#1KCB INVESTOR PRESENTATION Q3 2023 Performance Nairobi, 22 November 2023 For People. For Better. Regulated by the Central Bank of Kenya#2Disclaimer The information contained herein has been prepared by KCB Group Plc ("KCB"). This presentation has been prepared for information purposes only and is not and does not form part of any offer for sale or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Forward looking statements Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of KCB. These forward-looking statements include all matters that are not historical facts. Although KCB believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. KCB or any other entity within the Group undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise except to the extent legally required. Nothing in this document should be construed as a profit forecast. Rounding differences Please note that rounding differences may appear within the presentation. Navigation icons Read more For People. For Better. Web link 2#3KCB 01 > Business Overview Financial Performance FY 2023 Outlook Appendices For People. For Better. 3#4KCB Q3 2023 Investor Presentation We work to position KCB as a financial services leader that puts people first, to make life better for the millions of customers we serve. OUR PURPOSE For People. For Better. OUR VALUES Closer. Connected. Courageous. 4#5Q3 2023 Investor Presentation We are a regional powerhouse leveraging our strong brand to link millions of people to possibilities on the African continent and beyond. Opening Doors of Opportunity since 1896 KAN Kenya | Tanzania | South Sudan Rwanda | Uganda | Burundi | DRC 5 For People. For Better. 33 Million Customers 598 Branches 12,067 Dedicated employees 1,318 ATMs 33,393 Agents & Merchants E Kil Appendices EDO KCB#6Q3 2023 Investor Presentation A well diversified businesses model designed to drive and build the scale required to match the meaningful role we play in the region. KCB KCB 6 100% KCB Bank Kenya Ethiopia Rep Office 100% National Bank of Kenya 100% 100% KCB Bancassurance KCB Bank Tanzania 100% KCB Investment Bank 100% KCB Bank South Sudan KCB Group Plc 100% KCB Asset Management 87% BPR Bank Rwanda 100% Kencom House Limited 100% KCB Bank Burundi 100% KCB Bank Uganda 85% Trust Merchant Bank BANK Brussels Rep Office National Bank bpr BANK KCB Asset Management KCB BANCASSURANCE INTERMEDIARY Investment KCB Bank TMB For People. For Better.#7Q3 2023 Investor Presentation KCB Operating context characterized by currency depreciation and a high-interest rate environment. We are committed to support our customers through these challenges. 感 Tailwinds Strong projected GDP growth rates across the region in the medium term despite the slowing growth globally. Headwinds Depreciation of local currencies exacerbating inflationary pressure, eroding purchasing power and negatively impacting trade. Rollout of risk-based pricing to drive inclusion of previously priced-out customers. Fiscal pressures across the region portend increased costs due to rise in taxes while constrained liquidity in the markets impacts cost of funds. Anticipated decline of interest rates in the medium term as inflation continues to decline. (starting H2 2024) Continued disruptions occasioned by global geopolitical risks. 7 For People. For Better. Kil Appendices#8The people we serve are at the core of our Beyond Banking Strategy. Q3 2023 Investor Presentation 03 Our 2020-2023 02 Our Strategic Thrusts Strategy 01 Our Strategic Vision The very best in customer experience, driving a digital future. Ms Customer first, with leading value propositions. Step change in efficiency and productivity. Digital leader and digital to the core. Scale to achieve regional relevance. > Our Deliverables → Embed customer obsession. → Grow total assets. → Reduce cost to income ratio. → Grow non funded income. → Grow contribution to profits from regional subsidiaries. 8 For People. For Better. KCB#9Q3 2023 Investor Presentation We are a partner of choice for millions of clients backed by our leading solutions that enable customers to pay, borrow, save, insure and invest with unmatched convenience. KCB 01 Strong retail banking franchise → Largest retail banking loan book in the region. → Largest branch network in the region. 02 Leading corporate banking solutions → Strong momentum in growth of new to bank customers. → Largest corporate banking loan book in the region. 03 Innovative digital financial services → 99% of transactions through digital channels. → Simplified customer journeys. → New term facilities on mobile. Up to 1 year. 04 Suite of non-banking products Investment products through KCB Investment Bank. Insurance solutions via KCB Bancassurance. → Asset management solutions through KCB Asset Management. 9 For People. For Better.