Equity Group Holdings Limited · NSEKE:EQTY
Equity — Q3 2021 Earnings Presentation
88 slides from Equity's earnings presentation, Nov 8, 2021
Slide 1: Investor Briefing Q3 2021 Performance
INVESTOR BRIEFING Q3 2021 PERFORMANCE
Slide 2: Equity Group Holdings Plc Investor Briefing
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE 2
Slide 3: Equity Group's Philosophies
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Equity Group’s Philosophies Our Purpose: Our Mission: Transforming lives, giving dignity and expanding We offer integrated financial services that socially and opportunities for wealth creation economically empower consumers, businesses
Slide 4: Governance and Organizational Structure
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Governance and Organizational Structure 4
Slide 5: Governance and Organizational Structure
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Governance and Organizational Structure CBK CMA SHAREHOLDERS NSE RATING AGENCY EQUITY GROUP HOLDING PLC Subsidiary Group Board Subsidiary Boards Boards Board Group Board Board Committees Committees Board Committees Structured CEO’s OFFI
Slide 6: Governance and Organizational Structure (continued)
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Governance and Organizational Structure (continued) Breadth and Depth of the Management Team EGH Strategy S IT Alignment of strategy and execution reflected by close interaction between the CEO’s office and Corporate Office Breadth and
Slide 7: Group Executive Management
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Group Executive Management Dr.James Mwangi,CBS Mary Wamae Polycarp Igathe O l a n rDeaw v iadj uN B gam t ai s e b i Group Managing Director & Group Executive Director Group Chief Commercial G r o uGpr oFui p n aDnicree cDt iorre, c t o
Slide 8: Group Executive Management
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Group Executive Management Gerald Warui Emmanuel Deh Samuel Kirubi Anthony Kituuka Managing Director, Executive Director, Managing Director, Executive Director, Equity Bank Kenya Equity Bank Kenya Equity Bank Uganda Equity Bank Uganda A
Slide 9: Group Board of Directors
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Group Board of Directors Prof. Isaac Macharia Dr. James Mwangi Mary Wamae Non-Executive Chairman Group Managing Director Group Executive Director and Chief Executive Officer Dr. Edward Odundo Evelyn Rutagwenda Vijay Gidoomal Non-Executi
Slide 10: Press Release
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Press Release 10
Slide 11: Press Release
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Press Release RESILIENT, VERSATILE BUSINESS MODEL, LEADERSHIP AGILITY, INNOVATION, DIVERSIFICATION, EFFICIENCY AND STRATEGY DRIVES EQUITY GROUP HOLDINGS Plc TO RECORD: • 85% growth in Profit Before Tax • 79% growth in Profit After Tax •
Slide 12: Press Release (continued)
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Press Release (continued) Merchants digital payments ‘Pay with Equity” (PWE) transactions grew by 408% from 3.1 million transactions to 15.8 million transactions while the value of the transactions grew by 392% from Kshs.17.1 billion to
Slide 13: Press Release (continued)
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Press Release (continued) Efficiency gains enhanced Group return on Equity to 24% up from 16.9% while return on assets improved to 3.2% up from 2.5%. Equity BCDC in DRC continued to offer confidence of good investment decision. Deposits
Slide 14: Macroeconomic and Operating Environment
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Macroeconomic and Operating Environment 14
Slide 15: The Great Multi Crises - COVID-19
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE The Great Multi Crises - COVID-19 Economic crisis McKinsey & Co survey on potential risks to economic International Monetary Fund (IMF) - Global growth shows that the COVID-19 pandemic still recovery continues, but the momentum has pose
Slide 16: The Great Multi Crises - COVID-19: Health crisis
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE The Great Multi Crises - COVID-19 Health crisis • Monthly confirmed new cases • Vaccinations reported New monthly COVID-19 cases fluctuating in tandem as of 31st October with new COVID-19 waves emergence 2021 World 6.8 Bn Doses given Gl
Slide 17: Regional CBR and Currency Depreciation
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Regional CBR and Currency Depreciation 18.50% Sep-20 Dec-20 Sep-21 15.00% 15.00% 10.00% Regional CBR 8.50% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 6.50% 5.00% 5.00% 4.50% 4.50% 4.50% Kenya Uganda Tanzania Rwanda DRC S.Sudan Sep-20 -4.
