Bank of Kigali Investor Presentation Q1 & 3M 2012

7/31/2019 Bank of Kigali Investor Presentation Q1 & 3M 2012

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BANK OF KIGALIINVESTOR PRESENTATION

Bank of Kigali Investor PresentationPage 1

June 2012


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DisclaimerThis presentation contains statements that constitute forward-looking statements, including, but notlimited to, statements relating to the implementation of strategic initiatives and other statementsrelating to our business development and financial performance.

While these forward-looking statements represent our judgments and future expectations concerningthe 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, governmentalpolicies, legislative and regulatory trends, (2) movements in local and international currency exchangerates, interest rates and securities markets, (3) competitive pressures, (4) technological


2

eve opmen s, c anges n e nanc a pos on or cre wor ness o our cus omers, o gors ancounterparties and developments in the markets in which they operate, (6) management changes andchanges to the Banks structure and (7) other key factors that we have indicated could adversely affectour business and financial performance, which are contained elsewhere in this presentation and in ourpast and future filings and reports, including those filed with the National Bank of Rwanda and theRwanda Stock Exchange.

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.


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Presentation Team

J a m e s G a t e r aC h i e f E x e c u t i v e O f f i c e rE m a i l : j g a t e r a @ b k . r wT e l : + 2 5 0 2 5 2 5 9 3 1 2 1

L a d o G u r g e n i d z eC h a i r m a n o f t h e B o a r dE m a i l : l g u r g e n i d z e @ b k . r wM o b i l e : + 9 9 5 5 9 9 4 7 7 2 7 2

l a d o . g u r g e n i d z e . 2 0 0 8


3

L a w s o n N a i b oC h i e f O p e r a t i n g O f f i c e rE m a i l : l n a i b o @ b k . r wM o b i l e : + 2 5 0 7 8 8 3 0 2 0 7 6

J o h n B u g u n y aC h i e f F i n a n c e O f f i c e rE m a i l : j b u g u n y a @ b k . r wM o b i l e : + 2 5 0 7 8 8 3 0 6 1 0 0


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Agenda

1. Key Investment Highlights

2. Country Overview Information

3. Banking Sector Overview4. Bank Overview


.

6. Business Overview

7. Review Of Financial Performance In Q1 2012 & 2011

8. Strategic Outlook

9. Contact Information


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COUNTRY OVERVIEWINFORMATION


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Rwanda Country Profile

Nominal GDP (2011) US$ 6.4 billion

N minal GDP P r Ca ita 2011 US 595

Rwanda has been recognized by the World Bank as the second

most active reformer globally 2005-2011

Since 2005, Rwanda has implemented over 22 business

regulation reforms in the areas measured by the World Bank

Doing Business Index

Today, entrepreneurs can register a new business in 24 hours

as well as online

Area 26,338 sq kmPopulation (2010) 10.7 millionOfficial Languages Kinyarwanda, French, EnglishCapital KigaliCurrency Rwandan Franc (RWF)Credit Rating B/Stable (Fitch Ratings)

B/B (Standard & Poors)

Business Environment

Macro Economic Indicators

National Facts


7

Real GDP Growth Rate 2011 8.6%

Real GDP Growth Rate 2012E 7.6%

Inflation Rate (Feb 2012) 7.9%

Private Sector Credit Growth (2011) 28.4%

External Debt to GDP (2011) 15.4%

Currency Depreciation (2011) 1.6%

FDI as % of GDP (2011E) 1.9%Source: IMF, CIA World Factbook, Ministry of Finance and Economic Planning, NationalInstitute of Statistics Rwanda, National Bank of Rwanda,


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GDP per Capita continues to grow Population Pyramid for Rwanda, 2011

Sound Macro Fundamentals

20-39

40-59

60 and above

9.2 9.6 9.8 10.1 10.4 10.7

333391

479 519 540

595

0

100

200

300

400

500

600

700

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011

US $Mln

Population Nominal GDP Per Capita


3.1 3.7 4.7 5.2 5.6 6.4 6.6

8.8% 9.1%

15.4%

10.3%

2.3%

8.3%7.5%

0.0%

2.0%

4.0%6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

0

1

2

3

4

5

6

7

2006 2007 2008 2009 2010 2011 2012E

US$ Bn

Nominal GDP (US$ Bn) Inflation (%)

Healthy GDP growth with moderating inflation

Source: National Institute of Statistics RwandaSource: Ministry of Finance and Economic Planning, IMF

54% of the population is under 19 years.