#10Strong retail banking franchise Q3 2023 Investor Presentation We are a partner of choice for both public and private sector clients backed by our strong brand and exemplary track record. Powering growth in the private sector 10 Public vs private sector loans in KCB Kenya 4% 3.4x faster growth in gross loans compared to Govt securities 316.1 ΟΙ 96% Private sector and individuals Government and parastatals For People. For Better. Gross loans 94.2 Government securities What differentiates KCB Wide footprint: Present in 7 countries and in every county in Kenya. Strong balance sheet: #1 in Kenya and the region. Stable and trusted brand: Over 127 years of continuous operations. Dominant and diversified business: Full suite of financial solutions. KShs Billion Exceptional talent: Largest, diverse staff complement. KCB#11Strong retail banking franchise Q3 2023 Investor Presentation KCB We are the number 1 retail bank in the region powering dreams and supporting households and small businesses to thrive. FLME Financing MSME Financing Affordable housing Opening doors for those who feed us everyday For People. For Better. Opening doors for businesses to thrive For People. For Better. COFFEE COFFEE PRODUCE OF KEN K C Enabling dreams through affordable housing For People. For Better. Over KShs 90 billion in loans to women owned businesses. Over KShs 100 billion in loans to MSMEs. Single digit interest rates for affordable housing. 11 For People. For Better.#12Strong retail banking franchise Q3 2023 Investor Presentation KCB We support schools to broaden access to education. We bank the largest segment of both public and private schools across the region. School infrastructure 4❤E For the love of education Clean energy solutions Digital learning KCB BANK Be the teacher that taught the first African youngest computer genius CODING FOR SCHOOLS #TheLoveofEducation School infrastructure financing for over 40,000 schools operating over 120,000 school accounts. 12 For People. For Better. Clean cooking energy financing for schools supported by partial grants from KCB Foundation. Partnership with an education technology provider to enable access to coding lessons at discounted rates.#1313 Leading corporate banking solutions Q3 2023 Investor Presentation KCB ... while also leading the transition to a low carbon future through easily accessible and affordable financing for clean energy, e-mobility and the associated infrastructure. BASIGO 100% electric Electric buses KCB KCB KCB Electric motorbikes E-mol@ity Renewable energy CO₂ 17 2 E-mobility solutions to finance purchase of electric buses by public transport operators. E-mobility programme aimed at introducing 100,000 electric motorbikes in three years. $300M climate & MSME finance from DFIs. To grow green loans to 25% of our portfolio by 2025 (>KShs 200B by 2025). For People. For Better.#14Innovative digital financial services Q3 2023 Investor Presentation KCB Increased self-serve capabilities continue to drive efforts to simplify customer journeys through availing unmatched convenience for customers. Ʌ99% of transactions by number conducted through non branch channels helping us drive exceptional customer experience. Q3 22 Q3 23 NPS 56 62 CES 18% 13% Number of non-branch channel transactions in Q3 2023 (M) YoY Change 18 98 46 Mobile Lending 264% 117 Total: 807M Up 121% YoY 609 *Mobi service includes B2C, C2B, B2B, Lipa Karo and Float purchase 14 For People. For Better. Mobi Service* (10%) Agency 8% Merchant POS 51% Internet Banking 49% ■ ATMs 3%#15Innovative digital financial services Q3 2023 Investor Presentation KCB Value of transactions across our channels grew by 61% to KShs 8.1 trillion, showcasing KCB's position both as an enabler and beneficiary of recovery in business activity. Ʌ59% of transactions by value conducted through non branch channels Ʌ82% YoY growth in value of branch transactions to KShs 3.3 trillion 15 For People. For Better. Value transacted through digital channels in Q3 2023 (KShs B) YoY Change 137 303 491 1,451 Mobi Service* 59% Internet Banking 51% Total: 4,481B 2,437 ■Agency YoY growth of 36% *Mobi service includes B2C, C2B, B2B, Lipa Karo and Float purchase ■ ATMs 13% 43% Merchant POS 99%#16Innovative digital financial services Q3 2023 Investor Presentation KCB Value of mobile loans disbursed grew to an all time high of KShs 245 billion augmenting our efforts to support households and small businesses to bounce back stronger. ^ 77% Growth in value of mobile loans disbursed driven by Fuliza, introduction of term loans on KCB Mobi and new mobile lending products for small businesses. 16 For People. For Better. Value of mobile loans disbursed in Q3 2023 (KShs B) Fuliza personal 69% YoY growth 150.3 33.8 24.8 KCB MPESA 1% YoY growth 23.0 13.3 KCB mobi loan Total value of mobile loans 245.2 60% YoY growth Business loans Digital overdraft and retailer financing. Fuliza business Introduced in 2023#17Innovative digital financial services Q3 2023 Investor Presentation KCB Our market leading solutions and easily accessible channels continue to deepen product uptake leading to a growth in revenue from digital channels. Total NFI from digital channels KShs 9,879 M YoY growth of 67% 17 For People. For Better. Digital channels non funded income in Q3 2023 (KShs M) Mobile banking Agency and Merchant POS 2,020 Internet Banking 561 YoY Change 7,066 76% 50% 67% ATMs 232 2%#18Suite of non-banking products Q3 2023 Investor Presentation KCB Leading Bancassurance Intermediary and repositioned investment banking and asset management subsidiaries to better capitalize on existing synergies. 