Sterling Bank PLC

Investor/Creditor Presentation

November 22, 2010

 Important Information
Investor Relations
This presentation has been prepared by Sterling Bank PLC. It is intended for an audience of professional and institutional
investors who are aware of the risks of investing in the shares of publicly traded companies.

The presentation is for information purposes only and should not be construed as an offer or solicitation to acquire, or dispose
of any securities or issues mentioned in this presentation.

Certain sections of this presentation reference forward-looking statements which reflect Sterling Bank’s current views with
respect to, among other things, the Bank’s operations and financial performance. These forward-looking statements may be
identified by the use of words such as ‘outlook’, ‘believes’, ‘expects’, ‘potential’, ‘continues’, ‘may’, ‘will’, ‘should’, ‘seeks’,
‘approximately’, ‘predicts’, ‘intends’, ‘plans’, ‘estimates’, ‘anticipates’ or the negative version of these words or other
comparable words. Such forward-looking statements are subject to various risks and uncertainties.

Accordingly, there are or may be important factors that could cause actual outcomes or results to differ materially from
those indicated in these statements. Sterling Bank believes these factors include but are not limited to those described in its
Annual Report for the financial year ended December 31, 2009. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements that are included in this release.

Sterling Bank undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of
new information, future developments or otherwise.

2
 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

3
 Sterling Bank at a Glance
Key Metrics Our Identity
Sept 2010 Dec 2009  Nigeria’s pre-eminent investment banking franchise
Description
(N’B) (N’B)
 Growing presence in retail banking
Total Assets 279.3 221.3
Deposits 195.7 161.3  Strong leadership brands across all financial services
segments
Net Loans 90.5 82.9
Capital Adequacy Ratio 15% 18%  Sound corporate governance
Q3 2010 Q3 2009  Excellent technology infrastructure and innovative
(N’B) (N’B) products
Profit before Tax 5.6 (6.5)
 People-oriented customer-focused institution – ‘One
Earnings per Share 49k (54)k Customer’ Bank.
Cost/Income Ratio 62% 151%
 Scale with clear intent. Managed diversification of
Return on Average Equity the business model
30% (29)%
(Annualized)
 Long-term stable ownership base to support strategy
Shareholders’ Fund 26.4 21.1
Common shares outstanding 12.5 12.5

Performance and Strategic Highlights

 Q3 2010 results were in line with expectations and further affirm Group strategy and superior execution
 Sustained earnings momentum through third quarter 2010
 Steady growth in interest margins and writeback from credit provisions
 Progress in the implementation of cost savings strategies and improved efficiency
 Key ratios remained satisfactory

4
 Share Price
12-Month Share Price Movement: Sept. 30, 2009 – Sept. 30, 2010

3.50

3.00

2.50

2.00

1.50

1.00
1.45
1.30

0.50

0.00

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2009 2010

5
 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

6
 2010 has seen a return to profit
Q3 2009
-13%
Q3 2010
Comments
26,618  Gross earnings
declined on the
23,145
back of lower interest
10% rates
0.5%  Growth in net
15,051 revenue from funds
13,664
20% -0.4% 11,882 driven by reduction
11,819 in funding costs
187%

8,474  Operating expenses

7,063 6,601 6,577 remained relatively
5,674
stable
N’ Millions

 Sustained growth in
profitability driven by
improvement in NIM
and loan recovery

(6,515)

Gross NRFF Other Income Operating Opex PBT

Earnings Income

7
 Solid balance sheet growth
FY 2009
31%
Q3 2010
Comments
322,399 26%  Recorded growth on
all key balance
26%
279,321 sheet lines

246,516 252,904  Growth in total assets

21% reflects increased
221,318 build-up of liquid
N’ Millions

200,245 assets
195,721

161,277  Growth in deposits

9%
achieved
concurrently with
improvement in net
82,935 90,541 25% interest margins
 Improvement in
26,417 shareholders’ equity
21,074
arising from a mixture
of profit accretion
and write-back of
Balance Sheet Total Assets *Loans & Total Liabilities Deposits Shareholders' credit provisions
Advances Equity