83% of the population is under 40 years.

3% of the population over 65 years.

30.0% 20.0% 10.0% 0.0% 10.0% 20.0% 30.0%

0-19

Female % Male %


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GDP Breakdown By Economic Activity 2011

Macroeconomic Indicators

Rwandas exports are dominated by coffee, tea and

minerals(tin, coltan and wolfram).

The country remains a net importer. Major imports include

intermediary goods especially construction materials,

consumer goods, energy and lubricants and capital goods.Informal cross-border trade is a significant component of

Rwandan external trade (approx. 18% of total exports). More

than 78% of these exports are destined to DRC.

Official reserves were estimated at 7.7 months of goods

Agriculture,31.9%

Realestate, businessservices, 8.0%

Transport,storage,

communication,7.5%

Manufacturing,

6.6%

Education,5.5%

Transport,storage,

communication,7.5%

Finance,insurance,

2.8%

Mining andquarrying, 1.3%

Trade Structure


12% 11% 10%

14% 15%11%

14% 15% 13%

0%

5%

10%

15%

20%

2003 2004 2005 2006 2007 2008 2009 2010 2011

Current Account As a % of GDPTrade Deficit As A % Of GDP

9

Source: NBR Monetary Policy Statement

Source: Ministry of Finance and Economic Planning, IMF

imports for Dec 2011

4%

9%

12% 13%

17%

0%

5%

10%

15%

20%

2007 2008 2009 2010 2011Current Account Deficit as a % of GDP

Source: National Institute of Statistics Rwanda

Source: National Institute of Statistics Rwanda

Wholesale andretail

trade, 12.9%

Construction,8.3%


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BANKING SECTOR OVERVIEW


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2011 Banking Assets/GDP Large Unbanked Population

Economy is still cash based with bank accounts being used

mostly for cash deposits and withdrawals

Approximately 20% of the population is banked

90% of banked adults have a product with UBPR or credit

unions

2011 Banking Assets Per Capita 5

Significant Banking Sector Potential

(US$)

Source: Finscope Rwanda 2008

Prudential Regulations

CAR (Tier One) 10%

33%

50%

70%

U anda*

Tanzania*

Kenya* 534

274

165

Kenya

Tanzania

Uganda


(1) Source: Central Bank of Kenya and Economic Survey 2011(2) Source: IMF and Tanzania Banking Survey 2011 (Serengeti Advisers)(3) Source: IMF and Bank of Uganda Joint Annual Supervision & Financial Stability Report December 2010(4) Source: NISR, National Bank of Rwanda Monetary Policy review(5) Source: Population stats by IMF*2010 figures are used for Tanzania and Uganda

Total CAR 15%

Liquidity Ratio 20%

Reserve Requirement 5% of total deposits

Lending in foreign currency Restricted to exporters

25%Rwanda 124Rwanda


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Banking Sector OverviewRwanda Banking System Total Assets

Source: NBR Monetary Policy & Financial Stability Report 2011

Interest Rate Analysis

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%

D e c J a n F e

b M a r

A p r

M a y J u n J u l A

u g S e p

O c t

N o v

D e c J a n F e

b

M a r c h

A p r i l

2010 2011 2012

Key Repo Rate T-Bills Rate Deposit Rate Lending Rate

856 9221,011

1,226

1,475 1,520

0

200

400600

800

1,000

1,200

1,400

1,600

2007 2008 2009 2010 2011 Q1 2012

US$ MM


Source: National Bank of Rwanda, Bank of Kigali Data

Branch Coverage Recent Regulatory Reforms To Improve Access To Credit

Enactment of Law on Mortgages, requiring the registration of mortgages

and enabling lenders to foreclose on defaulters

Establishment of Commercial Courts dealing solely with commercial

disputes

Reorganization of the Land Centre which has computerised records and

operations in addition to timely issuance of property titles

Reorganization of the Office of the Registrar General to enhance and fast

track registration of mortgages and foreclosures

Establishment of Credit Reference Bureau to enhance information sharing

among banks and other financial institutions in order to assist with credit

risk assessment

12

The total number of branches and outlet networks in the banking

industry is approximately 683, with Bank of Kigali having 47

branches and outlets.


