Absa PLC Financial Statements The Board of Directors of is pleased to announce the audited group results for the year ended 31 December 2020

Bank Group Bank December December December December December December 2019 2020 2019 2020 2019 2020 I Statement of financial position as at 31 December 2020 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Audited Audited Audited Audited Audited Audited A Assets III Other disclosures 1 Cash balances (both local and foreign) 7,091,076 5,829,269 7,091,076 5,829,269 2 Balances due from of Kenya 21,716,447 12,430,538 21,716,446 12,430,538 1) Non-performing and advances 3 Kenya Government and other securities held for dealing purposes 43,774,296 36,375,211 43,774,296 36,375,211 a) Gross non-performing loans and advances 13,518,692 17,099,144 4 Financial Assets at fair value through profit and loss - - - - b) Less: interest in suspense 2,601,418 2,432,972 5 Investment Securities: - - - - c) Total non performing loans and advances 10,917,274 14,666,172 a) Held to maturity: - - - - d) less: loss provisions 7,807,800 9,722,309 a. Kenya Government securities - - - - e) Net non performing loans (c-d) 3,109,474 4,943,863 b. Other securities - - - - f) Discounted value of securities 1,981,629 3,651,088 b) Fair value through other comprehensive income (FVOCI): 78,785,265 89,164,217 79,221,471 89,681,995 g) Net NPLs (excess)/exposure (e-f) 1,127,845 1,292,775 a. Kenya Government securities 78,785,265 89,164,217 79,221,471 89,681,995 2) Insider loans and advances b. Other securities - - - - a) Directors, shareholders and associates 39,330 37,019 6 Deposits and balances due from local banking institutions 2,000,000 2,718,500 2,000,000 2,718,500 b) Employees 10,340,168 10,053,555 7 Deposits and balances due from banking institutions abroad 1,803,084 2,929,648 1,803,084 2,929,648 c) Total insider loans and advances 10,379,498 10,090,574 8 Tax recoverable 292,160 773,099 424,950 993,112 3) Off balance sheet items 9 Loans and advances to customers (net) 194,894,941 208,854,694 194,894,941 208,854,694 a) Letters of credit, guarantees, acceptances 23,208,133 32,065,910 10 Balances due from banking institutions in the group 9,203,788 2,933,836 8,702,992 2,675,696 b) Forwards, swaps and options 103,646,010 93,379,388 11 Investment in associates - - - - c) Other contingent liabilities - - 12 Investment in subsidiary companies 372,761 427,751 - - d) Total contingent liabilities 126,854,143 125,445,298 13 Investment in joint ventures - - - - 4 Capital strength 14 Investment properties - - - - a) Core capital 38,706,623 43,715,442 15 Property and equipment 2,889,187 2,855,402 2,889,401 2,855,555 b) Minimum statutory capital 1,000,000 1,000,000 16 Prepaid operating rental leases 35,299 34,236 35,299 34,236 c) Excess/(deficiency) 37,706,623 42,715,442 17 Intangible assets 538,836 342,673 617,994 414,449 d) Supplementary capital 7,601,251 8,193,742 18 Deferred tax 3,097,482 3,141,054 3,123,014 3,187,961 e) Total capital 46,307,874 51,909,184 19 Retirement benefit asset - 71,668 - 71,668 f) Total risk weighted assets 277,812,947 297,314,183 20 Other assets 7,614,578 9,053,976 7,686,827 10,388,144 g) Core capital/total deposit liabilities 16.3% 17.3% 21 Total assets 374,109,200 377,935,772 373,981,791 379,440,676 h) Minimum statutory ratio 8.0% 8.0% i) Excess/(deficiency) 8.3% 9.3% B Liabilities j) Core capital/total risk weighted assets 13.9% 14.7% 22 Balances due to - - - - k) Minimum statutory ratio 10.5% 10.5% 23 Customers' deposits 238,291,230 253,630,105 237,738,654 253,630,105 l) Excess/(deficiency) 3.4% 4.2% 24 Deposits and balances due to banking institutions (Local) 3,753,767 3,844,866 3,753,767 3,844,866 m) Total capital/total risk weighted assets 16.6% 17.5% 25 Deposits and balances due to banking institutions (Foreign) 329,655 230,900 329,655 230,900 n) Minimum statutory ratio 14.5% 14.5% 26 Other money market deposits - - - - o) Excess/(deficiency) 2.1% 3.0% 27 Borrowed funds - - - - p) Adjusted core capital/total deposit liabilities* 16.8% 17.5% 28 Balances due to banking institutions in the group 72,688,316 58,277,071 71,977,669 58,240,341 q) Adjusted core capital/total risk weighted assets* 14.3% 14.8% 29 Tax payable - - - - r) Adjusted total capital/total risk weighted assets* 17.0% 17.6% 30 Dividends payable - - - 5 Liquidity 31 Deferred tax liability - - - - a) Liquidity ratio 39.8% 38.7% 32 Retirement benefit liability - - - - b) Minimum statutory ratio 20.0% 20.0% 33 Other liabilities 14,966,818 16,983,547 14,992,630 16,990,525 c) Excess/(deficiency) 19.8% 18.7% 34 Total liabilities 330,029,786 332,966,489 328,792,375 332,936,737

