CRDB PLC The Bank that Listens

Investor Briefing 3rd Quarter 2016 : Key Statistics

Location - East Africa  Boundaries - Burundi, Democratic Republic of Congo, Kenya, Malawi, Mozambique, Rwanda,Uganda and Zambia  Area - 947,300 sq Km (includes the Islands of Mafia, Pemba & Unguja)  Geography Note - Mt. Kilimanjaro is the highest point in Africa and has glaciers - Indian Ocean in the East with vastly Coastal line - Bordered by 3 largest lakes on the continent- L. Victoria, L. Tanganyika and L. Nyasa - Blessed with abundant National Parks - Serengeti, Ngorongoro Crater, Selous, Mikumi, Ruaha, Katavi and Manyara - Island with massive historical attraction Olduvai George-first skull of human beings  Population - 50,000,000  Economy - Depends on Agriculture, Mining (Gold, Diamonds etc.) and Tourism. Others are construction, transport and oil & gas. - One of fastest growing economy with GDP 7.2% by September 2016. - Annual Headline Inflation Rate for the month of September, 2016 has declined to 4.5 % from 4.9% in previous month.

Source: International Monetary Fund (IMF) 2 About Us

. CRDB Bank Plc is a leading, wholly-owned private in Tanzania offering a comprehensive range of Corporate, Retail, Treasury, Premier and Microfinance Services.

. The Bank was established in 1996 and has grown and prospered over the years to become the most innovative, first choice, and trusted bank in the country.

. CRDB Bank was listed on the Stock Exchange on 17th June, 2009.

Vision and Mission

Vision: To be the leading Bank, which is customer need driven with competitive returns to shareholders.

Mission To provide competitive and innovative financial products and services leveraging technology to achieve distinctive customer experience. We strive to create value for stakeholders and the society.

3 Market Share- Total Assets & Total Deposits September 2016 September 2015 Total Assets STANBIC , 5% STANBIC, 4% STANCHART, STANCHART, 7% 5%

OTHERS, 34% NMB, 17% OTHERS, 40% NMB, 15%

EXIM, 4% EXIM , 4%

CITI, 3% CITI , 4% NBC, BARCLAYS, 3% BARCLAYS , 6% CRDB, 19% NBC, 0% CRDB, 20% 3% BANK M, 4% BANK M, 3% September 2016 September 2015 STANBIC, 4% Total Deposits STANCHART, STANBIC, 6% 5% STANCHART, 7%

OTHERS, 32% NMB, 18% OTHERS, 30% NMB, 16%

EXIM, 4% EXIM, 4% CITI, 2% NBC, BARCLAYS, 3% CITI, 4% CRDB, 21% 7% CRDB, 21% NBC, BARCLAYS, 3% 6% BANK M, 3% Source: Published Financials, September 2016 BANK M, 3% 4 Market Share – Shareholder’s Funds and & Advances September 2016 September 2015 Capital STANCHART, STANBIC, 4% 6% STANCHART STANBIC, , 5% 4%

NMB, 17% NMB, 18% OTHERS, 36% OTHERS, 38% EXIM, 4% EXIM, 5% CITI, 4% NBC, CITI, 4% NBC, BARCLAYS, 7% CRDB , 18% BARCLAYS, 6% CRDB, 17% 2% 1% BANK M, BANK M, 3% 3%

September 2016 STANCHART, September 2015 STANBIC, 3% Loans & Advances 5% STANBIC, 3% STANCHART, 6%

NMB, 18% NMB, 16%

OTHERS, 35% OTHERS, 36%

EXIM, 4% EXIM, 4%

CITI, 1% CITI, 1% BARCLAYS, 2% BARCLAYS, 3% NBC, 6% NBC, 5% CRDB, 21% CRDB, 21% BANK M, 5% BANK M, 5% Source: Published Financials, September 2016 5 Market Share- NPL to Gross Loans as at 30th Sept. 2016 September 2016 13.4% Industry ratio of Non –Performing Loans (NPL) to Gross Loans increased 11.0% 11.4% 10.4% to 8.4% in September 2016 from 6.7% 8.4% 8.4% in September 2015 which is above 6.4% ’s industry benchmark of 5%, thus indicating a 2.8% decline in the sector’s asset quality. 2.0% According to the Bank of Tanzania monthly economic review, credit to private sector by grew at an annual rate of 13.8% lower than 24.1 in 2015. The slower growth was attributed to a more cautious lending approach adopted by banks as part of September 2015 10.4% risk mitigation measures. 9.3% Most major economic activities 6.7% 7.0% 6.7% recorded a slower growth of bank 6.1% 5.5% credit. The growth of loans to 4.3% individuals and trade increased while growth was lower in agriculture, 2.6% transport and Communication. Declines also were registered in manufacturing, building and construction.

