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Transcript of Ecobank 2013
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1© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
The Future is Pan-AfricanEcobank Presentation
February 2013
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2© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
2012 MDs Co nference
22
This presentation is intended to be for information purposes only and it is not intended as promotional material in any
respect. The material is not intended as an offer or solicitation for the purchase or sale of Ecobank products or sharesThe material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investmentrecommendations. Information herein is believed to be reliable but Ecobank does not warrant its completeness or accuracy.
Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall aswell as rise and investors may not get the amount originally invested.
The presentation includes forward-looking statements. Forward-looking statements involve known and unknownrisks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by suchforward-looking statements. Such forward looking statements are based on numerous assumptions regarding theGroup’s present and future business strategies and the environment in which the Group will operate in the future.
These forward-looking statements speak only as at the date of this presentation. The Group expressly disclaims anyobligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained hereinto reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liabilitythat Ecobank has to its customers under any regulatory system. Reliance should not be placed on the views andinformation in the document when taking individual investment and/or strategic decisions. Ecobank has expressed itsown views and opinions in this document and these may change.
Disclaimer
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3© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Contents
1 Company overview 42 Strategy 103 Performance highlights 164 Key investment highlights 26
Appendices1 Summary financial statements 282 Business segments 323 Segmental analysis by cluster 36
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4© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
4
Section 1
Company overview
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5© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Leveraging the Platform – Our Competitive Advantage
M
ali
Niger Chad
Nigeria
Benin
TogoGhana
Mali
Coted’Ivore
Kenya
Tanzania
Congo(DemocraticRepublic)
Zambia
Zimbabwe
Liberia
Sierra Leone
Sierra Leone
Gambia
Cape Verde
Guinea Bissau
Senegal
Central AfricanRepublic
Angola
EquatorialGuineaUganda
Rwanda
Congo
Burundi
Malawi
BurkinaFaso
Guinea
Johannesburg
Ecobank presence in 2012Ecobank future presenceEcobank representative offices and Paris affiliate
New YorkRep Office
DubaiRep Office
ParisAffiliate
London
Rep OfficeBeijing
Rep Office
ETI Incorp. asBank HoldCo
Countries (inAfrica)
Branches ATMsCustomers(mn)
EmployeesTotalAssets
($ bn)
Stock Exchange Listing
1985 37 (33) 1,197 1,751 9.4 18,000+ 18.5 NSE, GSE & BRVM
Headquartered Reports Supervised Geographic Focus
Lome, Togo IFRS Commission Bancaire Middle Africa
• Ethiopia• Mozambique• Angola• Madagascar • South Sudan
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6© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Ecobank’s Organisational ModelDiversified business; centralised operational framework
Risk Management & Financing
Board of Directors
INTERNATIONAL
NIGERIA UEMOA WAMZ CEMAC EAC SADC
Operations, Technology & Telecommunications
Corporate & Investment Bank Domestic BankBusinessSegments
Geogra-phicalClusters
Governance, Compliance, Legal & Internal Control
Overall Strategy, Culture, Internal Audit
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Group Executive Committee
Eddy OgboguOperations
&Technology
Operations Technology
Telecommunications
