BK Group PLC · NSEKE:BKG
BK — Bank of Kigali — Investor Presentation (September 2012)
44 slides from BK's investor presentation, September 2012
Slide 1: Bank of Kigali Investor Presentation 1H 2012
BANK OF KIGALI INVESTOR PRESENTATION 1H 2012 Bank of Kigali Investor Presentation Page 1
Slide 2: Disclaimer
Disclaimer This presentation contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to the implementation of strategic initiatives and other statements relating to our business development and financial performance. While these forward-lo
Slide 3: Presentation Team
Presentation Team Lado Gurgenidze Chairman of the Board Email: [email protected] Mobile: +995 599 477 272 lado.gurgenidze.2008 James Gatera Chief Executive Officer Email: [email protected] Te l : + 2 5 0 2 5 2 5 9 3 1 2 1 Lawson Naibo Chief Operating Officer Email: [email protected] Mobile: +250 78 830 2076
Slide 4: Agenda
Agenda 1. Key Investment Highlights 2. Country Overview Information 3. Banking Sector Overview 4. Bank Overview 5. Corporate Governance 6. Business Overview 7. Review Of Financial Performance In 1H 2012 & 2011 8. Strategic Outlook 9. Contact Information Bank of Kigali Investor Presentation Page 4
Slide 5: Key Investment Highlights
Key Investment Highlights 1. Best East African Bank Politically stable country with sound governance 2012 Very attractive demographic profile: population of 10.7 million with 83% below the age of 40 Robust economic growth of 4.1%-11.2% between 2006-2010 and 8.8% expected for 2011 Sound Macro Fundame
Slide 6: Country Overview Information
CO U N T RY OV E RV I E W I N FO R M AT I O N Bank of Kigali Investor Presentation Page 6
Slide 7: Rwanda – Country Profile
Rwanda – Country Profile National Facts Business Environment Area 26,338 sq km Rwanda has been recognized by the World Bank as the second Population (2010) 10.7 million most active reformer globally 2005-2011 Official Languages Kinyarwanda, French, English Since 2005, Rwanda has implemented over 22
Slide 8: Sound Macro Fundamentals
Sound Macro Fundamentals GDP per Capita continues to grow Population Pyramid for Rwanda, 2011 Mln US $ 12 700 595 10 600 479 519 540 60 and above 500 8 391 333 400 6 300 4 40-59 200 2 100 9.2 9.6 9.8 10.1 10.4 10.7 0 0 2006 2007 2008 2009 2010 2011 20-39 Population Nominal GDP Per Capita Healthy GDP
Slide 9: Macroeconomic Indicators
Macroeconomic Indicators GDP Breakdown By Economic Activity 2011 Trade Structure Rwanda’s exports are dominated by coffee, tea and Finance, insurance, Mining and Transport, minerals(tin, coltan and wolfram). 2.8% quarrying, 1.3% storage, communication, The country remains a net importer. Major impor
Slide 10: Review of the Macro Economic Environment Year to June 2012
Review of the Macro Economic Environment Year to June 2012 Macro Economic Review Inflationary Environment Year to Date The country’s GDP continues to perform well, in line with the 9.0% 8.0% 8.3% 7.9% 8.3% annual real GDP growth projections. 8.2% 7.3% 7.0% 7.8% In Q1 2012, real GDP increased by 7.7%
Slide 11: Banking Sector Overview
B A N K I N G S EC TO R OV E RV I E W Bank of Kigali Investor Presentation Page 11
Slide 12: Significant Banking Sector Potential
Significant Banking Sector Potential 2011 Banking Assets/GDP 2011 Banking Assets Per Capita5 Large Unbanked Population (US$) Economy is still cash based with bank accounts being used Kenya* 70% mostly for cash deposits and withdrawals Kenya 534 Approximately 20% of the population is banked 90% of ba
