Q1 2021 RESULTS

Q1 2021 Results 1 Group Overview

Q1 2021 Results 2 Our purpose and thrust

KCB 2020-2023 Beyond banking Customer first, with strategy leading value propositions

Digital leader & Simplifying digital to the core your world to enable your progress Step change in efficiency & productivity

Scale to achieve regional relevance

Q1 2021 Results 3 Our Footprint

26.2 M Customers 7,487 Staff

355 Branches 1,101 ATMs 24,924 Agents & POS / Merchants

Kenya Bank National Bank of KCB Bank KCB Bank KCB Bank KCB Bank KCB Bank Ethiopia Rep Kenya Kenya Tanzania Burundi Rwanda Uganda South Sudan Office Branches 202 Branches and agencies 94 Branches 14 Branches 6 Branches 13 Branches 13 Branches 13 1 Staff ATMs 396 ATMs 105 ATMs 15 ATMs 7 ATMs 26 ATMs 15 ATMs 4 Agents 13,849 Agents 443 Agents 220 Agents 195 Agents 480 Agents 420 Agents 43 Staff 4,848 Staff 1,605 Staff 282 Staff 129 Staff 244 Staff 264 Staff 116

Other investments: KCB Insurance Agency, KCB Foundation, KCB Capital

Q1 2021 Results 4 Regional Businesses Update

NBK UPDATE Scaling to • Integration for back office processes ongoing achieve regional • The Group advanced a tier II debt of US$ 30 million in April 2021 to NBK to relevance enable the subsidiary meet the capital requirements and bolster its activities. 100% BPR & BancABC ACQUISITIONS UPDATE Stake the Group • Transaction undergoing shareholder and regulatory approvals. seeks to acquire in • Key benefits include: BPR and BancABC • expanded regional footprint • increased stakeholder value • operational and financial synergies • enhancement of financial inclusivity • sustainability and effective competition. • Aggregate completion consideration that would be payable by KCB for acquisition of the 100% of the two entities is estimated at US$ 56.9 million.

More details on the circular to shareholders available on www.kcbgroup.com/investor-relations

Q1 2021 Results 5 Ratings and awards

KCB BANK KENYA Financial Reporting Rating: B2 Credit rating affirmed KCB’s: • Solid profitability metrics (FiRe) Awards Outlook: Negative • Stable deposit-based • Best overall. funding structure, and; • Best in Kenya. • Strong capital buffers • Best among banks and listed companies.

Q1 2021 Results 6 Macroeconomic Highlights

Q1 2021 Results 7 Kenya Banking Sector Highlights

Kenya operating environment KENYA BANKING SECTOR PBT. highlights Banking sector PBT in 2020. Down 29.5% YoY driven by a Kes 112.1B 179% growth in loan loss provisions. Kenya’s banking sector remained stable and resilient in the face of the pandemic with EXPIRY OF EMERGENCY MEASURES ON RESTRUCTURING OF LOANS strong liquidity and The provision of regulatory flexibility to banks by CBK for COVID-19 related loan capital adequacy ratios. restructuring expired on 2 March 2021. The standard procedures for loan classification and provisioning now apply.

Q1 2021 Results 8 Kenya Macro Economic Highlights

Kenya GDP Selected Kenya Quarterly GDP Performance(%) Performance 6.1 6.0 5.2 5.8 4.9 GDP contracted by 4.4 0.5% during the first Q2 2020 Q3 2020 nine months of 2020 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019 Q1 2020 due to economic -1.1 disruptions occasioned -5.7 by the Covid-19 pandemic Drivers of Q3 2020 GDP Performance(%)

30 18.2 20 16.2 7.3 6.3 5.6 10 5.3 5.3 2.9 1.2 6.9 4.3 19.7 2.1 6.9 9.1 7.9 8.7 9.5 4.1 Kenya GDP Growth(%) 0 Mining Const ICT Agriculture Health Finance & Real Transport Trade Manufact Education -10 4.7 Ins Estate & Storage -2.5 -3.2 -20

