Equity Group Holdings Limited · NSEKE:EQTY
Equity — H1 2021 Earnings Presentation
85 slides from Equity's earnings presentation, August 2021
Slide 1: Investor Briefing H1 2021 Performance
INVESTOR BRIEFING H1 2021 PERFORMANCE
Slide 2: Equity Group Holdings Plc Investor Briefing
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE 2
Slide 3: Equity Group's Philosophies
Equity Group Holdings Plc Investor Briefing H1 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 H1 2021 PERFORMANCE Governance and Organizational Structure 4
Slide 5: Governance and Organizational Structure
Equity Group Holdings Plc Investor Briefing H1 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 H1 2021 PERFORMANCE Governance and Organizational Structure (continued) Breadth and Depth of the Management Team EGH Strategy Alignment of strategy and execution reflected by close interaction between the CEO’s office and Corporate Office Breadth and diver
Slide 7: Group Executive Management
Equity Group Holdings Plc Investor Briefing H1 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 H1 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 H1 2021 PERFORMANCE Group Board of Directors Prof. Isaac Macharia Dr. James Mwangi Mary Wamae Non-Executive Chairman Managing Director and Executive Director Chief Executive Officer Dr. Edward Odundo Evelyn Rutagwenda Vijay Gidoomal Non-Executive Director
Slide 10: Press Release
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Press Release 10
Slide 11: Press Release
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Press Release Equity Group Holdings Plc Doubles Profitability Validating Its Resilience And Business Continuity Strategy During The Pandemic • Growth in profit after tax of 98% • Total Assets growth of 50% • Growth in Deposits of 51% •
Slide 12: Press Release (continued)
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Press Release (continued) Efficiency gains saw Cost Income Ratio decline marginally to 48.5% from 48.8% driven by a reduction of cost of funds to 2.6% down from 2.9%. Return on Average Assets (ROAA) grew to 3.3% in spite of the 50% expa
Slide 13: Press Release (continued)
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Press Release (continued) The legacy banking whose value of transaction declined by 12% to Kshs.1.1 trillion down from Kshs.1.25 trillion for the previous year to June has registered a growth of 24% to Kshs.1.37 trillion. The acceptance
Slide 14: Macroeconomic and Operating Environment
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Macroeconomic and Operating Environment 14
Slide 15: The Great Multi Crises - COVID-19
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE The Great Multi Crises - COVID-19 Global Health crisis Humanitarian and Economiccrisis • Cases reported as of 22 July, 2021 Global Africa IMF - Approximately 107 million people will fall below the poverty line by end of 2021 due to COVI
Slide 16: COVID-19 Management and Responses
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE COVID-19 Management and Responses • Encouraged financial institutions to accommodate loan restructuring for their clients • Promotion of the use of e-payments to reduce risk of contaminated bank notes • Reduced the Cash Reserve Ratio (C
Slide 17: Regional CBR and Currency Depreciation
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Regional CBR and Currency Depreciation 18.50% Jun-20 Dec-20 Jun-21 15.00% 15.00% Regional CBR 10.00% 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 Jun-20 -4.
Slide 18: Real GDP Growth projected to improve across the Region
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Real GDP Growth projected to improve across the Region 2020 Actual IMF 2021 Projection 7.6% 6.3% 5.7% 5.3% 3.8% GDP growth 2.7% 1.0% -0.1% -0.2% -0.1% -2.1% -6.6% Kenya Uganda Tanzania Rwanda DRC S.Sudan 19.0% Jun-20 15.9% Jun-21 10.3%
Slide 19: Equity Social Investments Complements Government Efforts against COVID-19 Pandemic
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Equity Social Investments Complements Government Efforts against COVID-19 Pandemic Kes 4.9 Billion to complement Government’s health and social responses as well as support our customers Health Response Social Response Loan restructurin
Slide 20: Equity Bank Business Model and Strategy
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Equity Bank Business Model and Strategy 20
Slide 21: Equity Bank Business Model & Strategy Focus
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Equity Bank Business Model & Strategy Focus Inclusive, High volume, Low Margin, Digital and Experiential, Agile and Quality-Driven Business Model 1. 2. Non-Funded Income Growth 2. Treasury efficiency 3. 3. 4. Geographical expansion and
Slide 22: Focus Area 1: Non-Funded Income Growth
Equity Group Holdings Plc Investor Briefing H1 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 +33% 51.6 +30% +3% 42.8 +29% +18% 37.6 38.7 31.2 1
Slide 23: Focus Area 1: NFI Contribution