Slide 13: Banking Sector Overview
Banking Sector Overview Rwanda Banking System Total Assets Interest Rate Analysis USD mln 18.0% 16.0% 1,800.0 1,636 14.0% 1,600.0 1,474 12.0% 10.0% 1,400.0 1,226 8.0% 6.0% 1,200.0 1,011 4.0% 1,000.0 922 2.0% 856 0.0% 800.0 Nov June Dec Aug Dec Mar Apr Jul April Oct Jan Feb May Jun Sep Jan May Feb Ma
Slide 14: Timeline Of Foreign Investment In The Rwandan Banking Sector
Timeline Of Foreign Investment In The Rwandan Banking Sector 80% stake in BCR 40% stake in Cogebanque Actis sells 80% stake in BCR to I&M Bank 2004 2006 2007 2008 2009 2010 2011 2012 30% stake in BPR 2008 2009 2010 2011 1H 2012 Bank of Kigali Market Share by Total Assets 23.4% 26.4% 27.4% 32.3% 31.6
Slide 15: Banking Sector Overview Cont’d
Banking Sector Overview Cont’d Case study: Rwanda– six out of nine banks in Rwanda are owned by regional and Pan African bank and have lost market share to locally-run banks Market Share By Total Assets In 2008 Market Share By Total Assets In 2011 Market Share By Total Assets In 1H 2012 Five foreign
Slide 16: Competitive Landscape
Competitive Landscape Market Share Dynamics Banking Sector Growth Vs Bank of Kigali Growth 100% 93.2% % 2009 2010 2011 1H 2012 90% 45% 41.9% 41.1% 80% 40% 70% 35% 31.5% 28.8% 32.2% 32.3% 31.6% 29.4% 60% 52.4% 28.1% 30% 27.4% 28.0% 25.9% 26.7% 45.6% 26.4% 26.8% 50% 25.8% 25% 40% 33.4% 29.9% 20% 30% 2
Slide 17: Bank Of Kigali Is The Market Leader
Bank Of Kigali Is The Market Leader Rank Total Assets Net Loans Customer Deposits Equity 31.6% 28.8% 41.1% 1 28.0% BANK OF KIGALI BANK OF KIGALI BANK OF KIGALI BANK OF KIGALI 2 19.1% 23.4% 20.4% 14.5% BPR BPR BPR BPR 10.4% 9.0% 3 10.8% 11.8% BCR BCR BCR ECOBANK 10.0% 9.9% 8.6% 4 9.6% ECOBANK BCR ECO
Slide 18: Bank Overview
B A N K OV E RV I E W Bank of Kigali Investor Presentation Page 18
Slide 19: Background And History
Background And History Established in 1967 Current Supervisory Board A+ credit rating by US$62.5 mln as a JV with management team enhanced & GCR (Global Credit Initial Public Belgolaise S.A assembled internationalised Rating) Offering of 45% of its shares and listing on the RSE 1967 2006 2007 2007 2
Slide 20: A Snapshot Of Bank Of Kigali
A Snapshot Of Bank Of Kigali Key Facts CAGR 2007- The leading bank in Rwanda (31.6% market share by total assets as of 30 US$ million 2007 2008 2009 2010 2011 1H 2012 2011* June 2012), offering a wide spectrum of commercial banking services to Rwf/USD Period End rate 547.7 560.0 573.2 594.4 604.4 61
Slide 21: Corporate Governance
CO R P O R AT E G OV E R N A N C E Bank of Kigali Investor Presentation Page 21
Slide 22: Shareholding Structure & Corporate Governance
S h a re h o l d i n g S t r u c t u re & C o r p o ra te G o ve r n a n c e Shareholding Structure Corporate Governance Other State The Board of Directors is comprised of nine independent non- Owned executive directors (including two non-resident directors with Entities, Government of 0.1% extensiv
Slide 23: Share Trading Performance and Analyst Coverage
S h a re Tra d i n g Pe r fo r m a n c e 3 September 2012 Analyst Coverage Current price, RwF 130 Market Cap, US$ mln 141 Free float 45% Recommendation: BUY Free float in US$ mln 66.5 Target Price: Rwf 180 Average daily traded volume in US$ mln 0.13 Common shares outstanding, mln shares 667.3 12-mon
Slide 24: Business Overview
B U S I N E S S OV E RV I E W Bank of Kigali Investor Presentation Page 24
Slide 25: Overview Of The Loan Book
