PAGES DE COUVERTURE va xp 6 10/09/11 9:01 Page 1 PAGES DE COUVERTURE va xp 6 10/09/11 9:01 Page 2 RAPPORT B AFB VA 2010 xp 6 10/09/11 9:09 Page 1

1 ess nk ucc Ba ith S ct w CONTENT rst The Pa iland Fi Afr

A Board of Directors Page 3

B Chairman’s Message Page 4

C Management Page 5

D Economic situation Pages 7-9

E Progress report Pages 11-15

F Financial report Pages 17-23

G Auditor’s general report Pages 25-27

H First Bank network and correspondent banks Page 28 RAPPORT B AFB VA 2010 xp 6 10/09/11 9:09 Page 2 RAPPORT B AFB VA 2010 xp 6 10/09/11 9:09 Page 3

Board of Directors

Dr Paul K. FOKAM CHAIRMAN

Mr. Albert NIGRI Mrs Julienne K. FOKAM BOARD MEMBER BOARD MEMBER

Mr. Richard NOUKELACK Mr. Warren WEINSTEIN BOARD MEMBER BOARD MEMBER RAPPORT B AFB VA 2010 xp 6 10/09/11 9:09 Page 4

Chairman’s Message

Dear shareholders, Dear friends,

In 2010, the global economy was marked by a gradual but fragile recovery. The global financial system, whose foundations were badly shaken by the severe crises of the previous years, was rescued by huge stimulus and a raft of bail-out measu- res that are gradually restoring confidence as can be attested by the increase in glo- bal growth to 4.8% in 2010 from 2.2% in 2009.

Africa was not left out of this positive trend. The continent recorded a 5% growth in 2010 against 2.6% in 2009, and is attracting more and more foreign direct invest- ments. According to the IMF, Africa is expected to record 5.5% growth in 2011, that is, the same performance as in 2005.

In the CEMAC region, the most significant development was that the 1972 Fort Dr Paul K. FOKAM Lamy Agreement was amended to the effect that appointments to top manage- ment positions in all CEMAC institutions and specialized agencies shall henceforth be according to the principle of geographical rotation of member States by alphabetical order. The region recorded a growth rate slightly below global level, that is, 4.2%.

At the national level, Cameroon successfully conducted its bond issue operation dubbed "ECMR 5.6% net 2010 - 2015" to col- lect funds for its own contribution to the funding of development projects intended to boost investment and productivity. Our institution was member of the bank consortium – Lead arranger, along with Citibank and SGBC. Subscription was com- pleted in 15 days at 101.59%.

During the year under review, the vitality of the banking system was evidenced by the entry of a 13th bank on the one hand, and a major branch network extension on the other hand, with a sharp increase in the number of counters in Yaoundé and Douala, both of which now total 165 branches and 180 ATMs.

I am proud to inform you that Afriland First Bank has significantly strengthened its position as second overall in the Cameroon banking system since 31 December 2010. Its strategy and SMEs oriented drive s, its customized follow-up policy for big businesses, and most especially its range of specific products tailored to the needs of individual customers raised your institution to the leading position in the financing of the economy, with a total of CFA F 335 billion loans granted to custo- mers, a 17% increase as compared to 2009. Customer deposits moved up from CFA F 370 billion as at 31 December 2009 to CFA F 458 billion as at 31 December 2010, representing 19.50% of resources of the Cameroon banking system.

As you can conclude by yourself, our 2006-2010 five years plan ends on a general note of satisfaction. Let us rejoice for having achieved our objective, which was to be among the top 3 leading banks in Cameroon by 2008. I hereby seize this opportu- nity to congratulate management and staff for the commendable work done so far.

Here we are at the start of a new five-year plan. Just like before, we shall stick to our objective to support our customers on the road to success through our commitment to always put their satisfaction first. We must always acknowledge that we are blessed to be at their service.

In 2011, we shall focus on our vision of the leading African Bank of the millennium and concentrate our actions at two levels. At the economic level, we must ensure higher shareholders’ dividends, suitable return on investment and a robust financial structure. At the social level, we must promote the creation and equitable distribution of wealth among the entire popula- tion and restore hope to the poor.

We thank God Almighty for continuously showering His grace on our institution, and we place ourselves under His protection for all our future endeavours.

