BK Group Plc Investor Presentation Q1 2020 Page 1 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 8. Strategic Outlook 9. Contact Information Page2 2 Key Investment Highlights Best Bank in Rwanda 2019 Politically stable country with sound governance; Very attractive demographic profile: population of 12.4 Million; Sound Macro Robust economic growth averaging 8% pa in the last 5 years, expecting double digit GDP growth into 2020; Fundamentals Moderate inflation with rate of 13.1% as at March 2020; The 2019 World Bank Doing Business Report ranked Rwanda as the 38th out of 190 economies in terms of ease of doing business and 2nd in Africa Euromoney Award for Excellence 2019 Well regulated banking sector: fairly conservative regulator relative to other regulators in the EAC; Significant Significant headroom for growth given under-banked and excluded population; Banking Sector Potential Number of financially excluded population reduced from 11% in 2016 to only 7% in 2020; Total assets/GDP of 38.2% as at 31st December 2019. Strong Market positioning & sustainable leadership; Total assets FRw 1,1 billion, 29.9% market share as at March 31st, 2020; Market Net Loans FRw 678.6 billion, 33.3% market share as at March 31st, 2020; AA+/A1+ Credit Rating Leadership Customer Deposits FRw 685.1 billion, 30.2% market share as at March 31st, 2020; Shareholders’ Equity FRw 224.9 billion, 34.3% market share as at March 31st, 2020. Relatively high capital adequacy ratios since 2010 averaging > 20%; The rating reflects the Bank’s established domestic franchise value, Conservative Manageable level of non-performing 5.7% of gross loans as at March 31st, 2020; strong capital position, its systemic Business Liquid assets holding of 48.1% (minimum requirement 20%) at March 31st, 2020; importance, strong asset quality and Model financial performance. Liquidity Coverage Ratio stood at 147.1 (minimum requirement 100%) as at March 31st, 2020. Best Financial Reporting Company - Experienced Management team with significant banking sector experience; Rwanda 2019 Management Complemented by an experienced and diversified Board of Directors; Team Track record of producing stellar results. Profitable Robust asset growth at a CAGR of 17.7% (2014 - 1Q 2020); FRw 1,1 billion as at March 31st, 2020; Growth ROAA ranging from 2.4% - 4.4% between 2014 and 1Q 2020. Page3 3 COUNTRY OVERVIEW INFORMATION Page4 4 Rwanda - Country Profile National Facts Business Environment Area 26,338 sq km Ranked Second after Mauritius as the best destination to do business in Population 12.4 Million Africa in the World Bank 2019 Doing Business Report. Official Languages Kinyarwanda, French, English Rwanda has implemented over 22 business regulation reforms in the Capital Kigali areas measured by the World Bank Doing Business Index. Today, Rwandan Franc (FRw) 930.7FRw = 1 US$ as entrepreneurs can register a new business online in 6 hours. Currency at March 31st, 2019 Rwanda maintains its position as East Africa’s most competitive economy Credit Rating B+ S&P Global Ratings February 2020 and second in Africa by Global Competitiveness Index Report 2017/18. Nominal GDP 2019 US $10 Bn Nominal GDP Per Capita 2019 US $800 Rwanda has championed the establishment of the Single Africa Nominal GDP 2020P US $11 Bn Air Transport. To this effect, the construction Nominal GDP Per Capita 2020P US $900 of Bugesera International Airport has been prioritized. Qatar Airways has agreed to take 60% stake in airport.​ Macro Economic Indicators International Congress and Convention Association (ICCA) - a global Real GDP Growth rate - 2019 9.4% meeting industry network - ranked Rwanda as the 2nd most popular destination for international conferences and events on the continent. Real GDP Growth rate - 2020P 2.3% Inflation Rate - March 2020 13.1% Private Sector Growth - 2019 27.0% Private Sector Credit % GDP - 2019 21.5% Net Debt / GDP - 2019 47.9% Currency Depreciation against USD - March 2020 0.9% Foreign Reserves 2019 4-4.5 Months of Imports Source: BNR, S&P Report, EIU Page5 5 Sound Macro Fundamentals GDP per Capita continues to grow Population Pyramid for Rwanda Healthy GDP growth with moderating inflation 60% of the population is under 24 years. 93% of the population is under 54 years. 