#1Co-operative Bank of Kenya Ltd Group financial results | Q32021 We are You#2Key Highlights We are Growing | We are Resilient | We are Agile#3A Transformational Bank Largest Co-operative Bank in Africa 15 Million Members 9.0 Million Direct Account Holders Successful Universal Banking Model, Increased Dominance in Kenya Growth, Resilience and Agility in a pandemic environment Kshs.593 Billion in Total Assets 4542 Skilled, Motivated Staff Members GO BANK#4We are Growing: Creating Value Continued focus on optimizing opportunities to grow; Asset, liability & Non funded income through an innovative array of financial solutions. Total Assets 16.0% Loan Book 7.8% Customer Deposits 12.0% Government securities 35.9% Shareholders funds 15.9% Net interest income 21.3% Total Operating Income 19.2% Non-Interest income 15.6% Proactive Regulatory compliance including measures put in place to mitigate the adverse economic impact due to the ongoing pandemic Investment in E-credit . Strong penetration; disbursement of Kshs.5.7 Billion per month • Good yield of 8% flat. • Short term tenor of maximum 90 days. . Consumer based that is on salary checkoff deductions at source. • Low credit risk G GO BANK 4#5We are Resilient: Protecting Value G GO BANK Profitable Bank Kshs. 16.5 Billion Strong Capital Buffers Proactive Enterprise Risk Management Framework. Proactive provisioning for NPL: Kshs. 6.0B in Q32021 (+50% YoY growth) 818 Continuous support to our customers, staff and all our other stakeholders. Up to Kshs.49 Billion loan book was restructured. Low relative exposure in high-risk sectors like Tourism (1%) and Manufacturing (2%). Up to 50% of our loan Book is in Consumer banking which is performing well. Optimal risk spread with a 36% growth on T-bills and T-bonds. Continued gains from our institutionalized Transformation seeking efficiency and growth. Key ongoing transformation initiatives aimed at a quality loan book are; ● ● Credit Review Implementation Project "Project Kilele" with McKinsey &Co. Decentralization of loan portfolio management enabling Project 3C (Connect, Collect and Cure).#6We are Agile Fast | Adaptable Operational efficiency with 93% of our transactions in alternative channels. We have been able to offer uninterrupted services on these channels. Staff Productivity • Supporting new ways of working. . +25% Pre-provision return per staff. • Enhanced digitization of internal bank processes and engagement platforms, to ensure contactless capabilities for both customers and staff. . • New Core Banking Platform implementation on track. Expected Key benefits include enhanced; Business agility & Innovation. • Customer experience • • Cost management Analytics • Process automation & Digitization Proactive Regulatory compliance including measures put in place to mitigate the adverse economic impact due to the ongoing pandemic GO BANK#7Macroeconomic Highlights • Short Term Interest Rates Exchange Rate • Inflation Rate Private Sector Credit Growth South Sudan Macro Environment#8Economic Growth ❖ Kenya's economy recorded a rebound in several sectors in the 2H 2021 compared to 2H 2020. REAL GDP GROWTH RATE, % Q1 2020 Q2 2020 Q1 2021 Q2 2021 1H 2020 1H 2021 Agriculture 4.3 4.9 -0.1 -0.9 4.6 -0.5 Industry 4.8 -0.3 4.4 8.5 2.2 6.4 Manufacturing 2.2 -4.7 1.5 9.6 -1.3 5.6 Electricity and Water Supply 1.5 -4.7 2.0 5.2 -1.6 3.6 Construction 10.4 8.2 7.9 6.5 9.3 7.2 Services 4.2 -7.1 2.2 16.8 -1.5 9.5 Wholesale and Retail Trade 4.9 -4.2 7.4 9.5 0.3 8.4 Accommodation and Restaurants -8.1 -56.8 -48.8 9.1 -32.4 -19.8 Transport & storage 2.2 -16.8 -8.7 16.9 -7.3 4.1 Information & Comm 5.6 2.6 16.1 25.2 4.1 Financial and Insurance 7.5 4.4 9.4 9.9 6.0 Real Estate 5.4 4.6 4.5 4.9 5.0 9.7 4.7 Education 1.8 -22.4 10.0 67.6 -10.3 38.8 Health 7.4 9.8 9.1 10.0 8.6 9.6 Overall Real GDP Growth 4.4 -4.7 0.7 10.1 -0.2 5.4 BANK GBT The easing of COVID-19 mitigation measures, especially in Q2 2021 drove up economic activity in education, trade, manufacturing, ICT and transport. In the remainder of 2021, we expect continued recovery across most sectors and regular Government payments to support this gradual growth. 