Laurence do RegoFinance & Risk
Risk management Finance
Albert EssienCorporate Bank &
Investment Bank MNCs Regional Corps. Public Corps. International
Organisations FIs Treasury SAM & IB
Thierry TanohGroup CEO
CorporateCommunications
Patrick AkinwuntanDomestic Bank
Retail SME Local Corporates Public sector Cards
Group HR
Samuel AyimGeneral Counsel
Legal Company Secretariat Regulation Governance
Ibrahima Diouf Audit
Internal Audit
Julie EssiamHuman Resources
Strategy Management Corporate
Development
David LawsonStrategy Management
Office
Evelyne TallChief Operating
Officer
Countries/Clusters Governance Regulatory/Govern
-mental relations Compliance Internal Control
Board of Directors
7
Our Management
Board of Directors
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Our Business Segments
• Financial solutions to global, regional & publiccorporates, financial institutions & internationalorganizations
• Pan-Africa lending, trade & cash managementsolutions
• Treasury, corporate finance, investment banking,securities & asset management
• Research team in key markets providing uniqueresearch report capabilities
Domestic BankCorporate & Investment Bank
• Convenient, accessible & reliable financial products &services
• Serving retail, local corporate, public sector µfinance customers
• 9.4 million customers• Network of 1197 branches, 1751 ATMs, 3938 POSs• Mobile, internet banking and value chain
• Rapid Transfer & Ecobank Regional Card, availableacross 30 countries in Africa
• Intra-regional trade opportunities• Deposit generation
• Cross-sell• Distribution capacity• Currency and African Assets Distribution• Product innovation in Securities & Asset
Management
• Value-chain propositions• Cards
• Accelerate low-cost deposit generation• Integrated channel approach• Increase products per customer
1 2
Focus Focus
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9© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Our Geographical ClustersOrganized to leverage deepening regional integration and deliver value
East Africa Assets 4%Revenue 3%
PBT -5%Loans 4%
Countries 5Branches 73Customers 0.3m
Average Age 5yrs
Southern Africa
Assets 2%Revenue 3%PBT -1%Loans 2%
Countries 5Branches 37Customers 0.1m
Average Age 4yrs
Central Africa Assets 9%Revenue 8%
PBT 12%Loans 12%
Countries 6Branches 69Customers 0.4m
Average Age 6yrs
Nigeria Assets 44%Revenue 43%PBT 20%Loans 35%
Countries 1Branches 610Customers 6.4m
Average Age 24yrs
Rest of WA Assets 14%Revenue 18%PBT 38%Loans 13%
Countries 5Branches 146Customers 1.0m
Average Age 13yrs
Francophone WA Assets 25%Revenue 22%PBT 35%Loans 33%
Countries 9Branches 248Customers 1.2m
Average Age 16yrs
International Assets 3%Revenue 3%PBT 2%
Countries 4Branches -Customers -
Average Age 4yrsNote: data as at 30 September 2012
Ecobank Representatives in Africa – Angola and South Africa
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10© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Section 2
Strategy
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11© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Ecobank’s Vision and Strategic Priorities
• Maximise the potential of our unique footprint by… − Driving revenues, particularly from deposit growth
− Increasing efficiency
− Achieving scale in all markets
• Deliver outstanding customer service
• Improve long-term shareholder value and returns
• Be the employer of choice in our markets
• Our dual purpose is to build a world class pan-African bank
and contribute to the economic development and financial
integration of Africa
• Our mission is to provide our retail and wholesale
customers with convenient, accessible and reliable financial
products and services
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12© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Ecobank’s Strategy – To be the No. 1 Pan-African Bank
#1
Ecobank
Customer Service
Providing theHighest DiversifiedReturn to our Shareholders
Being theEmployer of Choice
