CONDENSED AUDITED INTERIM FINANCIAL STATEMENTS FOR …

BANK

CONDENSED AUDITED INTERIM FINANCIAL STATEMENTS AS AT 30 JUNE 2021

ASSETS

31 June 21 31 Dec 20FRW '000 FRW '000

Cash, deposits and balances due from financial institutions

Financial investments – amortised cost

Financial investments – FVOCI

Loans and advances to customers

Deffered tax assets

Other assets and prepaid expenses

Property and equipment

Intangible assets

TOTAL ASSETS

LIABILITIES FROM

45,299,942

34,643,871

-

158,582,742

745,556

3,793,714

1,782,869

1,444,709

43,860,843

26,447,876

-

150,426,864

745,556

Balances due from related parties 332,890 972,307

2,452,101

1,935,383

1,451,107

Right of use Asset 4,201,632 4,402,693

250,827,925 232,694,730

Deposits from customers

Deposits from banks and other financial

Balances due to related partiesBorrowed fundsOther liabilities and accrued expensesLease liabilities

158,266,968

34,952,4521,345,4504,960,0708,251,7883,451,496

CAPITAL AND RESERVES

Share capital

Share premium

Retained earnings

20,148,149

1,076,185

16,903,790

20,148,149

1,076,185

13,821,403

Statutory Credit Risk Reserves 536,908 536,908

TOTAL LIABILITIES 212,162,893

140,878,850

40,259,5232,981,5387,472,6171,607,0663,666,478

934,670 246,013Current income tax- -Deferred income tax liabilities

197,112,085

TOTAL EQUITY 38,665,032 35,582,645

TOTAL LIABILITIES AND EQUITY 250,827,925 232,694,730

FRW '000 FRW '000 FRW '000 FRW '000

At 1 January 2020

Profit for the year

Period ended 31 Dec 2020

At 31 Dec 2020

Total comprehensive income for the year

Total comprehensive income for the year

16,329,895

20,148,149

1,076,185

1,076,185

237,28310,073,654

536,908

Share Capital

Share Premium

FVOCIreserve

27,717,017

4,047,3744,047,374

Share capital injection 3,818,254 3,818,254

Fair value gain on FVOCI investments

Profit for the yearFair value gains on FVOCI investments

35,582,645

At 1 January 2021

Period ended 30 June 2021

At 30 June 2021

Total

FRW '000

13,821,403

20,148,149 1,076,185 536,908 35,582,64513,821,403

3,082,387 3,082,387

20,148,149 1,076,185 536,908

38,665,03216,903,790

20,148,149 1,076,185 536,908 38,665,03216,903,790

Retained earnings

299,625-299,625

CONDENSED AUDITED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021

4,403,410 5,732,689Profit before income tax

Cash flow from operating activities:

(214,982)

-

(1,032,124)Interest expense on lease liabilities

308,918 645,717 Adjustments for:Depreciation of property and equipment

238,949 433,102Amortisation of intangibles

4,736,295 5,779,384

- Unrealized gains/losses

Operating profit before changes in operating working capitalChanges in working capital:

(8,155,878) (14,645,183)Change in loans and advances(1,341,613) 402,393 Change in other assets

Change in non-current assets held for sale17,388,118 17,656,643 Change in deposits and balances from customers

- - Change in prepaid operating lease rentals201,061 535,512 Change in right of use assets

(1,636,088) (532,398)Change in balances due from related parties639,417 (2,959,501)Change in balances due to related parties

6,646,005 (987,092)Change in other liabilities2,090,148 (1,964,268)Change in cash reserve requirement

Change deposits from banks and other financial Institutions

Principal elements of lease repayments(632,366) (2,432,784)Income tax paid

CONDENSED AUDITED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2021

30 June 2021FRW '000

31 Dec 2020FRW '000

Net cash generated from investing activities

Cash flows from financing activities:

(3,172,033) (11,697,296)

Cash and cash equivalents at 01 January 12,135,235

Cash and cash equivalents 21,550,186 5,495,702

(708,581) 4,205,057

Cash flows from investing activitiesPurchase of intangible assetsPurchase of property and equipmentProceeds from property and equipment disposal

(232,551)(156,404)

(99,679)(514,853)

Share capital 3,818,254 Proceeds from forward contractReceipt of Longterm Debt Repayment of Long-term Debt

1,803,966

Net cash generated from financing activities(708,581) (1,417,163)

Net increase in cash and cash equivalents 16,054,484

5,495,702

(6,639,533)

Proceeds from investment securities 5,308,500 417,236Purchase of investment securities (8,091,578) (11,500,000)