20.7 However, current drought and delayed onset of the short rains poses risk to agricultural output and exports while the early onset of elections campaigns is unwelcomed.#9Percentage 2 3 4 5 76 Short Term Interest Rates The money market remained fairly-stable in the nine months to September 2021. 00 8 10 9 SHORT TERM INTEREST RATES Sep-20 Oct-20 Nov-20 Dec-20 91-Day Tbill Jan-21 Feb-21 Mar-21 Apr-21 May-21 364-days Tbill CBR (RHS) Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Interbank Rate BANK GBT The interest rate for 91-days, 182-days and 364- days paper averaged 6.9%, 7.5% and 8.4% between January to September 2021 compared to 6.9%, 7.5% and 8.7% in a similar period last year, respectively. The money market is still liquid. We thus expect no significant movement in interest rates into the end of the year.#10Exchange Rate The KES has weakened against the USD to an average foreign exchange rate of 111.4 in early November 2021. 111.5 110.5 109.5 108.5 107.5 106.5 105.5 USD/KES EXCHANGE RATE Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Exchange rate 108.4 108.6 109.3 110.6 109.8 109.7 109.7 108.0 107.4 107.8 108.1 109.2 110.2 111.0 BANK GBT The market has recorded reduced inflows of US dollars as well as increased demand by importers following the steady rise in price of crude oil and other commodities. For example, oil import bill is today 70% higher than same period last year due to rise in prices. Similarly, all other imported goods are at least 10% higher in prices today compared to Q3 2020. CBK has however done market intervention on days of significant volatility. However, in the months of November and December 2021, we expect further pressure on KES due to demand by importers for Christmas holiday purchases.#11Percentage 12.0 10.0 8.0 Inflation Rate Overall inflation remained elevated at an average rate of 6.2% for the period January to October 2021 up from 5.2% in a similar period last year. 18.0 16.0 14.0 TREND IN INFLATION RATE Into the year end, inflation rate is forecast to remain high (but within the 7.5% band) driven by high crude oil prices, rising vegetable prices and imported inflation on account of high global commodity prices. 6.3 6.4 6.6 6.9 6.5 5.3 5.6 5.7 5.8 5.9 5.8 5.9 6.0 4.8 4.2 4.0 2.7 2.3 2.6 2.9 2.4 2.2 2.3 2.4 2.4 2.6 2.6 2.7 2.2 1.7 2.0 0.0 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Food Inflation NFNF Fuel Inflation Overall Inflation BANK GBT#12Growth (%) 6.0 Private Sector Credit Growth GO 調 BANK Growth in private sector credit in the period January to August 2021 (available data) remained moderate, at an average rate of 7.7% compared to 8.1% in in a similar period last year. 12.0 PRIVATE SECTOR CREDIT GROWTH (YOY, %) 9.7 9.4 10.0 8.2 8.4 7.6 7.7 8.0 7.7 7.7 7.1 6.7 7.0 Most of the lending has been to households and working capital for enterprises. We project overall credit growth to remain on average around the current level into the close of December 2021. 