CASE STUDIES FROM AFRICA

First Bank Nigeria PlC
First Bank’s growth of foreign equity was over 150% in 2009 alone, but this fell drastically in
2011 and assumed another upward trend in 2012 (Figure 7). This growth performance is also
not quite as stable as might be expected of a big bank with widely spread foreign affiliates.
Figure 7: Percentage Growth of First Bank’s Foreign Equity
200
180
160
140
120
100
80
60
40
20
-
2004 2005 2006 2007 2008 2009 2010 2011 2012
Figure 8 indicates that First Bank’s earnings from foreign exchange transactions have been
quite volatile and have been falling since 2010. It appears to be the most volatile
performance when compared to UBA and Ecobank.
Figure 8: Percentage Growth of First Bank’s Foreign Exchange Income
250
200
150
100
50
-
-50
2004 2005 2006 2007 2008 2009 2010 2011 2012
-100
The volatility observed above with respect to foreign exchange income is reflected in the
balances held in other banks as well as deposits held in banks outside Nigeria (Figure 9).
Though these variables are quite volatile, with spikes in 2007, the overall upward trend
118