 10.1% 3.4% 14.8% 64.1% 16.6% 41.5% 62.8% Q3 2010 9.7% 3.7% 16.8% 82.5% 15.4% 39.9% 64.4%

Comments
The increase of Cash reserve Ratio (CRR) to 8% by the Central Bank of Nigeria (CBN) affected NIM in Q4. However, NIM is still maintained at a relatively high level compared to peers. Low cost deposits continued to yield desired improvement in the NIM. Group cost-to-income ratio deteriorated due to impact of opening of 3 new country subsidiaries in Q2 2011, in addition to various exceptional items - severance payments, cost of AMCON fund, etc. Target of <60% cost-to-income ratio remains Tier-2 funding target of $200m. Some multilateral credit agencies are at various stages of negotiations/approvals and utilization is expected to begin to crystalise in Q2, to increase CAR position further. 14

Group Balance Sheet Structure
Total Assets (N’Bn) Dec 2011 (Dec 2010)
804 595 241 146 824 397 312 412 20 24 107 77 465 312 354 529 386

Balance Sheet Size – Trend (N’Bn)
866 942 991 602 397

39 36 Dec. 2010 Jun. 2011 Sep. 2011 Deposits Dec. 2011 Loans & Advances

Total Assets Liquid Assets Risk Assets Other Assets Investments Fixed Assets

Total assets and Contingents

Total Liabilities (N’Bn) Q3 2011 (Q2 2011)
804 595 602 412

Comments
Balance sheet size up 20% to N991 billion Dec. 2011 (Dec 2010 – N824 billion). The growth was largely due to increase in deposits by 46% to N602 billion from N412 billion (Dec. 2010) and up 14% QoQ Risk assets (net) up 27% to N397 billion from N312 billion (Dec. 2010) and up 3% QoQ from N386 billion (Sept. 2010)

54

Growth in deposits continues to be strong (46% YoY)

47

55 28

93 107

Total Liabilities

Deposits

Other Liabilities

Borrowings

Equity
15

Group Lending
Gross Loan Breakdown – Dec 2011 (Dec 2010) Dec-11
N419Bn (N345Bn)

Sep-11 Gross Loan Breakdown – Sep 2011
N414Bn

10% 12%

7% 6% 5% 5% General Comm 25% (21%) Oil & Gas 19% (18%) Manufacturing 12% (16%)
Real Est & Const 10% (11%)

12% 14%

9% 9% 5%

General Comm 23% Oil & Gas 17% Manufacturing 14% Real Est & Const 12% Power & Energy 9% General 9% 3% 2% 1% 1% 1% Finance & Insur 5% ICT 3% Transport 3% Government 2% Agriculture 1% Prof., Sc. & Tech. 1% Support Servs 1%

19%

5%

Power & energy 7% (8%)
Consumer Credit 6% (7%) Communication 5% (6%) 3% 1% 1% 1% 0% Government 5% (0%) Others 5% (5%) Mortgage 3% (1%) Agriculture 1% (1%) Transportation 1% (2%) Finance and Ins. 1% (1%) Capital Market 0% (2%) 23% 17%

3%

25%

16

Group Loan and Deposits Growth
Gross Loan Analysis Chart Title by Maturity (N’Bn) – Dec 2011 (Dec 2010)
Over 12 months 0 - 30 days 1-3 months 6-12 months 3-6 months 81.5 102.1 77.8 55.8 75.3 34.4 32.1 27.8 51 Dec. 11 Dec. 2010 Dec. 10 Gross Loans Jun. 2011 Sep. 2011 Dec. 2011 Deposits 41 48 39 345 374 151.8 124.8 412 465 414 419

Loan Growth, Non Performing Loans (N’Bn) & Deposits Growth
602 529

Non Performing Loans

Comments
About 64% of loan portfolio falls within 12 months while 36% are medium to long term loans

