RESULTS OUR WHAT DRIVES US HOW WE WHO WE ARE STRATEGY ACHIEVE - PowerPoint PPT Presentation

FY2018 RESULTS

OUR WHAT DRIVES US HOW WE WHO WE ARE STRATEGY ACHIEVE IT Business growth while Our Purpose achieving the women Customer perspective Simplifying and youth agenda Market share your world to Shared Value enable your Brand position Customer centricity progress Financial PBT Drive shareholder Efficiency value 2015-2019 STRATEGY: Shareholder Value TRANSFORMATIVE Growth in Digital Our Promise Internal Business PARTNERSHIPS Financial services Go Ahead processes System reliability Sustainability Operational efficiency Control environment Our Values Learning and growth Inspiring Talent Staff productivity Staff Simple management development Friendly Culture change 2

KShs. 114B OUR TOTAL EQUITY REGIONAL PRESENCE 258 BRANCHES 946 ATMS, 16,642 AGENTS & MERCHANTS Banking Businesses: • KCB Bank Kenya 6,220 STAFF • KCB Bank Tanzania 17.4 MILLION CUSTOMERS • KCB Bank South Sudan • KCB Bank Rwanda • KCB Bank Uganda • KCB Bank Burundi KCB BANK KENYA (ETHIOPIA • Ethiopia Rep. Office REPRESENTATIVE KCB BANK OFFICE ) SOUTH SUDAN Other Investments: • KCB Capital Limited • KCB Insurance Agency KCB BANK KENYA • KCB Foundation KCB INSURANCE AGENCY KCB FOUNDATION • Kencom House Limited KCB CAPITAL KCB BANK RWANDA KCB BANK KCB BANK BURUNDI TANZANIA 3

2018 GROUP HIGHLIGHTS

Adoption ofIFRS 9: • Impact on capital ratios and the introduction of a 5 year grace 2018 KENYA period the Central bank of Kenya HIGHLIGHTS • Impact on the loan book and provisions, subsequent effect on P&L Banking Industry: Overview of the year to date • Momentum for mergers & acquisitions • Imperial Bank Limited (In Receivership) (IBLR) -Acceptance of binding offer and verification of part of the assets for transfer to KCB Bank Kenya • Increased regulatory oversight on compliance with Kenya’s Anti -Money Laundering and Combating the Financing of T errorism (AML/CFT)and Imposition of a fines Economic drivers: • Big Four – Housing Healthcare Manufacturing Food security • Resilient Kenya Shilling supported by record growth in diaspora remittances, tourism & horticulture 5

2018 GROUP HIGHLIGHTS TANZANIA Overview of the year to date UGANDA RWANDA • Strong growth in the • Robust activity in the Sustained >7% growth over domestic demand and manufacturing, oil and the last decade expansion of credit, mining sectors expected Primary drivers of the especially to households to drive growth over 6% in economy diversifying to trade and manufacturing 2019 service, trade and ICT , over • Expectation is high on the and above the mainstay, • Growing fiscal deficit major national projects on Agriculture driven largely by public the SGR and the facilitation infrastructure investment Made in Rwanda initiatives of improved access to and international conferences modern energy services • Favorable weather boosting tourism and inflow of • A favorable monetary policy conditions are key to the foreign currency in 2018 with the BOT largely agricultural slashing its discount rates in economy from 9% to 7% 6

2018 GROUP HIGHLIGHTS Overview of the year to date BURUNDI SOUTH SUDAN • Moderate recovery of the • Improved economic conditions predominantly agricultural following the signing of the economy peace agreement • Annual GDP growth • Reduced internal conflicts and a improving from to0.5% in moderate improvement in the 2017 to 2.8% oil prices supporting the growth of the economy • Positive outlook after the referendum held in 2018 • Oil production is expected to • Opportunities in mining recover fully in 2019 boosting the and the hydropower inflow of foreign currency into the capacity economy 7

2018 Group Awards THE BANKER THE EABC AWARDS AWARDS Best East African Company Bank of the Year – Banking in the Community (2Jiajiri) SUSTAINABLE BANKER AFRICA FINANCE CATALYST EAST AFRICA AWARDS • Best Bank in Sustainable Finance Best Retail bank in • Overall Winner, in sustainable East Africa finance integration and practices (Tier 1 Banks) 8

2018 HIGHLIGHTS AGRIBUSINESS 13,953 BUILDING AND CONSTRUCTION 4,459 BEAUTY AND KCB 2jiajiri PERSONAL CARE AUTOMOTIVE 2,119 Programme ENGINEERING 1,383 highlights DOMESTIC SERVICES 1,145 FUTURE OF 2JIAJIRI Catalyze job and wealth creation for at least 100,000 Kenya youth engaged in the informal 21,459 sector within Eastern Africa Tanzania 23,059 Investment of over 1,500 KShs 50 billion BENEFICIARIES Rwanda to nurture and grow youthful and 100 SME entrepreneurs 9