18 Bancassurance → Giving customers the impetus to conduct their businesses and the peace of mind to thrive in life, without worrying about unforeseen events. → Provides a suite of innovative products in medical, property, and life insurance segments. KCB Investment Bank KCB Asset Management Provides Offers → Wealth management → Advisory → Brokerage services → Distribution of collective investment schemes with a focus on money market fund. → Fund management services → Collective investment schemes → Pension management services → Corporate trustee services. For People. For Better.#19Q3 2023 Investor Presentation KCB Sustained growth momentum Our customers continue to power our growth with their resounding #KCBNiYetu call. In 2023, they.. 19 Saved more 80% Borrowed more 38% Growth in customer deposits Growth in customer loans and advances For People. For Better. Transacted more ← 119% Growth in total number of transactions across our channels#20Sustained growth momentum ... leading to strong revenue growth across all subsidiaries. 20 BANK Q3 2023 Investor Presentation KCB Uganda Ʌ63% Tanzania South Sudan Burundi Rwanda DRC* Ʌ56% KShs 3.3B KShs 4.5B ^41% KShs 1.9B Ʌ16% KShs 1.2B Ʌ12% KShs 6.8B KShs 18.1B For People. For Better. Kenya Non-banking A29% KShs 1.1B KCB Bank Kenya A5% KShs 71.6B *Acquired in Q4 2022 NBK V1% KShs 8.3B#21Sound corporate governance Q3 2023 Investor Presentation KCB We create and preserve value supported by a clearly defined governance structure which provides for oversight, delegation and clear lines of authority. Shareholders Accountable Accountable to shareholders BOARD OF DIRECTORS to the Board 11 Directors* 9 Non-executive and 2 Executive Reporting to the Board Delegated authority GROUP CHIEF EXECUTIVE OFFICER Group delegation of authority *Three vacant NED positions 21 For People. For Better. Executive Committee Board Committees Audit and Risk Human Resources and Governance Nomination Strategy and IT W Oversight General Management Committee Assets & Liabilities Management Committee Group Operational Risk & Compliance Committee Management Credit Risk Committee#22Sound corporate governance Q3 2023 Investor Presentation We are a publicly listed company with no single majority shareholder, over 80% free float shares at the Nairobi Securities Exchange and three other regional bourses. Our Board composition is driven by the following principles: . • The Board comprise of a majority of independent non-executive directors. The Board consist of Directors with a broad range of skills, experience and expertise and are from a diverse range of backgrounds. ⚫ The Chairman of the Board is an independent non-executive director. 8 out of the 11 seats are reserved for independent, non-executive Directors elected by the Shareholders on a rotational basis at the Annual General Meeting. In line with our Board Charter, non-executive Directors serve a term not exceeding a total of 8 years on the Board. In accordance with the Board Charter, the Group Chairman serves for a maximum term of 5 years in that capacity. 22 For People. For Better. KCB#23Sound corporate governance Q3 2023 Investor Presentation Our senior management team mandated to ensure we remain well positioned and responsive to regional opportunities for growth. KCB 23 Paul Russo, EBS Lawrence Kimathi Annastacia Kimtai Group Chief Executive Officer Group Finance Director Managing Director KCB Bank Kenya Japheth Achola Group Director, Human Resource John Mukulu Group Chief Risk Officer Bonnie Okumu Charles Lang'at Rosalind Gichuru Group General Counsel Group Internal Auditor Group Director, Marketing and Communications Dennis Volemi Group Director, Technology For People. For Better. Cosmas Kimario Ag. Group Regional Businesses Director and MD KCB Tanzania Jackline Bosibori Ag. Group Director, Shared Services EXCO members profiles https://ke.kcbgroup.com/about-us/our-leaders#24Sound corporate governance Q3 2023 Investor Presentation Our senior management team mandated to ensure we remain well positioned and responsive to regional opportunities for growth. Cosmas Kimario Ag. Group Regional Businesses Director and MD KCB Tanzania 24 For People. For Better. George Odhiambo Patience Mutesi Edgar Byamah MD National Bank of Kenya MD BPR Bank Rwanda MD KCB Bank Uganda Jaldesa Roba Oliver Meisenberg Masika Mukule MD KCB Bank South Sudan MD TMB MD KCB Bank Burundi KCB#25Sustainability Q3 2023 Investor Presentation KCB The Group continues to align its practices to address climate related risks and tap on opportunities in financing projects aimed at addressing climate change. 01 Governance → Board oversight ESG matters through Audit & Risk committee. → 89% of staff took a Group wide online Sustainability course in 2023. 02 Strategy → Focus on green lending. >KShs 18.5 billion green facilities approved. → 3% increase in resource use. Planted 283,000 trees as part of our carbon offset program. 03 Risk management → Revised 8 policies to enhance climate risk management. → Screened loans worth KShs 454.2 billion under ESDD¹ as at Q3 2023. 