Quarter 1 - financial statement for 2025

______________________

Approved by:

Chief Financial Officer FRC/2015/ICAN/00000011044

The accompanying notes are an integral part of these financial statements.

FOR THE PERIOD ENDED 28 MARCH 2025

*Refer to note 36 for changes to the presentation of the comparative figures

The accompanying notes are an integral part of these financial statements.

The accompanying notes are an integral part of these financial statements.

The accompanying notes are an integral part of these financial statements. -

FOR THE PERIOD ENDED 28 MARCH 2025

Total interest expense reported above relates to financial liabilities measured at amortised cost using the applicable effective interest rates.

1. Disagregation of fee and commission income

   In the following table, fee and commission income from contracts with customers in the scope of IFRS 15 is disaggregated by major type of fees.

   				Budgeted	Audited
   	In thousands of naira	28-Mar-2025	31-Mar-2024	'31-Mar-2025	31-Dec-2024
   	Loan management fee	94,557	48,416	81,818	251,157
   	Loan commitment fee	150,656	63,313	120,446	370,687
   	Insurance fee	89,277	29,545	62,571	192,031
   	Credit search fee	13,975	4,640	9,590	29,508
   		348,465	145,914	274,425	843,383
   	Admin and management fee	123,924	31,215	84,860	261,248
   	Account maintenance fee	67,722	36,655	55,598	171,072
   	Service fees and charges (see (iii) below)***	31,401	22,391	64,095	189,210
   		223,047	90,261	204,553	621,530
   		571,512	236,175	478,979	1,464,913
   ***

   The value presented as service fees and charges, credit-related fees and commission was reported in the prior year financial statements as part of "Other income". Considering the nature of the income (see note iii) and in line with the requirements of IAS 1.

   The fee and commission presented above relate to financial assets and liabilities measured at amortised cost. These figures excludes amounts incorporated in determining the effective interest rate on such financial assets and liabilities.

   Loan management fee relates to fees for loan processing and fee on overdraft facilities granted to customers.

   NOTES TO THE FINANCIAL STATEMENTS

   FOR THE PERIOD ENDED 28 MARCH 2025

2. Performance obligation and revenue recognition policy

   Fee and commission income from contracts with customers is measured based on the consideration specified in a contract with a customer. The Bank recognises revenue when it transfers control over a service to a customer.

   The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and the related revenue recognition policies.

   For the accounting policy for fees and commissions in the scope of IFRS 9, see note 4(b).

   Type of service	Nature and timing of satisfaction of performance obligations, including significant payment terms	Revenue recognition under IFRS 15
   Retail and corporate banking service	The bank provides banking services to retail and corporate customers, including account management, provision of overdraft facilities and servicing fees. Fees for ongoing account management are charged to the customer's account on a monthly basis. The rates for the different class of accounts are set on an annual basis. Transaction-based fees for interchange and overdrafts are charged to the customer's account when the transaction takes place. Loan servicing fees are charged once when the transaction takes place.	Revenue from deposit related services are recognized overtime as the services are provided. Revenue from credit related services are recognized at a point in time when the transaction takes place.

3. Service fees and charges include fees on customer requests such as issuance of letter of indebtedness, charges on issuance of drafts, seals, stamps, reference letters and signature confirmation letters. These are recognized at the point in time when the transaction takes place.

FOR THE PERIOD ENDED 28 MARCH 2025

1. Director's emolument

   The remuneration paid to the executive and non-executive Directors of the Bank (excluding pension and certain allowances) was:

   			Audited
   In thousands of naira	28-Mar-2025	31-Mar-2024	31-Dec-2024
   Directors' fees	12,500	6,250	50,000
   Sitting allowances	22,250	42,450	99,300
   Other Directors' expenses	197,757	142,821	415,285
   Total non-executive Directors' remuneration (see note 14(a))	232,507	191,521	564,585
   Executive compensation (see note 28(b)(i))	9,631	21,661	58,534
   	242,138	213,182	623,119

