Equity Group Holdings Limited · NSEKE:EQTY
Equity — Q1 2022 Earnings Presentation
88 slides from Equity's earnings presentation, May 2022
Slide 1: Investor Briefing Q1 2022 Performance
INVESTOR BRIEFING Q1 2022 PERFORMANCE
Slide 2: Equity Group Holdings Plc Investor Briefing
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE 2
Slide 3: Equity Group's Philosophies
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Equity Group’s Philosophies Our Purpose: Our Mission: Transforming lives, giving dignity and expanding We offer integrated financial services that socially and opportunities for wealth creation economically empower consumers, businesses
Slide 4: Governance and Organizational Structure
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Governance and Organizational Structure 4
Slide 5: Governance and Organizational Structure
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Governance and Organizational Structure CBK CMA SHAREHOLDERS NSE RATING AGENCY EQUITY GROUP HOLDING PLC Subsidiary Group Board Subsidiary Boards Boards Board Group Board Board Committees Committees Board Committees Structured CEO’s OFFI
Slide 6: Breadth and Depth of the Management Team
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Governance and Organizational Structure Breadth and Depth of the Management Team EGH Strategy Alignment of strategy and execution reflected by close interaction between the CEO’s office and Corporate Office Breadth and diversification r
Slide 7: Group Executive Management
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Group Executive Management Dr.James Mwangi,CBS Mary Wamae O l a n rDeaw v iadj uN B gam t ai s e b i Sam Gitwekere Group Managing Director & Group Executive Director G r o uGpr oFui p n aDnicree cDt iorre, c t o r Group Director, Chief
Slide 8: Group Executive Management
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Group Executive Management Gerald Warui Emmanuel Deh Samuel Kirubi Anthony Kituuka Managing Director, Executive Director, Managing Director, Executive Director, Equity Bank Kenya Equity Bank Kenya Equity Bank Uganda Equity Bank Uganda A
Slide 9: Group Board of Directors
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Group Board of Directors Prof. Isaac Macharia Dr. James Mwangi Mary Wamae Non-Executive Chairman Group Managing Director Group Executive Director and Chief Executive Officer Dr. Edward Odundo Evelyn Rutagwenda Vijay Gidoomal Non-Executi
Slide 10: Macroeconomic and Operating Environment
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Macroeconomic and Operating Environment 10
Slide 11: Economic Recovery Outlook
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Economic Recovery Outlook Recovery being hampered by myriad of challenges World Economic recovery dimmed by Russia-Ukraine Conflict International Monetary Fund(IMF) reports that the war in Ukraine has triggered a costly humanitarian cri
Slide 12: Economic Recovery Outlook
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Economic Recovery Outlook Recovery being hampered by myriad of challenges Growing pressures on main economic drivers US and Europe experiencing unprecedented inflation rates Global prices for energy, grains and metals have been increasi
Slide 13: Regional CBR and Currency Depreciation
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Economic Recovery Outlook Regional CBR and Currency Depreciation Mar-2021 Dec-2021 Mar-2022 18.5% 15.0% 15.0% Regional CBR 12.0% 8.5% 7.5% 7.0% 7.0% 7.0% 7.0% 7.0% 6.5% 6.5% 5.0% 5.0% 5.0% 4.5% 4.5% Kenya DRC Uganda Rwanda Tanzania S.Su
Slide 14: GDP growth and inflation rates
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Economic Recovery Outlook GDP growth projected to slow down in majority of the regional countries 2021 Estimated IMF 2022 Projection 10.2% 7.2% 6.4% 6.4% 6.5% 5.7% 5.7% 5.3% 5.1% 4.9% 4.9% 4.8% GDP growth Kenya DRC Uganda Rwanda Tanzani
Slide 15: Overview of Africa Recovery and Resilience Plan
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Overview of “Africa Recovery and Resilience Plan” Background The Plan 5 Pillars of the Plan Objectives of the Plan Africa remains a continent of significant The Africa Recovery and The Plan comprises 5 strategic pillars 2025 objectives
Slide 16: 2025 Strategy Framework
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE 2025 Strategy Framework Equity Group’s 2025 strategy is a multi-pronged and holistic solution to achieve social and economic transformation of Africa. The strategy is articulated in a 3-part document “Africa Recovery and Resilience Plan
Slide 17: Equity Bank Business Model and Strategy
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Equity Bank Business Model and Strategy 17
Slide 18: Equity Bank Business Model & Strategy Focus
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Equity Bank Business Model & Strategy Focus Inclusive, High volume, Low Margin, Digital and Experiential, Agile and Quality-Driven Business Model 1. Non-Funded Income Growth 2. Treasury Efficiency 3. Geographical Expansion and Business