04 Metrics and targets Target to be a net zero carbon emitting business by 2050. → 13.9% of our loans are green loans. Targeting 25% of our portfolio by 2025. 25 For People. For Better. 1 Environmental and social due diligence tool.#26Sustainability Q3 2023 Investor Presentation We are turning risks into opportunities while driving large scale green businesses in East Africa through climate finance. KCB Opportunities → In 2023, we have financed green projects worth KShs. 12.4 billion in Kenya and KShs. 6.1 billion in Rwanda. Great opportunities lie in the manufacturing and infrastructure sectors in renewable energy and energy efficiency. → Sustainable Transport. Impacts → Reduction of emissions. → Reduction of risks and better control of asset quality. → Ability to provide financial inclusion to minority groups who are most affected by climate change. → Fostering eco friendly innovation while stimulating sustainable economic growth. 26 For People. For Better.#27Sustainability Q3 2023 Investor Presentation The Group published its 2022 Sustainability report highlighting the progress we have made in creating impactful shared value KCB 7 KCB Group is a signatory to the United Nations Environment Programme Finance Initiative (UNEP FI), the United Nations Global Compact (UNGC) principles and a founding member and signatory to the Principles for Responsible Banking (PRB 27 SHARED VALUE FOR IMPACT KCB GROUP SUSTAINABILITY REPORT 2022 For People. For Better. For People. For Better. Our Sustainability report summarises the Group's approach to ESG risk management, with additional emphasis on the approach to climate risk mitigation, and the contribution made to developmental impact objectives. Our Sustainability ESG - GPS rating by Risk Insights rose from 2 to 3 supported by increased ESG metrics reported in the 2022 Sustainability Report. The report is available at https://kcbgroup.com/sustainability/ KCB#28Creating shared value Q3 2023 Investor Presentation To create shared value, we leverage our products, policies and programmes to deliver social and economic impact in the markets we operate in. Youth employment through 2Jiajiri 2Jiajiri Impact • • • 100 greenhouses at the Foundation's model farm earning youth participants KShs 19.1 million in sales. Scaled the program to our subsidiaries in Uganda, Tanzania, Rwanda and Burundi reaching 3,100 youth with vocational and entrepreneurship skills while providing 1,046 toolkits to support transition to employment. Aiming to provide business development services for 25,000 MSME enabling them to access KShs 1.5 billion in working capital in the next one year with support from Mastercard Foundation. 28 For People. For Better. 26,415 youth have received training since inception Disbursed over KShs 260M in working capital loans Created over 64,380 and 102,376 direct and indirect jobs KCB#29Creating shared value Q3 2023 Investor Presentation To create shared value, we leverage our products, policies and programmes to deliver social and economic impact in the markets we operate in. 14 ASAL Counties under Mifugo ni Mali program • . We have supported construction of feedlots, livestock markets, value addition and access to markets. We work with farmer producer organisations (FPOs) to build their capacity and avail extension services under the program. Supported 118 farmer-producer organizations reaching 35,400 farmers to increase productivity, access inputs and value addition equipment as well as linkage to markets. Disbursed KShs 103 million to FPOs for the acquisition of value addition equipment. Supported the maintenance & improvement of 76,070 jobs across the various value chains of Livestock, apiculture and blue economy. Supported 21 counties hard-hit by the ravaging drought at a cost of KShs. 150M impacting over 10,000 households. 29 For People. For Better. KCB#30Creating shared value Q3 2023 Investor Presentation To create shared value, we leverage our products, policies and programmes to deliver social and economic impact in the markets we operate in (continued) Scholarship programme 4,657 Scholarships Awarded 2,715 in school Students currently 84% 加 267 Transition to University Tertiary Scholarships Awarded 30 For People. For Better. KCB 谮 99% Secondary completion Rate 537 Secondary Schools Engaged Benefited 4,657 beneficiaries with a cumulative investment of over KShs 1.2B Includes internship through apprentice model through KCB and its partners after graduation. 1,092 scholarships availed in 2023. Targets bright but marginalized students, FGM champions, teenage mothers, girls rescued from early marriages, boys from regions highly affected by cattle rustling, and areas with high poverty indices.