Access Bank Plc Annual Report and Accounts 2012 Leadership Responsibility Performance Contents Overview Pg 15 Chief Executive’s Building Africa’s most respected Bank 01 Review Business and Financial Highlights 08 At a Glance 10 Locations and Offices 12 Chairman’s Statement 14 Chief Executive’s Review 15 Business Review Corporate Philosophy 16 Reports of the External Consultant 17 Retail Banking 18 Commercial Banking 20 Institutional Banking 22 Financial Markets 24 Transaction Banking 26 IT Services 28 Our People, Culture and Diversity 30 Corporate Social Responsibility 32 Managing Risk for a Sustainable Future 38 Governance Board of Directors 81 Directors, Officers and Advisors 85 Management Team 86 Pg 18-19 Directors’ Report 88 Retail Banking Directors’ Responsibilities and Statutory Audit Committee Report 95 Corporate Governance 96 Financial Statements Independent Auditor’s Report 105 Consolidated Statement of Financial Position 106 Consolidated Statement of Comprehensive Income 107 Pg 20-21 Consolidated Statement of Commercial Changes in Equity 108 Banking Statement of Cash Flows 114 Notes to the Group Financial Statements 116 Statement of Significant Accounting Policies 119 Value Added Statement 186 Five-Year Financial Summary – Group 186 Shareholder Information Notice of Annual General Meeting 188 Explanatory Notes to the Notice Pg 26-27 Transaction of Annual General Meeting 189 Banking Division Capital Formation History 191 E-dividend Mandate Form 193 Shareholder Information Update Form 195 Proxy Form 197 Corporate Information Corporate Directory 198 Pg 32-37 Corporate Social Responsibility Welcome to Access Bank Overview As we pursue our vision to be the most respected bank in Africa, we are experiencing an exciting period of development. We are determined to show true leadership, take responsibility for delivering positive outcomes to our Stakeholders, and be the very best in all that we do. See pages 02-03 Leadership For further information We apply international best practice, pioneer new standards, break new ground and challenge the status quo. We are determined to build the most respected bank in Africa. See pages 04-05 Responsibility For further information We see it as our duty to help grow local communities and the real economy. We are determined to balance economic, environmental and social considerations in our work. See pages 06-07 Performance For further information We surpass our targets, set new records and create new values in our industry and beyond. We have overcome many hurdles and are the best in all that we do. Access Bank Plc Annual Report and Accounts 2012 01 Leadership We are focused on creating a responsible financial At Access Bank we translate organisation that will be the pride of Africa. Pages 14-16 vision into reality. We are For further information focused on leading by example throughout Africa. We apply international best practice, pioneer new standards, break new grounds, cross new frontiers and challenge the status quo. We are determined to be the best and build the most respected bank in Africa. Our goal is to secure the future by building a sustainable business that brings prosperity to our Stakeholders and the African continent. 02 AccessAccess Bank Bank Plc Plc Annual Annual Report Report and Accounts Accounts 2012 2012 Overview Access Bank Plc Annual Report and Accounts 2012 03 04 Access Bank Plc Annual Report and Accounts 2012 Responsibility Overview As a responsible organisation, we have aligned the way we As a bank of best practice, we have manage our environmental impacts with global best environmental standards. a responsibility to the society. We Pages 32-37 see it as our duty to help grow local For further information communities and the real economy through the provision of capital, which in turn drives infrastructure development, creates jobs, and enables companies and individuals to purchase goods and do business every day. We are determined to drive profitable and ethical economic growth that is environmentally responsible and socially relevant. We will be a force for good in all that we do. We take personal responsibility for delivering outcomes to our respective stakeholders. We are fully committed to our day-to-day actions and business decisions, and remain determined to balance economic, environmental and social considerations in our work. Access Bank Plc Annual Report and Accounts 2012 05 Performance Our commitment to supporting economic growth is as strong as ever. We have consistently surpassed Pages 24-27 our targets, set new records For further information and created new values in our industry and beyond. We embody the change we want to see and have continuously created new opportunities to secure the prosperity of the Bank and its stakeholders. We