BK Group PLC Investor Presentation Q2 2018 and 1H 2018

Page 1 Disclaimer This presentation contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to the implementation of strategic initiatives and other statements relating to our business development and financial performance.

While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, (1) general market, macroeconomic, government policies, legislative and regulatory trends, (2) movements in local and international currency exchange rates, interest rates and securities markets, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties and developments in the markets in which they operate, (6) management changes and changes to the ’s structure and (7) other key factors that we have indicated could adversely affect our business and financial performance, which are contained elsewhere in this presentation and in our past and future filings and reports, including those filed with the National Bank of and the .

We are under no obligation (and expressly disclaim any such obligations to) update or alter our forward- looking statements whether as a result of new information, future events, or otherwise.

Page 2 Key Executives

Marc Holtzman Chairman of the Board F l o r a N s i n g a Chief Human Resources O f f i c e r

D i a n e N g e n d o K a r u s i s i Chief Executive O f f i c e r D e s i r e R u m a n y i k a Chief Operating Officer

Nathalie Mpaka Chief Finance Officer

Vincent Gatete Chief Commercial Officer E d d y M a b a n o K a y i h u r a Chief Information Technology Officer

Page 3 Agenda 1. Key Investment Highlights

2. Country Overview Information

3. Banking Sector Overview

4. Bank Overview

5. Corporate Governance

6. Business Overview

7. Review of Financial Performance 30 June 2018

8. Strategic Outlook

9. Contact Information

Page 4 Key Investment Highlights 1. Best Bank in Rwanda 2013, Politically stable country with sound governance 2015 & 2016 Very attractive demographic profile: population of 12.0 Million Sound Macro Robust economic growth averaging 8% pa in the last 5 years, expecting a sustainable high GDP Fundamentals growth into 2020. 2. Best East African Bank 2012 Moderate inflation: Inflation rate of 2.9% as at 30th June 2018 & 2015,2016 The 2017 World Bank Doing Business Report ranked Rwanda as the 41st out of 190 countries in terms of ease of doing business and 2nd in Africa.

Significant headroom for growth given under-banked and excluded population Significant 3. Bank of the Year 2009- Number of financially excluded population reduced from 28% in 2012 to only 11% in 2016 Banking Sector 2012,2014,2015,2016 Total assets/GDP of 34.9% as at 30 June 2018 Potential Well regulated banking sector: fairly conservative regulator relative to other regulators in the EAC Strong Market positioning with leading market share over 30% across key metrics 4. Best Bank in Rwanda 2009- Total assets FRw 731.8 billion ; 32.4% market share as at 1H 2018 2014,2016 Market Net FRw 481.2 billion ; 37.7% market share as at 1H 2018 Leadership Customer Deposits FRw 472.3 billion ; 30.9% market share as at 1H 2018 Shareholders’ Equity FRw 129.9 billion ; 38.5% market share as at 1H 2018 5. Best African Listing 2011

6. AA-/A1+ Credit Rating Conservative Relatively high capital adequacy ratios since 2010 averaging >20% Business Manageable level of non-performing 5.8% of gross loans as at 1H 2018, down from 19.4% in 2007. Model The rating reflects the Bank’s established Liquid assets holding of 39.5% (minimum requirement 20%) domestic franchise value, strong capital position, its systemic importance, strong asset quality and financial performance. Management team with significant banking sector experience Experienced Complemented by an experienced and diversified Board of Directors Management 7. Best Financial Reporting Team Track record of producing stellar results Company Rwanda 2012 & Profitable 2015 Robust asset growth at a CAGR of 14.7% (2013 - 2018) - FRw 731.8 billion as at 30 June 2018 Growth ROAA ranging from 3.4 % - 4.0% between 2013 and 1H 2018

Page 5 COUNTRY OVERVIEW INFORMATION

Page 6 Rwanda – Country Profile

National Facts Business Environment Area 26,338 sq km Population 12.2 million Ranked Second after Mauritius as the best destination to do business in Official Languages Kinyarwanda, French, English Africa in the World Bank 2018 Doing Business Report. Capital (FRw) 859.76189 Rwanda has implemented over 22 business regulation reforms in the Currency FRw = 1 US$ as of 29 June 2018 areas measured by the World Bank Doing Business Index. Today, Credit Rating ‘B/B’ (S&P Ratings) entrepreneurs can register a new business online in 6 hours. Nominal GDP 2018 US$10 billion Rwanda maintains its position as East Africa’s most competitive economy Nominal GDP Per Capita 2018 US$ 800 and second in Africa by Global Competitiveness Index Report 2017/18 Nominal GDP 2019P US$ 11 billion Rwanda has championed the establishment of the Single Africa Nominal GDP Per Capita 2019P US$ 900 Air Transport. To this effect, the construction

Macro Economic Indicators of Bugesera International Airport has been prioritized.​ Other key projects, are the construction of four ports on Lake Real GDP Growth rate - 2018 6.5% Kivu, expansion and support to RwandAir operations, promoting MICE Real GDP Growth rate - 2019P 7.0% tourism by attracting 142 international Events and conferences, and Inflation Rate - 2018 5% improving and sustaining a quality road network throughout the country. Private Sector Growth - 2018P 29.5% Private Sector Credit % GDP - 2018P 20.2% Net External Debt %GDP - 2018P 11.8% Currency Depreciation against USD Jun 2018 1.7%