#31Q3 2023 Investor Presentation KCB We take pride in having consistently been rated and ranked among the leading financial institutions in the continent based on various parameters. Award Organisation Global Finance - World's Best Bank Awards 2023 Finance Derivative Global Banking and Finance International Business Magazine Brand Finance Global Finance Award Best Bank Kenya Best Responsible Retail Bank Kenya 2023 Best SME Bank Best Sustainable Bank Best CSR Bank Kenya 2023 Best Retail Bank Kenya 2023 Best Digital Wallet Kenya 2023 Best Sustainable Bank 2023 Best CSR Bank Kenya 2023 Best Commercial Bank Most Valuable Banking Brand Safest Bank in Kenya Award Organisation Award Think Business Awards Best Bank in Corporate Social Responsibility Africa Banker Awards African Banker Awards 2023 Think Business Insurance Awards KCB Bancassurance Automotive Industry Awards Best SME Bank Central Africa Regional Bank of the Year - Trust Merchant Bank Overall winner Most Customer-Centric Bancassurance Intermediary Best Bancassurance Intermediary on Digital Applications and Usage Best Bancassurance Intermediary in the Non-Life Insurance Category Best Bank in Auto Finance 2023 31 For People. For Better.#32Q3 2023 Investor Presentation KCB Sustainable Sports sponsorship supporting over 150 individuals to earn livelihoods from sports across volleyball, rugby, motorsport, football, chess, athletics and golf. Volleyball KCB WRC FEEL THE ROAR With KCB Racing Team Nikhil Sachania BANK LAGIC Rugby 32 1 6 in the Kenya Volleyball Federation league after winning the playoff. Represented Kenya in May 2023 Tunisia at the African Club Championship players in the national team. For People. For Better. For People. For Better. Celebrating 70 years of Safari Rally In Kenya Over the years, KCB has invested over KShs. 1.2 billion into WRC which has seen several promising young drivers emerge to compete across the local, regional & international rallies. #1 in Kenya after winning SportPesa Sevens Circuit, Impala Flood lights. No 2 in the Kenya Cup. Only local club which participated in the Safari Sevens having been crowned the Sevens circuit winner. 6 players in the 7s National team 5 players in the 15s National team#33KCB 02 Business Overview > Financial Performance FY 2023 Outlook Appendices For People. For Better. கமா 33#34Q3 2023 Investor Presentation KCB Strong growth in the balance sheet propelled total assets beyond KShs 2 trillion, a first for our region driven by new business lines and the consolidation of TMB. ^ 2 Trillion Balance sheet size, up 65%, 43% from organic growth and a further 22% from the consolidation of TMB. ^1Trillion Net loans crossed one trillion shillings mark, another first in our region. Organic growth of KShs 214B and KShs 75B from the consolidation of TMB. 34 For People. For Better. Customer deposits, 1,656 80% Funding Utilization ☑ 2,100 Net loans, 1,048 38% Govt securities, 371 Short term funds, 530, 291% 34% Equity, 219 17% Borrowings, 70 Fixed assets, 45 35% 12% Other liabilities, 147 45% Other assets, 106 47% Amounts in KShs Billion#35Q3 2023 Investor Presentation Significant momentum in balance sheet growth across all subsidiaries led by KCB Bank Kenya, Tanzania and Uganda. KCB 33.4% Proportion of assets in subsidiaries outside of KCB Bank Kenya, up from 26.4% in Q3 2022 13.3% TMB's contribution to total assets. 35 For People. For Better. Total assets distribution KCB Kenya 1,407 Non-KCBK 700 280 YoY Change ■KCB Kenya 50% 33%* 151 TMB 98 NBK 8% 80 BPR 13% KCB Tanzania 48% 51 KCB Uganda 70% 24 16 KCB S Sudan 21% KCB Burundi 20% *YTD growth Amounts in KShs Billion#36Q3 2023 Investor Presentation KCB 2.7x increase in total assets in subsidiaries outside Kenya driven by strong organic growth in Tanzania & Uganda and the consolidation of TMB. KShs 548 billion Total assets in subsidiaries outside Kenya. 36 For People. For Better. Total assets in subsidiaries outside Kenya. Quarterly trend in 2023 YoY growth 170% 548 548 469 522 Q123 Q2 23 Q3 23 280 32% 268 203 Q3 22 Q3 23 | International subsidiaries (Excl TMB) ■TMB Amounts in KShs Billion#37Q3 2023 Investor Presentation We availed more financing to households and businesses in key sectors of the economy such as transport & communication, trade and manufacturing in 2023. KCB Ʌ38.6% Growth in gross loans. Organic and inorganic growth accounted for 27% and 11% increase respectively. 7.2% TMB's contribution to net loans and advances. 37 For People. For Better. Gross loans growth 822 197 19 101 1,139 28% ■LCY ■FCY 72% Q3 22 Corporate Retail Mortgage Q3 23 Amounts in KShs Billion#38Q3 2023 Investor Presentation Sustained drop in NPL ratio driven by improvement in tourism and transport sectors. NPL stock increase due to downgrades in the period and FX impact. Group NPL stock evolution 149.3 161.2 187.0 Group YoY NPL evolution 21 44 15 187 20 18.2% 17.3% 16.4% 10 149 KCB Q3 22 FY 22 Q3 23 Q3 22 TMB Impact FX Downgrade Recoveries Write off Q3 23 INPL ratio Gross NPL (KShs B) Amounts in KShs Billion 38 For People. For Better.#39Q3 2023 Investor Presentation KCB YoY decrease in NPL ratio supported by improvement in corporate banking in KCB Bank Kenya and drop in NBK, South Sudan, Tanzania and Burundi. NPL ratios per segment 3.5% Checkoff NPL ratios per subsidiary 24.4% 11.2% Q3 22 FY 22 Q3 23 28.4% 20.8% SME & Micro Mortgage Corporate 18.8% 11.9% 6.9% 5.7% 3.1% Q3 22 Q3 23 1.7% 0.8% NBK KCB Bank Kenya TMB BPR Bank KCB Bank Uganda KCB Bank South Sudan KCB Bank Tanzania KCB Bank Burundi 39 For People. For Better.#40Q3 2023 Investor Presentation Contribution to the stock of non-performing loans is concentrated within a few sectors as legacy NPLs in tourism and transport sectors continue to decline. KCB 32.0% Share of gross loans in personal and household sector. 