Country Overview. An International Financial Centre and Gateway to Africa

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1 Country Overview In 1965, the Standard Bank of South Africa merged with the Bank of West Africa acquiring businesses including a banking operation in Nigeria, which dated back to The name was then changed to Standard Bank of West Africa. Four years after the merger, Standard Bank Nigeria was incorporated locally to take over the business in Nigeria. In 1971, 13% of the share capital was placed with Nigerian investors. The end of the civil war saw a major economic upturn and as a consequence, the military government sought to increase local control of the retail-banking sector, hence the Bank s investment in Standard Bank Nigeria (renamed First Bank of Nigeria in 1979) was reduced to 38%. Standard Chartered remained a shareholder of First Bank of Nigeria until Standard Chartered re-entered Nigeria in 1999 and opened to customers on 15 September 1999 as a wholly owned subsidiary of Standard Chartered Bank Plc, headquartered in United Kingdom. It now has 40 branches located in Lagos, Port Harcourt, Abuja, Ibadan, Kano, Kaduna, Maiduguri, Ota, Aba, Onitsha and Onne offering a wide range of products and services in Retail, Corporate and Institutional Banking. It employs over 900 employees and sees Nigeria as a growth centre. An International Financial Centre and Gateway to Africa 1. Nigeria sustains the largest economy in Africa. 2. Its population of 170 million makes it the largest in Africa and the 7 th most populous in the world. 3. Nigeria is the 10th largest producer of crude oil in the world and the 6th largest exporter among OPEC member countries 4. The country is a key exporter of petroleum products (8 th globally and is the 12 th largest exporter of natural gas and crude oil respectively) and, holds the largest natural gas reserves in Africa. 5. The Gross Domestic Product (GDP) in Nigeria was USD billion in Components of GDP were Agriculture (34%), Services (32%), Crude Oil, Gas & Solid Minerals (20%), Manufacturing (4%), Real Estate and Construction (4%) and others (7%). The GDP value of Nigeria represents 0.84 percent of the world economy. GDP in Nigeria averaged USD Billion from 1960 until 2013, reaching an all time high of USD Billion in 2013 and a record low of 4.20 USD Billion in GDP in Nigeria is reported by the World Bank. 6. The overall average GDP growth rate of the Nigerian economy was 6.6% in 2012, with 6.8% in 2013 and 7% growth is expected for It is listed among the Next Eleven economies of the world and also classified as having strong potentials to be part of the BRICS (Brazil, Russia, India, China and South Africa) i.e. the world s largest and fastest growing economies in the 21 st Century. 8. Nigeria has strong trade corridors with Asia and Europe 9. It has a fast developing regulatory framework 10. Nigeria is a member of the Common Wealth of Nations and African Union 11. It has over 400 ethnic groups and native languages 12. Nigeria is home to world renowned Nobel Laureate, Wole Soyinka Standard Chartered Bank (Nigeria) Limited Executive Committee Managing Director and Chief Executive Officer Bola Adesola Executive Director, Finance Yemi Owolabi Executive Director, Corporate & Institutional Clients Remi Oni Head, Financial Markets David Adepoju

2 Head, Retail Clients Ebehijie Momoh Head, Commercial Clients Yetunde Oni Head, Technology and Operations Callistus Obetta Chief Risk Officer Benjamin Dabrah Head, Human Resources Kike Ajeigbe Head, Legal and Company Secretary Seye Kosoko Head, Compliance Olusiji Adeyinka Head, Brand and Marketing, Nigeria and West Africa Diran Olojo Head, Corporate Affairs Dayo Aderugbo Standard Chartered Client Proposition Gateway to Africa We are an international bank in Nigeria with both local and international expertise spanning decades of knowledge and experience. Nigeria is a very attractive and fast growing market for Standard Chartered Banking sector reforms are a core part of Nigeria s broad economic restructuring programme. In Q4 2005, the Standard Chartered Group injected US$147m in new equity to meet the minimum capital requirement of US$185m recognition of the importance of SCBN to the Group franchise Our values Courageous, International, Creative, Trustworthy and Responsive ensure we are positioned to be the right financial partner to our esteemed clients. We have the management depth to execute our strategy and continue to attract talented employees to build the franchise. We remain absolutely committed to building a long-term sustainable business and our new ultramodern Head Office complex construction project is an amplification of this fact.