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Timeline Of Foreign Investment In The Rwandan Banking Sector

2004 2006 2007 2008 2009 2010 2011

80% stakein BCR 40% stake in Cogebanque


2008 2009 2010 2011 Q1 2012

Bank of Kigali Market Share by Total Assets 23.4% 26.4% 27.4% 32.3% 32.8%

30%stake inBPR


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Banking Sector Overview Contd

Case study: Rwanda six out of nine banks in Rwanda are owned by regional and Pan African bank and havelost market share to locally-run banks

Market Share By Total Assets In 2008 Market Share By Total Assets In 2011

Top three localbanks, 50.5%

Six foreign-controlled banks,49.5%


Five foreign-controlledbanks, 48.3%

Market Share By Total Assets In Q1 2012


Six foreign-controlledbanks, 49.5%


March 2012Page 14

Source: the National Bank of Rwanda, company estimates

BANK OFKIGALI

UBPR

BANK OFKIGALI

BPR

BANK OFKIGALI

UBPR


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Competitive Landscape

Market Share Dynamics

Source: NBR Supervision Department, BK Company Filings and Published results of Banks

Banking Sector Growth Vs Bank of Kigali Growth

45.6%

21.4%

33.4%

93.2%

23.0%29.9%

23.8%

52.4%

0%10%20%

30%40%50%60%70%80%90%

100%

Total AssetsGrowth

Net Loan BookGrowth

Client DepositsGrowth

Shareholders'Equity

Bank of Kigali Growth in 2011 The Rwandan Banking Sector Growth in 2011

26.4%26.8%

25.8%26.7%

27.4%31.5%

25.9%

32.2%32.3%29.4% 28.2%

41.9%

32.8%

28.2%

30.2%

42.8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Total Assets Net Loans Customer Deposits Shareholders' Equity

2009 2010 2011 Q1 2012


15

Concentration of Banking Sector AssetsPerformance Indicators Q1 2012

Source: Published Bank Results

31 December 2011

Top 5Banks,78.6%

Others,21.4%

Source: NBR Supervision Department, BK Audited Full Year 2011 Results, BK Q1 2012 Reviewed results

6.6%

2.3%

14.0%

6.1% 4.4%

20.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

NPLs/Gross Loans Return on Average Assets Return on Average Equity

Asset Quality Annualised Profitability ratios

Banking Sector BK

31 March 2012

Top 5Banks,79.5%

Others,20.5%


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BANK OVERVIEW


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Background And History

A+ credit rating byGCR (Global Credit

Rating)

20112006

Established in 1967as a JV with

Belgolaise S.A

1967

Currentmanagement team

assembled

2007 2009

Supervisory Boardenhanced &

internationalised

2010

US$62.5 mlnInitial Public

Offering of 45%of its shares andlisting on the RSE

2007


18

Government of Rwanda acquired

50% stake fromBelgolaise becoming100% shareholder

New strategyfocusing on the

universal bankingbusiness model andprofitable growth

adopted

EIB loan signed:

EUR 5 MM 7 years

AFD loan signed: US$ 20 MM 10 years

AfDB loan signed :-US$12 MM-10 years


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Key Facts

A Snapshot Of Bank Of Kigali

The leading bank in Rwanda (32.8% market share by total assets as of 31March 2011), offering a wide spectrum of commercial banking services to

corporate, SME and retail customers

As of 31 March 2011 the Bank had:

