Equity Group Holdings Limited · NSEKE:EQTY
Equity — Q1 2024 Earnings Presentation
104 slides from Equity's earnings presentation, May 2024
Slide 1: Investor Briefing Q1 2024 Performance
INVESTOR BRIEFING Q1 2024 PERFOMANCE
Slide 2: Equity Group Holdings Plc Headquarters
Slide 3: Equity Group's Philosophies
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Equity Group’s Philosophies Our Purpose: Positioning Statement: Transforming lives, giving dignity and expanding opportunities for We provide inclusive financial services that transform wealth creation. livelihoods, give dignity and exp
Slide 4: Governance and Organizational Structure
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Governance and .6 Organizational Structure
Slide 5: Governance & Risk Management Framework
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Governance & Risk Management Framework YOUR HEADLINE W I L L SIT H E R E 5
Slide 6: Governance and Organizational Structure
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Governance and Organizational Structure Breadth and Depth of the Management Team EGH Strategy Strategy execution via close interaction between CEO office and Corporate office Breadth and diversity of corporate function supported by expa
Slide 7: Group Executive Management
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Group Executive Management Dr.James Mwangi,CBS Mary Wamae Samuel Kirubi Group Managing Director & Group Executive Director Group Chief Operating Chief Executive Officer Officer Brent Malahay Gertrude Karugaba Sam Gitwekere Group Chief S
Slide 8: Group Executive Management
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Group Executive Management David Ssegawa Ignatius Chicha Rene Kalonji Christine Browne Group Director Human Group Director Treasury Chief Product Officer Group Director Special Resources Operations Assets Joy DiBenedetto Michael Kwofie
Slide 9: Group Executive Management
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Group Executive Management Gerald Warui Isabella Maganga Anthony Kituuka Addis Ababa Othow Managing Director, Managing Director, Managing Director, Managing Director, Equity Bank Kenya E q u i t y B a n k Ta n z a n i a Equity Bank Ugan
Slide 10: Group Board of Management
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Group Board of Management Prof. Isaac Macharia Dr. James Mwangi, CBS Non-Executive Chairman Group Managing Director and Chief Executive Officer Mary Wamae Dr. Edward Odundo Vijay Gidoomal Jonas Mushosho Group Executive Director Non-Exec
Slide 11: Press Release
Equity Group Holdings Plc Investor Briefing Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE FY 2023 PERFORMANCE Press Release 9 12
Slide 12: Press Release
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Press Release EQUITY GROUP HOLDINGS REGISTERS STRONG RECOVERY • 25% growth in profit after tax of Kshs.16 billion for 1st quarter 2024 • 29.1% return on average equity year on year to 31st March 2024 • 65% Group profit after tax contrib
Slide 13: Press Release (continued)
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE December 2023. There was slow customer deposits growth and decline in long-term loans yielding a lower year on year growth of interest expense for the reporting period to 31st March 2024 to 41% compared to 53% for the year ended 31st De
Slide 14: Press Release (continued)
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE leadership and strong values-based organization culture that emphasizes execution and performance, effective and efficient systems, processes and procedures, and a strong customer-centric value proposition of affordability and high-qual
Slide 15: Press Release (continued)
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE fragmented supply chains and trade routes. As a result of business and product diversification, non-funded income contributed 43.9% of the total income of Kshs.49.6 billion at Kshs.21.8 billion. Treasury contributed 30% of all gross inc
Slide 16: Press Release (continued)
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE collaboration partner. Equity Group has attracted partners be they investors, funders, financiers, and grant makers. Globally, the brand has been recognized as the world’s second strongest financial brand while regionally the brand is r
Slide 17: Macroeconomic and Operating Environment
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Macroeconomic and Operating Environment .3
Slide 18: Global macro environment - Global GDP growth
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Global macro environment - Global GDP to grow by 3.2% in both 2024 and 2025 from surprising strong US, China and India economies Pausing of higher for longer interest rates by major central banks after peaking. Slow gradual cuts in 2024
Slide 19: East Africa – Among fastest growing regions in the world