Foreign Reserves 2018 4-4.5 Months of Imports

Source: MINECOFIN, BNR, NISR, WEF, IMF, Worldometers, S&P Report

Page 7 Sound Macro Fundamentals

GDP per Capita continues to grow Population Pyramid for Rwanda

Mln US $ 14 900 724 12 719 800 644 720 800 700 10 739 540 600 65+ 0.96 1.47 8 500 6 400 300 4 55-64 1.82 2.27 200 2 10.4 10.5 10.9 11.2 11.8 12.4 12.0 100 0 0 2010 2012 2014 2015 2016 2017 1H 2018 25-54 15.50% 17.26 Population Nominal GDP per capita

Healthy GDP growth with moderating inflation 0-24 30.56 30.16

US $ Bn Nominal GDP(US $ Bn) 10 7.0% 6.3% 8.8 8.8 8.0 8.1 8.0 6.0% 8 7.3 5.7% 4.9% Male Female 5.0% 5.6 5.0% 6 4.0% 60% of the population is under 24 years. 4 2.5% 3.0% 2.3% 1.8% 2.0% 93% of the population is under 54 years. 2 1.0% 2.4% of the population over 65 years. 0 0.0% 2010 2012 2014 2015 2016 2017 1H 2018 Source: Finscope Rwanda Report Source: Ministry of Finance and Economic Planning, World Bank

Page 8 Macroeconomic Indicators

GDP Breakdown By Economic Activity 2018 Trade Structure

Taxes less Subsidies Rwanda’s exports are dominated by coffee, tea and minerals (tin, on products 7% coltan and wolfram). The country remains a net importer. Major imports include fuel and oils, intermediary goods especially construction materials,

Agriculture, 31% consumer goods, and capital goods. Other services, 36% Other services include Real estate activities 8%, administration 10%, financial service 3% to mention but a few Industry, 15% “Made in Rwanda” has sought to improve the perceptions of Rwandan products within Rwanda, promote nascent industries, and boost the productivity of exporting sectors. Trade and Transport, 11%

Source: BNR Monetary Policy Statement, NISR, International Growth Centre/MINEACOM Source: National Institute of Statistics of Rwanda Trade Deficit as a % of GDP Current Account Deficit as a % of GDP

16.0% 13.7% 14.7% 19% 14.0% 12.7% 20% 11.9% 15% 15% 16% 15% 16% 12.0% 10.1% 14% 15% 9.0% 15% 13% 10.0% 11% 10% 7.3% 7.2% 7.4% 8.0% 5.9% 4.9% 10% 6.0% 5% 4.0% 2.0% 0% 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H Source: S&P Report Source: S&P Report 2018

Page 9 Review of the Macro Economic Environment

Macro Economic Review Inflationary Environment

In the first quarter of 2018, GDP at current market prices was 7.7% 8.0% 7.4% estimated to be Frw 1,985 billion, up from Frw 1,816 billion in 7.3% Q1 2017. Estimates calculated in 2014 prices show that GDP 7.0% 6.4% 6.0% was 10.6 percent higher in real terms compared to the same 4.8% quarter of 2017. 5.0% 4.0% 3.8% Activities in the industry sector increased by 12 percent and 3.0% 3.0% 2.9% contributed 1.2 percentage points to GDP growth rate. 2.0% 0.7% 1.3% 0.9% Manufacturing activities increased by 7 percent boosted mainly 0.7% 1.7% by an increase of 9 percent in food processing activities, 24 1.0% percent in textile, clothing & leather and 19 percent in mineral 0.0% products. Construction activities covered the gap created by the phase out of big projects in 2015 and 2016, Activities in service sector increased by 12 percent in Q1 2018. Exchange Rate Developments Given their weight and growth the following are the main contributors: Wholesale & Retail trade increased by 26 percent 10.0% due to an increase of traded agricultural and manufactured. 2017 1H 2018 Public administration by 17 percent, Transport services by 21 4.7% 5.0% percent and Information & Communication by 28 percent. 0.9% Wholesale and retail trade increased by 3 percent due to an 0.4% increase of agricultural and manufactured products, Transport 0.0% services by 28 percent, Information and Communication by 24 USD GBP EURO UGX KES -1.7% -2.7% -2.3% percent and Financial services by 12 percent. -5.0% -3.1% -3.9%

The adjustment for taxes and subsidies decreased by 17 -10.0% percent. -15.0% -13.2%

-16.9% -20.0% Source: National Institute of Statistics of Rwanda, BNR Monetary Policy & Research Department African Economic outlook

Page 10 BANKING SECTOR OVERVIEW

Page 11 Significant Banking Sector Potential

Banking Assets/GDP Banking Assets Per Capita5 Large Unbanked Population (US$) Economy is moving away from being cash-based through the various financial inclusion initiatives being undertaken by financial institutions including the launch of agency banking and mobile money transfer services. Approximately 72% of the population have or use financial products or mechanisms including those offered by non- bank formal financial institutions such as SACCOs

Source: Finscope Rwanda 2012 Prudential Regulations

(1) Source: Exotic Frontier Equities (2) Source: YE 2013 Monetary Policy Statement (3) Source: Population stats by World Bank

