#1110101 110110 &MBank PLC KENYA TANZANIA RWANDA MAURITIUS 110101 110T10 INVESTING FOR GROWTH FULL YEAR & QUARTER 4 2019 INVESTOR BRIEFING B 110101 110110 B B B &M#2i&MBank IPLC OUTLINE 1. MACRO-ECONOMIC REVIEW & OUTLOOK 2. RWANDA BUSINESS OVERVIEW 3. OUR BANK 4. BUSINESS OVERVIEW 5. OUR STRENGTH 6. FUTURE OUTLOOK 7. COVID-19 UPDATE KENYA TANZANIA RWANDA MAURITIUS I&M Rwanda - Investor Briefing - FY & Q4 2019#3110101 110110 &MBank PLC KENYA TANZANIA RWANDA MAURITIUS 110101 110T10 MACRO-ECONOMIC REVIEW & OUTLOOK B 110101 110110 B B B &M#4i&MBank IPLC ECONOMIC REVIEW - GLOBAL According to the World Bank, the global economy noted a deceleration in 2019 with growth estimated at 2.4 percent its slowest expansion rate since the global financial crisis. This is a consequence of rising trade barriers; elevated uncertainty surrounding trade and geopolitics causing macroeconomic strains in emerging market economies and advanced economies. GLOBAL GROWTH 8 7 6 5 4 3 32 KENYA TANZANIA RWANDA MAURITIUS • • Most notable feature of the sluggish growth in 2019 is the sharp and geographically broad-based slowdown in manufacturing and global trade - driven by higher tariffs and prolonged uncertainty surrounding trade policy. Global growth is projected to modestly improve to 2.5 percent. Emerging market and Developing economies are projected to pickup growth to 4.1 percent in 2020, driven by recoveries or shallower recessions. 2 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Advanced economies EMDES World Downside risks to the outlook are elevated. Current global health pandemic and heightened geopolitical tensions could further disrupt supply chains and hamper confidence, investment, and growth. Source: World Bank - Global Economic prospects I&M Rwanda - Investor Briefing - FY & Q4 2019 4#5110101 110110 &MBank PLC KENYA TANZANIA RWANDA MAURITIUS 110101 110110 RWANDA BUSINESS ENVIRONMENT B 110101 110110 B B B &M#6i&MBank IPLC KENYA TANZANIA RWANDA MAURITIUS RWANDA COUNTRY PROFILE & BUSINESS ENVIRONMENT COUNTRY PROFILE 26,338 sq. km 12,374,397 (2019 proj) Kigali Area Population Capital Official languages Currency Kinyarwanda, English, French Business Environment • Ranked 2nd Best destination to do business in Africa by the World Bank 2020 Doing Business Report & 38th Globally. Rwanda is marked by Good governance & Stable political climate • Youthful population with only 3% of the population >60 Francs Rwandais (FRW) - {1US$ 926.084116 FRW as at 31 December 2019} • Key projects includes: Credit rating 'B+' S&P ratings (Feb 2020) · Construction of Bugesera Airport (Championing the Single Africa Air Transport) - Construction of 4 ports on lake Kivu, - Expansion & support to RwandAir operations, - Promoting MICE tourism & quality Road infrastructure development. I&M Rwanda - Investor Briefing - FY & Q4 2019#7i&MBank IPLC KENYA TANZANIA RWANDA MAURITIUS RWANDA-COUNTRY PROFILE & BUSINESS ENVIRONMENT GDP growth and its drivers GDP growth Q4 2019 9.8% Total budget (FY 19/20) FRW 3,017.1bn Expenditure (% of GDP) 26% Inflation 2.4% Services 49% Rwanda's GDP at current market prices in 2019 was estimated at Frw 9.105Billion, a growth of 9.8% compared to 2018, as a result of good performance in the industry (+17%) & services (+8%) sectors. - The high performance recorded in the industry sector was mainly driven by booming construction activities (+33%) backed by recent infrastructure projects.. Air transport activities (+17%) and Wholesale trade & retail activities (+16%) were the main drivers of the services sector. The agriculture sector performance noted growth of 5%, due to food crop production reduction but the trend was supported by good performance in export crops and livestock. GDP breakdown by sector (FY 2019) Tax (less subsidy) 9% Industry 18% Agriculture 24% Source: BNR Monetary Policy, NISR Publications I&M Rwanda - Investor Briefing - FY & Q4 2019#8i&MBank IPLC RWANDA - KEY ECONOMIC INDICATORS Inflation Development 7 100 Headline Core Trade Structure • KENYA TANZANIA RWANDA MAURITIUS The country remains a net importer, with imports growing by 10.6% in 2019. 