Slide 19: Focus Area 1: Non-Funded Income Growth
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 1: Non-Funded Income Growth Kes Billion Gross Loan Interest Gross Interest Income Non-Funded Income Contribution to Total Income Income Growth Trend Growth Trend Growth Trend +21% 30.9 +31% +29% 26.7 25.5 +21% +32% 9.5 19.4 +
Slide 20: Focus Area 1: Trade Finance Performance
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 1: Non-Funded Income Trade Finance Performance Kes Billion Gross trade finance revenue Trade finance related lending Trade finance guarantees & off-balance sheet Items +21% 120.2 +231% 34.6 99.5 +50% 1.2 0.8 10.4 Q1 Q1 Q1 Q1
Slide 21: Focus Area 1: NFI Contribution
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 1: NFI Contribution Equity Group still more diversified than the sector’s average as at Q4 2021. Equity’s focus on NFI has led to superior returns compared to the market with higher income and profitability on total assets Ti
Slide 22: Focus Area 2: Treasury Efficiency
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 2: Treasury Efficiency Kes Billion Government Treasury Gross Income Treasury Income Mix Yield on Government Securities & Securities Portfolio Contribution Capital Gains Government securities yields and mark-to- +50% +23% mark
Slide 23: Focus Area 3: Subsidiaries Performance and Contribution
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Subsidiaries Performance and Contribution Other Subs EBKL Other Subs Other Subs Equity Group Q1 2O22 EBTL EBRL EBUL EBSS EBIL EIB Finserve ELAK Total (% (% Contribution Contribution BCDC (% growth) Contribution) Contributi
Slide 24: Geographical Expansion: Banking Subsidiaries Performance Trend
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Performance Trend - Banking Subsidiaries: Value creation and growth RoAE RoAA Subsidiary Q1 2021 Q1 2022 Subsidiary Q1 2021 Q1 2022 EBKL 32.8% 32.7% EBKL 4.2% 4.0% EBUL 2
Slide 25: Regional subsidiaries are high-growth assets
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Regional subsidiaries are high-growth assets, with UG and RW becoming high-return subsidiaries as well Equity Kenya return history Equity Uganda return history INVESTMENT
Slide 26: Subsidiaries achieving high returns in shorter periods
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Subsidiaries achieving high returns in shorter periods Years to achieve high return (ROA above 4%) % 5.0 4.0 4% 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 -8.0 -9
Slide 27: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification • Present in 6 countries and a commercial representative office in Ethiopia • We are a Top 2 bank in our two largest markets and in the Top 5 in three other markets • Pop
Slide 28: Productivity gains from access to credit and infrastructure
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Productivity gains coming from improving access to credit and infrastructure Low credit penetration highlights significant Improving access to infrastructure will support
Slide 29: Regional trade and growing connectivity to global trade
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Regional trade and growing connectivity to global trade underpinned by expanding trade corridors East and Central Africa increasing infrastructure connectivity Growing li
Slide 30: Regional presence to drive cross-border trade
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Equity Group regional presence to drive cross-border trade and support informal traders NORTHERN CORRIDOR Gateway through Kenya to landlocked countries of Uganda, Rwanda,
Slide 31: DRC significant resource endowment
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification DRC significant resource endowment • On March 29, 2022, DRC was admitted to the East Africa Community following recommendation by the Council of Ministers opening trade a
Slide 32: Landmark Oil Pipeline deal signed by Uganda and Tanzania
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Landmark Oil Pipeline deal signed by Uganda and Tanzania • Tripartite East African Crude Oil Pipeline project agreement (EACOP) signed off on 11 April 2021 between Uganda
Slide 33: Promising Tanzania Operating Environment
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Promising Tanzania Operating Environment • On 20 May 2021 Tanzania signed the host country EACOP agreement with TotalEnergies and the Ugandan government for the construct
Slide 34: Focus Area 4: Balance Sheet Efficiency, Optimization and Agility
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 4: Balance Sheet Efficiency, Optimization and Agility Kes Billion Funding Structure and Leverage Asset Mix Group Group +19% YoY +19% YoY Growth Growth 1,269.5 1,269.5 47.3 3% 90.1 (3%) 14% (7%) Deposits Net Loans 147.1 1,066.
