Ecobank has the Network Advantage. Customers, Products, Geography.

Ecobank has the Network Advantage Customers, Products, Geography. Ecobank Ghana Ltd Annual Report 2015

ECOBANK GH ACCRA MAIN 19, Seventh Avenue, Ridge West PMB GPO Accra (233) 0302-680437/ 681167/8 (233) 0302 68 04 28 P.O.Box AN 16746 Accra-North ECOBANK GH TEMA Ecobank Ghana Limited Tema Branch Town Center Plot No. TC/ MKT / A / 76. (233) 0303 201053-6 (233) 0303 20 10 57 P.O Box co 3207 Tema ECOBANK GH RING ROAD Fidelity House, 20 Ring Road Central PMB 43, Cantonments, Accra (233) 0302 244007/8/9 (233) 0302 23 77 45 PMB 43,Cantonments, Accra ECOBANK GH TUDU Kimbu Road, opposite Accra Central MTTU (233) 0302 685587/685559 (233) 0302 68 55 85 P.O Box 16746 Accra North, Ghana ECOBANK GH SST Ground Floor Silver Star Tower, Airport City (233) 0302, 767404/ 778277 (233)0302 78 71 67 PMB KA 92, Kotoka International Airport, Accra. ECOBANK GH ABEKA LAPAZ Meacham Hse Annex, Mallam-Abeka Lapaz Highway (233) 0302 230061 (233) 0302 23 17 36 PMB,GPO, Accra ECOBANK GH MACC HILL Kaneshie - Mallam Highway, Lower Mccarthy Hill, Gbawe South 233) 0302 275375 / 028 910061 / 275375 (233) 0302-27 5375 PMB, GPO, Accra ECOBANK GH DANSOMAN Plot No. 1A, High Street, Dansoman Estate (233) 0302 326580/82 (233) 0302 326595 PMB, GPO, Accra ECOBANK GH SOUTH IND Old KBL Depot, near Agbogbloshie Market (233) 0302-670770,670745,670752 (233) 0302-670738 PMB, GPO Accra ECOBANK GH ACCRA MALL Ground Floor,Accra International Mall,Tetteh Quarshie Interchange,Accra (233) 0302-823053/4/5 (233) 0302-823056 PMB GPO, Accra ECOBANK GH SPINTEX RD Hse, No.56,Baatsona Highway Extension( Spintex Road),Accra. (233) 0302-815860 (233) 0302-815861 P.O.Box SR112, Tema ECOBANK GH NIMA Ground Floor, House No. E4/17, Nima Maamobi Highway, (233 ) 0302 238261/241883 (233) 0302 241889 PMB, GPO, Accra ECOBANK GH DARKUMAN Ground Floor, Ideal House, Darkuman Junction, Kaneshie - Mallam Highway (233) 0302 321950 (233) o302 321940 PMB, GPO,Accra ECOBANK GH TAFO Tafo Mampoteng Road Tafo Kumasi (233) 03220-40890 PMB GPO Kumasi ECOBANK GH A&C Shopping Mall, No. 783, Jungle Rd, East Legon (233) 028 9109407 / 0302 51 88 91 / 90 (233) 0302 518890 P.O. BOX 17506, East Legon ECOBANK GH LEGON Off Nuguchi Road Near Legon Mosque, (233) 0302 519835/6 (233) 0302 519837 P.O Box PMB GPO, Accra ECOBANK GH TAKORADI Plot no. 34 Axim Road Harbour Commercial Area PMB Takoradi (233) 03120-23870/ 21250 / 21258 (233) 03120 21 9 13 PMB Takoradi. ECOBANK GH MKT CLE TDI Old GNTC Building market circle, Takoradi (233) 03120 29325/6 (233) 03120 29 1 00 P.O.Box 114 Takoradi ECOBANK GH TARKWA Ground floor SIC Tarkwa office complex (233) 03123 22022/4 (233) 03123 22 0 25 P.O Box 100 Tarkwa ECOBANK GH OSU Osu Oxford street adjacent SSNIT hospital. (233) 0302 912782/4/5/6 (233) 0302 76 31 20 PMB CT 443,Cantonments,Accra ECOBANK GH KUMASI Harper road, Prempeh II roundabout Adum PMB Kumasi (233) 03220 37804 (233) 03220 37 3 33 ECOBANK GH KUMASI ADUM Oak Arcade, Opp. Agyekum Building, Adum Kumasi (233) 03220-47948,47959,47969 (233) 03220-45872 PMB GPO,Kumasi ECOBANK GH JUBILEE HSE Ecobank Jubilee House, Cocobod Building (233) 03220 45805 (233) 03220 45 8 02 ECOBANK GH TEMA MALL Ground Floor Tema Shopping Mall, Heavy Industrial Area,Area Tema (233) 0305-305175,305182,305183 (233) 0305-22305174 P.O.Box CO 3207 Tema ECOBANK GH KENYASE Newmont Bypass Road Kenyasi Brong Ahafo Region (233) 024 2209099 / 03220 47034 (233) 03220-47034 P.O.Box 91,Kenyasi ECOBANK GH NEW ABIREM Newmont Site, Abirem District, Akyem, Eastern Region C/O Newmont Gold Ghana Limited (233) 7011852 Ext. 52080 ECOBANK GH LONG ROOM Ghana Ports and Harbours Head Office Long Room, Tema (233) 0303-202125 / 206789 (233) 0303 20 21 25 P.O.Box CO 3207 Tema ECOBANK GH TEMA COMM 6 Vertical Plaza, Hospital Road, Community 6, (233) 0303 216605 (233) 0303 205822 P.O. Box Co 3207, Tema ECOBANK GH KNUST Commercial Area, KNUST (233) 03220 63051/2/3 (233) 03220 63050 PMB, GPO, Kumasi ECOBANK GH SUNYANI Plot No.5 Block B House NO B 5/2 Sunyani Central (233) 03520-25498,25495 (233) 03520-25490 PMB Ecobank Sunyani ECOBANK GH ELUBO Western Region, (233) 03122-22054/95/83 (233) 03122-22567 P.O.Box 48 Elubo ECOBANK GH ABREPO KSI Abrepo Junction,Kumasi (233) 03220-34850 PMB GPO Kumasi ECOBANK GH WEIJA Ground Floor Aplaku Building,Old Weija Barrier, Opp. National Investment Bank, Winneba Road. (233) 0302-853202/3 (233) 0302-853204 PMB GPO, Accra ECOBANK GH KEJETIA Pampaso Kejetia Kumasi (233) 03220-45801 PMB GPO Kumasi ECOBANK GH ASH TOWN St. Anne's Anglican Church Building Ashanti New Town Kumasi. (233) 03220-28071 PMB GPO Kumasi ECOBANK GH ABREPO MAIN Ike 'O' Plaza,Opposite the Neoplan Bus Assembly Plant (233) 03220-83835 / 83836/ 83837 (233) 03220-83838 PMB GPO Kumasi ECOBANK GH HAATSO Ebenezer Plaza Atomic Road haatso, North Legon Residential Area 0302-520834 / 520831 021-520833 PMB GPO, Accra ECOBANK GH KISSEIMAN Ground Flour of building situated at Christain village opposite Golf Channel, Kisseman 0302-920849 PMB GPO, Accra ECOBANK TEMA MOTOR WAY ROUNDABOUT Ground Floor of Gyau Towers on Plot No.LI//5A/13A,Accra tema Motorway Light Industrial Area 0303-305510/11/12/14 0303-305513 P.O.Box CO 3207 Tema ECOBANK GH MADINA Ground Floor and entire first floor of the Agrimat Building on Plot No.389, North Legon residential Area (233) 0302 521876 (233) 0302 521878 PMB GPO, Accra ECOBANK GH MILE 7 ACHIMOTA Ground Floor of house No.AT/A39, New Achimota (233) 0302 416904/5 233) 0302 413807 PMB GPO, Accra ECOBANK GH KOTOBABI Modex Filling Station Premises kotobabi highway (233) 0302 250325/7 (233) 0302 250330 PMB GPO, Accra ECOBANK GH BANTAMA Ground and First Floors of building situated on Plot No.20,Bantama High Street Kumasi (233) 03220 49006 PMB GPO Kumasi ECOBANK GH STADIUM AMAKOM Ground Gloor of building formerly known as Edward Nassar Building, Kumasi Sports Stadium (223) 03220-83841 (233) 03220 83844 PMB GPO Kumasi ECOBANK GH TANOSO First Floor of property on site with Petrol Filling Station, No. 6, Tanoso/Dekyemso Sunyani-Kumsai Highway (233) 03220-52043/52045/52056 (233) 03220-52094 PMB GPO Kumasi ECOBANK GH SAFE BOND BRANCH Ground floor safebond car park Building (233) 0302 200946/7 (233) 0302 200979 P.O.Box CO 3207 Tema ECOBANK GH AFLAO BRANCH Hse No. ASI-B-489 Aflao Along Aflao Border Road (233) 03625-30890, 30893 (233) 03625 31028 P.O.Box CO 3207 Tema ECOBANK GH LABONE BRANCH Block No. B56 (Opposite Coffee Shop) Labone (233) 0302-933509, 768132 (233) 0302-768133 PMB General Post Office Accra ECOBANK GH TAMALE Plot N0. 84 in Rice City Residential Area, Tamale, lying along North East of Tamale - Bolgatanga Thrunk Road (233) 03720-27933/34 (233) 03720-27936 BURMA CAMP BRANCH Opposite the Burma Camp Post Office (233) 0302-767414 / 767645 ECOBANK REINSURANCE HOUSE BRANCH Reinsurance House 68 Kwame Nkrumah Avenue P. O. Box 1862 Accra (233)0302-240049 (233)0302-240056/9 ECOBANK TRUST TOWERS BRANCH Sobukwe Road (Farrar) Avenue (233)0302-238121 (233)0302-238387 ECOBANK TESANO BRANCH (233)0302-237317 (233)0302-237316 Tesano P.O.Box 1862 ECOBANK HOSPITAL ROAD BRANCH Hospital Road, Com 11 Junction (233)0303-300973 (233)0303-308460 ECOBANK KASOA BRANCH BAWJIASE RAOD (233)0302-862887 (233)0302-862886 BAWJIASE RAOD Ecobank Kantamanto Branch Tarzan House near Hotel De Horses (233)0302-678243 (233)0302-678246 ECOBANK MADINA CENTRAL BRANCH Old Road Taxi Rank Near Randy Pharmacy, Accra (233)0302-513321/2 (233)0302-513321 ECOBANK COMMUNITY 1 BRANCH Near TFS Building (233)0303-213705 (233)0303-213707 ECOBANK SUAME BRANCH Suame - Offinso Road, Kumasi (233)03220-44414 233-3220-30229 ECOBANK SSNIT HOUSE BRANCH SSNIT House, Harper Road Adum, Kumasi (233)3220-29254 (233)3220-21416/7 ECOBANK SAKUMONO BRANCH Ocean Waves Hotel, Near Sakumono Mobil Service (233)0303-413617 (233)0302-413617/8 ECOBANK OKOFO HOUSE BRANCH Ground Floor, Okofo House, Kwame Nkrumah Avenue Adabraka (233)0302-244835 (233)0302-254693 ASHTOWN EAST BRANCH Dr. Mensah Traffic Light, Kumasi (233)03220-80552/6 (233)03220-80699 ECOBANK HIGH STREET BRANCH Akosa Plaza opposite General Post Office Asafoatse Nettey Street (233)0302-673097 (233)0302-673108 ECOBANK KWASHIEMAN BRANCH Kwashieman Road, P.O.BOX 1862 ACCRA (233)0302-7008751 ECOBANK KISSEIMAN BRANCH Close to Pure Fire Church, Kisseman Road P.O.BOX 1862 ACCRA (233)0307008755/0244341765 ECOBANK EAST AIRPORT BRANCH Dede Plaza Near Action Chapel (233)0302-817061/2 (233)0302-817071 ECOBANK KWABENYA BRANCH Adjacent Champion Oil near Kwabenya Roundabout (233)0302-409241 ECOBANK OKPONGLO BRANCH Okponglo towards La Bawlashie Traffic Light, Legon P.O.BOX 1862 (233)0302922401/030-7008757 (233)-277-900125 ECOBANK ASHIAMAN BRANCH Plot No. Ash/b58 Ashaiman Market (233)03027051141 ECOBANK EVANDY HOSTEL BRANCH Legon Campus, Evandy Hostel (233)0307-051145 ECOBANK TWIFO BRANCH Twifo Oil Palm Plantation Estate Twifo Praso 0332 195513 ECOBANK BENSO BRANCH Benso oil Plam Plantation(BOPP) Estate Adum-Benso, Estates Western Region 0322092185/03220 902055 ECOBANK NEW ABEKA BRANCH New Abeka Branch, H/N B8/27 Flat Top - George Bush Highway, Akweteman 0289559780 ECOBANK COLLINS STREET Adjacent Arvo Hotel P. O. Box TD114, Takoradi Tel: (233)312024158, 24190 Fax: (233)312024173 ECOBANK DIRECT 158, North Labone Avenue Labone Accra Tel:(233)302797975/6/7 ECOBANK PREMIER BANKING No.2 2nd Ridge Link North Ridge, Accra

NOTICE OF MEETING NOTICE IS HEREBY GIVEN that the Annual General Meeting (AGM) of Ecobank Ghana Limited will be held at the College of Physicians and Surgeons, 54, Independence Avenue, Accra on Friday 6th day of May, 2016 at 10.30 am to transact the following business: AGENDA 1. TO CONSIDER AND ADOPT the Statement of Accounts of the Company for the year ended the 31st day of December, 2015 together with the Reports of the Directors and Auditors thereon. 2. TO DECLARE a Dividend. 3. TO RATIFY the appointment of Directors 4. TO RE-ELECT Directors. 5. TO AUTHORISE the Directors to fix the remuneration of the Auditors. A MEMBER entitled to attend and vote at the Meeting is entitled to appoint a Proxy to attend and vote in his/her/its stead. A Proxy need not be a Member of the Company. The appointment of a Proxy will not prevent a member from subsequently attending and voting at the Meeting in person. A Proxy Form is on the last page of the Annual Reports which should be completed and deposited with the Registrars at GCB Bank, Registrars Office, Thorpe Road, High Street, Accra not later than 3.00pm. on Thursday 5th May, 2016. DATED AT ACCRA THIS 1ST DAY OF FEBRUARY, 2016. BY ORDER OF THE BOARD AWURAA ABENA ASAFO-BOAKYE (MRS.) (COMPANY SECRETARY). 1

growth success is imperative for 2

contents Corporate review Corporate information 4 Financial highlights 10 Business review 11 Chairman s address 16 Managing Director s statement 20 Corporate social responsibility 22 Sustainability report 26 Directors report 33 Corporate governance 36 Report of independent auditors 40 Financial statements Consolidated statement of comprehensive income 41 Consolidated statement of financial position 43 Consolidated statement of changes in equity 44 Consolidated statement of cash flows 48 Notes to consolidated financial statements 50 Shareholder information 122 Five year financial summary 124 Proxy form 125 Resolution 126 3

BOARD OF DIRECTORS 2. Rosemary Yeboah (Mrs) 1. Thomas C. Awagu 3. Martin Eson-Benjamin 5. Evelyne Tall (Mrs) 6. Terence Ronald Darko (Chairman) 4. George Mensah-Asante 4

SECRETARY AUDITORS REGISTERED OFFICE REGISTRARS Awuraa Abena Asafo-Boakye 19 Seventh Avenue Ridge West Accra KPMG Chartered Accountants 13 Yiyiwa Drive, Abelemkpe P O Box GP 242 Accra Ecobank Ghana Limited 19 Seventh Avenue Ridge West Accra GCB Bank Limited Thorpe Road High Street Accra BOARD CHANGES DURING THE YEAR UNDER REVIEW Kofi Ansah : Retired 8th May 2015 Lionel Van Lare Dosoo : Deceased 9th May 2015 Terence Ronald Darko : Appointed Chairman on 4th August 2015 Martin Eson-Benjamin : Appointed Non - Executive Director on 4th August 2015 7. Samuel Ashitey Adjei (Managing Director) 9. Mariam Gabala Dao (Mrs) 10. Ernest Thompson Awuraa Abena Asafo-Boakye (Mrs) (Company Secretary) 8. Morgan Fianko Asiedu 5

CORPORATE PROFILES Terence Ronald Darko - Chairman Terence Ronald Darko is the Managing Director of Mechanical Lloyd Company Limited, a position he has held since 1978. He is a seasoned business executive who serves on the Board of Directors of several institutions. These include the Board of Trustees of the Social Security and National Insurance Trust (SSNIT), Governing Council of the Private Enterprise Foundation (PEF) and Board of Private Sector Development Strategy (PSDS II). He was appointed as the President of the Ghana Employers Association (GEA) in September, 2010. Mr. Darko holds Bachelor s degree in Business Studies from the University of London Samuel Ashitey Adjei - Managing Director Sam has been Managing Director of Ecobank Ghana Ltd since January 2006 with additional responsibilities as Cluster Head for countries within the Anglophone West Africa (AWA) region. Sam is a seasoned banker with over 25 years experience in the Ecobank Group. Various positions held prior to his appointment as the Managing Director include: Deputy Managing Director (DMD), Executive Director with oversight responsibility for the Corporate and Treasury Group of the Bank and Acting Managing Director of Ecobank Liberia. He holds a BSc in Statistics, and an MBA (Finance) from the University of Ghana, Legon. His tenure as Managing Director, ended on 31st March 2016. He is currently the Regional Executive for the Central Eastern and Southern Region, which comprises 18 countries. Evelyne Tall - Non Executive Director Evelyne Tall is currently the Chief Regulatory Officer of the Ecobank Group and Deputy Group Chief Executive Officer. Prior to that she was the Executive Director for Domestic Banking for the Group as well as the Regional Head for the Francophone West Africa Region. She started her career in 1981 with Citibank in Dakar. She left Citibank to join Ecobank Mali as Deputy Managing Director in 1998, and was made Managing Director in 2000. She was later transferred to Ecobank Senegal as Managing Director. She was appointed Regional Head of the Francophone West Africa Region in October 2005. Evelyne Tall holds a Bachelor s Degree in English (Dakar) and a diploma in International Trade, Distribution and Marketing from Ecole d Administration et de Direction des Affaires, Paris. George Mensah-Asante - Executive Director George is an accomplished banker, having played key roles in retail banking and treasury management over the past 23 years. Currently, he heads Ecobank Ghana s Consumer Bank business and has additional responsibilities as Cluster Head for the Anglophone West Africa. Prior to his appointment he was the Head, Retail Banking for Ecobank Ghana and was instrumental in growing the bank s branch network and deposit base. George also led the team that spearheaded the introduction of the Ecobank Visa Gold Credit Card; the first of its kind to be introduced in Ghana. His sterling role in the Retail Banking Department contributed immensely to Ecobank winning the Best Retail Bank in Ghana for 2014 and 2015 by the Asian Banker. George Mensah-Asante holds a BSc in Administration (Accounting) and an Executive MBA (Finance) from the University of Ghana, Legon. He has also attended several high profile local and external training programs. These include; Treasury Bourse Game organized by Citibank, Effective Risk Management by the Ecobank Group and a Management Development program for African Bankers organized by Chase Manhattan Bank, New York. Mariam Gabala Dao - Non-Executive Director Mariam has over 22 years of diversified professional experience in development finance within both the private and public sectors in Cote D ivoire. She is currently the Regional Representative for the Francophone Africa of the Ecumenical Development Co-operative Society (SCOD). She holds a Diploma (finance/accounting option) from the Higher Commercial School, Abidjan. 6

Morgan Fianko Asiedu - Executive Director Morgan has been with the Ecobank Group since February 1992. He was appointed Executive Director of Ecobank Ghana (EGH) with oversight responsibility for the Legal, Human Resource and Compliance Departments in September 2012. Prior to this appointment he was the Group General Counsel and Company Secretary of Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group. In this role Morgan was Chief Legal Counsel to both the Board and Management of ETI. Before assuming the position of Group General Counsel in July 2010, he was Company Secretary and Head of the Legal Department for EGH. In this role, Morgan was part of the Management team that transformed EGH from a two branch merchant bank into a universal bank with several branches across the country. Other positions held in EGH include Head of Administration and Head, Legal & Credit Admin Department. An alumnus of Mfantsipim and Achimota Schools, Morgan qualified as a lawyer in 1989 and is a member of both the Ghana Bar and the International Bar Association. He holds Bachelor s and Executive MBA Degrees both from the University of Ghana. Rosemary Yeboah - Non-Executive Director Rosemary is an experienced Banker with over 22 years banking experience working with International Banks in the United Kingdom, Ghana and Southern Africa, including Standard Chartered Bank and Credit Suisse First Boston, and has been with the Ecobank Group since 2008. She has held various positions within the Ecobank Group including Group Cluster Head; Corporate Banking-WAMZ region, Group Head, Multinational & Regional Corporates, with responsibility for managing the Networked Corporate Clients within the Bank, and Regional Head, Corporate Banking, EAC. She holds a BA (Hons) in Economics from the University of Kent, Canterbury, UK and an MA, Economics, from the Université De Grenoble, France, and an MBA from the Laureate University of Liverpool, UK. She has also had Leadership exposure with the Centre for Creative Leadership, and University of Oxford, SAID Business School, UK. Thomas C Awagu - Non-Executive Director Thomas C Awagu was a pioneer member of the Board of Ecobank Nigeria Plc where he served for several years. He also served as chairman of the Building Committee and Board Credit Committee at different times. He is currently the President of both the Institute of Directors Nigeria and the Nigerian- British Chamber of Commerce. He is also the Treasurer of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture. TC Awagu holds Bachelor s and Master s degrees in Architecture from Ahmadu Bello University, Zaria and is the pioneer managing director of Pyramids Plc, a multi-disciplinary firm of architects, engineers and cost consultants. Ernest Thompson - Non-Executive Director Currently the Director- General of the Social Security and National Insurance Trust (SSNIT), Mr. Ernest Thompson has over thirty- one years of experience with the institution to his credit. Over the period, he has served in various capacities including Solicitor and Legal Advisor, Deputy Head of Human Resources, Solicitor Secretary and General Manager/General Counsel. Prior to his current appointment, he was on secondment from SSNIT to the Golden Beach Hotels (La-Palm Royal Beach Hotel, Elmina Beach Resort, Busua Beach Resort) as Chief Executive Officer. He has also represented SSNIT on a number of Boards either as Chairman, Member or Company Secretary Mr. Thompson holds an LLB (University of Ghana, Legon), MBA (University of Wales Cardiff Business School) and Certificate in Corporate Law Securities and Finance (North Western University, School of Law, Chicago, U.S.A.). Martin Eson-Benjamin - Non-Executive Director Martin served from November 2006 to May 2014 as the CEO of the Millennium Development Authority (MiDA), Prior to this, he was the CEO of Empretec Ghana Foundation, serving concurrently as a member of the Presidential Commission on Pensions from 2004 to 2006. This was subsequent to a very successful career, spanning over thirty years (1972-2004) in Unilever Ghana s Lever Division, where he rose to become the Marketing Director. He served as the Chairman and first Ghanaian Managing Director of the Kumasi Brewery Limited (KBL) in 1995, a joint venture of Heineken and Unilever and then as Managing Director of the Ghana Breweries Limited (GBL), a Heineken International s subsidiary in 1997, bowing out as Chairman of the GBL Board in 2004. Martin currently chairs the Enterprise Insurance Company Limited, Enterprise Properties Limited and the Advisory Board of the University of Ghana s College of Health Sciences and is a member of the Board of CFAO Ghana Limited. He was named Marketing man of the year by the Chartered Institue of Marketing Ghana in 1994. In 2008, he was honoured by the State as Officer of the Order of the Volta, for his contribution to Industry. He holds a BSc degree in Administration from the University of Ghana. Awuraa Abena Asafo-Boakye - Company Secretary Awuraa Abena Asafo-Boakye is the Company Secretary and Head of the Legal Department. She has been with Ecobank Ghana Limited since 1996 and has held various positions including Head, Human Resources with additional responsibility for the Anglophone West Africa region. Prior to this, she worked as a Legal Practitioner at Sena Chambers, a leading law firm in Ghana. Awuraa Abena holds an LLB degree as well as an Executive MBA (finance) degree from the University of Ghana, Legon. 7

MANAGEMENT 1 2 3 4 5 6 7 8 1. Edward Botchway (Chief Finance Officer), 2. Valerie Bruhl (Head, Operations), 3. Daphne Oppong (Head, Human Resource), 4. George Mensah-Asante (Executive Director, Consumer Bank), 5. Fiifi Brandful (Head, Operations & Information Technology), 6. Morgan Asiedu (Executive Director, Legal, Compliance & Human Resource), 7. Raymond Fordwuo (Business Manager / Managing Director s Special Assistant), 8. Awuraa Abena Asafo-Boakye (Company Secretary & Head, Legal), 8

TEAM 9 10 11 12 13 14 15 16 9. Samuel Ashitey Adjei (Managing Director), 10. Joana Mensah (Head, Risk Managemnt), 11. Ofei Agyekum (Head, Internal Control), 12. Nana Araba Abban (Head, Client Engagement), 13. Henry Ampong (Head, Corporate Bank), 14. Rita Tsegah (Head, Venture Capital), 15. Albert Bartlett-Mingle (Head, Internal Audit), 16. John Nyaaba (Head, Treasury). 9

FINANCIAL STATEMENTS ECOBANK GHANA LIMITED FINANCIAL HIGHLIGHTS THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 AT 31 DECEMBER Total assets 6,691,810 5,767,608 6,587,487 5,669,630 Loans and advances to customers (net) 3,117,873 2,709,517 3,116,749 2,707,093 Customer deposits 4,837,950 4,234,434 4,664,513 4,028,124 Shareholders equity 889,753 798,423 881,028 783,871 FOR THE YEAR ENDED 31 DECEMBER Revenue 1,023,129 857,737 1,025,765 844,319 Profit before tax 458,560 446,941 461,079 433,537 Profit after tax 321,266 319,965 327,523 309,613 Dividend per share (Ghana pesewas) 84 79 84 79 Earnings per share (Ghana pesewas): - Basic 110 109 112 106 - Diluted 110 109 112 106 Return on average equity (%) 38 47 39 46 Return on average assets (%) 5.2 6.1 5.3 6.0 AT 31 DECEMBER Number of staff 1,465 1,463 1,459 1,460 Number of branches 77 79 77 79 10