40 For People. For Better. Sectoral contribution to Gross loans and NPL stock Financial Services Mining and Quarrying Energy and Water Agriculture Tourism, Restaurant and Hotels Transport and Communication Building and Construction Trade Real Estate Manufacturing Personal/Household 32.0% 1.7% 1.3% 1.7% 0.4% 3.4% 3.9% 3.4% 3.8% 3.5% 2.6% 7.2% 8.0% 9.1% 9.9% 9.3% 10.0% 13.3% 16.7% 15.3% 24.9% 18.6% Share of gross loans Share of NPL stock#41Q3 2023 Investor Presentation We continue to take prudent measures on the non-performing loan book aimed at building and maintaining adequate coverage both from provisions and securities held. The non-performing loan book has full coverage from cash provisions and collateral held. 41 For People. For Better. Coverage ratios IFRS Coverage Regulatory Coverage 116.6% 106.1% 104.5% 102.2% 39.3% 68.1% 39.5% 59.9% 65.0% 62.9% 46.2% 48.5% Q3 22 Q3 23 ■Provisions Q3 22 Additional cover provided by collateral Q3 23 KCB#42Q3 2023 Investor Presentation All subsidiaries except for NBK are compliant with core and total capital requirements and are adequately capitalized to drive growth of risk weighted assets. NBK below core and total capital adequacy ratios by 3.6% and 2.9% respectively. Ratios impacted by loss registered in 2023. Management exploring options to correct this position. Core Capital Adequacy Ratios 4.0% KCB Group KCB Bank Kenya 0.3% 4.0% 2.1% 10.5% 10.5% 10.5% 10.5% Q3 22 Q3 23 Q3 22 Total Capital Adequacy Ratios Q3 23 KCB Group 3.6% 14.5% KCB Bank Kenya 3.3% 2.5% 0.4% 14.5% 14.5% 14.5% Q3 22 Q3 23 Q3 22 Q3 23 Minimum statutory ratio Headroom 42 For People. For Better. KCB#43Q3 2023 Investor Presentation KCB Sustained organic growth in core capital in KCB Bank Kenya from profits in 2023. Thin buffers are as a result of a faster growth in risk weighted assets driven by lending in the period. Strong growth in core capital projected for FY 2023. 100% of net earnings for the period to be eligible as core capital after the results have been audited in FY. Projected minimum core capital headroom FY 2023: 200bps KCB Bank Kenya Core Capital 108.7 95.9 101.2 94.1 92.3 86.0 FY 2024: 400bps FY 2025: 500bps Q2 22 Q3 22 FY 22 Q1 23 Q2 23 Q3 23 43 For People. For Better. Amounts in KShs Billion#44Q3 2023 Investor Presentation The drop in capital ratios has not impacted lending in KCB Bank Kenya as the buffers remained more than adequate to sustain our growth trajectory. Our risk management framework ensures that we always match our appetite to our capital both on an ongoing basis and under stress scenarios. 44 For People. For Better. Quarterly growth of core capital vs risk weighted assets in KCB Bank Kenya 109 a 96 92 1,035 86 22 913 101 94 964 896 879 938 819 848 834 792 760 725 Q2 22 Q3 22 FY 22 Risk weighted assets Q1 23 Q2 23 Q3 23 Max risk weighted assets --KCB Kenya core capital KCB Amounts in KShs Billion#45Q3 2023 Investor Presentation Customer deposits increased to KShs 1.7 trillion, driven by organic growth in demand and term deposits in the existing businesses and the consolidation of TMB. Ʌ79.6% Increase in customer deposits, 54% from organic growth and 26% from the consolidation of TMB. 14.4% Contribution to total customer deposits from TMB 45 For People. For Better. Growth in customer deposits (KShs B) 168 176 396 Deposits by type Q3 23 13% 60% 1,656 23% 922 4% ■Demand Savings Term Call Q3 22 Demand Term Savings Call Q3 23 Q3 22 Deposits mix Retail, 49% Corporate, 51% LCY, 68% FCY, 32% 66% 6% 20% 8% KCB#46Q3 2023 Investor Presentation KCB Decline in net interest margin due to increased cost of funds as a result of the high-interest-rate environment. Rollout of risk-based pricing to support appropriate funding/lending spread. 46 Loans and government securities Yields vs cost of funds Interest rates trend 10.0% Assets yield Sep 22 Dec 22 Sep 23 9.6% 371 SOFR 1.5% 3.0% 5.2% Kenya Interbank 5.6% 6.5% 12.4% 277 7.0% NIMS 6.3% 91 day T-Bills Kenya 8.9% 9.4% 14.5% 1,048 759 Burundi 3.5% 3.5% 5.5% 3.4% 3.0% COF Rwanda 6.9% 7.3% 8.2% Tanzania 3.0% 3.6% 6.0% Q3 22 Q3 23 Uganda 10.4% 10.5% 10.0% Government securities Q3 22 Q3 23 Loans and advances Amounts in KShs Billion For People. For Better.#47Q3 2023 Investor Presentation We delivered a strong sustainable growth in revenue from new business lines, deepening of digital channels and market leading customer value propositions. ^27% Increase in revenue driven by interest income from customer loans & government securities, NFI growth from trade finance & digital transactions and the impact of consolidation of TMB. Interest income From loans, 81.9 39% Interest expense Deposits, 27.8 56% Interest expense Deposits & Placements 11.0A 194% Other income, 6.1 17% Total income 117.3 Forex income, 8.2 (2%) Lending fees, 8.1 4% KCB 47 ^3x Increase in trade finance book to KShs 477 billion For People. For Better. Interest income Govt securities, 29.8 23% Service fees, 20.0 119% Amounts in KShs Billion#48Q3 2023 Investor Presentation KCB Growth in operating costs driven by exceptional cost items from the consolidation of TMB, provision for NBK court ruling and staff rationalization program. Growth in other operating costs driven by customer acquisition activities and investments in technology. 