KCB GROUP PLC INVESTOR

PRESENTATION.

Q1 2018 FINANCIAL RESULTS

Macro-Economic Highlights: Kenya

2

Source: CBK, WB

5.9%

5.4%5.7%

5.9%

4.9%

5.8%

5.5%

4.5%

6.0%

5.1%

1.6%

2013 2014 2015 2016 2017

GDP Forecasted to Recover

Real GDP Agriculture2018 P

Macro-Economic Highlights: Kenya

Sources: CBK, KNBS

103.2 103.7 103.9

103.2 103.3 103.2

101.3

USD/KES Exchange Rate

8.78 8.09 8.02

13.70 13.70 13.64 13.64

10.00 9.50

Interest Rate Evolution (%)

91 day T bill Average lending rates CBR Rate

3

11.48%

7.47%

8.04%

7.06%

4.73%4.18%

7.50%

2.50%

4.50%4.10%

3.50%

3.00%

3.60%

Inflation

Inflation rate Target Upper Target Lower Non Food Non Fuel

Macro-Economic Highlights: Kenya

4

Source: CBK

3.8%

3.3%

2.4% 2.1%

1.5% 1.4%1.6% 1.7%

2.0%

2.7%2.4% 2.7%

2.1%

Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18

12 Month Private Sector Credit Growth

-10.4%

-6.7%

-5.2%

-6.7%

-5.4%

2014 2015 2016 2017 2018 F

Current Account Balance (% of GDP)

Sources: IMF, Bloomberg

Macro-Economic Highlights: Regional

4.9

7.07.0

(3.7)

10.3

5.4

7.0 6.9

(7.1)

9.6

4.4

6.86.0

0.5

5.44.4

6.5 6.2

0.1

8.5

Uganda Tanzania Rwanda Burundi Ethiopia

GDP (%)

2014 2015 2016 2017

5

2,186

3,484

785.6

1,629

22.40 44.3

2253

3646

849

1765

27.22 130.3

Tanzania Uganda Rwanda Burundi Ethiopia South Sudan

Exchange rates to USD

2016 2017 Q1 2018

6.1%

3.1%

1.8%

7.9% 8.1%

4.0%3.0%

1.3%

6.1%

13.4%

Tanzania Uganda Rwanda Burundi Ethiopia

Inflation

2014 2015 2016 2017 Q1 2018

1.7%

52.8%

480.0%

182.2%

South Sudan

13.6%11.8%

4.4%

9.8%

3.0%2.2%

8.2%6.0%

2.6%

15.0%

Tanzania Uganda Rwanda Burundi South Sudan

91 Day T-Bills

2014 2015 2016 2017 Q1 2018

6

87% of Transactions outside the Branch

Source: KCB data

Mobile57%Branch

Teller13%

ATMs10%

Agency & POS20%

Q1 2018

Mobile, 40%

Agency & POS, 25%

Branch, 21%

ATM, 13%

Q1 2017

Source: KCB data

64% growth in Mobile Loan Disbursement

5.6

9.2

Q1 2017 Q1 2018

Mobile Loan Disbursement (KShs B)

7

37.3

63.3

Q1 2017 Q1 2018

Mobile transactions (M)

70%

8

96% growth in Agency volumes

Source: KCB data

4.6

7.8

Agency transactions (M)

Q1 2017 Q1 2018

25

49

Agency volume (KShs B)

Q1 2017 Q1 2018

3.8

6.2

Average trnx/ Agent p.d

Q1 2017 Q1 2018

70%

14%

96%

75

104

Revenue (KShs M)

Q1 2017 Q1 2018

39%

Source: KCB data

15% growth in NFI drivers

9

Lending Channels Bank transfers Branchtransactions

Trade finance Branch fees Money transfer

Q1 2017 Q1 2018

(3%) 45% 4% (26%) 95% 27% (11%)

OUR PERFORMANCE TO DATE

Group Asset Portfolio up

7%

KShs: 647B

Net Loans and advances

up 6%

KShs: 419B Investment in Govt.

