Equity Group Holdings Limited · NSEKE:EQTY
Equity — FY2021 Earnings Presentation
100 slides from Equity's earnings presentation, March 2022
Slide 1: Investor Briefing Full Year 2021 Performance
INVESTOR BRIEFING FULL YEAR 2021 PERFORMANCE
Slide 2: Equity Group Holdings Plc Investor Briefing
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE 2
Slide 3: Equity Group's Philosophies
Equity Group Holdings Plc Investor Briefing FY 2021 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 FY 2021 PERFORMANCE Governance and Organizational Structure 4
Slide 5: Governance and Organizational Structure
Equity Group Holdings Plc Investor Briefing FY 2021 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 FY 2021 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 FY 2021 PERFORMANCE Group Executive Management Dr.James Mwangi,CBS Mary Wamae Polycarp Igathe O l a n rDeaw v iadj uN B gam t ai s e b i Group Managing Director & Group Executive Director Group Chief Commercial G r o uGpr oFui p n aDnicree cDt iorre, c t o
Slide 8: Group Executive Management
Equity Group Holdings Plc Investor Briefing FY 2021 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 FY 2021 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: Press Release
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release 10
Slide 11: Press Release
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release IT’S A RECORD PERFORMANCE FOR EQUITY GROUP • 29% growth in Balance Sheet to Kshs 1.305 trillion from Kshs 1.015 trillion • 29% growth in customer deposits to Kshs 959 billion from Kshs 740.8 billion • Emerges the largest b
Slide 12: Press Release (Continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) Equity Group Chairman Professor Isaac Macharia served as the Chairman of the Board’s Health Technical Advisory Committee while Dr. Joanne Korir, Equity Group Foundation’s Head of Health, served as the Committee
Slide 13: Press Release (Continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) with Mastercard Foundation. This resulted in 436,000 MSMEs being enrolled into the program, with over 316,000 of these MSMEs cumulatively trained, 200,000 MSMEs accessing Kshs 136 billion in loans and 1.2 milli
Slide 14: Press Release (Continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) solutions for Elderly Persons, Orphans, Persons with Severe Disabilities, Persons living in ASALs, Internally Displaced Persons, Refugees and other vulnerable segments. EGF under its Enterprise Development & Fi
Slide 15: Press Release (Continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) After 2 years of operating in a COVID-19 environment, Equity has emerged as the regional financial sector market leader as defined by financial parameters; balance sheet, asset size, profitability, customer bas
Slide 16: Press Release (Continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) Profit After Tax increased by 99% to Kshs 40.1 billion from Kshs 20.1 billion with Profit Before Tax recording a growth of 134% to Kshs 51.9 billion up from Kshs 22.2 billion the previous year. The Group has re
Slide 17: Press Release (Continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) Total Assets grew by 29% to Kshs 1.305 trillion up from Kshs 1.015 trillion driven by a corresponding 29% growth in customer deposits to Kshs 959 billion up from Kshs 740.8 billion resulting in excess cash bein
Slide 18: Press Release (Continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) 2,000 comprehensive Wings to Fly scholarships for 4 years at an anticipated cost of Kshs 2 billion representing shared prosperity with host communities.” Impact Investment Shared Prosperity Business Model and i
Slide 19: Press Release (Continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) The Group has a positive outlook of the future. We have launched a Marshall Plan ‘Africa Recovery and Resilience Plan’ with a seed fund of USD 6 billion equivalent to Kshs 690 billion to act as a stimulus for t
Slide 20: Performance Trend Analysis - Growing Tenfold Every 5 Years
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) Performance Trend Analysis - Growing Tenfold Every 5 Years 20
Slide 21: Wealth Creation for Shareholders
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Press Release (Continued) Wealth Creation for Shareholders “We are optimistic that the ‘Africa Recovery and Resilience Plan’ holds great promise for Africa’s socio-economic prosperity and Equity Group is well positioned to catalyse this
Slide 22: Macroeconomic and Operating Environment
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Macroeconomic and Operating Environment 22
Slide 23: The Great Multi Crises - COVID-19
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE The Great Multi Crises - COVID-19 Economic Crisis McKinsey & Co survey on potential risks to economic growth show COVID-19 pandemic still poses the biggest threat to domestic growth followed by supply chain disruptions and inflation 72%
Slide 24: The Great Multi Crises - COVID-19
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE The Great Multi Crises - COVID-19 Health crisis • Weekly confirmed new cases and deaths • Vaccinations reported as of 15th January 2022 Cases in 16 millions World 10 9.3 Bn Doses given 3.9 Bn 4 Fully Vaccinated Region* (50% of the Pop.)