3 Product Offering The Bank has a range of services and products tailored to suit the requirements of clients, in compliance to the requirements of our regulators, while contributing to the development of various sectors within the economy: Retails Clients The Retail Clients (RC) business in Nigeria consists of Wealth Management (WM), Priority & International Banking (PIB), Employee Banking, Personal Banking, Preferred Banking and Small & Medium Enterprise (SME) Breeze - our mobile banking app was recently launched to provide our customers with convenient, secure, anytime, anywhere Banking Our purpose-built SME centre at Opebi, Lagos serves as a hub specifically dedicated to serving our SME clients We have maintained strong cash management capabilities to ensure that this critical aspect of our clients businesses is met effectively in what remains essentially a cash based and cash driven society Our Straight 2 Bank platform the one stop online platform enabling our customers to perform daily transactions in more convenient way Our Mobile & Online banking capabilities offer our customers convenience platforms where they can access their bank at anytime and from anywhere Our Employee Privilege Banking product is a market leading comprehensive banking programme geared towards offering one stop shop banking services for our customers. It targets personal banking needs of management members and employees of various organizations and companies. Our branch network has expanded from 3 branches, with 12 staff, in 2003 to 42 branches with over 900 dedicated staff Currently, there are over 80,000 clients of the bank Corporate and Institutional Clients The Corporate and Institutional Clients (CIC) business in Nigeria consists of Client Coverage, Financial Markets, Transaction Banking, Corporate Advisory and Finance, Private Equity, Corporate Finance and Principal Finance.

4 CIC provides its clients with a wide range of commercial banking solutions, offering costeffective collections and payments services. It continues to take advantage of trade corridor opportunities, thereby positioning Standard Chartered, for example, as the Bank of Choice for Chinese Corporates and the market leader in RMB clearing capabilities CIC has also built a distinctive capability in Corporate Finance and Financial Markets, leveraging on Group product expertise and local knowledge to deliver solutions to our clients. Recent advisory and financing deals for NNPC, PXF, Arik Air, Indorama Petrochemicals and Dangote Industries Limited have further raised our profile in this space We continue to lead the way in the upstream oil industry, having led and advised on most of the major upstream deals in the market in the past three years. We believe in the development of the Financial Services Industry and actively support our regulators and the government. We participate in the Nigeria Bankers Committee Sub- Committee on Economic Development which is working with stakeholders to increase the contribution of banks to the development of the real sector of the economy Awards in Excellence Top 100 Businesses in Nigeria Award from H.E G.E Jonathan, President of the Federal Public of Nigeria 2014 Most supportive local bank award 2013 Issued by Shell Nigeria Major Deals Achieved Leverage Finance USD3.3Bn Joint Financer / International Facility Coordinator September 2013 Project Nitro The transaction is a milestone project for Nigeria, and Africa as a whole. This project will generate significant and sustainable economic benefits, such as cutting Nigeria s current fuel product imports by half, creating employment for thousands of Nigerians - through direct and indirect employment - and increasing local specialist skills in key growth sectors. Other plant outputs, such as urea and polypropylene, stand to spur economic activity in a number of other business sectors, including agriculture, packaging, and vehicle accessories. It will be the single biggest contribution to the Nigerian Government s economic development agenda. It is strongly aligned with the Bank s commitment to be Here for good The transaction is an attestation to the capacity of Nigerian banks to underwrite large ticket transactions. This transaction reaffirms the support for infrastructure development in Nigeria and the country s ability to continue to attract FDI inflows. The deal is one of the largest big size transaction within the EMEA region in (see below, list of other large ticket deals in 2013) Indorama