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE East Africa – Among fastest growing region in the world with GDP of 5.6% (2024) Fiscal consolidation as governments bring down their fiscal deficits to sustainable levels and create fiscal space East Africa - General Government Net Lend
Slide 20: East Africa is one of the fastest growing regions and EGH's home
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE East Africa is one of the fastest growing regions in the world and this is EGH’s home Global Real GDP Growth Rates (%) “East Africa is set to continue to lead Africa’s growth pulse” (2) 7.0% 6.0% 5.0% Accounts for the highest number o
Slide 21: Significant upside opportunity in East Africa
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE There is significant upside opportunity in East Africa & EGH is uniquely positioned to tap into this growth potential Population Real GDP/capita, Real GDP/Capita Population, Growth2, 2023, USD growth2, 2023-2028, % 2023, Million 2023-20
Slide 22: Equity Group presence and Market Position
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Equity Group presence and Market Position Kenya DRC Rwanda KCB 14.9% Rawbank 28.6% BK 36.5% Equity asset market position among top 2 in most markets Equity NCBA YOUR 8.7% 13.7% Equity TMB 10.0% 27.0% Equity KCB 17.7% 14.8% Coop Absa WIL
Slide 23: EGH at the heart of East Africa's trade connections
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EGH is at the heart of East Africa’s thriving ecosystem of trade connections Regionally, trade from Kenya, Tanzania & Uganda to EAC is rapidly increasing, $3.1Bn in 2018 to $5.4Bn in 2022, indicating improving ties Significant market ex
Slide 24: Strategy Overview
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Strategy Overview .6
Slide 25: Welcome to Equity Group
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Welcome to Equity Group East Africa’s Premier Financial Services Provider Y O UCore R driver H and EA DLINE beneficiary of East Africa’s growth story W I L L SIT H E R E Connecting regional industry, infrastructure and consumers with ca
Slide 26: We are building sustainable financial ecosystems
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE We are building sustainable financial ecosystems Equity’s strategy is evolving with the Now needs of our customers and the economies we help connect Connecting Then Financial services Diversified Moving up the fragmented supply and tech
Slide 27: Positioning ourselves to grow with East Africa beyond banking
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Positioning ourselves to grow with the East Africa of tomorrow beyond Banking Impact on EGH Impact for our customers Impact to our investors YOUR The largest financial ecosystem connecting and financing MSMEs Being there for our Mem
Slide 28: Unique Financial Services Platform with Exposure to East Africa
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Unique Financial Services Platform with Exposure to attractive East Africa Market Recognized as top global Regional #1 Bank in East Africa with a track performer in climate Sustainability Financial record of successfully expanding into
Slide 29: Banking Group
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Banking Group .3
Slide 30: Banking Group Balance Sheet Optimization and Efficiency
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Banking Group Balance Sheet Optimization and Efficiency Earning Assets constituting majority of the balance sheet; yielding strong margins Earning Asset Mix NIM RoAA EBKL 88% 86% 6.6% 6.5% 3.2% 2.2% Q1 23 Q1 24 EBCDC 86% 87% 5.9% 6.0% 3
Slide 31: EBKL Balance Sheet
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBKL Balance Sheet (Figures in Kes Billion) Balance Sheet Customer Loans Customer Deposits Asset Quality -6% NPL Coverage 448.9 +13% 91.4% Inv. Securities; 421.6 348.9 740.2 75.0% 655.5 68.5% 63.8% 62.8% Assets Cash Equivalents; 99.6 Ne
Slide 32: EBKL P&L
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBKL P&L (Figures in Kes Billion) Revenue Efficiency Ratios Profit Before Tax -5% 12.6% 21.3 9.7% 10.6% 20.1 -30% 8.3 6.2 Yield on Earning Assets Non-Funded Income (39%) (31%) 9.4 Q1 2022 Q1 2023 Q1 2024 6.1% 6.6 13.0 13.9 4.1% Net Interes
Slide 33: EBCDC Balance Sheet
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBCDC Balance Sheet (Figures in Kes Billion) Balance Sheet Customer Loans Customer Deposits Asset Quality NPL Coverage +19% +18% 87.3% Assets 231.7 434.3 82.8% 78.9% Net Loans; 231.7 74.0% 193.9 369.6 65.9% Government Cash & Cash Securi
Slide 34: EBCDC P&L
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBCDC P&L (Figures in Kes Billion) Revenue Efficiency Ratios Profit Before Tax 7.3% 7.5% 4.9% +26% +13% Yield on Earning Assets 15.4 Q1 2022 Q1 2023 Q1 2024 5.3 12.2 7.5 4.7 (49%) 1.4% 1.5% 1.1% 7.3 Non-Funded Income (60%) Cost of Funds 7.