48 For People. For Better. 46% 2.7 0.6 0.3 44.0 41.6 6% 60.8 16.8 Q3 22 Depreciation Staff costs Other opex Q3 23 Normalized One off/execptional costs* Q3 23 Total opex *TMB impact, provision for NBK court ruling and staff rationalization program. Amounts in KShs Billion#49Q3 2023 Investor Presentation Our strong growth in pre-provision operating profits support our resolve to build loan loss cash provisions without impacting shareholder value. 118% Increase in provisions charge in 2023 to build up coverage for downgraded facilities and offset impact of currency depreciation for USD denominated loans in Kenya 12% Loan loss provision expense (KShs B) Earnings per share (KShs) 12.75 15.8 12.64 118% 5.6 7.3 6.1 3.0 Growth in pre-provision 2.2 operating profit to KShs 56B 4.1 2.1 2022 2023 Q3 22 Q3 23 49 For People. For Better. Q1 Q2 Q3 KCB#50Q3 2023 Investor Presentation Record performance in the third quarter saw net earnings for the nine months in 2023 increase to KShs 30.7 billion. KCB Fully recovered lost ground in 2023. Record performance in the third quarter more than offset the drop registered in the first half of the year resulting in a year-on-year increase in net earnings. 50 For People. For Better. KCB Group quarterly net earnings Nine months net earnings 30.6 30.7 14.6 34% (1%) 10.9 9.9 9.8 9.8 (36%) 6.3 Q1 Q2 Q3 Q3 22 Q3 23 2022 2023 Amounts in KShs Billion#51Q3 2023 Investor Presentation KCB Strong growth in profitability achieved across all our subsidiaries more than offset the impact of loss at NBK netting an overall growth in net earnings for the Group. 3.6x growth in net profits at KCB Investment Bank to KShs 93M. Net loss of KShs 3.0 billion at NBK in Q3 2023 due to legal award, increased cost of borrowings and provisions. 51 For People. For Better. Net profit contribution per subsidiary KCB Kenya 23,982 Non-KCBK 12,110 YoY Change ■KCB Kenya (9%) N/A 1,999 TMB 1,986 KCB Tanzania 157% 1,060 BPR 22% 898 KCB Uganda 129% 5,240 499 KCB S Sudan 79% 428 KCB Burundi 5% Amounts in KShs million Numbers include the holding company balances which are consolidated as part of the overall Group position KCBBIL* 18% * KCB Bancassurance Intermediary Limited#52Q3 2023 Investor Presentation 3x growth in net earnings from subsidiaries outside Kenya to KShs 12B driven by strong organic growth in Tanzania, Uganda & South Sudan and the consolidation of TMB. KCB Subsidiaries outside Kenya net earnings Quarterly net earnings 206% 3.6 3.6 191% 215% 4.5 Nine months net earnings 11.7 3.8 1.4 1.2 1.2 205% Q1 Q2 Q3 Q3 22 Q3 23 2022 2023 Amounts in KShs Billion 52 For People. For Better.#53Q3 2023 Investor Presentation 33% quarter on quarter increase in net earnings in KCB Bank Kenya driven by strong growth in revenue and an easing of cost of funds. Strong performance in the third quarter helped to reduce the year-on- year drop to 9% in Q3 from 16% in half year. KCB Bank Kenya quarterly net earnings 2% 9.8 10.0 (9%) 8.3 (23%) 8.2 7.5 6.4 53 For People. For Better. Q1 Q2 Q3 ■2022 2023 KCB Amounts in KShs Billion#54Q3 2023 Investor Presentation High return on equity across subsidiaries with the Group ROE improving to 19.9% from 15.9% in H1 2023 on improved profitability. KCB Banking subsidiaries 43.8% 19.9% 21.5% 54 31.4% 29.6% 21.2% 21.4% 20.1% 18.7% Non- banking subsidiaries 70.4% 68.3% 22.7% 16.4% 15.1% 26.3% 22.5% 15.9% 8.8% 63.4% KCB S Sudan TMB KCB Tanzania KCB Uganda KCB Kenya KCB Burundi BPR (30.2%) NBK KAM KCBBIL KCBIB Q3 22 Q3 23 For People. For Better. TMB Acquired in December 2022. KAM (KCB Asset Management) and KCBIB (KCB Investment Bank) re-positioned in 2023. KCBBIL - KCB Bancassurance Intermediary Limited.#55KCB 03 Business Overview Financial Performance > FY 2023 Outlook Appendices For People. For Better. 55#56Q3 2023 Investor Presentation KCB On track with our FY 2023 guidance supported by improved performance in Q3. Asset yield impacted by NPL book with slow drop in cost of funds exacerbating the impact on NIMs. Growth of CASA deposits on the back of improved liquidity in the market to support further reduction in cost of funds and improvement in net interest margins. Outlook NFI Ratio 35%-37% 36.1% Cost/Income ratio 51.9% 52%-54% NPL ratio Cost of risk Cost of funds NIMS 6.3% Asset yield Loan growth Deposit growth Q3 23 Actual 2023 Projection ROE 56 For People. For Better. 14%-16% 16.4% 2.0%-2.4% 2.2% 3.0%-3.3% 3.4% 7.4%-7.6% 9.7% 10.4%-10.9% 10%-15% 38.1% 12%-18% 79.6% 17%-19% 19.9%#57KCB 04 Business Overview Financial Performance FY 2023 Outlook > Appendices For People. For Better.#58Q3 2023 Investor Presentation KCB Overview of key financial ratios KCB GROUP Q3 2023 Q3 22 FY 22 H123 KCB Kenya KCB Group 23.3% 23.0% 15.9% Return on average equity 21.2% 19.9% 45.1% 45.7% 55.3% Cost to income 38.7% 51.9% 18.2% 17.3% 17.4% Gross NPL to gross loans 18.8% 16.4% 61.4% 60.7% 59.7% NPL regulatory coverage 61.9% 62.9% 33.4% 31.8% 31.1% Debt to equity 46.1% 32.1% 33.2% 33.3% 37.7% Non funded income (NFI) to total income 34.2% 36.1% 25.8% 25.2% 27.7% Mobile NFI to total fees and commissions 44.8% 25.1% 3.0% 3.1% 3.5% Cost of funds 3.9% 3.4% 7.0% 7.0% 6.1% Net interest margin 6.6% 6.3% 1.4% 1.7% 2.2% Cost of risk 2.0% 2.2% 82.3% 76.2% 65.6% Net loans to deposits ratio 65.1% 63.3% 21.7% 19.1% 19.4% Government and other securities to total assets 20.1% 17.7% 16.4% 27.8% 32.1% Growth of net loans and advances 25.5% 38.1% 7.4% 35.6% 61.9% Growth of customer deposits 64.2% 79.6% 58 For People. For Better.