Net cash used in operations 19,935,099 852,706

CONDENSED AUDITED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2021

FRW '000 FRW '000

Interest and similar income

Interest and similar expense

Net interest income

Fees and commission income

Fees and commission expense

Impairment losses on loans and advances to customers

Operating income before impairment

Operating income after impairment losses

Net fees and commission income

Income tax charge

12,450,870

(4,574,418)

7,876,452

2,514,246

(268,175)

10,831917

10,463,183

(368,733) (913,006)

(1,321,023)

10,857,577

(3,828,347)

7,029,230

2,246,072 1,633,162

1,840,879

(207,716)

Net foreign exchange income

Other operating income

509,476

199,917

488,756

175,192

9,326,340

8,413,334

Total operating expenses 6,059,774 5,973,256

Profit before income tax 4,403,410 2,440,078(732,024)

Profit for the period 3,082,387 1,708,055

Other comprehensive income to be reclassified to profit or loss in subsequent periods (net of tax)

- -

Total comprehensive income for the period 3,082,387 1,708,055

Employee benefitsDepreciation of property and equipment

Amortisation of intangible assets

Other operating expenses

2,814,444

308,918

2,690,337

324,530

238,949 215,919

Depreciation of Right of use assets 523,393 524,910

2,174,070 2,217,560

31 June 21 31 June 20

STATEMENT OF FINANCIAL POSITION

STATEMENT OF COMPREHENSIVE INCOME

BANK

30-June-21FRW '000

A ) Capital Strength

A) Credit Risks

CONDENSED AUDITED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2021

STATUTORY DISCLOSURES

Core Capital (Tier 1)Supplementary Capital (Tier 2)Total CapitalTotal Risk Weighted AssetsCore Capital/ Total Risk Weighted Assets Ratio (Tier 1 Ratio)Tier 2 RatioTotal Capital/Total Risk Weighted Assets RatioLeverage Ratio

34,183,7672,326,759

36,510,526198,627,594

17.21%1.17%

18.38%12.23%

162,656,081

1,976,373 42,671,446

- - - -

43,803,441 -

6,902,106 25,213,121

6,916,858 22,510,50312,662,233

1.Total gross credit risk exposures: after accounting offsets and without taking into account credit risk mitigation;2. Average gross credit exposures, broken down by major types of credit exposure:a) Loans, commitments and other non-derivative off-balance sheet exposures; • Agriculture• Building and construction• Education• Energy and water• Financial intermediation• Health and other• Manufacturing• Mining & quarrying• Mortgage• Personal/household• Real estate• Tourism, rest & hotels• Trade• Transport and communication

B) Debt securities;

C) OTC derivatives;Regional or geographic distribution of gross exposures, broken down in significant areas by major types of credit exposure:

Sector distribution of exposures, broken down by major types ofcredit exposure and aggregated in the following areas:

OFF- BALANCE SHEET ITEMS

a) Kigalib) Southernc) Westernd) Northerne) Eastern

a) Guarantees issued outwardb) Outward letter of credit contra

31,897,8755,072,541

NON-PERFORMING LOANS INDICATORS a) Non-performing loans (NPL)b) NPL ratio

8,406,9475.17%

RELATED PARTIESa) Loans to directors, shareholders and subsidiariesb) Loan to employees

-5,110,832

LIQUIDITY RISK1) Liquidity Coverage Ratio (LCR)2) Net Stable Funding Ratio (NSFR)

168%120%

Interest rate riskEquity position riskForeign exchange risk % of Core Capital (NOP)

595,831-

437,531

OPERATIONAL RISKNumber and types of frauds and their corresponding amount

MARKET RISK

1. Credit exposures abroad2. Other assets held abroad3. Liabilities to abroad

-18,008,258

9,637,463

COUNTRY RISK

1. Number of Board members2. Number of independent directors3. Number of non-independent directors4. Number of female directors5. Number of male directors6. Number of Senior Managers7. Number of females senior managers8. Number of males senior managers

75216

144

10

Management and board composition

141,752,7656,760,0299,393,7772,255,6782,493,832

a) Governmentb) Financialc) Manufacturingd) Infrastructure and constructione) Services and commercef) Others

00

43,803,44167,884,56642,089,595

8,878,479

The interim audited financial statements were approved by the board of directors on 30th july 2021 and Signed on its behalf by:

Managing Director Chairman of the Board

Contact Us:Call: 5222 or 0788 140 000Email: contactus@rw.kcbbankgroup.comWebsite: www.kcbbankgroup.com

EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS H1 2021i. Interest income grew by 14.7 % mainly attributed to growth in loans and advancesii. Interest expense grew by 19.6% attributable to a growth in customer depositsiii. Net loans and advances grew by 13.5% supported by new deals booked during the year in line with market opportunitiesiv. Non-interest income grew by 28.7% supported by growth customer numbers and new productsv. Customer deposits also grew by 24.7% to support loan book growth.

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