Page 12 Banking Sector Overview

Rwanda Banking System Total Assets Interest Rate Analysis

FRw Mln Key Repo Rate T-Bills Rate Deposit Rate Lending Rate 2,824 3,000 2,686 2,800 20.00% 2,600 2,380 2,400 2,133 15.00% 2,200 2,000 1,803 10.00% 1,800 1,511 1,600 5.00% 1,400 1,187 1,200 0.00% 1,000

800

July

May May

June June April

600 April

March March

400 August

January January

October February

200 February

December November - September 2012 2013 2014 2015 2016 2017 1H 2018 2017 2018

Source: BNR Supervision Department Recent Regulatory Reforms To Improve Access To Credit Banking Sector Review Enactment of Law on Mortgages, requiring the registration of mortgages Total assets of the industry registered annual growth rate of 3.7% in 1H 2018, from 2.7 trillion in Dec 2017 to FRw 2.8 trillion in June 2018. and enabling lenders to foreclose on defaulters Establishment of Commercial Courts dealing solely with commercial The capital adequacy ratio (CAR) stood at 21.7% in June 2018 well above Basel committee benchmark of 12.5% and the BNR regulatory minimum disputes requirement of 15% Reorganization of the Land Centre which has computerised records and

Profitability indicators in June 2018 stood at 1.6% and 9.6% for Return on operations in addition to timely issuance of property titles assets (ROA) and return on equity (ROE). Reorganization of the Office of the Registrar General to enhance and fast

The asset quality of the industry is generally improving; non-performing track registration of mortgages and foreclosures ratio (NPL ratio) decreased to 6.9% as at June 2018 from 8.2% Establishment of Credit Reference Bureau to enhance information sharing recorded June 2017. among and other financial institutions in order to assist with credit Source : BNR Supervision Department risk assessment

Page 13 Timeline of Foreign Investment In The Rwandan Banking Sector

80% stake in BCR I &M Bank acquires 40% stake in Cogebanque 80% stake in BCR

2004 2007 2008 2009 2010 2011 2012 2014 2015 2016 2017

30% 70% stake in stake in 90% stake in CBA Acquires 100% Agaseke Bank C Crane Bank Rwanda BPR FINA Bank

2011 2012 2013 2014 2015 2016 2017 1H 2018

Bank of Kigali Market Share by Total Assets 32.3% 31.7% 35.8% 33.7% 34.0% 35.4% 34.1% 32.4%

* Market share among commercial banks – BK Analysis

Page 14 Competitive Landscape

Market Share Dynamics Bank of Kigali Growth vs. Commercial Banks’ Growth, CAGR YE 2013–2018

Commercial Banks BK Group Plc 30.0% 2015 2016 2017 1H18 50% 24.7% 25.0% 45% 42.9% 38.6%38.4% 38.1% 37.7% 38.2% 20.4% 40% 35.4% 34.1% 35.3% 20.0% 19.1% 35% 34.0% 32.4%33.7% 32.9%31.9% 32.6% 30.9% 17.4% 16.4% 30% 15.1% 15.0% 14.7% 13.9% 25% 20% 10.0% 15% 10% 5.0% 5% 0% 0.0% Total Assets Net Loans Customer Deposits Shareholders' Total Assets Net loans Client Deposits Shareholders' Equity Equity Selected Indicators 1H 2018 Concentration of Banking Sector Assets

25.0% 1H 2018 YE 2017 21.2% Banking Sector Bank of Kigali 20.0%

15.0% Others, 26.7% Others, 22.8% 9.6% 10.0% 6.9% 5.8% Top 5 5.0% 3.7% Top 5 Banks , 1.6% Banks, 77.2% 73.3% 0.0% NPLs/Gross Loans Return on Average Return on Average Assets Equity Source: BNR Supervision Department

Page 15 Strong Market Leadership - 1H 2018

1 32.4% 37.7% 30.9% 38.2%

2 13.0% 13.3% 12.7% 11.2%

3 12.8% 12.0% 12.3% 10.5%

4 8.9% 9.0% 9.3% 8.1%

5 9.0% 8.7% 7.5% 8.9%

6 7.4% 7.4% 8.4% 6.2%

7 6.1% 3.4% 7.2% 5.7%

8 4.1% 3.1% 4.9% 3.7%

3.7% 9 4.0% 2.5% 4.8%

1.4% 10 1.6% 1.1% 2.9%

11 0.7% 0.3% 0.3% 2.4%

Source: 1H 2018 Published Financial Statements

Page 16 BANK OVERVIEW

Page 17 Background and History

Supervisory US$62.5 mln Initial Signed lines of of Kigali Ltd Established in Board enhanced Public Offering of with: changes its name to 1966 as a JV with & 45% of its shares • PTA Bank- US$ 10 BK Group PLC Belgolaise S.A internationalized and listing on the mln RSE • OFID- US$ 10 mln Increase Auth. Share • EADB- US $10 mln capital by FRw 3.5bn