4.0 2.0 0.0 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 6.0 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21#13South Sudan GÐ BANK ✰ Oil prices have recovered to pre-pandemic levels, following the steady rise in international oil prices to about $83 a barrel. South Sudan's fiscal position is expected to improve into Q4 2021 given the increasing oil revenues. Oil revenue finances 85% of the government budget. ❖ The country is expected to continue growing its portfolio of international support. For example, South Sudan has just been allocated $334 million by the IMF in Q4 2021 as part of the Special Drawing Rights (SDRs) which has resulted in more funds for budgetary support. Its current World Bank Public Financial Management reform program should create opportunities for the achievement of faster, more inclusive growth in the near and medium term. ❖ The Central Bank of South Sudan and the Ministry of Finance & Planning, in late September 2021, signed a memorandum of understanding aimed at building economic cooperation between them. We expect this to address the public financial management reforms process better in 2022. ❖ However, some downside risks in Q4 2021 include; • Further breach to the peace accord would jeopardize gains achieved with the development partners. A surprise significant fall in oil price would pose budget execution challenges to the government. Continued civil unrest following the military coup in the neighboring Sudan may disrupt oil export flow.#14Covid-19 Recovery Support As a leading financial institution, we continually work closely with our stakeholders including regulators and policy makers to drive economic recovery. Our priority remains to support a post pandemic economy that is resilient, inclusive and more sustainable. . Co-ordination within the bank. ✓ Business Crisis Management Team ✓ Multidepartment emergency response team Uninterrupted provision of financial services. Proactive policies, procedures and related controls to ensure business continuity. Proactive risk assessment. Stakeholder engagements. KOL GO BANK#15Strategic Focus 2020-2024 Strategic Themes ● Aggressive deepening of our dominance in the Kenya Market Dominant provider of financial services to the Co-operative Movement in Kenya and the region. Customer experience that is seamless across all our touch points. Operating efficiency driven by digitization, innovative products & Processes, efficient business models, and staff productivity. • Optimal Enterprise Risk and Compliance in the dynamic environment ● Operate as a responsible corporate citizen M#16Group Structure Co-operative Bank of Kenya Group Coop Holdings Coop Society Ltd (64.56%) Minority Shareholder (35.44%) Co-operative Bank Of Kenya Ltd Co-operative Bank of South Sudan Ltd (51%) Co-op Consultancy and Bancassurance Intermediary Ltd (100%) Co-op Trust Investment Services Ltd (100%) Kingdom Securities Ltd (60%) Kingdom Bank Ltd (90%) Co-operative Insurance Society Ltd (33.41%) Co-op Bank Fleet Africa Leasing Limited (25%) GO BANK#17A Successful Universal Banking Model Retail and Business Banking (Kshs. 200.6 Billion Loan Book) Co-operatives Banking (Kshs. 28.7 Billion Loan Book) Et G Funds under management (Kshs. 187.1 Billion & (Q32020 Kshs. 123.7 Billion) M $ Consultancy and capacity building 3026 ☑ ☑ DOD Stock Brokerage Share trading services Online Share Trading C Corporate Government & Institutional Banking (Kshs. 103.3 Billion Loan Book) Leasing: Coop Bank Fleet Africa Ltd Insurance Brokerage 20% (YoY) growth in Insurance Commission 17#18A 177 Branches 18.6K Diaspora Banking Customers 589 ATMs : Our Presence 9.0M Account holders 5.3M Mcoopcash Customers 24hr Contact Centre 66K+ Internet banking Customers 479 Sacco Front Offices Branch network 23K+ Co-op Kwa Jirani Terminals 4542 Staff GO BANK 111#19Key Pillars "Soaring Eagle" Transformation Initiatives Growth Efficiency Branch Transformation: Customer Experience & Retail SFE Sales Force Effectiveness Shared Services & Digitization 'The Digital Bank' Staff Productivity MSME Transformation NPL Management & Credit processes Cost Management Data Analytics BANK GO 調#20"Soaring Eagle" Transformation: Key achievements GÐ BANK E-Credit Focus: Kshs.173.5B Disbursed so far 1.Short term tenor of maximum 90 days. 2.Good yield of 8% flat. 3.Average disbursement of Ksh.5.7B per month. 