Slide 25: Regional CBR and Currency Depreciation
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Regional CBR and Currency Depreciation 18.50% Dec-20 Jun-21 Dec-21 15.00% 15.00% 15.00% Regional CBR 8.50% 8.50% 7.00% 7.00% 7.00% 7.00% 7.00% 6.50% 6.50% 5.00% 5.00% 4.50% 4.50% 4.50% Kenya Uganda Tanzania Rwanda DRC S.Sudan Dec-20 Jun
Slide 26: Real GDP growth projected to improve across the region
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Real GDP growth projected to improve across the region 2020 Actual 2021 Estimated IMF 2022 Projection 7.0% 6.5% 5.6% 6.0% 5.6% 5.3% 4.7% 5.1% 5.1% 5.1% 4.9% 4.0% GDP growth 1.0% -0.1% -0.2% -0.1% -2.1% -6.6% Kenya Uganda Tanzania Rwanda
Slide 27: Equity Social Investments Complements Government Efforts against COVID-19
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Equity Social Investments Complements Government Efforts against COVID-19 Pandemic Kes 5.8 billion to complement Government’s health and social responses as well as support our customers Health Response Social Response Loan restructurin
Slide 28: Overview of Africa Recovery and Resilience Plan
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Overview of “Africa Recovery and Resilience Plan” Background The Plan 5 Pillars of the Plan Objectives of the Plan Africa remains a continent ofsignificant The Africa Recovery and The Plan comprises 5 strategic 2025 objectives include:
Slide 29: 2025 Strategy Framework
Equity Group Holdings Plc Investor Briefing FY 2021 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 30: Equity Bank Business Model and Strategy
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Equity Bank Business Model and Strategy 30
Slide 31: Equity Bank Business Model & Strategy Focus
Equity Group Holdings Plc Investor Briefing FY 2021 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 32: Focus Area 1: Non-Funded Income Growth
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 1: Non-Funded Income Growth Kes Billion Gross Loan Interest Gross Interest Income Non-Funded Income Income Growth Trend Contribution to Total Income Growth Trend Growth Trend +21% 112.4 +28% +24% 94.3 92.9 +22% +24% 30.3 74.8
Slide 33: Focus Area 1: Non-Funded Income
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 1: Non-Funded Income Trade Finance Performance Kes Billion Trade finance guarantees & Gross trade finance revenue Trade finance related lending off-balance sheet Items +7% 118.8 +126% 111.3 +55% 21.7 3.2 2.1 9.6 FY FY FY FY F
Slide 34: Focus Area 1: NFI Contribution
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 1: NFI Contribution Equity Group still more diversified than the sector’s average as at Q3 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 35: Focus Area 2: Treasury Efficiency
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 2: Treasury Efficiency Kes Billion Government Y OUR Treasury Gross Income Treasury Income Mix Yield on Government Securities & Securities Portfolio Contribution HE A D L INE Capital Gains Government securities yields and +81%
Slide 36: Focus Area 3: Subsidiaries Performance and Contribution
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 3: Subsidiaries Performance and Contribution Other Subs Total EBKL Group Other Subs Other Subs FY 2021 EBTL EBRL EBUL EBSS Equity EBIL EIB Finserve Contribution Contribution (% Contribution) (% Contribution) (% growth BCDC FY
Slide 37: Focus Area 3: Geographical and Business Diversification
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification RoAE RoAA Subsidiary FY 2020 FY 2021 Subsidiary FY 2020 FY 2021 EBKL 17.9% 33.2% EBKL 2.4% 4.2% EBUL 22.0% 24.2% EBUL 3.1% 3.6% EBRL 22.0% 20.8% EBRL 3.4% 3.1% EBTL -7.9% 1.6% EBTL