Slide 35: EBUL Balance Sheet
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBUL Balance Sheet (Figures in Kes Billion) Balance Sheet Customer Loans Customer Deposits Asset Quality -9% -8% NPL Coverage 58.2 101.5 84.3% 52.8 92.9 Assets 66.3% Government 52.7% 54.1% 52.9% Securities; 30.2 Cash & Cash Equivalents;
Slide 36: EBUL P&L
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBUL P&L (Figures in Kes Billion) Revenue Efficiency Ratios Profit Before Tax 13.2% 14.2% +31% 12.2% +8% 4.1 Yield on Earning Assets 1.1 1.0 3.2 1.4 (35%) Q1 2022 Q1 2023 Q1 2024 1.3 Non-Funded Income 4.9% 4.6% (41%) 3.8% 2.7 Cost of Funds
Slide 37: EBRL Balance Sheet
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBRL Balance Sheet (Figures in Kes Billion) Balance Sheet Customer Loans Customer Deposits Asset Quality +55% +39% NPL Coverage 84.3% 46.7 75.7 Assets 66.3% Government 54.5 30.1 52.7% 54.1% 52.9% Securities; 28.5 Cash & Cash Equivalents
Slide 38: EBRL P&L
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBRL P&L (Figures in Kes Billion) Revenue Efficiency Ratios Profit Before Tax +65% +68% 10.5% 9.9% 10.2% 3.1 1.8 1.0 Yield on Earning Assets (32%) 1.9 Q1 2022 Q1 2023 Q1 2024 0.7 Non-Funded Income (35%) 1.1 2.1 1.2 (68%) 2.8% 2.6% Net Inte
Slide 39: EBTL Balance Sheet
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBTL Balance Sheet NPLs improving as the pre-2019 (Legacy book) continue to be managed. The reminder (new book) below NPL levels of 2%. EBTL well positioned to grow and diversify more into the SME and Retail Segments. (Figures in Kes Bi
Slide 40: EBTL P&L
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBTL P&L (Figures in Kes Billion) Revenue Efficiency Ratios Profit Before Provisions 11.5% 10.4% +24% 10.0% +43% 1.5 Yield on Earning Assets 0.6 1.2 0.7 Q1 2022 Q1 2023 Q1 2024 (47%) 0.6 Non-Funded Income (49%) 4.9% 4.6% 0.4 4.4% 0.8 Cost
Slide 41: EBSSL Balance Sheet & P&L
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EBSSL Balance Sheet & P&L (Figures in Kes Billion) Balance Sheet Customer Loans Revenue +40% +249% 3.30 0.7 Assets 0.5 Cash & Cash Net Loans; 0.7 0.94 Equivalents; 3.29 (100%) 18.5 Other Assets; Non-Funded Income 0.94 0.5 (99%) Net Inte
Slide 42: Overall Banking Group Performance
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Overall Banking Group Performance .6
Slide 43: Regional Diversification of Banking Business
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Regional Diversification of Banking Business Contribution of banking subsidiaries (Figures in Kes Billion) Banking Subs Banking Subs Equity Regional Subs Total EBKL Group Q1 2024 EBTL EBRL EBUL EBSS Contribution Contribution YOUR HEADLI
Slide 44: EGHL Balance Sheet Intermediation and Financial Performance
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EGHL Balance Sheet (Figures in Kes Billion) Group Balance Sheet Customer Loans Customer Deposits Loan/Deposit Trend +3% +11% Net Loans; 1,236.4 756.3 779.2 779.2 1,111.2 Assets Q1 2024 63.0% Cash Equivalents; 278.5 Inv. Securities; 473.
