1. LONDON 30OCT2013 TRADE & INVESTMENT FORUM UK-COTE DIVOIRE PERSPECTIVES ON BANKING AND FINANCE

2. 2 MACRO ISSUES THE OPORTUNITIES ARE CLEAR TO SEE There have been challenges. Lets not dwell on them now This months feedback from the IMF is more interesting.... Macroeconomic performance in the first half of 2013 was better than expected, with continued strong gross domestic product (GDP) growth, and moderate inflation despite increases in some food product prices.... Clear progress has also been made in the implementation of structural reforms, especially to improve the business climate and strengthen the energy sector.... Clear progress has also been made in the implementation of structural reforms, especially to improve the business climate and strengthen the energy sector Forecast growth is very strong, whoever you listen to :- Growth (Real GDP % change) 201220132014 Government Forecasts9.8 9.1 IMF Forecasts9.88.58.0

3. 3 MACRO ISSUES FOREIGN DEBT / BANKING SECTOR Given concerted effort, debt now appears manageable.. Arrears cleared up with external creditors Private creditors agreed a combination of rescheduling and new money The price recovered from 35% in March 2011 to as high as 97.4% since Banking sector is in recovery mode Legacy of non-performing loans but relatively well provisioned Capital-adequacy ratios remain above the prudential threshold African Development Bank is returning to its rightful home Source : Bloomberg 29/10/2013..and the market agrees

4. 4 IVORIAN BANKING SECTOR REGULATORY ENVIRONMENT Banque Centrale des Etats de lAfrique de lOuest (BCEAO) Banks in Cote dIvoire come under the prudential supervision of the Banque Centrale des Etats de lAfrique de lOuest (BCEAO) which is Headquartered in Dakar West African Economic and Monetary Union BCEAO is integral to the West African Economic and Monetary Union - WAEMU Economic and monetary union across 8 states Fomenting stability and market discipline Single currency Member Countries of WAEMU Source : BCEAO website Diamond Banks technology platform makes banking operations seamless between the four WAEMU states in which it operates today

5. 5 EXPORT TRADE IMPORT AND CURRENCY CONTROLS >The XOF is pegged to the Euro The link has been clear and steadfast over many years as the chart opposite shows Source : OANDA (January 2009 – date) >Whilst the peg is not a BCEAO-wide solvency guarantee Contracts can be negotiated with some price certainty and for imports priced in, eliminate hedging costs XOF is a managed currency. The importers bank (wherever situated in WAEMU) must wait for BCEAO to release FX. Banks can help here IMPORT CONTROLS IMPORT CONTROLS There are clear rules which must be adhered to governing what can be imported and the forms that need to be filled in. CENTRALISED MANAGEMENT OF FOREIGN EXCHANGE

6. 6 IVORIAN BANKING SECTOR OFFSHORE >DBUK is a UK company with its own capital and governance arrangements >It was the first bank to be authorised by the new UK Prudential Regulation Authority (PRA) >DBUKs parent is one of 8 systemically important banks operating in Nigeria, public quoted, profitable and growing strongly Côte dIvoire UK >Focus on retail expansion in its home market and international presences in Benin, Senegal, Togo and of course Côte dIvoire and the UK Côte dIvoire core niche market >For DBUK Côte dIvoire is a core niche market >Our Ivorian value proposition is set out in one of the flyers that can be picked up at our stand Several of the Ivorian Banks have associates operating offshore although very few banking groups have a full presence in both Abidjan and London.

7. 7 STRUCTURED SITUATIONS STRUCTURED TRADE Agri commodity financing Very big business Valuable and desirable export crops Well established financing mechanisms to cover annual trade cycle Financing farmers locally Using crop to secure loans against assigned contracts or spot market sales to global commodity firms Other Commodities (e.g. oil) Similar arrangements and with financing linked to underlying trade cycle for product

8. 8 STRUCTURED SITUATIONS FUNDING FOR INVESTMENT Long lead times and repayment schedules Putting it out of reach for many commercial banks Specialists exist to fill the gap Regional Development Banks – BOAD recent XOF 26m Theocratic Development Banks – IDB recent XOF 84m And not just by lending money Investing in skills and governance

9. 9 STRUCTURED SITUATIONS FUNDING FOR INVESTMENT There is always a local funding need as well e.g. DBCI Local banks (e.g. DBCI) have a key role to play supporting local promoters and project partners If there is an export credit agency involves there will often be a portion of residual country risk 5 – 15% of the amount being lent Term country risk weighted 100% for capital calculation purposes (vs 0% for export credit leg) e.g. DBUK Specialist and niche banks (e.g. DBUK) have a key role to play in taking on these risks

10. THANK YOU Rollo Greenfield Rollo Greenfield CHIEF EXECUTIVE OFFICER Diamond Bank (UK) plc - London Isaac FOLY MANAGING DIRECTOR Diamond Bank SA, Côte dIvoire - Abidjan Please visit us At our stand today At our stand today At our UK offices tomorrow At our UK offices tomorrow Appointments can be arranged today Appointments can be arranged today At our London and Abidjan offices any time in the future At our London and Abidjan offices any time in the future

11. THANK YOU Rollo Greenfield Rollo Greenfield CHIEF EXECUTIVE OFFICER Diamond Bank (UK) plc - London Isaac FOLY MANAGING DIRECTOR Diamond Bank SA, Côte dIvoire - Abidjan Please visit us At our stand today At our stand today At our UK offices tomorrow At our UK offices tomorrow Appointments can be arranged today Appointments can be arranged today At our London and Abidjan offices any time in the future At our London and Abidjan offices any time in the future