Sterling Bank PLC

Investor/Creditor Presentation

August 04, 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
 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

4
 Sterling Bank at a Glance
Key Metrics Our Identity
June 2010 Dec 2009
Nigeria’s pre-eminent investment banking franchise
Description
(N’B) (N’B)

Growing presence in retail banking
Total Assets 208.1 221.3
Customer Deposits 145.5 161.3
Strong leadership brands across all financial services
segments
Net Loans 81.6 82.9
Capital Adequacy Ratio 14% 14%
Sound Corporate governance model
H1 2010 H1 2009
Excellent technology infrastructure and innovative
(N’B) (N’B) products
Profit before Tax 4.2 (6.9)

People-oriented customer-focused institution – ‘One
Earnings per Share 31k (54)k Customer’ Bank.
Cost/Income Ratio 75% 87%

Scale with clear intent. Managed diversification of
Return on Average Equity the business model
34.2% (25)%
(Annualized)

Long-term stable ownership base to support strategy
Shareholders’ Fund 25.0 21.1
Common shares outstanding 12.5B 12.5B

Performance and Strategic Highlights

Sterling Bank fully recovered and strengthened after 2009 strategic and operational review

H1 2010 results affirm Group strategy and superior execution

Robust risk management framework implemented and past lessons fully internalized

In line to attain cost control targets for FY 2010

Balance sheet trimming underpinned by focus on efficiency over scale

Key ratios remained satisfactory
5
 Share Price
12-Month Share Price: July 29, 2009 – July 28, 2010 Sterling Bank
All Nigeria Share Index

Aug 14: Oct 2: Dec 10: May 14: July 19: July 27:
CBN CBN Q3 Results FY 2009, Q1 AMCON H1
intervention intervention 2010 Results Bill signed Results
in 5 banks in 3 banks

100%

80%

60%

2.24
40%

20%

2.19 0%

-20%

-40%
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

2009 2010

6
 Executive Management
Yemi Adeola
Group Managing Director, CEO

Previously DMD, Trust Bank of Africa Limited

Prior to that, ED, Govt. and Public
Infrastructure (Citi Nigeria)

ED / Commercial Banking (Citi Nigeria)

Over 25 years professional experience
spanning banking, law, corporate
consulting and academia

Post graduate degree in Law – called to
the Nigerian Bar in 1983

Devendra Puri Garba Imam Lanre Adesanya

Executive Director

Representative of the State
Bank of India (SBI)

Previously DGM in SBI with 27
years banking experience

Management experience
across various areas including
Retail, Commercial Banking
and Risk Management

Responsible for Operations &
Technology/E-Banking
7
Executive Director

Previously ED, NAL Bank Plc

Over 24 years banking
experience

Masters Degree in Social
Science from Birmingham
University, UK

Responsible for Lagos
Mainland & Corporate
Banking Directorate
Executive Director

Previously MD/CEO, NBM
Bank

Over 21 years of broad
banking experience

Masters Degree in Economics
from the University of Lagos

Responsible for Lagos Island
& North/Public Sector
Directorate.
 Risks Management
Risks are tightly managed within our Enterprise Risk Management structure

Group/Bank

Board Risk Management

Board Credit Committee (BCC) Group Board of Directors Committee (BRMC)

Management Level

Asset and Liability

Management Credit Management Risk
Committee & (ALCO)
Committee (MCC) Committee (MRC)
Market Risk Committee

Group Head ERM/Chief Risk Officer

Operational Risk Compliance &

Credit Risk Management Market Risk Management
Management Information Security

8
 Subsidiaries & Affiliates

Sterling Bank Group

Subsidiaries Affiliates

Sterling Asset Sterling Crusader

Sterling Capital Sterling Safetrust Homes Nigerian
Mgmt & Trustees Insurance Sterling Pensions
Markets Ltd Registrars Ltd & Savings Ltd Stockbrokers Ltd
Ltd Brokers Ltd Ltd

Investment
Asset
Insurance
Registrar
Developer
Pension Fund
Broker Dealer

Banking Management Brokerage Services Finance Administrator
Nominee

Corporate
Trustee Services
Home Loans (PFA) Services
Finance Services
Advisory
Portfolio

Financial
Custody Services Management
Advisory Services
Financial

Fund Advisory
Management Services

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
 Income Statement

-12%
Comments

18,476
Gross earnings

June 2009 declined on the back
16,289 of low volumes.
June 2010
Reduction in funding
7% cost led to
-8% improvement in Net
10,346 Return from Funds.
17% 9,667
N’ Millions

-2%
Progress in the

8,444
7,745 implementation of cost
saving strategies and
5,394 5,040 improved efficiency
4,627 4,952
4,170 resulting in lower
operating cost.

