Q3 2019 INVESTOR PRESENTATION WHAT DRIVES US HOW WE WHO WE ARE - - PowerPoint PPT Presentation

Q3 2019 INVESTOR PRESENTATION

WHAT DRIVES US HOW WE ACHIEVE IT

Our Purpose Simplifying your world to enable your progress Our Promise Go Ahead Our Values Inspiring Simple Friendly Simplified customer journey Optimize balance sheet and drive asset quality Maximize on regional businesses Operational efficiency Sustainability agenda Digital first and fast Customer perspective

Market share Shared value Brand position

Learning and growth

Staff productivity Staff development Culture change

Financial

Profit before tax Efficiency Shareholder value

Internal Business processes

System reliability Sustainability Control environment 2015-2019 STRATEGY:

TRANSFORMATIVE PARTNERSHIPS

WHO WE ARE

2

OUR STRATEGY

KCB BANK RWANDA KCB BANK BURUNDI KCB BANK TANZANIA KCB BANK KENYA

KCB INSURANCE AGENCY KCB FOUNDATION KCB CAPITAL

258 BRANCHES

973 ATMS, 20,561 AGENTS & MERCHANTS

STAFF

6,195 FTE

KCB BANK KENYA (ETHIOPIA REPRESENTATIVE OFFICE ) KCB BANK SOUTH SUDAN

Banking Businesses:

• KCB Bank Kenya
• KCB Bank Tanzania
• KCB Bank South Sudan
• KCB Bank Rwanda
• KCB Bank Uganda
• KCB Bank Burundi
• Ethiopia Rep. Office

Other Investments:

• KCB Capital Limited
• KCB Insurance Agency
• KCB Foundation
• Kencom House Limited

KCB BANK UGANDA

3

CUSTOMERS

21.2 MILLION

OUR REGIONAL PRESENCE

Branches 201 ATMs 371 Staff 5,065 Agents 12,213 Branches 11 ATMs 3 Staff 123 Agents 25 Staff 328 Agents 450 Branches 5 ATMs 7 Staff 127 Agents 185 Branches 14 ATMs 25 Staff 260 Agents 324 Branches 14 ATMs 16 Staff 291 Agents 125

Kenya South Sudan

Branches 15

Uganda ATMs 18 Burundi Rwanda T anzania Ethiopia

(Representative Office with 1 staff)

Touch Points:

4

OUR FOOTPRINT

5

• NO. 1

BANK IN THE REGION

Total Equity Net Loans and Advances Customer Deposits Total Assets

• KShs. 684.2 Bn
• KShs. 764.3 Bn
• KShs. 526.8 Bn
• KShs. 586.7 Bn
• KShs. 435.3 Bn
• KShs. 486.4 Bn
• KShs. 104.8 Bn
• KShs. 121.2 Bn

Q3 2018

Q3 2019

REGIONAL MARKET LEADER

RATING AGENCY SOVEREIGN KCB BANK KENYA

B2 (Stable) B2 (Stable) B+/B B+/B

6 No deviation in rating from 2018 Ratings confirmed in August and September 2019

STABLE CREDIT RATINGS

MACRO ECONOMIC HIGHLIGHTS

MACRO ECONOMIC HIGHLIGHTS

Kenya

GDP Growth Rate (%)

Contribution to GDP Q219 (%) Q219 Growth (%)

23.1 9.7 8.2 7.1

AGRICULTURE MANUFACTURING REAL TRADE EDUCATION TRANSPORT & FINANCIAL & CONSTRUCTION ICT HEALTH MINING& ESTATE STORAGE INSURANCE QUARRYING

6.8 6.9 5.9 1.8 0.9 5.5 3.6

Q2 19

5.6%

*Source: Kenya National Bureau of Statistics

8

4.1 4.2 5.4 5.8 6.0 7.2 6.7 7.2 11.6 5.2 5.7

GDP Growth 2019 Projected (%)

Tanzania Uganda Rwanda Burundi Ethiopia

• 2.6

7.7 2.3 7.8 5.5 6.6 East Africa GDP Growth Rate( % )

