Slide 1: FY 2024 Investor Presentation
FY 2024 Investor Presentation Nairobi, 12 March 2025 For People. For Better. Regulatedby the Central Bonk of Kenya
Slide 2: We are
We are >Business Update Financial Performance Appendices For People. For Better.
Slide 3: Well diversified business model
FY 2024 Investor Presentation Well diversified business model. That matches the meaningful role we play in the region and supports our aspiration to do more. (Res BankKenya} PO | — Ethiopia Rep Office 100% National Bank of Kenya —""———— 100% 100% KCB Group Pic 100% Brussels Rep Office KCB BANK Seal
Slide 4: Largest footprint in the region
FY 2024 Investor Presentation | KCB | Largest footprint in the region; opening doors of opportunity for millions of people. Branches down by 61 YoY on post-merger channels optimization in Rwanda. tment ocr 1.3M Agents and Merchants Doors of ’ : Opportunity since 1896 [Bec Kenya | Tanzania | South Su
Slide 5: Sound corporate governance structure that safeguards value
Sound corporate governance structure that safeguards value. Clearly defined governance structure which provides for oversight, delegation & clear lines of authority. FY 2024 Investor Presentation KCB Accountable to shareholders ( Shareholders >} | } For People. For Better. (a BOARD OF DIRECTORS 11 D
Slide 6: Our Group Executive Committee
FY 2024 Investor Presentation Our Group Executive Committee. Ensures KCB remains well positioned & responsive to opportunities across the region for growth. la da dh & Paul Russo, EBS Lawrence Kimathi Annastacia Kimtai Cosmas Kimario Japheth Achola Bonnie Okumu Group Chief Executive Group Finance Ma
Slide 7: Subsidiary Managing Directors
FY 2024 Investor Presentation Subsidiary Managing Directors. Ensure KCB remains well positioned & responsive to opportunities across the region for growth. hoe ida Annastacia Kimtai Oliver Meisenberg George Odhiambo Patience Mutesi Cosmas Kimario Edgar Byamah Managing Director, Managing Director, Ma
Slide 8: Operating environment: interest rates and inflation
FY 2024 Investor Presentation KCB Operating environment. Interest rates inching down as inflation remains under control in most markets. Central Bank rates and cost of funding Average annual inflation rates DRC Kenya South = Burundi. Uganda Rwanda Tanzania South Burundi DRC Kenya Uganda Tanzania Rwa
Slide 9: Operating environment: currency movements
FY 2024 Investor Presentation Operating environment. Kenya, Tanzania and Uganda shillings strengthened against the US dollar in 2024. Movement of local currencies vs USD in 2024 Strengthening of the aR South Kenya shilling on the back be improved supply Kenya = Tanzania Uganda — Burundi DRC Rwanda S
Slide 10: Operating environment: Kenya current account
Operating environment. Kenya’s current account deficit stable at 3.7% of GDP in 2024. FY 2024 Investor Presentation + Kenya current account balance (percent of GDP) 2021 2022 2023 2024est. | 2025proj. 2026 proj. + + + -3.7% -3.89 -4.0% 3.8% -4.0% -5.1% -5.1% For People. For Better. Import of goods i
Slide 11: Our 2024 - 2026 strategy: Transforming Today Together
FY 2024 Investor Presentation Our 2024 - 2026 strategy: Transforming Today Together. Hinged on putting customers first and delivering sustainable returns for our shareholders. 11 PILLARS ENABLERS KCB Transforming GROUP Today STRATEGY Together For People. For Better. Customer-Centered aan ® Digital O
Slide 12: Strategic pillar 1: Customer-centered value propositions
FY 2024 Investor Presentation Strategic pillar 1: Customer-centered value propositions. We have continued to embed customer obsession & rollout strong customer value propositions. Revamping youth proposition For People. For Better. FLME continues to bridge barriers to financing - Offers more unsecur
Slide 13: Strategic pillar 2: Leverage Group capabilities for efficient scale
FY 2024 Investor Presentation Strategic pillar 2: Leverage Group capabilities for efficient scale. Supported by technology evolution through building future-ready capabilities. Channel optimization & Omni-channel platform for mobile & iBank in BPR 52 new robots deployed to scale automation and drive
Slide 14: CASE IN POINT: Trust Merchant Bank