1.0 -30 -41.9 -40 2020 2021 Estimated Projected -50 GDP Contribution GDP Growth

Source: IMF and KNBS Q1 2021 Results Source: KNBS & IMF 9 Regional GDP Performance South Sudan Ethiopia Contracted by 6.6 in 2020 and Growth of 6.1% in 2020. Growth will grow by 5.3% in 2021 driven of 2.0% driven by resilience in by a recovery in oil prices agricultural production and foreign SSA GDP Growth(%) investments Uganda 3.4 Contracted by 2.1% in 2020. Rebound to 6.3% in 2021 2020 Kenya driven by agriculture, services Estimated Contraction of 0.1% in 2020. To grow and industrial growth 2021 by 7.6% in 2021 driven by recovery Projected Rwanda in the services sectors particularly -1.9 Contracted by 0.2% in 2020. education and manufacturing as well Growth of 5.7% in 2021 driven as resilience in agriculture Optimism for recovery by improvements in the in 2021 as more business environment and Tanzania vaccine deployment investment in major growth Growth of 1.0% in 2020. To expand enable resumption of sectors by 2.7% in 2021 driven by robust economic activities domestic demand and Burundi infrastructure development Contracted by 1.3% in 2020. Growth of 2.8% in 2021 driven by resumption of foreign aid improved coffee exports and increase in public investment Source: IMF World Economic Outlook (April 2021) Q1 2021 Results 10 Macro Economic Highlights

Performance of regional currencies against USD; Q1 21 vs Q1 20 (%)

Uganda Shilling Tanzania Shilling Burundi Franc Kenya Shilling Rwanda Franc South Sudan Pound Local currencies 3.6 continue to be strained as a result of the -0.4 COVID-19 pandemic -3.3 impact on balance of -4.8 -5.2 payments

-18.1 Current account deficit, GDP % Kenya Uganda Tanzania Rwanda Burundi South Sudan

-2.2 -2.7 -4.8 -4.3 -4.5 -5.8 -5.3 -5.7 -9.1 -8.4 -12.4 -12.2 -11.7 -11.9 -12.5 -13.3 -15.7 2019 2020 2021 Projected

-23.3

Q1 2021 Results 11 Macro Economic Highlights

Inflation rates (%) 46.8 40.4

Inflation remained 13.1 moderate in most countries in the region 7.1 7.6 5.8 5.9 on account of reduced 3.4 3.2 3.0 4.1 prices of locally 1.7

produced food items. Tanzania Uganda Rwanda Kenya Burundi South Sudan Q1 20 Q1 21 Central Bank rates (%) 15.0 15.0 12.0 12.0 9.0 7.3 7.0 7.0 6.0 6.6 5.0 4.5

Rwanda Burundi Kenya Uganda Tanzania South Sudan Mar-20 Mar-21

Q1 2021 Results 12 Channel Performance

Q1 2021 Results 13 Channel Performance

OUR CHANNEL CONTRIBUTION Proportion of number of transactions per customer touch point in Q1 21

97% of transactions performed outside the branch channels. Agency, intenet and Mobile, 79% POS, 16%

35% Branch teller, 3% decline in non-branch revenue by Kes 885 M ATMs, 2% due to waiver of mobile banking fees and reduced mobile lending.