#59Q3 2023 Investor Presentation KCB Summary statement of financial position as at 30 September 2023 KCB Group KCB Bank Kenya KShs Billion Y-O-Y Q3 22 Q3 23 Q3 22 Q3 23 Change Y-O-Y Change Cash and balances with central bank 73.1 104.0 42% 60.0 74.2 24% Balances with other institutions Investments in Govt & other securities 62.4 426.0 583% 25.5 226.3 786% 277.1 371.3 34% 191.8 282.1 47% Net loans and advances 758.8 1,047.9 38% 581.0 729.3 26% Fixed assets 33.3 44.9 35% 22.5 24.7 10% Other assets 71.6 105.5 47% 58.6 70.2 20% Total assets 1,276.3 2,099.5 65% 939.6 1,406.9 50% Customer deposits 922.3 1,656.4 80% 682.0 1,119.5 64% Balances due to other banks 32.7 36.1 10% 13.4 10.7 (20%) Long-term debt 62.7 70.2 12% 53.9 63.2 17% Other liabilities 68.4 110.7 62% 48.1 76.2 58% Total liabilities 1,086.1 1,873.4 72% 797.4 1,269.7 59% Shareholders' equity 187.8 218.8 17% 142.2 137.2 (3%) Total liabilities and equity 1,276.3 2,099.5 65% 939.6 1,406.9 50% 59 For People. For Better.#60Q3 2023 Investor Presentation Summary statement of Profit or Loss for the year ended 30 September 2023 KCB KCB Group KCB Bank Kenya Y-O-Y KShs Billion Q3 22 Q3 23 Q3 22 Q3 23 Change Y-O-Y Change Interest income Interest expense 83.5 113.9 36% 61.0 74.8 22% (21.9) (39.1) 78% (15.2) (27.6) 82% Net interest income 61.6 74.9 22% 45.8 47.1 3% Foreign exchange income 8.4 8.2 (2%) 6.3 5.6 (11%) Net fees and commissions 17.0 28.1 66% 12.6 15.8 25% Other income 5.2 6.1 17% 3.5 3.1 (11%) Non-funded income 30.6 42.4 39% 22.3 24.5 10% Total Income 92.1 117.3 27% 68.2 71.6 5% Total operating expenses (41.6) (60.8) 46% (25.6) (27.7) 8% Loan impairment (7.3) (15.8) 118% (5.5) (11.4) 108% Profit before tax 43.3 40.6 (6%) 37.1 32.5 (12%) Tax expense (12.7) (9.9) (22%) (10.8) (8.5) (21%) Profit after tax 30.6 30.7 26.3 24.0 (9%) 60 For People. For Better.#61Q3 2023 Investor Presentation Key operating data Q3 2022 FY 2022 H12023 Q3 2023 KCB Footprint Branches 498 603 605 598 Number of Customers (Million) 31 32 33 33 ATMs¹ 1,172 1,270 1,315 Agency outlets² 21,176 21,480 21,615 1,318 25,094 POS/Merchant outlets² Total number of employees KCB Share Information Earnings Per Share (KShs) Dividend Per Share (KShs)³ Number of issued shares (Million) 8,634 7,354 8,538 8,299 8,803 11,098 11,877 12,067 12.64 12.71 9.99 12.75 1.00 2.00 3,213 3,213 3,213 3,213 Number of shareholders 193,430 193,615 193,734 194,300 Period-end share price (KShs) 41.45 38.10 Market capitalization (KShs Billion) 133.2 122.4 29.30 94.1 20.85 70.0 FX Rates KShs/US$ exchange rate (period-end) 120.73 123.37 140.52 148.10 Notes 1 Includes 533 partner ATMs which KCB customers have access to at no extra charges 2 Active agents and merchants 3 Interim and proposed final dividend for 2022 amounting to KShs 2.00 per share 61 For People. For Better. KCB#62KCB Footprint Branches ATMs Agency outlets POS/Merchant outlets Total number of employees of which:FTE PTE Q3 2023 Investor Presentation KCB KCB regional footprint and key macros as at 30 September 2023 Kenya¹ Tanzania South Sudan Rwanda Uganda Burundi DR Congo 298 16 15 143 13 6 107 575 18 14 68 15 8 87 19,805 475 48 711 403 156 3,496 6,529 640 29 233 243 41 584 8,198 330 186 1,113 310 157 1,772 5,740 313 186 1,107 284 153 1,772 2,458 17 6 26 4 Operating environment GDP growth 2022 4.8% 4.7% 0.5% 8.2% 6.4% 1.8% 8.9% 2023 projection 5.3% 5.2% 3.5% 6.2% 4.6% 3.3% 6.7% 2024 projection 5.7% 6.1% 4.2% 7.0% 5.7% 6.0% 4.7% Inflation rates Sep-22 9.2% 4.8% (8.7%) 23.9% 10.0% 20.9% 9.0% Sep-23 6.8% 3.3% 3.8% 18.4% 2.7% 26.8% 29.7% Movement in currency/USD - Q3 2023 (20.0%) (7.5%) (51.7%) (13.5%) (1.1%) (37.9%) (23.6%) Central Bank rates Sep-22 8.3% 5.0% 15.0% 6.0% 9.0% 7.0% 7.5% Sep-23 10.5% 5.0% 15.0% 7.5% 9.5% 10.0% 25.0% Current account balance/GDP2021 (5.2%) (3.4%) (9.5%) (11.2%) (8.3%) (12.4%) (1.0%) 2022 (5.1%) (5.4%) 9.8% (9.8%) (8.2%) (15.6%) (5.2%) 2023 projection (4.9%) (5.1%) 2.3% (12.7%) (7.1%) (18.7%) (6.0%) Notes 1 Kenya footprint are consolidated data for KCB Bank Kenya and NBK. 62 For People. For Better.#63III Company information Q3 2023 Investor Presentation KCB Registered office KCBGroup Plc Kencom House Moi Avenue Po Box 4840000100 Nairobi, Kenya Contact information KCB Investor Relations [email protected] www.kcbgroup.com Stocklisting Primary Nairobi Securities Exchange Cross listing Dar-es-Salaam Stock Exchange Uganda Securities Exchange Rwanda Stock Exchange Auditors PricewaterhouseCoopers LLP PwC Tower Waiyaki Way / Chiromo Road P. O. Box 43963 - 00100 Nairobi, Kenya Share registrars Image Registrars Limited 5th Floor, Absa Towers Loita Street P. O. Box 9287 - 00100 Nairobi, Kenya [email protected] 63 For People. For Better.#64KCB Thank You For People. For Better. KCB Investor Relations [email protected]