Equity Group Holdings Limited · NSEKE:EQTY
Equity — Q1 2021 Earnings Presentation
84 slides from Equity's earnings presentation, May 2021
Slide 1: Investor Briefing Q1 2021 Performance
INVESTOR BRIEFING Q1 2021 PERFORMANCE
Slide 2: Equity Group Holdings Plc Investor Briefing
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE 2
Slide 3: Equity Group's Philosophies
Equity Group Holdings Plc Investor Briefing Q1 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 Q1 2021 PERFORMANCE Governance and Organizational Structure 4
Slide 5: Governance and Organizational Structure
Equity Group Holdings Plc Investor Briefing Q1 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: Breadth and Depth of the Management Team
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Governance and Organizational Structure (continued) Breadth and Depth of the Management Team EGH Strategy SIT Alignment of strategy and execution reflected by close interaction between the CEO’s Office and Corporate Office Breadth and divers
Slide 7: Group Executive Management
Equity Group Holdings Plc Investor Briefing Q1 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 Q1 2021 PERFORMANCE Group Executive Management Gerald Warui Emmanuel Deh Samuel Kirubi Anthony Kituuka Addis Ababa Othow Managing Director, Executive Director, Managing Director, Executive Director, Managing Director, Equity Bank Kenya Equity Bank Kenya Eq
Slide 9: Group Board of Directors
Equity Group Holdings Plc Investor Briefing Q1 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 Q1 2021 PERFORMANCE Press Release 10
Slide 11: Press Release
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Press Release EQUITY GROUP EMERGES RESILIENT AMIDST MULTIPLE CRISIS • 54% growth in total assets • 58% growth in customer deposits • 64% growth in profit after tax • 31% strong topline revenue growth • Strong revised 2021 outlook Nairob
Slide 12: Press Release (continued)
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Press Release (continued) Operationally, the Group focused on generating and growing non-funded income, treasury efficiency, geographical expansion and business diversification, business transformation through innovation and digitizatio
Slide 13: Press Release (continued)
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Press Release (continued) average of 14.6%. Strong risk mitigation saw NPL coverage stand at 99% from a mix of provisions at 87% and 12% of credit risk guarantees. Of the 31% of the loan book, or Kshs.171 billion Covid-19 accommodated o
Slide 14: Macroeconomic and Operating Environment
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Macroeconomic and Operating Environment 14
Slide 15: The Great Multi Crises - COVID-19
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE The Great Multi Crises - COVID-19 Global Health crisis Y O U RHumanitarian and Economic crisis • Cases reported as of 30 April 2021 H E A D IMF L I- N E Approximately 107 million people will fall below the W I L L SIT H E R E Global pov
Slide 16: COVID-19 Management and Responses
Equity Group Holdings Plc Investor Briefing Q1 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 Key government bank notes and banks’ regulator
Slide 17: Regional CBR and Currency Depreciation
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Regional CBR and Currency Depreciation Mar -20 Dec-20 Mar -21 18.50% 15.00% 15.00% 15.00% 10.50% Regional CBR 8.00% 7.25% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 5.00% 4.50% 4.50% 4.50% Kenya Uganda Tanzania Rwanda DRC S.Sudan Mar -20
Slide 18: GDP Growth Projected to improve across the Region
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE GDP Growth Projected to improve across the Region 2020 Estimate IMF 2021 Projection 7.6% 6.3% 5.7% 5.3% GDP growth 3.8% 4.1% 2.7% 1.9% 2.0% 1.1% 0.3% -2.2% Kenya Uganda Tanzania Rwanda DRC S.Sudan Mar -20 46.8% Mar -21 40.4% 18.4% Infla
Slide 19: Equity Social Investments Complements Government Efforts against Covid-19
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Equity Social Investments Complements Government Efforts against Covid-19 Pandemic Kes 4.4 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 Q1 2021 PERFORMANCE Equity Bank Business Model and Strategy 20
Slide 21: Equity Bank Business Model & Strategy Focus
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Equity Bank Business Model & Strategy Focus Inclusive, High volume, Low Margin, Digital and Experiential, Agile and Quality-Driven Business Model Non-Funded Income Growth 2. Treasury efficiency 3. Geographical expansion and Business Div
Slide 22: Focus Area 1: Non-Funded Income Growth
Equity Group Holdings Plc Investor Briefing Q1 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 +29% 25.5 +13% +32% 19.7 20.3 14.8 +32% 17.5 +14%
Slide 23: Focus Area 1: NFI Contribution
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 1: NFI Contribution NFI contribution back to pre-covid-19 level; Equity Group still more diversified than the sector average as at Q4 2020. Equity’s focus on NFI has led to superior returns compared to the market with higher
Slide 24: Focus Area 2: Treasury Efficiency