2006 2009 1966 2010 2011 2013 2015 2016 2017

Government of New strategy A+ credit rating AFD loan signed: Rwanda focusing on the by GCR (Global ‒ US$ 20 mln • Shelter Afrique • Launch of BK acquired 50% universal banking Credit Rating) ‒ 10 years loan $10 mln General EIB Loan £5 mln stake fom business model • Launch of BK Insurance Ltd AfDB loan • Belgolaise and profitable Registrars Launch of BK signed: • Launch of TecHouse Ltd becoming 100% growth adopted -US$12 mln Mastercard shareholder -10 years

Page 18 A Snapshot of Bank of Kigali

Key Facts CAGR 1H 2013- 1H The leading bank in Rwanda 32.7% market share by Total Assets as at US$ million 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 30 June 2018), offering a wide spectrum of commercial banking FRw/USD Period End rate 594.4 604.4 630.6 670.2 686.1 725.0 807.0 854.0 868.5 services to Corporate, SME and Retail customers Total Assets 332.6 476.3 511.9 630.2 703.4 774.1 791.0 851.5 842.6 14.7% Net Loans 170.6 203.7 293.5 297.0 340.3 433.0 478.1 552.3 554.1 24.7% As at 30 June 2018 the Bank had: Client Deposits 228.3 299.5 330.5 418.5 473.1 530.6 519.2 533.0 543.8 13.9% 24,260 Corporate clients Shareholders' Equity 53.6 101.9 100.1 105.7 130.5 136.9 134.4 143.7 149.5 16.4% 268,313 Retail clients Net Income 10.4 14.4 18.5 22.0 26.7 28.2 25.7 27.3 15.4 Growth figures are calculated on FRw Values. 79 branches 1H 94 ATMs and 1,412 POS Market Share 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Assets 27.4% 32.3% 31.7% 35.8% 33.9% 34.0% 35.4% 34.1% 32.4% 1,224 employees Net Loans 31.5% 29.4% 31.5% 31.5% 30.3% 33.7% 35.3% 38.1% 37.7% 1,441 Agents Client Deposits 25.9% 28.2% 28.1% 32.2% 31.0% 31.3% 32.9% 31.9% 30.9% Western Union, Money Gram services for International Transfers Shareholders' Equity 32.2% 41.9% 41.9% 44.3% 44.4% 42.9% 38.6% 38.4% 38.2% Branch Network Evolution

Number of Branches Number of Employees 100 2000 1,225 1,215 1,224 877 980 1,019 1,140 50 454 602 1000 33 44 59 65 70 75 79 79 79 0 0 2010 2011 2012 2013 2014 2015 2016 2017 1H 2018 Growth in ATMs, POS Terminals and # of Retail Current accounts

ATMs Retail Accounts('000') POS 1250 1412 1,500 1002 1,000 656 801 405 568 202 192 266 312 248 208 211 500 26 50 97 26124 55 65231 76 84 91 91 94 - 2010 2011 2012 2013 2014 2015 2016 2017 1H 2018

Page 19 CORPORATE GOVERNANCE

Page 20 Shareholding Structure & Corporate Governance

Shareholding Structure as at June 2018 Corporate Governance

The Board is composed of six directors; 3 non executive and Independent directors, 2 non-executive and non independent Retail Investors 8.5% directors that represent shareholder’s interests and one executive director . Regional Other State Owned Institutional Entities Government of The Board of Directors is appointed by the shareholders and Investors 0.1% Rwanda 29.4%, 10.5% approved by the Central Bank and meets on a quarterly basis or

Local Institutional more frequently as the business demands. Investors 8.4% The Board sets the strategy and retains full responsibility for the direction and control of the Bank as spelled out in the International Institutional Rwanda Social Memorandum and Articles of Association, the Board Charter and Investors Security Board 17.3% 25.0% the BNR Corporate Governance guidelines. The Board sub-committees have clear TORs which underscore the scope and context of their mandate and performance as approved Employees and by the Board & the BNR Corporate Governance regulation. Directors 0.9% The Board receives detailed financial information and regular presentations from the management on the Bank’s business Free float- 45% performance; this enables the Directors to make informed decisions on governance, strategic, financial and operational issues.

Page 21 Share Trading Performance

30 June 2018 Analyst Coverage Current price, FRw 290 Market Cap, US$ mln 290 Free float 45% Recommendation: BUY Free float in US$ mln 107.4 Target Price: FRw 354 Average daily turnover in US$ mln 0.12 Last coverage report: August 2018 Common shares outstanding, mln shares 674.5 12-month high 300 12-month low 276 Recommendation: HOLD P/E 2017 (based on current price) 8.4x Target Price: FRw 308 P/BV 2017 (based on current price) 1.59x Last coverage report: April 2018 Dividend yield, 2017 (based on current price) 5.4% EPS, 2017 36.1 Ticker Code BOK Recommendation: HOLD Bloomberg BOK. RW Target Price: FRw 315 Last coverage report: February 2018 FRw/USD Exchange Rate of 868.5 as at 30 June 2018 (BNR Middle Rate) *Capital gains on RSE transactions are exempted from Capital Gains Tax

Share Price Performance

Price

Closing Price FRw Volume Weighted Average Price FRw Initial Price Frw 490 460 430 400 370 340 310 280 250 220 190 160 130

