Dear Colleagues,

Permit me to join voice with you in proclaiming the kindness and mercy of almighty God for a successful and rewarding 2011 in our individual lives and in the lot of Royal Exchange. Yes, the year was tough and challenging but we, collectively, did overcome.

You will recall that this management started out effectively on April 14th 2011 with the disengagement of our erstwhile Group Managing Director, Mr. Allan Walmsley, who successfully navigated the company through the tortuous path of restructuring. Hence, in the beginning, we set out with 2 major objectives:

1. To consolidate the restructuring by ensuring that each subsidiary is working in tandem and in alignment with overall Group vision.
2. To substantially improve the position of Royal Exchange in terms on productivity and profitability.

At the end of the year, reports indicate a giant leap in productivity by as much as 50% and we have been able to conclude the restructuring with the merger of operations of Royal Exchange Finance & Investment Ltd with the Investment Department of the group to create an Asset Management arm; and the appointment of a substantive Head of Asset Management.

All of these would not have been possible without the commitment of Staff, who have painstakingly applied themselves to the rigours of our corporate objectives. I sincerely appreciate each and every staff for their contribution and sacrifices.

In 2012, we need to consolidate on the gains recorded last year and further strengthen our position as the financial services group of preference in Nigeria. Royal Exchange has always been known for its integrity, reliability, trust and partnership with clients. Let us continue to play our individual roles to reinforce these core values that have continued to drive our business.

Thus, in the year ahead, we shall all strive to pay attention to the following:

1. Increased revenue generation
2. Pursuit of new businesses in existing and emerging markets
3. Cost Control, while not sacrificing the necessary standards
4. Enhancement of service delivery
5. Cross referencing within the Group and optimization of our value chain
6. Human capital development and bonding of the Royal Exchange family.
7. Enforcement of risk management framework and ensuring compliance with statutory regulations and industry best practices.

For the purpose of clarity, let me reiterate that our long term goal is to be the leading financial services provider in Nigeria. We cannot achieve this aspiration unless we rededicate ourselves and channel our energy and talents towards ensuring increased individual and collective contribution to enhanced productivity and achievement of other stated goals whilst not sacrificing our core values.

We should see ourselves as part owners of the company which implies that our own fortunes are inexorably tied to those of Royal Exchange. Therefore, each day we come to work, we should work as if our lives depend on the job, wholeheartedly and with full commitment. Management wishes to assure you that your efforts will be well rewarded and your welfare would be taken seriously.

Once again, I salute your zeal and dedication to duty. Let us continue to share the same vision to push beyond limits, so as to take Royal Exchange to the realm of corporate greatness.

Happy 2012!!!

Chike Mokwunye
Group Managing Director
Royal Exchange Plc