4.Consumer Based that is on salary checkoff deductions at source. 5.Low credit risk ✓ Average queue time of 8.6 Minutes. ✓ 93% transactions on alternative channels. Proactive credit management through; ✓ Continuous Process improvement for enhanced End to End Turn Around Time on all loan applications. ✓ Proactive early delinquency & NPL management through Connecting with our customers, collecting and offering customer centric solutions. ✓ Credit Review Implementation Project “Project Kilele" MSME Transformation: 1.14,665 trained customers 2.139K+ on boarded on the new packages (Gold, Silver, Bronze) 3.Supply chain financing: 91 Anchors and 512 counter parties to date. 4. Non-Financial Services (NFS): 181 NFS clinics, 13 Networking forums, 3 international business trips. 5. Government of Kenya Credit Guarantee Scheme 6.Kshs. 8.25 Billion MSME financing from IFC 111#21"Soaring Eagle" Transformation: Key achievements Sales Force Effectiveness for CIBD and Cooperatives; ✓ Sector focus; Tailor-made go to market strategies for different sectors. ✓ Scale up value chain business. ✓ Leasing- Partnership with coop fleet to offer assets on lease ; ✓ Akili Kali partnership; Fintech engagement challenge for digital co-operatives ✓ Digitization: Core Banking System (ongoing), Omnichannel, Business Process Management System, Master Card. ✓ Advanced data analytics - Successful credit score redevelopment ✓ Staff productivity and enablement of Work From Home (WFH) - MS Teams, VPN, soft phone. GO BANK#22Credit Review Implementation Project "Project Kilele" GO BANK E2E assessment of credit risk management practices Comprehensive diagnostic review on each area of credit risk, including: Credit risk management framework with a key focus on risk governance, credit risk appetite, origination and underwriting process, credit approval process, credit scoring/rating models, and pricing ✓ Portfolio management, monitoring and reporting procedures ✓ Non-performing loan management, collections, and recovery processes Strengthen portfolio assessment ✓ Stress-testing of existing work done on portfolio analysis and risk frameworks Enhance Collections ✓ Assess client level (and sub-sector) strategies that have been developed and suggest improvements Quantify impacts of work done - Improvements on work done and potential heuristics that can be applied to enhance PD, LGC, and ECL modeling incorporating sector expertise ✓ Diagnostic of collections area (including recoveries and restructuring) ✓ Segment by segment re-design ✓ Future roadmap for collections function#23Credit Review Implementation Project "Project Kilele" Key Achievements; ✓ Underwriting process optimization ✓ Reclassification of sectors and sub-sectors ✓ NPV (Net Present Value) Restructuring Model Early Warning System Enhanced Strategic Collections ✓ Client level action Plans ✓ Roll out of new Application For Facility forms. ✓ Improving Turn Around Time for facilities. ✓ Auto disbursements. ✓ Business Process Management System optimization ✓ Training for Frontline staff and service teams done to enable onboarding new customers with the new sectors and subsectors. ✓ Early Alert meetings at a segment level with the new guidelines. ✓ NPV (Net Present Value) Restructuring Model deployed ✓ Entire corporate and Co-operative book has been reclassified into the new Sector classification to enhance quarterly stress testing of customers by sector and subsector. ✓ Enhanced Client level action Plans to ensure regular and comprehensive update and actioning. ✓ Escrow buildup by our customers. GÐ BANK плити 23#24Driving 8 SUSTAINABLE DEVELOPMENT GOALS Sustainable Business: ESG Integration As a leading financial institution, our sustainability