Slide 35: Digital business: transaction numbers
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Innovation and Digitization Digital business: Enabling transition from fixed cost to 3rd party variable cost channels and self-service platforms Transaction numbers in millions 314.0 315 Transacti
Slide 36: Digital business: volumes
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Innovation and Digitization Digital business: Enabling transition from fixed cost to 3rd party variable cost channels and self-service platforms Volumes in Kes Billions 1,900 1,854.7 Digital banki
Slide 37: Digital business: transactions by channel
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Innovation and Digitization Digital business: Enabling transition from fixed cost to 3rd party variable cost channels and self-service platforms Transaction numbers in millions 274 Transactions in
Slide 38: Migrating to self-service channels
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Innovation and Digitization Migrating from Fixed and variable cost channels to self-service channels Self-service channels Variable cost channels Fixed cost channels +2% +18% Transaction numbers i
Slide 39: 98% of our Transactions Outside the Branch
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Digital Business 98% of our Transactions outside the branch % 88 86.8% 86.8% 84.6% Mobile and 78.7% internet banking 74.9% 72.1% 72 14.6% 14 12.8% 12 11.1% 6.5% 6.5% 6.6% Oth
Slide 40: 73% of Transaction Value Outside the Branch
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Self-Service Channels 73% of our Transactions Value outside the branch Branches now handling high value transactions for SME, corporates, wealth management & advisory service
Slide 41: 85% of Loan Transactions via Mobile Channel
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Data Strategy, Decision Science and Analytics 85% of our Loan Transactions via Mobile Channel Q1 2022 Transaction count Q1 2022 Transaction value Branch Lending Mobile Lendin
Slide 42: Lifestyle Support: Payments Processing Capabilities
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities YoY Transactions (Millions) Quarterly No of Transactions (Millions) 297.8 304.5 282.9 289.1 289.1 258.6 258.6 242.2 199.8 +
Slide 43: Promoting a Cashless Economy
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities – Promoting a Cashless Economy 72% of our customers using cashless payment capabilities rather than transacting in cash Q1
Slide 44: Payments Processing: Cards, Agency, E-Commerce
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities Cards (POS & ATMs) Agency E-Commerce 514.8 1,129.7 381.9 -1% +8% -13% +7% +4% 482.1 +21% 1,089.2 315.4 11.1 9.7 19.0 19.0 1
Slide 45: Remittances Processing
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Compressing Time and Geography Remittances Processing +15% 94.2 82.0 0.5 -18% 0.4 Q1 2021 Q1 2022 Transaction Volumes in Kes Bn Diaspora Commissions in Kes Bn 45
Slide 46: Trading – Enabling Global Trade
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Global Presence Trading – Enabling Global Trade Kes Billion Kes Billion The diaspora flows account for 27% of all client Fx volumes +14% Fx Trading Income 347.8 305.9 +2% 253
Slide 47: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Risk mitigation via diversification of market segments Risk mitigation via diversification of economic sectors 100% 100% Building & Agriculture 6% 8% Tourism & Hospitality co
Slide 48: NPLs – Industry vs EGH Plc
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Trading – Enabling Global Trade NPL’s - Industry vs EGH Plc NPL per sector as at Q1 2022 Industry-Kenya Equity Group 14.1% 14.5% 14.0% * 14.0% 13.6% 13.9% 12.7% 12.7% 13.1% 1
Slide 49: Prudent approach to credit risk management
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Prudent approach to credit risk management 55.4 Gross loans staging as at Q1 2022 Coverage and provisions as at Q1 2022 Kes Billion 71.0 Stage 3 Provisions 58.3 Credit Risk G
Slide 50: Asset quality and COVID-19 accommodated loans