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13© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Competitive Positioning - Progress Towards Top 3
1. Burkina Faso2. Chad3. CAR4. Ghana5. Guinea6. Liberia7. Togo
8. Mali (2)9. Benin (No.2)10. Cote d’Ivoire (No.2) 11. Guinea Bissau (No.2)12. Sao Tome (No.3)13. Rwanda (No.3)
14. Burundi (No. 4)15. Gabon (No. 4)16. Niger (No. 4)17. Senegal (No. 4)18. Cameroon (No. 5)19. Congo Brazza (No.5)20. Gambia (No. 5)21. Sierra Leone (No. 5)22. Nigeria (No. 6)23. Cape Verde (No. 7)24. DRC (No. 9)25. Malawi (No. 10)26. Equatorial Guinea* (No. 5)
27. Zambia (No. 16)28. Uganda (No. 16)29. Zimbabwe (No.17)30. Kenya (No. 17)31. Tanzania (No.28)
No. of Markets inwhich we are(1):
No. 1 Top 3 Top 10 Not yet Top 10
Ecobank operations inthese countries are under 4 years
7 5
2613
Chart is cumulative
(1) Ranked using total assets (2)(3) Revenues and PBT excludes consolidation adjustments
Total assets 24% 14% 58% 4%
Revenues (2) 37% 13% 58% 2%
PBT(3) 55% 17% 36% (9%)
NPLs 21% 13% 59% 7%
* Equatorial Guinea was opened 14 December 2012
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14© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Ecobank’s Financial Targets
< 60%
20%+
~1/2 deposit growth
15%+
C/I ratio - low 70s
2013 Growth Targets
Improvedshareholder
value
Cost-to-income ratio
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15© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Section 3
Performance highlights
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16© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
In millions of $ (unless stated) 2010 2011 9M12
Revenue 899.6 1195.6 1176.9Provisions 101.5 85.7 85.0
Operating expense 629.2 832.7 900.1
Profit before tax 169.0 277.4 191.4
Net income attributable to equity shareholders 112.7 182.2 124.8
Reported EPS (US cents) 1.14 1.76 0.90
Performance Summary
80.5%
77.8%
76.5%
3M12 6M12 9M12
9.1%
11.5% 11.9%
3M12 6M12 9M12
6.5%5.6% 5.4%
3M12 6M12 9M12
Cost-to-income ratio ROAE NPL ratio
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17© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Operating Expenses
46.0% 46.6%
54.0% 53.4%
0%
20%
40%
60%
80%
100%
9M11 9M12
Staff expenses Non-staff expenses
Note: Cost-to-income ratio defined as operating expenses divided by net revenue* Cost-to-income ratio has been computed on a quarterly basis for the quarterly periods and on a YTD basis for the YTD periods
199
287 291 305 305
546
900
67%73%
80%75% 74%
68%76%
0%
10%20%
30%
40%
50%
60%
70%
80%90%
0
100200
300
400
500
600
700
800
9001000
3Q11 4Q11 1Q12 2Q12 3Q12 9M11 9M12
Cost-to-income ratio*
• Operating expenses up 65% YoY to $900 million. On QoQ basis operating expenses remained flat
• Operating expenses YoY growth due largely to the addition of Oceanic Bank’s cost base and higher D&A expenses
from investments made in technology and fixed assets
• QoQ growth remained flat largely driven by continued focus on cost management
Operating expenses ($m) Operating expenses mix
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18© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Cost Efficiencies – Reflective of Geographical Expansion
54.5% 65.6% 68.9%84.3% 94.6%
121.0%
WAMZ UEMOA CEMAC NIGERIA SADC EAC
62.5% 59.1% 61.4% 66.7%72.4% 69.9%
69.6%
76.5%
2005 2006 2007 2008 2009 2010 2011 9M 2012
2005 2006 2007 2008 2009 2010 2011 9M 2012
Countries 13 15 20 25 30 33 35 36
Branches 162 305 450 610 746 755 1,151 1,197
Staff 2,602 5,860 8,057 11,211 11,097 10,003 23,355 18,000
Cost-to-income ratio – 9M12
2011 CIR reflectsonly 2 months of Oceanic Bankincome statement
Cost-to-income ratio
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19© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
56.2
5.3
20.423.2
41.4
80.4
85.0
-
10
20
30
40
50
60
70
80
90
3Q11 4Q11 1Q12 2Q12 3Q12 9M11 9M12
Impairment Losses on Loans
• Provision for impairment losses of $85.0 million for 9M12 compared with$80.4 million in 9M11