agenda is deeply embedded into our core business, allowing us to offer financial services in a responsible & sustainable manner. Our approach therefore aims to balance economic, social, environmental & governance pillars to harness sustainable opportunities and manage risk. We have adopted the Kenya Bankers Association Sustainable Finance guiding principles and minimum standards in totality. Sfi economic. social. environment. Sustainable Finance Initiative ECONOMIC "We create channels for sustainable economic opportunity by ensuring strong financial performance and financial inclusivity" SOCIAL "The bank operates as a responsible corporate citizen by investing in staff welfare, co- operatives sector support & community engagement. ENVIRONMENTAL "We run our business in a way that ensures that our growth is sustainable in the long term and leaves minimal adverse impact on natural resources and the environment for the future generations." GOVERNANCE "Sustainability through Policy and Governance in Co-op Bank is deep rooted and is driven from the Board level Strategic theme no.6: To operate as a good corporate citizen#25Driving Sustainable Business CO SUSTAINABLE DEVELOPMENT GOALS GÐ BANK Economic Value ✓ Local Economic Impact Ksh.306 Billion Loans & Advances О Ksh.15 Million member Co- operative Movement Banking. Ksh.193 Billion Government Securities. О 93% Local Suppliers Financial Inclusion -Universal Banking Model. ✓ Ksh.4.9 Billion Taxes Governance ✓ Progressive governance framework ✓ Business Ethics ✓ Proactive Environmental & Social Policy ✓ Strategic Organizational Structure ✓ Compliant Reporting & Disclosure ✓ Board structure, policies & procedures Social Impact ✓ Co-op Consultancy & Bancassurance Intermediary Limited, 3026 Consultancies. ✓ Co-op foundation: 8368 Bright & Needy Students Supported. ✓ Partnership with IFC & Phillips: support smaller businesses in Africa's health sector ( USD 300 Million) ✓ Corporate Social Responsibility: First Lady's Beyond Zero Campaign 2020 (Kshs.20 Million) Private sector-led Covid-19 Emergency Response Fund. Donated Kshs. 100 Million to support critical medical supplies and equipment such as ventilators. ✓ 79% Employees below 40yrs ✓ Robust HR policy framework to guide optimal human resource engagements and staff support. Attracting and retaining talent: 96% retention rate. Skills development & career progression through training, e-learning & coaching. Environment Ongoing implementation of the CBK Guidance on Climate- Related Risk Management. Screening of loans & advances for environmental risk as laid out in the Environmental & Social Policy (E&S). Corporate, Co-operatives (Above USD 1M), MSME (Above USD 50K) ✓ Renewable Energy and Energy Efficiency investments -USD 37.1 Million credit agreement. ✓ Ongoing digitization of customer journey bank processes. Ongoing rehabilitation of 259.5 Ha, Lusoi forest in Laikipia (5000 trees, plan to do 10,000 more) Signatory to the United for Wildlife's (UfW) Financial Taskforce#26Sustainable Business SUSTAINABLE GOALS Championing Social Economic Empowerment Co-op Foundation Total Students Sponsored on Scholarship Program 8368 Additional Programs Empowerment of Youth in Transport Sector (Boda-Boda) GIZ grant funded program in Eastern, Central and Coastal Program. Education USA A University Scholarship Program funded by USAID. Jijali Program A Career/Work Readiness Program or Entrepreneurship targeting all our University Scholarship Beneficiaries. Community Service Program for University Scholarship Beneficiaries. Co-op Consultancy & Bancassurance Intermediary Limited 3026 Consultancies ✓ 19 Dedicated Consultants ✓ 479 FOSA- Financial Inclusion Deepening giz Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH ERRATIONAL USAID OPHEMER GO BANK USAID FROM THE