Over 13,000 corporate accounts

Over 152,000 retail current accounts

47 branches26 ATMs

628 employees

27,775 debit cards in issue

Western Union Agent for International Transfers

Branch Network Evolution

Source: Bank of Kigali Audited Financials 2007-2011

US$ million 2007 2008 2009 2010 2011 Q1 2012

CAGR2007-2011*

Rwf/USD Period End rate 547.7 560.0 573.2 594.4 604.4 607.1Total Assets 221.8 215.7 264.9 332.6 476.3 499.1 24.1%Net Loans 88.8 128.7 134.5 170.6 203.7 218.0 26.1%Client Deposits 186.0 167.6 191.0 228.3 299.5 335.5 15.5%Shareholders' Equity 23.4 28.4 32.3 53.6 101.9 106.8 48.1%Net Income 7.8 10.1 9.2 10.4 14.4 5.3 19.5%Growth figures are calculated on RwF Values.

MARKET SHARETotal Assets 29.0% 23.4% 26.4% 27.4% 32.3% 32.8%Net Loans 25.3% 24.4% 26.8% 31.5% 29.4% 28.2%Client Deposits 30.6% 24.6% 25.8% 25.9% 28.2% 30.2%Shareholders' Equity 28.3% 22.3% 26.8% 32.2% 41.9% 42.8%


6 26 26 2652

97

202265

34 57127 152

0

200

400

2009 2010 2011 Q1 2012

ATMs POS Retail Current Accounts('000')

11 14 18 33 44 47

267 295 303453

602 628

0

200

400

600

800

0

20

40

60

2007 2008 2009 2010 2011 March-12

Number of Branches Number of Employees

ne o two an s n wan a t at o er nternat ona car s.

On average, the break-even period for new branches is less than 24 months

19

Growth in ATMs, POS Terminals and # of Retail Current accounts


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CORPORATE GOVERNANCE


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Shareho ld ing S t ruc tu reShareholding Structure

31 May 2012Current price, RwF 125Market Cap, US$ mln 136.9Free float 45%Free float in US$ mln 61.6Average daily traded volume in US$ mln 0.12Common shares outstanding, mln shares 667.312-month high 19112-month low 118P/E YE 2012F 7.5xP/BV YE 2012F 1.2xDividend yield, 2011A 5.2%Dividend yield, 2012F 7.7%Ticker Code BOK

Government of Rwanda, 29.8%

Rwanda SocialSecurity Board,

Regional InstitutionalInvestors, 4.8%

BlackneyManagement, 7.3%

Other International

InstitutionalInvestors, 11.1%

Employees &Directors, 1.1%

Retail Investors,15.4%

Free float 45%

Bank of Kigali Investor PresentationPage 21 21

Share Price Performance since start of trading

100125150

175200

1 - S

e p - 1

1

6 - S

e p - 1

1

1 1 - S

e p - 1

1

1 6 - S

e p - 1

1

2 1 - S

e p - 1

1

2 6 - S

e p - 1

1

1 - O

c t - 1

1

6 - O

c t - 1

1

1 1 - O

c t - 1

1

1 6 - O

c t - 1

1

2 1 - O

c t - 1

1

2 6 - O

c t - 1

1

3 1 - O

c t - 1

1

5 - N

o v - 1 1

1 0 - N

o v - 1 1

1 5 - N

o v - 1 1

2 0 - N

o v - 1 1

2 5 - N

o v - 1 1

3 0 - N

o v - 1 1

5 - D

e c - 1 1

1 0 - D

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1 5 - D

e c - 1 1

2 0 - D

e c - 1 1

2 5 - D

e c - 1 1

3 0 - D

e c - 1 1

4 - J

a n - 1

2

9 - J

a n - 1

2

1 4 - J

a n - 1

2

1 9 - J

a n - 1

2

2 4 - J

a n - 1

2

2 9 - J

a n - 1

2

3 - F

e b

- 1 2

8 - F

e b

- 1 2

1 3 - F

e b

- 1 2

1 8 - F

e b

- 1 2

2 3 - F

e b

- 1 2

2 8 - F

e b

- 1 2

4 - M

a r - 1

2

9 - M

a r - 1

2

1 4 - M

a r - 1

2

1 9 - M

a r - 1

2

2 4 - M

a r - 1

2

2 9 - M

a r - 1

2

3 - A

p r - 1 2

8 - A

p r - 1 2

1 3 - A

p r - 1 2

1 8 - A

p r - 1 2

2 3 - A

p r - 1 2

2 8 - A

p r - 1 2

3 - M

a y - 1

2

8 - M

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1 8 - M

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2 3 - M

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2 8 - M

a y - 1

2

PriceClosing Price Volume Weighted Average Price Initial Price

oom erg .

