On track:

Interview with Oyinkan Adewale,

Executive Director/CFO, Oceanic Bank
In the following interview, Oyinkan Adewale, discusses Oceanic Bank's third quarter results.

Oyinkan Adewale trained with Coopers & Lybrand (now part of PriceWaterhouseCoopers) and qualified as a
Chartered Accountant, ACA, in May 1984. She has been a Fellow of the Institute of Chartered Accountants of
Nigeria for over 15 years.

She joined Nigeria International Bank/Citigroup in 1989 as Deputy Financial Controller and rose to the
position of Citigroup Chief Financial Officer for the West African Cluster. She was appointed to the Board of
Directors as an Executive Director in February 1998. She is one of a limited number of MIS experts in Nigeria.

In 2004, Oyinkan co-founded SIAO, Nigeria´s leading indigenous accounting firm and number five overall
accounting firm in the country. She is credited with originating the firm's M&A financial due diligence
practice

She joined Renaissance Group, the emerging markets-focused investment bank, in April 2007 as Managing Director, Chief Operating Officer
for Africa.

November, 2010
In October 2009, the Central Bank of Nigeria appointed her to the board of Oceanic Bank as Executive Director and Chief Financial Officer.

Oyinkan Adewale was educated at St Mary´s Private School, Lagos, Holy Child College, Lagos, St George´s School in Switzerland and University
of Ibadan, Nigeria.

“
Q: Compared to Oceanic Bank's performance in the first half, it would appear, at
first glance, that business has been subdued with a slowdown in income growth. In
The current what context should investors interpret this performance?
earnings profile of
Oyinkan Adewale: The current earnings profile of the Bank can be broadly classified
the Bank can be into earnings from core banking operations and earnings from restructuring and recovery
broadly classified activities.
into earnings from
Net revenues dropped from N22.1 billion in the second quarter to N13.7 billion in the third
core banking quarter, which was a drop of N8.4 billion. This reduction is attributable largely to the slow-
operations and down in restructuring and recovery activities leading to a drop in interest-in-suspense write-
backs and also to the 500 basis points reduction in the Bank's lending rates at the end of the
earnings from second quarter.
restructuring and
The imminent liquidity injection from the Asset Management Company of Nigeria (AMCON)
recovery activities. should help to reduce pressure on the Bank’s interest expense line and boost revenues.

”
 2|6

Q: In recent weeks, a number of other institutions, notably FinBank and

Union Bank, have made public statements to the effect that they are in exclusive
talks with preferred buyers. Will Oceanic Bank be making an announcement on
the subject of a strategic investor capital infusion soon? At what stage is the due
diligence and negotiations process?

OA: As you know, Oceanic Bank has a significant intrinsic value proposition that makes
this institution very attractive to potential investors.

Furthermore, the recent court ruling on the forfeiture of assets by the former chief
executive officer has intensified interest among strategic investors in the acquisition of a
stake in the Bank. While we cannot disclose details at this point, we can tell you that
Oceanic Bank is continuing negotiations with potential investors who have the credibility
and network to enhance long-term shareholder value.

Q: The October ruling by Justice Abutu of the Federal High Court, Lagos on
Oceanic Bank's former chief executive has given the Bank's shares a boost on the
stock market. Investors believe that the judgment bodes well for the Bank's

“
efforts to recover a huge chunk of insider-related loans and its subsequent

November, 2010
recapitalization. However, most of this enthusiasm turns on the recovered
As you know, assets feeding directly back to Oceanic Bank. What will be the exact mode for
Oceanic Bank has restitution among the EFCC, Central Bank, AMCON and Oceanic Bank?
a significant
OA: Essentially, this will be through a two-step process. First of all, the recovered
intrinsic value assets will be forfeited to AMCON. Next, AMCON will issue bonds to the Bank based on the
proposition that valuation of the forfeited assets.

makes it very The expected AMCON proceeds would positively impact the Bank's finances on six
attractive to important metrics; liquidity, liquidity ratio, reduction in interbank borrowings (IBBs),
which will cut the interest expense load and improve net interest income, capital adequacy
potential ratio (CAR), and finally, the non-performing loan (NPL) ratio, which would be drastically cut

”
investors. since half of the bad loan book is insider-related.

These positive outcomes are expected to drive further improvements in Oceanic Bank's
equity valuation and investor sentiment on the stock exchange.

Finally, the removal of litigation risk by the erstwhile majority shareholder as one fallout of
the settlement with the former chief executive has given renewed confidence to potential
core investors in their assessment of the Bank's attractiveness.

Q: The Central Bank of Nigeria's new rule on banking licenses has pushed
banks to carefully rethink their future growth plans. What factors will influence
Oceanic Bank's decision when a decision is made?

OA: At the Board and executive management levels, we have looked at the
competitive advantages we enjoy at Oceanic Bank and where it makes logical sense to
position ourselves. Ultimately, four key factors, amongst others, would greatly influence
the Bank's decision in complying with the CBN's new Banking licensing regulations.
 3|6

First, our existing branch network. Oceanic Bank currently has a branch network of 376
operational branches in the 6 geo-political zones of the country. The nation-wide spread
of our network is a major competitive advantage for the Bank. We remain committed to
optimizing our existing branch network to maximize returns to shareholders.

Second, the capital requirements of the new CBN licensing guidelines specify new
minimum capital requirements for commercial banks operating in Nigeria. Regional banks
require N10 billion, national banks require N25 billion, while international banks require
N50 billion. Our ability to meet any of these three thresholds would depend on our
success with the on-going recapitalization exercise.

Third, the viability of existing subsidiaries and the value they bring to the Bank will affect
how we see their overall contribution and role within Oceanic Bank as we contemplate
the future.