100

4-Jul-16 3-Jul-17 2-Jul-18 9-Jul-18

2-Jan-17 9-Jan-17 1-Jan-18 8-Jan-18

6-Jun-16 5-Jun-17 4-Jun-18

3-Oct-16 2-Oct-17 9-Oct-17

4-Apr-16 3-Apr-17 2-Apr-18 9-Apr-18

6-Feb-17 5-Sep-16 4-Sep-17 5-Feb-18

5-Dec-16 4-Dec-17

8-Aug-16 1-Aug-16 7-Aug-17 6-Aug-18

24-Jul-17 31-Jul-17 16-Jul-18 11-Jul-16 18-Jul-16 25-Jul-16 10-Jul-17 17-Jul-17 23-Jul-18 30-Jul-18

7-Nov-16 6-Nov-17

6-Mar-17 5-Mar-18

2-May-16 9-May-16 1-May-17 8-May-17 7-May-18

30-Jan-17 22-Jan-18 16-Jan-17 23-Jan-17 15-Jan-18 29-Jan-18

13-Jun-16 20-Jun-16 27-Jun-16 12-Jun-17 19-Jun-17 26-Jun-17 11-Jun-18 18-Jun-18 25-Jun-18

10-Oct-16 17-Oct-16 24-Oct-16 31-Oct-16 16-Oct-17 23-Oct-17 30-Oct-17

11-Apr-16 18-Apr-16 25-Apr-16 10-Apr-17 17-Apr-17 24-Apr-17 16-Apr-18 23-Apr-18 30-Apr-18

12-Sep-16 19-Sep-16 26-Sep-16 13-Feb-17 20-Feb-17 27-Feb-17 11-Sep-17 18-Sep-17 25-Sep-17 12-Feb-18 19-Feb-18 26-Feb-18

12-Dec-16 19-Dec-16 26-Dec-16 11-Dec-17 18-Dec-17 25-Dec-17

15-Aug-16 22-Aug-16 29-Aug-16 14-Aug-17 21-Aug-17 28-Aug-17 13-Aug-18 20-Aug-18 27-Aug-18

14-Nov-16 21-Nov-16 28-Nov-16 13-Nov-17 20-Nov-17 27-Nov-17

28-Mar-16 13-Mar-17 20-Mar-17 27-Mar-17 12-Mar-18 19-Mar-18 26-Mar-18

16-May-16 23-May-16 30-May-16 15-May-17 22-May-17 29-May-17 14-May-18 21-May-18 28-May-18

Page 22 BUSINESS OVERVIEW

Page 23 Overview of the Loan Book

Gross Loan Portfolio Loan Book Segmentation

FRw Bn 550.0 Corporate Loans Retail Loans 496.0 508.4 70.2 450.0 67.9 397.6 350.0 324.8 58.4

246.7 61.7 250.0 211.9 428.1 438.2 194.0 59.0 65.5 339.2 150.0 61.5 263.1 187.7 132.5 146.4 50.0 2012 2013 2014 2015 2016 2017 1H 2018

Total Loan Book 2018 Corporate Loan Book 2017

50 M-100 <50 M, M, 2.5% 4.8% 100 M-500 M, 9.5%

500 M-1 Bn, 5.0% Top 10 Loans, Over 1 Bn, 44.2% Other Corporate 78.2% Loans, 55.8%

Page 24 Overview of Deposit Structure

Total Deposits Growth Customer Deposit Segmentation

Corporate Deposits Retail Deposits Bank's and OFIs Deposits FRw Bn 600.0

500.0 143.1 138.4 400.0 119.3 104.9 113.7 128.7 300.0 80.5 92.2 61.3 84.3 31.3 73.4 200.0 68.2 235.6 240.8 243.0 62.9 218.1 185.9 163.8 100.0 148.9

.0 2012 2013 2014 2015 2016 2017 1H 2018

Structure of Deposits, 1H 2018 Customer Deposits Concentration Corporate: FRw 243.0Bn Retail: FRw 128.0Bn

CB Term Collateral Savings Deposits Deposits Deposits 8.2% 2.5% CB Term 12.6% Deposits…

CB Demand Demand Deposits Deposits 79.2% 82.7%

* depositors with total balances above 5% of shareholders’ equity

Page 25 Corporate Banking

Description Key Segments at 2018

Clients include corporate, SMEs and NBAs* Corporate Loans: FRw 438.2 Bn Corporate Deposits: FRw 243.0 Bn Interest rates are in the 16.0% - 18.5% range. Key products: 5.2 CAPEX loans: long-term loans for investment or 51.7 51.8 expansion of the business Commercial mortgage loans: typical customer participation at 30% of property value, typical tenor of 131.8 up to 10 years 55.9 Working capital loans: financing business needs to an 380.1 agreed limit for a short period (usually <1yr) Overdrafts Corporate Loans SMEs Loans NBAs Loans Corporate SMEs NBAs Strategy: Increase exposure on top corporates with increase in Number of Corporate Accounts obligor limit through capital raise. Exploit cash management platform upgrade for sticky deposits and Total Corporate Clients Corporate Current Accounts advantaged pricing for credit products. 45,000 38,711 Hence, increasing both loans and deposits.​ 40,000 32,728 33,360 29,759 Introduce new services, integrate client coverage 35,000 27,712 30,843 30,000 Grow and consolidate market share 25,000 Leverage superior lending capacity 20,000 15,000 Focus on payroll services 10,000

