FBN Holdings Plc

1 FBN Holdings Plc Annual Report and Accounts 2020. For over a century, we have remained committed to delivering a diverse range of innovative products and services while creating opportunities that provide sustainable value over the long term. In line with this avowed commitment and focus to lead in the digital age, we are leveraging cutting- edge technology to develop and deliver mutually beneficial innovative financial solutions to our customers in an environmentally friendly and sustainable manner. Consequently, we re-organised our workforce, revamped our processes, and currently overhauling, upgrading, and re-modelling our IT infrastructure as an enabler of our digital initiatives. Our ability to reach the hitherto unbanked and underbanked to seamlessly deliver tailor-made financial solutions, provide multiple financial access and inclusion, even at the height of the debilitating and rampaging COVID-19 pandemic, while embedding flexible working arrangements to improve overall employee experience and productivity, is a testament to the Group's current transformation.

2 Confident of the on-going improvements in our business, following continuous investments in innovative financial solutions, resulting in improving financial metrics despite the challenges, we continue to forge ahead with vigor and unwavering commitment towards a brighter future. 3 Group Profile 4 Our Direct Subsidiaries 5 Our Footprints FBNH oldings at a Glance 6 Performance Highlights 9 Recognition of Our Performance 14. 18. 23. 28. Group Chairman's Statement Group Managing Director's Review Our Business Model Customer Experience and Complaints Management Strategic Report In this Report 30 Financial Review 36 Empowering Our People for Success 42 Digital Banking Solutions 44 Our Role in the Community Corporate Responsibility The term FBN Holdings Plc' or the Group' means 55 Community Support Scorecard and Sustainability FBNH oldings together with its subsidiaries. 57 Reporting Standards and Codes 58 Nigerian Sustainable Banking Principles 63 Stakeholder Engagement FBN Holdings Plc is a nancial holding company 70 Leadership incorporated in Nigeria on 14 October 2010.

3 The 85 Effectiveness Company was listed on the Nigerian Stock Exchange 104 Whistleblowing Procedures Governance 105 Directors' Report under the Other Financial Services' section on 26. 111 Report of the Independent Consultant November 2012 and has issued and fully paid-up share capital of 35,895,292,791 ordinary shares 114 Risk Summary 119 Risk Management Risk Overview of 50 kobo each (N17,947,646,396). In this 124 Emerging Risks Report, the abbreviations Nmn', Nbn' and Ntn'. 128 Principal Risks represent millions, billions and trillions of Naira 145 Statement of Directors' Responsibilities in Relation to the Annual Financial respectively. Statements 146 Statement of Corporate Responsibility for the Annual Financial Statements The Audited Financial Statements in this Annual 147 Statement of Compliance with Nigerian Stock Exchange (NSE) Listing Rules on Securities Trading Policy Report have been prepared under the International 148 Report of the Audit Committee Financial Statements Financial Reporting Standards (IFRS), and 149 Independent Auditor's Report unless otherwise stated, the income statement 155 Separate and Consolidated Statement of Profit or Loss 156 Separate and Consolidated Statement of Other Comprehensive Income compares the 12 months of December 2020.

4 157 Separate and Consolidated Statement of Financial Position to the corresponding 12 months of 2019, while 159 Consolidated Statement of Changes in Equity the statements of financial position comparison 160 Separate Statement of Changes in Equity 161 Separate and Consolidated Statement of Cash Flows represents the corresponding position as at 31. 162 Notes to the Separate and Consolidated Financial Statements December 2019. Except as otherwise disclosed, 326 Evaluation of the Impact of COVID-19. all the balances and gures relate to continuous 327 Statement of Value Added - Group 328 Statement of Value Added Company operations. Relevant terms that are used in this 329 Five-Year Financial Summary Group document, but not de ned under applicable 331 Five-Year Financial Summary - Company regulatory guidance or the IFRS are explained in 333 Shareholder Resources the abbreviation section of this Report.

5 335 Free Float Status 337 Notice of Annual General Meeting Shareholder Information There will be an option to view PDF copies of the 339 Proxy Form 341 E-Products Activation Form FBNH oldings Annual Report, list of unclaimed 343 E-Dividend Mandate Management System Form dividend and a list of all business locations on 345 E-Bonus Form 347 Shareholder Data Update Form the Investor Relations section of the FBNH oldings website. 349 Abbreviations 351 Appendix - Complaints Management Policy 355 Contact Information FBN Holdings Plc is the foremost Financial Services Group, woven into the fabric of Nigeria through its flagship subsidiary, First Bank of Nigeria Limited, which has been operating for over 127. years. As a Group, we are constantly evolving and adapting to the times to exceed customer expectations and deliver value to our shareholders. We stay ahead by leveraging innovation and technology to deliver unparalleled financial solutions through our diversified business entities.

6 FBNHOLDINGS STRATEGIC REPORT CORPORATE GOVERNANCE RISK FINANCIAL SHAREHOLDER. AT A GLANCE RESPONSIBILITY STATEMENTS INFORMATION. AND SUSTAINABILITY OVERVIEW. Group Profile FBN Holdings Plc is the foremost Financial Services Group in Nigeria. The Company, through its subsidiaries, provides a diverse range of financial services across commercial banking, merchant banking, capital markets, trusteeship and insurance brokerage. The subsidiaries offer innovative and competitive financial solutions across Africa, Europe and Asia. Notable milestones A leading asset Listed as FirstBank management, trustee Founded in 1894 1 in 1971 and as and financial advisory million FBNH in 2012 FirstMobile services subscribers ~100,0002. Strong growth in >30 million Agent Banking customer network 3,111 accounts ATMs Fastest growing USSD. Differentiated Leadership in transactional processing 8183. >130 million 15,623 with million electronic-banking users Business locations transactions per POS terminals month Oldest bank in Nigeria 2.