Loan to Deposit Ratio
83.7% 80.6% 78.2%

69.6%

Dec. 2010

Jun. 2011

Sep. 2011

Dec. 2011 17

Group NPL Analysis
NPL by Sector (Dec 2011)
General Commerce 35% Oil & Gas 30% Real Estate & Constr. 11%

NPL by Category
N51.1Bn 40% N47.7Bn 12% 39% Communication 9% Consumer Credit 6% Manufacturing 3% Dec. 2010 Power 2% Others 4% Substandard Doubtful Lost Sep. 2011 33% 49% 27% 15% Dec. 2011 N39.4Bn 85%

N39.4Bn

NPL by Sector (Dec. 2010) 2009)
Oil & Gas 34% General Commerce 27% Manufacturing 13%

Comments
Over 50% of the total NPLs were in the General Commerce and oil & Gas Sectors.

N51.1Bn

Transportation 9% Capital Market 6%

Communication 3%
Mortgage 3% Others 5% 18

Group Asset quality
NPL Ratio
14.8% 10.8% 11.5% 9.4% 8.0% 64.1% 50.4% 57.6% 53.7% 75.0%

Coverage Ratio

Dec. 2010

Jun. 2011

Sep. 2011

Dec. 2011

Mar. 2012

Dec. 2010

Jun. 2011

Sep. 2011

Dec. 2011

Mar. 2012

Comments
Total sale of NPL to AMCON stood at N48bn in 2011 (Phase 1: N21bn and Phase 2: N27bn) A further sale of a performing asset of N19bn to AMCON at a discount of N1bn to reduce concentration risk NPL Ratio to be brought to <5% by end of 2012 Coverage ratio expected to be >80% by end of 2012 Cost of risk will be reduced in 2012 to below 5%

Cost of Risk
11.6% 7.1% 6.4% 6.1% 4.7%

Dec. 2010

Jun. 2011

Sep. 2011

Dec. 2011

Mar. 2012 19

Analysis of Sales to AMCON (2011)
NPLs
Batch/Month (N’Bn) 1st Batch ( May 2011) 2nd Batch ( Dec 2011) Sub Total Sold to AMCON 21.2 26.8 48.0 Realized from AMCON 4.9 9.1 14.0 Loss on Sale (16.3) (17.7) (34.0)

Performing Asset
Batch/Month (N’Bn) Geometric Power (Dec 2011) Sold to AMCON 19.2 Realized from AMCON 18.2 Discount (1.0)

Total

67.2

32.2

(35.0)
20

Analysis of Sales to AMCON (2011) – (Contd.)
Sector Analysis of Total Sales to AMCON Age Analysis of Total Sales to AMCON

Power & Energy 29% Oil & Gas 24% Manufacturing 23% Transport 8% 2005: 64% 2007: 19% 2008: 7% 2004: 4% 2006: 3%

General Comm 7%
ICT 4% Agriculture 2% Education 1% Construction 1% Finance & Insur. 1%

2003: 2%
2001: 1%

Comments
Total sold to AMCON is N67.2 billion (NPLs – N48 billion and Performing Assets – N19.2 billion) Loss on sales to AMCON – N35.0 billion (NPLs – N34 billion and discount on performing assets – N1 billion)
21

Group Capital and Liquidity
Capital Adequacy (CAR)
16.6% 16.2% 16.6% 13.9% Treasury Bills 38% (46%) Cash & Equivalent 23% (19%)

Liquid Assets – Dec 2011 (2010)

10%

10%

10%

10%

Dec. 2010

Jun. 2011

Sep. 2011

Dec. 2011

Placement 39% (35)

Actual CAR

Stat. Minimum Requirement

Liquidity
41.5%
44.2% 38.0% 30% 30% 30% 46.3%

Comments
Strong liquidity at 46%, Long term Tier-2 funding from multilateral credit agencies expected begin to come in in Q2. Target $200m

25%

Balance sheet funded largely from deposits. Deposit liabilities accounted for more than 75% of total assets / liabilities