“
Lastly, depending on timing of a strategic transaction, the priorities and preferences of the
winning bidder must be taken into account.
At the Board and
executive Q: The AMCON Bill has been ratified and the names of its board members

November, 2010
released. But the asset management company has not moved as quickly as some
management levels, investors would have liked. Considering the significance of the October 8 court
we have looked at ruling, is relief from AMCON still the lifeline it might have been to Oceanic Bank
the competitive two months ago?

advantages we OA: To the extent that AMCON will give relief to us on 2 levels: first to buy our NPLs
enjoy at Oceanic thereby reducing our equity deficit , and then to wipe out any remaining equity deficit
through a form of equity stake, and given the size of our NPL book in Oceanic Bank, the
Bank and where it imminent take-off of AMCON will definitely be a lifeline.
makes logical sense
Q: Operating expenses reduced significantly in Q1 2010 and have remained
to position flat in Q2 2010 and Q3 2010. Is Management looking at the possibility of further
ourselves reduction of Expenses?

”
OA: Operating expenses dropped significantly in Q1 2010 largely because of the
December 2009 staff rationalization exercise and tighter cost controls. Operating
expenses have remained relatively flat through the second and third quarters as our
approach has shifted from cost cutting to revenue optimization and cost management.
You will agree with me that cost cutting is not an end in itself.

We do not envisage significant reduction in operating expenses in the near future.

Instead, we will continually review what works best for the bank vis-à-vis our earnings
base and our strategic objective to optimize margins. However, we will continue to
explore all avenues for cost reduction.
 4|6

Q: How much progress has the bank made with non-insider related bad

“
loans in the 3rd quarter?
We do not
OA: One of the Bank's key priorities is the resolution and recovery of non-performing
envisage loans. In the final quarter of 2009, Oceanic Bank set-up a dedicated recovery unit,
significant contracted professional recovery agents and employed the judicial system to recover
NPLs. Between August 2009 and the end of September this year, the Bank has successfully
reduction in recovered N111.4 billion.
operating
expenses in the Q: Would it be correct to say that Oceanic Bank has exited the crisis phase
and that the role of the executive team is now focused on the management of
near future. regular affairs similar to your peers at those institutions that passed the CBN

” Special Audit in 2009?

OA: The crisis phase of the Bank is far behind us now. The present management has
successfully put the Bank on sound footing. In fact, as far back as the first quarter of this
year, Oceanic Bank had been successfully stabilized. If we choose to use one popular
metric of customer perception on the stability of institutions, that is, customer deposits,
which have grown by 15% from our 2009 financial year end position, you will agree that
public confidence in Oceanic Bank is as solid as ever.

November, 2010
This clearly highlights the confidence reposed in management by the banking public.

Going forward we shall place emphasis on the gradual and planned reduction in inter-
bank borrowings (IBBs), resolution of our non-performing loan (NPL) book and
compliance with all statutory regulatory ratios - Liquidity Ratio and Capital Adequacy Ratio
- as determined by the CBN.

Q: Inflation has become a concern. Do you expect the Central Bank to raise
interest rates between now and the end of the first quarter of 2011? If so, what
would be the margin of comfort for lenders? What if the apex bank does not hike
rates? How would either scenario impact Oceanic Bank's performance over the
next six months?

“
The crisis phase of
the Bank is far
behind us now.
OA: The CBN's decision to tackle inflation is commendable. However, we expect
inflation to remain in double digits through to Q2 2011 as inflationary pressures,
stemming from the implementation of the new Civil Service Salary Structure, fiscal
injection arising from electioneering expenses, injections from AMCON for the purchase
of NPLs from deposit money banks (DMBs), and spill-over effects from natural disasters in
key agricultural baskets, notably in the northern parts of Nigeria, invariably result in a rise
in the prices of basic food stuff.

” However, what is important to Oceanic Bank, and any lending institution for that matter, in
the face of a potential reduction or hike in interest rates is the preservation of its interest
margin. Thus, whatever actions are taken by the CBN to tackle inflation, we will continue
to defend our interest margin to the extent that it makes sense to our shareholders, and to
our customers too.
 6|6

About Oceanic Bank

Oceanic Bank International Plc. is one of Nigeria's foremost financial services institutions. The Bank was
incorporated on March 26, 1990 under the Companies & Allied Matters Act (1990) of Nigeria as a private limited
liability company and was granted a commercial banking license on April 10 1990. Oceanic Bank opened for
business on June 12, 1990. On June 4, 2004, the Bank converted to a public liability company and its shares began
trading on the Nigerian Stock Exchange on June 25, 2004. Twenty years after it first opened for business, Oceanic
Bank serves customers spread across all tiers of government, corporates, small & medium enterprises and
individuals. Today, the Bank whose success has been built on providing excellent services in a friendly
environment through professional staff leveraging on the right technology, manages assets in excess of N900
billion. With a strong presence in asset management, commercial banking, health management, insurance,
investment banking, pensions, registrar services, Savings & Loans and trustee services as well as over 370
business offices spread across Nigeria, Cameroun, the Gambia and São Tomé & Príncipe, Oceanic Bank is one of
the most recognized financial services brands in West Africa.

November, 2010
Oceanic Bank International PLC
Head Office
Herbert Macaulay Way,
Wuse Zone 6,
Abuja FCT.
Tel:+ 234 709 870 5593;
+ 234 709 870 5594;
+ 234 709 870 5592;
+ 234 709 870 5591

Lagos Corporate Office

Plot 270 Ozumba Mbadiwe,
Victoria Island,
Lagos.
Tel: + 234 1 270 5010 - 7;
+ 234 1 448 4600 - 99
Website: http://www.oceanicbank.com