Bank of Kigali Investor Day Presentation 27th April 2012

8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012

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BANK OF KIGALI

INVESTOR DAY PRESENTATION

27th April, 2012


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DisclaimerThis presentation contains statements that constitute forward-looking statements, including, but not

limited to, statements relating to the implementation of strategic initiatives and other statements

relating to our business development and financial performance.

While these forward-looking statements represent our judgments and future expectations concerning

the development of our business, a number of risks, uncertainties and other factors could cause actual

developments and results to differ materially from our expectations.

These factors include, but are not limited to, (1) general market, macroeconomic, governmental

policies, legislative and regulatory trends, (2) movements in local and international currency exchange

rates, interest rates and securities markets, (3) competitive pressures, (4) technological

2

eve opmen s, c anges n e nanc a pos on or cre wor ness o our cus omers, o gors an

counterparties and developments in the markets in which they operate, (6) management changes andchanges to our group structure and (7) other key factors that we have indicated could adversely affect

our business and financial performance, which are contained elsewhere in this presentation and in our

past and future filings and reports, including those filed with the National Bank of Rwanda and the

Rwanda Stock Exchange.

We are under no obligation (and expressly disclaim any such obligations to) update or alter our forward-

looking statements whether as a result of new information, future events, or otherwise.


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Presentation Team

J a m e s G a t e r aC h i e f E x e c u t i v e O f f i c e rE m a i l : j g a t e r a @ b k . r wT e l : + 2 5 0 2 5 2 5 9 3 1 2 1

L a d o G u r g e n i d z eC h a i r m a n o f t h e B o a r dE m a i l : l g u r g e n i d z e @ b k . r wM o b i l e : + 9 9 5 5 9 9 4 7 7 2 7 2

l a d o . g u r g e n i d z e . 2 0 0 8

3

L a w s o n N a i b oC h i e f O p e r a t i n g O f f i c e rE m a i l : l n a i b o @ b k . r wM o b i l e : + 2 5 0 7 8 8 3 0 2 0 7 6

J o h n B u g u n y aC h i e f F i n a n c e O f f i c e rE m a i l : j b u g u n y a @ b k . r wM o b i l e : + 2 5 0 7 8 8 3 0 6 1 0 0


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Program

1. Highlights of 2011 Financial Performance

2. Strategic Outlook

3. Corporate governance4. Banking Sector Overview

.

6. Business Overview

7. Retail Business focus

8. Review of Financial Performance 2011

9. Contact Information 4


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HIGHLIGHTS OF 2011FINANCIAL PERFORMANCE

5


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2011 Performance Highlights

Net Interest Income Net Non-Interest Income Total Operating Income

12.2

16.6

-

2.0

4.0

6.08.0

10.0

12.0

14.0

16.0

18.0

2010 2011

RwF bn

+36%

9.0

12.9

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2010 2011

RwF bn

+43%

21.2

29.5

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2010 2011

RwF bn

+39%

Total Recurring Operating Costs Profit Before Provisions Net Income

10.1

14.3

-

2.04.0

6.0

8.0

10.0

12.0

14.0

16.0

2010 2011

RwF bn

+42%

11.1

15.2

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2010 2011

RwF bn

+37%

6.2

8.7

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2010 2011

RwF bn

+40%


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STRATEGIC OUTLOOK

7


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Management Targets

Other Management targetsTotal Assets Growth Gross Loans/Total Assets

Launch representative offices within the EAC region

Launch agency banking

Launch Premier Banking - targeting 500 clients by YE

2013

46%

30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2011 2012P

45%

60%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012P

Branch expansionReturn on Average Equity Revamp the existing digital wallet/mobile banking

distribution channel

19%

20%

18%

18%

19%

19%

20%

20%

21%

2011 2012P

44

56

0

10

20

30

40

50

60

2011 2012P 9


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CORPORATE GOVERNANCE

10


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Corporate Governance

The Board of Directors is composed of seven independent non-executive directors (including two non-

resident directors with extensive expertise in international banking practices)

The Board of Directors is approved by the Central Bank and meet on a quarterly basis or more frequently

as the business demands

The Board retains full responsibility for the direction and control of the Bank as spelled out in the

Memorandum and Articles of Association, the Board Charter and the corporate governance guidelines