AMERICAN PEOPLE KENYA VISION 2030#27Award Winning Brand A bank continuously feted for its commitment to drive sustainable impact emeafinance AFRICAN BANKING AWARDS 2021 EMEA FINANCE AFRICAN BANKING AWARDS 2021 CEO of the year - Pan Africa Best Bank - Kenya Financial inclusion - Pan Africa Best Asset manager, Co-optrust Investments Services - Kenya Global SME Finance Awards 2021 GLOBAL SME FINANCE AWARDS 2021 Honorary Mention - Product innovation of the year 2021 <b KENYA BANKERS ASSOCIATION KENYA BANKERS ASSOCIATION: CATALYST AWARDS 2019 Sustainable Finance Catalyst Award Overall Winner FiRe FINANCIAL REPORTING AWARD KAPO KENYA ASSOCIATION OF MANUFACTURERS Driving Global Competitiveness FINANCIAL REPORTING AWARD: Best environmental sustainability reporting- 2019 KENYA ASSOCIATION OF MANUFACTURERS: Best Bank in Sustainable Finance in Kenya - 2019 GO CO-OPERATIVE BANK 27 BANK We are you#28Regional Business (Kshs. Million) 4 branches in Juba 5 Non-oil collection centers. Owns 31% of CIC Africa Ltd- South Sudan 7,858.4 4,685.1 4,762.0 2,677.6 1,330.9 971.9 GO BANY Total Assets Total Deposits Loans And Advances Q32020 Q32021 829.8 380.0 148.4 92.2 612.0 484.0 217.8 Total operating Net Interest Income Income Total Operating Expenses Profit Before Tax -104.0 Q32020 Q32021#29Channel Performance пл#30Growing Digital Channels 93% of our Transactions are on alternative Channels providing opportunities for efficiency. Mobile • Internet • ATM . Agency 49% growth in Mobile Transactions year on year. Transactions '000' Q32021 Q32020 Merchant/POS Banking 826 522 Internet Banking 3,529 1,615 Branch Banking 10,581 10,370 ATM 17,865 19,537 Agency Banking Mco-op Cash 28,633 27,890 100,730 67,560 GO BANK#31Mco-op Cash Mobile Wallet A unique Offering GO BANK Do your banking transactions via your mobile phone via MCo-op Cash! DIAL *667# TO APPLY OR DOWNLOAD THE MCO-OP CASH APP FROM THE APP STORES. LLL LLL LLL GO BANK MCo-op Cash Kwa mikono yako... unaweza BMCoop Cash MCo-op Cash is an all-telco, all products mobile banking service that enables customers to enjoy access to a variety of banking services, money transfer and payment services. It's a virtual account with a simple menu where the customers mobile number acts as the account number and can be opened and operated end-to-end from the phone without having to visit the branch. Mco-op cash has continued to reach many customers who would have remained unbanked and underbanked. Mco-opcash main features includes; ✓ Full access to other wallets in the market ✓ Affordable pricing compared to Brick & Mortar ✓ Payment of goods and services directly to Telco Paybill/Till number ✓ Cardless withdrawal at the bank's agent and ATM network External and Internal funds transfer ✓ E-Credit - Access to the mobile based loans offered by the bank.#32Digital lending focus E-credit A superior product for our customers that continues to scale and is a key revenue source A key focus area, Kshs. 173.5B disbursed to Date. ✓ Kshs.5.7 Billion disbursed per month on average. ✓ Yield of 8% flat Consumer based salary checkoff hence lower credit risk. ✓ Short term tenure of maximum 90 days. Get an instant relief from cash worries by applying for a Flexi Cash Salary Advance Loan GO BANK#33Cumulative Mcoop Cash Loan Customer Numbers (In E-Credit A superior product for our customers that continues to scale and is a key revenue source E-CREDIT - KEY GROWTH FOCUS E- Flexi Business Unsecured Business Plus '000') 6,056 4,641 2,924 1,389 694 388 183 28 FY 2014 FY2015 FY 2016 FY2017 FY2018 FY2019 FY2020 Q32021 Cumulative Mcoopcash Loan Book - In Millions 173,523 11% 3% 122,225 63,761 20,169 225 86% FY 2014 1,644 FY2015 4,865 10,102 FY 2016 FY2017 FY2018 FY2019 FY2020 Q32021 GO BANK#34I Mobile Banking Leveraging Mobile Banking to grow commissions 49% increase in Transactions. 