Slide 38: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing FY 2021 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 39: Focus Area 3: Subsidiaries achieving high returns in shorter periods
Equity Group Holdings Plc Investor Briefing FY 2021 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 40: Focus Area 3: Geographical and Business Diversification
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 3: Geographical and Business Diversification BRANCHES 337 CAPITAL CITY 132 Branches in Kenya 190 Nairobi 52 Branches in Uganda 43 Kampala 21 Branches in S. Sudan 5 Juba 4 Branches in Tanzania 14 Dar es Salaam 7 Branches in Rw
Slide 41: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification HE R E • 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 market
Slide 42: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing FY 2021 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 product
Slide 43: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing FY 2021 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 Growing linkages to global infrastruct
Slide 44: Focus Area 3: Geographical Expansion and Business Diversification
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Equity Group regional presence to drive cross-border trade and support informal traders Y OUR traders NORTHERN CORRIDOR Gateway through Kenya to landlocked countries of U
Slide 45: Focus Area 3: DRC significant resource endowment
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification DRC significant resource endowment • DRC has the largest reserves of Coltan/tantalite (estimated at 60-80% of global reserves). Coltan is used in many electronic devices
Slide 46: Focus Area 3: Landmark Oil Pipeline deal signed by Uganda and Tanzania
Equity Group Holdings Plc Investor Briefing FY 2021 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 47: Focus Area 3: Promising Tanzania Operating Environment
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 3: Geographical Expansion and Business Diversification Promising Tanzania Operating Environment • Tanzania president, Samia Suluhu Hassan’s, visit to Kenya in early May 2021 eased bilateral relations between the two trade par
Slide 48: Focus Area 4: Balance Sheet Efficiency, Optimization and Agility
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 4: Balance Sheet Efficiency, Optimization and Agility Kes Billion Funding Structure and Leverage Asset Mix Group Group +29% YoY +29% Growth YoY 1,304.9 Growth 8% 1,304.9 41.4 80.2 (3%) 10% (6%) Deposits 128.3 32% Net Loans (1
Slide 49: Focus Area 5: Business Transformation - Innovation and Digitization
Equity Group Holdings Plc Investor Briefing FY 2021 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 1,260 1,247.6 Digit
Slide 50: Focus Area 5: Business Transformation - Innovation and Digitization
Equity Group Holdings Plc Investor Briefing FY 2021 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 5,952.4 6,000 Digital banki
Slide 51: Focus Area 5: Business Transformation - Innovation and Digitization
Equity Group Holdings Plc Investor Briefing FY 2021 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 1,120 Mobile and 1,
Slide 52: Focus Area 5: Business Transformation - Innovation and Digitization
Equity Group Holdings Plc Investor Briefing FY 2021 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 Transaction numbers in million
Slide 53: Focus Area 5: Fintech Capabilities: Digital Business
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Digital Business 98% of our Transactions outside the branch % 88 86.4% Mobile and 86 84.4% internet banking 84 77.5% 78.0% 78 72.0% 72 70 16 14.6% 14 12.0% 11.5% 12 8.3% 8 6.