The Board sub-committees have clear TORs which underscore the scope and context of their

performance as approved by the Board & corporate governance regulation

The Board receives detailed financial information and regular presentations from the management on the

Banks business performance. This enables the Directors to make informed decisions on

governance, strategic, financials and operational issues11


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Sharehold ing Structure

Report date 25-April-12

Current price, RwF 125

Market Cap, US$ mln 137

Free float 45%

Free float in US$ mln 67

Average daily traded volume in US$ mln 0.12

Common shares outstanding, mln shares 667.3

12-month high 200

12-month low 118

P/E YE 2011 8.0

P/BV YE 2011 1.13

Shareholding Structure

Employees and

International

Institutional

Investors, 11.1%

Local

InstitutionalInvestors, 2.2%

Other State

Owned

Entities, 0.7%

Regional

Institutional

Investors, 4.8%

Retail

Investors, 15.5%

Rwanda Social

SecurityBoard, 27.6%

12

Ticker Code BOK

Rwf/USD Exchange Rate (e-o-p) of 607.552 as at 25 April 2012

*Capital gains on the RSE transactions are exempted from CapitalGains Tax

Share Price Performance since start of trading

100

125

150175

200

1-Sep-11

6-Sep-11

11-Sep-11

16-Sep-11

21-Sep-11

26-Sep-11

1-Oct-11

6-Oct-11

11-Oct-11

16-Oct-11

21-Oct-11

26-Oct-11

31-Oct-11

5-Nov-11

10-Nov-11

15-Nov-11

20-Nov-11

25-Nov-11

30-Nov-11

5-Dec-11

10-Dec-11

15-Dec-11

20-Dec-11

25-Dec-11

30-Dec-11

4-Jan-12

9-Jan-12

14-Jan-12

19-Jan-12

24-Jan-12

29-Jan-12

3-Feb-12

8-Feb-12

13-Feb-12

18-Feb-12

23-Feb-12

28-Feb-12

4-Mar-12

9-Mar-12

14-Mar-12

19-Mar-12

24-Mar-12

29-Mar-12

3-Apr-12

8-Apr-12

13-Apr-12

18-Apr-12

23-Apr-12

PriceClosing Price Volume Weighted Average Price Initial Price

Government of

Rwanda, 29.8%

BlackeneyManagement,

7.3%

, .


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BANKING SECTOR OVERVIEW

13


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2011 Banking Assets/GDP Large Unbanked Population

Economy is still cash based with bank accounts being used

mostly for cash deposits and withdrawals

Approximately 20% of the population is banked

90% of banked adults have a product with UBPR or credit

unions

2010 Banking Assets Per Capita5

Significant Banking Sector Potential

534

274

Kenya

Tanzania

(US$)

Source: Finscope Rwanda 2008

Prudential Regulations

CAR (Tier One) 10%

50%

66%

*

Tanzania*

Kenya*

(1) Source: Central Bank of Kenya and Economic Survey 2011

(2) Source: IMF and Tanzania Banking Survey 2011 (Serengeti Advisers)

(3) Source: IMF and Bank of Uganda Joint Annual Supervision & Financial Stability Report December 2010

(4) Source: NISR, National Bank of Rwanda Monetary Policy review

(5) Source: population stats by IMF

*2010 figures are used for Kenya Tanzania and Uganda

14

165

124

gan a

Rwanda

Total CAR 15%

Liquidity Ratio 20%

Reserve Requirement 5% of total deposits

Lending in foreign currency Restricted to exporters

23%Rwanda

g


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Banking Sector Overview

Rwanda Banking System Growth (Total Assets)

360.8468.7

516.2579.5

728.5

888.4

0100200300

400500600700800900

1,000

2006 2007 2008 2009 2010 2011

CAGR -19.7%

Rwf bn

Source: NBR Monetary Policy & Financial Stability Report 2011

Interest Rate Analysis

0.0%

5.0%

10.0%

15.0%

20.0%

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 2011

Key Repo Rate T-Bills Rate Deposit Rate Lending Rate

Source: National Bank of Rwanda, Bank of Kigali Data

Branch Coverage ecen egu a ory e orms o mprove ccess o re

Enactment of Law on Mortgages, requiring the registration of mortgages

and enabling lenders to foreclose on defaulters

Establishment of Commercial Courts dealing solely with commercial

disputes

Reorganization of the Land Centre which has computerized records

and operations in addition to timely issuance of property titles

Reorganization of the Office of the Registrar General to enhance and

fast track registration of mortgages and foreclosures

Establishment of Credit Reference Bureau to enhance information

sharing among banks and other financial institutions in order to assist

with credit risk assessment

15

The total number of branches and outlet networks in the banking

industry as at FY 2011 was 683 with Bank of Kigali having 44

branches and outlets.