6.2

South Sudan

*Source: AfDB, Africa Economic Outlook 2019

Regional GDP Growth

2018

9

MACRO ECONOMIC HIGHLIGHTS

Source: AfDB, WEO 2019,WB

12.47

Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Avg Lending Rate CBK Rate

12.7

9.0

12.61 12.47

10 Inflation Evolution(%) Interest Rate Evolution (%)

7.5

5.70 5.58 4.70 4.35 5.49 6.27 3.83

2.5

Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19

Upper Limit Inflation Lower Limit

91 day T-Bill

7.63 7.56 7.36 7.34 7.19 7.02 7.08 7.17 7.39 6.90 6.62 6.44 6.35

MACRO ECONOMIC HIGHLIGHTS

USD/KES Exchange Rate

Stable Currencies across the region

SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP 2 1 8 2 1 8 2 1 8 2018 2 1 9 2 1 9 2 1 9 2 1 9 2 1 9 2 1 9 2 1 9 2019 2019

11

Q3 19 Q3 18

101.8 101.1 102.6 102.3 101.6 100.2 100.4 101.1 101.2 101.7 103.2 103.3 103.8

MACRO ECONOMIC HIGHLIGHTS

Exchange Rates to USD

Tanzania Uganda Rwanda Burundi Ethiopia

160 28 1,863 910 3,684 2,289

South Sudan

3,765 2,261 1,783 864 221 27

CURRENT ACCOUNT BALANCE (% OFGDP)

• 6.7
• 4.8
• 6.2
• 4.2

2015 2016 2017 July 2019

• 4.5

2019 Projected

• 5.5

July 2018

12

• 10.5

2014

• 5.0

2018

Imports grew at a slower pace in the 12 months to July 2019 mainly due to lower imports of food and SGR equipment.

Machinery and equipment Petroleum Manufactured goods Food Others

MACRO ECONOMIC HIGHLIGHTS

TOP IMPORTS ($M)

 Tourist arrivals remained

• strong. Maintained peaks

seen in 2018. Good for the hotel industry and Foreign exchange source.  Average forward hotel bookings for September to December 2019 were higher relative to a similar period in 2018

4,432 3,421 2,927 1,631 1,187

Kenya 13

4.3 4.4 2.4 4.3 5.2 6.1 6.3

Aug-18 Oct-18 Dec-18 Mar-19 Jun-19 Jul-19 Aug-19

12 Month Private Sector Credit Growth MPC Market Perception Survey conducted in September 2019 showed increased optimism on the economic growth prospects Consumer durables leading by far the main drivers for credit growth

Aug-18 Oct-18 Dec-18 Mar-19 Jun-19 Jul-19 Aug-19

Overall Private Sector Credit

4.3 4.4 2.4 4.3 5.2 6.1 6.3

Consumer durables

11.5 7.6 11.0 13.9 21.3 23.6 23.0

Private households

2.7 5.1 6.8 8.0 7.6 7.1 8.6

Trade

6.9 4.0 2.9 8.7 5.5 8.0 8.4

Manufacturing

13.2 14.8 6.5 7.2 11.4 10.3 7.5

Agriculture

• 4.3
• 5.6
• 2.0

0.2 3.9 7.6 6.6

Finance and Insurance

3.5 9.1 17.5 10.2 4.7 5.3 6.3

Transport and Communication

• 11.0
• 7.7
• 9.4

5.7 5.8 6.4 5.8

Real estate

0.9 1.2

• 0.5
• 0.1

1.0 0.5 2.4

Business services

6.5 12.1 8.0

• 0.4
• 3.2

1.6 1.0

Building and Construction

14.7 7.1 1.8

• 7.0
• 6.3
• 5.4
• 6.0

Mining and quarrying

• 9.1
• 11.6
• 10.7
• 11.4
• 4.3
• 13.5
• 10.8

Other activities

• 4.6
• 12.4
• 34.8
• 31.7
• 22.6
• 17.2
• 14.4

MACRO ECONOMIC HIGHLIGHTS

154.88 152.31 166.41 266.19 215.27 215.56 295.32 224.49 214.31 214.7 50 100 150 200 250 300 350 June July August June July August June July August Sept 2017 2018 2019

Diaspora Remittances (USD Millions)

8%

Cumulative inflows in the 12-months to September 2019: $ 2,786M 2018: $ 2,579M

14

MACRO ECONOMIC HIGHLIGHTS

YEAR TO DATE OVERVIEW

16

• Renewed focus on the sector following the repeal of the interest rate cap.

The target is to only marginally increase lending rates by not more than 300bps thus including customers previously cut from the lending universe.