Q1 2021 Results 14 Channel Performance

MOBILE BANKING Value of mobile transactions (Kes B) Number of mobile transactions (M) 655 181% 87 Value of mobile banking 58 transactions grew to Kes 233 655B driven by a 12X growth in mobile banking deposits. Q1 20 Q1 21 Q1 20 Q1 21 Mobile revenue (Kes M) Mobile transaction type

2,521 B2C, 43% 15% Decline in mobile banking 1,447 Float revenues due to fee Purchase, waivers and reduced 40% mobile lending. C2B, 37% Lipa karo, 1% B2B, 7% Q1 20 Q1 21

Q1 2021 Results 15 Channel Performance

MOBILE LOANS Value of mobile loans advanced (Kes B)

28% 50 Q1 20 Decline in total mobile loans advanced driven Q1 21 by a 51% decrease in 36 KCB Mpesa disbursements 22 21 22

11 5 4

Total Mobile loans Fuliza KCB Mpesa Mobi loan

Q1 2021 Results 16 Channel Performance

Value of transactions (Kes B) Number of transactions (M) 150 14 AGENCY BANKING

93

62% 13 Growth in Agency Banking Volumes to Kes 150 Q1 20 Q1 21 Q1 20 Q1 21 billion due to continued shift to digital channels. Agency revenue (Kes M) Agency transactions type 124 Others*, 1% Cash deposit, 83 32% Balance enquiry, 39%

Cash withdrawal, 13% School fees, 15% Q1 20 Q1 21 *Others: Account opening, mini statement, load cards and funds transfer Q1 2021 Results 17 Channel Performance

Value of transactions (Kes B) Number of transactions (M) ATMs 70 4 11% 3 Increase in ATM volumes 63 driven by 58% growth in ATM deposit values to Kes 43 billion Q1 20 Q1 21 Q1 20 Q1 21

Value of ATM deposits (Kes B) ATM revenue (Kes M) 61% 43 117 Proportion of ATM cash 89 deposit values sustaining 27 ATMs as a net deposit mobilizer.

Q1 20 Q1 21 Q1 20 Q1 21 Q1 2021 Results 18 Channel Performance

MERCHANT/POS & Value of POS transactions (Kes B) POS revenue (Kes M) INTERNET BANKING 14 225 11 24% Increase in POS volumes 204 to Kes 14 billion

Q1 20 Q1 21 Q1 20 Q1 21 Number of iBank transactions (M) iBank revenue (Kes M) 109% 1.0 71 Increase in internet banking revenue due to signing up of 96% of the 0.6 34 eligible customer base.

Q1 20 Q1 21 Q1 20 Q1 21 Q1 2021 Results 19 Vooma Performance

Payments

Number of Wallets (M) Number of Merchants (K) Number of Agents (K)

0.5 165 16

Increase in recruitment of customer & partner base to grow utilization of payment services. Q1 21 Q1 21 Q1 21

Q1 2021 Results 20 Financial Performance

Q1 2021 Results 21 Balance Sheet Highlights

Government Securities Kes 212.5B 3.2% Kes 203.7B growth in total assets to Kes 977.5 billion Net Loans & Advances Kes 597.1B Kes 553.9B 76% of total assets are in KCB Bank Customer Deposits Kenya. Kes 749.4B Kes 740.4B

Total Assets Kes 977.5B Kes 947.1B

Q1 20 Q1 21

Q1 2021 Results 22 Loan Book Performance

Sectoral Loans Comparison Q1 20 Industry Kenya Q1 20

Personal/Household 36.9% 28.1% 38.5% Stable Loan Real Estate 17.2% 14.6% 18.5% Book distribution Manufacturing 12.3% 13.8% 14.3% over the period. Trade 7.9% 4.1% 6.4% Building and Construction 6.9% 17.3% 6.8% Transport and Communication 4.4% 7.4% 4.8% Tourism,Restaurant and Hotels 4.4% 3.4% 4.4% Agriculture 4.3% 3.6% 2.9% Energy and Water 2.7% 3.7% 1.8% 10% Financial Services 2.7% 3.2% 1.5% Growth in Gross 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Loans driven by Group Gross Loans (Kes B) personal and manufacturing 24 660 19% sectors 36 LCY FCY 600 81%