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Timeline of Foreign Investment

2004 2005 2006 2007 2008 2009 2010 2011

16

Source: NBR Supervision Department, BK Audited Full Year 2011 Results


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Competitive Landscape

Market Share Dynamics as at 31 December 2011


Banking Sector Growth Vs Bank of Kigali Growth

26.4% 26.8%25.7%

26.7%27.4%

31.5%

25.9%

32.2%32.4%

29.4%28.0%

40.8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Assets Net Loans Client Deposits Shareholders'Equity

2009 2010 2011

45.6%

21.4%

33.4%

93.2%

23.0%29.9%

23.8%

52.4%

0%

10%20%

30%

40%

50%

60%

70%

80%

90%

100%

Total AssetsGrowth

Net Loan BookGrowth

Client DepositsGrowth

Shareholders'Equity

Bank of Kigali Growth in 2011 The Rwandan Banking Sector Growth in 2011

17

Concentration of Banking Sector AssetsPerformance Indicators YE 2011


7.0%

2.2%

10.6%8.3%

3.6%

18.6%

0.0%

5.0%

10.0%

15.0%

20.0%

NPLs/Gross Loans Return on Average

Assets

Return on Average

Equity

Asset Quality Profitability ratios

Banking Sector BK

31 December 2011 31 December 2010

Top 5Banks,78.6%

Others, 21.4

%

Top 5Banks,78.4%

Others, 21.5

%



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Bank of Kigali is the Market LeaderRank Total Assets Loans Deposits Equity

32.4%

BANK OF KIGALI

BPR

17.6%

ECOBANK

10.2%

BCR

10.5%

1

2

3

4

29.4%

BANK OF KIGALI

28.0%

BANK OF KIGALI

40.8%

BANK OF KIGALI

BPR

23.5%

BPR

18.8%

BPR

14.4%

BCR

8.2%

ECOBANK

9.8%

ECOBANK

11.4%

COGEBANQUE

9.3%

BCR

10.9%

ECOBANK

10.0%

Source: National Bank of Rwanda as at 31 December 2011

COGEBANQUE

.

FINA BANK

6.6%

KCB

7.1%

ACCESS BANK

6.3%

5

6

7

8

BCR

.

ACCESS BANK2.9%

KCB

8.4%

ACCESS BANK

7.5%

COGEBANQUE

.

FINA BANK

7.2%

KCB

7.7%

COGEBANQUE

6.4%

FINA BANK

4.7%

KCB

.

ACCESS BANK

4.4%

FINA BANK

7.5%

9

EQUITY BANKEQUITY BANK EQUITY BANK

EQUITY BANK

4.5%

1.3% 0.1% 0.7%

18


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BANK OVERVIEW

19


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Background and History

A+ credit rating by

GCR (Global Credit

Rating)

20112006

Established in 1967

as J.V with Belgolaise

S.A

1967

Current

management team

assembled

2007 2009

Supervisory Board

enhanced &

internationalised

2010

US$62.5 mln

Initial Public

Offering of 45%

of its shares and

listing on RSE

2007 2010

20

Government of

Rwanda acquired

50% stake fromBelgolaise becoming

100% shareholder

New strategy

focusing on the

universal banking

business model and

profitable growth

adopted

EIB loan signed:

EUR 5 MM

7 years

AFD loan signed: US$ 20 MM

10 years

AfDB loan signed:-US$12 MM

-10 years


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Key Facts

A Snapshot of Bank of Kigali

The leading bank in Rwanda (32.3% market share by total assets as of

December 31, 2011), offering a wide spectrum of commercial banking

services to corporate, SME and retail customers

As of 31 December 2011 the Bank had:

Over 13,000 corporate accounts

Over 73,000 retail current accounts

44 branches (29 of these outside of Kigali)