Overview Of The Loan Book Gross Loan Portfolio Loan Book Segmentation RwF Bn 30 June2012 31 December 2011 160.0 149.2 CAGR 23.2% 140.0 130.7 120.0 105.5 47.0 80.9 41.2 31.5% 31.5% 100.0 78.8 20.7 80.0 56.6 13.6 14.4 60.0 68.5% 10.8 89.5 102.3 40.0 84.8 68.5% 65.2 66.5 20.0 45.9 0.0 2007 2008 2009 20
Slide 26: Customer Deposit Base
Customer Deposit Base Customer Deposits Growth Customer Deposit Segmentation RwF bn 31 December 2011 250.0 30 June 2012 209.7 CAGR - 15.5% 200.0 181.0 62.9 135.7 54.2 29.9% 150.0 93.8 109.7 30.0% 101.9 36.4 100.0 27.8 23.9 24.2 70.0% 70.1% 50.0 78.0 69.6 81.6 99.3 126.8 146.8 0.0 2007 2008 2009 2010
Slide 27: Corporate Banking
Corporate Banking Description Key Segments as at 30 June2012 Clients include corporate, SMEs and NBAs* Corporate Loans: RWF 102.3 Bn Corporate Deposits: Rwf 146.8 Bn Interest rates are in the 15.0%-17.25% range Key 3.7% products: 10.6% CAPEX loans: long-term loans for investment or 11.0% expansion o
Slide 28: Executing The Retail Strategy
Executing The Retail Strategy Bank of Kigali Investor Presentation Page 28
Slide 29: Retail Banking
Retail Banking Description Key Segments as at 30 June 2012 The Bank’s retail business is primarily focused on mortgages and Retail Loans: RWF 47.0 Bn Retail Deposits: RWF 62.9 Bn consumer loans with notable share of overdrafts Other, Micro 7.3% Key products: loans, 12.8% Mortgage loan: up to 10 year
Slide 30: Growing Our Distribution Network
Growing Our Distribution Network Ubiquitous footprint Increasing functionalities of our delivery channels Branches 2012 Targets 120 101 Cash out and Cash in at Point of sale merchants 100 89 77 Deposit taking ATMs 80 65 56 60 44 Cardless Transactions at ATMs through our mobile 40 banking and mobile
Slide 31: Expanding Our Self Service Products
Expanding Our Self Service Products Growing our Card Business Increasing our Mobile product offering Attractive Products 2011 Achievements 1. Enhancing our mobile banking service Issuing of approximately 40,000 VISA In 2011, the Bank upgraded its SMS banking service to a Electron cards mobile bankin
Slide 32: Refreshing Product And Service Line Up
Refreshing Product And Service Line Up New Business Lines 1. Teleco mobile money agency Super agent for the two telcos All our 56branches will be agents for the mobile teleco money Virtual money customers can deposit, withdraw at any of the BK branches countrywide 2. Establishing BK Securities subsi
Slide 33: Review of Financial Performance in 1H 2012 & 2011
REVIEW OF FINANCIAL PERFORMANCE IN 1H 2012 & 2011 Bank of Kigali Investor Presentation Page 33
Slide 34: Balance Sheet Highlights
Balance Sheet Highlights Total Assets Total Liabilities Rwf bn YTD growth-8.7% RwF bn YTD growth-10.3% 350.0 300.0 312.8 287.9 249.6 300.0 250.0 226.3 250.0 197.7 165.8 200.0 200.0 151.9 133.3 121.5 120.8 150.0 108.7 104.9 150.0 100.0 100.0 50.0 50.0 0.0 0.0 2007 2008 2009 2010 2011 1H 2012 2007 200
Slide 35: Asset Quality
Asset Quality Cost of Risk**, % Manageable NPL Ratio Improving Coverage Ratio % % Rwf Bn NPLs Coverage ratio % 4.5% 25.0% 3.8% 14.0 72.6% 80.0% 4.0% 19.4% 69.1% 67.8% 20.0% 12.0 70.0% 3.5% 57.1% 15.4% 55.3% 60.0% 3.0% 10.0 2.5% 15.0% 45.8% 2.5% 50.0% 8.0 1.9% 40.0% 2.0% 8.3% 10.0% 8.3% 8.5% 6.0 1.5%
Slide 36: Funding
Funding Funding Structure, % Significant Potential For Growth In Higher Yielding Assets 30 June2012 31 December 2011 90.0% Net Loans/Customer Deposits Net Loans/Assets 9.1% 76.8% 80.0% 74.7% 6.8% 70.4% 68.0% 68.0% 70.0% 21.4% 60% 20.2% 60.0% 51% 51% 47.8% 50.0% 43% 46% 40% 67.0% 62.9% 40.0% 6.0% 30.