Slide 45: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Asset Quality, Distribution and Risk Mitigation NPL Ratio by Segment Group NPL Ratio 19.6% 13.2% 12.2% 11.7% 9.8% 13.3% 13.2% 9.1% 7.3% 1.6% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Corporate MSME PSI Retail Total NPL Coverage Ratio NPL
Slide 46: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Asset Quality, Distribution and Risk Mitigation Prudent approach to credit risk management (Figures in Kes Billion) Coverage and provisions Gross loans staging 99.0 21.7 Stage 3 (19.2%) 112.8 Provisions Stage 2 (13.2%) Credit Risk Guara
Slide 47: Profit and Loss Efficiency Financial Intermediation
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Profit and Loss Efficiency Financial Intermediation Yield on Loans Yield on Government Securities Yield on Interest Earning Assets 11.8% 12.0% 11.7% 12.9% 11.5% 12.7% 10.8% 11.1% 11.3% 12.1% 11.4% 11.9% 10.6% 10.9% 10.0% 10.1% 9.9% 10.8
Slide 48: Non-Funded Income - Treasury Efficiency
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Non-Funded Income - Treasury Efficiency (Figures in Kes Billion) Treasury Income YoY Treasury Income Mix Yield on Government Securities & Mark to market impact Yield on Govt Securities +15% +29% 12.0% 11.5% 11.8% 10.8% 11.1% 0.03 64.8 (
Slide 49: Non-Funded Income - Trade Finance Performance
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Non-Funded Income - Trade Finance Performance (Figures in Kes Billion) Gross trade finance revenue Trade finance facilitation +22% 3.1 Q1 2023 Q1 2024 0.1 0.3 (1%) (9%) 2.4 0.2 +23% 0.1 (8%) EBTL 205.6 0.1 (2%) EBRL (5%) 0.3 167.0 EBUL
Slide 50: Insurance Group
Insurance Group
Slide 51: Equity Insurance Group: The Opportunity
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Equity Insurance Group : The Opportunity Opportunity in Africa & the Equity Strategic Intent Low Insurance Penetration in Africa 2.78% 2.30% 1.34% Protect Life Life Insurance & Pensions Kenya East Africa Africa • Low average insurance p
Slide 52: Equity Insurance Group: The Opportunity
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Equity Insurance Group : The Opportunity Opportunity in Africa & the Equity Strategic Intent East Africa Market & Industry Statistics HERE 2022 GDP (Billion USD) 116.64 59.25 47.00 74.54 11.04 Saving Rate 9.8% ** 11.5% 11.4% 14.3% Adequ
Slide 53: Market Positioning | Strong Start
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Market Positioning | Strong Start Equity Insurance | Life (Long Term) Insurance Kenya’s Insurance Industry Equity’s Market Positioning Kenyan Industry Premiums • Equity Group’s 1st Insurance subsidiary was operationalized • Total indust
Slide 54: Equity Insurance Holdings | Growth & Expansion
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Equity Insurance Holdings | Growth & Expansion Untapped Potential in the Captive Market Low Insurance penetration More than half of the 19 YOUR HEADLINE Average Insurance penetration in the region is 1.34%. W06I L L SIT H E01R E million
Slide 55: Africa Recovery and Resilience Plan | Strategic Alignment
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Equity Insurance Group Africa Recovery and Resilience Plan | Strategic Alignment YOUR HEADLINE W I L L SIT H E R E 55
Slide 56: Equity Insurance | Performance & Growth
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Equity Insurance | Life (Long Term) Insurance Performance & Growth | Demonstrated Distribution Capability Insurance services Revenue Net Insurance and Investment Profit Before Tax (Kes Mn) Revenue (Kes Mn) (Kes Mn) +40% YOUR HEADLINE +91
Slide 57: Equity Insurance | High returns
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Equity Insurance | Life (Long Term) Insurance High returns| Demonstrated Distribution Capability Incurred claims ratio Loss ratio Capital Adequacy Ratio (CAR) as at 31 March 2024 +42% -27% 20% 52% 15% 37% 197% Q1 2023 Q1 2024 Q1 2023 Q1
Slide 58: Equity Insurance | Performance & Growth
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Equity Insurance | Life (Long Term) Insurance Performance & Growth | Demonstrated Distribution Capability Cumulative No of Policies Issued by ELAK (in Mn) Cumulative No. of Unique Customers (in Mn) +11% +123% +3% 11.1 +37% 9.9 5.5 5.3 3