Dec. 2010 Liquidity

Jun. 2011

Sep. 2011

Dec. 2011

CAR expected to increase to over 15% following Tier-2 capital injection from multilateral agencies by end of Q2 22

Stat. Minimum Requirement

Outline
• • • • Opening Statement and Strategy (by Dr. Alex Otti, GMD) FY 2011 YTD Financial Performance Business Segments Performance Q1 2012 Financial Performance
(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

Concluding Remarks (by Dr. Alex Otti, GMD)

23

Current Business Segments
Retail Banking
Deriving value from existing focus on retail customers, with monthly turnovers of N40 million and below Comprises all segments of consumer + MSME Delivers circa 40% of All-Bank income Over 1.5 million customer accounts with new product sales of around 2,000 per day Funds 50% of Naira liability balance sheet and around 15% of risk assets Regular monthly fee income in excess of N 600 million Over 220 branches; over 260 ATM’s; Mobile and Internet Banking; 24/7 Contact Centre + 1200 Direct Sales Agents.

Corporate Banking
Deriving value from focusing on corporate customers with monthly turnovers over N1 billion

Business Banking
Deriving value from focusing on enlarged middle-market customer with turnovers from N40 million – N1 billion Meeting customer expectations through various value -adding product offerings & service delivery channels Delivering convenience as differentiating strategy Critical target markets: Tertiary Institutions State governments Companies with large monthly business turnover(Not Multinationals)

Re-structured in terms of geographical focus and target market segments Developing and managing business relationships with multinationals and local large corporations Clear understanding of client’s business operations and requirements Organised in 5 groups: Energy Institutional banking Infrastructure & transport Public Sector(Collection) Structured finance & Advisory

Public sector Banking
Deriving value from business focus on specific needs of: Federal government ministries & Parastatals

State governments and their Institutions & Agencies
Embassies and Foreign missions DFIs Relationship manage through dedicated specialists in public sector finance 24

Group Business Segments
Deposits (N’Bn)
Retail Banking
Take advantage of size, scale & Scope of retail business to further deliver improved performance with clear focus on quality and efficiency

Risk Assets (N’Bn)

48.3 266.4 57.4

Business Banking
Grow diversified & profitable assets, increase deposits, fee based business & international trade finance whilst delivering client solutions and providing beneficial business relationships with small, medium and fairly large-scale business enterprises, as well as high net-worth and medium income individuals.

155.6

N601.7bn

N397.4bn

135.4

Corporate Banking
229.6 The Corporate banking is positioned to operate with agility, delivering innovative and quality solutions, increase ‘share of wallet’, target high-profile’ and high value clients, Supporting the Demand & Supply Chains of Corporates as well as Providing a Onestop Solution for Businesses

65.0 41.4

Retail Banking Corporate Banking

Business Banking Subsidiaries

Retail Banking Corporate Banking

Business Banking Subsidiaries

Subsidiaries
DBB Group and DPFC Limited

25

Retail Banking – No. 1 Retail Bank in Nigeria
Mortgage Personal Loan
24% 13% 7% 4%

Credit Card Autoloan and Lease
10%

Time deposits

90%
51%

MSME

Savings & Current A/C

Total Retail Loans N65 Billion

Total Retail Deposits N230 Billion

Comments
Retail Banking offers consumers the broadest range of services through multiple channels Service Delivery Channels: 223 Branches, 265 ATMs, Full transactional Internet Banking, Mobile Banking, 1200 POS and 24/7 fully functional enterprise class IP call center (Diamond Dial) + 1200 Direct Sales Agents Alternative Customer Acquisition Channels: VISA Credit Cards (Circa 30,000 card holders), Privilege Banking, MSME etc. 26

2011 – Retail Banking Continues to Show Healthy Growth
Retail Deposits (N’Bn)
161 177 196 210 230 47% 39% 48%