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Overall asset quality is improving as evidenced by growth in the performing book and reduction in COVID-19 accommodated and NPL portfolios. As part of the Group’s commitment
Slide 51: Proactive Prudent Management
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation – Proactive Prudent Management COVID-19 accommodated loans (Kes 171 Bn); Kes 152B resumed repayment, additional Kes 19B expected to resume in 12 Months Moratorium expires in
Slide 52: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 6: Efficiency and Cost Optimization Kes Billion Staff Cost Trend Other Expenses Trend Cost to Income Ratio Cost to Assets Ratio (Without Loan Loss Provision) (Without Loan Loss Provision) Group Group Group Group 5.0 9.2 8.7 4
Slide 53: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 6: Efficiency and Cost Optimization Kes Billion Staff Cost Trend Other Expenses Trend Cost to Income Ratio Cost to Assets Ratio (Without Loan Loss Provision) (Without Loan Loss Provision) EBUL EBUL EBUL EBUL 0.8 0.8 63.6% 60.
Slide 54: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 6: Efficiency and Cost Optimization Kes Billion Staff Cost Trend Other Expenses Trend Cost to Income Ratio Cost to Assets Ratio (Without Loan Loss Provision) (Without Loan Loss Provision) EBRL EBRL EBRL EBRL 0.3 0.3 63.6% 57.
Slide 55: Net Interest Margin, Yield and Cost of Funds
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 6: Efficiency and Cost Optimization Group Net Interest Margin Yield on Interest Earning Assets % % 7.8 7.6 7.5 7.2 10.4 10.7 10.2 10.0 9.5 9.5 6.8 6.8 8.9 9.2 9.3 6.6 6.6 6.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 202
Slide 56: Efficient Financial Intermediation
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 7: Efficient Financial Intermediation 13.0 12.6% 12.3% 12.4% 12.5 12.2% 12.1% 12.1% 12.0% 12.0% 11.9% 12.0 11.7% 11.8% 11.6% Equity Group’s 11.4% 11.5 11.1% 11.0% 11.2% Equity Yield on Loans lending yields 10.8% 11.0 10.7% co
Slide 57: Focus Area 8: Impact Investment
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 8: Impact Investment Impact & Social Investment Programs USD 524 M in Social Investment Programs Food & Agriculture Health 3% 5% Energy & Environment 6% Enterprise Development & Financial Inclusion 10% 43% Wing to Fly & Elimu
Slide 58: Shared Prosperity Business Model and its Social Impact
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Focus Area 8: Impact Investment Shared Prosperity Business Model and its Social Impact 40,000 35,000 30,000 37,009 37,009 2021 Wings to Fly Graduates • 97% secondary school completion 2.32M Scholarships • 83% attained university entry g
Slide 59: Business Validation
Business Validation
Slide 60: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Global Ratings and Accolades Equity Bank Credit Rating • National Rating: B2 2020 Oslo Business for Peace Award • Global Rating: Aaa.ke/KE-1 Dr. James Mwangi. • Rating Outlook: Negative Same as the sovereign rating • Position 7 overall
Slide 61: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Global Ratings and Accolades • Bank of the Year- Kenya 2019 • Bank of the Year - Uganda 2019 & 2021 • Bank of the Year - Rwanda 2020 & 2021 • Bank of the Year - DRC 2020 • Bank of the Year- South Sudan 2019, 2020 & 2021 • Socially Respo
Slide 62: 2021 National Banking Awards and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE 2021 National Banking Awards and Accolades 1. Best Overall Bank - 10 years running 2. Best Bank in Tier 1 - 7 years running Brand 3. Best Bank in Sustainable CSR - 5 years running 4. Bank with the Lowest Charge for Individuals - 5 years
Slide 63: The Most Valuable and Strongest Banking Brands
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Global Ratings and Accolades The Most Valuable and Strongest Banking Brands Equity Group, East, and Central Africa’s largest financial services Group, has been named the 5th strongest banking brand in the world. The Group is the only ne
Slide 64: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Global Ratings and Accolades Equity Group’s MD and CEO, Dr. James Mwangi, was honoured in the 2019 Bloomberg 50 list. This is an honorary list of fifty innovators, entrepreneurs, and leaders who have impacted the global business landsca