The Chairman

Dr Paul K. FOKAM RAPPORT B AFB VA 2010 xp 6 10/09/11 9:09 Page 5

Management

Mr. Alamine OUSMANE MEY CEO

Mr. Alphonse NAFACK Mr. Célestin GUELA Deputy CEO N°1 Deputy CEO N°2

Mr. Appolinaire DONGMO Mr. Souaibou ABARI Mr. Jean GAKAM Mrs. Yvette NGASSAM Director of Legal Affairs & Debt Recovery Director of Sales & Marketing Director of Financial, Accounting & Management Control Director of Operations & Resources

Mr. Gilles NZIE NGUIAMBA Mr. Guy Laurent FONDJO Mr. Christian FOGAING Mr. Robert NKOUS Director of Risk Department Director of Information Systems Director of Research & Development Director of Human Resources RAPPORT B AFB VA 2010 xp 6 10/09/11 9:09 Page 6 RAPPORT BAFBVA2010xp610/09/119:10Page7 Economic Situation 2010

Afriland First Bank The Pact with Success RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 8

Economic 8 Situation ess nk ucc Ba ith S ct w rst The Pa iland Fi Afr

ECONOMIC SITUATION As concerns CEMAC, after a slowdown in growth 2010 failed to live up to the hopes that emerged in in 2008 following the global financial and economic the 2nd semester of 2009, and recovery that seemed crisis, indicators are once again promising, thanks so close now seems uncertain owing to a fragile to the recovery in prices of main export products banking system and budgetary rigour applied by and strong investment. Thus, in 2010, the sub- States. Most advanced economies and a few emer- region recorded a 4 percent growth rate, against ging economies are still battling with major adjust- 2.1percent in 2009. ments. Their recoveries are at a sluggish pace, and high unemployment poses major social challenges. The situation in Cameroon is in line with the By contrast, many emerging and developing econo- trend of recovery in the CEMAC region, though at a slower pace. Economic growth is estimated at 3.2 mies are once more witnessing strong growth, percent in 2010, up from 2 percent in 2009, owing because they did not experience major financial to the authorities’ earlier support for sectors in dis- excesses prior to the Great Recession. Overall, global tress and stronger external demand for Cameroon’s stood at 4.8 percent in 2010 and drop to 4.2 percent export products. Inflation rate which stood at 5.3 in 2011, which is more or less in line with earlier percent in 2008 due to the food crisis was contained forecasts. According to the International Monetary to 3 percent in 2009, then to 1.3 percent in 2010 end Fund, and deterioration factors are still prevalent. owing to robust local harvests, lower import tariffs Sub-Saharan Africa is rebounding from the slow- on several food items, and government subsidies on down in 2009. Strong macroeconomic fundamen- fuel products according to IMF. tals throughout much of the region leave it well positioned to benefit from the global recovery cur- However, this optimism is offset by the slowdown in economic activity that led the government to reduce rently under way. The slowdown to 2.6 percent in its 2010 budget and to consider revising downwards 2009 was brief, contained by the rapid implementa- its forecasts for 2011. Anyway, the energy deficit tion of countercyclical policies made possible by the with the looming threat of power outages in 2011, policy room that many economies had built prior to delayed kick-off of major infrastructure and mining the downturn. Output growth in the region reached projects. A decline in oil production and shortage of 5 percent in 2010 and 5.5 percent in 2011, suppor- foodstuffs such as of sugar and mackerel fish in ted not only by the recovery in exports and commo- October have undermined household confidence dity prices, but also by robust domestic demand in and are perceived as early signs of an economically a number of economies. bleak year 2011. RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 9

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At the financial level, the banking system in Growth is driven by the non-oil sector and reco- ess nk Cameroon included 12 commercial banks, 5 finan- very is expected in most industries. Agri-food ucc Ba cial companies, 4 specialized finance institutions industry production would increase by 4.4 per- ith S ct w (SNI FEICOM, FNE, CFC), 28 insurance companies, cent, the other manufacturing industries by 3 per- rst