BUSINESS REVIEW Treasury Treasury provides integrated solutions tailored to meet the needs of our corporate clients in Africa and beyond. The team is specialized to offer the following services: Solving treasury challenges by understanding clients needs and attitude to risk Providing liquidity management and trade solutions Streamlining payables and ensuring faster transactions Treasury also deals in money market instruments, manage currency interest rate risks for our clients and provide innovative products in Securities & Asset management. Custody Business The Custody business is well resourced to provide an innovative range of security services, including safekeeping and settlement, dividends collection and fund administration services for our corporate and institutional clients. The unit provides core capability that allows the various Business segments to deepen banking relationships with their clients, while also generating sustainable income and liquidity in a capital efficient manner. 2015 Highlights Revenue Treasury Income recorded an 8% increase from GHS 208 million prior year to GHS 226 million largely as a result of increased revenue from bills and bonds offset by margin compressions. Net trading income remained fairly flat at GHS 138m year-on-year, accounting for 61% of treasury s revenue. Profit before Tax Profit from operations at GHS149 million went up by 3% from GHS 145 million prior year mainly on the back of continued cost containment initiatives. Contribution towards total Bank income 22 % GHS 226m Revenue Profit before tax 208m 226m 134m 145m 149m 103m 2012 2013 2014 2015 59m 2012 93m 2013 2014 2015 11

BUSINESS REVIEW Corporate Bank The Corporate Banking division is specialized in providing financial solutions to Global, Regional & Public corporates and Financial institutions & International organizations. The division operates a client-centric approach centered on the five main business segments below: Global Corporate as a unit primarily focuses on Global Conglomerates and Multinational Corporations Regional Corporate unit deals with businesses with headquarters and operations in Middle Africa whose operations are regionally coordinated Public Corporates as a unit focuses on Parastatal Companies and major state Institutions Financial Institutions and International Organization unit provides world class banking solutions to Multinational & Bilateral Institutions, Embassies, NGOs etc 2015 Highlights Revenue The performance of Corporate Bank in 2015 reflected another year of consolidation against a backdrop of geopolitical and economic headwinds, many of which could not have been foreseen at the onset of the year. The business delivered strong growth of 40% in revenue from GHS 270m in 2014 to GHS 378m buoyed by noninterest income from cash management and trade transactions. Net interest spread and margin both fell marginally, reflecting lower yields on customer lending. Profit before Tax Profits from operations also went down by 5.8% from GHS 172 million to GHS 162 million. Local Corporates Unit provides tailored financial solutions to local corporates with annual turnover exceeding $20m. Corporate Bank provides support to corporate clients through the provision of core banking products such as lending, deposits and transaction banking services whilst also offering client expertise in trade and cash management. Our cash management solutions are designed to integrate with our clients business systems and are delivered via our Internet banking system, OMNI hostto-host delivery channel, and SWIFT. Through a unique process of combining the development of our cash management solutions and delivery channels, Corporate Bank brings truly innovative solutions to its clients. This enables us to meet the varying and sometimes complex needs of corporate clients whilst ensuring capital efficiency. Contribution towards total Bank income 37 % GHS 378m 12

BUSINESS REVIEW Revenue Profit before tax 378m 270m 193m 172m 162m 128m 2012 2013 2014 2015 113m 2012 2012 115m 2013 2014 2015 Loans and advances Customer deposits 2,428m 1,925m 1,290m 1,712m 1,329m 1,787m 637m 2012 2013 2014 2015 880m 2012 2013 2014 2015 13

BUSINESS REVIEW Domestic Banking The Domestic Bank (DB) operates 5 business segments made up of: Personal Banking: Which caters to a broad spectrum of Individuals including professionals, civil servants and Africans in the diaspora SME: Provides services to small scale enterprises whose annual revenues are $ 5 million or lower and operate within the national borders Medium Local Corporate: Oversees the banking needs of mid-sized locally owned firms with annual turnover between $5m and $20m Public Sector: Which serves Municipal, District and Local governments as well as non-governmental Organisations Cards & ebanking: A unit tasked with delivering card and alternate channel solutions to individuals and small businesses. Domestic Bank provides flexible and yet effective solutions via a network of state-of-the-art retail branch formats, and innovative digital offerings that aim to deliver a simple, secure and seamless customer experience. 2015 Highlights Launch of South African Airlines Voyager Credit Card In 2015, Ecobank in partnership with South African Airlines launched the SAA Voyager Credit Card. The SAA Voyager Credit Card is a Co-Branded credit card between Ecobank and South African Airways. This is the first Co-branded Credit card to be issued in Ghana. The card allows a holder to earn miles by either flying on SAA or making card purchases and is accepted in over 220 million shops and businesses in more than 10 countries. The card comes in gold and platinum options and offers card holders with up to 45 days interest-free period, access to monthly electronic statements, competitive interest rates amongst others. The cards are available to both Ecobank customers and non- customers. Launch of ECOBANK GHANA SME CLUB: The bank successfully launched the Ecobank Ghana SME Club in 2015. This Club looks to reward Ecobank s loyal SME clientele by assisting them in the development of their businesses through capacity building and networking whilst leveraging on Ecobank s presence in 36 African countries to facilitate trade and promote growth. Key benefits / initiative areas are: Networking opportunities among Club members: Member referral programs etc.; Access to a chat room where members can exchange ideas; Access to industry research information and global business and economic trends Capacity Building: From internally organized seminars Through external fora organized by consultants and development partners Access to Markets: Leverage on Ecobank s network across 36 countries in Africa as well as representative offices in Beijing, Dubai, London, and Paris Access to Finance: Dedicated financial advisory services, Advisory services on FX & Interest rate movements, Alternate finance channels and instruments e.g. suppliers credit, equity markets etc.; Competitive pricing - discounts from our partners (insurers, auditors, valuers etc.). Revenue Domestic Bank generated GHS 420 million in operating Income before impairment losses, contributing more than 41% of Ecobank Ghana s total, whiles improving performance and profitability in the year under review. Key business drivers demonstrated strong growth. Net loans declined by 31% due to reclassification of our local corporate business from Domestic to Corporate bank in 2015; to close the year at GHS 690m. Total customer deposits was up 19% to finish the year at GHS 2.9 billion, with growth concentrated in current and savings accounts. Profit before Tax At the end of 2015 Domestic Bank records Net Profit before Tax of GHS 148m, a 14% up from prior year s GHS 130m. This performance underscores the efficient sales strategies of its employees and robust cost containment culture of management. 14

BUSINESS REVIEW Contribution towards 41 % total Bank income GHS 420m Revenue Profit before tax 420m 263m 334m 130m 148m 191m 2012 2013 2014 2015 15m 2012 2012 60m 2013 2014 2015 Loans and advances Customer deposits 997m 760m 837m 690m 1,918m 2,448m 2,913m 1,584m 2012 2013 2014 2015 2012 2013 2014 2015 15

A word from OUR CHAIRMAN Dear Shareholders, OUR JOURNEY HAS BEEN AN EXCITING ONE DECORATED WITH SIGNIFICANT MILESTONES. A year ago, we were deeply shocked and grieved by the sudden demise of our board chairman, Mr. Lionel Van Lare Dosoo who passed on just two days after addressing this general assembly at our last AGM. Lionel was a real treasure to not only us at Ecobank but an illustrious son of the nation as well. During our shared working life on the Ecobank board, I admired his ingenuity, humor and ability to steer the affairs of the board and bank in the right direction. His propositions were invaluable. On behalf of the board members and staff of Ecobank Ghana, I once again extend our sincerest condolences to his family. He will be missed dearly. Fellow Shareholders, 2015 was my first year as chairman of this board and I feel proud to be part of the Ecobank story. During my short tenure so far, I have witnessed the grit and commitment with which the management and staff of Ecobank execute their daily mandates to provide great returns on shareholder investments. I commend them for their diligence. As we marked our twenty fifth anniversary in 2015 as a bank, our journey has been an exciting one decorated with significant milestones. Our accomplishments signify consistent growth as a company with the right people, quality service offerings and positive shareholder value. I believe our best days are ahead and I want to thank you all for being part of this journey. MACRO-ECONOMIC REVIEW World Economic Outlook (WEO) reports in 2015 showed that global economic activity remained subdued. Growth in emerging market and developing economies while still accounting for over 70 percent of global growth declined for the fifth consecutive year, while a modest recovery continued in advanced economies. The IMF January 2016 WEO report projects global growth at 3.4 percent and 3.6 percent in 2016 and 2017 respectively. Similarly, the Ghanaian economy in 2015 experienced significant challenges as a depreciating base currency and high inflation resulted in slower than anticipated GDP growth and rising interest rates. The government s almost $1billion Extended Credit Facility (ECF) with the International Monetary Fund (IMF) kick-started in 2015, and has so far been successfully implemented, with the IMF noting positive reviews on the country s performance so far. That notwithstanding, the tight fiscal policy coupled with global challenges such as falling commodity prices and a slowdown in growth in major economies like China, took its toll on local businesses, resulting in slower economic activities. At the industry level, the banking sector experienced declining growth in balance sheet assets, revenues and profitability. Despite this industry downward trend, Ecobank Ghana continued to support our customers and communities. Over the course of last year, we maintained our leadership position in the market place and continued to improve customer satisfaction and foster innovation. We also delivered on our commitments including e-banking products, cost discipline and capital requirements. FINANCIAL REVIEW By understanding the needs of our customers and meeting these needs through our wide range of products and services, we have maintained consistent growth on yearly basis and in all key financial indicators. We recorded Revenue in excess of GHS1billion in 2015 - a growth of 19% over 2014 performance of GHS858 million. The increase was primarily driven by net interest income. It is important to note that this is the first time a bank in Ghana has earned revenue in excess of one billion cedis. Net interest income increased by 23% driven by increased lending in our key customer segments and higher yields on government bills and bonds. Non-interest revenue at GHS341 million, was a modest increase of 13% from the prior year, predominantly driven by higher fees and commissions and partially offset by lower foreign exchange income. Net Fee and commission income increased 23%, reflecting impressive growth in fees and commissions on loans and cash management income. Trading income remained flat at GHS139 million, driven by lower foreign exchange income reflecting foreign exchange challenges experienced by the country during the year 2015. Total Impairment charges on loans and advances at GHS116million is underpinned by the 15% growth in the loan book and also reflects the general downturn in economic activities resulting in increased provisioning. Operating expenses at GHS450 million represent a 19% growth from the prior year figure, driven by growth in the general cost of living and higher utility prices during the period. Our cost income ratio was 43.96% below our benchmark of 50%. 16

Profit before tax increased by 3% to GHS459 million. Tax expenses were GHS137million for 2015. We therefore ended the year with a posttax profit of GHS321 million. Basic earnings per share was GHS1.10 compared to GHS1.09 last year. Our capital ratios were impressive with a return on equity of 38% and a return on asset of 5.2%. Our balance sheet grew by 16% to GHS6.7 billion compared to GHS5.8 billion a year ago. Loans and advances to customers was GHS3.1 billion - a growth of 15% from the prior period. Our loan portfolio reflects risk diversification across all business units. Our total customer deposits grew to GHS4.8 billion, an increase of 14%, reflecting increased customer business. Indeed, this is the largest share of customer deposits in the industry. We ended the year with a loan- deposit ratio of 68%. Total equity stood at GHS890 million, up 11%, from the previous year. Once again, Ecobank Ghana s credit ratings were affirmed at AA- (GH) and A1+ (GH) by the Global Credit Rating Company. The ratings are valid till December 2016 and reflect resilient profitability, adequate loan loss reserves and a conservative risk appetite. On the back of this performance, we propose a dividend of GHS0.84 per share, up from GHS0.79 declared last year and we thank you for entrusting us with your investments in the year 2015. BOARD CHANGES Mr. Kofi Ansah resigned from the board and was replaced by Mr. Martin Eson-Benjamin who joined the board during the year under review; Martin joined the Board as an independent non-executive Director. Mrs Felicity Acquah also joins the board this year. They both bring to the board valuable experience from various spheres of life. We welcome Martin and Felicity on board and thank Mr. Kofi Ansah for his much-valued contribution both to the main board and to the many committees he served on over the years in Ecobank. A FIRST IN ALL Dear shareholders, I am very excited to inform you that Ecobank Ghana was adjudged the Best Bank in Ghana by three top awarding bodies. Corporate Initiative Ghana (CIG), the Chartered Institute of Marketing Ghana (CIMG) and Euromoney who named Ecobank Ghana as the best bank in the most recent awarding year. Your bank, Ecobank Ghana stands as the only Ghanaian bank to earn all three prestigious awards in a single year. We are extremely proud of this achievement. CIG also awarded us, the Best Bank in Financial Performance and Enterprise Financing. Instinct Business awarded us the Business Bank of the Year and Best Provider of Cash Management Services. In all, we received a total of 18 awards in 2015. Congratulations to the management and staff. You have made us all proud. OUR SOCIAL RESPONSIBILITY Our commitment to invest in the longterm economic future of Ghana is highlighted, not just through the significant lending to customers, but also through the many social responsibility activities we engage in. In 2015, our Ecobank Day activities were aimed at providing a better future for underprivileged children. We devoted the day to twelve communities across the eight regions in the country. Various donations were made including the provision of 8 high quality treated boreholes and poly tanks, 3 year scholarships for 25 brilliant but needy pupils, medical equipment to beneficiary institutions such as La Nkwantanan School, Princess Marie Louis Hospital, Dzorwulu special School and Accra Psychiatric Hospital amongst others. We refurbished the St Michaels Junior High School at Kpando in the Volta region that was in a deplorable state. We also collaborated with MTN on a blood donation exercise where staff of both companies donated to the national blood bank. On June 3rd, 2015 the nation experienced a major disaster leading to loss of lives and major injuries. Ecobank Ghana donated various items including 6 patient monitors, 20 wheel chairs, catheters and 1000 packs of wipes to the 37 Military Hospital for the flood and fire victims. Other organizations that received our support during the year included; the Children s Heart Foundation, the Onuapa Foundation, Village of Hope and the Akuapem Community Foundation. In 2012, Ecobank helped launch and provide the initial investment for Invest in Africa (IIA), a partnership of companies working together to support local enterprise and investment into Ghana. In 2015 IIA launched an innovative online business platform called the African Partner Pool (APP) that makes it easier for large international and domestic companies to find and work with local suppliers in Ghana. The APP is a virtual marketplace where multinationals can connect with registered local suppliers to help them meet their business needs. For the first time the APP allows businesses in Ghana to promote their products and services to international and domestic buyers and view tender opportunities from across sectors all in one place. As a lead partner of Invest in Africa, Ecobank is proud to say that by the end of 2015, over 1,000 Ghanaian SMEs were benefiting from the African Partner Pool initiative and the business skills training programme with the AfDB was live and directly benefiting a further 120 local SMEs. APPRECIATION Our gratitude remains ultimately to the Almighty God for another successful financial year. I take this opportunity to thank our staff members, who are undoubtedly the driving force behind all our achievements. Their continued commitment to our values, to our customers and to one another is a source of personal pride to me. The board recognizes their professionalism and integrity. To my fellow shareholders and our customers thank you for your confidence and patronage. We acknowledge your right to invest and the options available to you. Your choice of Ecobank as the investment vehicle of your funds speaks volumes to us. We will continue to fulfill our duty of performance to you. Thank you and God bless us All. 17

WE BELIEVE WHAT WE CAN ACHIEVE 18

BUILDING A WORLD-CLASS PAN-AFRICAN BANK Ecobank is a full-service bank focused on sub-saharan Africa. We provide a broad range of products and services to governments, financial institutions, multinationals, international organizations, small and medium enterprises, micro businesses and individuals. Ecobank s dual objective is to build a world-class pan-african bank and to contribute to the economic development and financial integration of the African continent. We seek to provide our customers with convenient and reliable banking and financial products and services both locally and regionally. 19

OUR ACCOMPLISHMENTS TO DATE DESCRIBE WHAT MANY CALL THE AFRICAN DREAM A word from our MANAGING DIRECTOR Dear Shareholders, I welcome you all to our general meeting. 2015 marked 25 years of our existence in Ghana s banking landscape, and with your support we have achieved remarkable progress over the past two and half decades. Our accomplishments to date describe what many call the African dream. We have been at the forefront of Ghana s growing financial services industry, delivering strong financial performance yearly, and returning value to you our shareholders. It is worth noting that, whereas banks in the past competed mainly on the strength of their brick and mortar locations, the competitive arena has since experienced a paradigm shift that has now shaped product innovation and service quality. In today s banking space, technology has disrupted the modus operandi of financial service organizations. Immense opportunities now exist to improve customer engagement, develop customized service offerings, and create distribution channels that more efficiently cater to today s contemporary customers. As a pacesetter in this revolution, Ecobank and Western Union introduced a new service called Account Based Money Transfer (ABMT) on 28th July, 2015. ABMT is a service that allows all Ecobank account holders to receive their Western Union inflows directly into their account through our Retail Internet Banking platform. We also collaborated with South African Airlines (SAA) to launch a co-branded credit card known as SAA Voyager credit card on 31st July, 2015. The card enables our customers to earn air miles per qualified transaction. Additionally, we launched our Small and Medium scale enterprises (SME) Club in February 2015 to build the capacity of our SMEs in the areas of business growth, market expansion, and effective business management, while leveraging on our footprint on the continent to create easier market access and business opportunities for their products and services. Before I share our financial highlights for 2015, I would touch briefly on our operating environment. 20

ECONOMIC REVIEW On the economic front, a number of factors including the energy crisis, a second year of significant depreciation of the cedi and high interest rates in the domestic economy raised the general cost of living, and affected business and consumer confidence in 2015. To address these challenges, the Executive Board of the International Monetary Fund (IMF) approved a three-year financing arrangement under the Extended Credit Facility (ECF) for Ghana in an amount equivalent to SDR 664.20 million (180 percent of quota or about US$918 million) to support the country s medium-term economic reform program. So far, Ghana has performed well under the program, earning positive post-implementation reviews from the IMF. Headline Inflation Headline inflation rose from 17% in January 2015 to 17.7% in December, 2015. The increase during the year was driven largely by the depreciation of the cedi. We expect the BoG to continue its contractionary monetary policy to stem money supply and consumer spending in its effort to ease inflationary pressures. Interest Rates The Bank of Ghana policy rate increased to 26.0% at year-end 2015, from 21.0% at the beginning of the year as the Central Bank merged its policy rate with the Repo-rate. The interest rate on the 91-day Treasury bill for December 2015 was 23% (25% in January, 2015). As at December, the rates on 1 Year and 2 Year fixed notes stood at 23% and 24.25% respectively (22.50% and 22.30% at the end of December 2014) respectively. Currency Performance On the currency market, the Ghana cedi posted losses against its major trading currencies for 2015. This was however, not a smooth descent as activities of speculators against intense and direct interventions by the Bank of Ghana into the forex market resulted in wild swings of the currency throughout the year. By December 2015, the Ghana cedi had depreciated on the interbank market by 16% against the US dollar year-to-date. During the same period, the Ghana cedi depreciated by 11% and 6% against the pound sterling, and euro respectively. Going into 2016, anticipated rises in interest rates globally and the continuing fall in the prices of commodities is expected to have some impact on the growth of the economy. Gross Domestic Product (GDP) growth is expected to pick up from 2015 end-year forecast of 4.1% to about 5.4%. Well Positioned in Attractive Businesses Headlining our achievements in 2015 was our total income which grew by 19% despite a tough operating environment. Profits before tax, also increased by 3% to GHS459 million in 2015, while total assets grew to GHS6.7 billion from GHS5.8 billion; a percentage increase of 16%. Our business segments, namely Corporate, Domestic and Treasury contributed to this performance. At year-end, Corporate Bank s revenue was GHS378 million, up 40% from a year ago. Domestic Bank reported revenues of GHS420 million up 10%, while Treasury reported GHS226 million, also up 8%. Overall Corporate Bank contributed 37% to the total bank s income, with Domestic Bank and Treasury contributing 41% and 22% respectively. Our balance sheet growth was underpinned by a loan book of GHS3.1 billion. Corporate Bank s loan book of GHS2.4billion was up 42% and represented 78% of our total loan book. The reclassification of our local corporate business from Domestic Bank to Corporate Bank in 2015, contributed to the high growth and concentration of the corporate loan book. Domestic Banks customer loans was stated at GHS690 million a decline of 31% from 2014 as explained above. Domestic Bank deposits was 60% of the total bank s deposit base of GHS4.8 billion while corporate s was 40%. Overall, our customer deposit was up 14% - thanks to our loyal customers. The above culminated in a loan deposit ratio of 68%. We are adequately capitalized with total equity of GHS890 million, an increase of 11% from GHS798 million in 2014. Our capital adequacy ratio at 15.9% is well above the regulatory threshold of 10%, emphasizing our strong capital position in the industry. OUR PEOPLE Our people continue to remain our definitive competitive advantage, and we constantly engage best-in-class management principles in building our leaders for the future of this institution. We conduct our business in an environment that is open, and a culture that promotes personal accountability and partnership. We believe it is important for our people to approach their areas of responsibility with the same commercial rigour applied by business owners to their enterprises. We expect high standards from our staff in their display of commitment to the business principles with which we operate. We are committed to building Ecobank into an employer of choice where employees are equipped to excel, and where exceptional performance is duly recognized and rewarded. CONCLUSION I thank my colleagues on the board for their wise counsel and contribution towards this noble achievement. I am grateful to my fellow Ecobankers for their commitment and resilience. On behalf of Ecobank Ghana, I extend appreciation to our customers, shareholders and all stakeholders for the continued support. On a personal note effective 1st April 2016 I have assumed the role of Regional Executive for the Central Eastern and Southern Africa region based in Kenya. I wish you all the best and you can be assured that the Board, management and staff will continue to grow the business. Thank you and God bless you. 21

2015 CORPORATE SOCIAL RESPONSIBILITY REPORT INTRODUCTION Ecobank Ghana is committed to ensuring that it has a positive impact on the communities in which it operates by going beyond generally expected standards in its support to these communities. The bank continually incorporates sustainable strategies and socially responsible practices in our operations. Gender equality, transparency, investment in green technologies, local community and employee engagement are key components of our Corporate Social Responsibility Agenda. WE GO BEYOND GENERALLY EXPECTED STANDARDS In line with its Corporate Vision, Ecobank Ghana remains committed to the economic development of the country as it recognizes the benefits of operating in a sound economic and social environment. As we give back to society both financially and non-financially, we continue to focus on the following areas; Education Health Employment Generation Underprivileged Individuals, groups and Institutions Environment Our Corporate Social Responsibility (CSR) expenditure increased by 16% from GHS 2.44 million to GHS 2.84 million by the end of 2015. CORPORATE SOCIAL RESPONSIBILITY EVENTS IN 2015 Our major activities embarked on during the year are summarized below: Donation to 37 Military Hospital ECOBANK DAY Ecobank Day is a community day during which staff of the Ecobank Group across its 36 affiliates devote the day to serving the communities in which we operate. The day was celebrated in Ghana across the Ecobank network with the theme Every Child Deserves a Better future. Various donations were made including the provision of eight (8) high quality boreholes (with water treatment plants) and poly tanks, 3 year scholarships for 25 brilliant yet underprivileged pupils. Medical equipment and various food items were presented to twelve (12) communities across eight ( 8) regions in the country to mark the day in Ghana. 22

Ecobank Day Administration block for Village of Hope College. Ecobank Day Ecobank Day EDUCATION VILLAGE OF HOPE Ecobank financed the construction of an Administration / Classroom Block for the Village of Hope College at Gomoa Fetteh (in the Central region of Ghana) at a cost of GHC 300,000. Village of Hope is dedicated to providing lasting hope to orphans and vulnerable children by providing them with shelter, education and medical care in a loving family environment. The Village of Hope mission is to care for orphaned, abandoned, destitute and needy children. ST MICHAEL S JHS Ecobank refurbished the St Michael s JHS at Kpando in the Volta region which was in a deplorable state to give it a facelift. TEPA RC PRIMARY SCHOOL A set of school parade drums, football jerseys, reading books, exercise books, pens, pencils and crayons were donated to Tepa R/C Primary School to enhance effective teaching and learning at the basic level. MARSHALLAN RELIEF DEVELOPMENT SERVICES Ecobank Ghana in collaboration with the Marshallan Relief Development Services has made a donation in support of Girls Mathematics and Science Education in deprived communities across the country. This donation is aimed at reversing the poor performance of girls in mathematics and Science and also to boost their interest in these areas. BIBLIONEF Ecobank Ghana supported Biblionef to organize a reading festival at Hohoe in the Volta Region. This initiative provided reading materials for the underprivileged. Story books translated in the local dialect were provided, thus creating an opportunity for every child to learn in his/her own language. NATIONAL PARTNERSHIP FOR CHILDREN S TRUST (NPCT) Ecobank awarded scholarships to 19 brilliant but underprivileged students, to pursue higher education under NPCT auspices. PRAMPRAM WESLEY METHODIST BASIC SCHOOL Ecobank made a donation towards the completion of a two unit classroom to Prampram Wesley Methodist Basic School. This initiative eased the congestion in the classrooms to facilitate effective teaching and learning. MENTORING Ecobank Ghana during the year put in place a mentoring program to mentor young students and entrepreneurs across the country. This is a non-financial support that Ecobank has put in place to mentor the younger generation. In view of that, a mentoring team comprising 10 senior management members of staff has been set up to collaborate with NGOs to mentor the youth. 23