2.4% of the population over 65 years. Source: Finscope Rwanda Report Source: Ministry of Finance and Economic Planning, NISR, S&P Rating Page6 6 Macroeconomic Indicators GDP Breakdown By Economic Activity 2019 Trade Structure Rwanda’s exports are dominated by coffee, tea and minerals (tin, coltan and wolfram). The country remains a net importer. Major imports include fuel and oils, intermediary goods especially construction materials, consumer goods, and capital goods driven by ongoing infrastructure projects. Other services include Real estate activities 8%, public administration 15%, financial services 9% to mention but a few. “Made in Rwanda” has sought to improve the perceptions of Rwandan products within Rwanda, promote nascent industries, and boost the productivity of exporting sectors. Source: BNR Monetary Policy Statement, NISR, International Growth Centre/MINEACOM Trade Deficit as a % of GDP Current Account Deficit as a % of GDP Source: BNR, IMF, EIU Page7 7 Review of the Macro Economic Environment Macro Economic Review 2019 Inflationary Environment In the fourth quarter of 2019, GDP at current market prices was estimated to be Frw 2,290 billion, up from Frw 2,130 billion in Q4 2018. In this quarter, services sector contributed 49 percent of GDP, agriculture sector contributed 25 percent of the GDP, Industry sector contributed 17 percent of the GDP and 9 percent was attributed to adjustment for taxes and subsidies on products. Industry growth was 14% and contributed 2.5 percentage points to GDP growth. The main contributors in the industry sector were Construction activities which grew by 33% and Manufacturing activities which grew by 9%. Mining and Quarrying activities however decreased by 12%. Within Manufacturing, Metal products, machinery & equipment increased by 23%, and Chemicals and plastic products increased by 19% boosted mainly by the production of paints, plastic construction materials and Soaps. Exchange Rate Developments Agriculture growth was 5% and contributed 1.1 percentage points to overall GDP growth. Within agriculture, food crops production was 4% and did not change compared to the same quarter of 2018. Export crops decreased by 4% mainly due to the decrease of 11% in the production of Coffee. However other cash crops (incl. flowers, pyrethrum & sugar cane) also increased by 9%. The service sector grew by 8 percent and contributed 3.7 percentage points to overall GDP growth. The growth in Services sector is due to an increase of 14% in wholesale & retails trade activities of locally made and imported products, 12% in transport services, 25% in Information and telecommunication, 13% in financial services, 12% in Hotel & restaurant services, 9% in Professional, scientific & technical activities, 8% in Administrative & support service activities, while Human health & social work activities decreased by 1%. Source: BNR, NISR Page8 8 BANKING SECTOR OVERVIEW Page9 9 Significant Banking Sector Potential Banking Assets/GDP Banking Assets Per Capita 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 70% 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 Interest Rate Analysis (1) Source: Exotic Frontier Equities (2) Source: National Bank of Rwanda Monetary Policy Statement (3) Source: Population stats by World Bank 10Page 10 Financial Sector Overview Rwanda Banking System Total Assets Rwanda Insurance Sector Total Assets Source: BNR Sectors Review The Financial sector is expected to remain sound and stable. The annual Inflation rate stood at 13.1%, while the FRw depreciation against the USD stood at 0.9%. Banking assets registered annual growth rate of 4.8% to FRw 3,643 trillion in March 2020 from FRw3,476 trillion in December 2019. Profitability indicators in March 2020 stood at 2.0% and 12.0% for Return on assets (ROA) and return on equity (ROE) from 2.1% and 12.0% respectively, in the same period in 2019. The asset quality of the industry is generally improving; non-performing loan ratio (NPL ratio) stood at 5% as at March 2020 compared to 6.8% in March 2019. Source : BNR 11Page 11 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 2015 2016 2017 2018 2019 1Q 2020 Bank of Kigali Market Share by Total Assets 26.3% 26.8% 27.1% 28.4% 29.3% 29.9% * Market share among banking sector 12Page 12 Market Share Dynamics Market Share for Banking Sector Bank of Kigali vs. Banking Sector’ Growth, CAGR 2014 - 1Q 2020 Selected Indicators 1Q 2020 Market Share for Commercial Banks 1Q 2020 Source: BNR, Published results for commercial banks 13Page 13 Strong Market Leadership - 1Q 2020 1 36.5% 41.6% 36.1% 45.6% 2 12.0% 12.3% 10.9% 9.2% 3 11.7% 10.3% 10.9% 9.0% 4 10.0% 9.8% 10.7% 8.9% 5 8.0% 9.0% 8.1% 6.2% 6 6.6% 8.4% 6.3% 5.9% 7 5.1% 2.5% 6.3% 4.6% 8 3.6% 2.2% 4.3% 4.0% 9 3.1% 1.5% 3.8% 3.1% 10 1.8% 1.2% 1.5% 1.8% 11 1.5% 1.2% 1.1% 1.6% Source: 1Q 2020 Published Results 14Page 14 BANK OVERVIEW 15Page 15 Background and History 16Page 16 A Snapshot of Bank of Kigali Key Facts BK Group Plc is a holding company with 4 subsidiaries: Bank of Kigali Plc, BK General Insurance, BK TecHouse and BK Capital Ltd.