Slide 59: Technology Group
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Technology Group .6
Slide 60: The Future of Technology Group
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE The Future of Technology Group Deliver and operate a reliable and scalable mobile money platform designed to offer daily relevant products & services STRATEGY AND BUSINESS MODEL Coordinated, Agile and Extensive Tech Group Capabilities P
Slide 61: The Technology Group enabling the banking business
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE The Technology Group enabling the banking business Migrating from Fixed and variable cost channels to self-service channels 98% of our Transactions outside the branch % 90 89.4% 87.9% 88.9% 85.1% 85 83.8% Digital Channels 77.6% 75 74.9%
Slide 62: The Technology Group enabling the banking business
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE The Technology Group enabling the banking business Migrating from Fixed and variable cost channels to self-service channels Self-service channels Variable cost channels Fixed cost channels Transaction numbers in millions -26% -42% YOUR
Slide 63: The Technology Group enabling the banking business
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE The Technology Group enabling the banking business Technology enabled lending Group Disbursements Value in Kes Bn (YoY) Group Disbursements Count in Millions (YoY) -6% -9% 54.6 1.5 51.1 1.3 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Group Repaymen
Slide 64: Contribution of Non-Banking Business
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Contribution of Non-Banking Business .3
Slide 65: Business Diversification
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Business Diversification Business Contribution Diversification of Non-banking business (Figures in Kes Billion) Non-Banking Non-Banking Non-Banking Total Banking Business Total Group YOUR HEADLINE Q1 2024 EBIL EIB Finserve ELAK Contribut
Slide 66: Equity Group Foundation
Equity Group Holdings Plc Investor Briefing Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE FY 2023 PERFORMANCE Equity Group Foundation .3
Slide 67: Impact Investment and Sustainability
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Impact Investment and Sustainability Impact & Social Investment Programs % of Social investment USD 657 M in Social Investment Programs 2% 49% 8% Equity Leaders Energy and Health Program Food & Agriculture Environment Wings To Fly & Ent
Slide 68: Shared Prosperity Business Model and its Social Impact
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Impact Investment and Sustainability Shared Prosperity Business Model and its Social Impact 60,009 2023 Wings to Fly Graduates 3.8M 60,009 • 97% secondary school completion 47,009 Scholarships • 82% attained university entry grades Farm
Slide 69: Strategic Partnerships Validating the Business Model
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Strategic Partnerships Validating the Business Model 69
Slide 70: Overall Group Performance
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Overall Group Performance .3
Slide 71: Balance Sheet
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Balance Sheet KES Billion Q1 2023 Q1 2024 Growth Assets Cash & Cash Equivalents 258.4 278.5 8% Government Securities 392.5 473.2 21% Net Loans 756.3 779.2 3% Other Assets 131.0 155.0 18% Total Assets 1,538.2 1,685.9 10% Liabilities & Ca
Slide 72: Income Statement
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Income Statement KES Billion Q1 2023 Q1 2024 Growth Interest Income 32.4 43.0 33% Interest Expense 10.8 15.2 41% Net Interest Income 21.6 27.8 28% Non-Funded Income 18.1 21.8 21% Total Income 39.7 49.6 25% Loan Loss Provision 3.1 5.6 84
Slide 73: Group Performance Highlights Q1 2024
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Group Performance highlights Q1 2024 Customer Deposits (Kes) Total Income (Kes) Efficiency Ratios 1.24Tn 49.6Bn NIM 7.2% 0.4% 11% 25% CIR 47.1% 2% Net Loans (Kes) Profit Before Tax (Kes) Profitability Ratios 779.2Bn 20.4Bn ROAE 29.1% 1.