426 microfinance institutions and a stock cent and the 'Electricity, gas and water "sub-sector The Pa

exchange (DSX). The financial sector is still charac- by 4.8 percent. However, supply in this sub-sector iland Fi

terized by low use of banking facilities, limited remains insufficient to meet a growing demand Afr access to financial services for small and medium and increasing urban population. “Building enterprises and significant liquidity levels. As at 31 construction and civil engineering” sub-sector December 2010, outstanding appropriations shall record an 8.4 percent growth rate. amounted to CFA F 1548.3 billion against CFAF Growth in the tertiary sector should fluctuate 2400 billion of customer deposits. Operationally, around 4.9 percent. The “Transport, warehousing, BEAC’s governance system has been modified, with communications" sub-sector (6.4 percent) would the Governor now appointed by each Member contribute to this improvement. Economic opera- State on a rotating basis. The DSX recorded its first tors dealing in this line expect an increase in bond operation with the listing of IFC. In freight traffic with the recovery in the timber December, the Government issued domestic cur- industry. ”Distribution, restaurants and hotels" as rency bonds of CFA 200 billion in the local market, well as (4.5 percent), "Banks and financial institu- to finance priority infrastructural projects, and was tions" (5.8 percent) would also sustain this growth. successful in attracting both domestic and foreign investors’ interest. Finance wise, emphasis will be laid on preserving financial stability through strengthened supervi- Cameroon Economy Outlook 2011 sion of financial institutions and close monitoring Cameroon’s real economic growth is projected at of compliance with prudential regulations and 2.9 percent in 2011 from 3.2 percent in 2010. Oil defining a strategy to address any emerging vulne- GDP would contract by 10.7 percent. Conversely, rabilities. the non-oil GDP growth would rise to 4.4 percent, reflecting a recovery in crisis-stricken sectors such Finally, the IMF review mission encouraged as timber and rubber. Growth will continue to be Cameroonian authorities to: driven by the primary and tertiary sectors. • step up the implementation of their Growth and The primary sector would record a 4 percent Employment Strategy; growth in 2011 as a result of catch-up in the "Industrial agriculture export” sub-sector. In the • accelerate public investment programs to food agriculture, livestock and fisheries sub-sec- address infrastructural gaps in energy, water sup- tors, production is compounded by a rather rudi- ply and transportation that currently constrain mentary system and costly inputs. The "Forestry economic development and poverty reduction and logging" sub-sector is also expected to boost prospects; sector growth; as a result of exceptional adminis- trative and fiscal measures taken by the • continue to improve governance, the business Government since 2009, growth in this sector is climate, and creditor rights, thereby contributing expected to stand around 10 percent. to further deepen the role of the financial sector. The mission underscored the importance of conti- In the secondary sector, growth is projected nuing to seek appropriate resources to finance at 1.6 percent. After a 2.5 percent decrease in public investment projects in a way that would 2009, the sector started bouncing back in 2010 help preserve fiscal and debt sustainability and and shall keep up the momentum in 2011. maintain macroeconomic stability”. RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 10 RAPPORT BAFBVA2010xp610/09/119:10Page11 2010 Progress Report

Afriland First Bank The Pact with Success RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 12

Progress 12 Report ess nk ucc Ba ith S ct w rst The Pa iland Fi Afr

New growth drivers dented record in the entire Sub-Saharan Africa Throughout 2010, Afriland First Bank continued both in terms of highest amount ever raised and to support the wealth creation efforts of business the very short period -15 days- for subscriptions. captains and the State, on the one hand, and It goes a long way to showing that despite econo- individuals in their quest for more comfort and mic hardships, domestic savings exist and can be welfare, on the other hand. This enabled our ins- mobilized. Afriland First Bank, member of the titution to forge ahead in the Cameroon banking bank consortium – Lead arranger appointed for sector during the period under review and resul- the operation, has once more confirmed its com- ted in a marked improvement of various aggre- mitment to support the State in its quest for new gates, strengthening its position in the sector. In sources of funding, inasmuch as the amount rai- fact, since 31 December 2010, Afriland First Bank sed represents Government’s financial contribu- occupies the first position in terms of credits with tion to the implementation of strategic projects. CFAF 335 billion of total loans granted. This per- In the same vein, we once more demonstrated formance is evidence of Afriland First Bank’s lea- our corporate social responsibility by signing a ding role in financing Cameroon’s economy. CFA F 32 billion loan agreement with the Minister Besides confirming its role as a choice partner of of Finance. The amount paid up by Afriland First enterprises, our institution went a step further to Bank is earmarked to finance the first phase of win over individual customers, including civil ser- the Emergency Thermal Programme aimed at vants, private sector employees, diplomatic offi- developing power generation units to address cials and business people. Concretely, this implies the numerous load shedding problems suffered expanding our network for greater proximity, by households and businesses in Yaounde, broadening and diversifying our commercial Bamenda, Ebolowa and Mbalmayo. It should be offer and implementing a flexible lending sys- noted that Cameroon incurs a 1 to 1.5 percent tem. loss of GDP due to structural deficit in energy The year’s major economic event is undoubtedly supply. the raising of CFAF 200 billion by the Cameroon Generally, funding was focused on the following government through a bond issue. The operation sectors: dubbed "ECMR 5.6% net 2010 - 2015" recorded • Building and public works ; an oversubscription rate of 101.59 percent by • Industry; individuals and companies residing in or outside • Agrobusiness; the Economic and Monetary Community of • Transport; Central Africa (CEMAC). This is indeed an unprece- • Real estate; RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 13

