KCB INVESTOR PRESENTATIONFULL YEAR 2015 GROUP FINANCIAL RESULTS

MARCH 2, 2016

Operating economic environment 2015

2

4,261 4,730 5,357 6,215GDP KShs B

Real GDP %

Current account Balance/GDP

Public Debt/GDP %

Budget Deficit/GDP %

CBR %

KBRR %

InterbankRate %

4.6 5.7 5.3 5.8*

-8.4 -8.9 -10.4 -9.6

52.5 53.5 46.3 48.6

-5.5 -5.3 -5.5 -8.2

11.0 8.5 8.5 11.5

- - 9.1 9.9

13.8 8.4 7.9 11.1

FY12 FY13 FY14 FY15

Kenya Tanzania Uganda Rwanda Burundi EthiopiaSouthSudan

FY14 6.9 5.9 5.5 2.6 9.3 8.1 -0.04

FY15e 6.6 4.9 5.9 4.7 7 7.4 1.7

FY16e 6.5 5 6 4.3 7.2 9.9 41.1

Inflation %

Source: Bloomberg*estimate

Kenya Tanzania Uganda Rwanda Burundi EthiopiaSouthSudan

FY14 90.6 1,733.0 2,771.0 689.8 1,595.1 20.2 3.0

FY15 102.3 2,149.3 3,372.0 745.0 1,554.5 21.2 18.5

Currency

Agency (2015)7.5M (2014)3.2M

Mobile Banking (2015)21.6M (2014)10.9M

Branch (2015)25.6M (2014)22.6M

134%

98%

13%

17%1%

Merchants (2015)4.8M (2014)4.1M

ATM(2015)12.9M (2014)12.8M

Branch 30%

Non Branch 70%

FY15 Transactions

Branch42%

Non branch58%

FY14 Transactions • KShs. 31B in agency transactions

in 2015 (KShs 14 B in 2014)• KShs 8.08 billion disbursed

through Inua Jamii Programme

Driving NFI through Non Branch Channels

3

Delivering through Mobile Technology

4.7 M KCB MPESA

70%

2 MKCB Mobi

30%

Number of Mobile Customers

4

Loans of KShs 9.1B ($90M) disbursed on mobile

6.7B

2.4B

2,072

KCB Mpesa (KShs)

2.4B

0.6B

5,513

KCB Mobi (KShs)

Disbursed Loans Outstanding Loans Average Loans

Loan Applications Accelerated by the Mobile

5

3,527,074

150,531

2015 2014

Mobile Loan Applications

95%

47%

4%

41%

2%

7%

2015 2014

Total Loan Applications

 Mobile  Personal  SME  Micro  Corporate  Mortgages

2015 Achievements

New business and Product Roll out – KCB Mpesa, KCB Sahal, KCB Insurance, KCB Capital

International Credit Rating at par with the Sovereign Rating

Surpassing 10 million customer mark across the KCB Group Limited

Set up of the Group Holding Company and the KCB Bank Kenya Business

Entry into Ethiopia via Representative Office

Working with County Governments on revenue collection and Mifugo ni mali

Launch of the new KCB Brand, Purpose and ValuesSimplifying your world to

enable your progress

6

OUR PERFORMANCE TO DATE

212 228

284

346

8993

97

97

4744

85

88

2026

25

27

2012 2013 2014 2015

Net loans and advances Investments in Government securities Cash and Balances with Central Banks and other Financial Institutions Other Assets