Merez *NBAs (Non Business Associations) include Non-Profit Organizations, 5,000 29,518 25,477 29,518 25,477 24,229 24,260 Petroleum Charities, Religious institutions, Educational Institutions, Cooperatives, 0 etc. 2013 2014 2015 2016 2017 1H 2018

Page 26 Executing The Retail Strategy

Page 27 Retail Banking

Description Retail Lending Retail Deposits The Bank’s retail business is primarily focused on mortgages and Other Term 1.5% Deposits consumer loans with notable share of salary backed overdrafts 8.2% Key products:

Mortgage loan: up to 15 years with typical customer Savings participation at 30% of property value Deposits 12.2% Vehicle loan: up to 5 years to individual clients Mortgages 40.4% Consumer loan: up to 12x monthly salary and 48 months Consumer loans Overdraft: up to 50% of monthly salary (normally repaid in 30-90 54.1% Demand days) Deposits 79.6% Other products include credit cards and asset based financing Strategy: Overdrafts 3.9% Build sufficient channel capacity to be able to service 1,000,000+ Retail Loans: FRw 70.2 Bn Retail Deposits: FRw 128.7 Bn clients by 2021 Through BKQUICK a mobile solution towards savings and small Retail Client Accounts loans the Bank will be able to tap into the retail market No. of Retail Clients Retail Accounts competitively thus increasing loans and deposits in the segment. 350,000 Expand credit card/debit card offering to other providers 300,000 266,239 (MasterCard) Our Products 312,369 250,000 231,409 211,295 x etc) 208,592 200,000 198,067 150,000 100,000 50,000 239,510 288,022 327,441 236,545 257,990 268,313 0 Source: Bank of Kigali 2013 2014 2015 2016 2017 1H 2018

Page 28 Growing Our Distribution Network

Ubiquitous footprint Agency Banking

90 Branch Expansion Agency Banking platform BK Yacu began 79 79 79 80 75 operating in Nov 2012. 70 65 70 60 Expanded the agency banking network to 1939 50 operational agents as at 31 December 2017 40 30 Agents are able to perform cash in and cash out 20 transactions, open customer accounts as well as 10 0 send and receive money. 2013 2014 2015 2016 2017 1H 2018 ATMs 100 91 91 94 84 76 80 65 No of operational agents No of Transactions 60 600,000 1600 40 490,409 1400 500,000 20 425,815 398,116 1200 400,000 369,095 0 356,926 1000 2013 2014 2015 2016 2017 1H 2018 306,878 300,000 249,678 800 1,500 1,412 210,207 311,328 1,250 283,830 600 POS 200,000 1,002 400 1,000 801 1321 1437 656 100,000 568 200 1133 1178 1240 1280 1356 1398 1079 1441 500 0 0

- 2013 2014 2015 2016 2017 1H 2018

Page 29 Expanding Our Self Service Products

Growing our Card Business Increasing our Mobile Product Offering

Enhancing our mobile banking service Key Achievements Our mobile banking service Mobiserve allows Launch of MasterCard line of products customers to perform the following transactions:

Launch of e-Commerce acquiring Send money to any mobile phone user regardless of whether they operate a bank Over 200,000 Visa debit & credit cards account or not currently in circulation Purchasing prepaid TV, airtime and electricity

Union Pay and Diners Club Card Acquiring Check Balances and Bank information Order cheque books and Amex ATM acquiring

Deposit-taking ATMs

Page 30 REVIEW OF FINANCIAL PERFORMANCE

Page 31 Balance Sheet Highlights

Total Assets Net Loans and Advances

FRw Bn FRw Bn 600.0 800.0 727.2 731.8 481.2 700.0 638.3 500.0 471.7 600.0 561.2 400.0 385.8 500.0 482.6 313.9 422.4 400.0 300.0 322.8 233.4 287.9 199.0 300.0 200.0 185.1 200.0 123.1 100.0 100.0 - - YE 2011 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 YE 20171H 2018 YE 2011 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 YE 2017 1H 2018

Customer Balances and Deposits Shareholder’s Equity

FRw Bn FRw Bn 140.0 129.9 500.0 455.2 472.3 122.8 419.0 120.0 108.5 450.0 99.2 400.0 384.7 100.0 89.5 350.0 324.6 280.5 80.0 70.8 300.0 61.6 63.1 250.0 211.9 181.0 60.0 200.0 150.0 40.0 100.0 20.0 50.0 - - YE 2011 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 YE 20171H 2018 YE 2011 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 YE 2017 1H 2018

Page 32 Maturity Profile

Loans and Advances to Clients

Customer Balances and Deposits

Page 33 Asset Quality

Cost of Risk % Improving Coverage Ratio

% FRw Bn 5.0% NPLs Coverage ratio % 4.5% 22.0 300.0% 4.5% 20.0 246.4% 4.0% 3.7% 18.0 250.0% 3.3% 3.5% 16.0 199.6% 3.0% 2.9% 2.7% 200.0% 2.6% 14.0 169.0% 2.5% 2.2% 12.0 128.4% 150.0% 2.0% 10.0 134.6% 110.2% 1.5% 8.0 100.0% 1.0% 6.0 0.5% 4.0 50.0% 2.0 0.0% 14.7 16.2 18.1 20.6 32.3 34.8 0.0 0.0% 2012 2013 2014 2015 2016 2017 1H 2018 2013 2014 2015 2016 2017 1H 2018 Notes: ** LLP charge / Average gross loans for period