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 1: NFI Contribution Equity Group still more diversified than the sector’s average as at Q1 2021. Equity’s focus on NFI has led to superior returns compared to the market with higher income and profitability on total assets To
Slide 24: Focus Area 2: Treasury Efficiency
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 2: Treasury Efficiency Kes Billion Government Treasury Gross Income Y OUR Treasury Income Mix Yield on Government Securities & Securities Portfolio Contribution Capital Gains +35% Government securities yields +46% 315.5 WIL L
Slide 25: Focus Area 3: Subsidiaries Performance and Contribution
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 3: Subsidiaries Performance and Contribution Other Subs Other Subs Equity Other Subs Total EBKL Group H1 2021 EBTL EBRL EBUL EBSS EIA EIB Finserve Contribution Contribution BCDC (% Contribution) (% Contribution) (% growth) H1
Slide 26: Focus Area 3: Geographical and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification Performance Trend - Banking Subsidiaries: Value creation and growth RoAE RoAA Subsidiary H1 2020 H1 2021 Subsidiary H1 2020 H1 2021 EBKL 19.4% 31.9% EBKL 2.7% 4.0% EBUL 17.9% 25.7%
Slide 27: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 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 28: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 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 29: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 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 30: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 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 31: Focus Area 3: Geographical and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification Regional trade and growing connectivity to global trade underpinned by expanding trade corridors expanding trade corridors East and Central Africa increasing Growing linkages to gl
Slide 32: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 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 33: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 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 34: Focus Area 3: Geographical and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 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 35: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 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 36: Focus Area 3: Geographical and Business Diversification
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification BRANCHES 337 CAPITAL CITY 126 Branches in Kenya 190 Nairobi 52 Branches in Uganda 43 Kampala 21 Branches in S. Sudan 5 Juba 4 Branches in Tanzania 14 Dar es Salaam 1 Branches in Rw
Slide 37: Focus Area 4: Balance Sheet Efficiency, Optimization and Agility
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 4: Balance Sheet Efficiency, Optimization and Agility Kes Billion Funding Structure and Leverage Asset Mix Group Group +50% YoY +50% YoY Growth Growth 1,119.7 1,119.7 42.0 94% 79.9 54% (4%) (7%) Deposits 102.3 78% Net Loans (
Slide 38: Focus Area 5: Business Transformation - Innovation and Digitization
Equity Group Holdings Plc Investor Briefing H1 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 610 606.9 Digital b
Slide 39: Focus Area 5: Business Transformation - Innovation and Digitization
Equity Group Holdings Plc Investor Briefing H1 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 2,500 2,456.6 Digital banki
Slide 40: Focus Area 5: Business Transformation - Innovation and Digitization
Equity Group Holdings Plc Investor Briefing H1 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 550 546.5 Mobile an
Slide 41: Focus Area 5: Business Transformation - Innovation and Digitization
Equity Group Holdings Plc Investor Briefing H1 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 42: Focus Area 5: Fintech Capabilities: Digital Business
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Digital Business 98% of our Transactions outside the branch % 88 87.2% Mobile and 82.8% internet banking 78.3% 78 76.8% 74.4% 74 16 14 14.4% 12.0% 12.2% 12 9.3% 6.3% 6 Agency
Slide 43: Focus Area 5: Fintech Capabilities: Self-Service Channels
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Self-Service Channels 68% of our Transactions Value outside the branch Branches now handling high value transactions for SME, corporates, wealth management & advisory service
Slide 44: Focus Area 5: Data Strategy, Decision Science and Analytics
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Data Strategy, Decision Science and Analytics 89% of our Loan Transactions via Mobile Channel H1 2021 Transaction count H1 2021 Transaction value Branch Lending Mobile Lendin
Slide 45: Focus Area 5: Fintech Capabilities: Lifestyle Support
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities Quarterly No of Transactions (Millions) YoY Transactions (Millions) 297.8 556.4 258.6 242.2 199.8 +65% 183.0 161.1 337.8 15
Slide 46: Focus Area 5: Fintech Capabilities: Lifestyle Support
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities – Promoting a Cashless Economy 71% of our customers using cashless payments rather than transacting in cash H1 2020 H1 2021