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• Commerce / distribution. ges of mobility. Ultimately, this new service will ess nk It is worth emphasizing here that the BPW and provide customers with the opportunity to set- ucc Ba ith S

Industry sectors have recorded a sharp increase tle some utility bills at a distance, and even ct w rst of credits granted by Afriland First Bank, owing make purchases of goods and services from to their impact on the local economy. authorized partners such as supermarkets, The Pa

In order to increase its credit facilities, Afriland pharmacies, petrol stations etc., services that go iland Fi

First Bank signed a partnership agreement with beyond simple money transfer, usually to rela- Afr the Deutsche Investitions und tives living in remote rural areas. Philippe Entwicklungsesellshaft (DEG), a German public Vandebrouck, CEO of MTN is convinced that institution specialized in private sector financing. "Mobile Money will promote and foster the The CFA F 6.5 billion fund enables Afriland First values of sharing and solidarity peculiar to Bank to strengthen its capital basis, increase African societies." the loan package to SMEs and extend its opera- Besides Mobile Money, the bank endeavoured tions to regions that do not currently have to improve its payment card offer, with the access to banking services. According to Philip migration of I-Card into I-Card Plus, which Kreutz, CEO of DEG, "Cooperation between now allows I-Card Plus holders access to ATMs. Afriland First Bank and DEG is strongly marked This innovation provides a solution to the by innovations." Innovations include partner- needs expressed by people with little or no ship between MTN, the leading mobile phone access to banking services, such as the youths, company in Africa and Afriland First Bank pensioners and especially low-income workers through the launching of Mobile Money. This and seasonal workers. Customer satisfaction is a new money transfer and payment facility was also noticeable among the over 2,000 Muslims who travelled to Mecca for the Hajj. The bank was once again appointed as Hajj’s one- stop-shop by the National Hajj Commission (NHC). Activities involved include: • Pre-funding of various contracts signed by NHC for the preparation of Hajj; • Securing of funds collected by authorized guides from pros- pective pilgrims and deposited at the bank; • Carrying out various banking operations relating to the orga- nization and conduct of Hajj. The successful organization of Hajj 2010 has for the second consecutive year earned the Cameroonian delegation congratulations from Saudi authorities and pilgrims, main beneficia- ries of measures undertaken in consultation which combines ease of use, reliability and with the National Hajj Commission. round-the-clock availability with the advanta- Meanwhile, the bank continued implementing RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 14

14 ess nk ucc Ba ith S ct w rst The Pa iland Fi Afr

its current network expansion policy and impro- and technology as well as socioeconomic and orga- ving customer reception areas. These actions are nizational changes. aimed at enhancing closeness with customers so On this latter aspect, training focused on various as to provide them with solutions that are tailo- topics such as asset-liability management, financial red to their needs, and which can be summarized analysis, risk analysis, negotiation strategy, mana- as follows: gement and leadership, etc. Besides, in order to • Reduction of access time; create healthy emulation, the 2010 Excellence • reduction of access costs; Awards were given to fifteen deserving employees • Simplified access; from the Bafoussam branch and the Information • Greater customer friendliness. Systems Department (ISD). This Department distin- This explains the opening of four new branches: guished itself in the management of projects with Mvog-Mbi and Biyem-Assi in Yaoundé, high impact on the operating account, including: Bonamoussadi and Bessengue in Douala. Two new • implementation of a continuity plan; First Bank counters were also opened, one in Dovv • Upgrading of computer networks; Supermaket Bastos, Yaounde and the other at the • design and installation of various software modu- Douala International Airport. All these new bran- les; ches and counters are equipped with ATMs where • setting up of videoconference facilities; customers can serve themselves, thereby saving • securing of computer facilities; them time and money. • Technological intelligence . These performances have been achieved thanks to In summary, 2010 enabled the bank to strengthen a determined staff strongly committed to drive its capital base, profile and reputation both in their institution to the heights of excellence. The Cameroon and abroad, and to position itself as a Human Resource Department, mainspring of this key development partner at the service of the synergy of competences has during this period stri- enterprise , in particular, and the economy, in ven to: general. These achievements, far from constituting • Facilitating the integration of youths in the bank; a motive for self-glorification, are instead perceived • Providing new employees with a comprehensive as an urge for more efforts to be made so as to integration program; maintain customers’ and partners’ confidence. • Enhancing job place equality ; That is why in 2011, Afriland First Bank will act as a • Improving the working environment through an wealth and job creation driver, a financial tool to ergonomic organization and management impro- meet the needs of the economy. The following ini- vement of working space ; tiatives will translate this drive: • Promoting human capital development • modernization and extension of reception facili- • Promoting additional on the job technical skills ties; to enable employees cope with new developments • diversification of banking services combining RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 15