5 Structured Term Finance Facility USD100mn Lender June 2013 Structured Term Finance Facility - IEPL required financing to fund its capital expenditure requirement of building a Jetty required for its fertilizer plant (Indorama Eleme Fertilizer Chemical Limited) which was built as part of the Group s expansion plan in Africa. The facility was structured against the existing cash flows of IEPL with the sale proceeds being collected in Naira collection opened with SCB Nigeria. The facility also benefits from a charge on IEPL Fixed and Current Assets. Deepening SCB Relationship The success of this transaction will support Group s operations in Africa and will cement SCB relationship with the Indorama Group. This transaction was closed within a tight timeframe and is the result of seamless collaboration amongst OCC, SCCG, STF & FS and the GAM team in Indonesia. This transaction provides SCB a platform for further business with the client at both transactional and strategic levels. Main One Term Loan USD 100M Lead Arranger September 2013 Transaction Highlights Main One Cable Company Limited is a communications services company providing open access wholesale international connectivity and broadband capacity to countries in West Africa. Main One was incorporated in Mauritius in 2008 and it owns two subsidiaries in Nigeria, one in Ghana and one in Portugal. Main One built the first privately-owned submarine cable (Main One Cable System) over a distance of 7,000 kilometers along the West African coastline, with initial landing stations in Nigeria, Ghana and Portugal. The company has developed platforms to foster internet adoptions and communication services to ISPs, enterprises and government institutions in the region. Main One is also in the process of setting up various value added services such as Colocation, Cloud Computing, Data Storage, Disaster Recovery etc. Company s customer base includes blue chip telecom operators such as MTN (Nigeria and Ghana), Etisalat, Bharti Airtel (Nigeria and Ghana), Vodacom, Mobitel etc. Standard Chartered Bank arranged a USD 100m 7-year term loan for the company in The other lenders were First Bank, First City Monument Bank and Skye Bank.The facility was used to refinance existing debt of Main One (USD 83.3m) and new capital expenditure (USD 16.7m). The facility benefits from security which includes charge over the submarine cable and other assets of the Borrower, corporate guarantees from the operating companies, assignment of receivables and charge over collection accounts. The facility was approved for 7 years, quarterly equal amortization with 6-months grace period. The first scheduled repayment was paid in March GDP Overview Nigeria is the largest economy in Africa with a GDP of USD billion in 2013 and forecast growth of 7% in Its population of 170 million makes it the largest in Africa, accounts for 47% of West Africa s population and creates huge potential especially with a growing middle class.

6 Economic Overview The macroeconomic outlook is optimistic. The country is a key exporter of petroleum products (globally eighth and twelfth largest exporter of natural gas and crude oil respectively) and holds the largest natural gas reserves in Africa but with limited infrastructure in place to fully develop the sector. With large reserves of human and natural resources, the country is poised to build a prosperous economy, significantly reduce poverty, and provide health, education and infrastructure services to meet its population needs. Although the economy is heavily dependent on oil exports which accounts for 90% of foreign exchange, agriculture accounts for 34% of GDP and non-oil GDP has grown 9% compared to -4% for oil over the past few years. Key Financial Indicators Performance Standard Chartered Nigeria Limited has consistently maintained strong operating results and efficiency in the last five years. For the year ended December 31, 2013, the compounded annual growth rate (CAGR) in total assets was 23% and turnover 48% while the year on year growth was 27% and 26% respectively. The resulting operating profit after tax was N21.3m which reflected a 33% year on year growth (and 28% in five year compound rate CAGR). Earnings per share grew by 33% to 849 kobo from 638 kobo in Young Shall Grow motors Import finance & Short term loan USD7m Financing procurement of interstate transport buses Mar 2013 Import LC was used to facilitate purchase of Buses and same converted to 12month short term loan to be defrayed with equal monthly instalments from clients cash flows Westcom dist Ltd Bank guarantee & Import finance USD9m Provision of Bank Guarantee April 2013 SCB Bank guarantees provided comfort towards multinational manufacturer - Hewlett Packard s release of IT hardware to Client Vitachem Ltd Nig. Import finance, Overdraft & short term import loans USD9.8m Provision of letters of credit to nominated suppliers June 2013