Slide 47: Focus Area 5: Fintech Capabilities: Lifestyle Support
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities Cards (POS & ATMs) Agency E-Commerce 2,417.9 992.1 601.7 -4% +5% +23% +8% 1,972.3 917.5 +100% 2.1 +100% 20.1 19.4 37.6 39.5
Slide 48: Focus Area 5: Fintech Capabilities: Compressing Time and Geography
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 5: Business Transformation – Fintech Capabilities: Compressing Time and Geography Remittances Processing Kes Billion +59% 167.2 104.9 0.9 0.6 +60% H1 2020 H1 2021 Transaction Volumes Diaspora Commissions 48
Slide 49: Focus Area 5: Fintech Capabilities: Global Presence
Equity Group Holdings Plc Investor Briefing H1 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 23% of all client Fx volumes +81% Fx Trading Income 717.0 +83% 549
Slide 50: Focus Area 6: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Risk mitigation via diversification of market segments Risk mitigation via diversification of economic sectors Building & 100% 100% construction Agriculture 3% 6% Financial s
Slide 51: Focus Area 6: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation NPL’s — Industry vs EGH Plc NPL per sector as at H1 2021 Industry-Kenya Equity Group 17.4% 14.5% 13.6% 14.1% 14.0% 14.9% 12.7% 12.6% 12.7% 13.1% 12.0% 10.7% 10.9% 11.0% 11.3%
Slide 52: Focus Area 6: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Prudent approach to credit risk management 54.9 Gross loans staging as at H1 2021 Coverage and provisions as at H1 2021 Kes Billion 61.9 Stage 3 Provisions 7.0 Credit Risk Gu
Slide 53: Focus Area 6: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Long-term and Prudent approach driven by deep knowledge and understanding of the Bank’s customers As part of the Group’s commitment to support lives and livelihoods and keepi
Slide 54: Focus Area 6: Proactive Prudent Management
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation – Proactive Prudent Management COVID-19 accommodated loans (Kes 171 Bn); Kes 103B resumed repayment, additional Kes 56B expected to resume in 12 Months Moratorium expiry cont
Slide 55: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 7: Efficiency and Cost Optimization Kes Billion Staff Cost Trend Other Expenses Trend Group Group 8.5 16.7 6.7 13.8 5.9 12.3 10.6 11.3 5.2 5.2 H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 Co
Slide 56: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing H1 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 8.1 8.5 7.8 7.3 4
Slide 57: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing H1 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 0.6 0.5 61.3% 54.
Slide 58: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 7: Efficiency and Cost Optimization Group Net Interest Margin Yield on Interest Earning Assets % % 8.3 8.0 7.8 10.8 11.2 10.7 7.6 7.5 10.4 10.2 10.0 7.2 8.9 9.2 6.6 6.4 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Slide 59: Focus Area 7: Efficient Financial Intermediation
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 7: Efficient Financial Intermediation 13.0 12.7% 12.6% 12.3% 12.4% 12.5 12.1% 11.9% 12.1% 12.1% 12.0% 12.0% 11.9% 12.0 11.7% 11.6% 11.7% Equity Yield on Loans 11.5 11.3% 11.3% 11.1% 11.2% Equity Group’s lending 11.0% 10.8% yi
Slide 60: Focus Area 8: Impact Investment
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 8: Impact Investment Impact & Social Investment Programs USD 496 M in Social Investment Programs Food & Agriculture Health Energy & Environment 2% 5% 5% Enterprise Development & Financial Inclusion 10% Wings to Fly & Elimu Pr
Slide 61: Focus Area 8: Shared Prosperity Business Model and its Social Impact
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Focus Area 8: Impact Investment Shared Prosperity Business Model and its Social Impact 26,304 2.05M 30,000 26,304 25,000 2021 Wings to Fly Graduates • 98% secondary school completion 20,000 Scholarships 16,168 • 86% attained university
Slide 62: Business Validation
Business Validation
Slide 63: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing H1 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 64: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Global Ratings and Accolades • Bank of the Year- Kenya 2019 • Bank of the Year - Uganda 2019 • Bank of the Year - Rwanda 2020 • Bank of the Year - DRC 2020 • Bank of the Year- South Sudan 2019 & 2020 • Best Regional Bank - East Africa -
Slide 65: 2021 National Banking Awards and Accolades
Equity Group Holdings Plc Investor Briefing H1 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 66: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Global Ratings and Accolades Equity Group’s MD and CEO, Dr. James Mwangi, was honoured in the 2019 Bloomberg 50 list. This is an honorary list of fifty innovators, entrepreneurs, and leaders who have impacted the global business landsca
Slide 67: Dr. James Mwangi honouree, 2020 Oslo Business for Peace Award