Slide 18: Real GDP growth projected to improve across the region
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Real GDP growth projected to improve across the region 2020 Actual IMF 2021 Projection 5.6% 5.1% 5.3% 4.7% 4.9% 4.0% GDP growth 1.0% -0.1% -0.2% -0.1% -2.1% -6.6% Kenya Uganda Tanzania Rwanda DRC S.Sudan 25.4% Sep-20 19.0% Sep-21 10.8%
Slide 19: Equity Social Investments Complements Government Efforts against COVID-19
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Equity Social Investments Complements Government Efforts against COVID-19 Pandemic Kes 5.3 billion to complement Government’s health and social responses as well as support our customers Health Response Social Response Loan restructurin
Slide 20: Africa Post COVID-19 Recovery and Resilience Plan
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Africa Post COVID-19 Recovery and Resilience Plan Social and economic transformation plan Background The Plan 1. Africa remains a continent of opportunities driven by secular growth drivers of: 1. Leverage off the Social Engine and Econ
Slide 21: Africa Post COVID-19 Recovery and Resilience Plan
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Africa Post COVID-19 Recovery and Resilience Plan Social and economic transformation plan Strategic Strategic pillars pillars Strategic objectives Strategic objectives Food and agriculture 1. Lend to 5 million businesses and bank 100 mi
Slide 22: Equity Bank Business Model and Strategy
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Equity Bank Business Model and Strategy 22
Slide 23: Equity Bank Business Model & Strategy Focus
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Equity Bank Business Model & Strategy Focus Inclusive, High volume, Low Margin, Digital and Experiential, Agile and Quality-Driven Business Model 1. 1. Non-Funded Income Growth 2. Treasury efficiency 3. Geographical expansion and Busine
Slide 24: Focus Area 1: Non-Funded Income Growth
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 1: Non-Funded Income Growth Kes Billion Gross Loan Interest Gross Interest Income Non-Funded Income Contribution to Total Income Income Growth Trend Growth Trend Growth Trend +25% 79.9 +29% +16% 67.0 63.6 +24% +22% 54.8 48.5
Slide 25: Focus Area 1: NFI Contribution
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 1: NFI Contribution Equity Group still more diversified than the sector’s average as at Q2 2021. Equity’s focus on NFI has led to superior returns compared to the market with higher income and profitability on total assets Ti
Slide 26: Focus Area 2: Treasury Efficiency
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 2: Treasury Efficiency Kes Billion Government Treasury Gross Income Treasury Income Mix Yield on Government Securities & Securities Portfolio Contribution Capital Gains +29% Government securities yields and mark-to- +62% mark
Slide 27: Focus Area 3: Subsidiaries Performance and Contribution
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Subsidiaries Performance and Contribution Kes Billion Other Subs Other Subs Equity Other Subs Total EBKL Group Q3 2021 EBTL EBRL EBUL EBSS EIA EIB Finserve Contribution Contribution BCDC (% Contribution) (% Contribution) (
Slide 28: Focus Area 3: Geographical and Business Diversification
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification Performance Trend - Banking Subsidiaries: Value creation and growth RoAE RoAA Subsidiary Q3 2020 Q3 2021 Subsidiary Q3 2020 Q3 2021 EBKL 18.4% 29.7% EBKL 2.6% 3.8% EBUL 19.1% 26.7%
Slide 29: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Regional subsidiaries are high-growth assets, with UG and RW becoming high-return subsidiaries as well Equity Kenya return history Equity Uganda return history INVESTMENT
Slide 30: Focus Area 3: Subsidiaries achieving high returns in shorter periods
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Subsidiaries achieving high returns in shorter periods Years to achieve high return (ROA above 4%) 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% Year 1 Year 2 Year 3