FY 2024 Investor Presentation CASE IN POINT: Trust Merchant Bank. Commenced core banking upgrade and sustained balance sheet optimization. Selected balance sheet and income lines (KshB) Selected key ratios jw 8 xs 41.2% TMB’s net loans to deposits ratio, up from 38.4% in 2023 on increased lending to
Slide 15: CASE IN POINT: BPR Bank Rwanda
FY 2024 Investor Presentation CASE IN POINT: BPR Bank Rwanda. Completed core banking upgrade and made progress in channels optimization. Selected balance sheet and income lines (KshB) Selected key ratios (¢] 3.9% 22.4% mz Number of branches and 10.0% — outlets down by 70 to 76 in 915 — 2024. : : i 4
Slide 16: CASE IN POINT: KCB Bank Tanzania
FY 2024 Investor Presentation CASE IN POINT: KCB Bank Tanzania. Enhanced customer value propositions driving business growth. Selected balance sheet and income li hB) Selected key ratios Improved MSME, SAHL and digital value propositions and expanded retail footprint with the opening of an additiona
Slide 17: Strategic pillar 3: Digital leadership
FY 2024 Investor Presentation Strategic pillar 3: Digital leadership. Launched a new unified Group mobile banking platform, delivering an all-in-one bespoke digital banking experience based on innovative technologies and mini app programs. Number of non-branch channel transactions in 2024 (M) Value
Slide 18: Strategic pillar 4: Optimize data and analytics
Strategic pillar 4: Optimize data and analytics. FY 2024 Investor Presentation To drive customer obsession, enhance our solutions and increase uptake of products. Driving deposit mobilization through analysis of key insights For People. For Better. Lending Ksh 1.1 billion per day on mobile. Improved
Slide 19: A green and blue logo Description automatically generated
A green and blue logo Description automatically generated
Slide 20: We champion the creation of shared value
FY 2024 Investor Presentation We champion the creation of shared value. Our Foundation programmes deliver social and economic impact in our communities. Youth Employment Mifugo Ni Mali Education «Creating employment opportunities -To commercialize livestock Serves students from disadvantaged for you
Slide 21: We have consistently ranked among the leading financial institutions in the continent
FY 2024 Investor Presentation We have consistently ranked among the leading financial institutions in the continent. KCB Group is ranked at position 19 in Africa, on The Banker’s Top 1,000 World Banks. Our subsidiaries won The Banker awards for Finance Derivative Best Banking Group 2024 Bank of the
Slide 22: Business Update
Business Update > Financial Performance Appendices For People. For Better.
Slide 23: Ksh 2.0 trillion balance sheet
FY 2024 Investor Presentation Ksh 2.0 trillion balance sheet; growth netted down by appreciation of reporting currency. Largest balance sheet in the region enabling businesses and facilitating trade. Funding Utilization v10% Decline in total assets. Largely impacted by the appreciation of Kenya shil
Slide 24: Contribution from regional businesses to total assets
FY 2024 Investor Presentation Steady contribution from regional businesses to the Group’s total assets. Robust asset growth in Uganda offset impact of Ksh appreciation. Total assets distribution YoY Change 34.9% mw KCB Kenya (10%) Proportion of assets in subsidiaries outside of = TMB (8%) KCB Bank K
Slide 25: Contribution to net loans from regional subsidiaries
FY 2024 Investor Presentation Contribution to net loans from regional subsidiaries dropped marginally. Impacted by appreciation of Ksh and a steady loan book in KCB Kenya. Net loans and advances distribution YoY Change 30.8% akcBkene Proportion of net loans and advances in subsidiaries = TMB (5%) ou
Slide 26: Group NPL ratio inched up marginally
FY 2024 Investor Presentation Group NPL ratio inched up marginally by 7Obps QoQ. Stock up Ksh 17 billion YoY on downgrades mainly in real estate, agriculture and construction sectors. Group NPL stock and ratio t+) t+) 14% - 16% Target Group NPL ratio by 8.4% end of 2025. Various NPL ek 208.3 225.7 r
Slide 27: Increase in NPL stock mainly driven by Kenya businesses
