Slide 1: FY 2024 Investor Pack
1 FY 2024 Investor Pack March 2025
Slide 2: Contents
22 CONTENTS WHO WE ARE < OPERATING ENVIRONMENT < UPDATE ON STRATEGY < FINANCIAL PERFORMANCE FY 2024<
Slide 3: FY 2024 Key Messages
PG 3 FY 2024 KEY MESSAGES 1 2 3 Solid fundamentals across Well controlled risks We have delivered on our our business 2020-2024 strategic ambitions ✓ Delivered a resilient ROAE of 21.7%, up ✓ We are delivering a better-quality loan ✓ Our investment in brand recognition is from 5% in 2020 book compar
Slide 4: Contents
44 CONTENTS WHO WE ARE < OPERATING ENVIRONMENT < UPDATE ON STRATEGY < FINANCIAL PERFORMANCE FY 2024<
Slide 5: Our Group Structure
PG 5 WHO WE ARE Our Group Structure : We have expanded beyond our banking roots to providing non- banking services to our customers NCBA GROUP PLC BANKING SUBSIDIARIES NON BANKING SUBSIDIARIES NCBA NCBA NCBA NCBA NCBA NCBA NCBA BANK BANK BANK BANK INSURANCE NCBA LOOP DFS BANCASSURANCE INVESTMENT KEN
Slide 6: The NCBA Way
PG 6 WHO WE ARE Welcome to the bank that says Go For It, Welcome to the bank that banks on your ambition, Welcome to NCBA The NCBA Way Our Purpose Our Values • Driven To be the Financial • Open Partner that Inspires • Responsive your Growth • Trusted Who We Are and What Guides us Our Customer Promis
Slide 7: Our footprint across the region
PG 7 WHO WE ARE Our footprint demonstrates a diversified group and a unique financial services partner across the region UGANDA Banking Business 5 Branches Customers KES KES KES • 7.8K Core Bank • 12.1Mn Digital 110Bn 502Bn 331Bn Capital Deposits Lending +3,700 Staff ~USD 851Mn ~USD 4Bn ~USD 3Bn KES
Slide 8: Over 40 notable awards
PG 8 WHO WE ARE We received over 40 notable awards with select recognitions for excellence in integrated reporting, renowned customer experience, digital banking and sustainability Institute of 2024 Financial Banking on 2024 Economic Customer Africa Bank 4.0 Empowerment Reporting (FiRe) Women 2024 E
Slide 9: Exceptional leadership team
PG 9 WHO WE ARE We are led by an exceptional team which has demonstrated resilience and agility in responding to market dynamics and pursuing growth with an average tenure of 10yrs with the Group
Slide 10: Contents
10 10 CONTENTS WHO WE ARE < OPERATING ENVIRONMENT < UPDATE ON STRATEGY < FINANCIAL PERFORMANCE FY 2024 <
Slide 11: Global economic outlook
PG 11 OUR OPERATING ENVIRONMENT Global economic growth is forecast to come in slightly higher at 3.3% in 2025 from 3.2% in 2024 on the back of policy easing in advanced and emerging markets. Slow decline in USD interest rates likely to Global growth is projected to Global inflation is projected to f
Slide 12: Regional growth and currency outlook
PG 12 OUR OPERATING ENVIRONMENT Growth and currency outlook divergent across the region; with growth uncertainty in Kenya and Rwanda, while currency depreciation is higher in Tanzania. KENYA UGANDA RWANDA TANZANIA • Economic activity subdued across most • Business conditions remain favorable. • Outl
Slide 13: Contents
13 CONTENTS WHO WE ARE < OPERATING ENVIRONMENT < UPDATE ON STRATEGY < FINANCIAL PERFORMANCE FY 2024 <
Slide 14: Our strategy continues to deliver
PG 14 OUR STRATEGY Our strategy continues to deliver with all our metrics in line with target, with our Group ROAE registering at 22% Our Measures of Success Key Outcomes 2020 2024 PAT (KES) Become a Distinguished Brand 22 46% Known For Customer Brand 30% Consideration Experience BN 2020: 5Bn 119 Br
Slide 15: Brand investments driving consideration and customer growth
PG 15 OUR STRATEGY Our investments in the NCBA brand is driving market consideration and customer growth Key investments made… …to drive our Brand consideration … and our Brand Power 2 Brand Consideration* Brand Power Index + Thematic Campaigns Numbers That Matter 7.4 Twende Mbele 6.5 46% 5.8 +60 BU
Slide 16: Significant growth in retail business
PG 16 OUR STRATEGY Significant growth in our retail business particularly on customer acquisitions , we now look to deepen these customer relationships for greater shared value Our increasing footprint continues to support our core bank … with 30 new branches opened, 15 of these have broken even . A
Slide 17: Strengthening our corporate position
PG 17 OUR STRATEGY Market dynamics notwithstanding, we continue to strengthen our dominant Corporate position through enhanced solutions including our upgraded Corporate Internet Banking platform Enablers Deposits (KES Bns) Gross Loans (KES Bns) FY 24: Impacted by aggressive deposit repricing and FX
Slide 18: Leadership in Asset Finance
PG 18 OUR STRATEGY We continue to reinforce our leadership in Asset Finance by leveraging on our strategic partnerships and being first to market with innovative solutions Enablers Market Dominance Controlled Risks Market Share (%) Gross Lending (KES Bns) Cost of Risk (%) 15 Sec Conditional Approval
Slide 19: Investing in technology and cyber security
PG 19 OUR STRATEGY We continue to invest in our capability in technology to support customer experience and cyber security Our Technology Investments * (USD Mns) Outcomes Modernize our Infrastructure Deliver an Improved Customer Experience Enhance our Cyber Security Protection 36.6 System Uptime 99.