Slide 54: Focus Area 5: Fintech Capabilities: Self-Service Channels
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Self-Service Channels 71% of our Transactions Value outside the branch Branches now handling high value transactions for SME, corporates, wealth management & advisory service
Slide 55: Focus Area 5: Data Strategy, Decision Science and Analytics
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Data Strategy, Decision Science and Analytics 88% of our Loan Transactions via Mobile Channel FY 2021 Transaction count FY 2021 Transaction value Branch Lending Mobile Lendin
Slide 56: Focus Area 5: Fintech Capabilities: Lifestyle Support
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities Y OUR YoY Transactions (Millions) HE A D L INE 297.8 304.5 Quarterly No of Transactions (Millions) 282.9 1,143.8 258.6 242.
Slide 57: Focus Area 5: Fintech Capabilities: Lifestyle Support
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities – Promoting a Cashless Economy 75% of our customers using cashless payment capabilities rather than transacting in cash FY
Slide 58: Focus Area 5: Fintech Capabilities: Lifestyle Support
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Lifestyle Support Payments Processing Capabilities Cards (POS & ATMs) Agency E-Commerce 5,152.2 2,324.8 1,352.7 -1% +7% +23% +21% 4,201.6 1,923.0 +100% 4.0 40.0 39.5 +100% 75
Slide 59: Focus Area 5: Fintech Capabilities: Compressing Time and Geography
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 5: Business Transformation – Fintech Capabilities: Compressing Time and Geography Remittances Processing Kes Billion +37% 383.5 279.4 1.6 1.5 +10% FY 2020 FY 2021 Transaction Volumes Diaspora Commissions 59
Slide 60: Focus Area 5: Fintech Capabilities: Global Presence
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 5: Business Transformation - Fintech Capabilities: Global Presence FX Trading – Enabling Global Trade Kes Billion Kes Billion • The diaspora flows account for 39% of all client Fx volumes +14% Fx Trading Income 983.4 863.2 59
Slide 61: Focus Area 6: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing FY 2021 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% 9% Tourism & Hospitality co
Slide 62: Focus Area 6: NPLs - Industry vs EGH Plc
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation NPL’s –Industry vs EGH Plc NPL per sector as at FY 2021 Industry - Kenya Equity Group 12.4% WIL L S IT 14.1% 14.5% 14.0% 13.9% 13.6% 12.7% 13.1% 13.1% 8.3% 12.0% 6.1% 6.5% 10
Slide 63: Focus Area 6: Prudent approach to credit risk management
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation Prudent approach to credit risk management Gross loans staging as at FY 2021 Coverage and provisions as at FY 2021 Kes Billion 67.6 Stage 3 Provisions 52.9 Credit Risk Guaran
Slide 64: Focus Area 6: Asset Quality, Distribution and Risk Mitigation
Equity Group Holdings Plc Investor Briefing FY 2021 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 65: Focus Area 6: Proactive Prudent Management
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 6: Asset Quality, Distribution and Risk Mitigation – Proactive Prudent Management COVID-19 accommodated loans (Kes 171 Bn); Kes 125B resumed repayment, additional Kes 38B expected to resume in 12 Months Moratorium expires in
Slide 66: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 7: 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 19.1 36.5 30.