FY 2024 Investor Presentation Increase in NPL stock mainly driven by Kenya businesses. Focus remains on NPL resolution especially in KCB Bank Kenya. Movement in NPL stock per subsidiary (Ksh million) OGena—2;181+-— 208,298 9 72 242 2023 KCB Bank NBK TB Kenya NPL ratios per subsidiary KCB Bank KCBBan
Slide 28: KCB's largest sector has single digit NPL ratio
FY 2024 Investor Presentation KCB’s largest sector has single digit NPL ratio. The major strained sectors are manufacturing, real estate & construction. Top 20 NPL names account for 56% of NPL stock. Contribution to Grossloans Sector NPL ratio Contribution to NPL stock Mining and Quarrying 0.0% MM 1
Slide 29: Prudent provisioning continue to build coverage
FY 2024 Investor Presentation Prudent provisioning continue to build coverage towards a 70% target. Taking measures to maintain adequate coverage both from provisions and securities held. KCB Group Coverage ratios The non-performing loan book has full coverage from IFRS Coverage Regulatory Coverage
Slide 30: Customer deposits receded by 18% to Ksh 1.4 trillion
FY 2024 Investor Presentation Customer deposits receded by 18% to Ksh 1.4 trillion. Driven by appreciation of Ksh, ceding market share for G2G and de-consolidation of NBK. Evolution of customer deposits (Ksh B) Deposits by type 47.6% mn Liquidity ratio in 2024. The ratio has held steady at this leve
Slide 31: Regional contribution to total customer deposits
FY 2024 Investor Presentation Steady contribution from regional businesses to total customer deposits. Impact of Ksh appreciation moderated by growth in Uganda. Customer deposits distribution YoY Change 34.3% m KCB Kenya (13%) Proportion of customer an 4 Paar 12% deposits in subsidiaries = TMB (12%)
Slide 32: We delivered a strong growth in revenue
FY 2024 Investor Presentation KCB We delivered a strong growth in revenue. From new business lines, deepening of digital channels and innovative customer value propositions. Interest expense Deposits, 55.4 A33% A24% Increase in revenue driven by interest income from customer loans, From loans, 153.6
Slide 33: All our subsidiaries registered strong growth in revenues
FY 2024 Investor Presentation All our subsidiaries registered strong growth in revenues. Revenue from subsidiaries outside of KCB Bank Kenya grew by 16% to Ksh. 73.2B. KCB 38.2% Share of revenue from subsidiaries outside of KCB Bank Kenya, compared to 39.2% in 2023. 89% revenue growth at KCB Investm
Slide 34: Net interest margin up 110bps to 7.6%
FY 2024 Investor Presentation Net interest margin up 110bps to 7.6% Driven by improved asset yield which netted off the rise in cost of funds. Loans and government securities Yields vs cost of funds Interest rates trend 12.1% Assets yield Dec23. Dec 24 SOFR 5.0% 7.6% Kenya Interbank 11.1% 91 day T-B
Slide 35: Improved efficiencies resulted in positive jaws
FY 2024 Investor Presentation Improved efficiencies resulted in positive jaws. Growth in operating costs driven by customer acquisition activities and investments in technology. ° 77 A9.0O % 17 0.4 . . 50.3% Growth in operating inns, expenses excluding loss on monetary assets. Atl1 8% 93.0 23.1%¢———
Slide 36: Group PAT increased by 65% to Ksh 61.8 billion
FY 2024 Investor Presentation KCB Group PAT increased by 65% to Ksh 61.8 billion in 2024. Supported by growth in revenue and improved efficiencies across all businesses. A 2 8 % PAT Evolution Growth in net interest income. Driven by increase in earning assets and yield which cushioned the Group agai
Slide 37: Subsidiaries outside of KCB Kenya contributed 30% of Group net profit
FY 2024 Investor Presentation Subsidiaries outside of KCB Kenya contributed 30% of the Group net profit. PAT from subsidiaries outside of KCB Bank Kenya grew by 42% to Ksh. 19.6B. ° PAT contribution per subsidiary YoY Change 30.3 % m KCB Kenya 77% Share of PAT from subsidiaries outside of KCB a TMB
Slide 38: Ksh 9.6 billion in total dividend in 2024
FY 2024 Investor Presentation KCB Ksh 9.6 billion in total dividend in 2024 on strong profitability and solid capital buffers. We anticipate incremental growth in shareholder returns on diligent strategy execution. The Board of Directors recommend a final dividend Dividend per share (Ksh.) of Ksh 1.