26 ATMs

602 employees

19,321 debit cards in issue

Western Union Agent for International Transfers

Branch Network Evolution

Source: Bank of Kigali Audited Financials 2007-2011

US$ MM 2007 2008 2009 2010 2011

CAGR

2007-2011*

Total Assets 225.1 216.1 265.9 332.5 476.3 24.1%

Net Loans 89.4 129.0 135.0 170.6 203.7 26.1%

Client Deposits 187.2 167.9 191.7 228.2 299.5 15.5%

Shareholders' Equity 23.5 28.4 32.5 53.6 101.9 48.1%

Net Income 7.8 10.3 9.3 10.4 14.4 19.5%

Growth figures are calculated on RwF Values

MARKET SHARETotal Assets 29.0% 23.4% 26.3% 27.4% 32.4%

Net Loans 25.3% 24.4% 26.8% 31.5% 29.4%

Client Deposits 30.6% 24.6% 25.8% 25.9% 28.0%

Shareholders' Equity 28.3% 22.3% 26.8% 32.2% 40.8%

One o two Ban s in Rwan a t at o er Internationa VISA car s.

On average, the break-even period for new branches is less than 24 months

21

Growth in ATMs, POS Terminals and # of retail accounts

11 14 18 33 44

267 295 303453

602

0

200

400

600

800

0

20

40

60

2007 2008 2009 2010 2011

Number of Branches Number of Employees

6 6 6 26 26040 52

97

202

27 30 4165

139

0

200

400

2007 2008 2009 2010 2011

ATMs POS Retail Accounts Number ('000')


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RETAIL BU SINESS FOCUS

22


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Executing the Retail Strategy

23


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Ubiquitous footprint

Agency Banking

Growing our Distribution Network

4456 65

7789

101

0

50

100

150

2011 2012P 2013P 2014P 2015P 2016P

Branches

115 125

145165

150

200ATMs

Increasing functionalities of our delivery channels

2012 Targets

Cash out and Cash in at Point of sale merchants

Deposit taking ATMs

Card less Transactions at ATMs through our mobile banking and mobile wallet

Recruitment of 400 existing businesses as agents in

underway

Agents will be able to perform cash in and cash out

transactions, account opening and micro loan

26

86

0

50

100

2011 2012P 2013P 2014P 2015P 2016P

202

1,000

1,850

2,650

3,400

4,100

0

1000

2000

3000

4000

5000

2011 2012P 2013P 2014P 2015P 2016P

POS

applications and disbursement.

Introduce 20 BK owned agent kiosks in high traffic

areas

Partnership with Telecos for our clients to transact

at their agents

Other Initiatives

Launch of mobile vans. So far 5 mobile vans have been ordered for 2012

Become super agents for mobile telecos to attract their customers to BK

and increase cross selling opportunities24


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Growing our Card Business Increasing our Mobile product offering

Expanding our self service products

2011 Achievements

Issuing of approximately 40,000 VISA

Electron cards

Interoperability of our ATMs with VISA

Electron and local proprietary Cards

2012 Targets

AMEX acquiring. (CUP and Diners Club

ac uirin have alread been com leted

1. Enhancing our mobile banking service

In 2011, the Bank upgraded its SMS banking service to a

mobile banking service allowing customers to perform

the following transactions:

Purchasing prepaid TV, airtime and electricity

Check Balances and Bank information

Order cheque books

2. Launching our mobile payment platform

Attractive Products

Launch of three new card products

VISA Prepaid

VISA Classic (Credit Card)

VISA Gold (Credit Card)

Launch of E-commerce

This platform will enable our clients to make purchases

at selected merchants using their mobile phones

Expected Launch Date: June 2012

3. Launch of mobile wallet

Issuing of a mobile wallet that is either linked to a

current account or not linked to a current account

Wallet will enable our customers to store cash and

transact at our ATMs and agents

25


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Refreshing Product and Service Line UpNew Business Lines

