Building African Champions The role of Capital Markets Arnold EKPE CEO, Ecobank Transnational Incorporated 16 October 2012

Contents 2 1The emergence of African capital markets 2Building an African Banking Champion © Ecobank Group | African Champions | October 2012

3 Section 1 The emergence of African capital markets

Building African Champions: From Local to Regional Powerhouses 4 © Ecobank Group | African Champions | October 2012

Building African Champions: From Regional to Global Challengers 5 © Ecobank Group | African Champions | October 2012

Key benefits 6 Key benefits of capital markets in building African Champions : Channelling resources into productive investments Solution to finance cross border expansion Provide financial flexibility Help broaden participation in company ownership Increase visibility Help improve governance and financial reporting standards © Ecobank Group | African Champions | October 2012

7 Section 2 Building an African Banking Champion

8 Building A Pan-African Banking Platform Formative Phase Initial Expansion Phase Secondary Expansion Phase Recent Expansion Phase International Expansion Optimisation  Enjoy status of an International Financial institution  Shareholders include EBID (formerly ECOWAS Fund) 12 countries in Africa Founded in 1985 in Togo with shareholders from 10 African countries From countries in Africa5 more countries 1.Benin 2.Cote d’Ivoire 3.Ghana 4.Nigeria 5.Togo 6.Burkina Faso 7.Cameroon 8.Guinea 9.Liberia 10.Mali 11.Niger 12.Senegal  Performance  Risk management and controls  Customer service and Sales  Technology and Process Improvements  Capacity building 13.Burundi 14.Cape Verde 15.Central African Rep 16.Chad 17.Congo 18.D.R. Congo 19.Gabon 20.Gambia 21.Guinea Bissau 22.Kenya 23.Malawi 24.Rwanda 25.Sao Tome 26.Sierra Leone 27.South Africa 28.Tanzania 29.Uganda 30.Zambia 31.Equatorial Guinea 31.Angola 32.Dubai (UAE) 33.France 34.UK 35.Zimbabwe 1.Mozambique 2.South Sudan 3.Madagascar 4.Ethiopia 5.USA (rep. office) 6.China (rep. office) Focus on5 countries in Africa 6 more countries  Shareholders include IFC and Prince Al- Waleed Chad, Central Africa Republic, Rwanda, Malawi, Kenya, Burundi, Zimbabwe: markets entered through an acquisition Nigeria, and Burkina Faso: markets where acquisitions have been used to enhance growth © Ecobank Group | African Champions | October 2012

9 Becoming The Dominant Bank in Middle Africa Built the platform Develop scale in key markets Growth acceleration 32 countries in Africa Strong organic growth Over 14 acquisitions in the last 5 years: -Nigeria (Oceanic Bank – 2011) -Ghana (TTB – 2011) -Burkina Faso (BACB ) -Kenya (EABS – 2008) -Central Africa Rep. (BICA ) Focus on performance: risk management, customer service and capacity building. Optimise balance sheet: diversify funding sources and optimise capital allocation Develop key businesses Proactive inorganic opportunities 6 countries to go Exploit international opportunities Capture efficiency and process improvements through centralized processes and outsourcing Investment in key growth drivers Enhance profitability and operating efficiency © Ecobank Group | African Champions | October 2012

Progress towards top 3 (1) Building Scale 1.Burkina Faso 2.Chad 3.CAR 4.Ghana 5.Guinea 6.Liberia 7.Mali 8.Togo 9.Benin (No.2) 10.Cote d’Ivoire (No.2) 11.Guinea Bissau (No.2) 12.Sao Tome (No.3) 13.Rwanda (No.3) 14. Burundi (No. 4) 15. Gabon (No. 4) 16. Niger (No. 4) 17. Senegal (No. 4) 18.Cameroon (No. 5) 19. Congo B. (No.5) 20. Gambia (No. 5) 21. Sierra Leone (No. 5) 22. Nigeria (No. 6) 23. Cape Verde (No. 7) 24. DRC (No. 9) 25. Malawi (No. 10) 26. Zambia (No. 16) 27. Uganda (No. 16) 28. Zimbabwe (No.17) 29. Kenya (No. 17) 30. Tanzania (No.28) No. of Markets in which we are: No. 1Top 3Top 10Not yet Top 10 Ecobank operations in these countries are under 3 years Chart is cumulative (1) Ranked using total assets © Ecobank Group | African Champions | October

Simple strategy; Value focused Build on Middle Africa dominance Grow assets Aim to be top 3 in all markets ‘One Bank’ model drives efficiencies Single IT platform and shared services Centralized Risk management Disciplined on expenses Diversification along geography, businesses and products to reduce overall risk to growth Focus on revenue growth Selectively increase the loan book Invested in branches & alternate delivery channels Win customers © Ecobank Group | African Champions | October

Prospects for long term growth remain strong Focus on Middle Africa Middle Africa: SSA ex RSA is a fast growing and under-banked region with 44 countries, 780mn people and $1 trillion in GDP SSA GDP growth forecast to outpace growth of World and Advanced Economies FDI up six-fold in past decade; forecast to reach $150bn by 2015 Middle Africa holds 10% of the World’s oil reserves Mineral resource-rich: 40% of gold reserves 80-90% of chromium & platinum Growing intra- Africa trade (currently c.11% with huge unrecorded cross-border trade – c.10%) Emerging middle class: 60m households have income >3k pa, expected to rise to 100m by 2015 © Ecobank Group | African Champions | October

13 One rationalized core banking system Centralized telecommunications platform Standard and independent risk processes Centralized procurement: taking advantage of economies of scale Central data centres Building Efficiency At The Core Of Our Business Our ‘One Bank’ concept © Ecobank Group | African Champions | October 2012

World class partners extend capabilities and customer reach Strategic alliances Airtel for mobile banking opportunities across 14 African countries in which we jointly operate Collaboration with Mastercard to bring their payment solutions to the Continent The Ecobank Nedbank alliance offers clients a ‘One Bank’ experience across Africa with more than 1,500 branches in 35 countries. And provides tailored banking and business advisory solutions to clients with a view to growing and doing business in Africa International trade and investment pact with Bank of China providing dedicated China desks in key African locations Microfinance services in key African countries with Accion Leverage Ecobank’s distribution network to offer life assurance, pension fund administration and unit trust management in conjunction with Old Mutual © Ecobank Group | African Champions | October

15 Leading pan-African full service banking group Present in 33 African countries, more than any other bank Vision to be world class and operates to international standards – reports in US$ and in line with IFRS. Compliant with IFC corporate governance principles Total assets of $17.8 billion, over 9 million customers, more than 1,200 branches, +2,000 ATMs and 18,000+ employees Listed on 3 stock exchanges: NSE, GSE and BRVM Serving More African Countries Than Any Other Bank Ecobank Today © Ecobank Group | African Champions | October 2012

16 Key Competitive Advantages The largest network across Middle Africa Full service banking operation (Cards, Mobile Banking,…) Pan-African ethos and culture Diversification provides consistent profitability Continue organic and inorganic growth plans World class strategic partnerships Focus on performance and risk management Corporate Governance: US$ and IFRS reporting, IFC Corporate Governance Guidelines Listed on 3 stock exchanges Positioned for sustained growth © Ecobank Group | African Champions | October 2012

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