7 Client imports and distributes chemicals which serve as vital additives to a wide range of local manufacturers. The cocktail of products provided was suitable to support clients working capital & trade needs System Tech Services Bank Guarantee, Overdraft & Invoice finance USD 8.6m Provision of trade & working capital lines Jan 2014 Bank Guarantees provided to Dell & HP facilitated trade credit supplies Peace Energy Marine Import finance LCs and short term loans USD 8.5m Provision of trade & working capital lines Oct 2013 Client supplies bunker fuels & AGO to IOCs and Dangote. Products provided augmented clients working capital lines Larry Michelle Ltd Term Loans USD9.5mn Provision of Loans to finance contract Feb/Mar 2014 Loans provided facilitated the purchase of 2 crew boats to provide offshore exploration services to Total Enterprise logistics Term Loans USD9.5m Provision of medium term loans to finance trucks Oct 2013 Provision of a 4 year term loan facilitated the purchase of trucks to be engaged on a contract basis with a port concessionaire.

8 Key highlights Gross Earnings 2013: N62.66billion 2012: N49.92 billion Profit after taxation 2013: N21.32billion 2012: N16.04 billion Business highlights: Retail Clients: Operating income 2013: N11.6billion 2012: N10.7 billion Client revenues 2013: N10.9billion 2012: N6.5 billion Total assets 2013: N24.3billion 2012: N14.6 billion Corporate and Institutional Clients Operating income 2013: N33.6billion 2012: N28.6 billion Client revenues 2013: N35.5billion 2012: N29.4 billion Total assets 2013: N527.6billion 2012: N419.4 billion Sustainability Standard Chartered Bank Nigeria is extremely committed to the development of people, communities and economies in the various places we have footprint We aim to make a positive contribution to the communities that we operate in through our various initiatives that link our core business activities, expertise and resources with the key issues facing these communities. SCBN focuses on various community initiatives, including Seeing is Believing, LwHIV and Goal (our life skills empowerment program for adolescent girls). Our stamp is boldly imprinted with giving back to the communities in which we operate. GOAL The Goal Project started in Nigeria in 2011 as a pilot project for Africa. It is an intervention programme with the main goal of contributing to the reduction in incidence of teenage pregnancies and HIV infection by decreasing related risk behavior of young women and girls through capacity-building interventions that address three levels of personal, social and economic empowerment. Goal has become one of the most respected sports for development corporate programs in Nigeria. The methodologies being employed include advocacy, training and sports development activities. The training modules help educate the girls on Financial Literacy, Sex education, Self Confidence, Skills/Talent development and the acquisition of soft skills. From 4 schools in Lagos in 2011, the program has expanded to 19 schools in 3 locations (Lagos, Abuja and Oyo states). To date over 58,000 girls have graduated from the Goal Program. Seeing is Believing Fundraising activities for the bank s Seeing is Believing Project has become the Standard Chartered Nigeria s signature event in Nigeria. Every year the bank holds an activity to raise awareness, educate the populace and donate funds to our partner NGO. In 2014, through the bank s signature charity event tagged, Walk for Sight, the bank raised over USD 50,000; enough funds to restore sight to over 1,000 people with cataract-induced blindness. To date, through 8 consecutive events, we have raised nearly USD 1,000,000. Our partner NGOs are

9 the Nigeria Society for the Blind and Sightsavers International. These are the same partners we have worked with from inception as they are credible and have maintained an unwavering support towards the eradication of preventable blindness. LwHIV Our dedicated staff volunteers in Nigeria, known as HIV Champions through our partnerships with the Lagos State Ministry of Health, AIESEC, Nigerian Business Coalition Against Aids (NIBUCAA) and the Youth Empowerment Foundation (YEF), have educated more than 600, 000 people on HIV and AIDS. By providing a range of free education tools, we have enlisted other organizations to conduct their own training, some of which may not otherwise have had the chance to become involved. Standard Chartered has remained a key member of the Nigeria Business Coalition Against AIDS (NIBUCAA), offering valuable leadership to advance the agenda of fighting the disease. The partnerships we have formed are clear demonstrations of national solidarity. Every year, on World Aids Day, in partnership with NIBUCCA, we promote status testing, spread awareness and educate staff, their wards, clients and domestic helps on HIV and Aids. For further enquiries please contact: Dayo Aderugbo Head, Corporate Affairs, Nigeria Dayo.Aderugbo@sc.com