1 dr. martin oduor-otieno, kcb group chief executive my story

1Dr. Martin Oduor-Otieno, KCB Group Chief Executive

My Story

Vision, Mission & Values

2

Values:

Putting the CUSTOMER first

Working together as a TEAM

Being PROFESSIONAL in everything we do

A willingness to CHANGE

Caring for the COMMUNITY

Mission:To drive efficiency whilst growing market share in order to be the preferred

financial solutions provider in Africa with global reach.

Vision:To be the preferred financial solutions provider in Africa with global reach.

The Extra Ordinary Story Of KCB

Where we have come from

3


• KCB has been in Kenya for over 114 years, first as National

Bank of India then as National & Grindlays Bank.

• From one tiny branch in Mombasa in 1896, we now have 167

branches, spread across the country.

•We also serve our customers through over 750 ATMs across

the region, mobile telephone banking & other global services .

•Our Client base stands at 1.5M customers, representing 11%

of market share (customers); 15% by value.

•We have the largest asset base and capital base in EA; Kshs

244 B and Kshs36.8 B respectively.

• Employer of choice with approximately 5,000 staff

• Regional expansion began in 1997 with entry into

Tanzania.

• Our vision was to capture the EAC market as the

Community was reborn; promote regional businesses.

• First branch in Dar-es-Salaam but now also in Mwanza,

Arusha, Moshi, Morogoro & Zanzibar.

• Recorded successes in spite of challenges; an inspiration

to Kenyan businesses in that market.

• KCB shares cross-listed on Dar-Es-Salaam Stock

Exchange

Pioneering in Tanzania

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• Tanzania slowly embracing regional integration

6

Moshi

Morogoro

Braving the unknown- Southern Sudan

5

• KCB was the first international bank to be

licensed to operate in Southern Sudan in 2006.

• Very brave move as country had just began

developing systems and structures; huge risks.

• Began operations in Rumbek and Juba;

expanded to 14 locations; significant market

share.

• KCB is the key banker for the Government of

Southern Sudan; benefits from strong pro-

Kenya sentiment in the market based on

support during CPA negotiations.


6

Bentiu

Yambio

Rumbek

Torit

NimuleYei

Venturing into Uganda

6

• Launched our first branch in Kampala in 2008 and

since expanded to 14 branches.

• Uganda is Kenya’s top trading partner hence great

opportunity for financial intermediation.

• Immense synergies with our businesses in Rwanda and

S. Sudan.

• Recent discovery of Oil a major driver of economic

growth into the future.

• KCB Shares cross-listed at Uganda Securities Exchange


6

Hoima

Rwanda – The Land of a Thousand Hills

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•Started with a state-of-the-art branch at Avenue

de la Paix, Kigali; grown to 9 branches.

•KCB is a strong brand in the market.

•Rwanda has made huge strides in opening up its

market to the region.

• Increasing business opportunities, especially in

ICT sector; KCB positioning itself to tap into the

potential.


5

Rubavu

Huye

Musanze

…next stop?

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These countries offer KCB additional opportunities to expand footprint• Synergies with existing markets• Value in strengthening regional ties; more business for the bank and its customers• Largely untapped markets • Interest from Foreign investors/ increasing FDIs

Burundi DR Congo Zambia

KCB’s Regional Growth Strategy

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Leverage on Technology:• Single platform

banking system• Intelligent ATMs• Mobile banking

products

Mortgage/ABF products

SME & BOP products. Youth products


• Tanzania – Islamic banking products, Mortgage finance, Asset Finance, credit cards and women and youth products• Southern Sudan - Advantage

banking, Mortgage finance and Money transfer services •Uganda – Advantage banking and

Money transfer services•Rwanda – Mortgage finance

products, personal and group business accounts• Eastern Africa – Synergies from EAC

Common Market

Our Evolving Ownership Structure

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Local Institutional Investors Local Individual Investors Foreign Investors0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

3.6%

96.0%

0.3%

59.8%

29.9%

10.3%

ShareholdersShareholding


Government Shareholding

11


IPO P

O PO

RIGHTS

PO

RIGHTS

RIGHTS

Our Market Position

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Category Dec 2009 Kes Billions Ranking 2009

Total Assets 172.38 No 1 Market Share 13.10%

Customer Deposits 137.97 No 1 Market Share 13.71%

Total Deposits 147.28 No 1 Market Share 14.18%

Loans & Advances (Net) 96.56 No 1 Market Share 13.95%

Shareholders Funds 22.40 No 3 Market Share 11.41%

Interest on Loans and Advances 11.82 No 2 Market Share 13.43%

Total Interest Income 15.24 No 2 Market Share 13.01%

Net Interest Income 12.37 No 2 Market Share 14.87%

Profits Before Tax 6.43 No 3 Market Share 13.49%


Resilient Share Price

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KCB is Cross listed in the Uganda Securities Exchange, Tanzania Stock Exchange and the Rwanda Over the Counter Market

Today, our market Capitalization stands at Ksh 67B

PBT Growth (Kshs Millions)

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 40431

(6,000)

(4,000)

(2,000)

-

2,000

4,000

6,000

8,000

(766)

369

(4,179)

750 920

1,948

3,167

4,226

6,013 6,300 6,513


Proportion of profits from the subsidiaries increasing albeit slowly.This we look to grow to account for 20% of the Group’s PBT over the next 5 years.

Net Loans and Deposits (Kshs. Billions)

15

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep-10

39 34 30 2736 36

4564

94

121138

49 47 46 51 56 6477

94

127

163

193

73 65 60 6070 78

93

120

191 195

244

Net Loans Deposits Total Assets


Dividend Payout (Kshs Millions)

16


Return on Equity

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-60%

-40%

-20%

0%

20%

40%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep-10

-6%

5%

-58%

9% 7% 13%21% 23% 20% 18% 16%


Shareholders Funds

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 404220

5

10

15

20

25

30

35

40

8.05 8.385.17 5.61

8.5810.08

11.6213.2

21.0922.8

36.8

Enhanced Potential – Post Rights Issue

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After rights issue 6,947M

Before rights issue 4,492M

Single Borrower Limit

Asset (loans) Potential has grown from the KShs163B to KShs251B

Liability (deposits) Potential has grown from the KShs246B to KShs380B

KCB Awards

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I.T. Division scooped the Network Innovation Award from CISCO Systems(2009).

Euromoney Award for Best Bank in Kenya in the 2009Euromoney Awards of Excellence

Banking Innovation of the Year Award in 2009 for KCB Connect. The Kenya Information & Communications Technology Excellence Awards

Africa investor SRI (Socially Responsible Investment) 30 CEO of the Year (2010)

The Banking Awards 2010:• Best Bank in Product Marketing • Best Bank in Technology Use• Best Retail Bank • Best Bank in Asset Finance • Best Bank in Mortgage FinanceEMEA Finance's best local bank in Kenya 2010 award for the 3 rd

consecutive year

Socially Responsible & Sustainable Business

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• The KCB Foundation supports the community in: •Education•Environment•Enterprise Development•Health•Humanitarian Intervention

Launched Friends of the Foundation Partnership programme.

•KCB is the first bank in Eastern Africa to launch a sustainability programme. • Issued first Sustainability

Report in 2008• Implementing the KCB

Green Agenda; a blue-print for green business practices.

Amb. James Baba Min. of State and KCB Staff during the Uganda SOS Medical Camp

You can be part of KCB’s Success

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KCB Ambassador

You can be part of KCB’s Success

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KCB Ambassador


… and finally

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THANK YOU.

1 dr. martin oduor-otieno, kcb group chief executive my story

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