CONSOLIDATED BALANCE SHEET

Report on financial statements

AS AT 31 DECEMBER 2009
We have audited the accompanying consolidated financial statements of Oceanic Bank International Plc
Group Group Bank Bank (“the Bank”) and its subsidiaries (together, “the Group”) which comprise the consolidated balance sheets
2009 2008 2009 2008 as of 31 December 2009, consolidated profit and loss accounts and consolidated statements of cash flow
N'000 N'000 N'000 N'000 for the year then ended and a summary of significant accounting policies and other explanatory notes.
Assets
Cash and balances with central banks 54,707,470 219,603,069 32,512,146 209,928,721
Treasury bills 30,447,834 51,599,267 29,896,915 51,143,306 Directors’ responsibility for the financial statements
Due from other banks 39,182,601 188,624,756 35,298,039 186,354,159 The directors are responsible for the preparation and fair presentation of these consolidated financial
Loans and advances to customers 387,803,733 503,693,644 383,666,171 490,075,624 statements in accordance with Nigerian Statements of Accounting Standards and with the requirements
Advances under finance lease 3,209,040 4,833,839 3,197,888 4,832,376
Insurance receivables 340,860 223,437 - -
of the Companies and Allied Matters Act and the Banks and Other Financial Institutions Act. This responsi-
Investment securities 132,988,205 104,906,107 108,252,341 80,545,839 bility includes: designing, implementing and maintaining internal control relevant to the preparation and
Investment in subsidiaries - - 29,589,451 33,068,771 fair presentation of financial statements that are free from material misstatement, whether due to fraud or
Deferred tax asset 133,422,861 102,098,798 132,384,720 101,606,826 error; selecting and applying appropriate accounting policies; and making accounting estimates that are
Other assets 40,616,768 37,885,550 46,607,454 36,529,451
Investment property 12,156,324 11,865,798 4,367,745 4,300,000
reasonable in the circumstances.
Property and equipment 66,213,838 62,969,353 63,546,306 60,959,754
Total assets 901,089,534 1,288,303,618 869,319,176 1,259,344,827 Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
Liabilities
We conducted our audit in accordance with International Standards on Auditing. Those Standards require
Customer deposits 556,781,495 1,088,881,437 545,915,514 1,090,506,806
Due to other banks 278,330,695 81,133,911 277,144,003 79,144,343 that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
Liability on investment contracts 640,630 463,664 - - whether the financial statements are free from material misstatement.
Liability on insurance contracts 1,208,092 1,033,847 - -
Borrowed funds 25,830,000 85,504,350 25,830,000 77,920,850
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
Current income tax 2,797,328 2,461,024 847,820 886,969
Other liabilities 49,867,726 52,867,108 43,658,342 42,478,234 the financial statements. The procedures selected depend on the auditor’s judgment, including the assess-
Retirement benefit obligations 1,557,719 3,764,955 1,521,372 3,352,809 ment of the risks of material misstatement of the financial statements, whether due to fraud or error. In
CBN Convertible loan 100,000,000 - 100,000,000 - making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
1,017,013,685 1,316,110,296 994,917,051 1,294,290,011
and fair presentation of the financial statements in order to design audit procedures that are appropriate
Equity in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
Share capital 11,110,685 11,110,685 11,110,685 11,110,685 internal control. An audit also includes evaluating the appropriateness of accounting policies used and
Share premium 176,748,589 176,748,589 176,748,589 176,748,589 the reasonableness of accounting estimates made by management, as well as evaluating the overall
Retained earnings (319,074,081) (230,375,878) (327,837,959) (237,185,268)
presentation of the financial statements.
Other reserves 15,648,226 14,816,834 14,380,810 14,380,810
Equity holders of parent (115,566,581) (27,699,770) (125,597,875) (34,945,184)
Non-controlling interest (357,570) (106,908) - - We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
Total equity (115,924,151) (27,806,678) (125,597,875) (34,945,184) our audit opinion.
Total equity and liabilities 901,089,534 1,288,303,618 869,319,176 1,259,344,827
Opinion
Acceptances and guarantees 107,715,379 171,929,386 102,241,028 170,812,831 In our opinion, the consolidated financial statements give a true and fair view of the state of financial
affairs of the Bank and Group as of 31 December 2009, and of their losses and cash flows for the period
CONSOLIDATED PROFIT & LOSS ACCOUNT then ended in accordance with Nigerian Statements of Accounting Standards, the Companies and Allied
FOR PERIOD ENDED 31 DECEMBER 2009 Matters Act and the Banks and Other Financial Institutions Act.
Group Group Bank Bank
12 months to 15 months to 12 months to 15 months to Emphasis of matter
December December December December Without qualifying our opinion, we draw attention to the following matters.
2009 2008 2009 2008
N'000 N'000 N'000 N'000
As described in note 43 in the financial statements the Bank and the Group incurred losses before tax
Gross earnings 196,407,964 118,298,500 190,838,871 106,038,572 amounting to N118 billion and N116 billion respectively for the year ended 31 December 2009 and had
negative shareholders funds of N126 billion and N116 billion respectively as of that date. These conditions,
Loss before taxation (116,147,211) (338,233,659) (117,865,654) (345,724,748) along with other matters as set forth in note 43 indicate the existence of a material uncertainty which may
Taxation 27,139,652 103,557,554 27,212,964 104,401,107
Loss after taxation (89,007,559) (234,676,105) (90,652,690) (241,323,641) cast significant doubt about the bank’s ability to continue as a going concern. However, as indicated in
Non-controlling interest 388,115 96,387 - - note 43 the bank has received financial support from the Central Bank of Nigeria and has also received a
Loss attributable to the group (88,619,444) (234,579,718) (90,652,690) 104,401,107 confirmation of continued financial support for a period of at least 12 months from the date of these finan-
cial statements.
Appropriated as follows:
Transfer to statutory reserve - 29,557 - -
Transfer to contingency reserve 102,430 176,733 - - Report on other legal and regulatory requirements
Transfer to retained earnings reserve (88,721,874) (234,786,008) (90,652,690) (241,323,641) The Companies and Allied Matters Act and the Banks and Other Financial Institutions Act require that in
(88,619,444) (234,579,718) (90,652,690) (241,323,641) carrying out our audit we consider and report to you on the following matters. We confirm that:

Earnings per share (basic) (N3.99) (N10.56) (N4.07) (N10.86) i. we obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit;

ii. in our opinion proper books of account were kept by the Bank;

iii. the Bank’s balance sheet and profit and loss account are in agreement with the books of account;

Apostle Hayford I. Alile Mr John Aboh
Chairman Managing Director
The balance sheets, profit and loss accounts, report of the independent auditor and specific disclosures are published
in compliance with the requirements of S.27 of the Banks and Other Financial Institutions Act.The information disclosed
have been extracted from the full financial statements of the bank and the group and cannot be expected to provide as
full an understanding of the financial performance, financial position and financing and investing activities of the bank
and the group as the full financial statements. Copies of the full financial statements can be obtained from the
Registrars of the Bank.
iv. our examination of loans and advances was carried out in accordance with the Prudential Guidelines for
licensed banks issued by the Central Bank of Nigeria;
v. related party transactions and balances are disclosed in Note 36 to the consolidated financial
statements in accordance with the Central Bank of Nigeria Circular BSD/1/2004.
Contraventions
During the period, the bank contravened certain provisions of the Banks and Other Financial Institutions
Act and the relevant circulars issued by the Central Bank of Nigeria. The details of these contraventions are
disclosed in Note 42 to the consolidated financial statements.

Chartered Accountants 11 June 2010

Lagos

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