   NOTES TO THE FINANCIAL STATEMENTS

   FOR THE PERIOD ENDED 28 MARCH 2025

   14 Other operating expenses
   In thousands of naira	28-Mar-2025	31-Mar-2024	Budgeted '31-Mar-2025	Audited 31-Dec-2024
   Repairs and maintenance cost	213,010	122,179	148,161	534,415
   Vehicle and generator running cost	85,112	106,844	114,731	379,277
   Office expenses	73,501	68,202	93,501	297,146
   Computer expenses	329,543	105,543	335,082	884,637
   Travel expenses	17,558	35,664	56,788	190,394
   AGM expenses	21,616	5,539	21,616	50,977
   Year-end expenses	107,227	50,819	106,985	353,468
   Directors' remuneration	232,507	191,521	183,949	564,585
   Bank charges	9,591	7172	9,703	32,086
   Marketing/publicity expenses	129,999	75,040	111,279	374,772
   Professional fees	57,655	41,499	46,033	68,879
   Subscription fees	8,227	6,833	4,014	13,270
   Charges and levies	27,742	44,963	37,469	136,885
   Insurance cost	26,986	16,662	27,909	83,177
   NDIC premium	0	13,209	21,973	72,637
   Electricity expenses	26,744	14,502	18,781	62,084
   Recruitment expenses	2,382	1,604	15,198	58,507
   Legal expenses	3,384	1,067	10,025	20,699
   SMS alerts	0	21,715	18,410	60,859
   Rent and rates	-	-	-	(1.00)
   Audit fees (see note (i) below)	9,406	9,617	13,706	48,375
   Corporate social responsibility	-	-	3,097	1,000.00
   Donations	1,486	1,030	2,606	8,615
   Loan recovery expenses	440	4	7	24
   Fines/penalty	0	1,510	-	8,893
   Stamp duties	10	106	38	126
   Bad debts written off	-	-	-	983
   Share listing expenses	5	4,586	11,140	5,561
   Fraud, forgery and theft	0	20	48	160
   	1,384,131	947,450	1,412,248	4,312,490

   1. The auditors of the Bank did not offer any other services apart from the statutory audit related activities during the period.

      1. Income taxes

         In thousands of naira 28-Mar-2025 31-Mar-2024

         1. Amounts recognized in profit or loss

            Audited 31-Dec-2024

            Current tax expense Company income tax	545,536	187,476	727,456
            Education tax	-	-	91,040
            National Information Technology Development Agency (NITDA) levy	-	-	24,375
            Nigeria Police Trust Fund (NPTF) levy	-	-	122
            National Agency for Science and Engineering Infrastructure (NASENI) levy	-	-	6,094
            	545,536	187,476	849,087
            Deferred tax expense Origination and reversal of temporary differences (see note (c))	-		14,175
            Tax expense	545,536	187,476	863,262
            Movement in current tax liabilities Balance at 1 January	858,343	940,222	676,470
            Income tax expense (see note (a) above)	545,536	187,476	849,087
            Tax paid	(3)	(930,968)	(667,214)
            Balance at 31 January	1,403,876	196,730	858,343

         2. NOTES TO THE FINANCIAL STATEMENTS

            FOR THE PERIOD ENDED 28 MARCH 2025

         3. Movement in deferred tax balances

            28 March 2025
            	Balance at 1	Recognized in profit or loss	Recognized in	Balance at 28
            In thousands of naira	January	(see (a))	OCI	February
            Property and equipment	308,932	-	-	308,932
            Impairment allowance	(288,507)	-	-	(288,507)
            Others	46,213	-	-	46,213
            Deferred tax liabilities	66,638	-	-	66,638
            31 December 2024
            	Balance at 1	Recognized in profit or loss	Recognized in	Balance at 31
            In thousands of naira	January	(see (a))	OCI	December
            Property and equipment	235,908	73,024	-	308,932
            Impairment allowance	(229,658)	(58,849)	-	(288,507)
            Others	46,213	-	-	46,213
            Deferred tax liabilities	52,463	14,175	-	66,638
            Deferred tax liabilities
            The Bank's deferred tax liabilities are attributable to the following:

            	28-Mar-2025		31-Dec-2024
            In thousands of naira Gross amount		Tax effect	Gross amount	Tax effect
            Property and equipment	1,489,723	308,932	1,606,107	308,932
            Impairment allowance	(223,727)	(288,507)	(223,727)	(288,507)
            Others	48,467	46,213	42,501	46,213
            	1,314,462	66,638	1,424,881	66,638

         4. Reconciliation of effective tax rate

            28-Mar-2025		31-Dec-2024
            %	1,520,671	%	2,437,499
            92	476,980	30	731,250
            0	-	0	10,381
            0	-	0	-
            3	49,472	4	91,040
            1	15,207	1	24,375
            0	76	0	122
            0	3,802	0	6,094
            97	545,537	35	863,262

