INVESTORS APRIL 2019 OUR CORPORATE PROFILE OUR STRENGTH

22 Over 3,000 266 professional staff Years Braches TZS 791 Billion Total Capital Our Coverage 553 & ATM’s Our Subsidiaries 8,075 CRDB Burundi Agents 44% 56% TZS 6 Trillion CRDB Microfinance 1,107 Total Assets CRDB Broker Merchant POS 402 Microfinance Leading the Partners 21 Market Mobile Branches Robust Online 20.2% 23.3% Banking Platforms Maintain over 3 Million Total Customer customer base Asset Deposits OUR BUSINESS MODEL

TOTAL CREDIT PORTFOLIO THE SEGMENTED FRANCHISE TZS 3.2 TRILLION

CREDIT PORTFOLIO Transactional Trade SPLIT BY SECTOR Banking Finance Payment Savings and Personal 39% Trade & Manufacturing 16% Solutions Investment Construction 13% Advisory Agriculture 1 0% Services Investment Education & Health 5% • Corporate Solution Transportation 4% Retail • Government Tourism 4% Banking • Institutions Financial Institution 3% Financing Online Mining, Oil & Gas 3% Forex Payment Solutions Banking Energy 2% Trading Solutions Other 1%

CREDIT PORTFOLIO Private Cash Financing Management Solutions SPLIT BY SEGMENT Banking Personal 44.7% Corporate 42.4% SME 12.9% OUR OWNERSHIP AND GOVERNANCE

Share Holding Structure Governance Structure

Danida Investment Fund (DIF) CRDB Group - Board of Directors Pension Funds Private Companies Cooperatives Subsidiaries – Board of Directors Board of Governance Committees Individuals Foreign Investors Employees and Directors Executive Committee 0.7% Management Committees CRDB Burundi 23.4% 21.0% Commercial Shared Service Risk Management

Retail HR Risk & Compliance CRDB Finance 13.9% Microfinance Corporate Audit

Digital Banking ICT Credit Management 30.8% 8.2% Centralized CRDB Marketing & PR Operations Insurance 2.0% Broker Strategy & General Business Innovation Support OUR STRATEGIC ALLIANCES

Our Strategic Partners in Service Delivery

Generating Funding Capabilities Enabling Collection Solutions Powering Payment Solution Accelerating Financial Inclusion

+500 MORE OTHER PARTNERS BUSINESS ENVIRONMENT REFLECTING ON OPERATING ENVIRONMENT

20 MACRO ECONOMICS 18 16 Steady economic growth, average GDP 7% 14 Decline Inflation rates to 3.1% 12 10 9.3 Decline interest rates - 364 9.1 days T-Bills to 9.1% 8 6 6.3 6.8 Steady exchange rates at average 2,250 per USD 4 3.1 2 3.3 0 2014 2015 2016 2017 2018 Q1'2019

GDP INTEREST RATES INFLATION

2,281 2,289 2,149 2,173 2,230

1,756 Tanzania

2014 2015 2016 2017 2018 Q1'2019 EXCHANGE RATES REFLECTING ON OPERATING ENVIRONMENT

Broad Money Supply M3 Credit to the private sector Banking Sector Deposits & Loans (in Trillion) MACRO ECONOMICS 30

25 20.4 Decline on deposits due to slowdown 19.9 20.2 19.1 of M3 from 4.5% to 3.1% Q1’19 20 16.8

15 15.4 15.2 15.9 Growth of credit to private sector 10 14.8 Slightly decline on profitability driven 5 11.9 by increased impairment charges 0 2014 2015 2016 2017 2018 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 -5 Loans Deposits

Source: BOT Source: BOT

Gross non-performing Loans to gross Loans Banking Sector Profitability (In Billion) 14 12.5 450 12 357 10 348 10.4 Tanzania 8 268 6

4 209

2

0 7 5 7 6 8 7 5 4 8 5 8 7 6 6 3 5 4 8 4 6 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ------r r r r r n n n c n c c c n c p c p p p p a a a a a e e e e e e u e e e u u e u e u J J J M J M J M M S M S S D S D D S D D D 2014 2015 2016 2017 2018

Source: BOT Source: BOT REFLECTING ON OPERATING ENVIRONMENT

CHANGES ON MARKET CONDITIONS

Increased Increased Increased Regulations Volatility Disruption

MNO pressurise changes Introduction of IFRS 9 Stiff competition on our operating model

Single treasury Changing customer Mobile technology and account Implementation behaviour and preference social media demands of operational risk regular changes of our processes Tax enforcement Increased Cyber fraud Technology changes Loan write-off Changing demographics demands more capital investments MAJOR MILESTONES SUPPORT COUNTRY MAJOR ECONOMIC PROJECT

