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Foreign currency sensitivity analysis
The Group’s principal foreign currency exposure is to US Dollars, as it constitutes a significant portion of the Group’s foreign
currency exposure as at 31 December 2017. The table below illustrates the hypothetical sensitivity of the Group and Bank’s
reported profit to a 10% increase in the US Dollar/Naira exchange rates at the year end, assuming all other variables remain
unchanged. The sensitivity rate of 10% increase represents the directors’ assessment of a reasonable possible change
based on historic volatility.

Group

Impact on statement
of comprehensive
income
In thousands of naira 31 December 2017
Naira weakens by 10% (15,736,259)

Impact on statement
of comprehensive
income
In thousands of naira 31 December 2016
Naira weakens by 15%* (12,178,312)
Naira weakens by 30%* (24,356,625)

Bank Impact on statement
of comprehensive
income
In thousands of naira 31 December 2017
Naira weakens by 10% (13,400,561)

Impact on statement
of comprehensive
income 31 December 2016
Naira weakens by 15%* (13,038,569)
Naira weakens by 30%* (26,077,138)

The NGN/USD exchange rate applied in the conversion of balances as at year end is N331/USD1 (2016: N305/USD1). The
strengthening or weakening of Naira may not produce symmetrical results depending on the proportion and nature of
balance sheet and the impact of derivatives.

*Due to changes in the volatility in exchange rate, the director have not restated prior year sensivity disclosure.

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Annual Report & Accounts 2017