Mar-20 Retail Corporate Mar-21 Q1 2021 Results 23 Loan Book Performance

Asset Quality Review 98 66 16 44 39 80 14.8% 74.6 67.7 14 62.9 63.9 70 65.3 65.2 Group NPL ratio. 12 61.0 60.8 60 Increase driven by 10 11.1 14.8 50 corporate business 8 9.8 40 6 7.7 30 4 2.8 20 2.1 1.7 2 0.6 10 0 0 Q1 18 Q1 19 Q1 20 Q1 21 NPL Group (%) CoR (%) CBK Coverage Ratio (%) IFRS Coverage Ratio (%) Gross NPL (Kes B) 14.5% NPL Breakdown Industry NPL (Kenya) 19.3% as at February 2021, 16.4% up from 14.1% in 13.6% December 2020 8.3% 9.6% 8.2% 2.4% 2.8%

CHECK OFF MORTGAGE CORPORATE SME & MICRO LCY FCY Q1 20 HY 20 FY 20 Q1 21

Q1 2021 Results 24 Restructured Loans

Sectoral distribution of KCB’s restructured loans 18.8% 4500 4,197 35 Proportion of KCB 4000 29.6 restructured loan book 30 with a value of Kes 3500 102.5 billion. 25 3000

20 2500 16.9

2000 19.0% 13.5 13.5 15 Proportion of the 1500 10.6 8.5 10 outstanding Kenya 937 banking sector 1000 782 5.2 restructured loans as 499 5 500 307 267 3.1 at end February 2021 225 149 132 1.6 valued at Kes 569.3 0 0 billion REAL ESTATE TOURISM, PERSONAL MANUFACTURING BUILDING & TRADE TRANSPORT & FINANCIAL OTHERS RESTAURANT & CONSTRUCTION COMMUNICATION SERVICES HOTELS Value (Kes B) Count

Q1 2021 Results 25 Customer Deposits

Deposit Mix Currency Mix Balanced Deposit Mix 17% Low cost and stable Retail, 45% Retail, 47% funding mix driven by growth in demand deposits Corporate, Corporate, 55% 53% 83%

LCY FCY Q1 20 Q1 21 Deposits by type Q1 20 Deposits by type Q1 21 7% 6%

21% 21%

6% 7% 65% 67%

Demand Savings Term Call Q1 2021 Results 26 Capital Ratios Core Capital to RWA headroom (%) Total Capital to RWA headroom (%) Group Group

7.6 6.6 7.7 7.3 All capital ratios 5.0 4.5 adequate and above the internal and regulatory limits 10.5 10.5 10.5 14.5 14.5 14.5

Q1 19 Q1 20 Q1 21 Q1 19 Q1 20 Q1 21

Kenya Kenya

5.9 4.7 5.7 5.4 3.2 2.7

10.5 10.5 10.5 14.5 14.5 14.5

Q1 19 Q1 20 Q1 21 Q1 19 Q1 20 Q1 21 Min. Core / RWA Headroom Min. Total / RWA Headroom

Q1 2021 Results 27 Group P&L Highlights

Net Interest Income Kes 16.7B 2.2% Kes 15.1B growth in PBT driven by 11.1% growth in net interest income Total Non Interest Income and cost containment Kes 6.3B Kes 7.9B

Operating Expenses 1.8% Kes (11.1B) growth in PAT to Kes (11.1B) Kes 6.4 billion

Profit Before Tax Kes 9.1B Kes 8.9B

Q1 20 Q1 21

Q1 2021 Results 28 Key subsidiary P&L highlights

Kes 1.3B Profit before tax (Kes M) PBT contribution from 290 subsidiaries outside 258 251 of KCB Bank Kenya; 234 17% growth 203 191 186 193 165 141 140 122 14% 98 54 PBT contribution from subsidiaries outside of KCB Bank Kenya NBK KCB Tanzania KCB Rwanda KCB South Sudan KCB Insurance KCB Burundi KCB Uganda Agency Q1 20 Q1 21