Equity Group Holdings Plc Investor Briefing Q1 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 +47% +36% +31% Government securities portfolio continue
Slide 25: Focus Area 3: Subsidiaries Performance and Contribution
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 3: Subsidiaries Performance and Contribution Kes Billion Other Subs Other Subs Other Subs Equity Group Q1 2021 EBTL EBRL EBUL EBSS EIA EIB Finserve Total EBKL Contribution Contribution BCDC (% Contribution) (% Contribution) (
Slide 26: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Performance Trend - Banking Subsidiaries: Value creation and growth RoAE RoAA Subsidiary Q1 2020 Q1 2021 Subsidiary Q1 2020 Q1 2021 EBKL 21.6% 32.8% EBKL 3.0% 4.2% EBUL 2
Slide 27: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing Q1 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 INVESTMENT PHASE HIGH RETURN PHASE (ROA
Slide 28: Focus Area 3: Geographical and Business Diversification
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 3: Geographical 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 Year 4 Ye
Slide 29: Focus Area 3: Geographical and Business Diversification
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 3: Geographical 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 10 in three other markets • Population o
Slide 30: Focus Area 3: Productivity gains from access to credit and infrastructure
Equity Group Holdings Plc Investor Briefing Q1 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: Regional trade and growing connectivity
Equity Group Holdings Plc Investor Briefing Q1 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 infrastructure Growing linkages to global trade
Slide 32: Focus Area 3: Regional presence to drive cross-border trade
Equity Group Holdings Plc Investor Briefing Q1 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: DRC significant resource endowment
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification DRC significant resource endowment • Improving government policy and governance: This is affirmed by the US reinstating the DRC eligibility for trade preferences under the
Slide 34: Landmark Oil Pipeline deal signed by Uganda and Tanzania
Equity Group Holdings Plc Investor Briefing Q1 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: Promising Tanzania Operating Environment
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Promising Tanzania Operating Environment • The newly sworn in Tanzania president, Samia Suluhu Hassan’s, visit to Kenya in early May eased bilateral relations between the
Slide 36: Focus Area 3: Branches, Agents, POS and ATMs
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification BRANCHES 336 CAPITAL CITY 124 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 Q1 2021 PERFORMANCE Focus Area 4: Balance Sheet Efficiency, Optimization and Agility Group Group +54% YoY +54% YoY Growth Growth 1,066.4 1,066.4 45.8 105% 78.8 61% (4%) (7%) Deposits 89.6 63% (8%) Net Loans Gross Loans 258.9 +58% 140.4 21% (24%) 36% (13%)
Slide 38: Focus Area 5: Innovation and Digitization
Equity Group Holdings Plc Investor Briefing Q1 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 285 283.4 Digital b
Slide 39: Focus Area 5: Innovation and Digitization
Equity Group Holdings Plc Investor Briefing Q1 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 1,200 Volumes in Kes Billions H E A D L IN E 1,167.
Slide 40: Focus Area 5: Innovation and Digitization
Equity Group Holdings Plc Investor Briefing Q1 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 255 254.7 Mobile an
Slide 41: Focus Area 5: Innovation and Digitization
Equity Group Holdings Plc Investor Briefing Q1 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: Fintech Capabilities: Digital Business
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Digital Business 98% of our Transactions outside the branch % 86.8% 86.8% 87 Mobile and 79 78.7% internet banking 74.9% 72.1% 72 15 14.6% 12.8% 13 12 11.1% 11 6.5% 6.5% Agenc
Slide 43: Fintech Capabilities: Self-Service Channels
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Self-Service Channels 67% of our Transactions Value outside the branch Branches now handling high value transactions for SME, corporates, wealth management & advisory service
Slide 44: Fintech Capabilities: Data Strategy, Decision Science and Analytics
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Data Strategy, Decision Science and Analytics 89% of our Loan Transactions via Mobile Channel Q1 2021 Transaction count Q1 2021 Transaction value Branch Lending Mobile Lendin
Slide 45: Fintech Capabilities: Lifestyle Support
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities Quarterly No of Transactions (Millions) YoY Transactions (Millions) 258.6 242.2 258.6 199.8 182.5 +67% 154.6 161.1 154.8 15
Slide 46: Fintech Capabilities: Compressing Time and Geography
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Compressing Time and Geography Remittances Processing +87% 82.0 44.0 0.5 +130% 0.2 Q1 2020 Q1 2021 Transaction Volumes in Kes Bn Diaspora Commissions in Kes Bn 46
Slide 47: Fintech Capabilities: Global Presence
Equity Group Holdings Plc Investor Briefing Q1 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 27% of all client Fx volumes +85% Fx Trading Income 305.9 +83% 223.