22%

Strong asset book driven by growth in advances

8

367

391

490

558

KShs B 14%

288 306 377

424

18 14

27

44

53

63

76

81

8

7

10

9

2012 2013 2014 2015

Deposits Bal.to banks and debt Equity Other Liabilities

367

391

490

558

Strong funding base driven by growth in Deposits

9

14%

12%

KShs B

Balanced Deposit Mix

10

Deposits by Type 2015 Deposits by Type 2014

47% 45% 42% 42%

52% 54% 55% 55%

1% 2% 2% 2%

2012 2013 2014 2015

Corporate Retail Other

68%

4%

24%

4%

60%

6%

30%

4%

Demand

Savings

Term

Call

Efficiently Utilized Capital for Business Growth

11

12.0%

14.5% 14.5% 14.5%

22.7% 22.5%

21.0%

15.4%

2012 2013 2014 2015

Min. Tier 2 Tier 2

8.0%

10.5% 10.5% 10.5%

21.3%

18.7%

17.1%

14.1%

2012 2013 2014 2015

Min. Tier 1 Tier 1

Marginal Change in Asset Quality

12

1.8%

1.3%

1.8%1.4%

6.7%

8.1%

6.3%6.6%

2012 2013 2014 2015

CoR NPL Group

Stable Coverage Position of 80%

13

51.8%

36.9%

56.4%

41.4%

63.8%

46.6%

85.0%

79.5%

2012 2013 2014 2015

IFRS CBK

18% Balance Sheet contribution from our Subsidiaries

14

Deposits 2014Deposits 2015

Total Assets 2014Total Assets 2015

Kenya82%

Uganda4%

Tanzania4%

Rwanda3%

South Sudan

6%

Burundi1%

IBs18%

Kenya82%

Uganda4%

Tanzania3%

Rwanda3% South Sudan

7%

Burundi1%

IBs18%

Kenya75%

Uganda3%

Tanzania4%

Rwanda3%

South Sudan14%

Burundi1%

IBs25%

Kenya73%

Uganda4%

Tanzania3%

Rwanda3%

South Sudan16%

Burundi1%

IBs27%

Increase of KShs 1.2B in Earnings from our International Subsidiaries

15

Profitability 2014

Revenue 2014Revenue 2015

Profitability 2015

Kenya78%

Uganda3%

Tanzania3%

Rwanda3%

South Sudan12%

Burundi1%

Kenya88%

Uganda0%

Tanzania2%

Rwanda2%

South Sudan8%

Burundi0%

Kenya81%

Uganda3%

Tanzania3%

Rwanda2%

South Sudan10%

Burundi1%

Kenya92%

Uganda0%

Tanzania1%

Rwanda1%

South Sudan6%

Burundi0%

Strong Asset Portfolio driven by Loan Growth

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KShs Millions Actual Dec-15

ActualDec-14

% Y-O-Y Change

Asset Portfolio

Cash and balances with Central Bank 35,927 47,064 -24%

Balances with other institutions 52,579 37,572 40%

Investments in Government securities 96,949 97,198 0%

Net loans and advances 345,969 283,732 22%

Fixed assets 10,592 10,351 2%

Other assets 16,078 14,420 12%

Total Assets 558,094 490,338 14%

Robust Funding Portfolio supported by Deposit Growth

17

KShs MillionsActual Dec -15

ActualDec-14

% Y-O-Y Change

Funding Portfolio

Customer Deposits 424,391 377,272 12%

Balances due to other banks 23,138 14,296 62%

Other liabilities 9,182 10,404 -12%

Long-term debt 20,130 12,735 58%

Total Liabilities 476,841 414,707 15%

Share capital 3,025 3,025 0%

Reserves and premium 72,178 66,556 8%

Proposed dividend 6,050 6,050 0%

Shareholders’ Equity 81,254 75,631 7%

Total Liabilities and Equity 558,094 490,338 14%

16% Growth in Profit After Tax

18

KShs MillionsACTUAL Dec -15

ACTUAL Dec -14

Y-o-Y % Change

Interest Income 56,384 47,476 19%

Interest Expense (17,148) (11,527) 49%

Net interest income 39,236 35,949 9%

Foreign exchange income 4,067 4,150 -2%

Fees and commissions 13,103 11,943 10%

Other income 2,621 3,141 -17%

Total operating income 59,027 55,183 7%

Loan loss provision(net) 2,182 3,089 -30%

Staff costs 15,311 13,993 9%

Other operating expenses 14,996 14,314 5%

Total Cost 32,489 31,396 4%

Profit before tax 26,538 23,787 12%

Tax (6,915) (6,939) 0%

Profit after tax 19,623 16,849 16%

Overview of Key Financial Ratios

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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

24.0% 23.3%

48.6% 49.1%

7.3% 6.9%

71.8% 80.0%

28.8% 27.5%

36.7% 37.9%

2.9% 3.3%

8.5% 8.0%

1.7% 1.6%

72% 74%

32% 32%

26% 35%

25.0%

50.1%

6.6%

79.5%

24.8%

37.3%

3.9%

8.8%

1.4%

83.8%

22%

12%

FY14 6M15 9M15 FY15

24.2%

50.2%

6.3%

65.2%

16.8%

38%

3.2%

9.7%

1.8%

75%

25%

23%

Business Drivers

ENHANCED CUSTOMER EXPERIENCE

GROWING NFI

HARNESSING OPERATIONAL EFFICIENCIES

DEVELOP NEW & INTERNATIONAL BUSINESSES

TARGETED DEPOSIT MOBILIZATION

20

• Growing customer and employee satisfaction to 85%• Embed the KCB Values

• Enhance customer relevance and value proposition• Driving channel utilization• Increasing cross sell ratio

• Technology upgrades - T24 R14 Reimplementation and Starting the Journey to a Service Oriented Architecture

• Cost containment measures across the Group

• Drive the Business Performance and sustainability of the International Businesses

• Leverage the potential for consolidation in banking sector

• Private Sector focus• Deposit mix of 75:25 LCY:FCY

STRATEGIC PARTNERSHIPS• Continued growth in the business potential with Safaricom• Leverage on National and County Government Business

Outlook Ratios

ROA 4.0%

ROE 24.0%

CTI 49.5%

NPL 5.5%

NFI 35.0%

COF 3.6%

NIM 9.0 – 9.5%

COR 1.6%

Loan Growth 12.0%

Deposit Growth 16.0%

21

For further information please contact

Investor Relations departmentEmail: investorrelations@kcb.co.ke

www.kcbbankgroup.com