Slide 65: Dr. James Mwangi honouree, 2020 Oslo Business for Peace Award
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Global Ratings and Accolades Dr. James Mwangi honouree, 2020 Oslo Business for Peace Award Honourees are chosen by a prestigious Award committee consisting of past Nobel Prize winners in Peace Economics. “Dr. James Mwangi receives the A
Slide 66: Kenya - DRC Trade Mission
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Kenya - DRC Trade Mission Business dinner hosted by Equity Group to celebrate the signing of the accession treaty by DRC after admission into the East African Community (EAC) • To deepen trade relations between Kenya and DRC, the Govern
Slide 67: Kenya - DRC Trade Mission (continued)
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Kenya - DRC Trade Mission (continued) Business dinner hosted by Equity Group to celebrate the signing of the accession treaty by DRC after admission into the East African Community (EAC) 67
Slide 68: Market Validation
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Market Validation KES Billion Market Capitalization as at 31st March 2022 1,304.9 1,139.7 Mkt Cap as at 31st March 2022 Total Assets (FY 2021) PAT (FY 2021) 579.8 591.1 456.8 428.7 415.2 334.9 319.2 190.6 141.6 75.4 67.6 42.6 54.3 40.1
Slide 69: Intermediation and Financial Performance
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Intermediation and Financial Performance 69
Slide 70: Balance Sheet
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Balance Sheet KES Billion Q1 2021 Q1 2022 Growth Assets Cash & Cash Equivalents 241.0 166.4 -31% Government Securities 258.9 389.4 50% Net Loans 487.7 623.6 28% Other Assets 78.8 90.1 14% Total Assets 1,066.4 1,269.5 19% Liabilities & C
Slide 71: Income Statement
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Income Statement KES Billion Q1 2021 Q1 2022 Growth Interest Income 20.3 26.7 31% Interest Expense 5.5 7.3 33% Net Interest Income 14.8 19.4 31% Non-Funded Income 10.7 11.6 7% Total Income 25.5 30.9 21% Loan Loss Provision* 1.1 1.4 25%
Slide 72: RoAE and RoAA Trend
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE RoAE and RoAA Trend RoAE 32.8% 32.7% 27.4% Q1 2021 25.1% Q1 2022 EBKL Group RoAA 4.2% 4.0% 3.7% 3.3% Q1 2021 Q1 2022 EBKL Group 72
Slide 73: Financial Ratios
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Financial Ratios EBKL EBKL Group Group Q1 2021 Q1 2022 Q1 2021 Q1 2022 Profitability Yield on Loans 11.1% 10.7% 11.7% 11.4% Yield on Government Securities 9.7% 9.6% 9.9% 9.6% Yield on Interest Earning Assets 9.3% 9.7% 8.9% 9.5% Cost of
Slide 74: 2022 Guidance Vs Actual - Group
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE 2022 Guidance Vs Actual - Group 2022 Guidance Q1 2022 Actual Loan Growth 25% - 30% 28% Deposit Growth 25% - 30% 14% Net Interest Margin 7.0% - 8.0% 6.8% Non Funded Income Mix 40% - 43% 37.2% Cost to Income Ratio 40% - 45% 45.3% Return o
Slide 75: Macroeconomic Environment Indicators & Trends
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Macroeconomic Environment Indicators & Trends 75
Slide 76: Macroeconomic Environment - Kenya
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Macroeconomic Environment - Kenya 15 11.9 9.9 10 5.7 6.3 6.0 6.3 5.6 5.3 5.1 5.5 4.9 5 2.0 • QUARTERLY GDP GROWTH – The 0 -1.1 country’s economy grew by 7.2% in 2021 -5 -5.7 according to data released by IMF -10 • Growth driven by the c
Slide 77: Macroeconomic Environment - Kenya (continued)
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Macroeconomic Environment - Kenya (continued) 8 7 6 5 4 • Interbank Rates – The money market 3 2 remained liquid during Q1 2022 partly 1 reflecting government payments which 0 offset tax remittances 26-Dec-21 25-Jan-22 24-Feb-22 1-Mar-2
Slide 78: Macroeconomic Environment - Kenya (continued)
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Macroeconomic Environment - Kenya (continued) 7.50 7.00 6.50 • Inflation – Inflation increasing towards end of Q1 6.00 2022 on account of rising commodity, oil and 5.50 5.00 energy prices under; Food and non-alcoholic 4.50 beverages (9.