HEALTH BLOOD DONATION EXERCISE Ecobank Ghana in partnership with MTN organized a blood donation exercise which resulted in over 1000 pints of blood for major hospitals in Ghana to save lives. JUNE 3RD DISASTER AT THE 37 MILLITARY HOSPITAL Ecobank Ghana made a contribution to the June 3rd Disaster victims at the 37 Military Hospital by donating 6 patient monitors, 20 wheel chairs, catheters and 1000 packs of wipes. CHILDREN S HEART FOUNDATION Ecobank Ghana financed the full cost of open heart surgery for two underprivileged children at the National Cardiothoracic Centre. ONUAPA FOUNDATION Ecobank partnered with Onuapa Foundation, an NGO in the Eastern Region to offer medical screening to the aged within the community. AKUAPEM COMMUNITY FOUNDATION Ecobank supported the Akuapem Community Foundation to organize a medical outreach program and a health talk in respect of women and adolescent reproductive health. EMPLOYMENT GENERATION WOMEN IN FINANCE This is an initiative which trains and inspires women entrepreneurs to take advantage of financial opportunities and develop their businesses. Ecobank sponsored this worthy cause to promote excellence for women in business. ABURI OLD GIRLS ASSOCIATION 91 YEAR GROUP A donation was made to the Aburi Old Girls in respect of their Entrepreneurship Fund. This was the initiative of the class of 1991 which is in line with our focus on reducing unemployment in the country by way of job creation. SECURITIES AND EXCHANGE COMMISSION Ecobank Ghana sponsored the Securities and Exchange Commission to help project the capital market in Ghana as a platform for economic growth. INTERNATIONAL ADVERTISERS ASSOCIATION Ecobank Ghana supported the International Advertisers Association to organize a conference which was aimed at promoting businesses and help Ghanaian Industry players to understand the current compliance issues affecting investment in Ghana. 24

UNDERPRIVILEGED INTERNATIONAL MIGRATION FOR ORGANISATION Ecobank Ghana supported the International Migration for Organization to rescue, rehabilitate and reintegrate children in Ghana. OTHER AREAS ASANTEHEMAA GOLF TOURNAMENT Ecobank supported the Asantehemaa Golf Tournament in Kumasi to promote the development of junior golfers. BIBLE SOCIETY OF GHANA The Bible Society of Ghana received a donation from Ecobank to organize a forum which was aimed at promoting the use of the Bible as a tool for leadership Transformation. Ecobank Day Ecobank staff donates blood Ecobank Day Ecobank day 25

ECOBANK GHANA SUSTAINABILITY REPORT 2015 SUSTAINABLE DEVELOPMENT IS THE PATHWAY TO THE FUTURE. SUSTAINABILITY IN BANKING IS A FRAMEWORK TO INCORPORATE ECONOMIC GROWTH, ACHIEVE SOCIAL EQUITY, EXERCISE ENVIRONMENTAL STEWARDSHIP AND STRENGTHEN GOVERNANCE - TERENCE RONALD DARKO, CHAIRMAN, ECOBANK GHANA BOARD INTRODUCTION Ecobank Ghana continues to see sustainability as a key success factor for business development. In the year 2015, the bank embarked on various activities to promote environmental sustainability. Sustainability is about creating long-term value by ensuring that our customers make informed financial decisions and our products and services are accessible. In addition, we integrate environmental and social criteria into our business operations, and we remain an employer of choice. We have an opportunity to use our scale, reach and expertise to help society achieve long-term sustainability. environmental and social criteria into our business operations, and we remain an employer of choice. Ecobank Ghana s commitment to sustainability was demonstrated through the provision of financial support to sustainable projects, promoting environmental sustainability, and capacity building programs. SUPPORTING SUSTAINABLE PROJECTS In accordance with the Ecobank s Environmental and Social Risk policy, business managers ensure effective environmental management practices exist in all their activities, products and services. Ecobank Ghana finances projects only after they have been designed and maintained in a manner consistent with the Bank s Environmental & Social (E&S) Risk Management Policy guidelines. In this regard, transactions involving two hundred and forty nine (249) clients were screened and categorized. For those projects categorized as Medium and High Risk appropriate action plans and mitigants were put in place and effectively monitored. The most dominant segments were the oil and gas, manufacturing and the mining sectors. 26

E & S RISK CATEGORY FOR SCREENED TRANSACTIONS Number of transactions In 2015, Ecobank Ghana financed a number of its customers to supply and install solar street lighting and solar photovoltaic (PV) systems to businesses and individuals as well as the construction of a biogas sanitation system. In collaboration with Energy Commission and other governmental agencies the bank provided financing for the importation of solar PV panels and systems. We also participated in the Government of Ghana initiative to provide solar photovoltaic (PV) facilities to two hundred thousand (200,000) beneficiaries in the private, public and industrial sectors (The Rooftop Solar Programme). Ecobank Ghana also supported a waste water treatment project in the mining sector. The client s activities involved the use of mechanical and chemical processes to neutralize hazardous waste water from mines. The end-product of the process is clean safe water that in some instances are re-used by the mining companies. PROMOTING ENVIRONMENTAL SUSTAINABILITY Ecobank Ghana recognises the impact of our changing environment and relates this to the need for businesses to be more conscious about their environment. In managing its own operations, Ecobank Ghana introduced five solar powered off-site ATMs during the year 2015. Plans are underway to place more off-site ATMs on solar power. Ecobank Ghana Limited is dedicated to supporting the development and utilization of renewable energy resources and will continue to support such initiatives in future. Emphasizing the importance of ensuring that information on climate change is well decimated, Ecobank Ghana supported efforts by institutions such as Earth Service Ghana to organize a symposium on Climate Change for youth and students in July 2015. 27

CAPACITY BUILDING In recognition of the importance of training in the area of sustainability, various programs were organized for staff both internally and externally. Officers responsible for sustainability participated in the Climate & Sustainable Energy Finance and Leadership Programs in Frankfurt, Germany and Cambridge, UK, respectively. Ecobank Ghana participated and contributed to workshops and conferences organized by various organisations., departments and agencies. Most of these workshops were aimed at addressing the eminent threat of climate change. Notable are workshops organized by the German Development Agency (GTZ), Environmental Protection (EPA) and the Ministry of Finance and Economic Planning on renewable energy finance and policy guidelines on climate change. Ecobank Ghana is also committed to the Global Compact principles and this commitment was recognized when the Bank was elected as a member on the National Steering Committee of the UN Global Compact Network in Ghana. In further recognition of our commitment to the principles of sustainability, Ecobank Ghana was appointed to chair the Committee on Sustainable Banking Principles, Ghana. We deem it a privilege to bring our experience and years of investment in Sustainable Banking practices to the benefit of the banking sector in the country. 28

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Facilitating trade and investment with Ecobank At Ecobank, we see a breathtaking future for Africa. That s why we re ready to help companies achieve their ambitions with a full range of corporate banking services, including: International trade solutions Cash management Supply chain finance Corporate internet banking platform (OMNI) Call us toll-free on short code 3225 (MTN, Airtel and Vodafone only), or call our Contact Centre on (233) 30 221 3999 (normal charges apply) or visit us online. The future is pan-african ecobank.com 31

Ecobank Internet Ecobank POS the convenient way to pay. Banking banking that suits your lifestyle. Choose the easy way to bank sign up to Ecobank Internet banking today. Visit ecobank.com or ask in branch for details. Whenever, wherever banking ecobank.com 32 Ecobank Annual Report 2015

STATEMENTS REPORT OF THE DIRECTORS TO THE MEMBERS OF ECOBANK GHANA LIMITED The Directors submit their report together with the financial statements of the Bank and its subsidiaries (together the Group) for the year ended 31 December 2015. DIRECTORS RESPONSIBILITY STATEMENT The directors are responsible for the preparation of consolidated and separate financial statements that give a true and fair view of Ecobank Ghana Limited, comprising the statements of financial position at 31 December 2015, and the statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Standards and in the manner required by the Companies Act, 1963 (Act 179) and the Banking Act, 2004 (Act 673) as amended by the Banking (Amendment) Act, 2007 (Act 738). In addition, the directors are responsible for the preparation of the directors report. The directors are also responsible for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and for maintaining adequate accounting records and an effective system of risk management. The directors have made an assessment of the ability of the Bank and its subsidiaries to continue as going concerns and have no reason to believe that the businesses will not be going concerns in the year ahead. The auditor is responsible for reporting on whether the consolidated and separate financial statements give a true and fair view in accordance with the applicable financial reporting framework. PRINCIPAL ACTIVITIES The Bank s principal activities comprise corporate, investment and retail banking. There was no change in the nature of the Bank s business during the year. SUBSIDIARIES AND ASSOCIATE The Bank has the following wholly owned subsidiaries, which are incorporated in Ghana and provide the following services: Ecobank Investment Managers Limited - Management of investments Ecobank Leasing Company Limited - Finance lease facilities Ecobank Venture Capital Fund 1 Limited - Venture capital Ecobank Capital Advisors Limited - Fund management The Bank holds a 49% interest in Pan African Savings and Loans Company Limited, a company incorporated in Ghana, which provides microfinance to small and medium scale enterprises. Ecobank Annual Report 2015 33

FINANCIAL STATEMENTS REPORT OF THE DIRECTORS TO THE MEMBERS OF ECOBANK GHANA LIMITED (CONT D) FINANCIAL STATEMENTS AND DIVIDEND The financial results of the Bank for the year ended 31 December 2015 are set out in the attached financial statements, highlights of which are as follows: 2015 2014 GH 000 GH 000 Profit after tax (attributable to equity holders) 327,523 309,613 to which is added the balance brought forward on income surplus account of 249,030 127,926 576,553 437,539 out of which is transferred to the statutory reserve fund in accordance with the Banking Act an amount of (40,940) (77,403) (transfers to)/ release from the credit risk reserve of (40,188) 14,982 and prior year s dividend paid of (231,650) (126,088) (312,778) (188,509) leaving a balance to be carried forward in the Income Surplus account of 263,775 249,030 In accordance with section 29(c) of the Banking Act, 2004, (Act 673) as amended, an amount of GH 40.9 million (2014: GH 77.4 million) was transferred to the statutory reserve fund from the income surplus account bringing the cumulative balance on the statutory reserve fund at the year-end to GH 281.9million (2014: GH 240.9 million). The Directors recommend the payment of a dividend of 84 Ghana pesewas (2014:79 Ghana pesewas) per share amounting to GH 246,311,832.48 (2014: GH 231,650,413.88). The Directors confirm that to the best of their knowledge: the financial statements, prepared in accordance with applicable laws and the Bank s financial reporting framework, give a true and fair view of the Bank s financial position, performance and cash flows; and the state of the Group s affairs is satisfactory. 34 Ecobank Annual Report 2015

REPORT OF THE DIRECTORS TO THE MEMBERS OF ECOBANK GHANA LIMITED (CONT D) FINANCIAL STATEMENTS HOLDING COMPANY The Bank is a subsidiary of Ecobank Transnational Incorporated (ETI), a company incorporated in the Republic of Togo. ETI owns 68.93% of the issued ordinary shares of the Bank. APPROVAL OF THE FINANCIAL STATEMENTS The consolidated and separate financial statements of Ecobank Ghana Limited, as identified in the first paragraph, were approved by the board of directors on 22 March 2016 and signed on their behalf by: SIGNED CHAIRMAN Terence Ronald Darko SIGNED MANAGING DIRECTOR Samuel Ashitey Adjei January Ecobank 2015 Annual - Annual Report Report 2015 35

FINANCIAL STATEMENTS ECOBANK GHANA LIMITED CORPORATE GOVERNANCE COMMITMENT TO CORPORATE GOVERNANCE Corporate Governance is important to Ecobank as it seeks to implement the values of fairness, transparency, accountability, and responsibility to both shareholders and stakeholders. Ecobank recognizes, as a banking group, the critical nature of its relationships with its Regulators across the Group in executing its vision and in safeguarding the deposits of the general public and other lenders. This ensures that their needs and interests are taken into account in a balanced and transparent manner. Ecobank believes that, only good governance can deliver sustainable good business performance. governance practices are: (i) Good corporate governance enhances shareholder value (ii) The respective roles of shareholders, Board of Directors and management in the governance architecture should be clearly defined (iii) The Board of Directors should have majority membership of independent Directors, defined broadly as Directors who are not employed by the Group, or who are not affiliated with organizations with significant financial dealings with the Group. The Board is responsible for setting the institution s strategic direction, leading and controlling the institution and monitoring activities of executive management. As at 31 December 2015, the Board of Directors of Ecobank Ghana consisted of ten (10) members made up of an independent Nonexecutive Chairman, six (6) Non-executive Directors, four (4) of whom are independent and three (3) Executive Directors. These board members have wide experience and in-depth knowledge in management, industry and the financial and capital markets, which enable them make informed decisions and valuable contributions to the Group s progress. Regarding term limits, a non-executive director shall be elected for a maximum period of 9 years (3 terms of 3 years). An Executive Director shall retire as Director upon attaining the mandatory retirement age for employees or on termination of their employment for whatever reason. The Ecobank Group Corporate Governance Charter sets out the structures and processes followed by the Group to build credibility, ensure transparency and accountability across the Group. As a member of the Ecobank Group, Ecobank Ghana and its subsidiaries operate according to the Ecobank Transnational Incorporated (ETI) Group principles and practices on corporate governance. These principles and practices are guided by the Basel Committee standards on corporate governance, which constitute the best of international practice in this area. The key guiding principles of the Group s These principles have been articulated in a number of corporate documents, including the Bank s regulations, a corporate governance charter, rules of procedures for Boards, a code of conduct for Directors and rules of business ethics for staff. THE BOARD OF DIRECTORS The Board has adopted standard evaluation tools that help assess the performance of the Board, its committees and individual members on an annual basis. The Board met four (4) times during the year and undertook a training programme in the area of Risk Management for purposes of professional development. The Board has delegated various aspects of its work to the Governance, Audit and Compliance, Credit and Risk Management Committees. 36

CORPORATE GOVERNANCE (CONT D) FINANCIAL STATEMENTS GOVERNANCE COMMITTEE This committee is chaired by Mr. Terence Darko (the independent non-executive Board Chairman) and has as its members Madam Mariam Gabala Dao and Mr. Martin Eson Benjamin. The committee met three times in the year ended 31 December 2015. During the year under review, there was an external board evaluation conducted by PWC. The role of the committee includes: Handling relationships with regulators and third parties; Handling relationships with shareholders; Evaluating the performance of Board members and various committees; Reviewing all issues relating to good governance; and Reviewing and recommending the appointment of Directors. The role of the governance committee with regards to Human Resources includes: Periodic review of the organizational structure of the Bank to ensure it conforms to the standard Group structure; Setting criteria, in line with Group policies, for recruitment of staff; Ensuring human resource management policies align with the Group Human Resource policies; Evaluating the performance of management staff and making recommendations for approval by the Board; Recommending disciplinary actions against erring management staff; Recommending appropriate levels of remuneration and packages for staff; Reviewing succession plan for key positions; and Any other responsibilities as may be assigned by the Board. AUDIT AND COMPLIANCE COMMITTEE The Audit and Compliance Committee has as its Chairperson Mrs. Mariam Gabala Dao, an independent non-executive Director. This committee includes four (4) other non-executive members of the Board, Mr. Terence Darko, Mr. Thomas Chukwuemeka Awagu, Mr. Ernest Thompson and Madam Evelyne Tall. The Managing Director, Chief Finance Officer, Internal Auditor and if need be a representative of the external auditors sit in attendance. The committee met four (4) times in the year ended 31 December 2015. The role of the committee includes: Reviewing the internal audit function, its mandate and audit activities; Reviewing internal and external audit reports, particularly reports of regulatory and monetary authorities and supervising the implementation of recommendations; Facilitating dialogue between auditors and management on the outcome of audit activities; Proposing external auditors and their remuneration; Working with the external auditors to finalise the annual financial statements for Board approval; Reviewing the dividend policy and issues relating to the constitution of reserves; Reviewing quarterly, half-yearly and annual financial results before the Board s review and approval; Setting up procedures for selecting suppliers, consultants and other service providers and ensuring compliance therewith; Organising periodic discussions with the departments of Internal Audit and Finance department; Defining appropriate measures to safeguard assets of the Bank; Ensuring compliance with all applicable laws and regulations and operating standards; Reviewing, approving and following up major contracts, procurement and capital expenditures; Reviewing actual spending against budget; and Reviewing and approving proposals for extra-budgetary spending. 37

FINANCIAL STATEMENTS CORPORATE GOVERNANCE (CONT D) EXTERNAL AUDITORS External auditors are appointed through a bidding process and on a rotational basis of at most six years per the Central Bank regulations. The external auditors present and discuss their audit findings with the Board/Audit and Compliance Committee. During the year under review the auditors performed non-audit work relating to surveys for the Bank. The Board has confidence in the independence and integrity of the external auditors. KPMG our current auditors were appointed in 2011. KPMG has in place internal polices for the rotation of partners for its clients. INTERNAL AUDITORS The Internal Audit function of the Bank reports directly to the Board Audit Committee. Internal Audit provides independent, objective audit assurance designed to add value and improve the Bank s operations while ensuring the effectiveness of risk management, control, and governance processes. The Internal Audit department presents its reports to the Board Audit and Compliance Committee. RISK MANAGEMENT COMMITTEE The committee has as its Chairman, Mr Thomas Awagu. Other members are Mr. Eson- Benjamin and Mrs. Rosemary Yeboah The role of the committee includes: Reviewing and approving risk policy changes initiated by Management. Ensuring compliance with the bank s risk policies and statutory requirements prescribed by the regulatory or supervisory authorities. Reviewing periodic risk management portfolio reports and assess portfolio performance. Reviewing operational, market, reputational and legal risk management. Approving all credits within limits defined in Group Credit Policy and within the statutory requirements set by the respective regulatory and supervisory authorities; Reviewing and endorsing credits approved by executive management; Reviewing and recommending to the full Board, credit policy changes initiated by executive management; Ensuring compliance with the Bank s credit policies and statutory requirements prescribed by the regulatory and supervisory authorities; Reviewing periodic credit portfolio reports and assessing portfolio performance; and Approving exceptions, write-offs and discounts of non-performing credit facilities. BUSINESS CONTINUITY PLAN The Group has a business continuity and disaster recovery plan for its Head Office and branches that will enable it respond to unplanned significant interruptions in essential business functions that can lead to the temporary suspension of operations. It provides guidelines to fully recover operations and ensure coordinated processes of restoring systems, data and infrastructure to enable essential client needs to be met until normal operations are resumed. The plan is tested at least three times every year to assess the readiness of the Group to respond to unplanned interruptions of operations. SYSTEMS OF INTERNAL CONTROL The Group has a well-established internal control system for identifying, managing and monitoring risks. These are designed to provide reasonable assurance that risks faced by the Group are reasonably controlled. The corporate internal audit and compliance function of the Group plays a key role in providing an objective view and continuing assessment of the effectiveness of the internal control systems in the business. The systems of internal control are implemented and monitored by appropriately trained personnel, with clearly defined duties and reporting lines. CODE OF BUSINESS ETHICS Management has communicated principles in the Group s Code of Conduct to its employees to provide guidance in the discharge of their duties. This code sets the standards of professionalism and integrity required for the Group s operations, which covers compliance with applicable laws, conflicts of interest, environmental issues, reliability of financial reporting, bribery and strict adherence to laid down principles, so as to eliminate the potential for illegal practices. 38

CORPORATE GOVERNANCE (CONT D) FINANCIAL STATEMENTS WHISTLE BLOWING POLICY Ecobank Ghana believes in and has adopted the highest standards of ethical behaviour to ensure that any form of malpractice is dealt with and mitigating action taken. Employees are therefore encouraged to uphold these virtues by always acting in good faith and also alerting the appropriate authority of any identified malpractice, concern or suspicious activity or behaviour within the Bank. In all cases, employees who blow the whistle in good faith about perceived malpractices or concerns within the Bank shall be protected by the Bank. The Bank shall blow the whistle whenever its business relationships or customers act in breach with local laws and regulations or they do not adopt the required ethics required in conducting banking activities. The process for whistle-blowing is well documented in a Policy established by the Bank and made available to all staff. ANTI-MONEY LAUNDERING The Group also has an established anti-money laundering system in place in compliance with requirements of Ghana s Anti-Money Laundering Act, 2008 (Act 749). These include due diligence for opening new accounts, customer identification, monitoring of high risk accounts, record keeping and training and sensitization of staff on money laundering, which assist in reducing regulatory and reputational risks to its business. 39

INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF ECOBANK GHANA LIMITED 40 REPORT ON THE FINANCIAL STATEMENTS We have audited the consolidated and separate financial statements of Ecobank Ghana Limited, which comprise the statements of financial position at 31 December 2015, and the statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, as set out on pages 41 to 121. Directors Responsibility for the Financial Statements The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards and in the manner required by the Companies Act, 1963 (Act 179), and the Banking Act, 2004 (Act 673) as amended by the Banking (Amendment) Act, 2007 (Act 738), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, these financial statements give a true and fair view of the consolidated and separate financial position of Ecobank Ghana Limited at 31 December 2015, and of its consolidated and separate financial SIGNED BY: ANTHONY KWASI SARPONG (ICAG/P/1369) FOR AND ON BEHALF OF: KPMG: (ICAG/F/2016/038), CHARTERED ACCOUNTANTS, 13 YIYIWA DRIVE, ABELENKPE, P. O. BOX GP 242, ACCRA 22 MARCH 2016 performance and consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards and in the manner required by the Companies Act, 1963 (Act 179) and the Banking Act, 2004 (Act 673) as amended by the Banking Amendment Act, 2007 (Act 738). REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS Compliance with the requirements of Section 133 of the Companies Act, 1963 (Act 179) and Section 78 of the Banking Act, 2004 (Act 673) as amended by the Banking Amendment Act, 2007, (Act 738) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion, proper books of account have been kept and the statements of financial position and comprehensive income are in agreement with the books of account. The Bank s transactions were within its powers. The Bank generally complied with the relevant provisions of the Banking Act, 2004, (Act 673) as amended by the Banking Amendment Act, 2007 (Act 738).

FINANCIAL STATEMENTS ECOBANK GHANA LIMITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Interest income 6 843,564 693,442 790,961 660,590 Interest expense 7 (161,323) (137,722) (125,529) (117,658) NET INTEREST INCOME 682,241 555,720 665,432 542,932 Fees and commission income 8 189,245 152,654 189,253 152,647 Fees and commission expense 9 (3,883) (2,274) (3,883) (2,252) NET FEES AND COMMISSION INCOME 185,362 150,380 185,370 150,395 Lease income 10 3,682 1,969 3,674 1,957 Net trading income 11 138,857 139,198 138,351 138,665 Dividend income 12 3,487 5 23,438 5 Other revenue (13a) 9,500 10,465 9,500 10,365 155,526 151,637 174,963 150,992 REVENUE 1,023,129 857,737 1,025,765 844,319 Other Income (13b) 184 94 184 94 Impairment charge on loans and advances 14 (115,795) (32,025) (115,753) (31,916) Operating expenses 15 (449,806) (379,469) (449,117) (378,960) Operating profit 457,712 446,337 461,079 433,537 Share of profit of associates (net of tax) 39 848 604 - - PROFIT BEFORE INCOME TAX 458,560 446,941 461,079 433,537 Income tax expense 16 (137,294) (126,976) (133,556) (123,924) PROFITS AFTER TAX FOR THE YEAR 321,266 319,965 327,523 309,613 THE NOTES ON PAGES 50 TO 121 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 41

FINANCIAL STATEMENTS STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2015 (CONT D) NOTE THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 PROFIT AFTER TAX FOR THE YEAR 321,266 319,965 327,523 309,613 OTHER COMPREHENSIVE INCOME Items that may be reclassified Subsequently to profit or loss Change in value of available for sale investment securities 35(b) 2,285 3,051 1,712 2,548 Net amounts transferred to profit or loss 35(b) - 3,813-3,813 Gains on revaluation of property 35(a) - 44,137-44,137 Income tax relating to components of other comprehensive income 17 (571) (7,384) (428) (7,258) Other comprehensive income for the year, net of tax 1,714 43,617 1,284 43,240 Total comprehensive income for the year 322,980 363,582 328,807 352,853 Profit for the year attributable to: Equity holders of the Bank 321,266 319,965 327,523 309,613 Comprehensive income for the year attributable to: Equity holders of the Bank 322,980 363,582 328,807 352,853 EARNINGS PER SHARE Basic and diluted (in Ghana pesewas) 19 110 109 112 106 THE NOTES ON PAGES 50 TO 121 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 42

FINANCIAL STATEMENTS ECOBANK GHANA LIMITED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2015 ASSETS NOTE THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Cash and balances with Bank of Ghana 20 772,942 609,153 772,942 609,153 Government securities 21 726,726 732,856 592,107 630,645 Loans and advances to Banks 22 1,450,007 1,465,640 1,448,930 1,458,413 Loans and advances to customers 23 3,117,873 2,709,517 3,116,749 2,707,093 Investment securities: availablefor-sale 24 2,148 1,522 2,148 1,522 Investment in subsidiaries 25 - - 16,773 16,773 Investment in associates 39 7,387 6,539 4,841 4,841 Intangible assets 26 8,852 5,699 8,852 5,699 Deferred tax 17 986 3,669 701 3,265 Income Tax 16 16,809-16,524 - Property and equipment 27 252,833 133,931 252,832 133,915 Other assets 28 335,247 99,082 354,088 98,311 TOTAL ASSETS 6,691,810 5,767,608 6,587,487 5,669,630 LIABILITIES Deposits from Banks 29 205,123 176,394 286,934 302,211 Customer deposits 30 4,837,950 4,234,434 4,664,513 4,028,124 Other liabilities 31 437,008 330,142 433,036 327,318 Income tax 16-1,088-979 Borrowings 32 321,976 227,127 321,976 227,127 TOTAL LIABILITIES 5,802,057 4,969,185 5,706,459 4,885,759 EQUITY AND RESERVES Stated capital 33 226,641 226,641 226,641 226,641 Income surplus account 34 272,852 264,393 263,775 249,030 Revaluation reserve 35 57,390 55,676 58,231 56,947 Statutory reserve fund 36 282,412 241,443 281,923 240,983 Regulatory credit risk reserve 37 50,458 10,270 50,458 10,270 TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK 889,753 798,423 881,028 783,871 TOTAL LIABILITIES AND EQUITY 6,691,810 5,767,608 6,587,487 5,669,630 These financial statements were approved by the Board of Directors on 22 March 2016 and signed on its behalf by: SIGNED CHAIRMAN Terence Ronald Darko SIGNED MANAGING DIRECTOR Samuel Ashitey Adjei THE NOTES ON PAGES 50 TO 121 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 43