1 4.2 2017H1 2017H2 2018H1 2018H2 2019H1 2019H2 Trade deficit as a % of GDP 20.0% 15.0% 15.4% 15.0% 11.2% 9.1% 9.6% 10.0% 5.0% 0.0% 2015 2016 2017 2018 2019 • Rwanda's exports grew by 3.8% in 2019 - Driven by good performance of non-traditional exports (+10.1%) and re-exports (+22.4 %). . Trade deficit increased by 16.3% to USD 1,538.9 in 2019 from USD 1,323.4 Million in 2018. • Rwanda remains a net exporter of informal cross border trade in the EAC region with a trade surplus of USD 97.1 million in 2019. Source: BNR Monetary Policy I&M Rwanda - Investor Briefing - FY & Q4 2019 8#9i&MBank IPLC RWANDA – BANKING SECTOR OVERVIEW OVERVIEW - The sector is comprised of 11 Commercial Banks, 3 Micro finance banks, 1 Development Bank & 1 Cooperative Bank. Loans & Advances remains the largest component of Bank's Assets at 57.4% (December 2019) . Deposits continues to be the primary funding source representing 76.7% (December 2019) Rwf 'Billions 1,228 1,426 2,133 2019 KEY UPDATES Liquid assets dropped down by 9.1% to RWF 330Billion in December 2019 from RWF 363.7Billion as of end December 2018 - Decline attributable to increase in investments in Treasury Bonds. Money market interest rates declined by 14 basis points to 5.46% (avg) in 2019, compared to 5.60% in the same period of 2018. Average lending rates declined to 16.47% from 17.07 and deposit rate dropped slightly to 7.59% from 7.61 %. I&M Rwanda - Investor Briefing - FY & Q4 2019 1,403 1,530 2,380 KENYA TANZANIA RWANDA MAURITIUS Banking Sector 1,579 1,723 2,686 1,871 1,965 3,091 2015 2016 2017 2018 2019 Loans & Advances Total Deposits ■Total Assets 2,084 2,190 3,476#10110101 110110 &MBank PLC KENYA TANZANIA RWANDA MAURITIUS OUR BANK 110101 110110 B 110101 110110 B B B &M#11i&MBank IPLC KENYA TANZANIA RWANDA MAURITIUS FINANCIAL OVERVIEW - INCOME STATEMENT Rwf 'Billions Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 CIR 67% Net Interest Income 11.3 13.9 17.5 20.2 21.9 64% 61% Fees &Commissions 3.3 3.1 2.7 2.4 2.2 58% 58% Total Revenue* 19.9 21.4 23.5 25.7 27.4 Total OPEX (12.7) (12.9) (13.7) (14.9) (18.4) 2015 2016 2017 2018 2019 4.9 5.8 6.5 7.5 6.1 CIR PAT *Total Revenue after LLP CAGR 5YEAR - 18 Net Interest Income - 8 10 Total Revenue Total OPEX Note on the increase in C.I.R: - Re-engineering cost Additional amortization cost (Core Banking system) I&M Rwanda - Investor Briefing - FY & Q4 2019 11#12Rwf 'Billions i&MBank IPLC FINANCIAL OVERVIEW - BALANCE SHEET 24 24 94 2015 CAGR 5YEAR - 137 147 172 30 111 161 176 206 35 148 209 225 260 KENYA TANZANIA RWANDA MAURITIUS 169 231 239 294 2016 2017 2018 2019 Shareholders Equity ■Net Loans ■Total Deposits ■Total Liabilities ■Total Assets 40 40 Loan-to-Deposit Ratio 300 75% 76% 250 73% 200 71% 15 16 17 150 69% 69% 100 50 1 74% 72% 70% 68% 0 66% 2015 Total Deposits Net Loans Total Assets 2016 Net Loans 2017 2018 2019 Total Deposits LDR I&M Rwanda - Investor Briefing - FY & Q4 2019 12 43 172 243 275 318#13i&MBank IPLC FINANCIAL OVERVIEW - INDUSTRY REVIEW As at 31 December 2019 CAR (Tier 2) NPL Ratio LCR NSFR Loan-to-Deposit ratio ROAE Source: BNR Statistics Department KENYA TANZANIA RWANDA MAURITIUS Industry I&M Bank Rwanda 24.1% 18.27% 4.9% 2.54% 215% 229% 111% 153% 95.2% 70.6% 12.5% 15.2% I&M Rwanda - Investor Briefing - FY & Q4 2019 13#14110101 110110 &MBank PLC KENYA TANZANIA RWANDA MAURITIUS 110101 110110 BUSINESS OVERVIEW B 110101 110110 B B B &M#15i&MBank IPLC CUSTOMER SEGMENTATION [+] Corporate Banking Business Banking Digital Experience Business Intelligence KENYA TANZANIA RWANDA MAURITIUS Institutional Banking