• The increase in provision for impairment losses was driven byprovisions in Nigeria and on TTB’s SME loan portfolio
NIGERIA
WAMZ
UEMOA
CEMAC
EACSADC
4%
46%
4%
7%
18%
21%
CIB*
DOMESTICBANK
33%
67%
Impairment losses on loans ($m)Impairment loses split byclusters-9M12
Impairment losses split bybusiness segments-9M12
* Corporate & Investment Bank
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20© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Credit Quality
7.9%5.7%
17.0% 16.0% 15.2%
5.5% 5.4%
60.1%
68.0%
30.4%
41.1%
53.6%56.5%
73.7%
2006 2007 2008 2009 2010 2011 9M 2012
Column1 NPL ratio Coverage ratio
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21© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Stable Deposit Base; Selective Lending
5.77.4
7.8 8.0 8.6
0.0
2.0
4.0
6.0
8.0
10.0
3Q11 4Q11 1Q12 2Q12 3Q12
71.3% 68.4%
22.8% 27.3%5.9% 4.3%
9M11 9M12
Term Overdraft Others(A)
NIGERIA
UEMOA
WAMZ
CEMAC
EAC
SADC OTHERS*
35%
2%
12%
13%
33%
4%
2%
* Others include loans from EDC Group and International Cluster,(A) Others comprises Credit Cards and Other loans(1) Net loans and advances are EOP balances
8.9
12.112.9 12.7 13.1
0
3
6
9
12
15
3Q11 4Q11 1Q12 2Q12 3Q12
5.65 7.56
1.282.23
1.98 3.33
0%
20%
40%
60%
80%
100%
9M11 9M12Current Savin s Term
NIGERIAUEMOA
WAMZ
CEMAC
EACSADC OTHERS*
45%
26%
13%
10%
4%
2%1%
Customer loans & advances (EOP)(1)
Customer deposits (EOP)
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22© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
72%
11%
7%
10%
Deposits 72%
Equity 11%
Borrowed funds 7%
Other liabilities 10%
58%
17%
25%
9M12
Current 58%
Savings 17%
Term 25%
CASA1=75%
Funding structure as of 9M 2012
1. CASA = Current Accounts and Savings Accounts
Funding Overview
Deposit mix as of 9M 2012
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24© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Type Ecobank Parent Affiliate Level
Equity(Tier 1Capital)
Low valuation (below book value)Dilution already experienced
Typically own >75%
Tier II Capital Existing convertibles (IFC and EIB ‘live’), and
Nedbank facilityMay be suitable for larger Affiliates, eg Nigeria
Capital Planning: Focus on Optimising Across the Group
• Drivers of capital requirements include
−Regulatory changes
− Business demands of affiliates
• Dividends
• Actions of convertible debt holders
• Internal capital generation
• Sale of NCAs
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25© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Risk Management Principles
• Centralized Credit Centers established for approvals
• Risk Committee
• Audit & Compliance Committee
• To achieve appropriate balance:
− Between risk and reward
− Risk appetite
− Overall risk profile set by the Board
• Develops strategy, principles, framework and policies• Implements processes, methodologies and tools for managing risk
Section 4
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26© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Section 4
Key investment highlights
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27© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Positioned for sustained growth
Key Investment Themes
• Recognised global brand
• Greater African presence than any other bank
• Full-service banking model• Aim to be Top 3 in all markets
• Full-service ‘One-Bank’ model for seamless customer experience
• Integrated network – centralised IT platform
• Efficiency at the core – centralised Finance & Risk
• Nedbank – extends One-Bank model to South Africa
• Old Mutual – insurance and wealth management• Bank of China – servicing Chinese businesses in Africa
• Banco Espìrito Santo (BES) – support trade between Portugal & Africa
• ICICI Bank (Indo-African trade and investment)
• Accion – microfinance across Africa
• Airtel – mobile banking
• Diversified business model mitigates single country risk
• Reports in IFRS and US$
• IFC Corporate Governance Principles
• Clear management and operational structure.