Securities up 6%

KShs: 112B

Cash and Balances with Central Bank

and other Financial

Institutions

0%

KShs:71BFixed and

other Assets up 37%

KShs: 46B

KCB Bank Kenya Asset Portfolio up

8%

KShs: 561B

Net Loans and advances

up 6%

KShs: 384B Investment in Govt.

Securities up 4%

KShs: 97B

Cash and Balances with Central Bank

and other Financial

Institutions up 16%

KShs:40BFixed and

other Assets up 36%

KShs: 40B

7% Total Assets growth driven by Net Loans & Advances

11

KCB Group KCB Bank Kenya

Well-diversified loan book

12

409

445

17

13

5

Mar-17 Retail Corporate Mortgage Mar-18

* Group gross loans KShs.B

25.1%

15.8%

12.6%

4.6%

19.1%

3.3%

7.7%

2.5%

5.2%

3.7%

0.5%

35.3%

17.1%

10.9%

8.8%

8.6%

5.3%

4.8%

3.2%

2.9%

2.5%

0.4%

Personal/Household

Real estate

Manufacturing

Building and construction

Trade

Financial Services

Transport and communication

Tourism, restaurants and hotels

Energy and water

Agriculture

Mining and Quarrying

Industry Dec 2017 KCB Mar 18

NPL Migration and Concentration

13

1.0% 1.0% 1.0% 1.5%0.6%

7.9% 7.9% 8.0%8.5%

9.8%

Q1 2017 Q2 2017 Q3 2017 2017 Q1 2018

CoR NPL Group

3.7%

6.2%

10.4%

13.1%

3.6%

6.5%

10.4%

12.3%

3.2%

7.3%

10.4%

15.5%

3.3%

7.8%

11.0%

16.4%

3.2%

7.4%

14.8%16.3%

CHECK OFF MORTGAGE CORPORATE SME & MICRO

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Sector NPLIndustry Dec 17

KCB Mar 18

Trade 16.5% 29.4%

Manufacturing 12.8% 14.6%

Building and construction 17.3% 12.6%

Real estate 9.0% 6.6%

Improved IFRS Coverage Position

14

43.3%

61.0%

74.6%

56.9%

Q1 2017 Q1 2018

IFRS CBK

2017 industry position as at December

37.70%

34.5%

2016 2017

INDUSTRY

GroupLiabilities and Equity up 7%

KShs: 647B

Deposits up 9%

KShs: 496BBalances to banks and

Debt

0%

KShs: 32B

Equity down 2%

KShs:100B

Other Liabilities up

23%

KShs: 19B

KCB Bank Kenya

Liabilities and Equity up 8%

KShs: 561B

Deposits up 10%

KShs: 439BBalances to banks and Debt down

6%

KShs: 23B

Equity up 1%

KShs:77B

Other Liabilities up

3%

KShs: 22B

77% of Funding from Deposits

15

KCB Group KCB Bank Kenya

Well-funded and Diverse Portfolio

Deposits by Type Q1 2017

64%5%

24%

7%

Demand Savings Term Call

Deposits by Type Q1 2018

42% 50% 51% 50%

55% 47% 46% 48%

2% 3% 3% 2%

2015 2016 2017 Q1 2018

Corporate Retail Other

16

66%4%

25%

5%

Adequate capital position

Group Core Capital to RWA Group Total Capital to RWA

10.5% 10.50% 10.50% 10.50%

15.7% 15.30% 15.50%

15.10%

2015 2016 2017 Q1 2018

Min. Core/RWA Core Capital /RWA

14.5% 14.50% 14.50% 14.50%

16.9%

18.00%

16.60%

15.30%

2015 2016 2017 Q1 2018