Rwf/USD Exchange Rate (e-o-p) of 609.3 as at 31 May 2012*Capital gains on the RSE transactions are exempted from Capital Gains Tax

.

Other State-OwnedEntities, 0.7%

Local InstitutionalInvestors, 2.2%


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Corpora te Governance

The Board of Directors is comprised of nine independent non-executive directors (including two non-resident directors with extensive expertise in international banking practices)

The Board of Directors is approved by the Central Bank and meets on a quarterly basis or more frequently

as the business demands

The Board sets the strategy and retains full responsibility for the direction and control of the Bank as

spelled out in the Memorandum and Articles of Association, the Board Charter and the corporate


governance guidelines

The Board sub-committees have clear TORs which underscore the scope and context of their

performance as approved by the Board & corporate governance regulation

The Board receives detailed financial information and regular presentations from the management on the

Banks business performance, this enables the Directors to make informed decisions on

governance, strategic, financials and operational issues


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BUSINESS OVERVIEW


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68.5%

31.5%

Corporate Loans Retail Loans

Gross Loan Portfolio Loan Book Segmentation

Overview Of The Loan BookRwF Bn

Source: Bank of Kigali

31 December 201131 March 2012

64.8%

35.2%

45.965.2 66.5

84.8 89.5 89.310.8

13.6 14.4

20.741.2 48.5

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

2007 2008 2009 2010 2011 March-12

Corporate Loans Retail Loans

56.6

78.8 80.9105.5

130.7137.8


orporate oan oo , arc

Source: Bank of Kigali Corporate Loans: RWF 89.3 Bn

Over 1Billion,31.1%

500M-1Billion,13.3%

100M-500Million,33.8%

50M-100Million,

9.1%

0-50million,12.8%

Manufacturing,

10.4%

Construction,

28.4%Commerce,restaurants

& hotels,48.3%

Transport &Communica

tion,6.9%

Others, 6.0%


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71.2%

28.8%

Corporate Deposits Retail Deposits

Customer Deposits Growth

Customer Deposit Base


Customer Deposit Segmentation

70.1%

29.9%

31 December 2011

78.0 69.6 81.6 99.3 126.8 145.0

23.9 24.227.8

36.4

54.258.6

0

50

100

150

200

250

2007 2008 2009 2010 2011 March-12

RwF bnCorporate Deposits Retail Deposits

181.0

135.7109.7

93.8101.9

203.531 March 2012


Structure of Deposits, 31 March 2012 Customer Deposits Concentration

25

Corporate: RWF 144.8 Bn Retail: RWF 58.6Bn

Notes: * depositors with total balances above 5% of shareholders equity of BoKSource: Bank of Kigali

LargeDeposit

ors*,14%

Other,86%69.2%2.9%

27.9%

CB Demand DepositsCB Collateral DepositsCB Term Deposits

13.4%

1.5%

85.2%

RB Term DepositsRB Savings DepositsRB Demand Deposits


LargeDepositors

, 18.6%

Other,81.4%


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Corporate Deposits: Rwf 144.8 Bn

Description Key Segments as at 31 March 2012

Clients include corporate, SMEs and NBAs*

Interest rates were in the 15.0%-17.25% range as of

December 2011

Key products:

CAPEX loans: long-term loans for investment or

expansion of the business

Commercial mortgage loans: typical customer

participation at 30% of property value, typical

tenor of up to 10 years

Working capital loans: financing business needs

Corporate Banking

Corporate Loans: RWF 89.3 Bn

71.0%

25.3%

3.7%

78.8%

11.0%

10.2%


Number of Corporate Accounts


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Executing The Retail Strategy



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Description Key Segments as at 31 March 2012