• The Central bank concluded the withdrawal of the older 1,000 shillings

banknotes and introduced new notes. After the demonetization exercise, which had little impact on inflation or the exchange rate, KShs. 7.4 billion,

• r 3% of the total value in circulation of 1,000 notes, was rendered

worthless. The Banking Sector

2019 KENYA HIGHLIGHTS

17

• KCB completed the take-over of National Bank of Kenya Limited

(details on slide 41)

• The merger of CBA Limited and NIC Group PLC to form NCBA, was

effective as of 30th September 2019, following attainment of all regulatory approvals. The Banking Sector

2019 KENYA HIGHLIGHTS

18

KCB 2JIAJIRI PROGRAMME HIGHLIGHTS

AGRIBUSINESS

14,244

AUTOMOTIVE ENGINEERING

1,579

BEAUTY AND PERSONAL CARE

2,542

BUILDING AND CONSTRUCTION

5,725

DOMESTIC SERVICES

1,249

27,139

BENEFICIARIES TO DATE

FUTURE OF 2JIAJIRI

Catalyze job and wealth creation for at least

2,000,000

youth engaged in the informal sector within Eastern Africa

Kenya 25,339 Tanzania 1,500 Rwanda 300

‘Young Africa Works’

KShs 10 billion funding

from the MasterCard Foundation to scale up the bank’s 2jiajiri job creation programme 5-year investment of over

KShs 50 billion

to nurture and grow youthful and SME entrepreneurs

54:46

Male : Female Ratio

19

KCB FOUNDATION CASE STUDIES

Innovative Agri Entrepreneurs: Greenlife Veggies – Simon Muriithi and friends

• Armed with skills from 2jiajiri agribusiness training,

they established a lettuce growing business that inculcated the hydroponics farming technology.

• Signed a five-year sub-award contract with an

aggregator and off-taker. From dilapidated structure to modern salon – Irene Wangari

• Irene trained in hairdressing and beauty at Nyeri

National Polytechnic under 2jiajiri.

• Funding from KCB Foundation moved her from

deplorable premises with obsolete equipment and revamped her business at Skuta area in Nyeri that currently earns her over KShs 40,000 monthly profit.

20

Mainstreaming our 8 Adopted SDG’s

• 182 Business Bankers, Relationship

Managers and Credit Analysts trained on Environmental, Social Risk screening and Assessment.

• 90.5% of business units have

identified key performance indicators for tracking and monitoring of the 8 SDG’s.

UNEP FI – 6 Principles for RESPONSIBLE BANKING: Launched on 23 Sept. 2019 in New York

Alignment Impact & Target Setting Clients & Customers Stakeholders Governance & Culture Transparency & Accountability

SUSTAINABILITY UPDATE

Q3 2019 GROUP AWARDS

21

EUROMONEY AWARDS FOR EXCELLENCE 2019

• East Africa’s Best Bank for SMEs
• Kenya's Best Bank

GLOBAL FINANCE AWARDS 2019

• Best Bank in Kenya

BRAND AFRICA AWARDS 2019

• Most Admired Financial Services Brand

AFRICAN BANKER AWARDS 2019

• Best Regional Bank in East Africa
• Innovation in Banking

GLOBAL BUSINESS OUTLOOK 2019

• Best Digital Transformation in Online Banking
• Best CSR Initiative – 2jiajiri

GLOBAL BANKING AND FINANCE AWARDS 2019

• Best Corporate Governance Bank in Kenya
• Best Customer Service Bank in Kenya

THE BANKER MAGAZINE – TOP 1000 BANK RANKINGS

• 717th Globally
• 21st Africa (Highest mover Africa)

CHANNELS PERFORMANCE

September 2018 September 2019

18% decrease in average transactions / teller per day 18% decrease in Number of branch teller transactions (M)

BRANCH TELLER

5%

AGENCY, INTERNET AND POS

15%

MOBILE

75%

ATMS

5%

• Avg. Transactions / Teller per day

Number of Branch Teller Transactions Sep 2018 Sep 2019

73.6 60.0 12.5 10.2

95% of

transactions performed

• utside the

branch

Sep 2018 Sep 2019

141% growth

in non-branch revenue to over

8.6B

MOBILE

42%

AGENCY, INTERNET AND POS

33%

BRANCH TELLER

13%

ATMS

12%

23

OUR CHANNEL CONTRIBUTION

454

Q3 18 Q3 19

• No. of Mobile transactions

(M) V alueof Mobile Transactions (KShs.B)

