Absa Bank Kenya Plc · NSEKE:ABSA
Absa Bank Kenya — H1 2024 Earnings Presentation
25 slides from Absa Bank Kenya's earnings presentation, 2024
Slide 1: Absa Bank Kenya Investor Relations
f_N {absa) ar - Absa Bank Kenya rc) Investor Relations
Slide 2: Agenda
1 2 4 Business overview Financial performance Guidance Strategic outlook Your story matters S
Slide 3: Business Overview
Your story matters {absa] y Gos9) Business Overview Abdi Mohamed Chief Executive Officer
Slide 4: Feb Mar Apr
2021 2022 2023 2024F 2025F Feb Mar Apr May Jun July
Slide 5: Strategic Pillars and Enablers
Strategic Pillar 1 Strategic Pillar 2 Strategic Pillar 3 Strategic Enabler 1 Strategic Enabler 2 Strategic Enabler 3
Slide 6: Continued supporting our customers with financial and non-financial skills
Continued supporting our customers with financial and …and through a tough …while sustaining innovation to non-financial skills to support their growth ambitions operating environment meet their evolving needs
Slide 7: Our diaspora proposition and distribution reach
Distribution reach Our diaspora proposition Large Africa footprint with global offices 16% 30% 3% 3% 3% 4% 8% 9% 24% Middle East United States United Kingdom Australia Canada Germany Kiribati South Africa Others
Slide 8: Our brand re-positioning: Your Story Matters
rr Our Brand re-positioning: We have made significant progress in bringing ournew We brand promise “Your Story Matters” to life, further growing our brand equity y Strong performance on key metrics E We can’t wait to Your story * peat voune tol A 20% increase in both should be consideration and conn
Slide 9: Gender Diversity, Hires to support growth, Colleague experience index
Gender Diversity Hires to support growth Colleague experience index Job satisfaction index 1% 6% 9
Slide 10: Sustainable finance, including climate finance
(In KES unless stated otherwise) Sustainable finance, H12024 Since including Inception climate finance Advanced to Total Students start-ups benefitting and youth through our Timiza platform Trained on Graduated procurement with inspire Advanced readiness ME towards MSMEs with 30% of this being to wo
Slide 11: In conclusion: positive progress in execution of our strategy
H1 2024 Investor Briefing In conclusion: We are making positive progress in execution of our strategy = We have made significant progress in executing our strategy with = strong financial and non-financial results — We have recorded impressive growth in our customer numbers across our business signi
Slide 12: Financial Performance
Your story matters {absa} y Gos9) Financial Performance
Slide 13: Loans and deposits trend
(In KES bn unless stated otherwise) YoY -0.5% YoY +6% 363 336 355 331 354 353 327 318 316 333 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 • ▪ • ▪
Slide 14: Net interest income and non-funded income
(In KES bn unless stated otherwise) 16% 8.8 8% NFI 8.1 23.0 19.2 NII 20%
Slide 15: Operating expenses
Other operating expenses Rental Cost Staff Cost 484 60 3,991 5,602 10,137 (In KES mn unless stated otherwise) Depr. & amortisation 12% Other operating expenses Rental Cost Staff Cost 553 31 4,634 11,386 6,168 Depr. & amortisation
Slide 16: Customer assets, deposits and loan loss ratio
(In KES bn unless stated otherwise) 318 316 289 Industry 16.6% 2 234 209 Customer 195 Assets 11.2% 4.3% 9.2% 3.3% 3.3% 2.2% 2.3% 2.0% Loan Loss Ratio Portfolio 2019 2020 2021 2022 H1 2023 MEV1 Recoveries H1 2024 Quality
Slide 17: P&L Indicators H1 2023 H1 2024
P&L Indicators H1 2023 H1 2024 Comment Net Interest Income Non Funded Income 17
Slide 18: Cost-to-income ratio improved markedly with profitability supporting better ROE
oN (absa] +1 2024 Investor Briefing QW Cost-to-income ratio improved markedly with profitability supporting better ROE Indicators H1 2023 H1 2024 Cost-to-Income Ratio 37.1% Marked improvement (130 bps) ©) Loan Loss Rate 3.3% 3.3% Maintained due to prudent recoveries So) Yield on Loans 12.8% 16.0% Im
Slide 19: 35.2% 28.7% 18.6% 17.7% 14.8% 13.5%
35.2% 28.7% 18.6% 17.7% 14.8% 13.5%
Slide 20: Guidance: Our strategy supports a positive medium-term guidance
20 Guidance : Our strategy supports a positive medium-term guidance
Slide 21: Your story matters
Your story matters Goss) XY
Slide 22: Recap: significant progress in execution of our strategy
Recap : We have made significant progress in execution of our strategy with strong financial and non-financial results H1 2024 performance highlights Aleading Corpor Investment AHome Adigitally of Talent & Powered Diversity Business Return on Equity 29.3% +320bps 22 With clear execution focus areas
Slide 23: We are delivering incremental returns for our shareholders
we are delivering incremental returns for our shareholders -o The Board of Directors has approved over the cycles — 1.55 the payment ofan interim dividend 1.35 Total for the year 2024 of Kshs. 0.20 per Dividend 11 . : rdinary share of the Cor tobe Per Share SE EITNS TM paid on or about Tuesday, 15 O
Slide 24: Disclaimer
Disclaimer Forward-looking statements Certain statements in this document are forward looking that relate to, among other things, the plans, objectives, goals, strategies, future operations and performance of Absa Bank Kenya PLC . Words such as “anticipates”, “estimates”, “expects”, “projects”, “bel
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