*Including Advances under

Finance Lease

8
 Key financial ratios remain satisfactory
FY 2009 Q3 2009
Q3 2010 Q3 2010
Comments
 Satisfactory capital
and liquidity cushion
151% to support business
growth
 Return on equity
consistently above
target and higher
82% 86% than industry
62% average
 Drop in cost to
43%
35% income ratio
30%
24% reinforcing
14% 15% 20%
improvement in
operating efficiency
 Continuous
improvement in asset
-29% quality

CAR Liquidity Ratio ROAE Cost-Income NPL Ratio Coverage

(Annualized) Ratio Ratio

9
 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

10
 Revenues boosted by interest income …
Revenue Mix Interest Income
Fee Income 1,191 23,146
N‘M 3,174 34 2,178
10,336 322 6,577
Q3 2010

4,261
16,569
1,650

4,492 549 681 879 26,618

10,532 549 6,601

8,195
Q3 2009

20,016
740

Placements Inv. in Govt Loans & Finance Fees & Forex Investment Others Total Grand Total
Securities Advances Lease Commissions Income

Fees & Commission Interest Income Mix Loans & Advances

Fee-based Income Mix
Forex Finance Lease
Investment
Inv. in Govt Securities
Others
Placements

13% 4% 10%
18%
68%
11% 48% 62%
53%

26%
8%
41%
33%
2%
1% 3%
11 Q3 2009 Q3 2010 Q3 2009 Q3 2010
 …while the rise in operating income was driven by
improvement in NIM
Operating Income Gross Earnings (Q on Q)
1,191 15,051
N‘M 2,178 42%
3,174 34
8,474 23,145
Q3 2010

96%
16,289

N’ Millions
681 879 13,664
4,492 549
8,297
Q3 2009

7,063

Net Returns Fees & Forex Investment Others Total

from Funds Commissions Income Q1 2010 Q2 2010 Q3 2010

Operating Income Mix NRFF

Fees & Commission
Forex
6% 8% Investment
5% Others
4% 15%
52%
56%
0%

33% 21%

Q3 2009 Q3 2010
12
 Sustained profitability momentum
Profit /(Loss) Before Tax 2009
N’M 2010
Comments
4,170 5,674

593 1,408  Recovery from the

net loss reported in
2009 has been
sustained

(6,859) (6,515)  Outlook for Q4

Profit /Loss After Tax remains positive
N’M
5,343
3,939
483 1,272

(6,723) (6,196)

Earnings / (Loss) per Share

(kobo)
31 43
4 10

(56) (54)

Q1 Q2 Q3

13
 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

14
 Assets Decomposition
44% FY 2009 Total Assets (Q on Q)
34%
149,209 Q3 2010
279,321
3%
9%
103,520 201,679 208,126
90,541
N’ Millions

82,935

N'millions
18%

34,874
-10%
29,650

5,213 4,698

Liquid Assets Loans & Advances Fixed Assets Other Assets Q1 2010 Q2 2010 Q3 2010

Asset Mix Liquid Assets

Loans & Advances
Fixed Assets
13% 12% Other Assets

2% 2%
47%
53%

32%
37%
FY 2009 Q3 2010
15
 Funding Mix
21%
FY 2009 Comments
195,721 Q3 2010
 Well diversified funding
161,277 base
 Deposits remain a major
source of funding
N’ Millions

74%  Low funding cost of 4%

25% driven by reduced
42,982 dependence on high
26,417
14,202 14,202
24,766
21,074 cost funds.

Deposits Long-term Borrowing Other Liabilities Equity

Asset Funding Mix

Deposits
Long-term Borrowing
10% 9% Other Liabilities
Equity
11% 15%

6%
5%
73% 70%

FY 2009 Q3 2010
16
 Steady growth in deposits
Deposit breakdown Deposits (Q on Q)
38,177 195,720
N‘M 6,788 34%
47,772
9,255 195,721
Q3 2010

93,728 5%

138,891 145,546

N’ Millions
21%
12,975 161,277
47,934 7,591

85,846 6,931
FY 2009

Q1 2010 Q2 2010 Q3 2010

Time Savings Demand Domiciliary Interbank Total

Deposit Mix Time

Savings
8% 19%
Demand
5%
Domiciliary
48%
53% Interbank
4%

30%
24%

4% 5%
FY 2009 Q3 2010
17
 Steady growth in loan book

Loans & Advances Overdraft

Comment
6% Term Loan
N‘M
Others

100% = 108,186
Finance Lease  Expected increase in
100% = 101,656 loan book in Q4
3,453
4,556
17,085 34,375
given slight uptick in
domestic economy
38,415 27,566