Slide 79: Projected Regional GDP Growth
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Projected Regional GDP Growth Forecasts as at April 2022 7.4 6.4 6.5 6.4 6.5 5.7 5.6 5.3 5.4 5.2 4.9 4.8 Kenya DRC Uganda Rwanda Tanzania S. Sudan 2022 2023 Source: International Monetary Fund(IMF) & Focus Economics 79
Slide 80: Regional Currencies Depreciation against USD
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Regional Currencies Depreciation against USD 3,700 3,660.0 3,650 3,600 3,585.0 3,560.0 3,550.0 USD/UGX 3,545.0 +1.13% 3,550 2,314.0 2,321.5 2,310.0 2,321.0 2,306.0 USD/TZS 2,300 +0.65% 1,994.6 2,002.5 1,994.7 2,000 1,976.9 1,980.7 USD/C
Slide 81: Regional Outlook
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Regional Outlook Uganda • The economy started the new year on a strong footing, aided by the removal of pandemic-related restrictions • The sharp increase in commodity prices linked to the outbreak of the Russia-Ukraine war, ongoing sup
Slide 82: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Regional Outlook (continued) Rwanda • The Russia-Ukraine war brought more uncertainty, posing an upside risk for Rwanda’s inflation, as well as additional pressures on the external sector • In February 2022, growing pressures on Rwanda’
Slide 83: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Regional Outlook (continued) South Sudan • The country has realized some form of rebound of growth in services and trade anchored on improving macro economic conditions coupled with relative peace • Floods in 2021 affected both oil prod
Slide 84: Case Studies
Case Studies The Equity business model is a leading case study in many business schools around the world. In addition, many business schools, organizations and institutions regularly visit the Group to learn firsthand about the brand, its evolution and business strategy. Many financial institutions
Slide 85: Africa Recovery and Resilience Plan
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Africa Recovery and Resilience Plan Equity Group launched a private sector focused stimulus package to accelerate economic recovery and resilience in the Eastern and Central Africa region as it recovers from the devastating health, soci
Slide 86: Kenya - DRC Trade Mission
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE Kenya - DRC Trade Mission To deepen trade relations between Kenya and DRC, the Government of Kenya (GoK) and DRC Government, in partnership with Equity Group convened a 15-day Business Trade Mission in 4 DRC cities between 29th November
Slide 87: Equity Group Holdings Plc Investor Briefing
Equity Group Holdings Plc Investor Briefing Q1 2022 PERFORMANCE 87
Slide 88: Contact details
Equity Centre P.O. Box 75104–00200, Nairobi. Tel: 0763063000, Fax: + 254-020-2737276, Equity Centre, 9 www.equitygroupholdings.com [email protected], Floor, UpperHill th P.O.Box @keEquityBank 75104, Nairobi,keEquityBank Tel: 0763 000 000 [email protected], www.equitygroupholdin
Equity Group Holdings — Q1 2022 Earnings Presentation on 6ix