• Increased and more timely disclosure where appropriate
Appendix 1
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28© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013 28
Appendix 1
Summary Financial Statements
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29© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Financial Highlights
In millions of USDexcept unit 9M 2012 2011 2010 2009
Revenues 1,177 1,196 900 873
Operating expenses 900 833 629 633
Profit before tax 191 277 169 101
Total assets 18,541 17,162 10,467 9,007
Customer loans 8,560 7,360 5,264 4,766Customer deposits 13,117 12,076 7,925 6,472
Total Equity 1,940 1,459 1,293 1,236
Branches 1,197 1,151 755 746
ATMs 1,751 1,487 779 665
Markets 36 35 33 30
Customers (mil) 9.4 8.4 3.1 2.7
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30© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Summary Income Statement
($m, except per share & ratio) 9M 2012 9M 2011
Net interest income 622.4 398.9 +56%
Non-interest revenue 554.6 405.4 +37%
Net revenues 1,177.0 804.3 +46
Operating expenses (900.1) (546.2) +65%
Provision for impairment losses (85.0) (80.4) +6%Profit before tax 191.9* 177.7 +8
Income tax (40.2) (54.1) -26%
Net income 151.3 123.6 +22
Effective tax rate 21.0% 30.5%
Profit attributable to ordinary shareholders 124.8 106.6 +17
Basic EPS ($ cents) 0.90 1.08 -17%
ROAE 11.7% 12.6%
Cost-to-income ratio 76.5% 67.9%
*PBT includes a share of loss from associates of $0.4m
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31© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Summary Statement of Financial Position
($m) 9M 2012 9M 2011
Cash & treasury bills 1,827 1,248 +46%
Loans to banks 2,048 1,598 +28%
Loans to customers 8,560 5,723 +50%
Available-for-sale 2,202 1,569 +40%
Other assets 2,936 1,140 +157%Total assets 18,541 11,928 +55
Deposits from other banks 466 497 (6%)
Customer deposits 13,117 8,911 +47%
Borrowed funds 1,348 410 +160%
Other liabilities 1,669 777 +115%
Total liabilities 16,601 10,595 +57Shareholders' equity 1,793 1,196 +50%
Minority interest 147 137 +7%
Total equity 1,940 1,333 +46
Total liabilities and equity 18,541 11,928 +55
Appendix 2
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32© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Appendix 2
Business Segments
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33© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Serving international businesses focused on Africa
• Corporate Bank PBT of $159 million, up 65% YoY
• Revenues increased 33% YoY to $321 milliondriven by:
– Oceanic Bank acquisition
– Net interest income growth, higher levels of client activity and increased loan balances
• Operating expenses grew at a lower rate of 8%YoY to $134 million driven by a continued focus ondisciplined expense management
• NPL ratio was 0.6% in 9M12 from 1.4% in 9M11driven write-offs of fully provisioned loans andprudential risk management.