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speed, security and creativity; ments (stocks, bonds, OTC) of the Douala Stock ess nk

• support to the execution of strategic projects; Exchange; ucc Ba • Improvement of electronic banking services • increased risk management alertness, com- ith S ct w in their various forms (I-Card Plus, proprietary mitment control and ongoing portfolio analysis. rst cards, international cards); The implementation of this roadmap will The Pa • more sustained activity in various compart- usher in a much brighter future. iland Fi Afr

Retirement RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 16 RAPPORT BAFBVA2010xp610/09/119:10Page17 2010 F inancial R e por t

Afriland First Bank The Pact with Success RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 18

Financial 18 Report ess

nk I. Accounting principles ucc The financial statements were prepared in compliance with COBAC (Central African Banking Commission) Ba ith S principles and also in accordance with the Accounting Charter of Lending Institutions. ct w rst

The Pa The statements were established according to the historical cost principle applied to liabilities, debts and off-balance sheet liabilities. By exemption, certain liabilities redeemed at a discount from the state of iland Fi Cameroon were entered at par value. Afr Except where indicated otherwise, the figures herein are given in millions of CFA Francs.

II. Intangible assets Intangible assets mainly include patents and software for CFA F 2 056 million.

III. Tangible financial assets Tangible assets appear on the balance sheet at their purchase price and depreciation calculated using the straight-line method. the depreciation rates applied are those currently in force in Cameroon

In thousand CFA F

Description 31/12/2010 31/12/2009

Land 435 973 237 736 Banking real estate 2 831 204 2 831 204 Other buildings 2 015 716 1 698 783 Development and fitting/transport equipment 7 482 479 5 025 981 Office furniture and equipment 5 863 156 5 667 501 Other fixed assets 124 842 688 489 Equity investment 7 334 786 5 838 411 Government bonds and other securities 8 216 404 9 230 912 Other advances on current account 5 305 944 7 838 622 Total 39 610 504 39 057 639 Depreciations and provisions -9 024 210 -7 826 704 Net 30 586 294 31 230 935

'Other buildings' represent the value of buildings acquired through auction sales. The increase in 'Office furniture and equipment' and 'Development and fitting' is due to expenses incurred for the development of branches and the acquisition of computer equipment for newly created branches.

Equity investment increased by CFA F 1 496 million. This increase was largely due to the subscription of new shares in the capital of the STP affiliate and of Africa Leasing Company.

The drop in 'Government bonds and other securities' was as a result of the partial reimbursement of BMBC securities by the State.

IV- Customer Deposits In the aggregate, customer deposits recorded an 19.18 % increase. This consolidation of customer deposits mainly stems from an increase in term deposits and savings bonds of 52.21% and 28.62% respectively. RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 19

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In thousand CFA F ess nk ucc Ba ith S

31/12/2010 31/12/2009 ct w

Description rst

Savings bonds 74 617 166 58 013 138 The Pa

Term deposits 44 183 544 29 028 400 iland Fi Savings accounts 181 225 386 155 366 239 Afr Interest-bearing deposits 300 026 097 242 407 777 Sight deposits 124 563 278 114 900 774 Other customer creditors 19 176 380 14 393 103 Non interest-bearing deposits 143 739 658 129 293 876 Total 443 765 754 371 701 654

V- Credits to Customers The net volume of loans to customers recorded a 46.94% increase, mainly in long term and short term loans (35.95% and 95.59% respectively). In thousand CFA F