Efficiency programs
and cost cutting
strategy reducing
Gross Earnings NRFF Other Income Operating Opex Profit before operating expenses
Income Tax

Return to profitability
achieved in Q1
reinforced
(6,859)

11
 Balance Sheet
-6%
Comments
221,318 -9%

Lower loan
208,126
200,245
volumes due to
Dec. 2009 risk
-10% consciousness
183,113
June 2010
impacted gross
161,277 earnings
145,546
Management
prioritized the
Millions

achievement of
an optimal
-2% deposit mix and
improved funding
82,935 costs over
81,591
nominal balance
sheet size
19%

21,074 25,013

Total assets Net Loans Customer Deposit Total liabilities Equity

12
 Ratios in the top bracket for Bank’s category of financial
institutions

87%
82%
June 2009 Comments
83% June 2010

Planned growth in
75% risk assets
creation
51% 50%
Reduction in NPLs
56%
through loan
recovery/work-out
Millions

40% as well as
24% 34% leveraging
AMCON
23% 14%

Reinforce
14% improvement in
operating
Loan-to-deposit NPL Ratio Coverage Ratio Cost to ROAE Liquidity CAR efficiency
Income Ratio

Improvement in
scale of
-25%
operations

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
 Revenues impacted by lower volumes
H1 2009 H1 2010
Revenue Mix
-12% Others 1,021 881
N‘M 100% = 18,476
Inv Inc 1,441 1,856
FBI
5,041 Forex 19 32
F&C 2,560 2,183
II AUFL 828 220 H1 2009 / H1 2010 Change
Interest Income Fee-based
∆ ∆
6,829 Mix Income Mix
Fees &
Placements 44.4% -14.7%
100% = 16,289 Commission
13,436
4,952
Treasury Bills -49.5% Forex 68.4%

5,406 Loans & Advances 3.6% Investment 28.8%

7,078 11,337

2,731 Adv. Under Fin. Lease -25.4% Others -13.7%

906 1,308
H1 2009 H1 2010
Fees & Commission Loans & Advances
Fee-based Income Mix Interest Income Mix
Forex Adv under Fin Lease
Investment Treasury Bills
Others Placements
20% 50% 18% 7%
12%
44% 62%
51%
24%
40%
29%
37% 2%
0.4% 0.6% 2%
H1 2009 H1 2010
H1 2009 H1 2010
15
 Operating Income driven by improved Net Interest
Margin
Operating Income
N‘M 7% H1 2009 / H1 2010 Change

Item ∆
100% = 10,346
100% = 9,668
881 Net Returns from Funds 17%
1,021
1,856
1,441 Fees & Commissions -15%
2,183
2,560 Investment Income 29%

Others -14%
5,394
4,627

H1 2009 H1 2010

Operating Income Mix NRFF

Fees & Commission
11% 9% Forex
Investment Income
15% 18% Others
48% 52%
0.20% 0.3%

27% 21%

H1 2009 H1 2010
16
 Net Earnings

H1 2009
H1 2010
Comments

Full recovery from
the net loss reported
in 2009.
4,170 3,939
PBT rose to N4.2
billion, while PAT
o n s

rose to N3.9 billion

Profit boosted by
i

Write-back of
l

provisions for the

l
M i

sum of N1.6 billion

PBT target for
December 2010 of
N8 billion

(6,859) (6,723)

Profit/Loss Before Tax Profit /Loss After Tax

17
 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

18
 Balance Sheet
Balance sheet focus shifts from size to efficiency. Deposits remain major funding source.

Key items -1.2% -6%

-9.9%
June 2009
N‘M Dec 2010
246,516 243,558
221,318
208,126

161,277
145,546

Balance Sheet Total assets Deposit

Assets Mix Liquid Assets Asset Funding Mix Equity

Loans & Advances Long-term Borrowing
inc. Adv. Fin. Lease Deposits
10% Other Liabilities
13% Fixed Assets 11%
Other Assets
12%
6% 11%
2% 47% 7%
14%

2% 44%

73%
37% 39% 70%
Dec 2009 June 2010
Dec 2009 June 2010
19
 Deposit Growth
Deposits breakdown -9.7%
N‘M Comments
100% =
161,277
100% =
Improvement in
145,546 deposit mix resulting
12,975
7,591 in lower funding
16,015 costs.
5,831
47,934 Interbank

Savings grew by 29%
53,748 Domiciliary while Demand
6,931 Demand deposits rose by 12%
8,956 Savings
Time
85,846
60,996