272 149.2 37.8 40.9 33.6 31.8 48.0 49.9 16.5 16.5 2.0 1.7

B2C B2B C2B LIPA KARO

MobileTransaction type(%)

Q3 2019 Q3 2018

Q3 18

30.6B

Q3 19

159.3B

6,949

Mobile Revenue (KShs.M )

2,051

Q3 18 Q3 19 Q3 17 Q3 18 Q3 19

420%

Growth in total Mobile Loans Advanced

24

Q3 19

259

OUR CHANNEL CONTRIBUTION

217 88

Agent revenue (KShs M)

• No. of transactions

(M) Value of Transactions (KShs. B)

153 24.2 16.8 20.9 653 405 14.8 16.7 55.6 37.2 16.8 10.9 14.7 29.5 0.7 0.1 1.3 1.7 9

CASH DEPOSIT CASH WITHDRAWAL SCHOOL FEES BALANCE ENQUIRY BILL PAYMENT OTHERS

Agency Transaction type (%)

42%

Growth in Agency Banking Volumes

*Others: Account opening, mini statement, load cards and Funds transfer

Q3 17 Q3 18 Q3 19 Q3 17 Q3 18 Q3 19 Q3 18 Q3 19 Q3 2019 Q3 2018

25

356

Q3 17

AGENCY OUR CHANNEL CONTRIBUTION

• No. of transactions

(M) Value of Transactions (KShs. B)

117 112 10.4 11.1 11.5

4%

Decrease in ATM Volumes

ATM revenue (KShs M)

361 359 Q3 18 Q3 19 Q3 17 Q3 18 Q3 19 Q3 18 Q3 19

26

OUR CHANNEL CONTRIBUTION ATM

328 Q3 17 86 Q3 17

33 32

POS Revenue (KShs. M) Value of Transactions (KShs. B)

37 611 643 702

Q3 17 Q3 18 Q3 19 Q3 17 Q3 18 Q3 19

11%

reduction in the average value of Merchant/ POS transactions 27

MERCHANT/POS OUR CHANNEL CONTRIBUTION

PERFORMANCE TO DATE

• Govt. Securities

Customer Deposits Net Loans & Advances Total Assets

KShs 764.3B

12% growth in Total Assets KShs 684.2B

Q318 Q319

29

BALANCE SHEET HIGHLIGHTS

KShs 586.7B

KShs 526.8B

KShs 486.4B KShs 128.5B

KShs 119.5B KShs 435.3B

11% growth in Gross Loans & Advances

LOAN BOOK PERFORMANCE

30 Sectoral Loans Comparison

*CBK Data as at Dec 2018

26.6% 15.1% 13.0% 4.7% 18.8% 3.6% 6.8% 2.9% 4.4% 3.6% 0.5% 37.0% 17.9% 12.1% 6.9% 6.8% 4.9% 4.6% 4.3% 2.8% 2.6% 0.1% Personal/Household Real estate Manufacturing Building and construction Trade Financial services Transport and communication Tourism, restaurants and hotels Energy and water Agriculture Mining and Quarrying Industry* KCB Sep 19

463 513 24 23 3

Sep-18 Corporate Retail Mortgage Sep-19 * Group gross loans KShs.B

80% 20%

LCY FCY

LOAN BOOK PERFORMANCE

Asset Quality Review 31

6.8% 9.1% 10.7% 12.7% 12.6% 1.4% 1.3% 1.0% 0.6% 1.7% 6.9% 8.3% 8.0% 7.5% 8.3%

Q3 15 Q3 16 Q3 17 Q3 18 Q3 19

Industry NPL (Kenya) CoR NPL Group 2.4% 7.5% 9.6% 14.3% 3.3% 7.9% 8.5% 13.0% 3.4% 9.5% 10.5% 15.6% 3.9% 10.6% 9.5% 14.1% 2.8% 9.4% 10.4% 14.7% CHECK OFF MORTGAGE CORPORATE SME & MICRO Q3 2018 FY 2018 Q1 2019 HY 2019 Q3 2019

NPL Breakdown

81% 19% LCY FCY

LOAN BOOK PERFORMANCE

Group Coverage Ratio 32

24,548 31,097 34,731 34,780 42,583 80.0% 76.0% 85.6% 66.1% 58.9% 47.9% 38.9% 41.5% 64.2% 56.0%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