Deposits (N’Bn) Retail Deposits to Bank’s Total Deposits – Naira (%)
52%

51%

49%

150

Jun. 2010

Sep. 2010

Dec. 2010

Jun. 2011

Sep. 2011

Dec. 2011

Jun. 2010

Sep. 2010

Dec. 2010

Jun. 2011

Sep. 2011

Dec. 2011

Retail Risk Assets Classification (N’Bn)
N13.1bn
3.9 3.7 0.9 2.1 2.5 Jun. 2010

Comments
N65.0bn
4.8 33.3

N18.1bn
3.8

N27.2bn N42.2bn
3.9 10.0 2.7 2.9 7.7 Dec. 2010 4.4 17.3 5.5 2.9 12.1 Jun. 2011

N63.2bn
5.3 30.5

Cost of funds remains around 2%
Term Deposits represents less than 12 % of total deposits Regular monthly Fee Income for 2011 of over N6.3 billion Average product sales of over 40,000 per month

5.6
1.6 2.2 4.9 Sep. 2010

9.3 3.9 14.2 Sep. 2011

8.7 2.7 15.5 Dec. 2011

Provisioning of circa 8% taken on retail lending portfolio in 2011

Personal Loan

Autoloan and Lease

Mortgages

MSME

Credit Card

27

Outline
• • • • Opening Statement and Strategy (by Dr. Alex Otti, GMD) FY 2011 YTD Financial Performance Business Segments Performance Q1 2012 Financial Performance
(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

Concluding Remarks (by Dr. Alex Otti, GMD)

28

Profit and Loss – Q1 2012
Group
Q1 2012 N' billion Gross Earnings Net Interest Income Other Income Operating Income Operating Expenses Operating Profit Provision For Losses Profit / (Loss) Before Tax Profit / (Loss) After Tax 30.7 18.1 8.0 26.1 (13.4) 12.7 (5.2) 7.5 4.9

Group
Q1 2011 N' billion 20.3 12.3 5.9 18.2 (11.9) 6.3 (4.5) 1.8 1.1 YoY %Δ 51.2 47.2 35.6 43.4 12.6 101.6 15.6 316.7 345.5

Bank
Q1 2012 N' billion 28.7 17.2 7.4 24.6 (12.1) 12.5 (5.1) 7.4 4.8

Bank
Q1 2011 N' billion 19.3 12.0 5.2 17.2 (10.8) 6.4 (4.5) 1.9 1.2 YoY %Δ 48.7 43.3 42.3 43.0 12.0 95.3 13.3 289.5 300.0

Comments
Group and Bank gross earnings up 51% and 49% respectively (YoY) Group and Bank net interest income up 47% and 43% respectively (YoY) Group operating profit up 102% and bank operating profit up 95% (YoY) PBT for Group and Bank up 317% and 290% respectively Cost of risk for Group and Bank are 4.7% and 5.1% respectively Improved operating performance is sustainable into the future after risk assets clean-up of 2011

29

Balance Sheet – Q1 2012
Group
Q1 2012 N' billion Liquid Assets 243.0

Group
Q1 2011 N' billion 170.2 YoY

Bank
%
42.8 Q1 2012 N' billion 216.6

Bank
Q1 2011 N' billion 142.8 YoY

%
51.7

Comments
Crossed N1 Trillion Mark in Total Assets plus Contingents Group and Bank risk asset volume up 35% to N440 billion, 24% to N399 billion (YoY), up 11% and 12% (QoQ) respectively Group and Bank deposit up 43% and 42% (YoY), up 6% and 7% (QoQ) respectively Group and Bank balance sheet size up 25% and 28% (YoY), and up 10% (QoQ) for both respectively

Risk Assets
Other Assets Investments Fixed Assets Total Assets Deposits Other Liabilities Borrowings Equity Total Liabilities Off Balance Sheet Balance Sheet Size