Dec 2009 June 2010

Deposit Mix 8% Time

11%
Savings
5% 4% Demand
42%
Domiciliary
53% Interbank

30%
37%

4% 6%
Dec 2009 June 2010
20
 Gross Loans

Overdraft
Gross Loans Net Loans
Advances
under
-0.9% Term Loan -1.2%
N‘M Others N‘M Finance
Lease
Loans &
100% = 96,750 100% = 95,788 100% = 82,592 100% = 81591 Advances

4,556 3,912
16,735 17,476

38,415 40,636

78,036 77,679

41,599 37,675

Dec 2009 June 2010 H1 2009 H1 2010

Gross Loans by Type Overdraft Net Loans by Type Loans & Advances
Term Loan Adv under Fin Lease
Others
6% 5%
18%
17% 43% 39%

94% 95%
42%
40%

Dec 2009 June 2010 Dec 2009 June 2010

21
 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
 Loan Book Decomposition

Non-Performing Loans Provisions for Risk Assets Coverage Ratio Comments

% N‘M % Dec 2009
June 2010
-3.9% -3.2% 1.21%
Purchase of bad
loans by the Asset
82.0% 83.0% Management
18,714 18,109
23.6% 22.6%
Company (AMCON)
expected to further
reduce Non-
performing Loans.

Loans by Performance
Performing
23% Non-Performing
24%

77%
76%

Dec 2009 June 2010

23
 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

24
 Liquidity Profile

Liquidity Ratio Liquid Assets Ratio

% % Comments
Dec 2009
June 2010
Liquidity ratio of 40%
above regulatory
-25% -3% benchmark of 25%.

Total liquid assets
50%
47% down (3)% to N91.7
40% billion from N103.5
billion in December
2009
44%

Loans to deposits ratio
expected to rise
given Management’s
renewed focus on
assets creation.

Liquid Assets Split 35% Cash

8% Govt. Sec.
8% Interbank
Placement

36%
56%
58%

H1 2009 June 2010

25
 Agenda

1 Corporate Information

2 Financial Highlights

3 Earnings Profile

4 Balance Sheet Analysis

5 Asset Quality

6 Liquidity

7 Efficiency

8 Strategic Outlook

26
 Efficiency

Operating Expenses Cost-to-Income Funding Costs

N‘M % N‘M
Comments
H1 2009
H1 2010
Funding costs dropped
by 32.5% to N5.9
-8.3% -13.8% -32.5% billion reflecting
deposit mix
8,444 87% 8,809 optimization initiatives
and lower interest rate
5,943 environment.

7,745 75%
Weighted Average

Cost of Funds stood at
(WACF) stood at 4%

Operating expenses
recorded a significant
drop reflecting
progress in the
Operating Expenses Breakdown Staff Cost implementation of
30% Opex cost saving strategies
31%

Cost to Income ratio
declined as a result of
improvements in
operating efficiency

Costs expected to
70% remain stable in the
69% short- to mid-term as
income rises

H1 2009 H1 2010
27
 Funding Ecosystem (Industry)
Central Bank of Nigeria Monetary Policy Rate Nigerian Interbank Offer Rate (NIBOR) Call
(MPR) 7-day
30-day
16%
6.0%
60-day
6.0% 6.0% 6.0% 6.0% 14% 90-day
6.0% 6.0% 12%
10%
8%
6%
4%
2%
0%
Jan '10 Feb '10 Mar '10 Apr '10 May '10 June '10
Jan Feb Mar Apr May Jun Jul

2010

Deposit Taking – Savings Accounts Deposit Taking – Fixed Deposit Call

7-day
30-day
60-day
14% 90-day
3.93% 180-day
12%
3.30% 3.23% 270-day
10% 360-day
2.93% 2.73%
2.32% 8%

6%

4%

2%

0%
Jan Feb Mar Apr May Jun Jul
Jan '10 Feb '10 Mar '10 Apr '10 May '10 June '10

2010
28
 Strategic Priorities

Short-term (2010-2012) Long-term (2015+)

Equity Injection - Minimum US$100mn excl. organic accretion
Globally competitive financial

Tap wholesale markets for debt to improve efficiency of services franchise
capital structure
Fully scaled business model with

Double asset market share primarily through organic growth institutionalized processes
in local corporate loan book beyond the stewardship of

Work to bring NPL levels to <10% current owners and managers

Improve liability generation through the expansion of retail
Systemically important operator
distribution footprint materially impacting all our

> 20% Return on Equity sectors of business participation

2010 2011 2012 2013 2014 2015

Mid-term (2013-2015)

3-5% market share measured by assets

Leading consumer banking franchise (bank of
choice for customers in our target markets)

Low single digit cost of funds

Diverse retail funding base

<5% in non-performing loans

Diversified income streams with top quartile position
in all our operating areas

Investment grade credit rating

Double digit revenue growth Y-o-Y

29
 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

30
 Thank You

31