Slide 31: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification • Present in 6 countries and a commercial representative office in Ethiopia • We are a Top 2 bank in our two largest markets and in the Top 5 in three other markets • Pop
Slide 32: Productivity gains from access to credit and infrastructure
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Productivity gains coming from improving access to credit and infrastructure Low credit penetration highlights significant Improving access to infrastructure will support
Slide 33: Regional trade and growing connectivity to global trade
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification Regional trade and growing connectivity to global trade underpinned by expanding trade corridors East and Central Africa increasing Growing linkages to global infrastructure connec
Slide 34: Equity Group regional presence to drive cross-border trade
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Equity Group regional presence to drive cross-border trade and support informal traders NORTHERN CORRIDOR Gateway through Kenya to landlocked countries of Uganda, Rwanda,
Slide 35: DRC significant resource endowment
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification DRC significant resource endowment • DRC has the largest reserves of Coltan/tantalite (estimated at 60-80% of global reserves). Coltan is used in many electronic devices
Slide 36: Landmark Oil Pipeline deal signed by Uganda and Tanzania
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification Landmark Oil Pipeline deal signed by Uganda and Tanzania • Tripartite East African Crude Oil Pipeline project agreement (EACOP) signed off on 11 April 2021 between Uganda, Tanzania
Slide 37: Promising Tanzania Operating Environment
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Promising Tanzania Operating Environment • Tanzania president, Samia Suluhu Hassan’s, visit to Kenya in early May eased bilateral relations between the two trade partners
Slide 38: Branches, Agents, POS and ATM Network
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification BRANCHES 337 CAPITAL CITY 126 Branches in Kenya 190 Nairobi 52 Branche in Uganda 43 Kampala 21 Branches in S. sudan 5 Juba 4 Branches in Tanzania 14 Dar es Salaam 1 Branches in Rwa
Slide 39: Focus Area 4: Balance Sheet Efficiency, Optimization and Agility
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 4: Balance Sheet Efficiency, Optimization and Agility Kes Billion Funding Structure and Leverage Asset Mix Group Group +27% YoY +27% YoY 1,184.3 Growth Growth 40.5 1,184.3 17% 81.3 (3%) 2% (7%) Deposits 104.8 48% Net Loans (9
Slide 40: Focus Area 5: Digital business transaction numbers
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Innovation and Digitization Digital business: Enabling transition from fixed cost to 3rd party variable cost channels and self-service platforms Transaction numbers in millions Digital banking 937
Slide 41: Focus Area 5: Digital business transaction volumes
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Innovation and Digitization Digital business: Enabling transition from fixed cost to 3rd party variable cost channels and self-service platforms Volumes in Kes Billions 4,182.9 Digital banking 4,2
Slide 42: Focus Area 5: Digital business by channel
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Innovation and Digitization Digital business: Enabling transition from fixed cost to 3rd party variable cost channels and self-service platforms Transaction numbers in millions 850 Mobile and 840
Slide 43: Migrating to self-service channels
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Innovation and Digitization Migrating from Fixed and variable cost channels to self-service channels Self-service channels Variable cost channels Fixed cost channels Transaction numbers in million
Slide 44: Fintech Capabilities: Digital Business
