ACCESS BANK PLC ANNUAL REPORT AND ACCOUNTS 2013 CONTENTS Welcome 1 3. GOVERNANCE Speed, Service and Security 2 The Board 68 Directors, Officers and Professional Advisors 74 1. OVERVIEW Management Team 75 Business and Financial Highlights 10 Directors’ Report 78 At a Glance 12 Corporate Governance 83 Locations and Offices 14 Directors’ Responsibilities 92 Chairman’s Statement 14 Customer Complaints Feedback 94 Chief Executive’s Review 16 4. FINANCIAL STATEMENTS 2. BUSINESS REVIEW Statement of Financial Position 96 Corporate Philosophy 22 Statement of Comprehensive Income 97 Reports of the External Consultant 23 Consolidated Statement of Changes in Equity 98 Commercial Banking 24 Consolidated Statement of Cash Flows 102 Business Banking 26 Notes to the Financial Statements 104 Personal Banking 28 Corporate and Investment Banking 30 5. SHAREHOLDER INFORMATION Transaction Services and Settlement Banking 34 Shareholder Engagement 222 Retail Operations Group 35 Notice of AGM 223 IT Services 36 Explanatory Notes to the Proposed Resolutions 224 Our People, Culture and Diversity 37 Capital Formation 226 Sustainability Report 38 e-dividend Mandate Form 227 Risk-Management 41 Shareholder Information Update Form 229 Proxy Form 231 6. CORPORATE INFORMATION Head Office Address 238 Branch Distribution 238 ATM Locations 244 Subscribers’ Addresses 249 WELCOME We are making progress in our journey towards becoming the world’s most respected African bank. The journey has been exciting and has elicited more commitment to delivering our brand promise – to serve our customers with Speed, Service and Security. Accordingly, we are transforming the Bank operationally and culturally, with a view to making banking with Access Bank as convenient as possible for every one of our customers. Access Bank makes and delivers a simple and compelling promise to each and every customer. Our principles, our processes and our products are directed towards delivering Speed, Service and Security to customers. SPEED SERVICE SECURITY Rapid response and quick Service matters to our Security is fundamental to access to advice, information customers, and expectations customers. They need to be and products are important to have risen dramatically. able to trust us to manage their all customers. Service is both a qualitative and finances responsibly. 95% of Our ability to translate effective quantitative measure: it is as customers say that security is governance and leverage much to do with how customers the most important factor in employees’ competence to feel as how long they have to choosing and banking with us. deliver swift and appropriate queue. responses to customers is a Our customers appreciate that significant competitive we treat everyone with respect advantage. and consideration. Access Bank Plc Annual Report and Accounts 2013 1 2 Access Bank Plc Annual Report and Accounts 2013 CUSTOMERS DESIRE SPEED We pledge to develop products and invest in technology which deliver the benefits of speed. Access Bank Plc Annual Report and Accounts 2013 3 CUSTOMERS DESERVE SERVICE We commit to understanding and respecting our customers and providing world-class service. 4 Access Bank Plc Annual Report and Accounts 2013 Access Bank Plc Annual Report and Accounts 2013 5 CUSTOMERS DEMAND SECURITY We undertake to earn complete customer confidence through stability and security. 6 Access Bank Plc Annual Report and Accounts 2013 1 OVERVIEW A brief review of Access Bank’s financial and operational achievements in the past year. Business and Financial Highlights 10 Locations and Offices 12 Chairman’s Statement 14 Chief Executive’s Review 16 Access Bank Plc Annual Report and Accounts 2013 9 1. OVERVIEW BUSINESS AND FINANCIAL HIGHLIGHTS In the evolution of its corporate strategy for 2013–2017, the Bank has identified and commenced cultivation of business areas that will guarantee steady earnings in conformity with its sustainable growth agenda. The Bank has embarked on aggressive re-activation of accounts within its retail customer base and focuses concurrently on financing the needs of its corporate and commercial customers. Gross Earnings Shareholders’ fund N’billion N’billion -0.10% +1.33% 2013 206.8 2013 244.4 2012 207.1 2012 241.2 2011 135.6 2011 192.1 Profit before tax Profit after tax N’billion N’billion -3.31% -16.37% 2013 44.9 2013 37.4 2012 46.5 2012 44.8 2011 24.1 2011 17.1 10 Access Bank Plc Annual Report and Accounts 2013 • 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; and • In deploying products and services, Access Bank adheres to responsible business practices and readily commits resources to social investments in fulfilment of its Corporate Social Responsibility convictions. To find out more visit www.accessbankplc.com Total deposits Loans N’billion N’billion +10.81% +33.21% 