Slide 20: Strong adoption of mobile banking app
PG 20 OUR STRATEGY Capitalising on our digital banking heritage we have witnessed strong adoption on our mobile banking app in Kenya resulting in increasing active users and a growing on app loan book… Benefits accruing from targeted mobile loans NCBA Now Utilization campaigns aimed at driving uptak
Slide 21: KES 1 trillion in digital loans disbursed
PG 21 OUR STRATEGY …In 2024, we've disbursed KES 1 trillion in digital loans collaborating with our partners, advancing financial inclusion and diversifying our Sub-Saharan Africa customer base Evolution of digital disbursements (KES Bns) Group Fuliza (KE) M-Shwari (KE) Loop B2C (KE) 906.4 2.5 1,049
Slide 22: First bank in Africa to launch SDID report
PG 22 OUR STRATEGY We became the first bank in Africa to launch its Sustainable Development Impact Disclosure report, a new approach to sustainability reporting under the Impact Disclosure Guidance released late last year ✓ 427K+ Cumulative trees Planted (344k+ in 2023) 1. Minimize Our Direct Impact
Slide 23: Stable team with future-ready digital skills
PG 23 OUR STRATEGY With a stable team of colleagues we are boosting productivity by equipping all our employees with future-ready digital skills Employee turnover remains relatively stable, with headcount Our staff diversity mix is 51:49 male to female, with 42% of our increasing to support organiza
Slide 24: Five priority areas for 2025
PG 24 OUR STRATEGY We have identified five priority areas to drive our key transformational goal this year of embedding customer obsession Transformational To Embed Customer Obsession Goal 1 2 3 4 5 Be the primary Embed a Culture Reclaim Corporate Foster a Customer partner for SME Embed Digital at t
Slide 25: Contents
25 22 CONTENTS WHO WE ARE < OPERATING ENVIRONMENT < UPDATE ON STRATEGY < FINANCIAL PERFORMANCE FY 2024 <
Slide 26: NCBA Group Financial Performance: PBT by subsidiary
PG 26 NCBA GROUP FINANCIAL PERFORMANCE Our diversified business model continues to demonstrate strength, the decline in core banking broadly offset by strong growth in non banking and digital banking subsidiaries PBT Amount in KES Mns PBT Amount in KES Mns Core Banking Subsidiaries Digital Banking F
Slide 27: Banking subsidiaries contribution
PG 27 NCBA GROUP FINANCIAL PERFORMANCE Our focus on enhancing the contribution from subsidiaries has demonstrated success with our Group deriving 18% of top line outside of Kenya bank REVENUE % CONTRIBUTION EFFICIENCY RETURNS* TOTAL INCOME COST TO INCOME RATIO RETURN ON AVERAGE EQUITY NCBAK KES 51.2
Slide 28: Strong fundamentals and resilient asset base
PG 28 NCBA GROUP FINANCIAL PERFORMANCE Our Group continues to demonstrate strong fundamentals with a resilient asset base which is delivering stability in our earnings Amounts in KES Bns Balance Sheet Income Statement ROAA Gross Loans NPL ratio Total NFI/Total Total Assets Customer Deposits LDR PBT
Slide 29: Regional Business performance
PG 29 NCBA GROUP FINANCIAL PERFORMANCE Over the strategy cycle, the Regional Business performance has followed a sustainable growth trajectory, establishing a strong foundation as a future growth engine Regional Income (KES Bns) % Share to Group Regional PBT (KES Bns) % Share to Group 12.9% 14% 14%
Slide 30: AI credit scoring improving digital credit metrics
PG 30 NCBA GROUP FINANCIAL PERFORMANCE By leveraging AI capabilities in credit scoring, we have significantly improved our digital credit metrics and delivering strong PBT outcomes. This advancement positions us to achieve scalable growth in the future Total Disbursements (KES M) Digital Cost of Ris
Slide 31: Reoriented funding mix, CASA deposit base
PG 31 NCBA GROUP FINANCIAL PERFORMANCE We have successfully reoriented our funding mix to strengthen our CASA deposit base Amounts in KES Bns Drop in deposits reflecting reorientation to higher CASA …CASA is now 52% of our deposit mix and a more optimal & better priced funding mix Customer Deposits
Slide 32: Protecting margins and net interest income
PG 32 NCBA GROUP FINANCIAL PERFORMANCE On the back of interest rate pressures, we focused on protecting our bottom line by tightening deposit costs and improving pricing across all lending ensuring margin protection Our efforts on protecting our margins enabled us to largely … delivering resilient n