Description 31/12/2010 31/12/2009

Long and medium term loans 94 126 880 77 508 532 Short-term loans 165 410 531 84 592 153 Overdrafts 75 517 627 74 074 866 Provisions for depreciation (32 565 133) (30 309 249) Net total loans to customers 302 489 905 205 866 302

VI- Outstanding Bills This section includes all short-term notes and cheques deposited by customers or correspondents and presented by the Bank to the drawee bank pending credit advice from correspondents. In thousand CFA F

Description 31/12/2010 31/12/2009

Cheques for collection 1 693 735 757 347 Bills received from customers 73 434 248 208 Bills received from correspondents 4 294 589 3 268 632 Total 6 061 758 4 274 187

VII- Interbank transactions and Treasury: This section includes active reserves with the central Bank, foreign correspondents and local institu- tions, as well as cash holdings.

The 4.50% decrease in the outstanding cash position as compared to last year is due to the drop in time accounts, sight account and cash (by 45.12%, 36.89% and 10.78% respectively). RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 20

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In thousand CFA F ess nk ucc 31/12/2010 31/12/2009 Ba ith S Description ct w rst Short term loans and securities 78 301 842 45 052 044 The Pa Time accounts 14 759 831 26 894 173

iland Fi Sight accounts 44 280 013 70 273 018 21 655 747 24 273 031

Afr Cash Total 158 997 433 166 492 266

VIII - Sundry debtors, Prepayments and Accrued income (Assets): Suspense, prepayment and accrued income accounts are mainly transactions in transit, reciprocal and other suspense accounts, as of the accounting date. These transactions are settled in the course of the first month following the accounting date.

In thousand CFA F

Description 31/12/2010 31/12/2009

State and financial institutions 934 927 1031 104 Advance providers 229 528 431 222 Sundry debtors 1 808 120 3 822 000 Subsidiaries and branches - 641 127 Suspense and adjustment accounts 2 514 534 4 814 397 Total 5 487 109 10 739 849

IX- Capital and Reserves As at 31 December 2010, net equity recorded a 29.79% increase due to: - a CFA F 1 800 million capital increase; - allocation to reserves of part of the profits made as at 31 December 2010, that is CFA F 410 million; - carry forward of CFA F 1 501 million; - Provisioning of CFA F 3 535 million for general risks.

In thousand CFA F

Description 31/12/2010 31/12/2009

Share capital 12 500 000 10 700 000 Reserves/ Provision for risks 17 560 786 13 615 289 Carry forward 1 507 420 6 509 Net equity 31 568 206 24 321 798 Debt revaluation surplus 2 249 954 3 188 030 Long and medium term loans Capital and reserves 33 818 160 27 509 828 RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 21

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X - Sundry creditors, Prepayments and Accruals (Liabilities) nk ucc Ba This section records an 83.81% increase due to the volume of suspense accounts and State’s debt as at ith S ct w accounting date. rst In thousand CFA F The Pa

Description 31/12/2010 31/12/2009 iland Fi Afr Suppliers 101 248 56 703 States 1 992 706 276 679 Sundry creditors 1 289 066 1 350 883 Suspense and adjustment accounts 2 241 701 1 375 798 Total 5 624 721 3 060 063

XI – Profits A CFA F 7 117 million profit before tax was recorded as against CFAF 5 868 million as at 31 December 2009, that is, a 21.28% increase. This result mainly resulted from the bank margin and non-recurring profit which increased by 35.38% and 2637.95% respectively.

In thousand CFA F

Description 31/12/2010 31/12/2009

Banking margin 23 723 982 17 524 361 Operating profit 5 749 099 5 922 169 Non-recurring profit 1 367 825 -53 895 Profit before tax 7 116 924 5 868 274 Net profit 4 212 838 5 510 911 RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 22

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ess BALANCE SHEET nk ucc In thousand CFA F Ba ith S ct w rst The Pa ASSETS 31/12/2010 31/12/2009 iland Fi Afr Net total assets 31 024 697 31 590 742 Loans to customers 335 055 038 236 175 551 Provisions (32 565 133) (30 309 249) Net loans to customers 302 489 905 205 866 302 Adjustment and sundry accounts 5 487 109 10 739 849 Interbank and treasury transactions 165 059 190 170 766 453 Total assets 504 060 901 418 963 346

In thousand CFA F

LIABILITIES 31/12/2010 31/12/2009

Share capital 12 500 000 10 700 000 Reserves/ Provisions for risks 17 560 786 13 615 289 Carry forward 1 507 420 6 509