NPLs by segment Manageable NPLs Ratio

1H 2018 YE 2017 8.0% 6.9% 7.0% 6.5% 6.6% 6.0% 5.6% 5.8% Retail NPLs, 4.9% Retail NPLs, 17.1% 5.0% 4.5% 19.4% 4.0% 3.0% 2.0% Corporate Corporate NPLs, NPLs, 1.0% 80.6% 82.9% 0.0% 2012 2013 2014 2015 2016 2017 1H 2018

Page 34 Asset Quality

NPLs by Segment

Gross loan Yield by Segment

Page 35 Funding

Funding Structure, % Significant Potential For Growth In Higher Yielding Assets FY 2017 % 1H 2018 Net Loans/Customer Deposits Net Loans/Assets

120.0% 14.6% 12.5% 103.6% 101.9% 100.0% 92.1% 81.6% 17.7% 16.9% 80.0% 72.1% 62.6% 71.0% 65.8% 60.4% 64.9% 64.5% 60.0% 55.9% 5.9% 47.1% 48.4% 5.2% 40.0%

20.0% Customer Deposits FIs Deposits Customer Deposits FIs Deposits 0.0% Shareholders Equity Other Shareholders Equity Other 2013 2014 2015 2016 2017 1H 2018

Highlights Strong Capital And Liquidity Position % Liquidity Ratio, % Total CAR,%

70.0% Deposits are the primary source of funding with the 65.2% 64.9% 60.0% share of customer deposits at 64.5% as at 30 June 52.9% 50.0% 47.3% 2018. Strong growth in deposits has been driven by 42.1% 39.5% 40.0%

our branch expansion as well as the introduction of 30.0% 26.3% 23.7% 22.5% 21.7% various deposit mobilizing initiatives such as mobile 20.0% 19.0% 18.9% vans and agency banking 10.0% 0.0% 2013 2014 2015 2016 2017 1H 2018

Page 36 Income Statement Highlights

Total Operating Income Total Recurring Operating Costs Net Profit

Composition of Total Operating Income Composition of Total Operating Expenses 1H 2018 YE 2017 0.3% 4.7% 1H 2018 YE 2017

8.4% 8.4%

19.7% 37.8% 17.9% 37.8% 50.0% 51.2%

71.5% 69.0% 11.0% 12.2%

Net interest income Fees & Commissions Personnel expenses Depreciation and amortization Other operating expenses FX related income Other non- interest income

Page 37 Consistent Profitable Growth

Sustainable Net Interest Margin % Attractive Cost/Income ratio

60.0% 12.0% 11.1% 52.8% 10.5% 10.4% 10.7% 48.4% 9.9% 10.1% 50.0% 48.4% 47.9% 47.8% 47.4% 45.2% 9.6% 42.1% 9.0% 8.4% 40.0%

6.0% 30.0% 20.0% 3.0% 10.0%

0.0% 0.0% 2011 2012 2013 2014 2015 2016 2017 1H 2018 2011 2012 2013 2014 2015 2016 2017 1H 2018

Stable Returns To Shareholders % Strong Return on Average Assets % 30.0% 5.0% 22.2% 22.9% 21.7% 21.2% 4.0% 4.0% 3.9% 3.7% 20.0% 20.2% 3.9% 3.6% 3.5% 3.4% 20.0% 18.6% 18.9%

10.0%

0.0% 0.0% 2011 2012 2013 2014 2015 2016 2017 1H 2018 2011 2012 2013 2014 2015 2016 2017 1H 2018

Source: Bank of Kigali Audited 2010-2017

Page 38 Commercial Banks in Rwanda 1H 2018

RoAE RoAA NIM* Tier 1 Capital 25.0% 50.0% 43.4% 21.2% 45.0% 20.0% 19.3% 19.7% 19.4% 40.0% 17.4% 35.0% 32.0% 15.0% 30.0% 25.0% 21.7% 23.… 21.3% 19.9% 21.2% 10.0% 9.5% 9.2% 20.0% 15.1% 16.8% 16.3% 7.0% 15.0% 9.9% 7.0% 11.4% 10.1% 10.0% 6.4% 8.7% 7.3% 7.2% 8.0% 7.8% 8.4% 5.0% 3.7% 2.5% 2.8% 2.3% 1.0% 5.0% 1.3% 1.0% 2.2% 1.0% 0.0% 0.0%

-5.0% -3.2%

-10.0% -10.3% -15.0%

Net Loans/Deposits* Liquidity Cost of funds Cost to Income NFR NPLs

120.0% 112.2% 600.0% 7.0% 555.0% 51… 100.0% 500.0% 6.0% 84.4% 85.4% 436.0% 427.… 80.… 5.0% 80.0% 71.4% 400.0% 67.4% 334.6% 345.3% 311.0% 61.8% 4.0% 60.0% 52.6% 51.5% 300.0% 251.0% 3.0% 42.1% 42.0% 36.9% 38.6% 40.0% 34.5% 200.0% 29.6% 27.2% 30.2% 24.4% 2.0% 22.2% 24.2% 13… 94.7% 20.0% 101.9% 87.8% 83.7% 85.5% 79.8% 63.2% 5.8% 100.0% 1.0% 8.5% 8.4% 10.1% 2.… 4.… 40… 58.2% 7.6% 2.2% 3.4% 35.4% 43.9% 0.0% 0.0% 0.0%