Slide 33: Non funded income streams
PG 33 NCBA GROUP FINANCIAL PERFORMANCE Our non funded income streams received a healthy boost from fees derived from varied solutions we offer our clients Y-o-Y we have seen a drop in our FCY deposit book due …we nonetheless continue see solid performance in fees derived to translation effects given
Slide 34: Improving loan quality
PG 34 NCBA GROUP FINANCIAL PERFORMANCE Our credit outcomes continue to show improvement in loan quality albeit on the back of softness in lending y-o-y… We experienced softness in lending given mixed economic …however we continue to deliver a better quality loan book conditions & currency revaluatio
Slide 35: Provisioning and coverage
PG 35 NCBA GROUP FINANCIAL PERFORMANCE …with adequate provisioning and coverage across loan classification buckets… Stage 1 Stage 2 Stage 3 1.1% 17.4% 59.2% 0.8% 56.7% Coverage 0.8% 10.7% Ratio (%) 12.1% 53.3% 290 252 42 43 38 39 37 231 37 Gross Loans & Advances (KES Bns) FY 22 FY 23 FY 24 FY 22 FY
Slide 36: Strategic investments and efficiency metrics
PG 36 NCBA GROUP FINANCIAL PERFORMANCE Our strategic investments, notably in our distribution network & digital platforms have put pressure on our near-term efficiency metrics. We are focused on a 45% CIR in the medium term …notwithstanding the increase in costs, we believe we are at OPEX Increased
Slide 37: Capital adequacy across markets
PG 37 NCBA GROUP FINANCIAL PERFORMANCE The Group efforts on reorienting the balance sheet to protect its bottom line is delivering capital across our core markets providing ample room to invest for growth…. Total Capital/RWA across our Markets Minimum Buffer FY 24 FY 23 Requirements 6.7% 21.2% 18.0%
Slide 38: Returns and cash dividends to shareholders
PG 38 NCBA GROUP FINANCIAL PERFORMANCE …and delivering the desired return outcomes for a Tier 1 Bank and consistent cash returns to our >27,000 shareholders over the last 3 years We are delivering on post merger promises on ROE 79.4 64.8 64.2 24.1% 21.7% PAT (Mns) 21,866 17.2% Cash Dividends (Mns) 2
Slide 39: FY 2025 Guidance
PG 39 FY 2024 GUIDANCE We expect a continued and strong underlying growth trajectory across the following metrics Metric FY 25 Guidance Commentary • Create value for our shareholders and re-invest Return on Equity >22% internal capital generated to foster growth • Unlock more capital allocation to n
Slide 40: Contents
40 34 CONTENTS WHO WE ARE < OPERATING ENVIRONMENT < UPDATE ON STRATEGY < FINANCIAL PERFORMANCE FY 2024 <
Slide 41: FY 2024 Key Messages
PG 41 FY 2024 KEY MESSAGES 1 2 3 Solid fundamentals across Well controlled risks We have delivered on our our business 2020-2024 strategic ambitions ✓ Delivered a resilient ROAE of 21.7%, up ✓ We are delivering a better-quality loan ✓ Our investment in brand recognition is from 5% in 2020 book compa
Slide 42: Disclaimer
Disclaimer: These results are provided for informational purposes only and should not be construed as an offer to buy or sell any securities or financial instruments. With regards to any market or other third-party data included in this release, NCBA Group Plc (“the Group”) can provide no assurances
Slide 43: 43
43 36
Slide 44: Statement of Profit & Loss
PG 44 APPENDIX I Statement of Profit & Loss Amounts in KES Millions NCBA Bank Kenya NCBA Group Consolidated FY 23 FY 24 ∆% FY 23 FY 24 ∆% Interest Income 57,863 67,754 17% 65,224 75,687 16% Interest Expenses (27,932) (37,773) 35% (30,623) (41,173) 34% Net Interest Income 29,931 29,981 0% 34,602 34,5
Slide 45: Statement of Financial Position
PG 45 APPENDIX II Statement of Financial Position Amounts in KES Millions NCBA Bank Kenya NCBA Group Consolidated FY 23 FY 24 ∆% FY 23 FY 24 ∆% Assets Net Loans and Advances 296,400 269,146 (9%) 337,018 302,078 (10%) Investments 214,325 189,489 (11%) 239,781 216,993 (10%) Cash and Balances with Bank
Slide 46: Loan book well diversified
PG 46 APPENDIX III Our loan book is well diversified across product, currency and industry 2024 Loan Book Loan Book by Sector Loan Book by Segment Loan Book by Currency Manufacturing 24% Personal 20% SME Trade 16% 13% FCY, Transport 14% 28% Mining & Quarrying 8% Consumer 27% Corporate Financial Serv