FINANCIAL STATEMENTS ECOBANK GHANA LIMITED STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2015 THE GROUP STATED CAPITAL INCOME SURPLUS ACCOUNT REVALUATION RESERVE STATUTORY RESERVE FUND REGULATORY CREDIT RISK RESERVE TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 BALANCE AT 1 JANUARY 2014 226,641 132,976 12,059 164,001 25,252 560,929 TOTAL COMPREHENSIVE INCOME Profit for the year - 319,965 - - - 319,965 Other comprehensive income, net of tax - - 43,617 - - 43,617 TOTAL COMPREHENSIVE INCOME FOR THE YEAR - 319,965 43,617 - - 363,582 TRANSACTIONS WITH EQUITY HOLDERS Dividends paid - (126,088) - - - (126,088) TOTAL CONTRIBUTION BY AND DISTRIBUTION TO EQUITY HOLDERS - (126,088) - - - (126,088) REGULATORY TRANSFERS Statutory reserve - (77,442) - 77,442 - - Credit risk reserve - 14,982 - - (14,982) - - - (62,460) - 77,442 (14,982) - BALANCE AT 31 DECEMBER 2014 226,641 264,393 55,676 241,443 10,270 798,423 THE NOTES ON PAGES 50 TO 121 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 44

STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2015 FINANCIAL STATEMENTS THE GROUP (CONT D) STATED CAPITAL INCOME SURPLUS ACCOUNT REVALUATION RESERVE STATUTORY RESERVE FUND REGULATORY CREDIT RISK RESERVE TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 BALANCE AT 1 JANUARY 2015 226,641 264,393 55,676 241,443 10,270 798,423 TOTAL COMPREHENSIVE INCOME Profit for the year - 321,266 - - - 321,266 Other comprehensive income, net of tax - - 1,714 - - 1,714 TOTAL COMPREHENSIVE INCOME FOR THE YEAR - 321,266 1,714 - - 322,980 TRANSACTIONS WITH EQUITY HOLDERS Dividends paid - (231,650) - - - (231,650) TOTAL CONTRIBUTION BY AND DISTRIBUTION TO EQUITY HOLDERS - (231,650) - - - (231,650) REGULATORY TRANSFERS Statutory reserve - (40,969) - 40,969 - - Credit risk reserve - (40,188) - - 40,188 - - (81,157) - 40,969 40,188 - BALANCE AT 31 DECEMBER 2015 226,641 272,852 57,390 282,412 50,458 889,753 THE NOTES ON PAGES 50 TO 121 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 45

FINANCIAL STATEMENTS STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2015 THE BANK STATED CAPITAL INCOME SURPLUS ACCOUNT REVALUATION RESERVE STATUTORY RESERVE FUND REGULATORY CREDIT RISK RESERVE TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 BALANCE AT 1 JANUARY 2014 226,641 127,926 13,707 163,580 25,252 557,106 TOTAL COMPREHENSIVE INCOME FOR THE YEAR Profit for the year - 309,613 - - - 309,613 Other comprehensive income, net of tax - - 43,240 - - 43,240 TOTAL COMPREHENSIVE INCOME FOR THE YEAR - 309,613 43,240 - - 352,853 TRANSACTIONS WITH EQUITY HOLDERS Dividends paid - (126,088) - - - (126,088) TOTAL CONTRIBUTION BY AND DISTRIBUTION TO EQUITY HOLDERS - (126,088) - - - (126,088) REGULATORY TRANSFERS Statutory reserve - (77,403) - 77,403 - - Credit risk reserve - 14,982 - - (14,982) - - (62,421) - 77,403 (14,982) - BALANCE AT 31 DECEMBER 2014 226,641 249,030 56,947 240,983 10,270 783,871 THE NOTES ON PAGES 50 TO 121 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 46

STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2015 FINANCIAL STATEMENTS THE BANK (CONT D) STATED CAPITAL INCOME SURPLUS ACCOUNT REVALUATION RESERVE STATUTORY RESERVE FUND REGULATORY CREDIT RISK RESERVE TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 BALANCE AT 1 JANUARY 2015 226,641 249,030 56,947 240,983 10,270 783,871 TOTAL COMPREHENSIVE INCOME FOR THE YEAR Profit for the year - 327,523 - - - 327,523 Other comprehensive income, net of tax - - 1,284 - - 1,284 TOTAL COMPREHENSIVE INCOME FOR THE YEAR - 327,523 1,284 - - 328,807 TRANSACTIONS WITH EQUITY HOLDERS Dividends paid - (231,650) - - - (231,650) TOTAL CONTRIBUTION BY AND DISTRIBUTION TO EQUITY HOLDERS - (231,650) - - - (231,650) REGULATORY TRANSFERS Statutory reserve - (40,940) - 40,940 - - Credit risk reserve - (40,188) - - 40,188 - - (81,128) - 40,940 40,188 - BALANCE AT 31 DECEMBER 2015 226,641 263,775 58,231 281,923 50,458 881,028 THE NOTES ON PAGES 50 TO 121 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 47

FINANCIAL STATEMENTS ECOBANK GHANA LIMITED STATEMENTS OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 CASH FLOWS FROM OPERATING ACTIVITIES Interest paid (160,395) (114,837) (124,601) (107,654) Interest received 843,564 641,156 790,961 617,123 Net fees and commissions 185,362 136,831 185,370 136,846 Other income received 9,500 10,465 9,500 10,365 Dividend received 3,487 5 23,438 5 Net trading income 173,269 190,956 172,763 190,423 Lease income 3,682 1,969 3,674 1,957 Payments to employees and suppliers (470,854) (416,172) (470,193) (415,758) Tax paid (153,079) (141,912) (148,923) (139,147) CASH FLOWS FROM OPERATING ACTIVITIES BEFORE CHANGES IN OPERATING ASSETS AND LIABILITIES 434,536 308,461 441,989 294,160 CHANGES IN OPERATING ASSETS AND LIABILITIES Loans and advances (297,700) (85,445) (298,958) (94,021) Other assets (232,631) 45,908 (252,243) 47,003 Customer deposits 234,910 286,263 267,783 105,850 Other liabilities 99,446 44,659 98,311 54,766 Mandatory reserves (122,709) (158,598) (122,709) (158,598) NET CASH GENERATED FROM OPERATING ACTIVITIES 115,852 441,248 134,173 249,160 CASH FLOW FROM INVESTING ACTIVITIES Purchase of property and equipment 27 (134,026) (31,173) (134,026) (31,173) Purchase of software 26 (7,677) (2,470) (7,677) (2,470) Proceeds from sale of equipment 27 184 349 184 348 Government securities purchased (1,567,240) (1,101,137) (1,338,629) (923,874) Proceeds from sale of Government securities 1,799,711 1,593,780 1,568,240 1,384,372 Purchase of AFS investment (626) - (626) - Loan and advances to banks 127,964 394,469 121,814 401,696 NET CASH FROM INVESTING ACTIVITIES 218,290 853,818 209,280 828,899 THE NOTES ON PAGES 50 TO 121 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 48

STATEMENTS OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2015 (CONT D) FINANCIAL STATEMENTS NOTE THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 CASH FLOW FROM FINANCING ACTIVITIES Dividend paid (231,650) (126,088) (231,650) (126,088) Repayment of borrowed funds 32 (95,326) (20,049) (95,326) (20,049) Proceeds from borrowed funds 32 150,990 53,451 150,990 53,451 NET CASH USED IN FINANCING ACTIVITIES (175,986) (92,686) (175,986) (92,686) NET INCREASE IN CASH AND CASH EQUIVALENTS 158,156 1,202,380 167,467 985,373 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,371,189 226,878 1,172,575 245,271 EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH AND CASH EQUIVALENTS (17,786) (58,069) (17,786) (58,069) CASH AND CASH EQUIVALENTS AT END OF YEAR 38 1,511,559 1,371,189 1,322,256 1,172,575 THE NOTES ON PAGES 50 TO 121 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 49

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS ECOBANK GHANA LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 1. GENERAL INFORMATION Ecobank Ghana Limited is a limited liability company, incorporated and domiciled in Ghana. These financial statements comprise the consolidated financial statements of the Bank and its subsidiaries (together the Group) and its interest in associates as well as the separate financial statement of the Bank. The Group provides retail, corporate and investment banking and other financial services in Ghana. The Bank is listed on the Ghana Stock Exchange. The consolidated and separate financial statements were authorised for issue by the Board of Directors on 22 March 2016. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all the periods presented in these financial statements and have been applied consistently by Group entities. 2.1 BASIS OF PRESENTATION The Group s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Additional information required by the Companies Act, 1963 (Act 179) and the Banking Act, 2004 (Act 673) as amended by the Banking Amendment Act, 2007 (Act 738) have been included, where appropriate. The financial statements have been prepared under the historical cost convention, except for buildings which are carried at revalued amounts and available for sale financial assets carried at fair values. The financial statements comprise the statements of financial position, comprehensive income, changes in equity, cash flows and notes to the financial statements. The financial statements are presented in Ghana cedis, which is the Group s functional and presentation currency. Except otherwise indicated, financial information presented in Ghana cedis has been rounded to the nearest thousand. Information on risks from financial instruments and financial risk management policies are disclosed in Note 3. 2.2 USE OF JUDGMENT AND ESTIMATES The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period or in the period of revision and future periods, if the revision affects both current and future periods. 50

NOTES TO FINANCIAL STATEMENTS FINANCIAL STATEMENTS Areas involving a higher degree of judgement or complexity, or where assumptions and estimates are considered significant to the financial statements, are disclosed in Note 5. 2.3 NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED There are new or revised Accounting Standards and Interpretations in issue that are not yet effective. These include the following Standards and Interpretations that may have an impact on future financial statements: The Bank does not plan to adopt these standards early STANDARD/INTERPRETATION EFFECTIVE DATE IFRS 9 Financial Instruments 1 January 2018 Amendments to IFRS 10 Consolidated financial Statements 1 January 2016 IFRS 10, 12 and IAS 28 IFRS 12 Disclosure of interest in other entities IAS 28 Investments in Associates and Joint Ventures (2011) Amendments to IAS 27 Equity method in separate financial statements 1 January 2016 IFRS 15 Revenue from contract with customers 1 January 2018 IFRS 9 (2014) FINANCIAL INSTRUMENTS IFRS 9 has been completed in stages with the IASB s phased approach reflected in a number of the standards being issued since 2009. Previous versions of the standard will be superseded by the version issued in July 2014 at its effective date of 1 January 2018. The complete version of IFRS 9 replaces most of the guidance in IAS 39. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortised cost, fair value through Other Comprehensive Income and fair value through P&L. The existing IAS 39 categories of held-to-maturity, loans and receivables, and available for sale, are removed. The basis of classification depends on the entity s business model and the contractual cash flow characteristics of the financial asset. A financial asset is classified as being subsequently measured at amortised cost if the asset is held within a business model whose objective is to collect contractual cash flows, and the contractual terms of the financial asset give rise to cash flows that are solely payments of principal and interest. A financial asset is classified as being subsequently measured at fair value through other comprehensive income if it meets the solely payments of principal and interest criterion and is held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. All other financial assets are subsequently measured at fair value through Profit and Loss. In addition an entity may, at initial recognition, irrevocably designate a financial asset as at fair value through profit and loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Investments in equity instruments are required to be measured at fair value through profit or loss with the irrevocable option at inception to present changes in fair value in Other Comprehensive Income. For financial liabilities there were no changes to classification and measurement except for the recognition of changes in own credit risk in other comprehensive income, for liabilities designated at fair value, through profit or loss. IFRS 9 relaxes the requirements for hedge effectiveness by replacing the bright line hedge effectiveness tests. It requires an economic relationship between the hedged item and hedging instrument and for the hedged ratio to be the same as the one management actually use for risk management purposes. Reclassification of financial assets is required if the objective of the business model in 51

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) which they are held changes after initial recognition of the assets, and if the change is significant to the entity s operations. Such changes are expected to be very infrequent. No other reclassifications are permitted. There is now a new expected credit losses model that replaces the incurred loss impairment model used in IAS 39. The new model uses a dual measurement approach under which the loss allowance is measured as either 12-month expected credit losses or lifetime expected losses. The Bank would be impacted due to the extensive new requirements for data and calculations and there may be the need for new processes to allocate financial assets to the appropriate measurement category. Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28) The amendment to IFRS 10 Consolidated Financial Statements clarifies which subsidiaries of an investment entity are consolidated instead of being measured at fair value through profit and loss. The amendment also modifies the condition in the general consolidation exemption that requires an entity s parent or ultimate parent to prepare consolidated financial statements. The amendment clarifies that this condition is also met where the ultimate parent or any intermediary parent of a parent entity measures subsidiaries at fair value through profit or loss in accordance with IFRS 10 and not only where the ultimate parent or intermediate parent consolidates its subsidiaries. The amendment to IFRS 12 Disclosure of Interests in Other Entities requires an entity that prepares financial statements in which all its subsidiaries are measured at fair value through profit or loss in accordance with IFRS 10 to make disclosures required by IFRS 12 relating to investment entities. The amendment to IAS 28 Investments in Associates and Joint Ventures modifies the conditions where an entity need not apply the equity method to its investments in associates or joint ventures to align these to the amended IFRS 10 conditions for not presenting consolidated financial statements. The amendments introduce relief when applying the equity method which permits a non-investment entity investor in an associate or joint venture that is an investment entity to retain the fair value through profit or loss measurement applied by the associate or joint venture to its subsidiaries. The amendments will be applied retrospectively for annual periods beginning on or after 1 January 2016 and are not expected to have a significant impact on the group. Amendment to IAS 27 The amendments allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. The amendments will be applied retrospectively for periods beginning on or after January 2016 and are expected to have a significant impact on the Group. IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS The standard contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. This new standard which is effective for annual periods beginning on or after 1 January 2018 will most likely have a significant impact on the Group, which will include a possible change in the timing of when revenue is recognised and the amount of revenue recognised. The Group is currently in the process of performing a more detailed assessment of the impact of this standard on the Group and will provide more information in the year ending 31 December 2016 financial statements. 2.4 CONSOLIDATION The financial statements of subsidiaries used to prepare the consolidated financial statements were prepared as of the parent company s reporting date. The accounting policies of subsidiaries that are consolidated by the group conform to the following policies. (a) Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date - i.e. when control is transferred to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if they are related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss. Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair 52

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS value of the contingent consideration are recognised in profit or loss. (b) Non-controlling interest Non-controlling interests (NCI) are measured at their proportionate share of the acquiree s identifiable net assets at the acquisition date. (c) Subsidiaries Subsidiaries are investees controlled by the Group. The Group controls an investee if it is exposed to, or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date when control ceases. Investment in subsidiaries are accounted for at cost less accumulated impairment losses (where applicable) in the separate financial statements. The carrying amount of these investments are reviewed annually for impairment indicators and where an indicator of impairment exists, are impaired to the higher of the investment fair value less cost to sell and value in use. Intra-group balances and transactions, and any unrealised income and expenses (except for foreign currency transaction gains or losses) arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. (d) Loss of control When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary and any related non-controlling interest and other components of equity. Any resulting gain or loss is recognized in profit or loss. Any retained interest in the entity is measured at fair value with the change in carrying amount recognized in profit or loss. Any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. (e) Transactions eliminated on consolidation Changes in the Group s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. (f) Associates Associates are all entities over which the group has significant influence but not control. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor s share of the profit or loss of the investee after the date of acquisition. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate. Profits and losses resulting from transactions between the group and its associate are recognised in the group s financial statements only to the extent of unrelated investor s interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. 2.5 SEGMENT REPORTING Operating segments are reported in a manner consistent with internal reporting to the Board of Directors, which has responsibility for allocating resources and measuring performance of operating segments. All transactions between business segments are conducted on an arm s length basis, with intra-segment revenue and costs being eliminated on consolidation. Income and expenses directly associated with each segment are included in determining business segment performance in accordance with IFRS 8. The Group has the following business segments: Corporate, Domestic and Treasury which are reportable segments. These divisions offer different products and services and are managed separately based on the Group s management and internal reporting structure. The business segments are defined as per below: (a) Domestic banking - This incorporates consumer, small and medium enterprises, local corporate and public sectors of the market. (b) Corporate banking - Specialises in serving the public sector, multinational institutions, financial institutions/international organisations and the Regional Corporate segment of the market. (c) Treasury - Treasury engages in foreign exchange trading and manages the bank s balance sheet, ensuring that all interest rate and exchange rate risks are adequately monitored. The unit also has responsibility for liquidity management; ensuring that the bank is able to honour its commitments as and when they fall due. 53

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 2.6 FOREIGN CURRENCY TRANSLATION Transactions and balances Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currency are re-translated at closing rates ruling at the reporting date. Non-monetary items measured at historical cost denominated in a foreign currency are translated at exchange rates ruling at the dates of initial recognition; and non-monetary items in a foreign currency that are measured at fair value are translated at exchange rates ruling at the date at which the fair value is determined. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from re-translation, at year-end exchange rates of foreign currency denominated monetary assets and liabilities, are recognised in profit or loss. All foreign exchange gains and losses recognised in profit or loss are presented net within the corresponding item. Foreign exchange gains and losses on other comprehensive income items are presented in other comprehensive income within the corresponding item. Translation differences on non-monetary financial instruments, such as equities classified as available-for-sale financial assets, are included in other comprehensive income. 2.7 FINANCIAL ASSETS AND LIABILITIES All financial assets and liabilities have to be recognised in the statement of financial position and measured in accordance with their assigned category. 2.7.1 Financial assets The Group classifies its financial assets in the following categories: loans and receivables and available-for-sale financial assets. Management determines the classification of its financial assets at initial recognition. (a) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than: (i) those that the Group intends to sell immediately or in the short term, which are classified as held for trading, and those that the Group upon initial recognition designates at fair value through profit or loss; (ii) those that the Group upon initial recognition designates as available for sale; or (iii) those for which the holder may not recover substantially all of the initial investment, other than because of credit deterioration. Loans and advances include cash and balances with Bank of Ghana, government securities, loans and advances to banks, loans and advances to customers and some other assets. Loans and advances are initially measured at fair value plus incremental direct transaction costs, and subsequently measured at their amortised cost using the effective interest method. Loans and receivables are reported in the statement of financial position as loans and advances to groups or customers or as investment securities. Interest on loans is included in profit or loss and is reported as Interest income. In the case of an impairment, the impairment loss is reported as a deduction from the carrying value of the loan and recognised in profit and loss as loan impairment charges 54

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS (b) Available-for-sale financial assets Available-for-sale financial assets are financial assets that are intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices that are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss. Available-for-sale financial assets include investment securities: available for sale. Available-for-sale financial assets are initially recognised at fair value, which is the cash consideration including any transaction costs, and measured subsequently at fair value with gains and losses being recognised in other comprehensive income, except for impairment losses and foreign exchange gains and losses, until the financial asset is derecognised. Unquoted equity securities whose fair value cannot be measured reliably are carried at cost. If an available-for-sale financial asset is determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is recognised in profit and loss. However, interest is calculated using the effective interest method, and foreign currency gains and losses on monetary assets classified as available for sale are recognised in profit and loss. Dividends on available-for-sale equity instruments are recognised in profit and loss in Dividend income when the Group s right to receive payment is established. (c) Recognition The Group uses trade date accounting for regular contracts when recording financial asset transactions. Financial assets that are transferred to a third party but do not qualify for derecognition are presented in the statement of financial position as Assets pledged as collateral, if the transferee has the right to sell or re-pledge them. 2.7.2 Financial liabilities Financial liabilities include deposits from related entities, banks and customers or debt securities in issue, convertible bonds and subordinated and other debts for which the fair value option is not applied. Financial liabilities are measured initially at fair value plus, for an item not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue and subsequently measured at their amortised cost. 2.7.3 Determination of fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk. When available, the Group measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. If there is no quoted price in an active market, then the Group uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction. The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received. If the Group determines that the fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value at initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out. 55

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) If an asset or a liability measured at fair value has a bid price and an ask price, then the Group measures assets and long positions at a bid price and liabilities and short positions at an ask price. Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are managed by the Group on the basis of the net exposure to either market or credit risk are measured on the basis of a price that would be received to sell a net long position (or paid to transfer a net short position) for a particular risk exposure. Those portfolio-level adjustments are allocated to the individual assets and liabilities on the basis of the relative risk adjustment of each of the individual instruments in the portfolio. The fair value of a demand deposit is not less than the amount payable on demand, discounted from the first date on which the amount could be required to be paid. The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred. 2.7.4 Derecognition Financial assets are derecognised when the contractual rights to receive cash flows from the financial asset has expired or the Group has transferred substantially all the risks and rewards of ownership. On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognised in OCI is recognised in profit or loss. Any interest in the transferred financial asset that is created or retrieved by the Bank is recognised as a separate asset or liability. Financial liabilities are derecognised when contractual obligations are discharged, cancelled or expire. Collateral (shares and bonds) furnished by the Group under standard repurchase agreements and securities lending and borrowing transactions are not derecognised because the Group retains substantially all the risks and rewards on the basis of predetermined repurchase prices, and the criteria for derecognition are therefore not met. This also applies to certain securitisation transactions in which the Group retains a portion of the risks. 2.7.5 Reclassification of financial assets The Group may choose to reclassify a nonderivative financial asset held for trading out of the held-for-trading category, if the financial asset is no longer held for the purpose of selling in the near-term. Financial assets other than loans and receivables are permitted to be reclassified out of the held for trading category only in rare circumstances arising from a single event that is unusual and highly unlikely to recur in the near-term. In addition, the Group may choose to reclassify financial assets that would meet the definition of loans and receivables out of the held-for-trading or available-forsale categories, if the Group has the intention and ability to hold these financial assets for the foreseeable future or until maturity at the date of reclassification. Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortised cost as applicable, and no reversals of fair value gains or losses recorded before reclassification date are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables and held-to-maturity categories are determined at the reclassification date. Further increases in estimates of cash flows adjust effective interest rates prospectively. 2.7.6 Classes of financial instruments The Group classifies financial instruments into classes that reflect the nature and characteristics of those financial instruments. The classifications made are set out in the table on the following page: 56

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS CATEGORY (AS DEFINED BY IAS 39) Financial assets Financial assets at fair value through profit or loss Loans and receivables Held-to-maturity Investments Available-for-sale financial assets CLASS (AS DETERMINED BY THE GROUP) Financial assets held for trading Financial assets designated at fair value through profit or loss Debt securities Equity securities Derivatives nonhedging Debt securities Equity securities Loans and advances to Banks Loans and advances to customers Loans and advances to Banks Loans and advances to customers Loans to individuals (retail) Loans to corporate entities Investment securities - debt instruments Investment securities - debt securities Investment securities - debt securities Investment securities - equity securities Debt securities in issue Convertible bonds Subordinated debt SUBCLASSES Overdrafts Credit cards Term loans Mortgages Term loans overdrafts Others Listed Unlisted Listed Unlisted Listed Listed Unlisted These are additional classes of financial liabilities at amortised cost 57

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 2.7.6 Classes of financial instruments (Cont d) CATEGORY (AS DEFINED BY IAS 39) CLASS (AS DETERMINED BY THE GROUP) SUBCLASSES Financial liabilities at fair value through profit or loss Financial liabilities held for trading (derivatives - non hedging only) Designated at fair value through profit or loss - Debt securities in Issue Financial liabilities Off-balance sheet financial Instruments Financial liabilities at armortised cost Deposits from customers Deposits from Banks Domestic customers Large corporate customers Debt securities in issue Convertible bonds Subordinated debt Loan commitments Guarantees, acceptances and other financial facilities These are additional classes of financial liabilities at amortised cost THE GROUP NOTE FAIR VALUE THROUGH PROFIT OR LOSS AVAILABLE- FOR-SALE LOANS & RECEIVABLES TOTAL CARRYING AMOUNT GH 000 GH 000 GH 000 GH 000 Cash and balances with Bank of Ghana 20 - - 772,942 772,942 Government securities 21-18,809 707,917 726,726 Loans and advances to banks 22 - - 1,450,007 1,450,007 Loans and advances to customers 23 - - 3,117,873 3,117,873 Investment securities available-for-sale 24-2,148-2,148 Other assets - - 307,315 307,315 TOTAL FINANCIAL ASSETS - 20,957 6,356,054 6,377,011 58

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 2.7.6 Classes of financial instruments (Cont d) FAIR VALUE THROUGH PROFIT OR LOSS AMORTISED COST TOTAL CARRYING AMOUNT NOTE GH 000 GH 000 GH 000 Deposit from banks 29-205,123 205,123 Customer deposits 30-4,837,950 4,837,950 Other liabilities - - 437,008 437,008 Borrowing 31-321,976 321,976 TOTAL FINANCIAL LIABILITIES - - 5,802,057 5,802,057 THE BANK FAIR VALUE THROUGH PROFIT OR LOSS TOTAL AVAILABLE- LOANS & CARRYING FOR-SALE RECEIVABLES AMOUNT NOTE GH 000 GH 000 GH 000 GH 000 Cash and balance with Bank of Ghana 20 - - 772,942 772,942 Government securities 21-9,313 582,794 592,107 Loans and advances to banks 22 - - 1,448,930 1,448,930 Loans and advances to customers 23 - - 3,116,749 3,116,749 Investment securities available-for-sale 24-2,148-2,148 Other assets - - 327,184 327,184 TOTAL FINANCIAL ASSETS - 11,461 6,248,599 6,260,060 Deposit from banks 29 - - 286,934 286,934 Customer deposits 30 - - 4,664,513 4,664,513 Other liabilities - - 433,036 433,036 Borrowing 31 - - 321,976 321,976 TOTAL FINANCIAL LIABILITIES - - 5,706,459 5,706,459 59