440.3
17.7 119.1 38.2 858.3 640.1 72.0 53.1 93.1 858.3 232.2 1,090.5

327.0
31.3 71.6 36.7 636.8 448.5 53.5 27.7 107.1 636.8 238.0 874.8

34.6
(43.5) 66.3 4.1 34.8 42.7 34.6 91.7 (13.1) 34.8 (2.4) 24.7

399.1
13.1 114.5 34.6 777.9 583.1 49.2 53.1 92.5 777.9 165.0 942.9

323.1
14.9 71.6 34.3 586.7 410.7 31.4 27.7 116.9 586.7 150.7 737.4

23.5
(12.1) 59.5 0.9 32.6 42.0 56.7 91.7 (20.9) 32.6 9.5 27.9

30

Key Performance Metrics – Q1 2012
Group
Q1 2012 Q4 2011 8.8% 9.4% 2.2% Q3 2011 8.9% 11.5% 2.2% Q1 2012

Bank
Q4 2011 9.1% 9.8% 2.1% Q3 2011 9.0% 11.4% 2.0%

NIM
NPL Cost of funds Coverage Capital Adequacy

9.5%
8.0% 2.7% 75.0% 12.4%

10.0%
8.2% 2.6% 74.1% 13.3%

53.7%
13.9%

57.6%
16.6%

51.5%
14.9%

57.2%
17.9%

Liquidity
Cost to Income Ratio Comments

46.1%
51.5%

46.3%
66.6%

44.2%
67.0%

45.9%
49.0%

46.3%
64.3%

44.2%
63.4%

Increase in NIM in Q1 2012 to 10.0% for the Bank and 9.5% for the Group despite increase in cash reserve requirement (CRR) to 8% and increase in cost of funds within the quarter. Capital adequacy ratio of 12.4% above the CBN benchmark of 10%. Tier 2 capital of $70 million from multilateral agencies to be injected in Q2 2012.
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Risk Management Metrics – Q1 2012
Group
Q1 2012 N’ billion Gross risk assets NPL Provisions NPL ratio NPL coverage 468.4 37.4 28.1 8.0% 75.0% Q4 2011 N’ billion 418.5 39.4 21.2 9.4% 53.7%

Bank
Q1 2012 N’ billion 424.9 34.9 25.9 8.2% 74.1% Q4 2011 N’ billion 375.0 36.9 19.0 9.8% 51.5%

Comments
Improved NPL ratio of 8% in Q1 2012 due to increase in risk assets & drop in NPL volume/ recoveries Target NPL ratio of < 5.0% by December 2012 Improving Coverage Ratio to 75% in Q1 2012 from 52% at 2011 Year end. Target Coverage Ratio by December 2012 is Minimum of 80%
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Outline
• • • • Opening Statement and Strategy (by Dr. Alex Otti, GMD) FY 2011 YTD Financial Performance Business Segments Performance Q1 2012 Financial Performance
(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

(by Abdulrahman Yinusa, CFO)

Concluding Remarks (by Dr. Alex Otti, GMD)

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Diamond Bank – Outlook for 2012
In our maiden interaction with shareholders last year, we stated clearly that 2011 will be a clean-up one, to enable us sanitize the books and retool for the challenges that lie ahead:
We clearly saw the challenges that have inhibited the Bank’s performance and we quickly moved to address the issues with the aim of repositioning the Bank for better performance in the years ahead. Following the cleanup in 2011, the Bank started year 2012 on a relatively clean balance sheet which has resulted in full return to profitability as evidenced by the significant improvement in Q1 2012 results which are sustainable into the foreseeable future. Although the economic backdrop is still dynamic and is likely to remain so for some time, we remain confident that amidst the challenges there are also opportunities for us. The Bank’s growth strategy in the short to medium term shall remain largely focused on organic expansion while still open to inorganic options that provide clear value-addition. Target ROE of >10% in 2012, doubling to 20% in 2013 and above 20% in 2014 Finally, we will continue to deepen our retail business, strengthen our government banking and redefine our corporate sector focus/capability to drive balance sheet growth, efficiency and quality.
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Q&A
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