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Digital Business 98% of our Transactions outside the branch % 88 86.9% Mobile and 86 internet banking 84 82.8% 76.4% 76.8% 76 57.6% 58 56 24 22 22.3% 12.5% 12.2% 12 10 9.1% 8
Slide 45: Fintech Capabilities: Self-Service Channels
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Self-Service Channels 69% of our Transactions Value outside the branch Branches now handling high value transactions for SME, corporates, wealth management & advisory service
Slide 46: Data Strategy, Decision Science and Analytics
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Data Strategy, Decision Science and Analytics 89% of our Loan Transactions via Mobile Channel Q3 2021 Transaction count Q3 2021 Transaction value Branch Lending Mobile Lendin
Slide 47: Fintech Capabilities: Lifestyle Support
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities Quarterly No of Transactions (Millions) YoY Transactions (Millions) 297.8 304.5 860.9 258.6 242.2 200.2 +60% 182.4 537.3 15
Slide 48: Promoting a Cashless Economy
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities – Promoting a Cashless Economy 74% of our customers using cashless payment capabilities rather than transacting in cash Q3
Slide 49: Payments Processing Capabilities
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities Cards (POS & ATMs) Agency E-Commerce 3,715.5 1,533.2 953.5 -2% +4% +25% +10% 2,961.6 1,388.0 +100% 3.0 29.6 29.2 +100% 58.2
Slide 50: Compressing Time and Geography
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation – Fintech Capabilities: Compressing Time and Geography Remittances Processing Kes Billion +22% 257.0 211.3 1.3 1.2 -9% Q3 2020 Q3 2021 Transaction Volumes Diaspora Commissions 50
Slide 51: Fintech Capabilities: Global Presence
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Global Presence FX Trading – Enabling Global Trade Kes Billion Kes Billion • The diaspora flows account for Fx Trading Income 28% of all client Fx volumes +37% 907.4 660.4 +5
Slide 52: Focus Area 6: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Risk mitigation via diversification Risk mitigation via diversification of market segments of economic sectors 100% 100% Manufacturing Building & construction Agriculture 3%
Slide 53: NPLs - Industry vs EGH Plc
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation NPL’s - Industry vs EGH Plc NPL per sector as at Q3 2021 Industry-Kenya 17.5% Equity Group * 14.5% 14.0% 13.9% 13.6% 14.1% 13.2% 12.6% 12.0% 12.7% 13.1% 10.9% 10.7% 10.4% 11.
Slide 54: Prudent approach to credit risk management
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Prudent approach to credit risk management Gross loans staging as at Q3 2021 Coverage and provisions as at Q3 2021 Kes Billion 56.2 Stage 3 Provisions 7.0 53.9 Credit Risk Gu
Slide 55: Overall asset quality is improving
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Overall asset quality is improving as evidenced by growth in performing book and reduction in COVID-19 accommodated and NPL portfolios. SMEs and Large Enterprises comprise t
Slide 56: Proactive Prudent Management
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation – Proactive Prudent Management COVID-19 accommodated loans (Kes 171 Bn); Kes 122B resumed repayment, additional Kes 39B expected to resume in 12 Months Moratorium expiry cont
Slide 57: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 7: Efficiency and Cost Optimization Kes Billion Staff Cost Trend Other Expenses Trend Group Group 13.5 25.2 10.8 18.8 19.7 9.3 17.3 17.3 7.8 8.3 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021
Slide 58: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 7: Efficiency and Cost Optimization Kes Billion Staff Cost Trend Other Expenses Trend Cost to Income Ratio Cost to Assets Ratio (Without Loan Loss Provision) (Without Loan Loss Provision) EBKL EBKL EBKL EBKL 12.2 12.1 12.9 10
Slide 59: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 7: Efficiency and Cost Optimization Kes Billion Staff Cost Trend Other Expenses Trend Cost to Income Ratio Cost to Assets Ratio (Without Loan Loss Provision) (Without Loan Loss Provision) EBRL EBRL EBRL EBRL 0.8 0.9 58.6% 0.7