Year’s profit 4 212 838 5 510 911 Shareholders' equity 35 781 044 29 832 709 SMT loans Other Capital and reserves 2 249 954 3 188 030 Capital and reserves 38 030 998 33 020 739 Customers' deposits 443 765 754 371 701 654 Adjustments and sundry 5 624 721 3 060 063 Treasury transactions 16 639 428 11 180 890 Total liabilities 504 060 901 418 963 346

In thousand CFA F

OFF BALANCE SHEET ITEMS 31/12/2010 31/12/2009

Commitments in favour of customers 50 345 756 52 855 379 Commitments received from correspondents 8 580 232 8 580 232 RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 23

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PROFIT AND LOSS ACCOUNT ess nk ucc Ba In thousand CFA F ith S ct w rst

PROFIT AND LOSS ACCOUNT 31/12/2010 31/12/2009 The Pa iland Fi Income from loan transactions 25 651 175 18 273 123 Afr Charges on loan transactions 8 652 047 7 356 554 Margin on customer transactions 16 999 128 10 916 569 Income from treasury transactions 607 593 668 015 Charges on treasury transactions 30 909 -1 364 102 Margin on treasury transactions 576 684 -696 087 Sundry bank commissions and income 6 148 170 7 303 879 Bank margin 23 723 982 17 524 361 Sundry income 2 449 777 2 147 878 Additional income 1 311 306 5 398 903 Total sundry income 3 761 083 7 546 781 Materials and equipment 1 644 544 1 504 678 Transport expenses 250 897 242 060 Other services consumed 5 105 127 4 270 211 Miscellaneous expenses and losses 4 044 901 3 058 447 Personnel expenses 3 195 689 2 662 188 Duties and taxes 81 378 164 523 General operating expenses 14 322 535 11 902 107 Gross operating profit 13 162 530 13 169 035 Depreciation 1 344 523 1 224 206 Provisions 6 068 909 6 022 660 Depreciation and provisions 7 413 432 7 246 866 Net operating profit 5 749 099 5 922 169 Non operating income 1 388 973 218 326 Non operating expenses 21 148 272 221 Net non operating profits 1 367 825 -53 895 Profit before tax 7 116 924 5 868 274 Corporate income tax 2 904 085 357 363 Net profit 4 212 838 5 510 911 RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 24 RAPPORT BAFBVA2010xp610/09/119:10Page25 Sta tutor 2010 y A uditor’ s GeneralReport

Afriland First Bank The Pact with Success RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 26

Statutory Auditor’s 26 General Report

ess STATUTORY AUDITORS’ GENERAL REPORT nk ucc Year ended 31 December 2010 Ba ith S ct w rst To the shareholders of Afriland First Bank Yaoundé The Pa

iland Fi In keeping with the assignment entrusted to us by your General Assembly, we hereby present to you our

Afr report for the financial year ending on 31 December 2010, which includes:

• An audit of Afriland First Bank’s financial statements drawn up in CFA F, a copy of which is attached hereto • Specific verifications and information as required by the law.

The annual accounts audited have been prepared under the supervision of the Board of Directors. Our duty is to give our opinion on these financial statements, based on our audit.

1. OPINION ON THE ANNUAL ACCOUNTS We conducted our audit on your bank's annual accounts in keeping with professional standards applicable in Cameroon, under the provisions of Article 710 of the OHADA Uniform Act on commercial companies and EIGs and of CEMAC Act no. 11/01 of 5 December 2001. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the annual accounts are free from material misstate- ment. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estima- tes made by the management, as well as evaluating the overall annual accounts presentation. We believe that our audit provides a reasonable basis for our opinion as provided below.

We hereby certify that the financial statements of the year ended 31 December 2010 prepared in accordance with the accounting rules and principles in force in Cameroon and applied on a consistent basis, portray regularity and sincerity, and thus give a true and fair view of results for the accounting period ended as well as of the bank's financial position and assets.

Without calling to question the opinion expressed above, we would like to draw your attention to the follo- wing issue:

Amendment of the 2009 financial statements

To account for a tax deferral on some income received from foreign subsidiaries for the year ended 31 December 2009, a Board of Directors’ meeting was held on 04 August 2010 to amend the 2009 financial sta- tements, after they had been approved by the Annual General Meeting of 17 May 2010. Such amendment has generated an additional income of CFA F 1.504 million to be integrated in the capital by the combined General Meeting scheduled for today.

