ABRIDGED FINANCIAL STATEMENTS

EXCEL MICROFINANCE BANK LIMITED BALANCE SHEET AS AT 31ST DECEMBER,2010

----------------------------------------- 2010 ----------- 2009

ASSETS --------------------------------N ---------------N

Cash & Short Term Funds ------  47,372,181 ------47,879.466

Investment ------------------------- 6,607.366 ------- 4,232.064

Loans and Advances ------------ 214,260.246 ---- 138,094.565

Other Assets ------------------------1,732.122 --------1,345.894

Fixed Assets -----------------------10,438.840 ------- 6,914.254

TOTAL ASSETS ----------------280,410.755 ------ 198,466.243

LIABILITIES

Deposits and other Accounts ----209,350.158 -------136,351.440

Dividend Payable -------------------5,978.872 --------- 4,553.133

Taxation Payable --------------------4,428.692 --------- 1,720.911

Other Liabilities --------------------12,356.202 --------18,307.242

Total ------------------------------232,113.924 ------- 160,932.726

CAPITAL AND RESERVES

Paid up Share Capital ------------ 23,826.522 ---------18,338.602

Shares Premium ---------------------- 171.325 ------------ 126.850

Statutory Reserve ---------------- 17,533.299 ----------12,079.645

General Reserve ------------------ 6,765.685 ----------- 6,988.420

Shareholders' Funds ------------- 48,296.831 --------- 37,533.517

Total Equity and Liabilities ----280,410.755 --------198,466.243

The Financial Statement were approved by the Board of Directors on 10th March,2011

---------------------------- Chairman

ALHAJI FUNSO SAADU LADAPO

---------------------------- Managing Direcctor/ceo

MR.FEMI JEGEDE

PROFIT AND LOSS ACCOUNTS FOR THE YESR ENDED 31ST DECEMBER,2010

----------------------------------------2010 --------2009

NOTES --------------------------------N ----------- N

GROSS EARNINGS -----------85,990.016 ---- 63,626.617

Profit before Tax ---------------15,336.000 ---- 12,315.025

Provision fir Taxation ---------(4,428.692) ----(1.720.911)

Net Profit after Tax ------------10,907.308 -----10,594.114

Appropriation

Statutory Reserve ------------------(5,453.654) -----(5,297.057)

Proposed Dividend/Bonus Issues (4,765.304) ------(3,667.730)

Transferred to General Reserve        688.350 ------- 1,629.337

E.P.S ----------------------------------N 0.46 --------N 0.58

D.P.S ---------------------------------N 0.20 ---------N 0.20

ADESOLA ADELABU & CO (CHARTERED ACCOUNTANTS) 5TH FLOOR,PROVIDENCE COURT, COCO-COLA AREA,IBADAN

AUDITORS REPORT TO THE MEMBERS OF EXCEL MICROFINANCE BANK LTD

We have examined the Financial Statemwnts of Excel Microfinance Bank Ltd for year ended 31st December.2010 which have been prepared under the historical cost convention and on basis of the accounting policies chosen by the Bank.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

In accordance with section 334 of the companies and Allied Matters Act 1990,the Bank's Directors are responsible for the preparation of the financial statements, it is our responsibility to form an independent opinion on the Financial Statements Based on our audit. and to express our opinion thereon to you.

BASIS OF OPINION

We conducted our audit in accordance with the generally accepted auditing standards. An audit includes examining,on a text basis of evidence relevant to the amounts and disclosures in the financial statements.it also includes an assessment of the significant estimates and judgments made by the Directors in the preparation of the Financial statements and of whether the accounting policies are appropriate to the company's circumstances consistently applied and adequately disclosed.

We planned and performed our audit so as obtain all the information and explanations which we considered necessary to provide us with sufficient evidence to give a reasonable assurance that the Financial Statements are free from material mis-statements whether caused by fraud,error or other irregularities in forming our opinion. We also evaluated the overall adequacy of the presentation of information in the Financial Statements. The Financial Statements are in agreement with the books of accounts which have been properly kept.

OPINION

In our opinion. the Bank has kept proper books of accounts. The assets had been properly valued and adequate provisions made for losses and diminution in value of such assets.No contravention of Bank Law and CBN circulars came to our knowledge. The Financial Statements of Accounting standard issued by the Nigeria Accounting Board. Give a true and fair view of the state of affairs of the Bank as at 31st December,2009 and of the profit and flow for the year ended on that date and have been properly prepared in accordance with the provisions of the companies and Allied Matters Acts 1990.Banks and Other Financial Institutions Acts 1991(As amended). Guidelines for Microfinance Banks in Nigeria and relevant circulars issued by the Central Bank of Nigeria.

IBADAN,NIGERIA

MARCH,2011

------------------------------

ADESOLA ADELABU & CO

(CHARTERED ACCOUNTANTS)