OCEANIC BANK INTERNATIONAL PLC UNAUDITED Q3 2010 RESULTS
FOR THE 9 MONTH PERIOD ENDED SEPTEMBER 30, 2010

EARNINGS PER SHARE RISES TO 47k FROM LOSS PER SHARE OF 308K ON THE BACK OF SHARP REDUCTION IN INTEREST AND OPERATING EXPENSES AND CREDIT WRITEBACKS

Highlights of Group Results

• Gross earnings: N89.4 billion versus N129.7 billion in 2009 comparative period due to drop in interest income and other income

• Interest income: N74.4 billion versus N101.8 billion as a result of the major reduction in interest rates and volume of interbank placements in the two periods

• Interest expense: N39.5 billion, down 24% from N52.0 billion, reflecting the Central Bank of Nigeria’s efforts at reducing interest rates and Oceanic Bank’s success in lowering the cost of customer deposits and improving its deposit mix. As a consequence, average Primary Cost of Funds for the 9 months ended Sept 2010 was 5.21% , down from 11.29% in the 2009 comparative period

• Net interest income: N34.9 billion versus N49.9 billion due to lower interest income

• Non-Interest income: N15.1 billion, versus N27.9 billion as a consequence of reduction in credit related fees and other fees that are normally driven by the granting of new loans

• Operating expenses: N51.4 billion, down 29% from N72. 2 billion due to staff rationalization at the end of 2009 and other cost cutting measures taken by Management

• Provision write-backs: N14.5 billion written back as against provisions expense of N93.7 billion in 2009

• Profit before Tax: N13.1 billion compared to Loss before Tax of N88.4 billion

• Profit after Tax: N10.4 billion in contrast to Loss after Tax of N68.4 billion

• Basic Earnings Per Share: 47k versus loss per share of 308k

• Non-performing loans to Total Loans and Advances: 69%; dropped from 73%

• Customer deposits: N644.5billion as at September 30, 2010, up 15.8% from N556. 8 billion as at December 31, 2009

• Loans & Advances plus advances under finance lease: N420.2 billion as at September 30, 2010, up 7.5% from N391.0 billion as at December 31, 2009