have also mastered our operating environment and benchmarked our goals against the best. We have overcome many hurdles and are proud of our unique achievements. We are the best in all that we do. 06 Access Bank Plc Annual Report and Accounts 2012 Overview Access Bank Plc Annual Report and Accounts 2012 07 Business and Financial Highlights Following our emergence as one of Nigeria’s largest Banks, we have grown in operational ability and enhanced our capacity to deliver superior returns to stakeholders. This is evidenced by the gradual but steady increase that characterises our performance and the tenacity behind our vision of building the world’s most respected African Bank. Our sustainable banking model has continued to nurture our profitability and growth. Gross earnings Shareholders’ fund N’billions N’billions +53.6% +25.5% 2012 208.3 2012 241.0 2011 135.6 2011 192.1 2010 90.6 2010 164.6 Profit before tax Profit after tax N’billions N’billions +86.3% +150.9% 2012 44.9 2012 42.9 2011 24.1 2011 17.1 2010 12.6 2010 7.7 08 Access Bank Plc Annual Report and Accounts 2012 Overview • Access Bank Plc is a full service commercial and retail bank with headquarters in Nigeria and operations across sub-Saharan Africa and the United Kingdom. • It was incorporated in February 1989 as a privately owned financial institution and commenced banking operations in May 1989. • It was listed on the Nigerian Stock Exchange in 1998. • The Bank demonstrates exemplary performance in its financial and non-financial disclosures. • In deploying products and services, Access Bank adheres to responsible business practices and readily commits resources to social investments in fulfillment of its Corporate Social Responsibility convictions. To find out more visit www.accessbankplc.com Total deposits Loans N’billions N’billions +4.6% +5.5% 2012 1,306.7 2012 608.6 2011 1,249.5 2011 577.0 2010 554.6 2010 448.4 Total assets Treasury bills N’billions N’billions +7.1% -19.6% 2012 1,745.2 2012 52.1 2011 1,629.0 2011 64.8 2010 796.2 2010 41.6 Access Bank Plc Annual Report and Accounts 2012 09 At a glance Retail Banking Commercial Banking The Retail Banking Division The Commercial Banking currently serves a global Division is made up of three customer base of more distinctive market segments: than 4 million. commercial banking, public sector and wealth management. Total assets Total assets N’billion N’billion N30.3bn N495.0bn -16.8% -26.8% Profit before tax Profit before tax N’billion N’billion N2.8bn N25.6bn +115.4% +46.3% Highlights Highlights • The Retail Banking Division recorded an • The nature of our transactions exceptionally strong performance in 2012 and in 2012 demonstrated our commitment achieved dramatic growth in gross earnings to projects, especially in Nigeria, that are and profit before tax. not only economically viable but also socially relevant and environmentally friendly. • The merger with Intercontinental Bank delivered a significant increase in the customer base • We are proud to be associated with the against the previous year from 1.5 million in provision of finance for Eko Atlantic, a new 2011 to 4 million in 2012. city under construction off Bar Beach, Victoria Island, Lagos. Products offered Personal accounts: Target markets Savings, current, investment Individuals, Trading, Manufacturing, Hospitality, Schools/Educational, Institutions, HNI/UHNI, Credit products: Real Estate, Bureau de Change, Security & Loans, advances, mortgages, asset finance, Armoury, Asset Management, Information small business loans, credit cards Technology, Transportation, Partnerships/ e-business: Professional Internet banking, mobile banking, merchant services, customised corporate solution Pages 18-19 Pages 20-21 For further information For further information 10 Access Bank Plc Annual Report and Accounts 2012 Overview Institutional Financial Banking Markets The Institutional Banking The Financial Markets Division serves a variety of Division provides specialised industry sectors including oil financing and investment & gas; telecommunications solutions through our and food & beverages. Treasury, Corporate and Financial Institutions Groups. Total assets Total assets N’billion N’billion N933.1bn N195.9bn +102.0% -15.2% Profit before tax Profit before tax N’billion N’billion N11.1bn N5.1bn +655.0% -1.9% Highlights Highlights • The Institutional Banking Division took strategic • The Treasury Group focus now is to expand on steps during the year to enhance its business by the success of our online FX trading solution by realigning operations with the latest changes deploying it to a wider client base. This will help within the Bank and the wider banking industry. the Bank raise its profile within the wider African banking industry. • The Division