30% growth in commissions 5% growth in deposits through mobile. Transactions - Millions 68 Q32020 101 Q32021 Commission - Millions 4,003 Deposits through Mobile (Billions) 177 169 5,218 Q32020 Q32021 Q32020 Q32021#35Agency Banking Growing Co-op Kwa Jirani Agency Banking Agents' terminals up by 32% ■ Transactions up by 3% ■ Revenue up by 5% 17,784 No. of Agents 23,559 Total Revenue (Millions) 320 335 Q32020 Q32021 Q32020 Q32021 Total No. of Transactions (Millions) 29 Deposits Generated by Agents (Ksh.Bn) 155 28 Q32020 Q32021 131 Q32020 Q32021 DEPOSIT WITHDRAWAL Sept '20 Oct'20 Nov'20 Dec'20 Jan '21 Feb '21 Mar '21 Apr '21 May '21 Jun '21 July '21 Aug '21 Sept '21#36Agency Banking Growing Co-op Kwa Jirani Agency Banking Key deposit mobilization channel 46% 50% Transaction Type (%) 27% 28% 13% 14% 14% 8% Cash Deposit Cash Withdrawal Bal Enquiry Others Q32021 Q32020 67% · Higher deposit than withdrawal 61% Transaction Value distribution (%) 29% 28% Cash Deposit Cash Withdrawal Q32021 Q32020 10% 5% Others#37Financial Highlights#38Strong Financial Position (Kshs.Billion) 510.9 Q32020 382.3 Total Assets 592.9 Total Deposits 284.2 Q32021 Q32020 424.3 82.0 Loan book (Net) 306.3 Q32021 Shareholders' Funds 95.0 Q32020 Q32021 Q32020 Q32021 GÐ BANK 1111#39Strong Financial Position (Kshs.Billion) GÐ BANK Q32021 Q32020 YoY Change FY2020 Total Assets 592.9 510.9 16.0% 536.9 Loan book (Net) 306.3 284.2 7.8% 286.6 Government Securities 193.3 142.3 35.9% 161.9 Total Deposits 424.3 382.3 11.0% 378.9 Borrowed Funds 43.8 26.2 67.6% 46.0 Shareholders' Funds 95.0 82.0 15.9% 90.7#40•Diversified across segments. •Highest book is in Personal Banking; Diversified loan book Check off; deductions are done at source. Diversified across various Government/quasi-government employees. Appraisal of both employer and employee for optimal risk-return. 44% 48% Q32020 Q32021 GÐ BANK 22% 19% 12% 12% 8% 8% 6% 7% 7% 5% 1% 1% Personal Banking Corporate Mortgage Sacco Banking Asset Finance & IPF MSME Agri-Business#41Diversified loan book across sectors 50% in Personal consumer which is well performing Low relative exposure in high-risk sectors Tourism and Hotels <1% Manufacturing 2%. GO BANK Mining & Quarrying 0.0% 0.0% Tourism, Restraurant & Hotels 0.7% 0.8% Agriculture 1.5% 1.8% Building & construction 1.8% 2.0% Manufacturing 2.2% 2.3% Energy & Water 2.9% 4.4% Real Estate 9.4% 10.1% Transport & Communication Financial services 9.5% 9.7% 10.0% 10.4% Trade 11.9% 12.1% Personal consumer 50.0% 46.4% Q32021 Q32020#42Improving Non Performing Loan Book Bank Group Industry 13.4% 15.2% 14.6% 13.1% 14.6% 14.0% Q12021 Q22021 Q32021 12.5% 13.9% 13.9% Restructured Book • 49 Billion Restructured up to 31st March 2021 3.2 Billion - Collected 17.6 Billion Transitioned to performing 24 Billion under Moratorium ⚫ Kshs. 4.2B - NPL 42 GÐ BANK#43Portfolio Trends - Sector NPL Q32021 Q32020 Mining & Quarrying 0% 0% Energy & Water 0% 0% do do do do Personal consumer 6% 5% Sector is 50% of our loan book 8% Financial services 9% 12% Transport &... 7% Real Estate 18% 13% 24% Building & construction Agriculture Sector is 2% of our loan book 49% 25% Sector is 1.5% of our loan book 26% 28% Tourism, Restraurant &... Sector is <1% of our loan book 17% 29% Trade Sector is 12% of our loan book 35% Manufacturing 72% 73% Sector is 2% of our loan book GÐ BANK#44Well-diversified Liability Portfolio Q32021 Q32020 Saccos & Agribusiness Government Banking 9.0% 9.3% 10.2% 12.6% 10.7% Corporate banking 5.9% Institutional Banking Retail MSME 18.5% 21.1% 23.9% 23.4% 27.7% 27.7% Q32021 Current Accounts Transactions Accounts ■Fixed Deposits ■Call Deposits Savings Accounts 5.0% 12.4% 30.6% 25.4% 26.5% GÐ BANK#45An Optimally balanced Kenya Shilling asset & funding book FUNDING (LOCAL VS. FOREIGN CURRENCY) LCY FCY 7.0% 4.8% Borrowed Funds LOAN BOOK (LOCAL VS. FOREIGN CURRENCY) LCY FCY 9.3% 88.2% 90.7% GO BANK#46Adequate Coverage 50% increase in loan loss provision from Kshs. 4.0 Billion in Q32020 to Kshs. 6.0 Billion in Q32021, in appreciation of the challenges that businesses and households are grappling with from the disruption occasioned by the ongoing pandemic. 