C Shareholders' Funds 35 Paid up/assigned capital 2,715,768 2,715,768 2,715,768 2,715,768 Dividends 36 Share premium/(discount) - - - - The Board of Directors do not recommend payment of a dividend in 2020. 37 Revaluation reserves 275,528 1,071,236 281,247 1,081,930 38 Retained earnings/(accumulated losses) 35,990,855 40,999,674 37,095,138 42,523,636 Annual General Meeting 39 Statutory loan loss reserve - - - - A virtual general meeting will be held on 27th May 2021. 40 Other reserves 208,881 182,605 208,881 182,605 41 Proposed dividend 4,888,382 - 4,888,382 - Message from the Directors 42 Capital grants - - - - The above consolidated statement of comprehensive income and statement of financial position are extracts of the Group’s and 43 Total shareholders' funds 44,079,414 44,969,283 45,189,416 46,503,939 Bank’s financial statements which have been audited by Ernst & Young LLP and can be accessed on the institution’s website 44 Minority interest - - - www.absabank.co.ke 45 Total liabilities and total shareholders funds 374,109,200 377,935,772 373,981,791 379,440,676 They may also be accessed at the institution’s Head Office at Absa Bank Headquarters, Waiyaki Way. II Statement of comprehensive income 1.0 Interest income They were approved by the Board of Directors on Tuesday, 23rd March 2021 and signed on its behalf by: 1.1 Loans and advances to customers 22,544,646 22,303,047 22,544,646 22,303,047 1.2 Government securities 8,065,268 8,924,100 8,101,769 8,970,618 Charles Muchene Jeremy Awori Loise Gakumo 1.3 Deposits and placements with banking institutions 377,506 166,428 377,506 166,428 Chairman Managing Director Company Secretary 1.4 Other interest income - - - - 1.5 Total interest income 30,987,420 31,393,575 31,023,921 31,440,093 2.0 Interest expense 2.1 Customer deposits 6,466,845 6,038,015 6,454,616 5,984,154 2.2 Deposits and placements with banking institutions 1,255,049 1,892,645 1,252,044 1,892,644 2.3 Other interest expenses 138,722 182,041 138,722 182,041 2.4 Total interest expenses 7,860,616 8,112,701 7,845,382 8,058,839 3.0 Net interest income 23,126,804 23,280,874 23,178,539 23,381,254 4.0 Non-interest income 4.1 Fees and commissions income on loans & advances 1,410,349 1,257,897 1,410,349 1,257,897 4.2 Other fees and commissions 4,125,135 3,414,733 4,710,388 4,259,828 4.3 Foreign exchange trading income 3,640,577 4,447,966 3,640,577 4,447,966 4.4 Dividend income - - - - 4.5 Other income 841,964 1,184,513 826,998 1,174,613 4.6 Total non-interest income 10,018,025 10,305,109 10,588,312 11,140,304 5.0 Total operating income 33,144,829 33,585,983 33,766,851 34,521,558 6.0 Operating expenses 6.1 Loan loss provision 4,199,411 9,026,783 4,200,588 9,026,772 6.2 Staff costs 9,999,145 9,455,599 10,158,447 9,761,649 6.3 Directors emoluments 172,623 223,980 178,783 234,214 6.4 Rental charge 92,887 124,499 93,371 124,499 6.5 Depreciation on property and equipment 1,069,667 987,433 1,069,728 987,494 6.6 Amortisation charges 391,749 313,771 392,501 323,605 6.7 Other operating expenses 5,361,875 5,154,058 5,392,198 5,215,105 6.8 Total operating expenses 21,287,357 25,286,123 21,485,616 25,673,338 7.0 Profit before tax and exceptional items 11,857,472 8,299,860 12,281,235 8,848,220 8 Exceptional items 1,528,986 3,201,219 1,528,986 3,201,987 9 Profit after exceptional items 10,328,486 5,098,641 10,752,249 5,646,233 10 Current tax (3,884,767) (1,757,727) (4,021,267) (1,910,289) 11 Deferred tax 717,727 402,530 725,095 426,065 12 Profit after tax and exceptional items 7,161,446 3,743,444 7,456,077 4,162,009 13 Other comprehensive Income 13.1 Gains/(losses) from translating the financial statements of foreign operations 13.2 Fair value changes in available for sale financial assets (361,612) 1,136,914 (355,299) 1,144,020 13.3 Revaluation surplus on property, plant and equipment 13.4 Share of other comprehensive income of associates 13.5 Income tax relating to components of other comprehensive income 108,484 (341,205) 106,590 (343,337) 14 Other comprehensive income for the year net of tax (253,128) 795,709 (248,709) 800,683 15 Total comprehensive income for the year 6,908,318 4,539,153 7,207,368 4,962,692