Q1 2021 Results 29 Statement of Financial Position KCB Group KCB Bank Kenya Actual Actual Y-O-Y Actual Actual Y-O-Y Strong and Kes Billion Q1 20 Q1 21 Change Q1 20 Q1 21 Change healthy balance sheet Cash and balances with central bank 55.9 47.2 (15%) 43.6 35.5 (18%)

3.2% growth in total Balances with other institutions 50.1 38.3 (23%) 25.6 12.9 (50%) Investments in Government & Other assets driven by 203.7 212.5 4% 145.8 141.1 (3%) Kes 43 billion loan securities growth Net loans and advances 553.9 597.1 8% 463.1 496.2 7% Fixed assets 26.5 24.9 (6%) 16.1 15.6 (4%) Other assets 57.1 57.3 - 34.8 43.1 24% Total Assets 947.1 977.5 3% 728.9 744.5 2%

Customer deposits 740.4 749.4 1% 580.1 569.3 (2%) Balances due to other banks 13.3 17.2 30% 3.1 4.7 48% Long-term debt 22.0 36.0 64% 28.2 29.7 5% Other liabilities 35.8 27.4 (24%) 19.2 33.9 77% Total Liabilities 811.5 830.0 2% 630.7 637.6 1% Shareholders’ equity 135.5 147.5 9% 98.2 106.9 9% Total liabilities and equity 947.1 977.5 3% 728.9 744.5 2%

Q1 2021 Results 30 Statement of Profit or Loss KCB Group KCB Bank Kenya Actual Actual Y-O-Y Actual Actual Y-O-Y 2% Kes Billion Q1 20 Q1 21 Change Q1 20 Q1 21 Change Interest income 20.2 22.0 9% 15.8 17.0 8% growth in profit after tax to Kes 6.4 billion Interest expense (5.2) (5.2) 2% (3.9) (3.7) (3%) Net interest income 15.1 16.7 11% 11.9 13.3 12% Foreign exchange income 1.5 1.2 20% 1.0 0.7 (26%) Net fees and commissions 5.4 4.0 (26%) 4.5 2.9 (35%) Other income 1.0 1.2 13% 0.7 0.8 8%

Total other operating income 7.9 6.3 (20%) 6.2 4.4 (28%)

Total other operating expenses (11.1) (11.1) (1%) (7.7) (7.4) (4%)

Provisions for bad debts (2.9) (2.9) (1%) (2.5) (2.5) (1%) Profit before tax 8.9 9.1 2% 7.9 7.9 - Tax (2.7) (2.7) 3% (2.4) (2.3) (3%) Profit after tax 6.3 6.4 2% 5.5 5.5 1%

Q1 2021 Results 31 Overview of Key Financial Ratios

GROUP Q1 21 Q1 20 HY 20 FY 20 KENYA GROUP 18.9% 11.6% 14.4% Return on Average Equity 20.6% 17.6%

48.5% 47.0% 45.0% Cost to Income 41.7% 48.0%

11.1% 13.7% 14.7% Gross NPL to Gross Loans 12.5% 14.8%

65.3% 61.7% 66.7% NPL Coverage 68.0% 65.2%

16.2% 16.2% 26.0% Debt to Equity 31.8% 24.4%

34.4% 31.0% 29.7% Non funded income to total income 25.0% 27.4%

2.7% 2.7% 2.7% Cost of funds 2.5% 2.6%

7.6% 7.8% 7.9% Net Interest Margin 7.7% 7.4%

2.1% 4.0% 4.6% Cost of risk 1.9% 1.7%

74.8% 80.7% 77.4% Loan to Deposit Ratio 87.2% 79.7%

19.3% 17.0% 11.0% Growth of Net Loans and Advances 7.2% 7.8%

34.1% 34.6% 12.0% Growth of Customer Deposits (1.9%) 1.2%

Q1 2021 Results 32 KCB Investor Relations [email protected] www.kcbgroup.com

Q1 2021 Results 33