            In thousands of naira

            Profit before tax

            Tax using the Bank's domestic tax rate Non-deductible expenses

            Tax-exempt items Tertiary Education Tax NITDA Levy

            Nigeria Police Trust Fund (NPTF) levy NASENI Levy

      2. Cash and cash equivalents

         In thousands of naira 28-Mar-2025 31-Mar-2024

         Audited 31-Dec-2024

         Cash and cash equivalent comprise: Cash on hand: Cash on hand	157,951	133,199	112,183
         Held-to-maturity Treasury Bills: Treasury Bills	60,607	94,790	60,607
         Deposits with banks:	218,558	227,989	172,790
         Current account balances with other banks	6,002,049	9,798,341	19,781,210
         Money market placements	23,318,964	10,548,088	13,960,742
         Cash and cash equivalents for cash flow purposes:	29,539,571	20,574,418	33,914,742
         Impairment allowance (see note (b))	(76,881) -	1,594	(76,881)
         Cash and cash equivalents	29,462,690	20,572,824	33,837,861

         (a)

         NOTES TO THE FINANCIAL STATEMENTS

         FOR THE PERIOD ENDED 28 MARCH 2025

         (b) Movement in impairment allowance:

         Balance at 1 January	76,881	1,594	63,477
         Impairment loss (see note 12)	-	-	13,404
         	76,881	1,594	76,881

         Cash and cash equivalents comprise balances with less than three months' maturity from the date of acquisition, including cash-in-hand, deposits held at call with other banks, other short-term highly liquid investments with original maturities less than three months. The current balances with other banks also includes ATM working capital accounts and the suspense accounts used to manage settlement of ATM transactions with Sterling Bank to be refunded to the Head office by branches. For financial reporting purposes, the balances in the ATM related accounts were combined in order to have a net position.

      3. Pledged assets

      Pledged assets, initially recognised at fair value and subsequently measured at amortised cost, represent placements and Treasury Bills with banks that serve as collateral for the Bank's borrowings, use of NIBSS platform and ATM transactions as analysed below:

      In thousands of naira				28-Mar-2025	31-Mar-2024	Audited 31-Dec-2024
      Underlying transaction	Counterparty	Asset description
      DBN concessionary loan	Development Bank of Niger	Treasury Bills		727,371	533,965	696,600
      NIBSS Platform	First Bank of Nigeria Plc	Fixed placement		-	1,225,203	0
      NIBSS Platform	Zenith Bank Plc	Fixed placement		1,200,035	1,000,000	1,124,618
      NIBSS Platform	Zenith Bank Plc	Fixed placement		1,002,319	-	1,002,319
      ATM Transactions	Sterling Bank Plc	Call placement		20,000	20,000	20,000
      NIBSS Platform	First Bank of Nigeria Plc	Fixed placement		-	-	-
      				2,949,725	2,779,168	2,843,537
      Impairment allowance (see note (b) below)				(108,077)	(15,861)	(108,077)
      				2,841,648	2,763,307	2,735,460
      Current				2,841,648	2,763,307	2,735,460
      Non-current				-	-	-
      				2,841,648	2,763,307	2,735,460
      (b) Movement in impairment allowance:
      Balance at 1 January				108,077	15,861	20,484
      Impairment loss (see note 12)				-	-	87,593
      				108,077	15,861	108,077
      18 Loans and advances to customers
      In thousands of naira				28-Mar-2025	31-Mar-2024	Audited 31-Dec-2024
      (a) Loans and advances to customers comprise:
      Loan and advances to customers at amortised cost			29,275,170		21,496,005	25,528,160
      			29,275,170		21,496,005	25,528,160
      Current			24,670,039		15,224,925	21,525,046
      Non-current			4,605,131		6,271,080	4,003,114
      			29,275,170		21,496,005	25,528,160
      (b) Loans and advances to customers at amortised cost:
      	28 March 2025				31 December 2024
      In thousands of naira	Amount Allowance		Amount Gross Amount		ECL Allowance	Amount
      Term loans	29,601,370	(253,862)	29,347,508	25,920,379	(253,862)	25,666,517
      Overdrafts	1,064,251	(1,136,589)	(72,338)	1,002,743	(1,141,100)	(138,357)
      	30,665,621	(1,390,451)	29,275,170	26,923,122	(1,394,962)	25,528,160

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE PERIOD ENDED 28 MARCH 2025