Source: BOT Report – Monthly Economic Review, September 2016

Source: Published Financials, September 2016 6 Banking Industry

. The Banking Industry continued to be competitive with 56 banks operating in the market, but the market is controlled by 5 Banks led by CRDB. . Banks continue to introduce innovative products and services such as Internet banking, Mobile banking and cards – Expanding with additional physical and e-banking outlets – ATM’s, mobile banking, internet banking. – Competition for payment system – Debit Cards, prepaid cards, Money transfer and payment system by telecoms i.e. M-Pesa . 5 banks including CRDB Bank PLC licensed to start Agency banking – Agent Banking is expected to enhance accessibility and convenience of banking services to customers. . Increasing competition for qualified staff. . Potential for growth expected in – Mortgage finance, Investment Banking, Agent Banking and micro-finance and insurance.

7 Bank Financial Performance as at 30th September, 2016

8 CRDB Profile end of September, 2016 . CRDB Bank PLC offers a comprehensive range of Corporate, 3000 Number of Staffs Number of Branches Number of ATMs 600 Retail, Treasury, Premier, 2,809 Agent banking and microfinance 2,651

services. 2500 2,387 500

. Network footprint of; 2158 478

– 248 branches including mobile 2000 1898 432 400 branches and service centers. 374 – 478 ATMs including 18 311 Depository ATMs, 1500 300 245 – 795 Merchants Network 248 – 2,321 Agents (Fahari Huduma). 1000 200 199 – 453 Microfinance partner institutions. 500 120 100 103 – CHINA DESK 93 – INDIA DESK 0 0 – Microfinance Subsidiary 2012 2013 2014 2015 Sept. 2016 – Burundi Subsidiary – CRDB Insurance Broker Company. 9 Shareholding Structure 30.06.2016 30.09.2016

NAME SHARES % SHARES % Above 10% DANIDA Investment Fund 548,067,648 21.0 548,067,648 21.0 PPF Pension Fund 260,882,095 10.0 260,882,095 10.0 Sub Total 808,949,743 31.0 808,949,743 31.0 Above 1% and less than 10% Cdc Group Plc / Re:International Finance Corporation / Jpmcb Fbo Africa Capitalization Fund Ltd 130,692,741 5.0 130,692,741 5.0 Mr. Aunali F Rajabali and Sajjad F Rajabali 106,706,104 4.1 106,706,104 4.1

General Partners IV Ltd-TZ 68,104,802 2.6 68,104,802 2.6

LAPF Pension Fund 58,077,549 2.2 58,077,549 2.2 Blakeney General Partners III Ltd 52,953,203 2.0 52,953,203 2.0

Kimberlite Frontier Master Africa Fund LP RCKM 41,990,927 1.6 47,292,695 1.8

Duet Africa Opportunities Master Fund IC 40,583,840 1.6 40,583,840 1.6 Hans Aingaya Macha 32,764,200 1.3 32,764,200 1.3

National Health Insurance Fund 32,040,040 1.1 32,040,040 1.1

Western Zone Tobacco Growers Cooperative Union Ltd 30,000,000 1.1 30,000,000 1.1 CMG Investment Ltd 29,330,971 1.1 29,330,971 1.1 Sub Total 623,244,377 23.8 628,546,145 24.0 Less than 1%