1.94% Q32020 Cost of Risk CBK Coverage - Incl. Gen Prov. (Bank) 2.73% Q32021 61.1% Q32020 Inclusive of the Discounted Value of Securities, our coverage is at 99.6% IFRS Coverage (Bank) 74.1% 77.2% 56.7% Q32021 Q32020 Q32021 GO BANK#47Strong capital to support future growth Capital buffers for sustainable growth Core capital to Total risk weighted assets 16.3% Q32020 Minimum Statutory Ratio Total capital to Total risk weighted assets Core Capital to Total Deposits 16.8% 19.0% 18.0% 16.5% 15.0% 10.5% 14.5% GÐ BANK 8.0% Q32021 Q32020 Q32021 Q32020 Q32021#48Optimal Asset and Funding Mix GÐ BANK Q32021 Q32020 Net Loans Net Loans 7% 5% 8% 11% Government Asset Securities Categories ■Cash and Cash 52% 56% Equivalent Government Securities Cash and Cash Equivalent 28% 33% Other Assets Other Assets Funding Categories 16% Q32021 Q32020 5% 3% Deposits 7% Deposits 5% 16% Shareholders Shareholders funds Borrowed funds 72% Other liabilities 76% funds Borrowed funds Other liabilities#49Strong Liquidity to support investments Liquidity ratio 56.5% Loans /(Deposits+Borrowed Funds) 50.2% Q32020 Q32021 Total Loans to Total Deposits 74.3% 72.2% 70% 65.4% Q32020 Q32021 Q32020 Q32021 GÐ BANK 111#50KShs. Billions Q32021 Q32020 YoY Change Total Interest Income 39.6 32.5 22% 1 Total Interest Expenses 10.9 8.9 22% 食 Net Interest Income 28.7 23.6 21% 食 Fees and commissions 12.4 11.3 9% 食 Forex income 1.9 1.8 4% 食 Other income 1.4 0.4 238% 食 Sustainable Profitability Growth Total Operating Income 44.4 37.2 19% 食 Loan loss provision 6.0 4.0 50% 1 Staff costs 10.0 9.7 4% ↑ Other operating expenses 11.9 9.7 22% 1 Total other operating expenses 28.0 23.5 19% ↑ Profit before tax and exceptional items 16.4 13.8 19% 食 Exceptional Item - Share of profit of associate 0.04 -0.04 210% 食 Profit before tax 16.5 13.8 20% ↑ 食 Tax 4.9 4.0 22% ↑ Profit after tax 11.6 9.8 19% Earnings per share 2.64 2.22 19%#51Q32021 Q32020 Variance Growth (%) KShs. '000' KShs. '000' KShs. '000' Co-operative Bank of Kenya Ltd Co-operative Bank of South Sudan 15,358,066 12,888,373 2,469,693 19.2% (103,994) 217,787 (321,781) -147.8% Co-optrust Investment Services Ltd 92,304 68,704 23,599 34.3% Subsidiary Contribution Co-op Consult. & Bancassurance Intermediary Ltd 648,023 625,020 23,003 3.7% Kingdom Securities Ltd 590 (10,630) 11,220 105.6% Kingdom Bank Ltd 446,992 446,992 Co-op Bank and Subsidiaries Total 16,441,981 13,789,254 2,652,727 19.2% Associates share of profit 42,046 (38,087) 80,133 210.4% Group Profit Before Tax 16,484,027 13,751,167 2,732,860 19.9% Income Tax Expense 4,857,312 3,976,420 880,892 22.2% Group Profit after tax 11,626,715 9,774,747 1,851,969 18.9% 51 51#52Key Ratios Return on Average Equity Return on Average Asset Earnings per share 17.5% 2.8% 2.64 16.7% 2.7% 2.22 Q32020 Q32021 Q32020 Q32021 Q32020 Q32021 GÐ BANK#53Key Ratios Return on Interest Earning NIM on earning Assets NIM on Loans Assets 10.8% 7.5% 10.3% 7.2% 7.6% 8.2% Q32020 Q32021 Q32020 Q32021 Q32020 Q32021 GÐ BANK#5463.0% 52.2% CIR - Group CIR - Bank 63.0% 63.6% 52.4% 49.4% 61.9% 48.0% ■ Key Ratios H Q32020 Q32021 Cost Income Ratio (With provision) ■ Cost Income Ratio (Without provision) Non-Funded to Total Operating 36.5% Income Q32020 Q32021 ■ Cost Income Ratio (With provision) ☑ Cost Income Ratio (Without provision) Total Cost of funds (Deposit+borrowed funds) 3.3% 35.4% 3.1% Q32020 Q32021 Q32020 Q32021 [GO BANK#55GÐ BANK Thank You [email protected]