M Retail Banking Product Development I&M Rwanda - Investor Briefing - FY & Q4 2019 Transaction Banking 15#16i&MBank IPLC RECENT DEVELOPMENTS OUR CARDS & DIGITAL OFFERING • The first multi-currency travel card in Rwanda - MasterCard Automated Deposit-taking machines & Mobile ATM MSME VALUE PROPOSITION - END-TO-END REVIEW Customer value propositions . • Products • Business model & Sales strategy • Credit Risk Management KENYA TANZANIA RWANDA MAURITIUS HOTEL & TOURISM . Partnership initiative with focus to increase employment opportunities for young people while expanding the Tourism & Hospitality sector in Rwanda SPENN >250k sign-ups • • +7000 Business registered to-date • Average +300Mn transaction volume . Average 250K transaction count per month I&M Rwanda - Investor Briefing - FY & Q4 2019 16#17i&MBank IPLC YOU'LL LOVE THE DIFFERENCE Simple • Suitable ⚫ Sustainable Great Automation Digital platforms (iClick & Mobile Banking) Straight through processes KENYA TANZANIA RWANDA MAURITIUS Accessible 24/7 Upgraded ATMs Online Account Opening Bundled Products & Services for targeted segments Transaction banking Review SME Banking Model Aim to treat customers personally Best Loans TAT Business Banking Center Select Banking Branch ABC I&M Rwanda - Investor Briefing - FY & Q4 2019 Make it easier for our staff to provide service excellence Redesigned processes Focused staff training 17#18110101 110110 &MBank PLC KENYA TANZANIA RWANDA MAURITIUS 110101 110110 FUTURE OUTLOOK B 110101 110110 B B B &M#19KENYA TANZANIA RWANDA MAURITIUS 5-YEAR STRATEGIC OBJECTIVES Strategic objective: Sustainable growth through leveraging technology, a strong staff base and customer focused business development. i&MBank IPLC FOUNDATION Business Growth Revenue Diversification GROWTH PILLARS Optimizing Channels Leverage on group synergy Referral maximization of customer operating in EAC region Attract, develop, nurture and retain the right talent • Continuous specific staff training Expand leadership training I&M Rwanda - Investor Briefing - FY & Q4 2019 Operational Excellence A Adopt an integrated, secure and for purpose IT platform Digitalisation. . Roll out of Finacle 10 1999#20i&MBank IPLC LOVING THE DIFFERENCE KENYA TANZANIA RWANDA MAURITIUS Shareholders Generate sustainable value for our shareholders. Customers Most Convenient Bank. Easy to Deal with. Regulators Good governance. Exemplar in the industry. Staff Make it easier for our staff to provide service excellence. Community Continuous support to our focus areas "Education, Environment and Health. I&M Rwanda - Investor Briefing - FY & Q4 2019 20 20#21110101 110110 &MBank PLC KENYA TANZANIA RWANDA MAURITIUS 110101 110110 COVID-19 UPDATE & STRATEGY B 110101 110110 B B B &M#22i&MBank IPLC UPDATE & STRATEGY OPERATIONS Ensuring business continuity and operations 24/7. • Implementation of BCP policy • • Onboarding customers on digital channels (iClick, Mobile Banking, USSD) Health guidelines applied on all our branches RISK IMPACT Assessment ongoing on impact of pandemic on business growth. . Close monitoring of high-risk businesses. Implementation of BNR' key decisions. Heightened measures to mitigate Information and cyber security risk. KENYA TANZANIA RWANDA MAURITIUS EMPLOYEES • • Additional centers added to existing BCP center to ensure business continuity and adhere to the health official's recommendation to prevent the spread of the disease. Additional measures cascaded & implemented on each unit level. • Prompt and regular communication to all staffs. • Transport facility to facilitate movement during lockdown. I&M Rwanda - Investor Briefing - FY & Q4 2019 22 22#23110101 110110 &MBank PLC KENYA TANZANIA RWANDA MAURITIUS DISCLAIMER 110101 110110 B 110101 110110 B B B &M#24KENYA TANZANIA RWANDA MAURITIUS Important Notice & Forward-looking statements