• FOCUS
– Intra-regional trade opportunities
– Deposit mobilisation
– Cross-sell products
Corporate Bank
$m 9M 2012 9M 2011
Net interest income 226.6 157.3
Non-interest revenue 94.8 83.6
Revenue (net) 321.4 240.9
Operating expenses (134.3) (124.1)
Provisions for impairment (28.2) (20.5)
Profit before tax 158.9 96.3
Net loans 4,207 2,912
Customer deposits 4,119 3,180
Cost/income ratio 41.8% 51.5%
Loans/deposits ratio 102.5% 91.9%
NPL ratio 0.6% 1.4%
Please note that for discussion of the results Corporate and Investment Bank (CIB) has been separatedinto Corporate Bank (comprises Corporate Bank Group and Transaction Services) and Investment Bank(comprises Ecobank Capital, Treasury business, Investment Banking and Research)
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34© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
One-stop shop for institutional investors focused on Africa
• Investment Bank PBT of $64.4 million, down 11%
YoY• Revenues of $190 million, up 4% YoY driven by
growing client relationships and short-termsecurities trading income
• Operating expenses rose 15% YoY to $125 million.CIR was 66% compared to 60% prior year periodbut showed a marked improvement on 1H12 CIR of 73%
• FOCUS
– Leverage footprint and local knowledgeexpertise
– Enhance distribution capacity
– Currency and African Assets Distribution(CAAD)
– Product innovation in our Securities and Asset
Management Business
Investment Bank
$m 9M 2012 9M 2011
Net interest income (21.3) 47.2
Non-interest revenue 210.8 134.7
Revenue (net) 189.5 181.9
Operating expenses (125.2) (109.2)
Provisions for impairment 0.2 (0.6)
Profit before tax 64.4 72.1
Earning assets 3,277 3,489
Funding1 1,696 1,045
Cost/income ratio 66.1% 60.0%
Please note that for discussion of results Corporate and Investment Bank (CIB) has been separated intoCorporate Bank (comprises Corporate Bank Group and Transaction Services) and Investment Bank(comprises Ecobank Capital, Treasury business, Investment Banking and Research)Note 1: funding is a mix of interbank deposits, interbank borrowings and other borrowed funds
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35© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Innovative solutions to retail and local businesses
Domestic Bank
$m 9M 2012 9M 2011
Net interest income 450.0 196.7
Non-interest revenue 252.9 180.7
Revenue (net) 702.9 377.4
Operating expenses (641.6) (311.7)
Provisions for impairment (57.0) (59.3)
Profit before tax 4.3 6.4
Net loans 4,324 2,828
Customer deposits 8,999 5,691
Cost/income ratio 91.3% 82.6%
Loans/deposits ratio 51.4% 52.7%
NPL ratio 9.0% 9.9%
• Domestic Bank PBT of $4.3 million, down 33% YoY,
due mainly to higher operating expenses• Revenues of $703 million, up 86% YoY driven by:
– Acquisition of Oceanic Bank
– Strong customer activity and loan balances
• Operating expenses more than doubled to $642million, due to the inclusion of Oceanic’s cost base
• Provision expense fell by 4% YoY to $57 million,reflecting asset quality improvements in the loan
portfolio
• FOCUS
– Accelerated low-cost deposit mobilisation
– Increased Value-Chain propositions
– Increase products per customer
– Integrated channel approach
– Cards
Appendix 3
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Segmental Analysis by Cluster
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38© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Francophone West Africa (UEMOA)
$m 9M 2012 9M 2011
Revenue 264.9 263.4
Operating expenses (173.7) (162.9)
Provisions for impairment (15.2) (15.5)
Profit before tax 76.0 85.1
Total assets 4,540 4,149
Loans 2,817 2,402
Deposits 3,353 3,262
Cost/income ratio 65.6% 61.8%
Loans/deposits ratio 84.0% 73.6%
NPL ratio 4.8% 7.0%
Francophone West Africa comprises affiliates in Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, Guinea Bissau, Mali, Niger, Senegal, and Togo
• Francophone WA PBT was $76.0 million, down 11%
YoY driven by: – Higher cost growth relative to revenues
– Adverse currency movements against theUSD (our base currency)
– Slow loan growth
• Revenues were $265 million, flat YoY, as strongrecovery in Cote d’Ivoire was offset by slower
revenue growth elsewhere within the cluster
• Operating expense growth well managed growingby 7% YoY
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39© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Nigeria
$m 9M 2012 9M 2011
Revenue 526.3 189.3
Operating expenses (443.7) (154.4)
Provisions for impairment (38.7) (8.1)
Profit before tax 43.8 26.8
Total assets 8,012 3,188
Loans 2,983 1,353
Deposits 5,841 2,245
Cost/income ratio 84.3% 81.6%
Loans/deposits ratio 51.1% 60.3%
NPL ratio 6.5% 5.0%
Nigeria categorized as a cluster in its own right due to its size
• Nigeria PBT of $43.8 million up 63% YoY, driven by
higher revenues and efficiency gains. AdditionallyOceanic Bank is contributing positively toperformance.