Slide 48: Focus Area 6: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing Q1 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 Financial services 3% Manufac
Slide 49: NPLs: Industry vs EGH Plc
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation NPL’s –Industry vs EGH Plc as at Q1 2021 NPL per sector as at Q1 2021 Industry-Kenya Group 14.1% 14.6% 13.1% 13.6% 12.8% 12.7% 12.6% 12.7% 15.5% 12.0% 10.9% 11.0% 11.3% 10.7%
Slide 50: Prudent approach to credit risk management
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Prudent approach to credit risk management 53.5 Gross loans staging as at Q1 2021 Coverage and provisions as at Q1 2021 Kes Billion 60.6 Stage 3 Provisions *7.1 61.2 Credit R
Slide 51: Focus Area 6: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing Q1 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 52: Proactive Prudent Management
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation – Proactive Prudent Management Covid-19 accommodated loans (Kes 171 Bn); Kes 59B resumed repayment, additional Kes 66B expected to resume in 6 Months Moratorium expiry intens
Slide 53: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 7: Efficiency and Cost Optimization Kes Billion Staff Cost Trend Other Expenses Trend Group Group 8.7 4.0 3.2 6.5 5.8 5.6 5.7 2.5 2.6 2.6 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Cost to
Slide 54: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q1 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 4.4 4.3 3.8 3.7 4
Slide 55: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q1 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 0.3 0.3 7.2% 63.6
Slide 56: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 7: Efficiency and Cost Optimization Group Net Interest Margin Yield on Interest Earning Assets % % 8.3 8.0 7.6 7.8 10.8 11.2 10.7 10.4 10.2 7.5 10.0 7.2 8.9 6.4 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2019 2020 2020 2020 2020 2021 Cost of
Slide 57: Focus Area 7: Efficient Financial Intermediation
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 7: Efficient Financial Intermediation 13.0 12.7% 12.6% 12.3% 12.4% 12.5 12.1% 12.1% 12.1% 11.9% 12.0% 11.9% 12.0 11.7% 11.6% 11.7% 11.3%11.3% Equity Yield on Loans Equity Group’s lending 11.5 11.1% 11.2% 11.0% 10.8% yields co
Slide 58: Focus Area 8: Impact Investment
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 8: Impact Investment Impact & Social Investment Programs USD 465 M in Social Investment Programs Agriculture Energy & Environment Health 2% 1% 3% 5%2% Financial Education & Entrepreneurship 12% 11% 45% Wings to Fly Program 48
Slide 59: Shared Prosperity Business Model and its Social Impact
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Focus Area 8: Impact Investment Shared Prosperity Business Model and its Social Impact 30,000 25,000 26,304 26,304 Y OUR 2019 Wings to Fly Graduates • 96% secondary school completion 2M Scholarships • 82% attained university entry 20,00
Slide 60: Business Validation
Business Validation
Slide 61: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Global Ratings and Accolades Equity Bank Credit Rating • National Rating: B2 2020 Oslo Business for Peace Award • Global Rating: Aaa.ke/KE-1 Dr. James Mwangi. • Rating Outlook: Negative Same as the sovereign rating • Position 20 globall
Slide 62: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 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 • Socially Responsible Bank in Afric
Slide 63: 2020 National Banking Awards and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE 2020 National Banking Awards and Accolades 1. Best Overall Bank - 9 years running 2. Best Bank in Tier 1 - 6 years running Brand 3. Best Bank in Sustainable CSR - 4 years running 4. Most customer-centric bank - 3 years running 5. Bank w
Slide 64: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 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 65: Dr. James Mwangi honouree, 2020 Oslo Business for Peace Award
Equity Group Holdings Plc Investor Briefing Q1 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 66: Market Validation
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Market Validation KES Billion Market Capitalization as at 21st May 2021 1,015.1 Mkt Cap as at 21 May 2021 Total Assets (FY 2020) 987.8 PAT (FY 2020) 537.0 528.0 425.1 379.4 358.1 325.6 319.0 156.6 131.7 71.9 49.4 49.7 40.9 32.0 20.1 19.