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) Financial assets and liabilities are offset and the net amount reported when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. 2.7.8 Impairment of financial assets (a) Assets carried at amortised cost The Group assesses whether there is objective evidence that a financial asset or group of financial assets is impaired at each reporting date. A financial asset or a group of financial assets is considered impaired only if there is objective evidence of impairment as a result of one or more events that occurred after initial recognition of the asset (a loss event ) and that loss event (or events) has an impact on estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. The criteria that the Group uses to determine whether there is objective evidence of an impairment loss include: (a) significant financial difficulty of the issuer or obligor; (b) a breach of contract, such as a default or delinquency in interest or principal payments; (c) granting the borrower, the economic or legal reasons relating to the borrower s financial difficulty, a concession that the lender would not otherwise consider; (d) a likely probability that the borrower will enter bankruptcy or other financial reorganisation; (e) the disappearance of an active market for that financial asset because of financial difficulties; or (f) observable data indicating that there is a measurable decrease in estimated future cash flows from a portfolio of financial assets, since initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the portfolio, including: (i) adverse changes in the payment status of borrowers in the portfolio; and (ii) national or local economic conditions that correlate with defaults on assets in the portfolio. The estimate period between a loss occurring and its identification is determined by local management for each identified portfolio. In general, the periods used vary between 3 and 12 months, in exceptional cases, longer periods are warranted. The Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment. The amount of loss is measured as the difference between the asset s carrying amount and the present value of estimated future cash discounted at the financial asset s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in profit or loss. If a loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument s fair value using observable market prices. 60

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 2.7.8 Impairment of financial assets (cont d) effects of conditions in the historical period that do not currently exist. (a) Assets carried at amortised cost (cont d) The calculation of the present value of estimated future cash flows of a collateralised financial asset reflects cash flows that may result from foreclosure less costs for obtaining and selling the collateral, whether or not foreclosure is probable. For the purposes of a collective evaluation of impairment, financial assets are grouped on the basis of similar credit risk characteristics (that is, on the basis of the Group s grading process that considers asset type, industry, geographical location, collateral type, past-due status and other relevant factors). Those characteristics are relevant to the estimation of future cash flows for groups of such assets by being indicative of the debtors ability to pay all amounts due according to the contractual terms of the assets being evaluated. Future cash flows in groups of financial assets that are collectively evaluated for impairment are estimated on the basis of the contractual cash flows of the assets in the group and historical loss experience for assets with credit risk characteristics similar to those in the group. Historical loss experience is adjusted on the basis of current observable data to reflect the effects of current conditions that did not affect the period on which the historical loss experience is based and to remove the Estimates of changes in future cash flows for groups of assets should reflect and be directionally consistent with changes in related observable data from period to period including property prices, payment status and other factors indicative of changes in the probability of losses and their magnitude. The methodology and assumptions used for estimating future cash flows are reviewed regularly by the Group to reduce any differences between loss estimates and actual loss experience. When a loan is uncollectible, it is written off against the related allowance for loan impairment. Such loans are written off after all the necessary procedures have been completed and the amount of loss has been determined. Impairment charges relating to loans and advances are recognised in loan impairment charges whilst impairment charges relating to investment securities (held to maturity and loans and receivables categories) are recognised in Net gains/(losses) on investment securities. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor s credit rating), the previously recognised impairment loss is reversed by adjusting the allowance account. The amount of the reversal is recognised in profit or loss. (b) Assets classified as available-for-sale The Group assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired at each reporting date. In the case of equity investments classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is objective evidence of impairment resulting in the recognition of an impairment loss. If any such evidence exists for available-for-sale financial assets, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss is removed from equity and recognised in profit or loss. Impairment losses recognised in profit or loss on equity instruments are not reversed through profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the increase can objectively be related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed through other comprehensive income. (c) Renegotiated loans Loans that are either subject to collective impairment assessment or individually significant and whose terms have been renegotiated are no longer considered to be past due but are treated as performing loans, when performance has been confirmed. In subsequent years, the asset is considered to be past due and disclosed as such only if renegotiated again. If the terms of a financial asset are renegotiated or modified or an existing financial asset is replaced with a new one due to financial difficulties of the borrower, then an assessment is made of whether the financial asset should be derecognised. If the cash flows of the renegotiated asset are substantially different, then the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognised and the new financial asset is recognised at fair value. The impairment loss before an expected restructuring is measured as follows. 61

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) If the expected restructuring will not result in derecognition of the existing asset, then the estimated cash flows arising from the modified financial asset are included in the measurement of the existing asset based on their expected timing and amounts discounted at the original effective interest rate of the existing financial asset. If the expected restructuring will result in derecognition of the existing asset, then the expected fair value of the new asset is treated as the final cash flow from the existing financial asset at the time of its derecognition. This amount is discounted from the expected date of derecognition to the reporting date using the original effective interest rate of the existing financial asset. 2.8 INTEREST INCOME AND EXPENSES Interest income and expense for all interest-bearing financial instruments are recognised within interest income and interest expense in profit or loss using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability and allocating interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms of the financial instrument, including prepayment options, but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. 2.9 FEES AND COMMISSIONS INCOME Fees and commissions are generally recognised on an accrual basis when the service has been provided. Loan commitment fees for loans that are likely to be drawn down are deferred, together with related direct costs, and recognised as an adjustment to the effective interest rate on the loan. Loan syndication fees are recognised as revenue when the syndication has been completed and the Group has retained no part of the loan package for itself or retained a part at the same effective interest rate as the other participants. 2.10 DIVIDEND INCOME Dividends are recognised when the entity s right to receive payment is established. 2.11 NET TRADING INCOME Net trading income comprises gains less losses relating to trading assets and liabilities, including realised and unrealised fair value changes, interest and foreign exchange differences. 2.12 CASH AND CASH EQUIVALENTS Cash and cash equivalents include notes and coins on hand, unrestricted balances held with the Central Bank and highly liquid financial assets with original maturities of three (3) months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value and are used by the Group in the management of its short-term commitments. Cash and cash equivalents are carried at amortised cost. 62

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 2.13 LEASES (i) Lease assets Lessee Leases that the Group assumes substantially all the risks and rewards of ownership of the underlying asset are classified as finance lease. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and present value of minimum lease payments. Subsequent to initial recognition, the leased asset is accounted for in accordance with the accounting policy applicable to that asset. All other leases are classified as operating leases. (ii) Lease payments-lessee Payments made under operating leases are charged to profit or loss on a straight line basis over the period of the lease. When an operating lease is terminated before the lease has expired, any payment required to be made by the lessor by way of penalty is recognised as an expense in the period in which termination takes place. Minimum lease payments under finance leases are apportioned between finance expense and the outstanding lease liability. The finance expense is allocated to each period so as to produce a constant periodic rate of interest on the remaining balance of the liability. (iii) Lease assets Lessor If the Group is the lessor in a lease agreement that transfers substantially all of the risks and rewards incidental to ownership of the asset to the lessee, then the arrangement is classified as a finance lease and a receivable equal to the net investment in the lease is recognised and presented within loans and advances 2.14 PROPERTY AND EQUIPMENT Except for buildings which are stated at revalued amounts, all other property and equipment are stated at cost less depreciation. Cost includes expenditure that is directly attributable to the acquisition of the items. Buildings are shown at valuation less subsequent depreciation. The fair values are determined every three (3) years by external, independent, professional valuers. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. The revaluation increase arising on the revaluation of property, plant and equipment is credited to the revaluation surplus in shareholders equity. Decreases that offset previous increases of the same asset are charged against the non-distributable reserve. All other decreases are charged to the statement of comprehensive income. Subsequent expenditures are included in the asset s carrying amount or are recognised as a separate asset only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of a replaced part is derecognised. All other repair and maintenance costs are charged to profit or loss during the financial period in which they are incurred. Depreciation is recognised in profit or loss on a straight line basis to write off the gross value less residual amounts over their estimated useful lives as follows: BUILDINGS - 2.5% MOTOR VEHICLES - 25% FURNITURE AND EQUIPMENT - 20% COMPUTERS - 33.33% Freehold land is not depreciated. 63

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount. The recoverable amount is the higher of the asset s fair value less costs to sell and value in use. Gains and losses on disposal are determined by comparing proceeds with carrying amounts and are recorded in profit or loss. 2.15 INTANGIBLE ASSETS Computer software Intangible assets comprise computer software licences. Intangible assets are recognised at cost. Intangible assets with a definite useful life are amortised using the straight-line method over their estimated useful life, i.e. 3 years. At the end of each reporting period, intangible assets are reviewed for indications of impairment or changes in estimated future economic benefits. If such indications exist, the intangible assets are analysed to assess whether their carrying amount is fully recoverable. An impairment loss is recognised if the carrying amount exceeds the recoverable amount. 2.16 IMPAIRMENT OF NON-FINANCIAL ASSETS Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised in the statement of comprehensive income for the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cashgenerating units). The impairment test also can be performed on a single asset when the fair value less cost to sell or the value in use can be determined reliably. Non-financial assets that suffer impairment are reviewed for possible reversal of the impairment at each reporting date. 2.17 INCOME TAX (a) Current tax The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In which case, the corresponding tax is recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax laws enacted or substantially enacted at the reporting date and any adjustments to tax payable in respect of previous years. (b) Deferred tax Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill or from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction neither affects accounting nor taxable profit or loss. Deferred tax is determined using tax rates that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred tax asset or liability is realised. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. Deferred tax is provided on temporary differences except for deferred tax liabilities where the timing of reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the forseeable future. 64

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority or either the same entity or different taxable entities where there is an intention to settle balances on a net basis. 2.18 PROVISIONS Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events that can be reliably estimated and it is probable that an outflow of resources will be required to settle the obligation. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognised for future operating losses. Where there are a number of similar obligations which are likely to result in an outflow to settle related classes of obligations as a whole, a provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of expenditures expected to be required to settle obligations using pre-tax rates that reflect current market assessments of the time value of money and risks specific to the obligation. An increase in the provision due to passage of time is recognised as an interest expense. 2.19 FINANCIAL GUARANTEE CONTRACTS AND LOAN COMMITMENTS Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due, in accordance with the terms of a debt instrument. Such financial guarantees are given to financial institutions and other bodies on behalf of customers to secure loans and overdrafts. Loan commitments are firm commitments to provide credit under pre-specified terms and conditions. Financial guarantees and loan commitments are initially recognised at the fair value and amortised over the life of contract. The financial guarantee or loan commitment is subsequently carried at the higher of the amortised amount and the present value of any expected payments, when payment becomes probable. 2.20 STATED CAPITAL Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity net of any tax effects. Dividends on ordinary shares Dividends on ordinary shares are recognised in equity in the period in which they are approved by the shareholders. 2.21 FIDUCIARY ACTIVITIES The Group acts as trustees and in other fiduciary capacities that result in the holding or placing of assets on behalf of individuals, trusts, retirement benefit plans and other institutions. These assets and income arising thereon are excluded from these financial statements, as they are not assets of the Group. 2.22 POST BALANCE SHEET EVENTS Events subsequent to the balance sheet date are reflected in the financial statements only to the extent that they relate to the year under consideration and the effect is material. 65

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 2.23 EMPLOYMENT BENEFITS Defined contribution plans Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit or loss when they are due. Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A provision is recognised for the amount expected to be paid under short-term cash bonus or profit sharing plans, if the Bank has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. 2.24 EARNINGS PER SHARE The Bank presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders by the number of ordinary shares outstanding during the period. The Bank has no convertible notes and share options, which could potentially dilute its EPS and therefore the Bank s Basic and diluted EPS are essentially the same. 3. FINANCIAL RISK MANAGEMENT The Group s business involves taking on risks in a targeted manner and managing them professionally. The core functions of the Group s risk management are to identify all key risks for the Group, measure these risks, manage the risk positions and determine capital allocations. The Group regularly reviews its risk management policies and systems to reflect changes in markets, products and best market practices. The Group s aim is to achieve an appropriate balance between risk and return and minimise potential adverse effects on the Group s financial performance. The Group defines risk as the possibility of losses or profits foregone, which may be caused by internal or external factors. Risk management is carried out by the risk department under policies approved by the Board of Directors. The department identifies, evaluates financial risks in close co-operation with the Group s operating units. The Board provides guiding principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments. In addition, internal audit is responsible for the independent review of risk management and the control environment. The risks arising from financial instruments to which the Group is exposed are financial risks; which includes credit risk, liquidity risk, market risk and operational risk (which are discussed below). Credit Risk Credit risk is the risk of suffering financial loss, should any of the Group s customers, market counterparties fail to fulfil their contractual obligations to the Group. Credit risk arises mainly from commercial and consumer loans and advances, credit cards, and loan commitments arising from such lending activities, but can also arise from credit enhancement provided, such as financial guarantees, letters of credit, endorsements and acceptances. The Group is also exposed to other credit risks arising from investments in debt securities and other exposures arising from trading activities ( trading exposures ), including non-equity trading portfolio assets, derivatives and settlement balances with market counterparties and reverse repurchase loans. Credit risk is the single largest risk for the Group s business; management carefully manages its exposure to credit risk. Credit risk management and control are centralised in a credit risk management team, which reports to the Board of Directors and heads of each business unit regularly. 66

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 3.1.1 Credit risk measurement (a) Loans and advances (including loan commitments and guarantees) The estimation of credit exposure is complex and requires the use of models, as the value of a product varies with changes in market variables, expected cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, associated loss ratios and of default correlations between counterparties The Group has developed models to support the quantification of credit risk. These rating and scoring models are used for all key credit portfolios and form the basis for measuring default risks. In measuring credit risk of loans and advances at a counterparty level, the Group considers three components: (i) the probability of default (PD) by the client or counterparty on its contractual obligations; (ii) current exposures to the counterparty and its likely future development, from which the Group derive the exposure at default (EAD); and (iii) the likely recovery ratio on defaulted obligations (the loss given default ) (LGD). The models are reviewed regularly to monitor their robustness relative to actual performance and amended as necessary to optimise their effectiveness. (b) Debt securities For debt securities, external ratings such as Standard & Poor s rating or their equivalents are used by Group Treasury to manage credit risk exposures, supplemented by the Group s own assessment through the use of internal rating tools. 3.1.2 Risk limit control and mitigation policies The Group manages, limits and controls concentrations of credit risk wherever they are identified - in particular, to individual counterparties and Banks and to industries. The Group structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted in relation to one borrower, or groups of borrowers, and to industry segments. Such risks are monitored on a revolving basis and subject to annual or more frequent reviews, when considered necessary. Limits on the level of credit risk by product and industry sector are approved quarterly by the Board of Directors. The exposure to any one borrower including other financial institutions is further restricted by sub-limits covering on and off balance sheet exposures, and daily delivery risk limits in relation to trading items such as forward foreign exchange contracts. Actual exposures against limits are monitored daily. Lending limits are reviewed in the light of changing market and economic conditions and periodic credit reviews and assessments of probability of default. Some other specific control and mitigation measures are outlined below: (a) Collateral The Group employs a range of policies and practices to mitigate credit risk. The most traditional of these is the taking of security for funds advanced, which is common practice. The Group implements guidelines on the acceptability of specific classes of collateral or credit risk mitigation. The principal collateral types for loans and advances are: Mortgages over residential properties Charges over business assets such as premises, inventory and accounts receivables Charges over financial instruments such as debt securities and equities 67

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) (a) Collateral (cont d) Longer-term finance and lending to corporate entities are generally secured. In addition, in order to minimise credit loss, the Group seeks additional collateral from counterparties as soon as impairment indicators are identified for relevant individual loans and advances. Collateral held as security for financial assets other than loans and advances depends on the nature of the instrument. 3.1.3 Impairment policies Impairment allowances are recognised for financial reporting purposes only for losses that have been incurred at the reporting date based on objective evidence of impairment. 3.1.4 Maximum exposure to credit risk before collateral held Credit risk exposures relating to on-balance sheet assets were as follows: THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 ASSETS Balances with Bank of Ghana 572,217 449,508 572,217 449,508 Government securities 726,726 732,856 592,107 630,645 Loans and advances to Banks 1,450,007 1,465,640 1,448,930 1,458,413 Loans and advances to customers 3,117,873 2,709,517 3,116,749 2,707,093 Investment securities: available- for-sale 2,148 1,522 2,148 1,522 5,868,971 5,359,043 5,732,151 5,247,181 CREDIT RISK EXPOSURES RELATING TO OFF-BALANCE SHEET ITEMS ARE AS FOLLOWS: Financial guarantees 600,775 953,136 600,775 953,136 Loan commitments and other credit related liabilities 4,320,320 193,320 4,320,320 193,320 4,921,095 1,146,456 4,921,095 1,146,456 AT 31 DECEMBER 10,790,066 6,505,499 10,653,246 6,393,637 68

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS Table 3.1.4 represents the maximum exposure to credit risk at 31 December 2015 and 2014, without taking account of any collateral held or other credit enhancements attached. For on-balance-sheet assets, the exposures set out above are based on net carrying amounts reported in the consolidated statement of financial position. As shown above, 68% (2014: 78%) of the total on balance sheet exposure is derived from loans and advances to banks and customers while investments held in Government securities represent 11% (2014: 14%). Management is confident in its ability to continue controlling and sustaining minimal exposure to credit risk arising from both its loans and advances portfolio and investment securities. 3.1.5 Credit quality per class of financial asset The credit quality of financial asset is managed by the group using internal credit ratings. The table below shows the credit quality by class of financial assets and the allowance for impairment losses held by the group against those assets. (a) Loans and advances THE GROUP 2015 2014 LOANS & ADVANCES TO BANKS LOANS & ADVANCES TO CUSTOMERS LOANS & ADVANCES TO BANKS LOANS & ADVANCES TO CUSTOMERS GH 000 GH 000 GH 000 GH 000 Neither past due or impaired 1,450,007 2,610,684 1,465,640 2,692,532 Past due but not impaired - 76,703-32,811 Individually impaired - 590,156-49,586 Gross 1,450,007 3,277,543 1,465,640 2,774,929 Less: allowance for impairment - (159,670) - (65,412) NET 1,450,007 3,117,873 1,465,640 2,709,517 THE BANK Neither past due or impaired 1,448,930 2,609,282 1,458,413 2,689,872 Past due but not impaired - 76,703-32,811 Individually impaired - 590,156-49,586 Gross 1,448,930 3,276,141 1,458,413 2,772,269 Less: allowance for impairment - (159,392) - (65,176) NET 1,448,930 3,116,749 1,458,413 2,707,093 The maximum exposure held relating to Balances with Bank of Ghana, Government securities and investment securities: available for sale have been disclosed in note 3.1.4. These amounts were held with reputable institutions and are still collectible in full and therefore no impairment losses were recognised on them. 69

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) (b) Loans and advances neither past due nor impaired The credit quality of the portfolio of loans and advances to customers that were neither past due nor impaired can be assessed by reference to the internal rating system adopted by the Group based on the various business segments. As at the end of the year 2015, the Bank operated the following business units: (a) Domestic banking - This incorporates consumer, small and medium enterprises, local corporate and public sectors of the market. (b) Corporate banking - Specializes in serving the public sector, multinational institutions, financial institutions/international organizations, local corporates with annual turnover exceeding $20M and the Regional Corporate segment of the market. (c) Treasury - Treasury engages in Foreign exchange trading and manages the bank s balance sheet, ensuring that all interest rate and exchange rate risks are adequately monitored. The unit also has responsibility for liquidity management; ensuring that the bank is able to honour its commitments as and when they fall due. Effective 1st January 2016, the Business Units of the Bank will be re-structured along the lines of Consumer, Commercial and Corporate. Loans and advances to customers AT 31 DECEMBER 2015 THE GROUP DOMESTIC BANK CORPORATE BANK OVERDRAFTS CREDIT CARDS TERM LOANS MORTGAGES OVERDRAFTS TERM LOANS TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Grades Current 152,099 5,373 385,173 121,254 743,925 659,482 2,067,306 OLEM 7,646-31,437-127,841 376,454 543,378 159,745 5,373 416,610 121,254 871,766 1,035,936 2,610,684 AT 31 DECEMBER 2014 Grades Current 279,449 4,391 597,052 86,204 525,568 1,176,267 2,668,931 OLEM 22-9,005 - - 14,574 23,601 279,471 4,391 606,057 86,204 525,568 1,190,841 2,692,532 70

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS Loans and advances to customers (Cont d) AT 31 DECEMBER 2015 DOMESTIC BANK CORPORATE BANK THE BANK OVERDRAFTS CREDIT CARDS TERM LOANS MORTGAGES OVERDRAFTS TERM LOANS TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Grades Current 152,099 5,373 385,173 121,254 743,925 658,080 2,065,904 OLEM 7,646-31,437-127,841 376,454 543,378 159,745 5,373 416,610 121,254 871,766 1,034,534 2,609,282 AT 31 DECEMBER 2014 Grades Current 279,449 4,391 597,052 86,204 525,568 1,173,607 2,666,271 OLEM 22-9,005 - - 14,574 23,601 279,471 4,391 606,057 86,204 525,568 1,188,181 2,689,872 (c) Loans and advances past due but not impaired Loans and advances less than 90 days past due are not considered impaired, unless other information is available to indicate the contrary. Gross amounts of loans and advances by class of customers that were past due but not impaired were as follows: AT 31 DECEMBER 2015 THE GROUP AND THE BANK DOMESTIC BANK CORPORATE BANK OVERDRAFTS TERM LOANS OVERDRAFTS TERM LOANS TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 Past due up to 30 days - 774-73,045 73,819 Past due 30-60 days - 2,884 - - 2,884 Past due 60-90 days - - - - - - 3,658-73,045 76,703 At 31 December 2014 Past due up to 30 days - 287 - - 287 Past due 30-60 days - 12,042 - - 12,042 Past due 60-90 days - 20,482 - - 20,482-32,811 - - 32,811 71

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) (d) Loans and advances individually impaired A breakdown of the gross amount of individually impaired loans and advances by class, along with the fair value of related collateral held by the bank as security, is as follows: AT 31 DECEMBER 2015 THE GROUP DOMESTIC BANK CORPORATE BANK OVERDRAFTS TERM LOANS OVERDRAFTS TERM LOANS TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 Individually impaired loans 50,181 334,952-205,023 590,156 Impairment allowance 16,044 64,846-64,726 145,616 Fair value of collateral 1,246 6,389-6,523 14,158 AT 31 DECEMBER 2014 Individually impaired loans 9,172 28,087-12,327 49,586 Impairment allowance 4,120 21,175-2,157 27,452 Fair value of collateral 4,933 11,181-30,114 46,228 AT 31 DECEMBER 2015 THE BANK Individually impaired loans 50,181 334,952-205,023 590,156 Impairment allowance 16,044 64,846-64,726 145,616 Fair value of collateral 1,246 6,389-6,523 14,158 AT 31 DECEMBER 2014 Individually impaired loans 9,172 28,087-12,327 49,586 Impairment allowance 4,120 11,994-2,157 27,452 Fair value of collateral 4,933 11,181-30,114 46,228 72

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS (e) Loans and advances renegotiated Restructuring activities include extended payment arrangements, approved external management plans, modification and deferral of payments. Restructuring policies and practices are based on indicators or criteria which, in the judgment of management, indicate that payment will most likely continue. These policies are kept under continuous review. Restructuring is most commonly applied to term loans. Loans and advances to customers THE GROUP AND THE BANK 2015 GH 000 2014 GH 000 Continuing to be impaired after restructuring (included in non-performing loans) 342,748 554 Non-impaired after restructuring would otherwise have been impaired 67,943 7,239 (f) Repossessed collateral During the year ended 31 December, the Group took possession of the following collateral held as security: THE GROUP AND THE BANK 2015 2014 COLLATERAL RELATED LOAN COLLATERAL RELATED LOAN GH 000 GH 000 GH 000 GH 000 Commercial Property 3,256 7,512 4,597 15,826 Vehicles and equipment 825 1,574 913 283 4,081 9,086 5,510 16,109 73

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) (f) Repossessed collateral (cont d) Repossessed properties are sold as soon as practicable and the proceeds used to reduce outstanding indebtedness. The group does not generally use the non-cash collateral for its own operations. (g) Loans and advances per Bank of Ghana classification Set out below is an analysis of the gross and net (of allowance for impairment) amounts of individually impaired loans and advances by risk grade. AT 31 DECEMBER 2015 GROSS GH 000 Current 2,623,362 OLEM 110,285 Substandard 507,736 Doubtful 13,673 Loss 21,085 3,276,141 AT 31 DECEMBER 2014 Current 2,677,977 OLEM 2,758 Substandard 31,584 Doubtful 51,805 Loss 8,146 2,772,269 3.2 MARKET RISK Market risk is the risk of loss arising from adverse changes in market conditions (interest rates, exchange rates and equity prices) during the period. Positions that expose the Group to market risk can be trading or non-trading related. Trading risk comprises positions that the Group holds as part of its trading or market-making activities, whereas non-trading risk includes discretionary positions that the Group undertake for liquidity. 3.2.1 Risk identification The Group identifies market risk through daily monitoring of levels and profit and loss balances of trading and non-trading positions. The Market Risk Controller together with the risk department monitor daily trading activities to ensure that risk exposures taken are within approved limits and overall risk tolerance levels set by the Board. In addition, Assets and Liabilities Committee (ALCO) members, the Treasurer, the Chief Finance Officer and the Country Risk Manager monitor market risk factors that affect the value of trading and non-trading positions as well as income streams on non-trading portfolios on a daily basis. They also track liquidity indicators to ensure that Group subsidiaries meet their financial obligations at all times. 3.2.2 Interest rate risk Interest rate risk is the exposure of current and future earnings and capital to adverse changes in the level of interest rates. Exposure to interest rate risk can result from a variety of factors, including: (i) Differences between the timing of market interest rate changes and the timing of cash flows (repricing risk); (ii) Changes in the market interest rates producing different effects on yields on similar instruments with different maturities (yield curve risk); and (iii) Changes in the level of market interest rates producing different effects on rates received or paid on instruments with similar repricing characteristics (basis risk). 74