More than 28,000 shareholders 1,179,644,464 45.2 1,174,342,696 45.0

Grand Total 2,611,838,584 100.0 2,611,838,584 100.0

10 Investment Ratios

Share Performance As at 30th As at 30th Sept. 2015 Sept. 2016

Market Price Closing TZS 365 TZS 250

Earning per share (EPS) TZS 40 TZS 26

Price Earning Ratio (P/E) 9.1 9.6

Book Value (BV) 220.9 273.3

Price book value ratio (P/B) 1.8 0.9

Dividend Yield - -

Market Capitalisation (TZS billions) 953.3 666.0

Foreign Holding (%) 22.0 23.0

11 CRDB BANK Plc. – Group Financials as at 30th September, 2016 Performance Summary

(TZS Billion) Sept. 2015 Sept. 2016 % change Interest Income 351.4 441.1 25.5

Interest Expense 75.8 104.7 38.1

Net Interest Income 275.5 336.4 22.1

Net Fees and Commissions 106.4 108.9 2.3

Net Foreign Exchange Income 24.5 21.8 11.0

Operating Expenses 109.5 136.0 24.2

Profit Before Tax 147.9 113.0 23.6

Loans and Advances to Customers 3,068.4 3,361.2 9.5

Customer Deposits 4,022.3 4,051.5 0.7

Shareholder Equity 666.8 713.7 7.0

Total Assets 5,273.3 5,433.4 3.0

Return on Avg. Assets 4.2% 2.8% (33.3)

Return on Avg. Equity 25% 13.3% (46.8)

NPL/Total Loans 6.9% 11% 59.4 12 • Fee Income Composition • Deposit Composition

Fee Income Call, 1.5%

Comm. M- Pesa 4% Time, 17.9%

Others Foreign 13% Comm. Exchange Simbanking gain Savings, 35% 6% 15% Aplication Fees Commisions Demand, 13% (LC's & 45.5% guarantees) 4% Service Charge Draft & Card 21% transfers Business 6% 19%

Savings Demand Time Call

12 Financial Position Steady Balance Sheet Growth 3.0%

6000 35%

5000 29% 30%

25% 4000 18% 20% 20% 16% 3000 16% 18% 15%

13% 15%

5,408 5,433 2000 5,273

10%

4,210

billions 3,359

1000 3,075 5% Tzs 0 0% 2012 2013 2014 2015 Sept. 2015 Sept. 2016

Total assets Crdb growth Industry growth

Key sources of funding – Tzs billions Equity 713.7 • Customer Deposits Accounts Borrowing 14% for 77% of total Funding in the 487.4 9% Balance Sheet.

Deposit • The borrowing includes 4051.6 77% subordinated debt 84.5 bn, other borrowings 403.3 bn.

14 Loans and Advances (TZS in billion) 9.5%

28% 30% 38% 45% 44% 47%

72% 70% 62% 55% 56% 53%

2012 2013 2014 2015 Sept. 2015 Sept. 2016

Corporate Retail

Diversified Portfolio among key sectors and segments (Sept. 2016)

30% Individual 30%

18% Agriculture Mortgag 1% 16% 5% e 1% Hospitality 4% 4% Staff 5% Building and 4% Jun-16 Jun-16 Construction 3% 25% Personal 25% Transport and 6% Sep-16 Sep-16 Communication 6% 6% MFSC 4% 4% Manufacturing 4% SMEs 12% 19% 12%

Trading 15% Corporat 52% 44% e 53% Others 30% 0% 10% 20% 30% 40% 50% 60%

0% 10% 20% 30% 40% 50%

15 NPL by Business Segment – Sept 2016

• The Bank NPL Sept 2016 was TZS 378.3 bn. Compared to June 2016 – TZS 405.9 bn.

• Mainly contributed by corporate segment by 77% caused by some big corporate customer delays in payment and Tobacco customers.

• Affected corporate customer continue to turn around.

• The Bank continues to reduce exposure in Tobacco sector.