Page 39 Top Regional Banks 1H2018 Gross NPL Ratios NPL Coverage

9.0% 8.4% 8.5% 90.0% 8.0% 7.7% 80.0% 79.5% 75.0% 7.1% 70.7% 7.0% 6.6% 70.0% 63.6% 6.0% 5.8% 56.5% 60.0% 52.2% 5.0% 50.0% 4.0% 40.0% 3.0% 30.0% 2.0% 20.0% 1.0% 10.0% 0.0% 0.0% BK Group CFC DTBK BARCLAYS KCB EQUITY BK Group SCBK DTBK KCB NBK NIC BANK Plc STANBIC BANK GROUP BANK Plc GROUP

Return on Average Equity NIM

30.0% 12.0% 10.7% 25.0% 23.9% 21.9% 21.2% 10.0% 9.0% 8.8% 8.6% 8.6% 8.0% 20.0% 18.0% 18.0% 17.5% 8.0% 15.0% 6.0% 10.0% 4.0% 5.0% 2.0% 0.0% 0.0% EQUITY KCB BANK BK Group COOP SCBK BARCLAYS BANK Plc BANK BANK BK Group BARCLAYS EQUITY KCB GROUP CO-OP STANDARD Plc BANK GROUP BANK CHARTERED Source: Cytonn Report 2018

Page 40 Top Regional Banks 1H2018 Cost to Income Ratio Cost of Funds Ratio

60.0% 54.9% 8.0% 52.0% 52.8% 53.7% 7.0% 50.1% 7.0% 50.0% 42.1% 6.0% 5.4% 40.0% 5.0% 5.0% 4.6% 3.9% 30.0% 4.0% 3.1% 20.0% 3.0% 2.0% 10.0% 1.0% 0.0% 0.0% CFC KCB EQUITY I&M CO-OP BK Group HF GROUP NIC GROUP DTB I&M COOP BANK BK Group Plc STANBIC GROUP GROUP HOLDINGS BANK Plc HOLDINGS

Non-Funded Income Loan to Deposit Ratio

45.0% 120.0% 40.0% 38.2% 99.5% 34.4% 34.0% 100.0% 91.1% 35.0% 84.6% 29.6% 81.2% 80.3% 78.2% 30.0% 80.0% 25.0% 20.0% 60.0% 15.0% 12.2% 40.0% 10.0% 8.0% 5.0% 20.0% 0.0% HF GROUP I&M CFC BK Group STANDARD DTB 0.0% HOLDINGS STANBIC Plc CHARTERED BK Group HF GROUP COOP BANK BARCLAYS KCB GROUP NIC BANK Source: Cytonn Report 2018 Plc BANK

Page 41 STRATEGIC OUTLOOK

Page 42 Strategic Outlook Objectives Strategies Outcomes

BK as a group intends to offer under one brand all Number of customers served by the group to Become the Universal financial services to its customers reach 1,000,000 by 2021 Financial Services Widen BK group scope of products and services provider of Choice for all Rwandans Grow Retail business, transactional revenue, Insurance, Strengthen BK Brand across all segments of the and brokerage and other services. population.

Provide main services of BK Group at Branch level Maintain manageable NPLs at less than 5%. Customer service champions to convert customers into digital Reduce concentration, introduce automated scoring models for Control Risk, strengthen systems and consumers personal loans, salary advances and SMEs loans. revolutionize customer Operational and Effective Call Centre Operational risk - enhance internal and external compliance experience solve customers pain points and ensure smooth and enjoyable Develop a business intelligence function to support decision making. customer experience. Provide key indicators in an easy format on a day to day basis.

Automation of processes, Integration of BK group systems to IT system stabilised at 99% uptime of core banking systems and on all channels Compliance with global IT standards Digital Financial ensure a single view of customers, grow the number of Institution Focus on 4 pillars: Connectivity, Automation, Decision-making, Innovation digital consumers to at least 20% of BK Group customers Establish and maintain a centralized data base for the group

. Digitize Manual processes- Back office functions in BK Bank and BKGI to be digitized Develop new digital channels ( Improve the APP, Prioritize mobile payments Attract and retain best talent in the industry such as mVisa) Targeted training in IT, Operations, Business Intelligence and Risk People Strong performance management systems Develop online training tools to ensure all BK Staff are regularly Retain best talent trained on policies, regulations

Page 43 Contact Information

For further information please contact:

Marc Holtzman Diane Karusisi Chairman of the Board Chief Executive Officer Email: [email protected] Email: [email protected] Mobile: +250 788 143 565 Mobile: +250 788 143 000

Emmanuel Batanage Christa Sangwa Company Secretary Investor Relations Officer Email: [email protected] Email: [email protected] Mobile: +250 788 304 228 Mobile: +250 788 143 565

Visit our website, www.bk.rw to access our Investor Presentations, Press Releases and Annual Reports. Telephone number: +250 252 593 100 Address: KN4 Avenue, PO Box 175, Kigali, Rwanda.

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