Slide 67: Intermediation and Financial Performance
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Intermediation and Financial Performance 67
Slide 68: Balance Sheet
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Balance Sheet KES Billion Q1 2020 Q1 2021 Growth Assets Cash & Cash Equivalents 75.2 241.0 221% Government Securities 189.9 258.9 36% Net Loans 379.2 487.7 29% Other Assets 48.9 78.8 61% Total Assets 693.2 1,066.4 54% Liabilities & Capi
Slide 69: Income Statement
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Income Statement KES Billion Q1 2020 Q1 2021 Growth Interest Income 15.4 20.3 32% Interest Expense 3.9 5.5 42% Net Interest Income 11.5 14.8 28% Non Funded Income 8.2 10.7 30% Total Income 19.7 25.5 29% *Loan Loss Provision 3.0 1.1 -64%
Slide 70: RoAE and RoAA Trend
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE RoAE and RoAA Trend RoAE 32.8% Q1 2020 25.1% 21.6% Q1 2021 19.5% EBKL Group RoAA 4.2% 3.0% 3.1% 3.3% Q1 2020 Q1 2021 EBKL Group 70
Slide 71: Financial Ratios
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Financial Ratios EBKL EBKL Group Group Q1 2020 Q1 2021 Q1 2020 Q1 2021 Profitability Interest Yield from Loans & Advances 10.4% 11.1% 11.6% 11.7% Interest Yield from Gov’t Securities 10.1% 9.7% 10.0% 9.9% Yield from Earning Assets 10.2%
Slide 72: 2021 Outlook - Group
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE 2021 Outlook - Group Revised 2021 2021 Outlook Q1 2021 Actual Outlook Loan Growth 25% - 30% 20% - 25% 29% Deposit Growth 20% - 25% 20% - 25% 58% Net Interest Margin 7.0% - 8.0% 7.0% - 8.0% 6.4% Non Funded Income Mix 38% - 43% 40% - 43%
Slide 73: Macroeconomic Environment Indicators & Trends - Kenya
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Macroeconomic Environment Indicators & Trends - Kenya 73
Slide 74: Macroeconomic Environment - Kenya
Equity Group Holdings Plc Investor Briefing Q1 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 – Growth has 4 been supported by steady growth in the 2 agricultural sector, which benefited from 0 -1.1 good weather and a reprieve from t
Slide 75: Macroeconomic Environment - Kenya (continued)
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Macroeconomic Environment - Kenya (continued) 7.00 6.00 • Interbank Rates – Government's adoption 5.00 of an accommodative monetary policy 4.00 3.00 stance, such as lowering interest rates 2.00 have largely muted a rise in the interbank
Slide 76: Macroeconomic Environment - Kenya (continued)
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Macroeconomic Environment - Kenya (continued) 6.00 5.80 5.60 • Inflation – Has been rising steadily for the last six 5.40 months. Projected to remain within the Central 5.20 5.00 Bank of Kenya’s target range of 2.5% to 7.5% with 4.80 fis
Slide 77: Projected Regional GDP Growths
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Projected Regional GDP Growths Forecasts as at January 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(Regional Economic Outlook). 77
Slide 78: Regional Currencies Depreciation against USD
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Regional Currencies Depreciation against USD 3,800 3,785.0 3,750 3,730.0 3,715.0 3,700 3,664.3 3,660.1 3,660.0 3,650 USD/UGX 0.00% 2,317.5 2,320.0 2,321.5 2,314.0 2,298.0 2,308.0 -0.32% USD/TZS 2,300 1,976.9 1,954.5 1,964.7 USD/CDF +0.6
Slide 79: Regional Outlook
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Regional Outlook Uganda • Has prudently managed its debt, currently classified as low risk of debt distress. • The rise in demand is already improving business activity. • The budget deficit will remain elevated at 7.3% in 2021 but is p
Slide 80: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Regional Outlook (continued) Rwanda • High infrastructure spending on Bugesera airport expected to enhance economic growth as the effects of the COVID-19 fade. • Inflation is expected to decrease to within the policy target as reopened
Slide 81: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Regional Outlook (continued) South Sudan • The advent of peace and the projected rebound in oil production and exports will support partial economic recovery. • Public financial management reforms and the recovery of global oil prices w
Slide 82: Notes
Equity Group Holdings Plc Investor Briefing Q1 2021 PERFORMANCE Notes 82
Slide 83: Slide 83
Slide 84: 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 063 @keEquityBank 000 keEquityBank info@equitygroupholdings.com, www.equitygroupholding
Equity Group Holdings — Q1 2021 Earnings Presentation on 6ix