Slide 67: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 7: 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 3.2 64.5% 60.4% 6
Slide 68: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 7: 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 1.3 1.3 56.8% 1.0
Slide 69: Focus Area 7: Efficiency and Cost Optimization
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 7: Efficiency and Cost Optimization Group Net Interest Margin Yield on Interest Earning Assets % % 8.3 7.8 11.2 10.7 7.6 10.4 10.2 10.0 7.5 9.2 9.3 9.5 7.2 8.9 6.8 6.6 6.6 6.4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2020 20
Slide 70: Focus Area 7: Efficient Financial Intermediation
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 7: Efficient Financial Intermediation 13.0 12.7% 12.6% 12.5 12.3% 12.4% 12.2% 12.1% 12.1% 12.1% 12.0% 11.9% 12.0% 11.9% 11.8% Equity Yield on Loans 12.0 11.7% 11.6% 11.7% 11.5 11.3% 11.3% 11.1% 11.2% Equity Group’s lending 11
Slide 71: Focus Area 8: Impact Investment
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Focus Area 8: Impact Investment Impact & Social Investment Programs USD 523M in Social Investment Programs Food & Agriculture Health 3% 5% Energy & Environment 6% Enterprise Development & Financial Inclusion 10% 43% Wings to Fly & Elimu
Slide 72: Focus Area 8: Shared Prosperity Business Model and its Social Impact
Equity Group Holdings Plc Investor Briefing FY 2021 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 • 98% secondary school completion 2.28M Scholarships 26,304 25,000 • 86% attained univ
Slide 73: Business Validation
Business Validation
Slide 74: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Global Ratings and Accolades Equity Bank Credit Rating • Global Rating: B2 2020 Oslo Business for Peace Award • National Rating: Aa3.ke/KE-1 Dr. James Mwangi. • Rating Outlook: Negative Same as the sovereign rating • Position 7 overall
Slide 75: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing FY 2021 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 76: 2021 National Banking Awards and Accolades
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE 2021 National Banking Awards and Accolades 1. Best Overall Bank - 9 years running 2. Best Bank in Tier 1 - 6 years running Brand 3. Best Bank in Sustainable CSR - 4 years running 4. Most customer-centric bank - 3 years running 5. Bank w
Slide 77: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing FY 2021 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 78: Global Ratings and Accolades
Equity Group Holdings Plc Investor Briefing FY 2021 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 79: Dr. James Mwangi honouree, 2020 Oslo Business for Peace Award
Equity Group Holdings Plc Investor Briefing FY 2021 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 80: Kenya/DRC 2021 Trade Mission
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Kenya/DRC 2021 Trade Mission Mission Activities and Statistics • 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 Missi
Slide 81: DRC Business Trade Mission
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE DRC Business Trade Mission Delegates participating during the 14-day mission 81
Slide 82: Market Validation
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Market Validation KES Billion Market Capitalization as at 31st December 2021 1,184.3 Mkt Cap as at 31st December 2021 1,122.5 Total Assets (Q3 2021) PAT (Q3 2021) 592.9 562.6 434.4 411.4 399.1 330.7 295.0 199.1 146.0 76.0 64.4 41.5 48.5
Slide 83: Intermediation and Financial Performance
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Intermediation and Financial Performance 83
Slide 84: Balance Sheet
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Balance Sheet KES Billion FY 2020 FY 2021 Growth Assets Cash & Cash Equivalents 247.1 242.8 -2% Government Securities 217.4 394.1 81% Net Loans 477.8 587.8 23% Other Assets 72.8 80.2 10% Total Assets 1,015.1 1,304.9 29% Liabilities & Ca
Slide 85: Income Statement
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Income Statement KES Billion FY 2020 FY 2021 Growth Interest Income 73.8 94.3 28% Interest Expense 18.7 25.5 37% Net Interest Income 55.1 68.8 25% Non -Funded Income 37.8 43.6 15% Total Income 92.9 112.4 21% Loan Loss Provision 25.9 4.9
Slide 86: RoAE and RoAA Trend