From hustling to an employer – ‘Kodhis’, the Beautician 2018 • Humble beginnings in hawking safari HIGHLIGHTS bags to the realization of the pedicure and manicure business. • Introduced to KCB Foundation’s 2Jiajiri in KCB 2016, and now after his expansion Foundation journey, employs 15. Case studies Starting a garage business: One entrepreneur’s journey • Joseph Mutai was a mechanic training on the job at a garage in Kericho when he was introduced to the 2Jiajiri programme in 2016. • He is now a proud owner of a motor vehicle spares and garage business with 8 employees. 10

MACRO- ECONOMIC HIGHLIGHTS

MACRO- ECONOMIC HIGHLIGHTS Contribution to GDP Q3 2018 Q32018(%) Growth (%) Kenya 18.89 9.62 8.73 8.69 8.50 7.12 6.2% 7.33 5.75 9.10 6.15 5.10 6.80 6.80 6.00 5.80 5.40 3.78 5.20 1.85 1.12 3.20 2.60 AGRICULTURE MANUFACTURING REAL TRADE EDUCATION TRANSPORT FINANCIAL& CONSTRUCTION ICT HEALTH MINING& & ESTATE STORAGE INSURANCE QUARRYING 2018P GDP Growth Rate( % ) 12

MACRO- ECONOMIC HIGHLIGHTS GDP Growth (%) Regional GDP Growth 8.0 7.2 7.1 6.1 2.8 5.7% South Sudan Ethiopia Rwanda Tanzania Uganda Burundi 2018P* -6.3 East Africa GDP Growth Rate( % ) 13 *Source: AfDB, Africa Economic Outlook 2019

Inflation Evolution(%) Inflation Target Target Non Food MACRO- rate Upper Lower Fuel 7.50 ECONOMIC 5.71 HIGHLIGHTS 4.83 Kenya 4.20 3.50 2.50 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2018 2 0 1 8 2 0 1 8 2018 Interest Rate Evolution(%) 13.65 13.49 13.22 12.78 12.61 12.61 10.00 9.00 9.50 8.03 8.04 8.02 8.00 7.97 7.73 7.67 7.64 7.63 7.56 7.36 7.34 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2 0 1 8 2 0 1 8 2 0 1 8 2018 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2018 91da ybill A vg lendingrates CBRrate 14

USD/KES Exchange Rate(%) MACRO- 103.3 102.6 ECONOMIC 101.4 101.1 102.3 101.0 100.7 HIGHLIGHTS 101.3 100.8 100.6 100.6 Currency Movement JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2 0 1 8 2 0 1 8 2 0 1 8 2018 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2018 Exchange Rates to USD 3,712 2,300 1,803 876 130 28 South Uganda Ethiopia Tanzania Burundi Rwanda Sudan 15

Only African currency to strengthen against the USD in 2018 MACRO- ECONOMIC Kenya 1.0% HIGHLIGHTS Malawi -0.8% Uganda -2.0% K enya Nigeria -2.0% Seychelles -2.5% • Overall reduction on Mauritius -2.5% infrastructure spending Tanzania -3.0% • Increased exports of Rwanda -5.0% tea and horticulture • Increased diaspora BRVM -7.0% remittances Ghana -7.2% • Strong receipts from tourism Botswana -8.0% • Lower imports of South Africa -14.0% food Zambia -16.0% 16

Current Account Balance (% ofGDP) MACRO- ECONOMIC HIGHLIGHTS -5.2 -5.4 -6.2 K enya -6.7 -10.4 2014 2015 2016 2017F 2018F 12 Month Private Sector CreditGrowth 4.4% 4.3% 4.3% 3.9% 3.0% 2.8% 2.7% 2.4% 2.1% 2.0% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2 0 1 8 2 0 1 8 2 0 1 8 2018 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2 0 1 8 2018 17

CHANNEL PERFORMANCE

December2017 OUR CHANNEL AGENCY, BRANCH ATMS MOBILE INTERNET TELLER CONTRIBUTION 45% 13% AND POS 16% 26% 88% of December2018 transactions performed AGENCY, BRANCH ATMS outside the INTERNET MOBILE TELLER 45% AND POS 1 1% 12% 32% branch 14% decrease in average transactions 15% decrease in Number of branch / tellerper day transactions. 27% Dec 2017 Dec 2017 81.9 18.6 growth in Dec 2018 71.5 Dec 2018 16.2 non-branch revenue to A vg. Transactions / T eller perday Number of Branch Transactions( M ) over 5.2B 19

V alueof Transactions No. of transactions Mobile Revenue OUR (KShs.B) (M) (KShs.M ) CHANNEL 3,175 CONTRIBUTION 2,261 331 62.1 236 84% 52.0 172 Growth in 32.9 Mobile Loans Advances FY 16 FY17 FY18 FY 16 FY17 FY18 FY17 FY18 MobileTransaction type(%) FY 2017 FY 2018 54.4B 55.0 49.9 32.4 29.6B 19.4 24.3 16.2 1.4 1.3 2017 2018 B2C B2B C2B LIPA KARO 20