RESULTS 1 CUSTOMERS 24.6 MILLION OUR REGIONAL 359 BRANCHES - PowerPoint PPT Presentation

HY 2020 RESULTS 1

CUSTOMERS 24.6 MILLION OUR REGIONAL 359 BRANCHES PRESENCE 1,082 ATMS, 23,192 AGENTS & MERCHANTS Banking Businesses: • KCB Bank Kenya STAFF • KCB Bank Tanzania • KCB Bank South Sudan 7,814 • KCB Bank Rwanda • KCB Bank Uganda • KCB Bank Burundi KCB BANK KENYA (ETHIOPIA • National Bank of Kenya REPRESENTATIVE KCB BANK • Ethiopia Rep. Office OFFICE ) SOUTH SUDAN KCB BANK KENYA Other Investments: KCB BANK NATIONAL BANK OF KENYA • KCB Capital Limited UGANDA KCB INSURANCE AGENCY KCB FOUNDATION • KCB Insurance Agency KCB CAPITAL • KCB Foundation KCB BANK RWANDA • Kencom House Limited KCB BANK KCB BANK BURUNDI TANZANIA 2

OUR FOOTPRINT Ethiopia Branches 12 South ATMs 3 Agents 42 (Representative Office Sudan with 1 staff) Staff 118 Touch Points: Branches 15 Uganda ATMs 18 Agents 530 Branches 300 Staff 271 ATMs 357 Kenya Agents 13,412 Branches 12 Staff 6,774 ATMs 25 Rwanda Agents 415 Staff 249 Branches 14 ATMs 15 T anzania Branches 6 Agents 172 ATMs 7 Staff 274 Burundi Agents 185 Staff 127 3

CREDIT RATINGS RATING SOVEREIGN KCB BANK KENYA AGENCY Credit Ratings at par with the Sovereign Rating B2 (Negative) B2 (Negative) B+/B B+/B (Negative) (Negative) 4

KCB 2JIAJIRI AGRIBUSINESS 2JIAJIRI BENEFICIARIES PROGRAMME 19,080 PER SECTOR BUILDING AND HIGHLIGHTS CONSTRUCTION 9,910 BEAUTY AND PERSONAL CARE 3,480 AUTOMOTIVE ENGINEERING FUTURE OF 2JIAJIRI 2,083 Catalyze job and wealth DOMESTIC creation for at least SERVICES 1,638 2,000,000 36,706 youth engaged in the informal ICT BENEFICIARIES TO 515 sector within Eastern Africa DATE 5-year investment of over KShs 50 billion Male : Female Ratio to nurture and grow youthful and Kenya SME entrepreneurs 35,949 54:46 Tanzania ‘Young Africa Works’ 357 KShs 10 billion funding Rwanda from the MasterCard Foundation 300 to scale up the Bank’s 2jiajiri job Uganda 100 creation programme 5

Peter Kanyi, Owner, D-DEKX Autocare, Nairobi KCB FOUNDATION • Studied mechanical and electrical engineering at CASE STUDIES Eastlands College of Technology under 2jiajiri . • Opened a business, D-DEKX Autocare, where he makes an average of KShs. 50,000 monthly. • Has leveraged on innovation and creativity to combine car repairs and car wash services to maximise profits. • Has employed one youth in the business. Serah Njeri, Mason, Young Africa Works, Ngong • Studied masonry at the Kabete National Polytechnic under 2jiajiri. • Transitioned to the Young Africa Works project- partnership between 2jiajiri and Mastercard Foundation. • Is applying her skills at Arc Skills- the firm constructing Young Africa Works project greenhouses at Kibiko, Ngong, from where she earns a living. 6

SUSTAINABILITY • KCB Bank Kenya has FOCUS restructured facilities worth over KShs. 100 B to cushion customers against the Ongoing effects of the COVID-19 alignment pandemic. with the • KCB Group adopted 9 Principles of SDGs. Implementation, impact measurement and Responsible tracking ongoing. Banking • Environmental and Social Due Diligence screening completed on KShs. 31.6B of the portfolio 7