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 3.2.2 Interest rate risk (cont d) The Asset and Liability Management (ALM) process, managed through ALCO, is used to manage interest rate risks associated with the nontrading book. Gap analysis is used in measuring interest rate risk. It compares the values of interest rate sensitive assets and liabilities that mature or are re-priced at various time periods in the future. Subjective judgment/assumptions are made about the behavior of assets and liabilities which do not have specific contractual maturity or re-pricing dates. Interest rate risk evaluates potential volatility to net interest income caused by changes in market interest rates and represents the most significant market risk exposure to the Group s non-trading book. The Group uses gap analysis to measure its exposure to interest rate risk. Through this analysis, it compares the values of interest rate sensitive assets and liabilities that mature or reprice at various time periods in the future. The Group may make judgmental assumptions about the behaviour of assets and liabilities which do not have specific contractual maturity or repricing dates. The table below summarises the repricing profiles of the bank s financial instruments and other assets and liabilities at 31 December 2015. Items are allocated to time periods with reference to the earlier of the next contractual interest rate re-pricing and maturity dates. AT 31 DECEMBER 2015 THE GROUP NON- UP TO 1 1-3 3-12 OVER INTEREST MONTH MONTHS MONTHS 1 YEAR BEARING TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 ASSETS Cash and balances with Bank of Ghana - - - - 772,942 772,942 Government securities 513,072 116,030 39,160 58,464-726,726 Loans and advances to Banks 536,501 147,425 227,910-538,171 1,450,007 Loans and advances to customers 47,826 72,555 455,419 1,458,662 1,083,411 3,117,873 Investment securities: available for sale - - - - 2,148 2,148 Other assets - - - - 307,315 307,315 Total financial assets 1,097,399 336,010 722,489 1,517,126 2,703,987 6,377,011 LIABILITIES Deposits from Banks 130,469 24,199 26,154-24,301 205,123 Customer deposits 919,913 23,539 67,023 771 3,826,704 4,837,950 Borrowings - 128 1,601 320,247-321,976 Other liabilities - - - - 437,008 437,008 Total financial liabilities 1,050,382 47,866 94,778 321,018 4,288,013 5,802,057 Total interest re-pricing gap 47,017 288,144 627,711 1,196,108 (1,584,026) 574,954 75

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 3.2.2 Interest rate risk (cont d) AT 31 DECEMBER 2014 THE GROUP UP TO 1 MONTH GH 000 1-3 MONTHS GH 000 3-12 MONTHS GH 000 OVER 1 YEAR GH 000 NON- INTEREST BEARING GH 000 TOTAL GH 000 ASSETS Cash and balances with Bank of Ghana - - - - 609,153 609,153 Government securities 112,695 294,170 206,089 119,902-732,856 Loans and advances to Banks 544,307 117,810 - - 803,523 1,465,640 Loans and advances to customers 1,175,021 171,640 197,025 1,165,831-2,709,517 Investment securities: available for sale - - - - 1,522 1,522 Other assets - - - - 80,140 80,140 Total financial assets 1,832,023 583,620 403,114 1,285,733 1,494,338 5,598,828 LIABILITIES Deposits from Banks - - - - 176,394 176,394 Customer deposits 1,063,598 29,960 238,599 1,364 2,900,913 4,234,434 Borrowings - - 69,208 157,919-227,127 Other liabilities - - - - 272,854 272,854 Total financial liabilities 1,063,598 29,960 307,807 159,283 3,350,161 4,910,809 Total interest repricing gap 768,425 553,660 95,307 1,126,450 (1,855,823) 688,019 AT 31 DECEMBER 2015 THE BANK ASSETS Cash and balances with Bank of Ghana - - - - 772,942 772,942 Government securities 460,541 62,542 13,125 55,899-592,107 Loans and advances to Banks 536,501 147,425 227,910-537,094 1,448,930 Loans and advances to customers 47,826 72,555 455,419 1,458,662 1,082,287 3,116,749 Investment securities: available for sale - - - - 2,148 2,148 Other assets - - - - 327,184 327,184 Total financial assets 1,044,868 282,522 696,454 1,514,561 2,721,655 6,260,060 76

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 3.2.2 Interest rate risk (cont d) AT 31 DECEMBER 2014 THE BANK LIABILITIES UP TO 1 MONTH GH 000 1-3 MONTHS GH 000 3-12 MONTHS GH 000 OVER 1 YEAR GH 000 NON- INTEREST BEARING GH 000 TOTAL GH 000 Deposits from Banks 170,969 55,199 36,465-24,301 286,934 Customer deposits 778,760 13,112 45,834 771 3,826,035 4,664,512 Borrowings - 128 1,601 320,247-321,976 Other liabilities - - - - 433,036 433,036 Total financial liabilities 949,729 68,439 83,900 321,018 4,283,372 5,706,458 Total interest re-pricing gap 95,139 214,083 612,554 1,193,543 (1,561,717) 553,602 AT 31 DECEMBER 2014 ASSETS Cash and balances with Bank of Ghana - - - - 609,153 609,153 Government securities 112,695 223,304 197,763 96,883-630,645 Loans and advances to Banks 544,307 117,810 - - 796,296 1,458,413 Loans and advances to customers 1,175,021 171,640 197,025 1,163,407-2,707,093 Investment securities: available for sale - - - - 1,522 1,522 Other assets - - - - 80,499 80,499 Total financial assets 1,832,023 512,754 394,788 1,260,290 1,487,470 5,487,325 LIABILITIES Deposits from Banks - - - - 302,211 302,211 Customer deposits 1,063,598 29,960 238,599 1,364 2,694,603 4,028,124 Borrowings - - 69,208 157,919-227,127 Other liabilities - - - - 270,539 270,539 Total financial liabilities 1,063,598 29,960 307,807 159,283 3,267,353 4,828,001 Total interest re-pricing gap 768,425 482,794 86,981 1,101,007 (1,779,883) 659,324 77

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 3.2.3 Foreign exchange risk Foreign exchange risk is measured through the statement of comprehensive income. The Group takes on exposure to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flows. The Board sets limits on the level of exposure by currency and in total for both overnight and intra-day positions. The table below summarises the company s exposure by currency exchange rates on its financial position and cash flows. AT 31 DECEMBER 2015 THE GROUP EUR USD GBP GH OTHERS TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 ASSETS Cash and balances with Bank of Ghana 16,720 101,932 27,908 626,340 42 772,942 Government securities - 41,745-684,981-726,726 Loans and advances to Banks 177,651 763,448 52,259 445,879 10,770 1,450,007 Loans and advances to customers 6,906 633,925 93 2,476,949-3,117,873 Investment securities: available for sale - - - 2,148-2,148 Other assets 516 26,867-307,864-335,247 TOTAL 201,793 1,567,917 80,260 4,544,161 10,812 6,404,943 LIABILITIES Deposits from Banks 21,712 79,159-104,252-205,123 Deposits due to customers 172,809 1,986,220 74,293 2,592,896 11,732 4,837,950 Other liabilities 1,333 118,590 240 316,845-437,008 Borrowings - 312,462-9,514-321,976 TOTAL 195,854 2,496,431 74,533 3,023,507 11,732 5,802,057 Net on balance sheet position 5,939 (928,514) 5,727 1,520,654 (920) 602,886 Credit commitments 1,075,392 1,012,234-1,332,375 900,319 4,320,320 78

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 3.2.3 Foreign exchange risk (Cont d) AT 31 DECEMBER 2014 THE GROUP EUR USD GBP GH OTHERS TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Cash and balances with Bank of Ghana 14,692 32,189 23,950 538,322-609,153 Government securities - - - 732,856-732,856 Loans and advances to Banks 127,227 1,081,398 34,448 222,567-1,465,640 Loans and advances to customers 2,437 1,258,017 26 1,449,037-2,709,517 Investment securities: available for sale - - - 1,522-1,522 Other assets 4 16,615 2,495 58,479 2,547 80,140 TOTAL 144,360 2,388,219 60,919 3,002,783 2,547 5,598,828 LIABILITIES Deposits from Banks 13,991 152,163 376 9,864-176,394 Deposits due to customers 128,819 1,915,022 60,059 2,130,534-4,234,434 Other liabilities 888 112,063 211 150,020 9,672 272,854 Borrowings - 197,109-30,018-227,127 TOTAL 143,698 2,376,357 60,646 2,320,436 9,672 4,910,809 Net on balance sheet position 662 11,862 273 682,347 (7,125) 688,019 Credit commitments 62,015 832,627-47,638 29,912 972,192 AT 31 DECEMBER 2015 THE BANK ASSETS Cash and balances with Bank of Ghana 16,720 101,932 27,908 626,340 42 772,942 Government securities - 41,745-550,362-592,107 Loans and advances to Banks 177,650 763,448 52,260 444,802 10,770 1,448,930 Loans and advances to customers 6,906 633,925 93 2,475,825-3,116,749 Investment securities: available for sale - - - 2,148-2,148 Other assets 516 26,867-326,705-354,088 TOTAL 201,792 1,567,917 80,261 4,426,183 10,812 6,286,964 79

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 3.2.3 Foreign exchange risk (Cont d) AT 31 DECEMBER 2015 THE BANK LIABILITIES EUR USD GBP GH OTHERS TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Deposits from Banks 21,712 79,159-186,063-286,934 Deposits due to customers 172,809 1,986,220 74,293 2,419,459 11,732 4,664,513 Other liabilities 1,333 118,590 240 312,873-433,036 Borrowings - 312,462-9,514-321,976 TOTAL 195,854 2,496,431 73,534 2,927,909 11,732 5,706,459 Net on balance sheet position 5,938 (928,514) 5,728 1,498,273 (920) 580,505 Credit commitments 1,075,392 1,012,234-1,332,375 900,319 4,320,320 AT 31 DECEMBER 2014 Cash and balances with Bank of Ghana 14,692 32,189 23,950 538,322-609,153 Government securities - - - 630,645-630,645 Loans and advances to Banks 127,227 1,081,398 34,448 215,340-1,458,413 Loans and advances to customers 2,437 1,258,017 26 1,446,613-2,707,093 Investment securities: available for sale - - - 1,522-1,522 Other assets 4 16,615 2,495 76,650 2,547 98,311 TOTAL 144,360 2,388,219 60,919 2,909,092 2,547 5,505,137 LIABILITIES Deposits from Banks 13,991 152,163 376 135,681-302,211 Deposits due to customers 128,819 1,915,022 60,059 1,924,224-4,028,124 Other liabilities 888 112,063 211 150,020 9,672 272,854 Borrowings - 197,109-30,018-227,127 TOTAL 143,698 2,376,357 60,646 2,239,943 9,672 4,830,316 Net on balance sheet position 662 11,862 273 669,149 (7,125) 674,821 Credit commitments 62,015 832,627-47,638 29,912 972,192 80

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS The following significant exchange rates applied during the year: GH 1 to THE GROUP AND THE BANK AVERAGE RATE REPORTING RATE 2015 2014 2015 2014 USD1 3.7714 2.9371 3.7950 3.2001 GBP1 5.7475 4.8269 5.6165 4.9791 EURO1 4.1592 3.8708 4.1320 3.8959 XOF1 0.0100 0.00594 0.00633 0.00590 3.2.4 Market risk measurement techniques The Group applies the value at risk methodology (VAR) to its trading and non-trading portfolios, to estimate exposure to market risk of positions held and maximum losses expected, based on a number of assumptions for various changes in market conditions. The Board sets limits on the value of risk that may be accepted for the Group, trading and non-trading separately, which are monitored on a daily basis by Group Treasury. VAR is a statistically based estimate of the potential loss on the current portfolio from adverse market movements. It expresses the maximum amount the Group might lose, but only to a certain level of confidence (98%). There is therefore a specified statistical probability (2%) that actual loss could be greater than the VAR estimate. The VAR model assumes a certain holding period until positions can be closed (10 days). It also assumes that market moves occurring over this holding period will follow a similar pattern to those that have occurred over the preceeding10-day period in the past. The Group s assessment of past movements is based on data for the past five years. The Group applies these historical changes in rates, prices, indices, etc. directly to its current positions - a method known as historical simulation. Actual outcomes are monitored regularly to test the validity of assumptions and parameters/factors used in the VAR calculation. The use of this approach does not prevent losses outside of these limits in the event of more significant market movements. THE GROUP AND THE BANK 2015 2014 LOW AVERAGE HIGH LOW AVERAGE HIGH GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Foreign exchange risk 36 216 432 44 142 533 Interest rate risk 39 161 437 6 941 1,758 81

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 3.2.5 Risk monitoring and control The Risk Management department is responsible for reviewing exposure to market risk. The Treasury department monitors interest rate and liquidity risks through daily, weekly, and monthly reviews of the structure and pricing of assets and liabilities. Assets and Liability Committee (ALCO) meetings are also held monthly. The Bank analyses the impact of unlikely, but not impossible events by means of scenario analysis, which enables management gain a better understanding of risks that it could be exposed to in extreme conditions. Both historical and hypothetical events are tested. 3.2.6 Risk reporting Reports on the bank s positions are reviewed daily by the Internal Audit and Compliance Unit. Reports include foreign currency positions and liquidity positions in all currencies. Variations to expectations are reviewed and corrected if need be. 3.3 LIQUIDITY RISK Liquidity risk is the risk that the Bank will not be able to meet payment obligations associated with financial liabilities when they fall due and replace funds when they are withdrawn. The consequence may be the failure to meet obligations to repay depositors and fulfill commitments to lend. It is the policy of the Bank to maintain adequate liquidity at all times and to be in a position to meet all obligations, repay depositors, fulfill commitments to lend and meet any other commitments as and when they fall due. The management of liquidity risk is governed by the Bank s liquidity policy. Responsibility for the management of liquidity risk lies with the Bank s Assets and Liability Management Committee (ALCO), which is chaired by an Executive Director. ALCO is responsible for both statutory and prudential liquidity as well as compliance with regulatory requirements. The primary objective of liquidity risk management is to provide a planning mechanism for unanticipated changes in demand or needs for liquidity created by customer behavior or abnormal market conditions. ALCO emphasizes the maximization and preservation of customer deposits and other funding sources. ALCO also monitors deposit rates, levels, trends and significant changes. Liquidity is managed on a short to medium-term basis. In the short term, the focus is on ensuring that cash flow demands can be met as and when required. The focus, in the medium term, is on ensuring that the balance sheet remains structurally sound and aligned to the bank s strategy. A substantial portion of the Bank s assets are funded by customer deposits made up of current and savings accounts and other deposits. These customer deposits, which are widely diversified by type and maturity, represent a stable source of surplus funds. Lending is normally funded by liability in the same currency. The Bank also maintains significant levels of marketable securities to meet compliance with prudential investment of surplus funds. ALCO oversees structural foreign currency and interest rate exposures that arise within the Bank. These responsibilities are coordinated by ALCO during monthly meetings. The Bank places low reliance on interbank funding and foreign markets. The following table presents the cash flows payable under non-derivative financial liabilities and assets held for managing liquidity risk by remaining contractual maturities at the reporting date. The amounts disclosed in the table are the contractual undiscounted cash flows, whereas the Group manages the inherent liquidity risk based on expected undiscounted cash inflows. 82

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 3.3 LIQUIDITY RISK (CONT D) AT 31 DECEMBER 2015 THE GROUP UP TO 1 MONTH 1-3 MONTHS 3-12 MONTHS OVER 1 YEAR TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 LIABILITIES Deposits from Banks 154,770 24,199 26,154-205,123 Customers deposits 4,745,870 24,199 67,023 858 4,837,950 Other liabilities 437,008 - - - 437,008 Borrowings - 128 1,601 320,247 321,976 5,337,648 48,526 94,778 321,105 5,802,057 ASSETS Cash and balances with Bank of Ghana 772,942 - - - 772,942 Government securities 513,072 116,030 39,160 58,464 726,726 Loans and advances to Banks 1,074,672 147,425 227,910-1,450,007 Loans and advances to customers 1,160,693 72,555 455,419 1,429,206 3,117,873 Investment security 2,148 - - - 2,148 Other assets 307,315 - - - 307,315 Assets held for managing liquidity risk 3,830,842 336,010 722,489 1,487,670 6,377,011 Liquidity gap 1,506,806 (287,484) (627,711) (1,166,565) (574,954) AT 31 DECEMBER 2014 Deposits from Banks 176,394 - - - 176,394 Deposits due to customers 1,063,598 29,960 238,599 2,902,277 4,234,434 Other liabilities 272,854 - - - 272,854 Borrowings - - 69,208 157,919 227,127 1,512,846 29,960 307,807 3,060,196 4,910,809 ASSETS Cash and balances with Bank of Ghana 609,153 - - - 609,153 Government securities 112,695 294,170 206,089 119,902 732,856 Loans and advances to Banks 544,307 117,810 94,366 709,157 1,465,640 Loans and advances to customers 1,175,021 171,640 197,025 1,165,831 2,709,517 Investment security - - - 1,522 1,522 Other assets 80,140 - - - 80,140 Assets held for managing liquidity risk 2,521,316 583,620 497,480 1,996,412 5,598,828 Liquidity gap (1,008,470) (553,660) (189,673) 1,063,784 (688,019) 83

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 3.3 LIQUIDITY RISK (CONT'D) AT 31 DECEMBER 2015 THE BANK UP TO 1 MONTH 1-3 MONTHS 3-12 MONTHS OVER 1 YEAR TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 Deposits from Banks 195,270 55,199 36,465-286,934 Customers Deposits 4,571,927 24,199 67,023 1,364 4,664,513 Other liabilities 433,036 - - - 433,036 Borrowings - 128 1,601 320,247 321,976 5,200,233 79,526 105,089 321,611 5,706,459 ASSETS Cash and balances with Bank of Ghana 772,942 - - - 772,942 Government securities 460,541 62,542 13,125 55,899 592,107 Loans and advances to Banks 1,073,595 147,425 227,910-1,448,930 Loans and advances to customers 1,159,569 72,555 455,419 1,429,206 3,116,749 Investment security 2,148 - - - 2,148 Other assets 327,184 - - - 327,184 Assets held for managing liquidity risk 3,795,979 282,522 696,454 1,485,105 6,260,060 Liquidity gap 1,404,254 (202,996) (591,365) (1,163,494) (553,601) AT 31 DECEMBER 2014 LIABILITIES Deposits from Banks 302,211 - - - 302,211 Deposits due to customers 1,063,598 29,960 238,599 2,695,967 4,028,124 Other liabilities 270,539 - - - 270,539 Borrowings - - 69,208 157,919 227,127 1,636,348 29,960 307,807 2,853,886 4,828,001 ASSETS Cash and balances with Bank of Ghana 609,153 - - - 609,153 Government securities 112,695 294,170 106,089 117,691 630,645 Loans and advances to Banks 544,307 117,810 94,366 701,930 1,458,413 Loans and advances to customers 1,175,021 171,640 197,025 1,163,407 2,707,093 Investment security - - - 1,522 1,522 Other assets 80,499 - - - 80,499 Assets held for managing liquidity risk 2,521,675 583,620 397,480 1,984,550 5,487,325 Liquidity gap (885,327) (553,660) (89,673) 869,336 (659,324) 84

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 3.4 COUNTRY ANALYSIS THE GROUP ASSETS IN GHANA 2015 OUTSIDE GHANA 2015 IN GHANA 2014 OUTSIDE GHANA 2014 GH 000 GH 000 GH 000 GH 000 Cash and balances with Bank of Ghana 772,942-609,153 - Government securities 726,726-732,856 - Loans and advances to Banks 408,661 1,041,346 623,560 842,080 Loans and advances to customers 3,117,873-2,709,517 - Investment securities 2,148-1,522 - TOTAL ASSETS 5,028,350 1,041,346 4,676,608 842,080 LIABILITIES Deposits from Banks 168,716 36,407 161,142 15,252 Deposits due to customers 4,837,950-4,188,318 46,116 Borrowings 9,514 312,462 33,332 193,795 TOTAL LIABILITIES 5,016,180 348,869 4,382,792 255,163 THE BANK ASSETS Cash and balances with Bank of Ghana 772,942-609,153 - Government securities 592,107-630,645 - Loans and advances to Banks 445,007 1,003,923 616,333 842,080 Loans and advances to customers 3,116,749-2,707,093 - Investment securities 2,148-1,522 - TOTAL ASSETS 4,928,953 1,003,923 4,564,746 842,080 LIABILITIES Deposits from Banks 213,104 73,830 286,959 15,252 Deposits due to customers 4,664,513-3,982,008 46,116 Borrowings 9,514 312,462 33,332 193,795 TOTAL LIABILITIES 4,887,131 386,292 4,302,299 255,163 85

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 3.5 FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or dealer price quotations. For all other financial instruments, the Group determines fair values using other valuation techniques. For financial instruments that trade infrequently and have little price transparency, fair value is less objective, and requires varying degrees of judgment depending on liquidity, concentration, uncertainty of market factors, pricing assumptions and other risks affecting the specific instrument. (a) Valuation models The Group measures fair values using the following fair value hierarchy, which reflects the significance of inputs used in making the measurements. Level 1: inputs that are quoted market prices (unadjusted) in active markets for identical instruments. Level 2: inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data. Level 3: inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument s valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments. Valuation techniques include net present value and discounted cash flow models, comparison with similar instruments for which market observable prices exist and other valuation models. Assumptions and inputs used in valuation techniques include risk free and benchmark interest rates, credit spreads and other premiums used in estimating discount rates and foreign currency exchange rates and expected price volatilities and correlations. The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The Group uses widely recognised valuation models for determining the fair value of common and more simple financial instruments that use only observable market data and require little management judgment and estimation. Availability of observable market prices and model inputs reduces the need for management judgement and estimation and also reduces the uncertainty associated with determining fair values. Availability of observable market prices and inputs varies depending on the products and markets and is prone to changes based on specific events and general conditions in the financial markets. (b) Financial instruments measured at fair value fair value hierarchy The following table analyses financial and non-financial assets measured at fair value at the reporting date, by the level in the fair value hierarchy into which the fair value measurement is categorised. The amounts are based on the values recognised in the statement of financial position. 86

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS (b) Financial instruments measured at fair value fair value hierarchy (Cont d) THE GROUP AND THE BANK LEVEL 1 LEVEL 2 LEVEL 3 GH 000 GH 000 GH 000 2015 Government securities - 18,809 - Investment securities-afs - 2,148 - - 20,957-2014 Government securities - 43,053 - Investment securities-afs - 1,522 - - 44,575-87

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) (i) Land and Buildings An external, independent valuation Company, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued, values the Group s property. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. (c) Financial instruments not measured at fair value The following table sets out the fair values of financial instruments not measured at fair value in the statement of financial position, analysed by reference to levels in the fair value hierarchy into which each fair value measurement is categorized: THE GROUP AT 31 DECEMBER 2015 LEVEL 1 LEVEL 2 LEVEL 3 TOTAL FAIR VALUE TOTAL CARRYING AMOUNT GH 000 GH 000 GH 000 GH 000 GH 000 NON-DERIVATIVE FINANCIAL ASSETS Government securities - 714,990-714,990 726,726 Loans and advances to customers - 3,020,619-3,020,619 3,117,873 Loans and advances to Banks - 1,435,910-1,435,910 1,450,007 Other assets - - 307,315 307,315 307,315-5,171,519 307,315 5,478,834 5,601,921 NON-DERIVATIVE FINANCIAL LIABILITIES Deposits from Banks - 201,488-201,488 205,123 Deposits from customers - 4,747,401-4,747,401 4,837,950 Borrowings - 320,156-320,156 321,976 Other liabilities - - 437,008 437,008 437,008-5,269,044 437,008 5,706,053 5,802,057 AT 31 DECEMBER 2014 NON-DERIVATIVE FINANCIAL ASSETS Government securities - 701,533-701,533 732,856 Loans and advances to customers - 2,659,113-2,659,113 2,709,517 Loans and advances to Banks - 1,395,727-1,395,727 1,465,640 Cash and Balances with Bank of Ghana - 6,230-6,230 1,522 Other assets - - 79,859 79,859 80,140-4,762,603 79,859 4,824,462 4,989,675 NON-DERIVATIVE FINANCIAL LIABILITIES Deposits from Banks - 171,769-171,769 176,394 Deposits from customers - 4,048,979-4,048,979 4,234,434 Borrowings - 216,271-216,271 227,127 Other liabilities - - 271,896 271,896 272,854-4,437,019 271,896 4,708,915 4,910,809 88

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS AT 31 DECEMBER 2015 THE BANK LEVEL 1 LEVEL 2 LEVEL 3 TOTAL FAIR VALUE TOTAL CARRYING AMOUNT GH 000 GH 000 GH 000 GH 000 GH 000 NON-DERIVATIVE FINANCIAL ASSETS Government securities - 582,545-582,545 592,107 Loans and advances to customers - 3,019,530-3,019,530 3,116,749 Loans and advances to Banks - 1,434,844-1,434,844 1,448,930 Other assets - - 327,184 327,184 327,184-5,036,919 327,184 5,364,103 5,484,970 NON-DERIVATIVE FINANCIAL LIABILITIES Deposits from Banks - 281,849-281,849 286,934 Deposits from customers - 4,577,210-4,577,210 4,664,513 Borrowings - 320,156-320,156 321,976 Other liabilities - - 433,036 433,036 433,036-5,179,215 433,036 5,612,251 5,706,459 AT 31 DECEMBER 2014 NON-DERIVATIVE FINANCIAL ASSET Government securities - 610,250-610,250 630,645 Loans and advances to customers - 2,659,113-2,659,113 2,707,093 Loans and advances to Banks - 1,395,727-1,395,727 1,458,413 Cash and balances with Bank of Ghana - 6,230-6,230 1,522 Other assets - - 80,216 80,216 80,499-4,671,320 80,216 4,751,536 4,878,172 NON-DERIVATIVE FINANCIAL LIABILITIES Deposits from Banks - 171,769-171,769 302,211 Deposits from customers - 4,048,979-4,048,979 4,028,124 Borrowings - 216,271-216,271 227,127 Other liabilities - - 269,259 269,259 270,539-4,437,019 269,259 4,706,278 4,828,001 The fair value of government securities is based on market prices or broker/dealer price quotations. Where this information is not available, fair value is determined using quoted market prices for securities with similar credit, maturity and yield characteristics. Where applicable, the fair value of loans and advances to customers is based on observable market transactions. Where observable market transactions are not available, fair value is estimated using valuation models such as discounted cash flow techniques which represents the discounted amount of estimated future cash flows expected to be received. Expected cash flows are discounted at current market rates to determine the fair value. For collateral-dependent impaired loans, the fair value is measured based on the value of the underlying collateral. 89