• 10,000

20,000 30,000 40,000 50,000

Q3 15 Q3 16 Q3 17 Q3 18 Q3 19

Gross NPL CBK Coverage Ratio IFRS Coverage Ratio

BALANCED DEPOSIT MIX

33 Currency Mix Deposits by type Q318 Deposits by type Q319

51% 48% 49% 50% 46% 49% 49% 47% 3% 3% 2% 3% Q3 18 2018 HY 2019 Q3 19

Corporate Retail Other

85 % 15%

LCY FCY

63% 5% 25% 7% 61% 5% 26% 8%

Demand Savings Term Call

STRONG CAPITAL BUFFERS

34

Core Capital to RWA T

• tal Capital to RWA

Kenya Kenya Group Group

10.5% 10.5% 10.5% 16.3% 18.1% 18.1%

Q3 18 FY 18 Q3 19

• Min. Core/RWA

Core Capital /RWA

14.5% 14.5% 14.5% 17.8% 19.5% 19.5% Q3 18 FY 18 Q3 19

• Min. Total/RWA

Total Capital/RWA

10.5% 10.5% 10.5%

15.0% 16.4% 16.5% Q3 18 FY 18 Q3 19

14.5% 14.5% 14.5% 16.5% 17.8% 17.8%

Q3 18 FY 18 Q3 19

6.2% Net earnings growth to KShs

19.2B

Net interest income Profit before tax Operating Expenses Total non Interest Income

KShs 27.2B

Profit before tax Up 6.1% KShs 25.6B

Q318 Q319

P&L HIGHLIGHTS

35

KShs (26.6B)

KShs (26.8B)

KShs 20.9B

KShs 17.9B

KShs 38.7B

KShs 36.3B

Profit Before Tax (KShs. Million) Q3 19 27,339 Q3 18 25,608 Q3 18 124,173 Q3 18 119,529 Q3 18 3.6% Q3 18 435,281 Q3 18 34,780 Q3 18 684,165 Q3 18 526,844 Non-Performing Loans (KShs. Million) Q3 19 42,583 Total Assets (KShs. Million) Q3 19 764,335 Customer Deposits (KShs. Million) Q3 19 586,715 Return

• n Assets

Q3 19 3.5% Net Loans and Advances (KShs. Million) Q3 19 486,423 Investment in Government Securities (KShs. Million) Q3 19 128,459 Q3 19 128,772 Market Capitalization (KShs. Million) Staff costs (KShs. Million) Q3 19 13,575 Q318 12,783

Q3 2019 PERFORMANCE SUMMARY

36

KShs Billion KCB Group KCB Bank Kenya Actual Q3 18 Actual Q3 19 Y-O-Y Change Actual Q3 18 Actual Q3 19 Y-O-Y Change Cash and balances with central bank

39.7 54.3 37% 36.8 49.6 35%

Balances with other institutions

39.5 42.5 8% 13.5 19.8 46%

Investments in Government & Other securities

119.7 128.5 7% 102.3 114.6 12%

Net loans and advances

435.3 486.4 12% 398.4 442.0 11%

Fixed assets

10.6 17.0 61% 7.6 12.2 61%

Other assets

39.4 35.5 (10%) 35.4 29.5 (17%)

Total Assets

684.2 764.3 12% 594.0 667.7 12%

Customer deposits

526.8 586.7 11% 472.0 522.1 11%

Balances due to other banks

12.6 13.5 7% 3.2 5.1 58%

Other liabilities

18.5 20.8 12% 15.1 17.7 17%

Long-term debt

20.7 22.1 7% 17.1 18.9 11%

Total Liabilities

578.7 643.1 11% 507.5 563.9 11%

Shareholders’ equity

105.5 121.2 15% 86.5 103.8 20%

Total liabilities and equity

684.2 764.3 12% 594.0 667.7 12%

STRONG BALANCE SHEET GROWTH

37

Driven by KShs 51.1B growth in net loans and advances

KShs Billion

KCB Group KCB Bank Kenya

Actual Q3 18 Actual Q3 19 Y-O-Y Change Actual Q3 18 Actual Q3 19 Y-O-Y Change Interest income 49.2 51.4 5% 44.1 45.8 4% Interest expense (12.9) (12.8) (1%) (11.1) (10.8) (3%) Net interest income 36.3 38.7 7% 32.9 34.9 6% Foreign exchange income 3.7 3.5 (6%) 2.1 2.2 8% Net fees and commissions 11.0 14.1 28% 8.5 12.3 45% Other income 3.3 3.4 3% 3.0 2.9 (5%) Total other operating income 17.9 21.0 17% 13.6 17.4 28% Total other operating expenses (26.8) (26.6) 1% (21.0) (21.9)