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE RoAE and RoAA Trend RoAE 33.2% FY 2020 26.1% FY 2021 17.9% 15.3% EBKL Group RoAA 4.2% 3.5% FY 2020 2.4% 2.3% FY 2021 EBKL Group 86
Slide 87: Financial Ratios
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Financial Ratios EBKL EBKL Group Group FY 2020 FY 2021 FY 2020 FY 2021 Profitability Yield on Loans 11.6% 11.7% 12.4% 12.2% Yield on Government Securities 10.9% 9.6% 10.7% 9.6% Yield on Interest Earning Assets 10.3% 9.8% 10.0% 9.5% Cost
Slide 88: 2021 Guidance Vs Actual - Group
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE 2021 Guidance Vs Actual - Group 2021 Guidance FY 2021 Actual Loan Growth 20% - 25% 23% Deposit Growth 20% - 25% 29% Net Interest Margin 7.0% - 8.0% 6.8% Non Funded Income Mix 40% - 43% 38.8% Cost to Income Ratio 40% - 45% 49.1% Return o
Slide 89: 2022 Guidance - Group
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE 2022 Guidance - Group 2022 Guidance Loan Growth 25% - 30% Deposit Growth 25% - 30% Net Interest Margin 7.0% - 8.0% Non Funded Income Mix 40% - 43% Cost to Income Ratio 40% - 45% Return on Equity 25% - 30% Return on Assets 3.6% - 4.3% Co
Slide 90: Macroeconomic Environment Indicators & Trends
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Macroeconomic Environment Indicators & Trends 90
Slide 91: Macroeconomic Environment Indicators & Trends
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Macroeconomic Environment Indicators & Trends 15 11.9 9.9 10 5.7 6.3 6.0 6.3 5.6 5.3 5.5 5 5.1 4.9 • QUARTERLY GDP GROWTH – The strong 2.0 performance in Q2 and Q3 2021 was 0 -1.1 supported by continued recovery in -5 -5.7 manufacturing
Slide 92: Macroeconomic Environment Indicators & Trends (continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Macroeconomic Environment Indicators & Trends (continued) 8.00 7.00 6.00 • Interbank Rates – The money market 5.00 was relatively liquid towards the end of 4.00 3.00 Q4 2021 partly reflecting tax remittances, 2.00 which offset governmen
Slide 93: Macroeconomic Environment Indicators & Trends (continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Macroeconomic Environment Indicators & Trends (continued) 7.50 7.00 6.50 6.00 • Inflation – The inflation remained steady but declined marginally from 5.8% in WIL L 5.50 5.00 4.50 November to 5.7% in December as a result 4.00 of easing
Slide 94: Projected Regional GDP Growth
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Projected Regional GDP Growth Forecasts as at November 2021 8.1 7.0 6.6 6.6 6.5 6.0 5.7 5.5 5.6 5.6 5.1 5.1 Kenya Uganda Tanzania Rwanda DRC S. Sudan 2022 2023 Source: IMF 94
Slide 95: Regional Currencies Depreciation against USD
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Regional Currencies Depreciation against USD 3,700 3,660.1 3,660.0 3,650 3,600 3,560.0 3,550.0 3,545.0 3,550 USD/UGX -0.14% 2,350 2,321.5 2,321.5 2,314.0 2,310.0 2,306.0 2,300 USD/TZS -0.17% 1,994.6 2,002.5 2,000 1,976.9 1,980.7 USD/CDF
Slide 96: Regional Outlook
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Regional Outlook Uganda • At the end of the year, activity growth accelerated in annual terms, pointing to a robust economic footing at the outset of Q4. Moreover, the private-sector PMI averaged significantly higher in October - Novemb
Slide 97: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Regional Outlook (continued) Rwanda • The country’s debt distress was raised from low to moderate by the International Monetary Fund and World Bank in June 2021. Urgent fiscal measures are required to reduce debt ratio to 65% of GDP. •
Slide 98: Regional Outlook (continued)
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE Regional Outlook (continued) South Sudan • The oil sector continues to dominate the country’s economy, but the price instabilities in 2021 and delayed investment highlight the need to diversify sources of growth and revenue. • The count
Slide 99: Equity Group Holdings Plc Investor Briefing
Equity Group Holdings Plc Investor Briefing FY 2021 PERFORMANCE 99
Slide 100: Equity Centre contact details
Equity Centre P.O. Box 75104–00200, Nairobi. Equity Centre,Fax: Tel: 0763063000, 9th Floor, UpperHill + 254-020-2737276, P.O.Box 75104, [email protected], Nairobi. www.equitygroupholdings.com Tel: 0763 000 @keEquityBank 000 keEquityBank [email protected], www.equitygroupholding