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) The fair value of advances to and from Banks is based on discounted cash flow techniques applying the rates of similar maturities and terms. The fair value of term deposits by customers is estimated using discounted cash flow techniques, applying the rates that are offered for deposits of similar maturities and terms. The fair value of deposits payable on demand is the amount payable at the reporting date. Fair values of borrowings are estimated using discounted cash flow techniques, applying rates that are offered for borrowings of similar maturities and terms. No fair value disclosures are provided for investments in other equity securities that are measured at cost less any impairment losses because their fair values cannot be measured reliably. These investments are unquoted equity investments with no observable market data. There is no active market for these investments and the Group does not intend to dispose off these investments in the foreseeable future. 4. CAPITAL MANAGEMENT The Group s objectives when managing capital include: Complying with capital requirements set by the Bank of Ghana Safeguarding the Group s ability to continue as a going concern to enable it continue providing returns for shareholders and benefits for other stakeholders Maintaining a strong capital base to support the development of its business Capital adequacy and the use of regulatory capital are monitored daily by management, employing techniques based on guidelines developed by the Basel Committee as implemented by Bank of Ghana for supervisory purposes. The required information is filed with Bank of Ghana on a monthly basis. Bank of Ghana requires each bank to: (a) hold a minimum regulatory capital of GH 60 million; and (b) maintain a ratio of total regulatory capital to risk-weighted assets plus risk weighted off balance sheet assets above a required minimum of 10%. The Bank s regulatory capital is divided into two tiers: Tier 1 capital: includes shareholders equity and disclosed reserves after deducting specified assets such as intangibles and certain classes of investments. Tier 2 capital: includes qualifying subordinated loan capital, collective impairment allowances and unrealised gains arising on the fair valuation of equity instruments held as available for sale. The risk-weighted assets are measured by means of a hierarchy of five risk weights classified according to the nature and reflecting an estimate of credit, market and other risks associated with each asset and counterparty. A similar treatment is adopted for off-balance sheet exposures, with some adjustments to reflect the more contingent nature of potential losses. The following table summarises the composition of regulatory capital and ratios of the Group for the years ended 31 December. During these two years, the individual entities within the Group and the Group complied with all externally imposed capital requirements that they are subject to. 90

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 4. CAPITAL MANAGEMENT (CONT D) THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 TIER 1 CAPITAL Share capital 226,641 226,641 226,641 226,641 Statutory reserves 282,412 241,443 281,923 240,983 Income surplus 272,852 264,393 263,775 249,030 Intangibles/other assets (61,030) (53,460) (81,803) (75,182) Total qualifying tier 1 capital 720,875 679,017 690,536 641,472 TIER 2 CAPITAL Subordinated debt 130,916 100,387 130,916 100,387 Other reserves 59,057 31,810 58,231 31,810 Total qualifying tier 2 capital 189,973 132,197 189,147 132,197 Total regulatory capital 910,848 811,214 879,683 773,669 RISK WEIGHTED ASSETS On balance sheet 4,522,683 3,758,445 4,535,508 3,750,441 Off balance sheet 600,775 953,136 600,775 953,136 Total risk weighted assets 5,123,458 4,711,581 5,136,283 4,703,577 Capital adequacy ratio 17.78% 17.22% 17.13% 16.45% The group complied with all external capital requirements. 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The Group s financial statements and financial results are influenced by accounting policies, assumptions, estimates and management judgment, which necessarily have to be made in the course of preparing the financial statements. (a) Impairment losses on loans and advances The Group makes estimates and assumptions that affect reported amounts of assets and liabilities. All estimates and assumptions required in conformity with IFRS are based on best estimates undertaken in accordance with applicable standards. Estimates and judgments are evaluated on a continuous basis, based on past experience and other factors, including expectations with regard to future events. 91

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) (a) Impairment losses on loans and advances (cont d) The Group reviews its loan portfolio to assess impairment at least on a quarterly basis. In determining whether an impairment loss should be recorded in profit or loss, the Group considers observable data that may indicate measurable decreases in estimated future cash flows from a portfolio of loans before decreases can be identified with individual loans in that portfolio. This evidence may include observable data indicating adverse changes in the payment status of borrowers in a group, or economic conditions that correlate with defaults on assets in a group. Management uses estimates based on historical loss experience for assets with similar credit risk characteristics and objective evidence of impairment similar to those in the portfolio when projecting future cash flows. The methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed regularly to reduce any differences between loss estimates and actual loss experience. (b) Impairment of available for-sale equity investments The Group determines that available-for-sale equity investments are impaired when there has been a significant or prolonged decline in the fair value below its cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the Group evaluates among other factors, the normal volatility in share prices. (c) Fair value of financial instruments The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are determined using valuation techniques. In these cases, fair values are estimated from observable data in respect of similar financial instruments or using models. Models are calibrated to ensure that outputs reflect actual data and comparative market prices. (d) Income taxes Significant estimates are required in determining provisions for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax liabilities based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences are adjusted in the period in which such determination is made. 6. INTEREST INCOME THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Financial assets measured at amortised cost Placement and short-term funds 91,084 74,769 64,050 65,725 Treasury bills and Government securities 161,344 181,889 139,237 160,550 Loans and advances 591,136 436,784 587,674 434,315 843,564 693,442 790,961 660,590 7. INTEREST EXPENSE Financial liabilities measured at amortised cost Demand deposits 57,188 30,472 48,131 20,728 Time deposits 56,405 71,689 29,592 61,379 Borrowed funds 26,087 19,938 26,164 19,928 Savings 21,643 15,623 21,642 15,623 161,323 137,722 125,529 117,658 92

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 8. FEES AND COMMISSION INCOME THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Trade finance fees 34,826 31,426 34,826 31,406 Credit related fees and commission 52,198 41,381 52,156 41,343 Cash management 54,921 38,670 54,921 38,670 Other fees and commission 47,300 41,177 47,350 41,228 189,245 152,654 189,253 152,647 9. FEE AND COMMISSION EXPENSE Charges for services 3,883 2,274 3,883 2,252 10. LEASE INCOME Finance lease 3,682 1,969 3,674 1,957 11. NET TRADING INCOME Foreign exchange: - translation gains less losses 5,834 5,890 5,623 5,614 - transaction gains less losses 128,052 130,494 128,050 130,494 - Interest rate instruments 4,971 2,814 4,678 2,557 138,857 139,198 138,351 138,665 12. DIVIDEND INCOME THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Investment (available-for-sale) 3,487 5 23,438 5 93

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 13 (a) Other revenue / Other income THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Other revenue 9,500 10,465 9,500 10,365 (b) Other income Profit on sale of equipment 184 94 184 94 14. IMPAIRMENT CHARGE/ALLOWANCE - LOANS AND ADVANCES THE GROUP THE BANK Impairment charge 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Loan impairment: Individual 158,076 48,431 158,076 48,322 Collective (23,906) 7,451 (23,948) 7,451 Recoveries (18,375) (23,857) (18,375) (23,857) Charge to income statement 115,795 32,025 115,753 31,916 Impairment allowance At 1 January 65,412 93,914 65,176 93,787 Increase in impairment 115,795 32,025 115,753 31,916 Amounts written off during the year as uncollectible (21,537) (60,527) (21,537) (60,527) At 31 December 159,670 65,412 159,392 65,176 15. OPERATING EXPENSES THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Staff expenses 246,124 187,153 245,796 186,863 Rent 10,407 7,359 10,390 7,331 Travel 8,871 3,984 8,871 3,984 Technology and communication 56,936 58,918 56,927 58,906 Business promotion 18,077 8,012 18,077 8,005 Advertising 1,799 2,583 1,799 2,583 Training 4,235 2,012 4,235 2,012 94

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 15. OPERATING EXPENSES (CONT D) THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Audit fees 635 551 513 446 Directors fees 1,000 999 1,000 999 Repairs and maintenance 8,612 7,960 8,612 7,960 Depreciation of property and equipment 15,124 13,038 15,109 13,004 Amortisation of software 4,524 4,082 4,524 4,082 Utilities 6,944 7,111 6,899 7,078 Other administrative expenses 63,675 69,453 63,522 69,453 Realised loss on securities disposed - 3,813-3,813 Corporate social responsibility 2,843 2,441 2,843 2,441 449,806 379,469 449,117 378,960 The major administrative expenses include stationery and supplies, insurance, office security, printing, fuel, cash in transit overheads and legal fees. THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Staff expenses comprise: Wages and salaries 140,037 103,210 139,827 102,935 Social security fund contribution 11,288 8,289 11,264 8,289 Other allowances 94,799 75,654 94,705 75,639 246,124 187,153 245,796 186,863 The number of persons employed by the Group at the year-end was 1,465 (2014:1,463) 16. INCOME TAX THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Income tax expense Current tax 111,503 115,833 108,366 113,311 Nation fiscal stabilization Levy (Note 18) 23,679 22,186 22,054 21,677 Deferred tax (Note 17) 2,112 (11,043) 2,136 (11,064) 137,294 126,976 133,556 123,924 95

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 16. INCOME TAX (CONT D) THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Profit before tax 458,560 446,941 461,079 433,537 The tax on the Group and the Bank s profit before tax differs from the theoretical amount that would arise using the basic tax rate as follows: Corporate tax rate at 25% (2014: 25%) Tax using the bank s domestic tax rate 114,640 111,735 115,270 108,384 Tax incentives (13) (505) (13) (505) Non deductible 5,926 826 1,151 826 Tax exempt income (6,938) (809) (5,906) (1) Other temporary difference - (6,457) - (6,457) National fiscal stabilization levy 23,679 22,186 23,054 21,677 Income tax expense 137,294 126,976 133,556 123,924 Effective tax rates 30% 28% 29% 29% The movement on corporate tax was as follows: THE GROUP YEAR OF ASSESSMENT Balance at Charge for Balance at 1 January the year Payment 31 December GH 000 GH 000 GH 000 GH 000 Up to 2009 1,016 - - 1,016 2010-2012 42 - - 42 2013-2014 311 - (309) 2 2015-111,503 (126,824) (15,321) 1,369 111,503 127,133 (14,261) National fiscal stabilization levy (281) 23,679 (25,946) (2,548) 1,088 135,182 (153,079) (16,809) THE BANK YEAR OF ASSESSMENT Up to 2009 1,016 - - 1,016 2010-2012 - - - - 2013-2014 325 - - 325 2015-108,366 (123,669) (15,303) 1,341 108,366 (123,669) (13,962) National fiscal stabilization levy (362) 23,054 (25,254) (2,562) 979 131,420 (148,923) (16,524) 96

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS The movement on National Fiscal Stabilization Levy was as follows: BALANCE AT CHARGE FOR BALANCE AT 1 JANUARY THE YEAR PAYMENT 31 DECEMBER THE GROUP GH 000 GH 000 GH 000 GH 000 Year of assessment 2015 (281) 23,679 (25,946) (2,548) THE BANK Year of assessment 2015 (362) 23,054 (25,254) (2,562) 17. DEFERRED TAX The Group The Bank Movement Movement Balance during the Balance Balance during the Balance 1/1 year 31/12 1/1 year 31/12 2015 GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Gross value Recognized in OCI Revaluation of property 7,783-7,783 7,783-7,783 Available for sale securities (1,126) 571 (555) (703) 428 (275) At 31 December 2015 6,657 571 7,228 7,080 428 7,508 97

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) THE GROUP THE BANK MOVEMENT MOVEMENT BALANCE DURING THE BALANCE BALANCE DURING THE BALANCE 1/1 YEAR 31/12 1/1 YEAR 31/12 17. DEFERRED TAX (CONT D) GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Gross value Recognised in profit & loss Other provisions 1,423 (113) 1,310 1,403 (93) 1,310 Provision for loan impairment (9,432) 5,988 (3,444) (9,431) 5,987 (3,444) Accelerated tax depreciation (2,317) (3,763) (6,080) (2,317) (3,758) (6,075) At 31 December 2015 (10,326) 2,112 (8,214) (10,345) 2,136 (8,209) Net deferred tax (asset)/ liability (3,669) 2,683 (986) (3,265) 2,564 (701) 2014 Gross value Recognised in OCI Revaluation of property 1,162 6,621 7,783 1,162 6,621 7,783 Available for sale securities (1,889) 763 (1,126) (1,340) 637 (703) At 31 December 2015 (727) 7,384 6,657 (178) 7,258 7,080 Gross value Recognised in profit & loss Other provisions (1,018) 2,441 1,423 (1,018) 2,421 1,403 Provision for loan impairment (7,670) (1,762) (9,432) (7,668) (1,763) (9,431) Accelerated tax depreciation 9,405 (11,722) (2,317) 9,405 (11,722) (2,317) At 31 December 2015 717 (11,043) (10,326) 719 (11,064) (10,345) Net deferred tax (asset)/ liability (10) (3,659) (3,669) 541 (3,806) (3,265) The change on the deferred tax account was as follows: THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Profit or loss expense 2,112 (11,043) 2,136 (11,064) Other comprehensive income 571 7,384 428 7,258 98

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 18. NATIONAL FISCAL STABILISATION LEVY The National Fiscal Stabilization Levy Act, 2013 (862) was introduced in 2013 and is effective prospectively from July 2013 with an eighteen (18) months tenure. On 31 December 2014, Act (862) was amended by Act (882) to extend the date of expiration of the national fiscal stabilization levy and to provide for related matters. Under the amendment Act, the levy is payable in respect of profit before tax for the 2013, 2014, 2015, 2016 and 2017 years of assessment. Under the Act, an additional 5% levy, which is payable quarterly, is charged on profit before tax of selected entities, including Banks. 19. EARNINGS PER SHARE Basic and diluted earnings per share is calculated by dividing the net profit attributable to equity holders of the Bank by the weighted average number of ordinary shares in issue during the year. THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Profit attributable to equity holders of the Bank 321,266 319,965 327,523 309,613 Weighted average number of ordinary shares 293,228 293,228 293,228 293,228 Basic earnings per share (expressed in Ghana pesewas per share) 110 109 112 106 Diluted earnings per share (expressed in Ghana pesewas per share) 110 109 112 106 There is no potential dilution on basic earnings per share. 20. CASH AND BALANCES WITH BANK OF GHANA THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Cash on hand 200,725 159,645 200,725 159,645 Balance with Bank of Ghana 572,217 449,508 572,217 449,508 772,942 609,153 772,942 609,153 Included in balance with Bank of Ghana is cash reserves maintained as part of the cash reserve requirements of the Central Bank Cash on hand and balances with Bank of Ghana are non-interest-bearing and will be recovered no more than 12 months after the reporting period. 99

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 21. GOVERNMENT SECURITIES THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 At 1 January 732,856 984,968 630,645 901,066 Additions 2,199,725 1,509,933 1,863,622 1,259,873 Redeemed on maturity (2,208,140) (1,765,096) (1,903,872) (1,532,842) Gains from changes in fair value (Note 35) 2,285 3,051 1,712 2,548 At 31 December 726,726 732,856 592,107 630,645 Maturing within 90 days of acquisition 632,485 408,796 523,284 335,999 Maturing after 90 days but within 182 days 7,412 79,373 3,728 76,551 Maturing after 182 days of acquisition 30,837 126,717 9,300 121,212 Maturing after 1 year of acquisition 55,992 117,971 55,795 96,883 726,726 732,856 592,107 630,645 Government securities are treasury bills and bonds issued by the Government of Ghana. These are either classified as available-for-sale (carried at fair value) or loans and receivables carried at amortized cost. 22. LOANS AND ADVANCES TO BANKS THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Operating accounts with other Banks 436,199 399,985 436,199 399,985 Items in course of collection from other Banks 130,336 86,513 129,259 79,286 Placements with Bank of Ghana 70,000 360,011 70,000 360,011 Placements with Other Banks 813,472 619,131 813,472 619,131 1,450,007 1,465,640 1,448,930 1,458,413 100

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 23. LOANS AND ADVANCES TO CUSTOMERS THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Overdrafts 1,226,678 792,115 1,226,678 792,115 Staff loans 55,883 53,832 55,883 53,832 Finance leases 21,046 14,189 21,005 14,104 Mortgage loans 44,063 34,025 44,063 34,025 Term loans 1,929,873 1,880,768 1,928,513 1,878,193 Gross loans and advances to customers 3,277,543 2,774,929 3,276,141 2,772,269 Allowances for impairment (Note 14) (159,670) (65,412) (159,392) (65,176) Net loans and advances to customers 3,117,873 2,709,517 3,116,749 2,707,093 Analysis of allowance for impairment Loan impairment 159,670 65,412 159,392 65,176 Analysis of impairment allowance Specific impairment 145,616 27,452 145,616 27,452 Collective impairment 14,054 37,960 13,776 37,724 159,670 65,412 159,392 65,176 Specific allowance for impairment Balance at 1 January 27,452 63,515 27,452 63,514 Charge/(release) for the year 158,076 48,321 158,076 48,322 Amounts written off as uncollectible (21,537) (60,527) (21,537) (60,527) Recoveries (18,375) (23,857) (18,375) (23,857) Balance at 31 December 145,616 27,452 145,616 27,452 Collective allowance for impairment Balance at 1 January 37,960 30,509 37,724 30,273 Charge/(release) for the year (23,906) 7,451 (23,948) 7,451 Balance at 31 December 14,054 37,960 13,776 37,724 Total allowance for impairment 159,670 65,412 159,392 65,176 Analysis by industry on gross loans Construction 70,629 49,182 70,629 49,182 Agriculture, forestry and fishing 11,080 16,145 11,080 16,145 Mining and quarrying 85,594 30,449 85,594 30,449 Manufacturing 316,536 382,233 316,536 382,233 Electricity, gas and water 75,125 110,826 75,125 110,826 Commerce and finance 1,168,596 979,989 1,168,596 979,989 Transport, storage and communication 215,803 195,116 215,803 195,116 Services 1,334,180 1,010,989 1,332,778 1,008,329 3,277,543 2,774,929 3,276,141 2,772,269 101

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 23. LOANS AND ADVANCES TO CUSTOMERS (CONT D) The fifty largest exposures by customers constituted 68.40% of the gross loans at the year-end (2014:66%). The total amount of allowance for impairment represent 4.87% of the gross loans at the year-end (2014:2.4%). The maximum amount due from staff during the year amounted to GH 55.8 million (2014:53million). The investment in finance lease is analyzed as follows: THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Less than 1 year 1,734 2,102 1,734 2,102 Between 1 year and 5 years 19,312 12,087 19,271 12,002 Gross investment in finance leases 21,046 14,189 21,005 14,104 Unearned finance income on finance leases (58) (1,584) (59) (1,574) Net investment in finance leases 20,988 12,605 20,946 12,530 Analysis by industry on gross loans The net investment in finance lease is analysed as follows: Less than 1 year 3,010 1,803 3,001 1,790 Between 1 year and 5 years 17,978 10,802 17,945 10,740 20,988 12,605 20,946 12,530 24. INVESTMENT SECURITIES THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 At 1 January 1,522 1,522 1,522 1,522 Additions 626-626 Impairment on investment securities - - - - At 31 December 2,148 1,522 2,148 1,522 Non-current 2,148 1,522 2,148 1,522 102

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 25. INVESTMENT IN SUBSIDIARIES (CONT D) ORDINARY BANK BANK SHARES% 2015 2014 GH 000 GH 000 Ecobank Investment Managers Limited 100 11,350 11,350 Ecobank Leasing Company Limited 100 1,000 1,000 Ecobank Venture Capital Fund 1 Company Limited 100 4,422 4,422 Ecobank Capital Advisors Limited 100 1 1 16,773 16,773 All these subsidiaries are incorporated and domiciled in Ghana. a. Significant restrictions The Group does not have significant restrictions on its ability to access or use its assets and settle its liabilities. 26. INTANGIBLE ASSETS Cost THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 At 1 January 23,788 21,318 23,788 21,318 Additions 7,677 2,470 7,677 2,470 At 31 December 31,465 23,788 31,465 23,788 Accumulated amortisation At 1 January 18,089 14,007 18,089 14,007 Charge for the year 4,524 4,082 4,524 4,082 At 31 December 22,613 18,089 22,613 18,089 Net book value 8,852 5,699 8,852 5,699 Intangible assets represent acquired licenses for computer software. Amortisation expense on intangible assets is included in operating expense on the statement of comprehensive income. 103

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 27. PROPERTY AND EQUIPMENT (a) Movement for the year THE GROUP Gross value CAPITAL LAND & FURNITURE & MOTOR WORK IN BUILDINGS EQUIPMENT COMPUTERS VEHICLES PROGRESS TOTAL GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 At 1 January 2015 93,173 47,187 35,676 13,637 15,229 204,902 Additions 123 10,994 3,995 3,951 114,963 134,026 Disposals - - - (985) (985) Transfers - 928 1,030 - (1,958) - At 31 December 2015 93,296 59,109 40,701 16,603 128,234 337,943 Depreciation At 1 January 2015-34,156 27,691 9,124-70,971 Charge for the year 1,845 5,843 4,682 2,754-15,124 Disposals - - - (985) - (985) At 31 December 2015 1,845 39,999 32,373 10,893-85,110 Net book value At 31 December 2015 91,451 19,109 8,328 5,710 128,234 252,833 Gross value At 1 January 2014 44,375 40,848 30,925 12,773 4,075 132,996 Additions 5,794 5,846 4,595 2,138 12,800 31,173 Disposals - (4) - (1,274) (1,278) Transfers 993 497 156 - (1,646) - Release on Revaluation (2,126) - - - - (2,126) Revaluation surplus 44,137 - - - - 44,137 At 31 December 2014 93,173 47,187 35,676 13,637 15,229 204,902 Depreciation At 1 January 2014 1,487 28,780 23,122 7,693-61,082 Charge for the year 639 5,379 4,569 2,451-13,038 Disposals - (3) - (1,020) - (1,023) Release on Revaluation (2,126) - - - - (2,126) At 31 December 2014-34,156 27,691 9,124-70,971 Net book value At 31 December 2014 93,173 13,031 7,985 4,513 15,229 133,931 104

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 27. PROPERTY AND EQUIPMENT (CONT D) THE BANK Gross value LAND & BUILDINGS GH 000 FURNITURE & EQUIPMENT GH 000 COMPUTERS GH 000 MOTOR VEHICLES GH 000 CAPITAL WORK IN PROGRESS GH 000 At 1 January 2015 93,173 46,996 34,201 13,638 15,129 203,137 Additions 123 10,994 3,995 3,951 114,963 134,026 Transfers - 928 1,030 - (1,958) - Disposals - - - (985) - (985) TOTAL GH 000 At 31 December 2015 93,296 58,918 39,226 16,604 128,134 336,178 Depreciation At 1 January 2015-33,297 26,801 9,124-69,222 Charge for the year 1,845 5,828 4,682 2,754-15,109 Disposals - - - (985) - (985) At 31 December 2015 1,845 39,125 31,483 10,893-83,346 Net book value At 31 December 2015 91,451 19,793 7,743 5,711 128,134 252,832 Gross value At 1 January 2014 44,375 40,656 29,450 12,774 3,975 131,230 Additions 5,794 5,846 4,595 2,138 12,800 31,173 Transfers 993 497 156 - (1,646) - Disposals - (3) - (1,274) - (1,277) Release on Revaluation (2,126) - - - - (2,126) Revaluation Surplus 44,137 - - - - 44,137 At 31 December 2014 93,173 46,996 34,201 13,638 15,129 203,137 Depreciation At 1 January 2014 1,487 27,955 22,232 7,693-59,367 Charge for the year 639 5,345 4,569 2,451-13,004 Disposals - (3) - (1,020) - (1,023) Release on Revaluation (2,126) - - - - (2,126) At 31 December 2014-33,297 26,801 9,124-69,222 Net book value At 31 December 2014 93,173 13,699 7,400 4,514 15,129 133,915 105

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 27. PROPERTY AND EQUIPMENT (CONT D) Contractual commitments for the acquisition of property and equipment not provided for in the financial statements as at 31 December 2015 was GH 62,964,994.75 (2014: GH Nil). The commitments are approved cost in respect of new head office projects. (b) Revaluation of property (i) The Bank s land and buildings were revalued by Valuation and Investments Associates (Professional Valuers, Estate Agents and Property Consultants) in December 2014 on the basis of their open market values. These figures were incorporated in the financial statements for the year ended 31 December 2014. (ii) As at 31 December 2015, there were no restrictions on title for the assets and no assets had been pledged as security. (iii) There was no indication of impairment of property and equipment held by the Group at 31 December 2015 (2014: nil). (c) Depreciation of property and equipment Depreciation has been charged in the financial statements as follows: THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Operating expenses 15,124 13,038 15,109 13,004 (d) Cost component of revalued property If the land and buildings were stated on a historical cost basis, the amounts would have been as follows: THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Cost 51,285 51,162 51,285 51,162 Accumulated depreciation (3,408) (2,126) (3,408) (2,126) 47,877 49,036 47,877 49,036 (e) Disposal of property and equipment Gross value 985 1,278 985 1,277 Accumulated depreciation (985) (1,023) (985) (1,023) Net book value - 255-254 Sales proceeds 184 349 184 348 Gain on disposal of property and equipment 184 94 184 94 (f) Analysis of PPE Gross (Companies Act requirement) Cost 51,285 51,162 51,285 51,162 Revaluation surplus 42,011 42,011 42,011 42,011 93,296 93,173 93,296 93,173 106

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 28. OTHER ASSETS THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Fees receivable 38,793 21,043 58,794 21,043 Prepayments 27,932 18,942 26,904 17,812 Due from affiliates 163,539 20,921 163,539 20,921 Sundry receivables 104,982 38,176 104,850 38,535 335,247 99,082 354,088 98,311 Current 335,247 99,082 354,088 98,311 29. DEPOSITS FROM BANKS Other deposits from Banks 205,123 176,394 286,934 302,211 Current 205,123 176,394 286,934 302,211 30. CUSTOMER DEPOSITS Current accounts 3,629,846 2,904,544 3,644,771 2,913,125 Cash collateral 191,218 356,814 191,218 356,814 Savings account 595,016 492,426 595,016 492,426 Time deposit 236,576 265,759 233,508 265,759 Private placements 185,294 214,891 - - 4,837,950 4,234,434 4,664,513 4,028,124 Current 4,601,374 4,028,432 4,431,005 3,830,549 Non-current 236,576 206,002 233,508 197,575 4,837,950 4,234,434 4,664,513 4,028,124 The twenty largest depositors constituted 16.95% of the total deposits at the year-end (2014: 18.82%). Included in customer deposits for the Group are managed funds of GH 188,362,000 (2014: GH 214,891,000) held on behalf of customers of Ecobank Investment Managers Limited. 107