7 As at 31 March 2021. 3. 735 branches for FirstBank (Nigeria) and 83, (local and international) subsidiary locations. 3 FBN Holdings PLC 2020 Annual Report and Accounts FBNHOLDINGS STRATEGIC REPORT CORPORATE GOVERNANCE RISK FINANCIAL SHAREHOLDER. AT A GLANCE RESPONSIBILITY STATEMENTS INFORMATION. AND SUSTAINABILITY OVERVIEW. OUR DIRECT SUBSIDIARIES. Our businesses provide financial services to a variety of customers across commercial banking, merchant banking, capital markets, trusteeship and insurance brokerage. Commercial Banking MERCHANT BANKING CAPITAL MARKETs TRUSTEESHIP INSURANCE BROKERAGE. First Bank of Nigeria Limited FBNQ uest Merchant Bank Limited FBNQ uest Capital Limited FBNQ uest Trustees Limited FBN Insurance Brokers Limited FBNBank (UK) Limited FBNQ uest Asset Management Limited FBNQ uest Funds Limited FBNBank DRC Limited FBNQ uest Securities Limited FBNBank Ghana Limited FBNBank The Gambia Limited FBNBank Guinea Limited FBNBank Sierra Leone Limited FBNBank Senegal Limited First Pension Custodian Nigeria Limited The Group's core business is These businesses comprise corporate banking, investment banking, asset and wealth This Company offers expert providing financial services to management, fixed income securities trading and trust services, serving a diverse customer risk management and individuals, corporate customers, base of corporates, banks, public institutions, institutional investors, high-net worth insurance brokerage as well and public institutions.

8 This individuals (HNIs) and the retail market. as advisory services in life and business segment includes the general insurance businesses. domestic, international, and representative offices offering commercial banking services in 10. countries. The Flagship, First Bank of Nigeria Limited founded 1894. Strategic Vision Ambition Core Values To be the leading Maximise shareholder Innovation African nancial value through a Integrity services provider diversi ed portfolio Respect delivering innovative focused on putting Customer Centricity solutions customer First' Sustainability FBN Holdings PLC 2020 Annual Report and Accounts 4. FBNHOLDINGS STRATEGIC REPORT CORPORATE GOVERNANCE RISK FINANCIAL SHAREHOLDER. AT A GLANCE RESPONSIBILITY STATEMENTS INFORMATION. AND SUSTAINABILITY OVERVIEW. Our FootprintS. FRANCE. Name: FBNBank UK Limited UNITED KINGDOM Type: Bank Branch Founded: 2008. Name: FBNBank UK Limited Products/Services: Commercial Banking, International Banking Type: Licensed Bank Founded: 2002.

9 Products/Services: Commercial and International Banking SENEGAL. Name: FBNBank Senegal Limited Type: Licensed Bank Founded: 2014. Products/Services: Commercial Banking THE GAMBIA. Name: FBNBank The Gambia Limited CHINA*. Type: Licensed Bank Name: FBNBank China Founded: 2004. Founded: 2009. Products/Services: Commercial Banking Products/Services: Banking Services GUINEA. Name: FBNBank Guinea Limited DEMOCRATIC. Type: Founded: Licensed Bank 1996. REPUBLIC OF CONGO. Products/Services: Commercial Banking Name: FBNBank DRC Limited Type: Licensed Bank Founded: 1994. SIERRA LEONE Products/Services: Commercial Banking Name: FBNBank Sierra Leone Limited Type: Licensed Bank Founded: 2004. Products/Services: Commercial Banking GHANA. Name: FBNBank Ghana Limited Type: Licensed Bank Founded: 1996. Products/Services: Commercial Banking NIGERIA. Name: FBN Holdings Plc Type: Licensed Financial Holding Company Name: FBNQ uest Merchant Bank Limited Founded: 2012 Name: First Bank of Nigeria Limited Type: Licensed Bank Products/Services: Commercial Banking, Merchant Banking (Formerly First Bank of Nigeria Plc) Founded: 1995 and Asset Management, Insurance Type: Licensed Bank Products/Services: Merchant Banking and Founded: 1894.

10 Asset Management Services Products/Services: Commercial Banking Name: FBNQ uest Capital Limited Name: FBN Insurance Brokers Limited Type: Licensed Capital Market Operator Type: Licensed Insurance Brokerage company Founded: 2002 Founded: 2000. Products/Services: Private Advisory and Investments Products/Services: Insurance Brokerage Services Name: FBNQ uest Trustees Limited Type: Licensed Trustees Services Provider Founded: 1979. Products/Services: Trust Services Provider *Representative Offices 5 FBN Holdings PLC 2020 Annual Report and Accounts FBNHOLDINGS STRATEGIC REPORT CORPORATE GOVERNANCE RISK FINANCIAL SHAREHOLDER. AT A GLANCE RESPONSIBILITY STATEMENTS INFORMATION. AND SUSTAINABILITY OVERVIEW. Performance Highlights - Financial Highlights Gross Earnings Gross earnings declined by reflecting the low interest rate environment that 2019: prevailed in 2020. NET-INTEREST INCOME. Net-interest income declined by arising from the lower yields on securities 2019: and low loan margins, but this was partly offset by lower interest expenses on deposits.