• 4%

Provisions for bad debts (1.8) (5.8) 225% (1.7) (5.4) 218% Profit before tax 25.6 27.2 6% 23.9 25.1 5% Tax (7.6) (8.0) 6% (6.9) (7.1) 3% Profit after tax 18.0 19.2 6% 16.9 17.9 6%

6% GROWTH IN EARNINGS

38

Return on Average Equity Cost to Income Gross NPL to Gross Loans NPL Coverage Debt to Equity Non funded income to total income Cost of funds Net Interest Margin Cost of risk Loan to Deposit Ratio Growth of Net Loans and Advances Growth of Customer Deposits

21.9% 48.3% 6.9% 72.4% 19.7% 32.0% 3.2% 8.1% 0.7% 84.8% 8.0% 8.0% 21.8% 44.7% 8.3% 56.0% 18.3% 35.2% 2.8% 7.9% 1.7% 87.0% 11.7% 11.4%

Q3 18 FY 18 HY19 KENYA GROUP

22.8% 49.7% 7.5% 80.8% 19.7% 33.3% 3.2% 8.1% 0.5% 88.0% 3.8% 6.2% 23.8% 41.8% 8.3% 73.3% 18.9% 33.3% 2.8% 7.8% 1.6% 91.1% 10.9% 10.6%

OVERVIEW OF KEY FINANCIAL RATIOS

39

23.5% 45.7% 7.8% 60.8% 19.1% 34.1% 2.8% 8.3% 1.3% 89.2% 14.0% 7.0%

473 679 586 713

Q3 18 Q3 19

198 1,034 2,567 3,320 5,879 6,642 1… 1… 15,6… 17,7…

• KShs. M

Net Loans & Advances PBT KCB Bank South Sudan KCB Bank Burundi KCB Bank Uganda KCB Bank Rwanda KCB Bank Tanzania

163 243 375 (90)

49% (124%) 44% 22%

INTERNATIONAL BUSINESS HIGHLIGHTS

21% growth in banking subsidiaries loans and advances 40

• 14% earnings

growth in banking subsidiaries

109 404

271%

40

41

87.7% acceptance:

• 297.1M of 338.7M shares

142.6M additional shares

• New shares listed and available for trading at the Nairobi

Securities Exchange Increase the shareholding to 97.17%

• Upon completion of the conversion of the non-cumulative

preference shares by the end of November 2019 Squeeze out

• Process of compulsory acquisition of the remaining 41.6M

shares is ongoing

• Reorganization of the board: Complete
• Reorganization of the management team: Ongoing
• Assessment on the value of capital allocation required: Ongoing
• Integration work streams: Ongoing

HIGHLIGHTS ON NBK

42

Non Performing Loans (KShs. Million) Q3 19 32,956 Q3 18 30,884 Q3 18 41,012 Q3 18 232.7 Q3 18 48,002 Q3 18 2,917 Q3 18 112,450 Q3 18 92,814 Q3 19 3,026 Total Assets (KShs. Million) Q3 19 107,164 Customer Deposits (KShs. Million) Q3 19 82,513 Q3 19 30.8 Net Loans and Advances (KShs. Million) Q319 47,853 Q3 19 37,014 Q3 19 675.5 Q3 18 464.6 Profit Before Tax (KShs. Million) Staff cost (KShs. Million) Loan Provisions (KShs. Million)

• Gov. Securities

(KShs. Million)

HIGHLIGHTS ON NBK

ATMs Q3 19 97 Q3 19 1,454 Q3 19 690,838 Q3 19 79 Branches Staff numbers Funded accounts

KCB Group

(incl NBK)

FY 2019 OUTLOOK

Non funded income growth 27.4% NFI Ratio 34.3% Cost/ Income ratio 44.9% Operating expenses 10.9% Cost of funds 2.7% Cost of Risk 1.7% NPL Ratio 10.0% NIM 7.9% Asset yield 10.6% Loan growth *15.1% Deposit growth *26.6% ROA 3.4% ROE 22.3%

43

*Including the one-off from the investment in NBK

Investor Relations Email: investorrelations@kcbgroup.com www.kcbgroup.com