i&MBank IPLC This presentation is based on I&M Bank Rwanda Plc (the "Bank)'s reviewed financial results for the period ended 31 December 2019. The Bank has obtained some information in this presentation from sources it believes to be reliable. Although I&M Bank Rwanda Plc has taken all reasonable care to ensure that the information herein is accurate and correct, the Bank makes no representation or warranty, express or implied, as to the accuracy, correctness or completeness of such information. Furthermore, I&M Bank Rwanda Plc makes no representation or warranty, express or implied, that its future operating, financial or other results will be consistent with results implied, directly or indirectly, by such information or with I&M Bank Rwanda Plc's past operating, financial or other results. Any information herein is as of the date of this presentation and may change without notice. I&M Bank Rwanda Plc undertakes no obligation to update the information in this presentation. In addition, some of the information in this presentation may be condensed or incomplete, and this presentation may not contain all material information in respect of I&M Bank Rwanda Plc. This presentation also contains "forward-looking statements" that relate to, among other things, I&M Bank Rwanda Plc's plans, objectives, goals, strategies, future operations and performance. Such forward-looking statements may be characterized by words such as "estimates," "expects," "projects," "believes," "intends," "plans," "may," "will" and "should" and similar expressions but are not the exclusive means of identifying such statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause I&M Bank Rwanda Plc's operating, financial or other results to be materially different from the operating, financial or other results expressed or implied by such statements. Although I&M Bank Rwanda Plc believes the basis for such forward-looking statements to be fair and reasonable, I&M Bank Rwanda Plc makes no representation or warranty, express or implied, as to the fairness or reasonableness of such forward-looking statements. Furthermore, I&M Bank Rwanda Plc makes no representation or warranty, express or implied, that the operating, financial or other results anticipated by such forward-looking statements will be achieved. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. I&M Bank Rwanda Plc undertakes no obligation to update the forward-looking statements in this presentation. I&M Rwanda - Investor Briefing - FY & Q4 2019 24 24#25i&MBank IPLC ABBREVIATIONS KENYA TANZANIA RWANDA MAURITIUS Financial CAR Capital Adequacy Ratio AFDB Institution African Development Bank CRR Capital Requirements Regulation BNR National Bank of Rwanda EPS (Basic) Earnings per Share CMA Capital Markets Authority FY Financial Year GCR Global Credit Rating LCR LDR MoM Liquidity Coverage Ratio Loan-to-Deposit Ratio Month-on-Month IMR MINECOFIN NISR PAT Profit After Tax RDB I&M Bank Rwanda Plc Ministry of Finance and Economic Planning National Institute of Statistics of Rwanda Rwanda Development Board PBT Profit Before Tax RRA Rwanda Revenue Authority RWA Risk Weighted Assets RSE Rwanda Stock Exchange YOY Year-on-Year S&P Standard & Poor's YTD Year-to-Date Currency FRW Rwandan Francs USD United States Dollars I&M Rwanda - Investor Briefing - FY & Q4 2019 25#26i&MBank IPLC CONTACT INFORMATION For further information, please contact Robin BAIRSTOW Managing Director E: [email protected] Visit our website: www.imbank.com/rwanda KENYA TANZANIA RWANDA MAURITIUS Iddy RUGAMBA Company Secretary E: [email protected] Hugues M. KAYIGAMBA Investor Relations E: [email protected] I&M Rwanda - Investor Briefing - FY & Q4 2019 26#27ΠΟΙΟΙ HONG i&MBank IPLC KENYA TANZANIA RWANDA MAURITIUS B ULT TO 110IDI 110110 B 70 MW THANK YOU www.imbank.com/rwanda B EDIO HOITO Palol B I&M