Min. Total/TWA Total Capital /RWA

17

Resolute strategy delivers 7% balance sheet growth

KShs Billions

KCB Group KCB Bank Kenya

Actual Q1 2017

ActualQ1 2018

Y-O-Y Change

Actual Q1 2017

ActualQ1 2018

Y-O-Y Change

Cash and balances with central bank 31.9 33.8 6% 28.8 30.4 6%

Balances with other institutions 38.9 37.1 (5%) 6.2 10.0 63%

Investments in Government & Other securities

106.0 112.1 6% 93.2 96.6 4%

Net loans and advances 395.5 418.6 6% 362.9 383.9 6%

Fixed assets 12.6 14.4 14% 9.1 10.1 11%

Other assets 20.9 31.4 50% 20.3 29.9 47%

Total Assets 605.8 647.5 7% 520.5 560.9 8%

Customer Deposits 456.8 496.4 9% 397.9 438.7 10%

Balances due to other banks 8.4 9.5 14% 4.8 4.7 (2%)

Other liabilities 15.8 19.4 23% 21.5 22.0 3%

Long-term debt 23.6 22.5 (5%) 19.9 18.4 (7%)

Total Liabilities 504.5 547.8 9% 444.0 483.9 9%

Shareholders’ Equity 101.2 99.6 (2%) 76.5 77.0 1%

Total Liabilities and Equity 605.8 647.5 7% 520.5 560.9 8%

18

14% Growth in Earnings

KShs Billions

KCB Group KCB Bank Kenya

Actual Q1 2017

ActualQ1 2018

Y-O-Y Change

Actual Q1 2017

ActualQ1 2018

Y-O-Y Change

Interest Income 14.1 15.7 11% 12.6 14.0 12%

Interest Expense (3.8) (4.2) 13% (2.9) (3.5) 20%

Net interest income 10.3 11.4 10% 9.6 10.5 9%

Foreign exchange income 1.3 1.0 (20%) 0.6 0.7 16%

Net fees and commissions 3.5 3.6 5% 2.3 2.7 15%

Other income 0.8 0.9 8% 0.7 0.8 13%

Total other operating income 5.6 5.5 0% 3.6 4.2 15%

Total other operating expenses (7.8) (8.3) (6%) (6.2) (6.7) -7%

Provisions for bad debts (1.0) (0.6) 37% (0.8) (0.5) -36%

Profit Before Loss on Monetary Position

7.1 8.0 13% 6.2 7.4 19%

Loss on Monetary Position (0.5) (0.5) 0% 0.0 0.0 0%

Profit before tax 6.6 7.5 14% 6.2 7.4 19%

Tax (2.1) (2.3) (12%) (1.7) (2.1) 18%

Profit after tax 4.5 5.2 14% 4.5 5.4 20%

19

Overview of Key Financial Ratios

Return on Average Equity

Cost to Income*

Gross NPL to Gross Loans

NPL Coverage

Debt to Equity

Non funded income to total income

Cost of funds

Net Interest Margin

Cost of risk

Loan to Deposit Ratio

Growth of Net Loans and Advances

Growth of Customer Deposits

23.6% 19.5%

47.4% 46.2%

7.8% 8.5%

84.6% 74.4%

14.5% 14.0%

28.3% 32.2%

2.8% 3.0%

9.2% 8.9%

0.9% 1.5%

90.7% 85.1%

19% 10%

16% 11%

20.2%

48.3%

9.8%

56.9%

22.6%

32.7%

3.2%

8.2%

0.6%

84.3%

6%

9%

Q1 17 Q217 FY 17 KENYA GROUP

20.3%

52.5%

7.9%

79.6%

23.3%

35.0%

3.1%

7.9%

1.0%

86.6%

14%

8%

25.7%

45.0%

10.0%

64.0%

23.9%

28.3%

3.1%

8.2%

0.5%

87.5%

6%

10%

20

*excluding restructuring costs

Thank you.

Investor Relations Email: investorrelations@kcbgroup.com

www.kcbgroup.com