Slide 60: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 7: Efficiency and Cost Optimization Group Net Interest Margin Yield on Interest Earning Assets % % 8.3 11.2 10.4 10.7 10.2 7.8 10.0 7.6 7.5 8.9 9.2 9.3 7.2 6.6 6.6 6.4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2020 2020 2020 2021 202
Slide 61: Focus Area 7: Efficient Financial Intermediation
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 7: Efficient Financial Intermediation 13.0 12.7% 12.6% 12.5 12.3% 12.4% 12.1% 11.9% 12.1% 12.1% 12.0% 12.0% 11.9% 11.8% 12.0 11.7% 11.6% 11.7% 11.3% 11.3% 11.1% Equity Yield on Loans 11.5 11.2% Equity Group’s lending 11.0% 10
Slide 62: Focus Area 8: Impact Investment
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 8: Impact Investment Impact & Social Investment Programs USD 513 M in Social Investment Programs Food & Agriculture Health 2% Energy & Environment 5% 5% Enterprise Development & Financial Inclusion 10% 44% Wings to Fly & Elim
Slide 63: Shared Prosperity Business Model and its Social Impact
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Focus Area 8: Impact Investment Shared Prosperity Business Model and its Social Impact 37,009 2.24M 40,000 37,009 35,000 2021 Wings to Fly Graduates 30,000 • 98% secondary school completion • 86% attained university entry grades Scholar
Slide 64: Collaborative approach to catalyse investment flows and capacity
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Collaborative approach has enabled Equity Group to catalyse and crowd-in investment flows and capacity building into the region 64
Slide 65: Business Validation
Business Validation
Slide 66: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Global Ratings and Accolades Equity Bank Credit Rating • National Rating: B2 2020 Oslo Business for Peace Award • Global Rating: Aa3.ke/KE-1 Dr. James Mwangi. • Rating Outlook: Negative Same as the sovereign rating • Position 39 globall
Slide 67: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Global Ratings and Accolades • Bank of the Year- Kenya 2019 • Bank of the Year - Uganda 2019 & 2021 • Bank of the Year - Rwanda 2020 & 2021 • Bank of the Year - DRC 2020 • Bank of the Year- South Sudan 2019, 2020 & 2021 • Best Regional
Slide 68: 2021 National Banking Awards and Accolades
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE 2021 National Banking Awards and Accolades 1. Best Overall Bank – 10 years running 2. Best Bank in Tier 1 – 7 years running 3. Best Bank in Sustainable CSR – 5 years running Brand 4. Best Bank with the Lowest Charge for Individuals – 5
Slide 69: Market Validation
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Market Validation KES Billion Market Capitalization as at 29th October 2021 Mkt Cap as at 29th October 2021 1,119.7 Total Assets (H1 2021) PAT (H1 2021) 1,022.2 573.0 542.6 429.6 398.2 345.7 320.0 305.5 187.6 141.2 73.3 55.4 49.1 39.7 3
Slide 70: Intermediation and Financial Performance
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Intermediation and Financial Performance 70
Slide 71: Balance Sheet
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Balance Sheet KES Billion Q3 2020 Q3 2021 Growth Assets Cash & Cash Equivalents 177.5 182.7 3% Government Securities 222.8 361.3 62% Net Loans 453.9 559.0 23% Other Assets 79.7 81.3 2% Total Assets 933.9 1,184.3 27% Liabilities & Capita
Slide 72: Income Statement
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Income Statement KES Billion Q3 2020 Q3 2021 Growth Interest Income 52.1 67.0 29% Interest Expense 12.8 18.5 45% Net Interest Income 39.3 48.5 23% Non-Funded Income 24.3 31.4 29% Total Income 63.6 79.9 25% Loan Loss Provision 14.3 4.6 -
Slide 73: RoAE and RoAA Trend
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE RoAE and RoAA Trend 29.7% RoAE 24.0% 18.4% 16.9% Q3 2020 Q3 2021 EBKL Group RoAA 3.8% 3.2% Q3 2020 2.6% 2.5% Q3 2021 EBKL Group 73
Slide 74: Financial Ratios