Sector NPL as at Sept 2016 Sector Provision as at Sept 2016

Agriculture 35% Agriculture 42% 27% 26% 1% Transport and Communication Transport and Communication 3% 1% 1% 12% Trade Trade 13% 14% 7% 7% Personal Personal 11% 8% 28% 9% Manufacturing Manufacturing 9% 10% 0% Hotels and Restauraants 10% 6% Hotels and Restauraants 7% 5% Building and Construction 2% 3% Building and Construction 2% 1% Others 24% 30% Others 13% 32% 0% 5% 10% 15% 20% 25% 30% 35% 40% 0% 20% 40% 60% Jun-16 Sep-16 Jun-16 Sep-16 17 Customer Deposits Funding Growth Through Deposit Mobilization Deposit Growth 4,500 0.7 % 30% • Quarterly deposit decrease by 0.7% 4,000 • Growth in deposits has 1,032 1,123 25% 3,500 997 decreased compared to Sept. 25% 2015 financials. 405 3,000 20% • 32% of the total deposits are 891 17% held in Foreign Currency. 2,500 17% • Foreign Currency deposits 641 13% 15% 2,000 decrease by 11% mainly 13% 12% 12% 3,214 resulting from decrease in 1,500 2,962 3,055 10% volume of forex transaction 8% 2,619 2,499 1,000 in the market. Appetite to billions 1,950 5% invest in TZS increase 500 Tzs compared to USD (USD rate - 0% has been stable through out 2012 2013 2014 2015 Sept. 2015 Sept. 2016 the year.) LCY FCY CRDB- Growth Industry Growth

8.6% CASA Time Deposits 761 • 80.6% of deposits is 644 765 contributed by CASA. 850 773 • Increase in CASA by 8.6% compared to Sept. 879 2015 3,485 3,384 3,287 2,512 2,617

1,712

billions Tzs

2012 2013 2014 2015 Sept. 2015 Sept. 2016

18 Cost to Income Ratio Net Interest Margin 60.40%

59.00% 10.50% 9.10% 9.00% 9.00% 8.20%

56.90%

56.20% 55.80%

2012 2013 2014 2015 Sept. 2016 2012 2013 2014 2015 Sept. 2016

Yield on Investment Cost of Fund

13.60% 2.30% 2.30% 2.30% 2.30%

12.90%

11.90% 11.40% 11.40% 2.00%

2012 2013 2014 2015 Sept. 2016 2012 2013 2014 2015 Sept. 2016

19 Capital adequacy ratio 22.0% 20.0% 18.0% 19.4% 19.0% 16.0% 16.0% 16.0% 14.0% 15.1% 14.5% 14.3% 14.1% 12.0% 13.1% 14.7% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2012 2013 2014 2015 Sept. 2016

Tier I Total

Risk weighted assets

4,500 71% 72 % 69% Market Risk 4,000 67% 70 % 3,500 66% 14 19 68 %

3,000 66 %

2,500 9 3 64 % 60% Credit Risk 2,000 3,624 3,883 62 % 1,500 60 %

billions 8 2,882 1,000 1,849 2,334 58 %

500 56 % Tzs Risk weighted - 54 % Assets/Total Assets 2012 2013 2014 2015 Sept. 2016

20 CRDB Bank Plc Subsidiaries 1. CRDB Microfinance Services Company Limited (MFSCL) . Offers Microfinance products through its subsidiary by partnering Microfinance institutions (MFIs) which are mainly SACCOS. Products offered are - microfinance loans, mobilise deposits from partner MFIs on behalf of the parent company, insurance products and services, information and communication technology solutions and support.

. The number of partner MFIs were 453 in September 2016.

. Total loans extended by the Bank to these institutions at the end of September 2016 stood at TZS 143.6 billion (wholesale 8.7 and retail 134.9).

. The subsidiary made a profit of TZS 9.1 billion as at 30th September, 2016.

. Number of service Centres-15

. Number of mini-service centres-60

. Number of mobile branches-8

. Number of retail clients 113,448

21 CRDB Bank Plc Subsidiaries cont. …. 2. CRDB Bank Burundi S.A.

. The Bank has a subsidiary in Burundi, “CRDB Bank Burundi S.A” which has three branches in • Burundi Economic Review Bujumbura. . The country went into recession during the year . The subsidiary recorded a profit of TZS 852 2015 with a GDP growth estimated at negative million as at 30th Sept. 2016 compared to TZS 3.9%. However, the outlook for 2016 projects a 69.7 million profit recorded in the 3rd quarter of slight improvement in the medium term due to year 2015. strong performance in the agricultural sector driven by a rebound in the coffee production and . The subsidiary total assets as at 30th Sept. 2016 in the construction sector, especially the grew to TZS 151.41 billion from TZS 131.8 implementation of major hydro-electric projects billion in Sept. 2015. funded by the World Bank. . Total deposits grew to TZS 66.1 billion . Prospects for Burundi remain uncertain as the compared to TZS 49.1 billion in Sept. 2015. country remains vulnerable to external shocks from commodity prices combined with the Performance trend Sept. Sept. Sept. persisting socio-political tensions. The Country’s 2014 2015 2016 main economic objectives focused on policy Total Asset TZS mn. 62,545 131,885 reforms and infrastructure projects to improve the 151,416 business climate and consequently improve Total Deposits TZS mn. 28,067 49,145 66,119 domestic revenues as the country is facing a decline in grants from donors. Net Profit (Loss) TZS mn. (2,909) 69 852