Agribusiness Financing Financed country Agriculture projects by TZS 380 Billion

Infrastructure Financing Energy Financed Country SGR project by TZS 238 Billion – through Financing syndication ( off balance sheet ) Financed Rufiji Hydropower project by TZS 1.7 Trillion – through syndication

Industrialization Financed country industrialization initiatives by TZS 220 Billion IMPROVED OPERATIONS EFFICIENCY

Channel distribution in % STAFF RATIONALIZATION AGENT DIGITAL Moved staff from back office to front office to 17% 68% increase sales & service ( ATM, Mobile, Internet, Merchant ) BRANCHES MOVED 15% BACK OFFICE Centralized and automated branch back office activities

BRANCH TRANSFORMATION Adopt cost to serve model and OF TRANSACTIONS optimize resource and ARE PERFORMEND efficiency 85% OUTSIDE THE BANK IMPROVED CREDIT MANAGEMENT

Strengthened credit processes and governance structure

Automation of loan collection processes and usage of Call Centre

Modernized Credit processes Use of Early Warning Signs (EWS) engine Use of predictive default data analytics

Portfolio diversification Grew Retail portfolio to reduce corporate exposure Syndication

Successfully implemented – automated IFRS 9 INNOVATING THE NEW BANKING EXPERIENCE

Full-fledged QR Code Payments GePG Mobile App Integrate on Government payment system

High value

Robust Internet Fast Account Banking Opening (FAO) ADDING VALUE TO OUR STAKEHOLDERS

2017 2018

2018 Generated 44% 45% Employees TZS 27% 30% 351 Taxes to Government Billion value 4% 6% and distributed Shareholders Dividends

24% 19% Shareholder’s Investment SUPPORTING THE COMMUNITY

The bank has spent over 1% of PAT to support community in the areas of : • Humanitarian assistance • Education • Financial Literacy • Health • Sports • Environment ACCOLADES AND RECOGNITION: LOCAL & INTERNATIONAL

Over the years, the Bank has consistently been a leader and innovator of value-adding customer centric products to cater the respective needs of the market.

Best Bank in Corporate Social 2nd Winner Best Custodian Best MIM CTI Special Best SME Bank Best Issuer Compliance Winner Tanzania Responsibility Best Presented of the Year Company Award in East Africa Africa Award Best Financial Awards Financial of the Year Reporting Award Awarded by Awarded by CTI Awarded by Awarded by Statements Awarded by Banker Africa Awarded by Higher Education Tanzania EMEA Finance Awarded by Awarded by as a lead sponsor Awards UnionPay Students’ at African EMEA Finance Large Bank Stock Exchange Plc Dar es Salaam of the President’s Loans Board Banking Awards at African Category Member’s Award Stock Exchange Plc Manufacturer of Awarded by Banking Awards 2018. Member’s Award the Year F.I.R.E Awarded by 2018. NBAA • 1st in Tanzania rated by Moody`s Investors Services • Rated “B1 stable outlook” by Moody`s - The highest rating to have been acquired by in sub-Saharan Africa. • Selected as partner by International Financial Corporation (IFC), KFW-DEG, Germany, CDC-UK and African Development Bank FINANCIAL PERFORMANCE BALANCE SHEET Amount in TZS Bln

% % Strong Group Balance Sheet Dec-18 Dec-17 Change Mar-19 Mar-18 Change

Balance Sheet ASSETS Net Loans 3,127 2,894 8% 3,160 2,839 11%

Total Asset TZS 6 Trn Cash & Balance with Banks 1,047 1,412 -26% 847 1,569 -46% Government Securities 1,238 1,105 12% 1,275 1,01, 90 17% Total deposits at TZS 4.3 Trn Total Assets 6,035 5,902 2% 5,933 6,01111 -1%

Increase in Shareholder’s FUNDING Funds Deposits 4,687 4,326 8% 4,321 4,4,368 -2% Strong Deposit Base, Borrowed Funds 459 565565 -19% 632 674 -6% growth on cheap deposits Shareholder's Funds 774 733733 6% 791 770 3% FDR-CASA ratio at 13% from 17% in 2017 INCOME STATEMENT Amount in TZS Bln

Group Income % % Improved Statement Dec- 18 Dec- 17 Change Mar-19 Mar-18 Change Profitability Interest Income 586 560 5% 152 138 11% 27% Strong top line Interest Expenses (143) (151) -5% (29) (41) -29% growth Net Interest Income 443 410 8% 123 96 27% 25% Growth in Total Non Interest Income 200 197 2% 60 51 19% income Total Income 643 607 6% 183 147 25% Operating Expenses (429) (399) 7% (113) (100) 13% 13% growth in operating Expense Result before allowances 214 207 3% 69 47 48% Loan Impairment charges (115) (153) -25% (26) (31) -17% 17% down on loan impairment charge Net Profit after Tax 64 36 77% 31 10 216%