Earnings per share (Shs) 1.32 0.69 1.37 0.77 Terms and conditions apply. Dividends per share (Shs) 1.10 - 1.10 -

Absa Bank Kenya PLC is regulated by the Central Bank of Kenya. Summarised Statement of Cash Flows For the year ended 31 December 2020

2020 2019 Shs' millions Shs' millions

Net cash (used)/generated from operating activities (2,252) 6,522

Cashflows from investing activities

Purchase of property and equipment (555) (1,711)

Proceeds from disposal of property and equipment - 130

Purchase of intangible assets (120) (136)

Net cash used in investing activities (675) (1,717)

Cash flows from financing activities

Proceeds from borrowings - 2,532

Repayment of principal portion of lease liabilities (412) (447)

Dividends paid (3,663) (5,974)

Net cash used in financing activities (4,075) (3,889)

Net (decrease)/increase in cash and cash equivalents (7,002) 916

Cash and cash equivalents as 1 January 20,131 19,215

Cash and cash equivalents at 31 December 13,129 20,131

Cash and cash equivalents 2020 2019

Shs' millions Shs' millions

Cash in hand 5,829 7,091

Non-cash reserve ratio balances with CBK 1,652 9,237

Loans and advances to 5,648 3,803 13,129 20,131 Summary Consolidated Statement of Changes in Equity

Share capital Other Retained Proposed Total reserves earnings dividends Shs '000' Shs '000' Shs '000' Shs '000' Shs '000'

As at 1 January 2020 2,715,768 490,128 37,095,138 4,888,382 45,189,416

Profit for the year - 4,162,010 - 4,162,010

Other comprehensive income for the year - 800,683 41,488 - 842,171

Total comprehensive income for the year - 800,683 4,203,498 - 5,004,181

Issue of ordinary shares under share-based payment plans - (26,276) - - (26,276)