Slide 39: Adequate capital to drive growth of risk weighted assets
FY 2024 Investor Presentation Adequate capital to drive growth of risk weighted assets. KCB Bank Kenya core capital buffers above our internal minimum at 460bps. Subsidiaries core capital ratio 23.3% Subsidiaries total capital ratio 19.8% 19.9% ; 19.8% 11.9% 15.0% |25% 18.4% 14.3% 16.1% 16.9% 17.6%
Slide 40: Sustained improvement in Return on Equity
Sustained improvement in Return on Equity across our businesses. 680 bps improvement in Group RoE on improved profitability. FY 2024 Investor Presentation KCB Return on Equity m 2023 m2024 t X wo q 3 N nv & Xs 29.4% 24.6% t 23.1% 27.6% ° Group KC INBK KCB KCB Burundi BPR KCB KCB Kenya KCBIB TMB KCBA
Slide 41: Profitability and efficiency ratios in line with guidance
Profitability and efficiency ratios in line with guidance. High cost of funding impacted net interest margins. Resolving NPLs remains a key focus area. FY 2024 Investor Presentation KCB Increase in cost of funds driven by rise in interest expense on customer deposits aggravated by increase in costs
Slide 42: Appendices
Business Update Financial Performance > Appendices For People. For Better.
Slide 43: Overview of Key Financial Ratios
FY 2024 Investor Presentation FY 2024 Overview of Key Financial Ratios KCB GROUP FY 23 H124 KCB Kenya KCB Group Return on average equity 27.6% 24.6% Cost to income 39.6% 45.4% IGross NPL to gross loans 21.8% 19.2% NPL regulatory coverage 65.8% 64.1% Debt to equity 29.9% 25.2% Non funded income (NFI)
Slide 44: Summary Statement of Financial Position as at December 24
Summary Statement of Financial Position as at 31 December 2024 KCB Group Ksh Billion 2023 2024 Cash and balances with central bank 77.0 64.8 Balances with other institutions 429.5 218.0 Investments in Govt & other securities 397.2 408.9 Net loans and advances 1,095.9 990.4 Fixed assets 46.1 38.9 Oth
Slide 45: Summary Statement of Profit or Loss for the Year Ended December 2024
FY 2024 Investor Presentation Summary Statement of Profit or Loss for the Year Ended 31 December 2024 KCB Group KCB Bank Kenya Ksh Billion 2023 2024 2023 2024 Interest income 168.2 213.4 109.8 145.6 Interest expense (60.8) (76.1) (45.0) (56.8) Net interest income 107.3 137.3 64.8 88.9 Foreign exchan
Slide 46: Key Operating Data
FY 2024 Investor Presentation FY 2023 Q2 2024 Q3 2024 Key Operating Data KCB Footprint Branches Number of customers (million) ATMs! Agency outlets? POS/Merchant outlets? Vooma merchants outlets (thousands) Total number of employees KCB Share Information Earnings per share (Ksh) Dividend per share (K
Slide 47: KCB Regional Footprint and Key Macros as at December 24
FY 2024 Investor Presentation KCB Regional Footprint and Key Macros as at 31 December 2024 Kenya! Tanzania South Sudan Rwanda Uganda Burundi DR Congo KCB Footprint Branches 297 7 16 76 13 8 109 Number of customers (thousands) 30,110 65 186 449 123 65 2,398 ATMs 569 21 10 59 15 8 102 Agency outlets 2
Slide 48: A green and blue logo Description automatically generated
A green and blue logo Description automatically generated
Slide 49: Registered office and company information
Registeredoffice KCBGroupPic Kencom HouseM oi Avenue PO Box48400- 00100 ' Nairobi,Kenya : Contactinformation ' KCB Investor Relations : investorrelations@kcber m : www.kcbgroup.com For People. For Better. FY 2024 Investor Presentation KCB Company information Stocklisting / Auditors Primary | Pricewa
Slide 50: investorrelations@kcbgroup.com
investorrelations@kcbgroup.com