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 31. OTHER LIABILITIES THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Collections on behalf of customers 303,730 148,017 303,730 148,017 Bankers drafts and managers cheques 20,471 18,513 20,471 18,513 Point of sale terminals 2,484 3,779 2,484 3,779 Accruals 44,454 53,974 43,932 53,465 Payables & Sundry liabilities 65,869 105,859 62,419 103,544 437,008 330,142 433,036 327,318 Current 395,796 314,429 407,362 303,422 Non-current 41,212 15,713 25,674 23,896 437,008 330,142 433,036 327,318 32. BORROWINGS EXCHANGE AT 1/1/15 DRAWDOWN INTEREST REPAYMENT DIFFERENCES AT 31/12/15 GH 000 GH 000 GH 000 GH 000 GH 000 GH 000 Social Security & National Insurance Trust 4,739 - - (4,739) - - International Finance Corporation 64,549-899 (547) 11,898 76,799 Export Development Investment Fund 15,984 555 761 (7,786) - 9,514 European Investment Bank - 65,222 307 - (265) 65,264 Ecobank Transnational Inc./IFC 59,793 60,553 1,385 (70,789) 11,076 62,018 Ecobank Transnational Inc./EIB 35,111-747 (9,315) 5,264 31,807 African Development Bank 46,951 24,660 674 (2,150) 6,439 76,574 227,127 150,990 4,773 (95,326) 34,412 321,976 THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Current 1,729 69,208 1,729 69,208 Non-current 320,247 157,919 320,247 157,919 321,976 227,127 321,976 227,127 108

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 32. BORROWINGS (CONT D) The Social Security and National Insurance Trust made available to the Bank a loan of GH 4.36 million for on-lending to a customer of the bank, over a 10 years period from 9 June 2005 and this facility matured on 9 June 2015. Interest on the loan was based on the Bank of Ghana prime rate applicable on the date of the drawdown, provided that the rate will be adjusted from time to time in accordance with any changes in the Bank of Ghana prime rate. Interest on the loan may be capitalised semi-annually counting from date of the drawdown in the event that the Bank fails to honour interest repayments. The loan is unsecured. A loan of US$20 million was made available to the Bank by International Finance Corporation (IFC) under an agreement dated 20 July 2007. This loan is to be used as tier II capital, and attracts interest at LIBOR plus a margin of 3.01% per annum. This loan expired in June 2015 and has been renewed for another 8 years. The loan is unsecured. The borrowing from Export Development Fund (EDIF) was made available for the purposes of on-lending to small scale enterprises, export insurance re-financing and credit guarantee. This is a revolving fund, which attracts interest at a rate of 2.5% per annum. The loan is unsecured. Borrowing totaling US$29 million from International Finance Corporation and European Investment Bank were secured through Ecobank Transnational Incorporated. These borrowings are unsecured subordinated debts, which attract interest at 9.04% and 5.5% respectively, and are repayable between 13 July 2018 and 1 May 2019. African Development Fund provided the bank with an unsecured loan of $20 million. This will be used exclusively to finance eligible trade transactions and thereby support funding for trade of consumer goods, food commodities, petroleum products, telecom equipment, intermediate goods, smaller machinery and commodities. The loan attracts interest at LIBOR plus a margin of 3.44% per annum. This loan is repayable by 18 April 2018. The loan is unsecured. 33. STATED CAPITAL THE BANK Authorised: Ordinary shares of no par value 500,000,000 500,000,000 NO. OF SHARES PROCEEDS 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Issued and fully paid Ordinary shares of no par value 293,228,372 293,228,372 Issued ordinary shares comprise: Issued for cash 88,692 88,692 Issued for consideration other than cash 137,949 137,949 At 31 December 226,641 226,641 There is no unpaid liability and no call or instalment unpaid on any share. There is no share in treasury. 109

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 34. INCOME SURPLUS THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 At 1 January 264,393 132,976 249,030 127,926 Profit for the year 321,266 319,965 327,523 309,613 Dividend paid relating to prior year (231,650) (126,088) (231,650) (126,088) Transfer to statutory banking reserve (Note 36) (40,969) (77,442) (40,940) (77,403) Transfer to regulatory credit risk reserve (Note 37) (40,188) 14,982 (40,188) 14,982 At 31 December 272,852 264,393 263,775 249,030 35. REVALUATION RESERVE (a) Capital surplus land and building revaluation THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 At 1 January 59,057 21,541 59,056 21,540 Revaluation gain - 44,137-44,137 Deferred tax (Note 17) - (6,621) - (6,621) At 31 December 59,057 59,057 59,056 59,056 (b) Available for sale instruments At 1 January (3,381) (9,482) (2,109) (7,833) Other adjustment - - - - Net (loss)/gain from changes in fair value government securities (Note 21) 2,285 3,051 1,712 2,548 Realised loss on securities disposed - 3,813-3,813 Deferred income taxes (Note 17) (571) (763) (428) (637) At 31 December (1,667) (3,381) (825) (2,109) Total revaluation reserves 57,390 55,676 58,231 56,947 110

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 36. STATUTORY RESERVE FUND Statutory reserve represents cumulative amounts set aside from annual profits after tax required under the Banking Act for Banks and the Non-Bank Financial Institutions Business Rules for leasing companies. The proportion of net profits transferred to reserves ranges from 12.5% to 50% of net profit after tax, depending on the ratio of the balance on statutory reserves to paid up capital. THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 At 1 January 241,443 164,001 240,983 163,580 Transfer from income surplus 40,969 77,442 40,940 77,403 At 31 December 282,412 241,443 281,923 240,983 37. REGULATORY CREDIT RISK RESERVE Regulatory credit risk reserve represents cumulative amounts required to meet the Bank of Ghana guidelines for allowances on impairment. THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 At 1 January 10,270 25,252 10,270 25,252 Transfer to (from) income surplus 40,188 (14,982) 40,188 (14,982) At 31 December 50,458 10,270 50,458 10,270 38. CASH AND CASH EQUIVALENTS Cash balances (Note 20) 200,725 159,645 200,725 159,645 Government securities (Note 21) 632,485 408,796 524,993 335,999 Placement with other Banks 883,472 979,142 883,472 979,142 Deposits from Banks (Note 29) (205,123) (176,394) (286,934) (302,211) As shown in the statement of cash flows 1,511,559 1,371,189 1,322,256 1,172,575 Cash and cash equivalents comprise balances with less than three months maturity from the date of acquisition, including cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less. 111

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 39. INVESTMENT IN ASSOCIATE THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 At 1 January 6,539 5,935 4,841 4,841 Share of associate profit 848 604 - - At 31 December 7,387 6,539 4,841 4,841 The bank has one associate Pan African Savings and Loans Company Limited, whose results are incorporated into its financial statements using equity accounting. Pan African Savings and Loans Company Limited The relationship with the Bank Principal place of business/country of incorporation Strategic investment which provides microfinance to small and medium scale enterprises. Accra, Ghana Ownership interest/voting rights of the Bank 49% (2014: 49%) Fair value of ownership interest (if listed) N/A 112

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS Financial Statements Extract of Associates 2015 2014 GH 000 GH 000 Revenue 22,712 18,119 Profit from continuing operations 1,559 1,115 Other comprehensive income - - Total comprehensive income 1,559 1,115 Attributable to investee s shareholders 1,559 1,115 Total asset 52,812 37,877 Total liabilities 42,847 24,533 Net assets 9,965 13,344 Attributable to investee s shareholders 4,883 6,539 Group s interest in net assets at 1 January 6,539 5,935 Total comprehensive income to the Group 848 604 Dividends received during the year - - Group s interest at 31 December 7,387 6,539 40. CONTINGENT LIABILITIES AND COMMITMENTS Off balance sheet items In common with other banks, the bank conducts business involving acceptances, performance bonds and indemnities. The majority of these facilities are offset by corresponding obligations of third parties. In addition, there are other derivative instruments, including forwards and option contracts or combinations thereof (all commonly known as derivatives), the nominal amounts of which are not reflected in the consolidated balance sheet. Nature of instruments An acceptance is an undertaking by a bank to pay a bill of exchange drawn on a customer. The Bank expects most acceptances to be presented, but reimbursement by the customer is normally immediate. Other contingent liabilities include transaction related customs and performance bonds, which are generally short-term commitments to third parties that are not directly dependent on the customer s creditworthiness. 113

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) Commitments to lend are agreements to lend to a customer in the future, subject to certain conditions. Such commitments are either made for a fixed period, or have specific maturity dates but are cancellable by the lender subject to notice requirements. Documentary credits commit the Bank to make payments to third parties, on production of documents, which are usually reimbursed immediately by customers. The following, summarises the nominal principal amount of contingent liabilities and commitments with off-balance sheet risks. Contingent liabilities THE GROUP THE BANK 2015 2014 2015 2014 GH 000 GH 000 GH 000 GH 000 Guarantees and indemnities 265,905 409,135 265,905 409,135 Documentary and commercial letters of credit 334,870 543,825 334,870 543,825 600,775 952,960 600,775 952,960 Legal proceedings There were a number of legal proceedings outstanding against the Group at 31 December 2015. No provision has been made as professional advice indicates that these cases are unlikely to succeed and no significant losses are expected to arise. 41. RELATED PARTY TRANSACTIONS a. Transactions with executive directors and key management personnel Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of Ecobank Ghana Limited (directly or indirectly) and comprise the Executive Directors and Senior Management of Ecobank Ghana Limited. There were no material related party transactions with companies where a Director or other member of key management personnel (or any connected person) is also a Director or other member key management personnel (or any connected person) of Ecobank Ghana Limited. No impairment losses have been recorded in respect of loans to Directors or other members of key management personnel (or any connected person). 114

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS Remuneration of Executive Directors and other key management personnel. Short term employee benefits 2015 2014 GH 000 GH 000 Salaries and other short-term benefits 5,371 3,615 Social security contributions 16 280 5,387 3,895 Details of transactions between Directors and other key management personnel (and their connected persons) and the Group are as follows: Loans 2015 2014 GH 000 GH 000 Loan outstanding at 1 January 3,094 4,627 Net movement 4,175 (1,533) Loans outstanding at 31 December 7,269 3,094 Interest income 586 247 There were no loans given to non-executive Directors. 2015 2014 Deposits GH 000 GH 000 Deposits at 1 January 1,026 1,295 Net movement during the year 1,394 (269) Deposits at 31 December 2,420 1,026 Interest expense 170 89 Loans to Executive Directors and key management personnel include housing, car and other personal loans which are given under terms that are no more favorable than those given to other staff. No impairment has been recognized in respect of loans granted to Executive Directors and key management personnel at 31 December 2015 and 2014. The housing and car loans are secured by the underlying assets. All other loans are unsecured. b. Transactions with executive and non-executive directors No loans were advanced to non-executive Directors during the year. There were no balances outstanding on account of loans due from nonexecutive Directors at the year end. No impairment has been recognized in respect of loans granted to Executive Directors and key management personnel at 31 December 2015 and 2014. 2015 2014 GH 000 GH 000 Loans and advances to executive directors 3,274 2,152 115

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) c. Transactions and balances with subsidiaries The Bank has 100% shareholdings in four (4) Subsidiaries. Fixed deposit investments are placed with the subsidiaries. The subsidiaries current accounts are held with the Bank. Interest accrues on these placements at normal commercial rates. Balances due to/from the subsidiary at the year end were as follows: 2015 2014 GH 000 GH 000 Placement with subsidiary 90,250 70,500 Deposits with subsidiary 187,100 8,696 Interest Income from placements 13,016 4,644 Interest Income on Deposits 16,839 1,123 d. Transactions and balances with parent company The Bank is a subsidiary of Ecobank Transnational Incorporated (ETI), a company incorporated in the Republic of Togo. A number of transactions were entered into with the parent company in the normal course of business. These transactions include loans, placements, deposits, foreign currency and other operational transactions. These transactions were carried out on commercial terms and at commercial market rates and went through the normal channels of approval. Transactions during the year and balances at 31 December are as follows: 2015 2014 GH 000 GH 000 Placements with related parties (foreign) 68,997 50,000 Borrowings 170,627 108,803 Interest income from placements 1,053 4,500 e. Transactions and balances with subsidiaries of the parent company (ETI) A number of transactions were entered into with other subsidiaries of the parent company (Ecobank Transnational Incorporated) in the normal course of business. These transactions include loans, placements, deposits, foreign currency and other operational transactions. These transactions were carried out on commercial terms and at commercial market rates and went through the normal channels of approval. 2015 2014 GH 000 GH 000 Placements 216,726 198,039 Other assets 50 35,101 Interest income from placements 2,254 28,257 116

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 42. REGULATORY DISCLOSURES (i) Non-performing loans ratio The percentage of gross non-performing loans ( substandard to loss ) to total credit/advances portfolio (gross) was 16.56% (2014: 3.2%) per Bank of Ghana s prudential guidelines. As per IFRS, the Bank recorded NPL 18.01% (2014: 1.78%) (ii) Capital adequacy ratio The capital adequacy ratio at the end of December 2015 was calculated as stated below: The Group 17.78% (2014: 17.22%) The Bank 17.13% (2014: 16.45%) (iii) Compliance with statutory liquidity requirement (a) Default in Statutory Liquidity-None (b) Default in Statutory Liquidity- Sanction (GH Nil) 43. BUSINESS SEGMENTS The Group has three main business segments: (a) Domestic banking - This incorporates consumer, small and medium enterprises, local corporate and public sectors of the market. (b) Corporate banking - Specialises in serving the public sector, multinational institutions, financial institutions/international organisations, local corporates with annual income exceeding $20M and the Regional Corporate segment of the market. (c) Treasury - Treasury engages in Foreign exchange trading and manages the bank s balance sheet, ensuring that all interest rate and exchange rate risks are adequately monitored. The unit also has responsibility for liquidity management; ensuring that the bank is able to honour its commitments as and when they fall due. Effective 1st January 2016, the Business Segments would be reorganized into Consumer, Commercial and Corporate Bank. 117

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 43. BUSINESS SEGMENTS (CONT D) Transactions between business segments are on normal commercial terms and conditions. Funds are ordinarily allocated between segments, resulting in funding cost transfers disclosed in operating income. Interest charged for these funds is based on the Group s cost of capital. The Group s operations are based in Ghana. There are no separately distinguishable geographical segments. The segmental information provided to the Board for reportable segments for the year ended 31 December is as follows: THE GROUP CORPORATE DOMESTIC BANKING BANKING TREASURY UNALLOCATED GROUP GH 000 GH 000 GH 000 GH 000 GH 000 At 31 December 2015 Net interest income 286,752 308,463 87,026-682,241 Net fees and commission income 85,398 103,013 (3,049) - 185,362 Lease income 1,525 2,157 - - 3,682 Net trading income 383-138,474-138,857 Dividend income - - 3,487-3,487 Other income 3,624 5,876 - - 9,500 Revenue 377,682 419,509 225,938-1,023,129 Other income - - 184-184 Loan impairment charge (100,300) (15,495) - - (115,795) Net Operating income 277,382 404,014 226,122-907,518 Staff expenses 72,266 127,760 46,098-246,124 Depreciation and amortization 5,754 9,296 4,598-19,648 Other operating expense 37,631 118,913 27,490-184,034 Operating profit 161,731 148,046 147,935-457,712 Share of profit of associate (net of tax) - - 848-848 Profit before income tax 161,731 148,046 148,783-458,560 Tax expense - - - (137,294) (137,294) Profit for the year 161,731 148,046 148,783 (137,294) 321,266 Segment assets 2,427,870 690,003 3,573,937-6,691,810 Segment liabilities 1,925,145 2,912,805 964,107-5,802,057 118

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 43. BUSINESS SEGMENTS (CONT D) THE GROUP CORPORATE DOMESTIC BANKING BANKING TREASURY UNALLOCATED GROUP GH 000 GH 000 GH 000 GH 000 GH 000 At 31 December 2014 Net interest income 211,071 273,484 71,165-555,720 Net fees and commission income 57,175 95,083 (1,878) - 150,380 Other income 1,378 11,150 139,109-151,637 Revenue 269,624 379,717 208,396-857,737 Other income - - 94-94 Loan impairment charge (20,089) (11,936) - - (32,025) Net operating income 249,535 367,781 208,490-825,806 Staff expenses 40,528 116,767 29,858-187,153 Depreciation and amortization 4,233 8,859 4,028-17,120 Other operating expense 33,167 112,228 29,801-175,196 Operating profit 171,607 129,927 144,803-446,337 Share of profit of associate (net of tax) - - 604-604 Profit before income tax 171,607 129,927 145,407-446,941 Tax expense - - - (126,976) (126,976) Profit for the year 171,607 129,927 145,407 (126,976) 319,965 Segment assets 1,712,370 997,147 3,058,091-5,767,608 Segment liabilities 1,786,603 2,447,831 734,751-4,969,185 119

FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (CONT D) 43. BUSINESS SEGMENTS (CONT D) THE BANK CORPORATE DOMESTIC BANKING BANKING TREASURY UNALLOCATED GROUP GH 000 GH 000 GH 000 GH 000 GH 000 At 31 December 2015 Net interest income 279,687 300,863 84,882-665,432 Net fees and commission income 85,402 103,017 (3,049) - 185,370 Lease income 1,522 2,152 - - 3,674 Net trading income 382-137,969-138,351 Dividend income - - 23,438-23,438 Other income 3,624 5,876-9,500 Revenue 370,617 411,908 243,240-1,025,765 Other income - - 184-184 Loan impairment charge 100,300) (15,453) - - (115,753) Net Operating income 270,317 396,455 243,424-910,196 Staff expenses 72,169 127,590 46,037-245,796 Depreciation and amortization 5,750 9,289 4,595-19,634 Other operating expense 37,561 118,689 27,437-183,687 Operating profit 154,837 140,887 165,355-461,079 Share of profit of associate - - - - - (net of tax) Profit before income tax 154,837 140,887 165,355 461,079 Tax expense - - - (133,556) (133,556) Profit for the year 154,837 140,887 165,355 (133,556) 327,523 Segment assets 2,426,746 690,003 3,470,738-6,587,487 Segment liabilities 1,751,708 2,912,805 1,041,946-5,706,459 120

NOTES TO FINANCIAL STATEMENTS (CONT D) FINANCIAL STATEMENTS 43. BUSINESS SEGMENTS (CONT D) THE BANK CORPORATE DOMESTIC BANKING BANKING TREASURY UNALLOCATED GROUP GH 000 GH 000 GH 000 GH 000 GH 000 At 31 December 2014 Net interest income 211,071 273,484 58,377-542,932 Net fees and commission income 57,175 95,083 (1,863) - 150,395 Other income 1,378 11,150 138,464-150,992 Revenue 269,624 379,717 194,978-844,319 Other income - - 94-94 Loan impairment charge (20,089) (11,827) - - (31,916) Net Operating income 249,535 367,890 195,072-812,497 Staff expenses 40,528 116,767 29,858-187,153 Depreciation and amortization 4,233 8,859 4,028-17,120 Other operating expense 33,167 112,228 29,292-174,687 Profit before income tax 171,607 130,036 131,894-433,537 Tax expense - - - (123,924) (123,924) Profit for the year 171,607 130,036 131,894 (123,924) 309,613 Total assets 1,712,370 994,723 2,962,537-5,669,630 Total liabilities 1,786,603 2,241,521 857,635-4,885,759 44. DIVIDEND PER SHARE At the forthcoming meeting, dividend of 84 Ghana pesewas (2014:79 Ghana pesewas) per share are to be proposed amounting to a total of GH 246,311,832.48 million (2014: GH 231,650,413.88). 121

FINANCIAL STATEMENTS Number of Shareholders The Bank had 13,746 ordinary shareholders at 31 December 2015 distributed as follows: Category 2015 2014 NO. OF % OF SHARES NO. OF % OF SHARE HOLDERS HELD HOLDERS HELD 1-1,000 12,290 1.16 12,310 1.18 1,001-5,000 1,104 0.71 1,109 0.71 5,001-10,000 176 0.41 170 0.40 10,000 and over 176 97.72 170 97.71 Total 13,746 100.00 13,759 100.00 Directors Shareholding The Directors named below held the following number of shares in the Bank at 31 December 2015: No. of shares % Holding Terence Ronald Darko 50,000 0.017 Samuel Ashitey Adjei 41,260 0.014 Martin Eson-Benjamin 2,590 0.001 Mariam Gabala Dao 38,977 0.013 Evelyne Tall 15,000 0.005 Rosemary Yeboah 758 0.000 George Mensah Asante 3,411 0.001 Ernest Thompson 985 0.000 Morgan Fianko Asiedu 2,025 0.001 Total 155,006 0.053 122

FINANCIAL STATEMENTS 20 Largest Shareholders No. of shares % Holding Ecobank Transnational Incorporated 202,129,934 68.93 Social Security and National Insurance Trust 47,467,354 16.19 SCGN/SSB & T AS Custodian Re SQM Frontier Africa Masters 8,395,745 2.86 Compagnie Africaine de Financement et de Participation-Holing 6,897,425 2.35 African Tiger Mutual Fund 4,407,075 1.50 Ghana Reinsurance Company Limited General Business 3,901,190 1.33 Teachers Fund 1,818,738 0.62 Verdipapirfondet Holberg Rurik Scgn/Citibank London 949,400 0.32 SCGN/Citibank London Verdipapirfondet Holberg Global 832,700 0.28 SCGN/Standchart Mauritius Re Pinebridge Sub-Saharan Africa Equity 478,500 0.16 SCGN/JP Morgan Chase Duet Victoire Africa Index Fund IC 426,428 0.15 SCGN/ELAC Policyholders Fund 410,442 0.14 Cocobod End of Service Benefit Scheme 355,098 0.12 SCGN/DZ/Privatebank S.A Re Silk-African Lions Fund 320,000 0.11 SCGN/Northern Trust Co. AVFC 6314B 292,700 0.10 Opoku-Gyamfi Boateng 248,000 0.08 SCGN/DZ Privatebank S.A Re Silk-Road Frontiers Fund 235,500 0.08 SIC Insurance Company Ltd 232,603 0.08 SCGN/Verdipapirfondet Holdberg - Rurik 227,500 0.08 SCGN/CACEIS Bank Lux Re Interffekt Investment Funds N.V 224,600 0.08 280,250,932 95.57 123

FINANCIAL STATEMENTS FIVE YEAR FINANCIAL SUMMARY (All amounts are expressed in thousands of Ghana Cedis) 2015 2014 2013 2012 2011 Income Statement Revenue 1,023,129 857,737 589,603 422,717 234,548 Profit before tax 458,560 446,941 267,874 186,226 105,534 Profit after tax 321,266 319,965 190,633 132,557 72,381 Dividend 246,312 231,650 126,088 85,036 55,230 Statement of Financial Position Loans and advances to customers 3,117,873 2,709,517 2,126,820 1,396,514 849,893 Customer deposits 4,837,950 4,234,434 3,246,674 2,464,605 1,608,256 Total assets 6,691,810 5,767,608 4,694,261 3,428,070 2,132,183 Shareholder equity 889,753 798,423 560,929 456,212 262,599 Statistics Dividend per share in pesewas 84 79 43 34 24 Earnings per share in pesewas 110 109 65 45 31 ROAE (%) 38 47 37 37 30 ROAA (%) 5.2 6.1 4.7 4.8 4.0 ISA 700 paragraph 32 and footnote 4 of Illustration 1 of ISA 700 124

ECOBANK GHANA LIMITED PROXY FORM I/WE, being a Member(s) of the above-named Company hereby appoint.. or failing him/her the Chairman of the Meeting as my/our Proxy to vote on my/our behalf at the Annual General Meeting (AGM) of the Company to be held on Friday, May 6, 2016 at 10:30 am prompt. DATED THE.DAY OF., 2016.... MEMBER This Form is to be used in favour of/against the Resolution set out in the Agenda. This Form is to be used in favour of/against the Resolution set out in the Agenda. FOR AGAINST 1. TO ADOPT ACCOUNTS 2. TO DECLARE a Dividend 3. TO RATIFY the appointment of the following Directors for a 3 year term: MR. MARTIN ESON-BENJAMIN. MRS. FELICITY ACQUAH. 4. TO RE-ELECT the following Directors who have retired for another 3 year term: MRS. EVELYNE TALL MRS. ROSEMARY YEBOAH MR. MORGAN ASIEDU 5. TO FIX REMUNERATION of the Auditors. Please indicate with an X in the spaces above how you wish your vote to be cast. Unless otherwise instructed, the Proxy will vote as he thinks fit. If executed by a body Corporate, this Proxy Form should be completed by the signature of a duly authorized Officer and should be accompanied by a Resolution in accordance with Section 165 of the Companies Act, 1963 (Act 179). To be valid, this Proxy Form must be filled up, signed and lodged (together with any authority under which it is signed) with the Registrars at GCB Bank, Registrars Office, Thorpe Road, High Street, Accra not later than 3.00pm on Thursday, the 5th day of May, 2016. 125

DRAFT RESOLUTIONS OF 2015 ANNUAL GENERAL MEETING OF ECOBANK GHANA LIMITED ORDINARY RESOLUTIONS 1. The General Meeting hereby adopts the Statement of Accounts of the company for the year ended the 31st day of December, 2015 together with the reports of the Directors and auditors thereon. 2. The General Meeting hereby approves the payment of dividend of GHS 0.84 per share and totalling GHS 246,311,832.48 on the 27th day of May, 2016 to members listed on the share register as of 22nd April, 2016. 3. The General Meeting hereby ratifies the appointment of Mr. Martin Eson- Benjamin as a Director for a 3 year term. The General Meeting hereby ratifies the appointment of Mrs. Felicity Acquah as a Director for a 3 year term. 4. The General Meeting hereby re-elects Mrs. Evelyne Tall who has retired as a Director in accordance with the Regulations of the Company and has offered herself for re-election for a 3 year term. The General Meeting hereby re-elects Mrs. Rosemary Yeboah who has retired as a Director in accordance with the Regulations of the Company and has offered herself for re-election for a 3 year term. The General Meeting hereby re-elects Mr. Morgan Asiedu who has retired as a Director in accordance with the Regulations of the Company and has offered himself for re-election for a 3 year term. 5. The General Meeting hereby authorises the Directors to fix the remuneration of the Auditors. 126

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Ecobank Ghana Ltd 19 Seventh Avenue Ridge West-Accra Ghana ecobank.com