Macro-Economic Highlights 8

MACROECONOMIC HIGHLIGHTS Kenya 42.4 9.8 9.5 6.7 6.4 5.4% 6.2 6.1 5.8 5.3 4.9 4.3 4.3 2.9 6.1 1.1 4.8 6.3 6.4 3.9 6.9 1.3 0.8 AGRICULTURE MANUFACTURING REAL TRADE EDUCATION TRANSPORT & FINANCIAL & CONSTRUCTION ICT HEALTH MINING& 2019 ESTATE STORAGE INSURANCE QUARRYING Growth -0.3% 2020 Contribution to GDP Q1 2020 (%) Q1 2020 Growth (%) Projection Sources: -Kenya National Bureau of Statistics -IMF 9

MACROECONOMIC HIGHLIGHTS GDP Growth (%) Sub-Saharan Africa GDP Growth (%) 11.3 10.1 9.0 6.3 4.9 4.9 3.1 2.0 1.8 3.2 1.9 1.8 2020 Projection Uganda Burundi Rwanda South Sudan 2019 Ethiopia Tanzania - 3.2 -5.5 2019 2020 Growth Projection Source: IMF 10

Inflation Evolution(%) Inflation Target Target Non Food MACROECONOMIC rate Upper Lower Fuel 7.5 HIGHLIGHTS 6.37 6.27 6.06 5.82 5.78 5.70 5.62 5.56 5.47 5.00 4.95 4.59 Kenya 3.83 3.4 2.5 1.6 JUN JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY 2 0 1 9 2 0 1 9 2 0 1 9 2019 2 0 1 9 2 0 1 9 2019 2 0 2 0 2020 2020 2 0 2 0 2020 2020 Interest Rates Evolution (%) 12.47 12.39 12.46 12.47 12.43 12.38 12.24 12.29 12.19 12.19 11.76 11.87 11.76 9.0 8.25 8.5 7.25 7.00 7.00 7.31 7.28 7.17 7.29 7.29 7.22 7.09 6.65 6.90 6.62 6.56 6.60 6.65 JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2 0 1 9 2 0 1 9 2 0 1 9 2019 2 0 1 9 2 0 1 9 2019 2 0 2 0 2020 2020 2 0 2 0 2020 2020 Sources: Central Bank of Kenya 91 day bill Average Lending Rate CBR Kenya National Bureau of Statistics 11

USD/KShs. Average Monthly Exchange Rate 106.4 106.4 MACROECONOMIC 103.7 103.3 HIGHLIGHTS 101.7 101.5 101.1 100.8 Depreciation of regional currencies against the USD as a JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2 0 1 9 2 0 1 9 2 0 1 9 2019 2 0 1 9 2 0 1 9 2019 2 0 2 0 2020 2020 2 0 2 0 2020 2020 result of Covid-19 pandemic’s will lead to imported inflation. Exchange Rates, Local Currency to USD 3,730 3,690 2,295 2,278 1,913 1,845 937 899 235 164 34 29 Jun 2019 Jun 2020 Rwanda Ethiopia Tanzania Uganda Burundi South Sudan 12

Current Account Balance (% of GDP) MACROECONOMIC HIGHLIGHTS -5.1 Kenya -5.2 -5.8 -5.8 -5.8 -6.9 -7.2 Diaspora emittances Q2 2020: $ 754.9M 4% 2015 2016 2017 2018 2020 2019 12 moths to Q2 2019: $ 783.9M May 2020 Projected 12 Month Private Sector Growth 9.0% 8.9% 8.1% 7.7% 7.6% 7.3% 7.3% 7.1% 7.0% 6.6% 6.3% 6.1% 5.2% JUN JUL AUG SEP OCT NOV DEC JAN FEB M AR APR M AY JUN 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2019 2 0 1 9 2 0 1 9 2020 2020 2 0 2 0 2 0 2 0 2 0 2 0 2020 13