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Financial Ratios EBKL EBKL Group Group Q3 2020 Q3 2021 Q3 2020 Q3 2021 Profitability Yield on Loans 11.2% 11.4% 12.3% 11.8% Yield on Government Securities 10.5% 9.7% 10.4% 9.6% Yield on Interest Earning Assets 10.6% 9.5% 10.2% 9.3% Cost
Slide 75: 2021 Outlook - Group
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE 2021 Outlook - Group Revised 2021 2021 Outlook Q3 2021 Actual Outlook Loan Growth 25% - 30% 20% - 25% 23% Deposit Growth 20% - 25% 20% - 25% 27% Net Interest Margin 7.0% - 8.0% 7.0% - 8.0% 6.6% Non Funded Income Mix 38% - 43% 40% - 43%
Slide 76: Macroeconomic Environment - Kenya
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Macroeconomic Environment - Kenya 8 5.7 6.3 6.0 6.3 5.6 5.3 5.1 5.5 6 4.9 4 2 Quarterly GDP Growth – The economy is 0 -1.1 bouncing back albeit slowly, as domestic and -2 -4 foreign demand eases off the pandemic’s -6 -5.7 damage, in lin
Slide 77: Macroeconomic Environment - Kenya (continued)
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Macroeconomic Environment - Kenya (continued) 7.00 6.00 5.00 Interbank Rates – Spike in rates seen in 4.00 September on account of aggressive 3.00 government securities purchases, as well as payment of the September installment tax. 2.0
Slide 78: Macroeconomic Environment - Kenya (continued)
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Macroeconomic Environment - Kenya (continued) 7.50 7.00 6.50 6.00 5.50 5.00 Inflation – With commodity (seed oil, wheat and 4.50 maize) and pump prices on the rise, inflation is 4.00 3.50 expected to go higher on account of increased 3.
Slide 79: Projected Regional GDP Growth
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Projected Regional GDP Growth Forecasts as at October 2021 7.0 6.5 6.0 5.6 5.6 5.3 5.1 5.1 5.1 4.9 4.7 4.0 Kenya Uganda Tanzania Rwanda DRC S. Sudan 2021 2022 Source: IMF & World bank. 79
Slide 80: Regional Currencies Depreciation against USD
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Regional Currencies Depreciation against USD 3,750 3,715.0 3,700 3,660.1 3,660.0 3,650 3,600 3,560.0 3,550.0 3,550 USD/UGX -0.28% 2,320.0 2,321.5 2,314.0 2,321.5 2,310.0 USD/TZS -0.50% 1,994.6 1,980.7 2,000 1,964.7 1,976.9 1,954.5 USD/C
Slide 81: Regional Outlook
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Regional Outlook Uganda • Economic growth is projected to return this year and accelerate in 2022, recovering some of the ground lost in 2020, helped by strengthening domestic demand and firming exports. However, the slow vaccine rollou
Slide 82: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Regional Outlook (continued) Rwanda • Rwanda’s economy continues to recover from the impacts of the Covid-19 pandemic. The recovery is being supported by sizeable monetary and fiscal policy measures, as well as the ease of the containme
Slide 83: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Regional Outlook (continued) South Sudan • The International Monetary Fund granted South Sudan USD 334 Million under its general allocation of Special Drawing Rights (SDR). The finance secured from the IMF address budget support and the
Slide 84: Case Studies
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Case Studies The Equity business model is a leading case study in many business schools around the world. In addition, many business schools, organizations and institutions regularly visit the Group to learn firsthand about the brand, i
Slide 85: Notes
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Notes 85
Slide 86: Notes
Equity Group Holdings Plc Investor Briefing Q3 2021 PERFORMANCE Notes 86
Slide 87: Notes
Notes
Slide 88: Equity Centre contact details
Equity Centre P.O. Box 75104–00200, Nairobi. Equity Centre,Fax: Tel: 0763063000, 9th Floor, UpperHill + 254-020-2737276, P.O.Box 75104, info@equitygroupholdings.com, Nairobi. www.equitygroupholdings.com Tel: 0763 000 @keEquityBank 000 keEquityBank info@equitygroupholdings.com, www.equitygroupholding
Equity Group Holdings — Q3 2021 Earnings Presentation on 6ix