2013 1,331.4 2013 810.7 2012 1,201.4 2012 608.6 2011 1,101.7 2011 577.0 Total assets N’billion +5.16% 2013 1,835.4 2012 1,745.4 2011 1,629.0 Access Bank Plc Annual Report and Accounts 2013 11 1. OVERVIEW LOCATIONS AND OFFICES 8 6 3 1 5 7 2 4 12 Access Bank Plc Annual Report and Accounts 2013 We are one of the largest banks in We take pride in our ability to add value to clients, leveraging our unique value proposition to provide Nigeria and serve over 6 million innovative and proactive solutions across entire customers from 345 branches. economic value chains. In deploying products and services, the Bank adheres to responsible business The Bank is licensed to carry out international practices and readily commits resources to social banking services and provides a comprehensive investments in fulfilment of its corporate social range of financial services. The key business responsibility convictions. 8 segments of the Bank are: Institutional Banking, Commercial and Consumer Banking, Financial We are located in all major commercial centres and Banking and Private Banking. The key customer cities across Nigeria, six other African countries and segments include: Telecommunications, Beverages, the United Kingdom. Manufacturing, Construction, Oil & Gas, Parastatals, For more about the Bank’s sustainable business High Net Worth Individuals and Middle Income practices, visit www.accessbankplc.com Professionals. 1. Nigeria 5. Ghana Number of branches 345 Number of branches 32 Total staff 11,670 Total staff 757 Number of accounts over 6,000,000 Number of accounts 200,410 2. Rwanda 6. The Gambia Number of branches 7 Number of branches 5 Total staff 159 Total staff 133 6 Number of accounts 16,052 Number of accounts 50,971 3. Sierra Leone 3 1 Number of branches 4 7. Democratic Rep. of Congo Number of branches 2 5 Total staff 86 Total staff 79 Number of accounts 11,771 Number of accounts 48,070 4. Zambia 8. United Kingdom 7 Number of branches 5 Number of branches 3 2 Total staff 126 Total staff 83 Number of accounts 16,193 Number of accounts 1,369 4 Access Bank Plc Annual Report and Accounts 2013 13 1. OVERVIEW “ In 2013, we were able CHAIRMAN’S to make significant progress in our journey STATEMENT to transforming the Bank into a customer- focused and results- oriented institution.” GBENGA OYEBODE, MFR, CHAIRMAN 2013 was a turning point in the growth and consumption rather than exportation in order to development of Access Bank. Following a drive a more sustainable growth path. significant level of research into the Nigerian In the East, India’s ageing infrastructure and banking environment the Bank launched its difficult investment terrain has taken a toll on its mid-term strategy for 2013-2017 which will see us economy. India, Brazil, Turkey, Indonesia and South become the world’s most respected African bank. Africa inadvertently also faced market volatility as In the meantime, the Bank also successfully ushered investors’ confidence weakened and funds were in a new management team as our CEO of ten years, withdrawn from those economies. Nonetheless, Aigboje Aig-Imoukhuede, retired in December 2013, the IMF anticipates emerging markets to remain handing over the baton to Herbert Wigwe, his Deputy. strong on their growth trajectory, expanding as much as four times in 2014 in comparison with Herbert has a deep understanding of the Bank’s advanced countries. operations and has been an integral part of the team that has built the Bank from number 65 in 1992 to its Domestic environment current Top tier-1 position in Nigeria. This marks the Nigeria’s GDP grew by 7.67% in the fourth quarter beginning of a new chapter for Access Bank, which of the year, with strong support from agriculture, we believe will continue to grow. services and trade. Inflation remained in single digits, amounting to 7.8% in 2013 and remaining well below Global environment the Central Bank of Nigeria’s 10% ceiling due to lower Overall global economic performance improved in food prices and monetary policy. On the other hand 2013 as momentum picked up in the US, the crude oil underperformed due to oil theft and Eurozone and Japan. We all saw calculated stimulus production losses. Nigeria, according to the IMF, is packages and lowered interest rates across board. adequately poised to react to systemic shocks with The improvement in economic climate drove a gain a well-managed exchange rate regime and stable in traction in markets, which in turn boosted job banking system. Macroeconomic policies to stabilise creation and developments in the housing sector. the Naira were issued by the CBN in 2013, including Due to the slow recession recovery process, increase in CRR which undoubtedly placed the IMF urged the Eurozone to shed financial constraints on earnings from the banking sector.