2. SPECIFIC VERIFICATIONS AND INFORMATION In accordance with professional standards, we have also conducted specific verifications as provided by the law and therefore bring to your attention the following: RAPPORT B AFB VA 2010 xp 6 10/09/11 9:10 Page 27

27

2 . 1 COBAC prudential ratios not complied with ess nk - COBAC Regulation No. R-2001/02 on Risk Coverage Ratio ucc Ba ith S

As of 31 December 2010, the bank’s risk coverage ratio is about 7%, against a minimum standard of 8% ct w rst prescribed by COBAC. - COBAC Regulation No. R-2001/03 on Risk Diversification The Pa iland Fi

This regulation requires banks to maintain a minimum ratio of 45% between the overall risk exposure Afr with regard to commitments to a single borrower and its net equity as well as a maximum ratio of 800% between the overall amount of large exposures and its net equity. As of 31 December 2010, the require- ment with regard to a single borrower has not been met as concerns SONARA which ratio is 69%.

2 . 2 COBAC Regulation No. R-2003/01 the COBAC regulation R-2003/01 on the organization of the accounting system of lending institutions which came into force on 31 December 2003 compels banks to present their accounts in keeping with the OHADA accounting principles. The regulation provides that, in addition to the balance sheet and nominal accounts, a financial table be enclosed including a statement of assets and liabilities. Specifications as to their implementation are still expected from COBAC. Consequently, as is the case with all other banks in Cameroon, financial statements are modeled on the CEMAC sectorial plan of lending institutions.

2 . 3 Consolidated accounts The OHADA Accounting System provides under Article 74 that: “Any undertaking which has its registered office or main business in a Signatory State and which exclusively or jointly controls, or exerts a signifi- cant influence over one or more other undertakings, shall each year draw up and publish consolidated financial statements for the group constituted by all those undertakings, as well as a management report for that group”. The consolidated financial statements of all the companies under your control are not yet available.

with the exception of any potential impact of the facts described above, we have no matters to report regarding the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors and in the documents addressed to the sha- reholders with respect to the financial position and the financial statements. Yaounde, on 14 April 2011

The Statutory Auditors

Deloitte & Touche Afrique Centrale Cabinet Hubert Feze

Nemesius Mouendi Mouendi Hubert Feze Associate CEMAC Chartered Accountant CEMAC Chartered Accountant RAPPORT BAFBVA2010xp610/09/119:10Page28

Afriland First Bank The Pact with Success T el. :(237)22233068 •F W ebsite :www E-mail :fir stbank@afrilandfir ax :(237)22239155 •CallF .afrilandfir stbank.com stbank.com irst :8050 irst Network National PLAQUETTE VA 10/09/11 18:37 Page 1

Cameroon 23 branches Afriland First Bank Zambia Equatorial 6 branches Guinea Group is a full service bank 7 branches operating in Sub-Saharan Africa. SYNERGY The bank was founded in * Liberia Yaoundé in 1987. The bank 1 branche Sao Tome (Since March 2011) e Principe benefits from the significant 5 branches

Democratic growth of the region since a cou- Republic of Congo ple of decades. 6 branches

Large network of subsidiaries

African Know-how Corporate Banking Institutional Banking Personal & Small • Working Capital Facilities • Investments & Placements Business Banking identity and results • Long Medium and Short • Money & Forex Markets • Account & Payment Term loans • Fund Management Services • Export Finance ; Project Individuals • Saving & Investment Finance Products • Faactoring / Bill Disounts • Cheques / Credits Cards • Guarantees • Personal, Executive and • Bid Bonds Business loans • Cash Pick Service / Payroll Management

# 1 Private owned and private sector oriented bank Adequacy : Culture / Tradition / Poverty

# 1 innovate bank in the sub-region

Microfinance : Innovativ Special tools : 2 Islamic Deposits MC Solutions : Rural Development # 1 in liquidity position Flash Cash & Microbank I-card MUFFA Women Savings and Loan Cooperative, Steaddily growing developed on network of national and MC2 Approach regional branches and subsidiaries PLAQUETTE VA 10/09/11 18:37 Page 2

# 1 Private owned and private sector oriented bank

In thousands of euros

# 1 innovate bank in the sub-region

# 1 in liquidity position

Steaddily growing network of national and regional branches and subsidiaries