Slide 74: Financial Ratios
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Financial Ratios EBKL EBKL EBCDC EBCDC Group Group Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Profitability EVERYDAY OVER 15 MILLION MEMBERS Interest Yield from Loans & Advances 10.9% 14.3% 10.6% 9.2% 11.4% 12.9% Interest Yield from
Slide 75: Subsidiaries Contribution
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Subsidiaries Contribution Deposits Loans Total Assets EBRL Others EBRL Others EBRL Others EBUL 4% 3% 5% 5% EBUL 6% EBUL 6% 7% 7% 7% 53% EBKL 54% EBKL 53% EBKL 31% 30% 30% EBCDC EBCDC EBCDC Revenue Costs Before Provisions Profit Before T
Slide 76: 2024 Guidance Vs Actual - Group
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE 2024 Guidance Vs Actual - Group 2024 Guidance Q1 2024 Actual Loan Growth 15% - 20% 3% Deposit Growth 15% - 20% 11% Net Interest Margin 7.2% - 7.6% 7.2% Non-Funded Income Mix 40% - 43% 43.9% Cost to Income Ratio 48% - 50% 47.1% Return on
Slide 77: Appendices
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE EVERYDAY OVER 15 MILLION MEMBERS ARE TRANSFORMING AFRICA n k ( Ken ya ) L i mite d i s reg ul a te d by t he Ce ntra l Ba nk of Kenya K A R IB U M EM B ER Appendices .3
Slide 78: Market Validation
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Market Validation (Figures in Kes Billion) Market Capitalization as at 28th March 2024 2,170.9 Mkt Cap as at 28th Mar 2024 Total Assets (FY 2023) PAT (FY 2023) 1,821.4 734.6 671.1 635.0 579.7 519.8 449.6 429.0 177.9 96.6 72.2 66.9 75.8
Slide 79: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Global Ratings and Accolades 79
Slide 80: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Global Ratings and Accolades 80
Slide 81: 2023 National Banking Awards and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE 2023 National Banking Awards and Accolades 81
Slide 82: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Global Ratings and Accolades The Most Valuable and Strongest Banking Brands 2024 Equity Group, East, and Central Africa’s largest financial services Group, has been named the 5th strongest banking brand in the world. The Group is the on
Slide 83: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Global Ratings and Accolades 83
Slide 84: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Global Ratings and Accolades 84
Slide 85: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Global Ratings and Accolades Equity Group Managing Director and Chief Executive Officer, Dr. James Mwangi was recognized and awarded the prestigious Lifetime Achievement Award at the All-Africa Business Leaders Awards held at Sun City,
Slide 86: DRC presents a new frontier for sustainable growth
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE DRC, the largest country in SSA, presents a new and exciting frontier for continued sustainable growth for EGH Linchpin in world’s demand for minerals: significant untapped resource potential – largest global producer of cobalt, produ
Slide 87: The 2023 Kenya – DRC Investors' Roadshow
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE The 2023 Kenya – DRC Investors’ Roadshow Kenya Segment Equity Group hosted investors who participated in the Kenya and DRC Investors' Roadshow aimed at unlocking business networks and fostering trade and investment opportunities in Keny
Slide 88: The 2023 Kenya – DRC Investors' Roadshow
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE The 2023 Kenya – DRC Investors’ Roadshow Kenya Segment continued The Central Bank of Kenya Governor, Dr Kamau Thugge (left), Karen Guests follow proceedings during the official opening of the 2023 Kandie, Director of Parastatals Reforms
Slide 89: The 2023 Kenya – DRC Investors' Roadshow
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE The 2023 Kenya – DRC Investors’ Roadshow Delegates arrive in Kinshasa and Lubumbashi for the DRC Segment of the 2023 Kenya – DRC Investors’ Roadshow. 89
Slide 90: Macroeconomic Environment Indicators & Trends
Equity Group Holdings Plc Investor Briefing Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Q1 2024 PERFORMANCE Macroeconomic Environment .6 Indicators & Trends .25
Slide 91: Kenya: GDP growth of 5% (2024)