Retail Banking

The Banks retail business is primarily focused on mortgages andconsumer loans with notable share of overdrafts

Key products:

Mortgage loan: up to 10 years with typical customer participation

at 30% of property value

Consumer loan: up to 12x monthly salary and 48 months

Overdraft: up to 50% of monthly salary (normally repaid in 30days)

Other products include credit cards and asset leasing

Strategy:

Build a ubiquitous branch footprint throughout the country

Retail Loans: RWF 48.5 Bn Retail Deposits: RWF 58.6 Bn

38.8%

9.4%

39.9%

7.8%

Consumer loans Overdrafts

13.4%

1.5%

85.2%

RB Term Deposits RB Savings Deposits


Number of Retail Accounts

28


Build sufficient channel capacity to be able to service 500,000+

clients by 2015Build out the retail product lineup to achieve relevance to the

daily lives of the banked population

Expand credit card/debit card offering to other providers

(MasterCard, Amex etc)

Our Products

Mortgages Micro loans RB Demand Deposits

33,504 57,297 127,280 152,265

41,900

72,182

153,206

185,073

0

50,000

100,000

150,000

200,000

2009 2010 2011 Q1 2012

Retail Current Accounts Total Retail Accounts


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Ubiquitous footprint

Agency Banking

Growing Our Distribution NetworkIncreasing functionalities of our delivery channels

2012 TargetsCash out and Cash in at Point of sale merchants

Deposit taking ATMs

Cardless Transactions at ATMs through our mobile banking and mobile wallet

Recruitment of 400 existing businesses as agents in

underway

Agents will be able to perform cash in and cash out

transactions, account opening and micro loan

4456

6577

89101

020406080

100120

2011 2012F 2013F 2014F 2015F 2016F

Branches

86

115 125145

165

100120140160180 ATMs


applications and disbursement.

Introduce 20 BK owned agent kiosks in high trafficareas

Partnership with mobile telcos for our clients to

transact at their agents

Other Initiatives

Launch of mobile branches: so far 5 mobile vans have been ordered for

2012

Become super agents for mobile telcos to attract their customers to BK

and increase cross selling opportunities

26

02040

60

2011 2012F 2013F 2014F 2015F 2016F

202

1,000

1,850

2,650

3,400

4,100

0500

1,0001,5002,0002,5003,0003,5004,0004,500

2011 2012F 2013F 2014F 2015F 2016F

POS


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Growing our Card Business Increasing our Mobile product offering

Expanding Our Self Service Products

2011 AchievementsIssuing of approximately 40,000 VISA

Electron cards

Interoperability of our ATMs with VISA

Electron and local proprietary Cards

2012 TargetsAMEX acquiring. (CUP and Diners Club

ac uirin have alread been com leted

1. Enhancing our mobile banking service

In 2011, the Bank upgraded its SMS banking service to a

mobile banking service allowing customers to perform

the following transactions:

Purchasing prepaid TV, airtime and electricity

Check Balances and Bank information

Order cheque books

2. Launching our mobile payment platform

Attractive Products


Launch of three new card products

VISA Prepaid

VISA Classic (Credit Card)

VISA Gold (Credit Card)

Launch of E-commerce

This platform will enable our clients to make purchases

at selected merchants using their mobile phones

Expected Launch Date: June 2012

3. Launch of mobile wallet

Issuing of a mobile wallet that is either linked to a

current account or not linked to a current account

Wallet will enable our customers to store cash and

transact at our ATMs and agents


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REVIEW OF F INANCIALPERFORMANCE IN Q1 2012 &2011


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Balance Sheet HighlightsTotal Assets Total Liabilities

108.7 104.9

133.3

165.8

226.3238.2

0.0

50.0

100.0

150.0

200.0

250.0

300.0

2007 2008 2009 2010 2011 Q1 2012

RwF bn

121.5 120.8

151.9

197.7

287.9303.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

2007 2008 2009 2010 2011 Q1 2012

RwF bn


Shareholders Equity Net Loans

48.7

72.1 77.1

101.4

123.1132.4

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2007 2008 2009 2010 2011 Q1 2012