41,599 42,792

FY 2009 Q3 2010

Loans & Advs by Type Overdraft

Term Loan
4% 3% Others
Finance Lease
17%
41% 40%
32%

38%
25%
FY 2009 Q3 2010
18
 Gross Loans by Industry
Gross Loans
Q3 2010 Agriculture (FY 2009=1%)
1%
11%
13% Capital Market Operators (FY 2009=20%)

3% Finance & Insurance (FY 2009=2%)

General/Others (FY 2009=2%)

13%
Government & Public Utilities (FY 2009=6%)

Individuals & Professionals (FY 2009=9%)

20%
2% Manufacturing (FY 2009=10%)
3%
Oil & Gas (FY 2009=9%)

Real Estate & Construction (FY 2009=24%)

11%
Telecoms & Transportation (FY 2009=6%)
11%
12% Trading & General Commerce (FY 2009=11%)

Comment
 Well diversified loan book

19
 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

20
 Continuous improvement in asset quality

5%
FY 2009 Comments
Q3 2010
85.9%  NPLs declined 10% to
81.9% N20.5b from N22.8b
reflecting performance
improvement in loan
-17% assets
-11%
 Provisions for Risk Assets
23.6% dropped 6% due to
19.6% 18.4% progress in loan
16.3%
recovery efforts

NPL Ratio Coverage Ratio Provision to Gross Loans

Loans by Performance Performing

Non-Performing
23.6% 19.6%

76.4% 80.4%

FY 2009 Q3 2010
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 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

22
 Strong liquid assets position
Liquid Assets breakdown
N‘M
90,093 149,208
Q3 2010

48,139

6,037 4,939

68%

27,506 103,521
57,833
FY 2009

9,608
8,574

Cash & CBN Treasury Bills Due from Inv. Securities Total
Balances other banks (FGN Bonds)

23
 Liquidity ratio well above regulatory
benchmark
14% FY 2009
Q3 2010
23% 53%
47%
43%
35%

Liquidity Ratio Liquid Assets Ratio

Liquid Assets Split

Cash
8% 4% Interbank
Treasury Bills
27%
Govt. Securities
60%
32%
56%

9%

3%
FY 2009 Q3 2010
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 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

25
 Efficiency underlines strong performance recorded
in the third quarter 2010
-38%
0.5%
-59% Q32009 Comment
12,953 Q3 2010
11,819 11,882 151%  Costs remained
relatively stable
over the period
8,095
N’ Millions

62%

Operating Expenses Funding Costs Cost to Income

Operating Expenses Breakdown Staff Cost

Other Expenses

30%
31%

69% 70%

Q3 2009 Q3 2010
26
 Funding Ecosystem (Industry)
Central Bank of Nigeria Monetary Policy Rate Nigerian Interbank Offer Rate (NIBOR) Call
(MPR) 7-day
30-day
16%
60-day
6.40% 14% 90-day
6.20% 12%
10%
6.00%
8%
5.80%
6%
5.60%
4%
5.40%
2%
5.20%
0%
5.00% Jan Feb Mar Apr May June July Aug Sept Oct
Jan Feb Mar Apr May June July Aug Sept
2010
2010

Deposit Taking – Savings Accounts Deposit Taking – Fixed Deposit Call

7-day
30-day
4.50% 14% 60-day
4.00% 90-day
12% 180-day
3.50%
270-day
3.00% 10%
360-day
2.50% 8%
2.00%
6%
1.50%
1.00% 4%
0.50%
2%
0.00%
Jan Feb Mar Apr May June July Aug Sept 0%
Jan Feb Mar Apr May June July Aug Sept
2010
2010
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 Contacts

Office

20 Marina, Lagos, Nigeria

Tel: 234-(01) 2600420-9; Fax No: 234-(01) 2702310
Website: www.sterlingbankng.com

Investor Contacts

Yemi Odubiyi Abubakar Suleiman

Chief Strategy Officer Group Treasurer / Financial Markets Head
+234 803 535 0991 +234 803 535 1172
yemi.odubiyi@sterlingbankng.com abubakar.suleiman@sterlingbankng.com

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 Thank You

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