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Kenya: GDP growth of 5% (2024) vulnerable to tight policies and climate shocks Downsides may result from El Nino rains displacements and destruction of infrastructure, high interest rates, increased tax burden, public debt repayments an
Slide 92: Kenya: Eurobond buy back eased pressure on USD/KES
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Kenya: New USD$1.5Bn Eurobond buy back and IFB 8.5 years issue eased pressure on USD/KES and increased investors confidence on Kenya Fall in yields Kenya's New USD$1.5bn 6 Years 2031 YTD Appreciation of USD/KES Traded Weighted Average E
Slide 93: Kenya: Weaker external position amidst narrowing current account deficit
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Kenya: Weaker external position amidst a narrowing current account deficit Kenya: Official Foreign Reserves Kenya: Exchange Rate–KES/$1 USD/KES 10,000 6 180 160 132.4 9,000 140 8,000 5 120 7,179 7,000 100 3.8 4 80 6,000 60 5,000 3 40 20
Slide 94: DRC – GDP growth forecasted to decline to 4.7% in 2024
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE DRC – GDP growth forecasted to decline to 4.7% in 2024 from 6.14% in 2023 driven by slowdown in extractive economy GDP to 4.4% in 2024 from 9.1% in 2023 DRC - Copper Production Metric Tons DRC - Real GDP Growth, % 2.8M 25 3.0 2.4M 2.5 1
Slide 95: DRC – High inflation
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE DRC – High runaway inflation at 33.81% (BCC) in January 2024 and 21.32% (INS) in April 2024 to remain elevated due to high imports and CDF Depreciation DRC - Inflation and Benchmark Interest Rate DRC - Official Exchange Rate, CDF/$1 Equ
Slide 96: DRC – Current account deficit to narrow
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE DRC – Current account deficit to narrow from -5.4% of GDP in 2023 to -4.1% in 2024 and -3.2% in 2025 from strong copper and cobalt production DRC - Current Account, % of GDP DRC - Copper Price ($/mt)-Actual and Forecast 2019 2020 2021 2
Slide 97: Uganda: GDP to grow to 5.6% in 2024
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Uganda: GDP to grow from 4.8% in 2023 to 5.6% in 2024 before accelerating after oil exports Uganda: Inflation, % YoY Uganda: Inflation & Policy Rates 35.0 Uganda Annual YOY Inflation % Change 15.0 30.0 10.25 10.0 BOU Medium Term Inflation
Slide 98: Rwanda: GDP growth forecast at 7%
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Rwanda: GDP at 10% in Q4 2023 and forecasted at 7% in 2023, 2024 and 2025 driven by services sector, recovery of agriculture and mega infrastructures like Bugesera Airport Rwanda: real GDP growth, % YoY Rwanda: Inflation & Monetary Poli
Slide 99: Tanzania: GDP projected to grow steadily
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Tanzania: GDP - projected to grow steadily from 5% in 2023, to 6.5% in 2027 driven by minerals, LNG gas, services public infrastructure and government reforms opening the economy Tanzania: Quarterly Real GDP Growth, % YoY Tanzania: Infl
Slide 100: South Sudan: Rise in oil production to grow GDP
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE South Sudan: Rise in oil production and Brent oil global prices above USD$80 per barrel to grow GDP to 5.6% in 2024, and 6.8% in 2025 BOSS hiked CBR by 300bps to 15% to tame inflation and SSP depreciation South Sudan - Real GDP Growth,
Slide 101: Case Studies Equity Brand Campaign
Equity Group Holdings Plc Investor Briefing Q1 2024 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 102: Scan QR codes to download reports
Equity Group Holdings Plc Investor Briefing Q1 2024 PERFORMANCE Scan QR code below to download the Equity Group Scan QR code below to download the Africa Holdings Plc 2022 Integrated Report and Financial Recovery and Resilience Plan Statements Scan QR code below to view video: Scan QR code below to
Slide 103: Equity Centre - EquityBCDC Le Siège Social, Kinshasa
Equity Group Holdings Plc Investor Briefing Equity Centre - EquityBCDC Le Siège Social, Kinshasa
Slide 104: Equity Centre contact details
Equity Group Holdings Plc Investor Briefing Equity Centre, 9th Floor, UpperHill P.O.Box 75104, Nairobi, Tel: 0763 000 000 info@equitygroupholdings.com @keEquitybank @keEquitybank EQUITY GROUP HOLDINGS PLC AND EQUITY BANK (KENYA) LIMITED ARE REGULATED BY THE CENTRAL BANK OF KENYA.
Equity Group Holdings — Q1 2024 Earnings Presentation on 6ix