RwF bn

12.815.9

18.5

31.9

61.664.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2007 2008 2009 2010 2011 Q1 2012

RwF bn

A Q li


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1.1%0.4%

1.9%

2.5%

3.8%

2.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

2007 2008 2009 2010 2011 Q1 2012 *

Cost of Risk**, %

Asset Quality

Notes: * Q1 2012 figure is annualized** LLP charge / Average gross loans for period

Manageable NPL Ratio Improving Coverage Ratio

19.4%

15.4%

8.3% 8.5% 8.3%6.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2007 2008 2009 2010 2011 Q1 2012

7.5 9.2 5.8 8.1 10.1 8.1

72.6%

55.3%57.1%

45.8%

69.1%64.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2007 2008 2009 2010 2011 Q1 2012

Rwf BnNPLs Coverage ratio


CorporateNPLs,67.9%

RetailNPLs,32.1% Corpor

ateNPLs,68.3%

RetailNPLs,31.7%

Collateral Structure

Source: Bank of Kigali Audited IFRS Statements 2007-2010, Bank of Kigali Unaudited IFRS Statements 2011

NPLs by segment

31 March 2012 31 December 2011 CashCover, 1.5%

Guarantees,1.8%

RealEstate, 56.2%

Unregistered,19.3%

Unsecured,21.2%


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67.2%5.6%

21.4%

5.7%

Deposits Due to Banks Shareholders Equity Other

62.9%

6.6%

21.4%

9.1%

Funding Structure, % Significant Potential For Growth In Higher Yielding Assets

Funding


47.8%

76.8%70.4%

74.7%68.0% 65.0%

40.1%

59.7%

50.8% 51.3%42.8% 43.7%

0.0%

10.0%

20.0%30.0%

40.0%

50.0%

60.0%

70.0%

80.0%90.0%

2007 2008 2009 2010 2011 Q1 2012

Net Loans/Customer Deposits Net Loans/Assets


Strong Capital And Liquidity Position Highlights

Deposits are the primary source of funding with share of deposits

exceeding 60% as at March 2012

Strong growth in deposits has been driven by our branch expansion

The Bank has also signed 3 long-term credit lines with the European

Investment Bank worth 5 million for 7 years, US$20 million for 10

years with the French Development Agency and US$12 million for 10

years with the African Development Bank,

The Bank had drawn down EUR 2.6 m & US$5.0 million on the EIB &

AFD loans respectively by December 2011

Source: Bank of Kigali audited IFRS Statements

14.0% 14.9%19.9% 20.1%

29.1% 28.6%35.9% 34.7%

42.1% 43.9%

60.8%56.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2007 2008 2009 2010 2011 Q1 2012

CAR,% Liquidity Ratio, %

Q1 2012 P f Hi hli h


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Q1 2012 Performance Highlights