Slide 37: 1H 2012 Performance Highlights
1H 2012 Performance Highlights Net Interest Income Net Non-Interest Income Total Operating Income Rwf bn Rwf bn Rwf bn 12.0 8.0 20.0 32.4% 10.3 21.8% 7.0 27.9% 17.3 7.0 18.0 10.0 5.7 16.0 7.7 6.0 14.0 13.5 8.0 5.0 12.0 6.0 4.0 10.0 3.0 8.0 4.0 6.0 2.0 2.0 4.0 1.0 2.0 0.0 0.0 0.0 1H 2011 1H 2012 1H 2
Slide 38: 2011 Performance Highlights
2011 Performance Highlights Net Interest Income Net Non-Interest Income Total Operating Income RwF bn RwF bn RwF bn 18.0 +36% 16.6 14.0 +43% 12.9 35.0 +39% 29.5 16.0 12.0 30.0 14.0 12.2 10.0 9.0 25.0 12.0 21.2 10.0 8.0 20.0 8.0 6.0 15.0 6.0 4.0 10.0 4.0 2.0 2.0 5.0 - - - 2010 2011 2010 2011 2010 201
Slide 39: Income Statement Highlights
Income Statement Highlights Total Operating Income Composition Of Total Operating Income 30 June 2012 31 December 2011 Rwf bn 2.6% 20.0 3.0% 27.9% 17.3 20.8% 18.0 16.0 26.0% 14.0 13.5 12.0 59.4% 56.3% 10.0 17.2% 14.7% 8.0 6.0 4.0 2.0 Net interest income Fees & Commisions FX gains Other non- interest
Slide 40: Consistent Profitable Growth
Consistent Profitable Growth Sustainable Net Interest Margin, % Attractive Cost/Income ratio Nigeria average: 67.3% Nigeria average: 6.8% SA average: 6.8% SA average: 59.1% 12.0% 9.5% 9.0% 60.0% 51.7% 8.2% 8.3% 8.4% 8.3% 47.5% 48.2% 9.0% 50.0% 39.5% 39.8% 44.1% 40.0% 6.0% 30.0% 3.0% 20.0% 10.0% 0.0%
Slide 41: Strategic Outlook
ST R AT EG I C O U T LO O K Bank of Kigali Investor Presentation Page 41
Slide 42: Strategic Outlook
Strategic Outlook Objectives Strategies Action Outcomes Build a ubiquitous branch footprint Expand the branch network to 60+ branches by YE 2013 Benefit from first-mover advantage throughout the country outside the capital city, making it more difficult for the competitors to follow suit Increase th
Slide 43: Management Targets
Management Targets Total TotalAssets Growth Assets Growth Gross Loans/Total Assets Other Selected Management Other targets Management targets 50% 46% 70% 60% Launch representative offices within the EAC region 45% 60% 40% 35% 30% 50% 45% 1H 2012: 48% 30% 40% 25% Kampala Nairobi 20% 30% Launch agency
Slide 44: Contact Information
Contact Information For information please contact: Lado Gurgenidze James Gatera Chairman of the Board Chief Executive Officer Email: [email protected] Email: [email protected] Mobile: +995 599 477 272 Mobile: +250 78 814 3000 Lawson Naibo John Bugunya Chief Operating Officer Chief Finance Officer Email
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