216% Increase in Profit after Tax 5 YEAR PERFORMANCE TREND

Total Assets Total Deposits No Performing Loan

4,687 13.90% 5,902 6,035 4,246 4,110 4,326 12.60% 5,402 5,405 3,391 4,210 8.40% 8.50%

5.00%

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Total Loans & Advances Profit After Tax

3,252 3,247 3,127 129 2,894 2,545 96 • Notable 2018 performance

70 64 • Strong Balance sheet growth • Improved asset quality 36 • Improved profitability

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 OTHER KEY FINANCIAL HIGHLIGHTS

Key Performance Mar-19 Mar-18 Investors Returns Mar-19 Mar-18 Ratio Earning Per Share (EPS – TZS) 47 15 Return on Equity 16% 5% Price Earning Ratio (P/E) 3 11 Cost to Income 62% 68% Book Value (BV) 303 295 Gross NPL/Gross 8.8% 12.7% Price Book Value ratio (P/B) 0.4 0.6 Loans Market Capitalisation (TZS Bn) 327 444 NPL Coverage Ratio 69% 61% Cost of Funds 2% 3% Net Interest Margin 11% 9% 15.7% 8.8% Yield on Investments 13% 13% Improved Return on Equity Improved Asset quality Return on Asset 3% 1% Tier 1 Capital 15% 14% 2.9% 69.4% Total Capital 16% 17% Improved Return on Asset Improved Coverage ratio SOUNDNESS

IFRS 9 implementation has Reduce Retained Earnings

Impact on Provision Impact on Shareholder’s Equity (Retained Earnings)

13,606

213,981 120,883 21,132 Impact 217,052

463,424 442,292 7,313 65,112 37,492

31 Dec 2017 1 Jan 2018 31 Dec 2018

IAS 39 IFRS 9

General provision Stage 1 IAS 39 IFRS 9 Specific provision Stage 2 Stage 3 SOUNDNESS

19.5% 17.7% Capital 17.0% 17.4% 16.3% 15.8% 16.1% 16.0% 14.8% Management and 14.2% 14.0% 14.3% 13.9% Sustainability 13.5% Despite of decreased CAR due to implementation of operational risk charge the Bank Capital remained Strong

2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Tier I Total 2019 - OUTLOOK

2019 - Outlook

Loan Growth 10% - 15% Deposit Growth 10% - 14%

Net Interest Margin 9% - 10% Non Funded Income Mix 35% - 40% Cost to Income Ratio 55% - 60%

Return on Equity 16% - 18% Return on Asset 2.5% - 3.0%

Cost of Risk 2.5% - 3.4% NPL 5.0% - 7.0%

Subsidiary Contribution (Asset) 2.3% - 3.0% Subsidiary Contribution (PBT) 3.2% - 4.0% STRATEGIC DIRECTION BUSINESS GENERATION

Portfolio Economic Growth Infrastructure Focus on value chain from country key economic projects Focus on SME through country Transactional Business Industrialization Accelerate Transactional drive Business to drive deposits mobilization Win War for Deposits Focus on Agribusiness Financial Value chain Inclusion Financing Accelerate Agency Business growth o Collaboration with International Institution to finance mega projects

o Syndication DRIVE EFFICIENCY

Agency Banking • Rapid Growth of agents Business Realignment • Grow customer base through agent network • Redefine Branch Operating Model Credit Management • Support agents to improve liquidity • Channel Optimization • Process simpli cation • Optimize Agent network to drive • Process reengining and Automation • Capacity Building cashless banking transactions • Robust Performance Management System • Robust scoring tools • Empower Agent to handle more nancial • End to end Relationship Management services E-Ticketing Micro Lending application Robust Scoring tools Platform & Ecosystems

Big Data & Analytics

TECHNOLOGY INNOVATION Upgrade infrastructure to enhance processing capacity Adopt agility

Implement Tier 3 Data Centre to improve high availability Innovate new business models to capture new opportunities

Build analytical capability to drive insights, integrity, decisions and predictions Digitize the current business to provide convenient and seamless experience. RISK MANAGEMENT AND GOVERNANCE

MAINTAIN PRUDENT RISK AND COMPLIANCE STANDARD

Improve compliance Create disciplinary Enhance ICT governance discipline as per frameworks to and operational resilience regulatory standards reinforce governance to combat cyber frauds and Recovery ADVOCATING GENDER DIVERSITY

Committed to developing the most diverse mix of talent by gender, ethnicity, culture, disability, religion, etc.

Adding value to the business through work life balance programs.

Building on gender equality with equal voice and representation.

Create an environment which is free from gender bias.

Drive programs on women empowerment. OUR NEW HEAD OFFICE

An Iconic Landmark Bigger & Superior New Infrastructure New Technology New Working Environment We look forward to doing Business with you...

Thank You Helpful Links: www.tic.co.tz Contact us: www.tra.go.tz www.crdbbank.co.tz www.immigration.go.tz