22 CRDB Bank Plc Subsidiaries cont. ….

• Burundi Economic Review Cont....

Macroeconomic indicators 2014 2015 2016 (projected) Real GDP growth % 4.7 -3.9 0.7 GDP per capita (Nominal US) 315 306 278 Real GDP per capita growth 1.5 -6.3 6.8 CPI inflation (2013 as basis = 100) 103.7 111.1 118.1 Budget balance % GDP -2.5 -5.5 -5.8 Current account balance % GDP -17.6 -6.03 -9.7

• Source: Data from IMF- World Economic Outlook, BRB quarterly release of June 2016 and Ministry of Finance.

23 CRDB Bank Plc Subsidiaries cont. …. 3. CRDB Insurance Broker Company

Background of the CRDB Insurance Broker Company

Up to 2011 CRDB Insurance Agency

2012 CRDB MFSCL Insurance Agency

2014 CRDB MFSCL Insurance Broker

2016 CRDB Insurance Broker Ltd

Gross Premium in Billions Particulars 2013 2014 2015 Business written 8,244 12,094 17,333

24 Strategic Focus for 2016 • The year 2016 marks the Bank’s 20th Anniversary. • The overriding theme for the year is ‘Consolidation to Achieve Operational Excellence’ which implies smarter delivery for accelerated profitability. - The Bank will reinforce expansion of the network and sales optimization - Transformation of the Microfinance subsidiary into a fully fledged Microfinance Bank. - Establishing an autonomous Insurance Brokerage Company • Key focus areas; - Core Banking upgrade was successfully implemented in May, 2016. - Development of SME credit rating model has been implemented now having corporate rating and mortgage scoring in use. - Development of M-Wallet (mobile money Wallet) to extend banking services through mobile phones to the unbanked population. - Expansion of FahariHuduma agent network by adding 850 agents (to reach 2,596 Agents) - Full operationalization of the Department of Centralized Operations. 25 CRDB Target Position by the Year 2017

Market position Financial results • Substantial strengthening of the bank’s • After tax profits increasing 2 fold vs. 2012 competitive position in majority of • Cost – income ratio decreased from 62% to products. 50 – 55% • Maintain position in total assets, loans & • ROE: 22% - 25% Advances, and the corporate deposits • Headcount of 3,000 employees market. • Target share of banking industry assets of 20% - 25% CRDB Group in Tanzania & Regionally Qualitative indicators International markets • Leading skills and capabilities in the • 3-5% of net income to come market – customer service & IT from international operations. • Strong corporate culture • Build foothold in East African • Highly qualified employees markets. • Effective and reliable system and • Target market share of 5% or processes more in Burundi by 2017. • Strong brand and loyal customers • Prepare for consolidation regionally.

26 CRDB Bank Awards and Recognition

CRDB Bank got 8 awards in different categories. 1. Africa Business Leadership Excellency Awards - African Leadership Awards, New York 2016. (Courtesy: African Leadership Magazine). 2. Best Retail Bank Tanzania – Banker Africa – East Africa Awards 2016. 3. The Best East African Bank of the year – African Banker Awards (AfDB Awards 2016). 4. Best Commercial Bank Tanzania – International Banker Awards 2016. 5. Best Innovation in Retail Banking Tanzania – International Banker Awards 2016. 6. Voted as the Best Local Trade Finance in Tanzania – Global Trade Review (GTR) 7. Certificate of Appreciation on financial contribution – Women’s Economic Empowerment Forum (WEEF) – The United Republic of Tanzania, Vice President’s Office. CEO 8. Top Individual Award ‘East African Banker Lifetime Achievement’ – Banker Africa – East Africa Awards 2016. 27 Thank You

28