2. Movement in allowances for impairment

In thousands of naira

Lifetime

ECL not Lifetime ECL

Lifetime ECL

12-month

credit

credit

12-month

not credit

Lifetime ECL

ECL

impaired

impaired Total

ECL

impaired credit impaired Total

Balance at the beginning of the yea (669,592) 384,620 1,477,625 1,192,653 (669,592) 384,620 1,477,625 1,192,653

19 Investment securities

Investment securities comprise:

1. Investment securities measured at FVTOCI:

   			Audited
   	28-Mar-2025	31-Mar-2024	31-Dec-2024
   Equity securities: Listed equities	1,056	5,324	1,056
   Unlisted equities	-	30,167	-
   	1,056	35,491	1,056

   The Bank has designated these equity investment securities at FVTOCI. They are held to be disposed off in the nearest future. The balance in unlisted equity investments have been fully impaired during the year ended 31 December 2024 (31 December 2023: Impaired), and there were no transfers to profit or loss account of any cumulative gain or loss within equity relating to these investments (31 December 2023: nil). The change in fair value on these investments were

   28-Mar-2025 31-Mar-2024			31-Dec-2024
   Balance at beginning of the year Listed equities	1,056	5,324	1,056
   Unlisted equities	-	30,167	0
   	1,056	35,491	1,056
   Balance at end of the year
   Listed equities	1,056	5,324	1,056
   Unlisted equities	-	30,167	-
   	1,056	35,491	1,056
   Fair value gain/(loss)	-	-	-
   Loss on derecognition of equity investments	-	-	-

2. Investment securities at amortised cost

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 28 MARCH 2025

1. Prepayments comprise the following:

   Prepaid insurance	72,709	50,442	42,825
   Prepaid staff benefits	-	45,188	-1
   Other prepaid expense (see note (i) below)	394,280	290,672	29,295
   	466,989	386,302	72,120
   (i) Other prepaid expense comprise: Prepayment of computer maintenance cost	74,566	20,694	22,629
   cost	319,714	269,978	6,666
   	394,280	290,672	29,295

2. Inventories comprise stock of debit cards, stock of credit cards, stock of cheques, books/journals/CDs, stock of office stationeries, stock of micr cheques and non micr cheques, assets under construction, deferred share issue cost.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 28 MARCH 2025

21 Property and Equipment

In thousands of naira

Buildings

Freehold

Land

Right-of-Use

Asset

Furniture and Fittings

Motor Vehicles

Computer Equipment

Office

Equipment Total

• There was no impairment loss on all classes property and equipment during the year (31 December 2024: Nil).

• There were no property and equipment pledged as securities for liabilities (31 December 2024: Nil).

• There were no contractual commitments for the acquisition of property and equipment (31 December 2024: Nil).

  On 1 January 2019, following the adoption of IFRS 16, the Bank recognises right-of-use assets for leases of branch premises and has presented right-of-use assets

• within 'property and equipment' - i.e. the same line item in which it presents underlying assets of the same nature that it owns.

  22 Intangible asset
  In thousands of naira	28-Mar-2025	31-Mar-2024	Audited 31-Dec-2024
  Computer software
  Cost:
  Balance at beginning of the year	96,062	96,062	96,062
  Addition during the year	-	-	-
  Balance at end of the year	96,062	96,062	96,062
  Accumulated Amortisation:
  Balance at start of the year	95,059	94,015	94,015
  Charge for the year	131	1,876	1,044
  Balance at end of the year	95,190	95,891	95,059
  Carrying amount at end of the year	872	171	1,003

• All intangible assets are non current. Intangible assets of the Bank have finite useful life and are amortised over 3 years.

• The Bank does not have internally generated intangible assets.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 28 MARCH 2025

The Bank obtained the following Development Bank of Nigeria (DBN) loans for on-lending to micro, small and medium enterprises to grow their

(i) businesses.

The Bank has not had any defaults of principal or interest or other breaches with respect to the loan facilities as at year end 28 February 2025.

(b) The movement in borrowings during the YEAR was as follows:

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 28 MARCH 2025

1. This amounts represents accrual made at the end of the year for payment of productivity bonus to employees of the Bank. It is linked to the performance of the Bank.

2. This amount represents provision for leave allowance to staff and profit sharing unpaid as at year end.

3. These amounts comprise the transactions of the Bank's customers performed through the various e-channels but were yet to be settled as at year end.