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Global Ratings and Accolades Dr. James Mwangi honouree, 2020 Oslo Business for Peace Award Honourees are chosen by a prestigious Award committee consisting of past Nobel Prize winners in Peace Economics. “Dr. James Mwangi receives the A
Slide 68: Market Validation
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Market Validation KES Billion Market Capitalization as at 30th July 2021 Mkt Cap as at 30th July 2021 Total Assets (Q1 2021) 1,066.4 PAT (Q1 2021) 977.5 552.9 542.1 417.3 384.1 339.3 317.0 305.4 184.5 146.8 79.5 54.0 48.9 43.7 38.0 33.6
Slide 69: Intermediation and Financial Performance
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Intermediation and Financial Performance 69
Slide 70: Balance Sheet
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Balance Sheet KES Billion H1 2020 H1 2021 Growth Assets Cash & Cash Equivalents 86.6 219.5 154% Government Securities 216.4 315.5 46% Net Loans 391.6 504.8 29% Other Assets 51.9 79.9 54% Total Assets 746.5 1,119.7 50% Liabilities & Capi
Slide 71: Income Statement
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Income Statement KES Billion H1 2020 H1 2021 Growth Interest Income 32.8 42.8 30% Interest Expense Net Interest Income 8.2 24.6 HE R E 11.6 31.2 42% 26% Non-Funded Income 14.1 20.4 45% Total Income 38.7 51.6 33% *Loan Loss Provision 7.7
Slide 72: RoAE and RoAA Trend
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE RoAE and RoAA Trend RoAE 31.9% 25.0% H1 2020 H1 2021 19.4% 15.4% EBKL Group RoAA 4.0% 3.3% H1 2020 2.7% 2.6% H1 2021 EBKL Group 72
Slide 73: Financial Ratios
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Financial Ratios EBKL EBKL Group Group H1 2020 H1 2021 H1 2020 H1 2021 Profitability Yield on Loans 10.9% 11.4% 12.0% 11.9% Yield on Government Securities 10.2% 9.8% 10.1% 9.8% Yield on Interest Earning Assets 10.5% 9.4% 10.7% 9.2% Cost
Slide 74: 2021 Outlook - Group
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE 2021 Outlook - Group Revised 2021 2021 Outlook H1 2021 Actual Outlook Loan Growth 25% - 30% 20% - 25% 29% Deposit Growth 20% - 25% 20% - 25% 51% Net Interest Margin 7.0% - 8.0% 7.0% - 8.0% 6.6% Non Funded Income Mix 38% - 43% 40% - 43%
Slide 75: Macroeconomic Environment - Kenya
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Macroeconomic Environment - Kenya 8 6.3 6.3 6 5.7 6.0 5.6 5.3 5.1 5.5 4.9 • QUARTERLY GDP GROWTH – Expected to 4 grow as markets open up on recovery from 2 the effects of COVID-19. However, the 0 -1.1 economic recovery is reliant on the
Slide 76: Macroeconomic Environment - Kenya (continued)
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Macroeconomic Environment - Kenya (continued) 7 6 5 • Interbank Rates – Relatively stable and 4 3 supported by government payments at the 2 end of the month of June. 1 0 28-Jul-20 12-Jan-21 30-Jun-20 29-Jun-21 1-Jun-21 22-Sep-20 9-Feb-2
Slide 77: Macroeconomic Environment - Kenya (continued)
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Macroeconomic Environment - Kenya (continued) 6.50 6.00 • Inflation – Inflation ticked upwards on the month of June as a result of increase in food items. 5.50 Projected to remain within the Central Bank of 5.00 Kenya’starget range of 2
Slide 78: Projected Regional GDP Growths
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Projected Regional GDP Growths Forecasts as at June 2021 7.6 6.8 6.3 6.5 5.7 5.7 5.3 5.0 4.9 4.6 3.8 2.7 Kenya Uganda Tanzania Rwanda DRC S. Sudan 2021 2022 Source: IMF & Africa Economic Outlook. 78
Slide 79: Regional Currencies Depreciation against USD
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Regional Currencies Depreciation against USD 3,750 3,730.0 3,715.0 3,700 3,660.1 3,660.0 3,650 3,600 2.73% 3,560.0 3,550 USD/UGX 2,317.5 2,320.0 2,321.5 2,314.0 2,321.5 USD/TZS -0.32% 1,994.6 2,000 1,976.9 USD/CDF 1,954.5 1,964.7 -0.90%
Slide 80: Regional Outlook
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Regional Outlook Uganda • Amidst the recovery of the economy from the COVID-19 effects, there are emerging challenges on increasing pressure on its natural resources. • The significant shift of Ugandans to agriculture in response to the
Slide 81: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Regional Outlook (continued) Rwanda • The economic recovery is expected to continue in 2021. • The real GDP is projected to rebound to 5.7% in 2021, supported by sound economic policies and the vaccine rollout. • Outstanding credit to p
Slide 82: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing H1 2021 PERFORMANCE Regional Outlook (continued) South Sudan • Declining exports and private consumption, as well as the effects of the pandemic, floods and higher sub-national conflict intensity have contributed to a worse economic outlook than previously
Slide 83: Case Studies
Equity Group Holdings Plc Investor Briefing H1 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 84: Notes
Notes
Slide 85: Equity Centre, Fax: 9 th Floor,
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 063 @keEquityBank 000 keEquityBank info@equitygroupholdings.com, www.equitygroupholding
Equity Group Holdings — H1 2021 Earnings Presentation on 6ix