Final for 2019 paid - - - (3,663,382) (3,663,382)

Dividend waived - - 1,225,000 (1,225,000) -

Balance as at 31 December 2020 2,715,768 1,264,535 42,523,636 - 46,503,939 A year of commitment to Kenya

One year ago, we started a new chapter for our business as we We rolled out a comprehensive support program for changed our brand and corporate name to Absa and renewed 2 our customers and clients 5 We launched new exciting products and services our commitment to this country; a commitment to bringing for our customers possibilities to life for our customers. We provided our customers with financial relief options that supported them to navigate through the effects of the • We launched a first-in- the-market vertical Looking back on the journey we have travelled and the pandemic and continued lending to support the economy. debit and credit cards with contactless milestones we have achieved, we are filled with gratitude to all technology our stakeholders not just for supporting our business, but for For our SME customers, we offered specific capacity building programmes to equip them with the necessary skills to joining hands to ensure that we all play a part in keeping our • We revamped our SME Wezesha Biashara overcome the challenges presented by the pandemic. economy going. proposition offering unsecured loans of up to KES 10M, which is the highest in the We thank our customers across the board, and indeed the market, as well as LPO financing and invoice people of this great country we proudly call home, for receiving discounting of up to KES 50M amongst other our brand warmly and allowing us to be part of their story. KES benefits.

When we embarked on the brand transition, we set out to fully KES 103B 56% to business • We introduced our new Absa One Account, transform our business into a truly customer-obsessed new lending customers an all-in-one account with no minimum organisation; one that puts the customer right at the centre of to the economy balance requirement and no monthly fees. all decisions, propositions and initiatives. The Absa One account offers unsecured loans of up to KES 6M for individuals and In many ways, Covid-19 really challenged us to live up to these KES 10M for businesses. commitments and by being agile, we continue to deliver our Repayment holiday extended to 40%+ of total loan accounts promise to all our stakeholders. 2% Wholesale loans • We launched our Asset Management business with market leading investments products for retail and institutional

KES clients. KES 62B 59,000 We made employee safety and wellness our Customers 37% Credit 1 topmost priority in customer loans relief Supported cards 60% Daily self screening completed by colleagues to mitigate contagion risk Representing 30% Mortgages of the loan book Personal loans Distribution of PPEs to mitigate the risk of transmission in the working environment We elevated our focus on operations to 3 Enhanced our cleaning and sanitation procedures ensure uninterrupted business continuity to allow for regular and thorough cleaning and Instituted rotational 30% improvement in disinfection of shared spaces working arrangement onboarding turn for back-office around time Wellness support partnering with wellness players for care calls to staff on overall wellbeing and help manage anxiety levels 99.8% Uptime on 100% Continuity Management Instituted rotational teams Alternate of branches to ensure continuity in case of adverse infection Channels open Operational rates focus

Driving productivity through digital tools and broad +12 improvement based virtual methods for enhanced daily communi- Elevated technology in our Branch NPS cation with colleagues and cyber surveillance to Score to 52 the highest level Absa employees donating masks and foodstuff to the community Support to setup home offices with suitable furniture and PC’s

4 We extended our Force For Good in the community At Absa, we will continue to execute our strategy to become the best bank in customer experience 55% Over KES 50M KES 13M invested as an enabler for growth. For us, growth means; of colleagues contributed to towards the fight growing with our customers, the Kenyan economy “permanently” COVID-19 Fund against the pandemic working and returns to shareholders. from home Board which funded through various various initiatives to colleague-led initiatives. fight the pandemic We are clear on our priorities for the next year, as 60% we seek to make a positive impact in the lives of of colleagues Over 210,000 surgical masks donated to frontline medical workers in our fellow Kenyans and the country at large. enabled to work public hospitals and 20,000 reusable masks to bodaboda riders and other remotely at-risk communities, while also providing them with psychosocial support ~Jeremy Awori in partnership with our wellness partners.

Absa Bank Kenya PLC is regulated by the Central Bank of Kenya