Net Interest Income Net Non-Interest Income Total Operating Income

3.6

5.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Q1 2011 Q1 2012

Rwf bn+40%

6.4

8.7

0.01.02.03.04.0

5.06.07.08.09.0

10.0

Q1 2011 Q1 2012

Rwf bn

+36%

2.7

3.6

0.0

0.5

1.01.5

2.0

2.5

3.0

3.5

4.0

Q1 2011 Q1 2012

Rwf bn

+31%


1.9

3.2

0.0

0.51.0

1.5

2.0

2.5

3.0

3.5

Q1 2011 Q1 2012

Rwf bn

+69%

o a pera ng os s ro e ore rov s ons Net Income

ROAA* 4.4%ROAE* 20.5%

3.1

3.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.54.0

4.5

Q1 2011 Q1 2012

Rwf bn +26%

3.3

4.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Q1 2011 Q1 2012

Rwf bn

45%

*Annualized

2011 P f Hi hli h


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2011 Performance Highlights

Net Interest Income Net Non-Interest Income Total Operating Income

12.2

16.6

-

2.0

4.06.0

8.010.012.014.016.018.0

2010 2011

RwF bn

+36%

9.0

12.9

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2010 2011

RwF bn

+43%

21.2

29.5

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2010 2011

RwF bn

+39%


Total Operating Costs Profit Before Provisions Net Income

10.1

14.3

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2010 2011

RwF bn

+42%

11.1

15.2

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2010 2011

RwF bn

+37%

6.2

8.7

-1.02.0

3.04.05.06.07.08.09.0

10.0

2010 2011

RwF bn

+40%

ROAA 3.6%ROAE 18.6%

I St t t Hi hli ht


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56.3%

14.7%

26.0%

3.0%

Net interest incomeFees & CommisionsFX gainsOther non- interest income

Total Operating Income Composition Of Total Operating Income

Income Statement Highlights


58.6%15.6%

21.7%

4.1%

Net interest income

Fees & CommisionsFX gains

Other non- interest income

6.4

8.7

0.01.02.0

3.04.05.06.07.0

8.09.0

10.0

Q1 2011 Q1 2012

RwF bn

36.2%


53.7%

13.5%

32.8%

Personnel expenses

Depreciation and amortization

Other operating expenses

Total Operating Costs Composition Of Total Operating Expenses

31 December 2011

49.8%

17.1%

33.1%

Personnel expenses

Depreciation and amortization

Other operating expenses

31 March 2012

3.1

3.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Q1 2011 Q1 2012

RwF bn

26.4%

Consistent Profitable Gro th


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Sustainable Net Interest Margin, % Attractive Cost/Income ratio

Consistent Profitable Growth

Nigeria average: 6.8%SA average: 6.8%


9.5%9.0%

8.2% 8.3% 8.4% 8.2%

0.0%

3.0%

6.0%

9.0%

12.0%

2007 2008 2009 2010 2011 Q1 2012

39.5% 39.8%44.1%

47.5% 48.2%44.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2007 2008 2009 2010 2011 Q1 2012* *


37.5% 39.4%

30.7%

24.5%

18.6%20.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%45.0%

2007 2008 2009 2010 2011 Q1 2012 *


Consistent Returns To Shareholders, % Strong Return on Average Assets, %

*Q1 2012 figures are annualizedSource: Bank of Kigali Audited IFRS Statements 2007-2011Bank of Kigali reviewed results Q1 2012, African Alliance Research 2012


4.1%4.7%

3.9%3.5% 3.6%

4.4%

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%

2007 2008 2009 2010 2011 Q1 2012 *


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STRATEGIC OUTLOOK


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Management Targets


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46%

30%

0%5%

10%15%

20%25%30%35%40%45%50%

2011 2012P

Q1 2012:+5% YTD

Management Targets

Total Assets Growth

Launch representative offices within the EAC region

Kampala Nairobi

Launch agency banking

Launch Premier Banking - targeting 500 clients by YE

2013

Other Management targetsTotal Assets Growth Gross Loans/Total Assets Selected Other Management targets

45%

60%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012P

Q1 2012: 45%


Branch expansionReturn on Average Equity

Revamp the existing digital wallet/mobile banking

distribution channel

19%

20%

18%

18%

19%

19%

20%

20%

21%

2011 2012P

Q1 2012*: 20.5%

44

56

0

10

20

30

40

50

60

2011 2012P

Q1 2012: 47

* Annualised

Contact Information


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For information please contact:

Lado GurgenidzeChairman of the BoardEmail: [email protected]: +995 599 477 272

James GateraChief Executive OfficerEmail: [email protected]: +250 78 814 3000

Lawson NaiboChief Operating OfficerEmail: [email protected]

Contact Information

John BugunyaChief Finance OfficerEmail: [email protected]: +250 78 830 6100


Linda RusagaraInvestor Relations OfficerEmail: [email protected]: +250 784 300 334

Visit our website, www.bk.rw , or follow us on Scribd to access our Investor Presentations, PressReleases and Annual Reports.

Telephone number: +250 252 593100. Address: Plot 6112, Avenue de la Paix , Kigali Rwanda

Shivon ByamukamaCompany SecretaryEmail: [email protected]: +250 78 838 4547

Bank of Kigali Investor Presentation Q1 & 3M 2012

Documents

Transcript of Bank of Kigali Investor Presentation Q1 & 3M 2012