• Revenues of $526 million, up 178% YoY, duelargely to the acquisition of Oceanic Bank.
• Operating expenses were $444 million compared
with $154 million from prior year period. The CIRfell slightly to 84.3% compared with 81.6% in theprior year period due to ongoing cost reductioninitiatives implemented after the acquisition of Oceanic Bank.
• NPL ratio increased to 6.5% from 5.0%
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40© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Rest of West Africa (WAMZ)
$m 9M 2012 9M 2011
Revenue 219.5 165.3
Operating expenses (119.6) (91.2)
Provisions for impairment (17.4) (8.8)
Profit before tax 82.6* 65.3
Total assets 2,476 2,211
Loans 1,076 722
Deposits 1,765 1,668
Cost/income ratio 54.5% 55.2%
Loans/deposits ratio 61.0% 43.3%
NPL ratio 5.2% 2.3%
* The PBT of $82.6 million excludes share of loss of $0.5 million from associatesRest of West Africa comprises affiliates in Ghana, Guinea, Liberia, Sierra Leone and The Gambia
• Rest of West Africa PBT of $82.6 million, up 26%
on higher revenues and efficiency gains.
• Revenues rose 33% YoY to $220 million, reflectinggrowth in all affiliates, but especially in Ghana, dueto the acquisition of TTB
• Operating expenses of $120 million, up 31% YoYdriven by business volumes and costs associated
with TTB. Yet CIR improved moderately asexpenses continued to be well managed especiallyin TTB.
• NPL ratio deteriorated to 5.2% from 2.3% reflectinghigher provisions on TTB’s SME loan portfolio
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41© Ecobank Group 2013 | Investor Presentation | The Future is Pan-African – February 2013
Central Africa (CEMAC)
$m 9M 2012 9M 2011
Revenue 102.2 91.2
Operating expenses (70.5) (59.1)
Provisions for impairment (6.1) (3.3)
Profit before tax 25.5* 28.8
Total assets 1,615 1,445
Loans 989 708
Deposits 1,320 1,127
Cost/income ratio 68.9% 64.8%
Loans/deposits ratio 74.9% 62.8%
NPL ratio 3.6% 4.9%
* The PBT of $25.5 million excludes share of profit of $0.1 million from associatesCentral Africa comprises affiliates in Cameroon, Central Africa Republic, Chad, Congo-Brazzaville, Gabon and Sao Tome & Principe
• Central Africa PBT declined 13% YoY to $25.5
million due to combined effects of higher expensesand provisions for impairment losses
• Revenues increased 12% to $102 million, driven bystrong growth in Congo Brazzaville and Gabon
• Operating expenses increased 19% YoY primarilydue to growth in all affiliates
• NPL ratio improved significantly to 3.6% from 4.9%in the year ago period
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Southern Africa (SADC)
$m 9M 2012 9M 2011
Revenue 33.4 26.2
Operating expenses (31.6) (24.9)
Provisions for impairment (3.3) (1.1)
Profit before tax (1.5) 0.2
Total assets 376.1 292Loans 205.7 121
Deposits 240.0 192
Cost/income ratio 94.6% 95.0%
Loans/deposits ratio 85.7% 62.9%
NPL ratio 9.8% 7.0%
Southern Africa comprises affiliates in Democratic Republic of Congo, Malawi, Zambia and Zimbabwe
• Southern Africa pre-tax loss of $1.5 million reflected
higher operating cost associated with the fact thatthe cluster is relatively young and revenues are yetto catch up with costs
• Revenues increased by 27% YoY to $33.4 million,due to growth in business volumes in DR Congoand Zimbabwe
• Operating expenses increased by 68% YoY,reflecting higher personnel and non-staff expenses
• Provision expenses were higher at $1.3 millioncompared with $0.9 million in the prior period drivenby higher provisions in Zimbabwe and Zambia