Channel Performance 14

HY 2019 OUR CHANNEL AGENCY, CONTRIBUTION BRANCH INTERNET MOBILE ATMS TELLER 78% AND POS 4% 4% 14% 98% of HY 2020 transactions performed AGENCY, BRANCH outside the INTERNET ATMS MOBILE TELLER 79% AND POS 3% 2% branch 16% 13% 20% decrease in average transactions 46% decrease in Number of branch growth in / tellerper day transactions. non-branch revenue to HY 2019 H Y 2019 64.4 7.3 KShs. 4.9B HY 2020 HY 2020 51.6 3.9 Number of Branch Transactions( M ) A vg. Transactions / T eller perday 15

OUR CHANNEL CONTRIBUTION V alueof Mobile Transactions: No. of Mobile Transactions Mobile Revenue (KShs.B) (M) (KShs.M ) 12 % 4,398 Reduction in 4,150 130.4 Total Mobile 127.3 392 Loans Advanced 293 175 1,304 26.9 103.1B 90.6B HY 18 HY 19 HY 20 HY 18 HY 19 HY 20 HY 18 HY 19 HY 20 HY 19 HY 20 16

MobiTransaction type(%) HY 2019 HY 2020 OUR CHANNEL CONTRIBUTION 47.1 38.3 32.7 34.6 28.0 16.2 KShs. 98.6B 2.1 1.1 worth of C2B deposits in HY20 B2C B2B C2B LIPA KARO Month on Month Evolution of C2B Transactions Exponential Growth in 1.40 1.27 40 Number and Value of 35 1.20 1.06 C2B Transactions 30 1.00 during Covid-19 Period 0.75 25 0.80 driven by the push to 0.57 20 0.51 0.50 35 0.60 digital transactions and 15 28 0.40 fee waivers. 10 17 0.20 5 8 6 5 - 0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Value (KShs B) Number (M) 17

V alueof Transactions No. of transactions Agency Revenue (KShs.M ) (KShs.B) (M) OUR CHANNEL CONTRIBUTION 413 21.7 21.7 183 AGENCY 270 135 239 16.3 101 35% HY 18 HY 19 HY 20 HY 18 HY 19 HY 20 HY 18 HY 19 HY 20 Growth in Agency Banking Agency Transaction type(%) Volumes HY 2020 HY 2019 38.7 37.1 29.9 29.3 16.5 16.1 14.4 14.6 1.6 1.4 0.1 0.1 CASH CASH SCHOOL BALANCE BILL OTHERS* DEPOSIT WITHDRAWAL FEES ENQUIRY PAYMENT *Others: Account opening, mini statement, load cards and Funds transfer 18

OUR CHANNEL CONTRIBUTION ATM Revenue No. of Transactions V alue of Transactions (KShs M) (KShs.B) (M) ATM 20% 241 234 Reduction in number of 195 65 7.7 61 61 ATM 6.8 transactions 5.5 HY 18 HY 20 HY 18 HY 20 HY 18 HY 20 HY 19 HY 19 HY 19 19

OUR CHANNEL CONTRIBUTION POS Revenue (KShs. M) V alue of Transactions (KShs.B) MERCHANT / POS 2% 439 Decrease in 24 389 number of POS 21 transactions to 18 306 3.2M HY 18 HY 19 HY 20 HY 18 HY 19 HY 20 20

Financial Performance 21

Government Securities KShs 208.5B BALANCE SHEET KShs 135.0B HIGHLIGHTS Net Loans & Advances KShs 559.9B KShs 478.7B 28% Customer Deposits Total assets KShs 758.2B growth split KShs 563.2B between 12% organic and 16% inorganic. Total Assets KShs 953.1B KShs 746.5B HY 19 HY 20 22