1. Teleco mobile money agency

Super agent for the two telcos

All the 46 branches will be agent for the telco money

Virtual money customers can deposit, withdraw at any of the BK branches

countrywide

2. Establishing BK Securities subsidiary

BK custody has over 60% of the local investors

The securities brokerage services will offer our investors seamless

services

Grow Retail Product Offering

1. Loan Products

Top Up Mortgages

Leisure loans to tap the growing middle class

Payroll Loans: Leveraging our corporate clients payrolls

2. RemittancesGrow our Western Union market share from 36% to 40%

Increase functionality of Western Union to enable direct transfers to current accounts and mobile

wallets

Harmonise BK tariff structure with the region to increase competitiveness26


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BUSINESS OVERVIEW

27


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68.5%

31.5%

Corporate Loans Retail Loans

80.3%

19.7%

Corporate Loans Retail Loans

Gross Loan Portfolio Loan Book Segementation

Overview of the Loan Book

Rwf Bn

Source: Bank of Kigali

45.965.2 66.9

84.8 89.510.8

13.6 14.0

20.7

41.2

0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011

Corporate Retail

56.6

78.880.9

105.5130.7CAGR 23.3% 31 December 2011 31 December 2010

Top 10

Corporate

Loan,

25.5%

Other

Corporate

Loan,

74.5%

Top 10 Corporate Loan Other Corporate Loan

orpora e oan oo , ecem er

Source: Bank of Kigali Corporate Loans: RWF 89.5 Bn

Over 1

Billion,

36.0%

500M-1

Billion,

11.8%

100M-500

Million,

34.2%

50M-

100Million

, 8.2%

0-50

million,

9.8%

Manufactur

ing

10%

Construction

29%Commerce,

restaurants

& hotels

45%

Transport &

Communica

tion

7%

Others9%


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Customer Deposits Growth

Customer Deposit Base


78.0 69.6 81.6

99.3

126.8

23.9 24.227.8

36.4

54.2

-

20.0

40.060.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

2007 2008 2009 2010 2011

RwF Bn

Corporate Retail

CAGR= 15.5%181.0

101.9 93.8 109.5

135.7

Customer Deposit Segmentation

70.1%

29.9%

Corporate Deposits Retail Deposits


73.2%

26.8%

Corporate Deposits Retail Deposits

Structure of Deposits, 31st December 2011 Customer Deposits Concentration

29

Corporate: RWF 126.8 Bn Retail: RWF 54.2 BnNotes: * depositors with total balances above 5% of shareholders equity of BoK


Largedepositors*

22.4%

Other77.6%

31 December 2011 31 December 2010CBTerm

Deposits,

27.1%

CBCollate

ralDeposit

s,3.7%

CBDeman

dDeposit

s,69.2%

RBTerm

Deposits,

12.6%

RBSavingsDeposit

s,1.5%

RBDeman

dDeposits,

85.8%

LargeDepositors*,14%

Other,86%


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Corporate Deposits: Rwf 126.8

Description Key Segments

Clients include corporate, SMEs and NBAs*

Interest rates were in the 15.0%-17.25% range as of

December 2011

Key products:

CAPEX loans: long-term loans for investment or

expansion of the business

Commercial mortgage loans: typical customer

participation at 30% of property value, typical

tenor of up to 10 years

Working capital loans: financing business needs

Corporate Banking

Corporate Loans: RWF 89.5 Bn

71.4%

24.6%

4.1%

79%

11%

10%

Number of Corporate Accounts


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Description Key Segments

Retail Banking

The Banks retail business is primarily focused on mortgages andconsumer loans with notable share of overdrafts

Key products:

Mortgage loan: up to 10 years with typical customer participation

at 30% of property value

Consumer loan: up to 12x monthly salary and 48 months

Overdraft: up to 50% of monthly salary (normally repaid in 30days)

Other products include credit cards and asset leasing

Strategy:

Build a ubiquitous branch footprint throughout the country

Retail Loans: RWF 41.2 Bn

44.3%

10.5%

40.1%

5.1%

Retail Deposits: RWF 54.2 Bn

12.6% 1.5%

85.8%

Number of Retail Accounts

31


Build sufficient channel capacity to be able to service 500,000+

clients by 2015

Build out the retail product lineup to achieve relevance to the

daily lives of the banked population

Expand credit card/debit card offering to other providers

(MasterCard, Amex etc)

8,199 9,145 11,52415,131

61,919

18,419 20,57929,081

49,712

76,810

-10,00020,00030,00040,000

50,00060,00070,00080,00090,000

2007 2008 2009 2010 2011

Loans Deposits Accounts

Our Products

Consumer loans Overdrafts

Mortgages Other

RB Term Deposits RB Savings Deposits

RB Demand Deposits


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REVIEW OF F INANCIALPERFORMANCE 2011


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Balance Sheet HighlightsTotal Assets Total Liabilities

121.5 120.8

151.9

197.7

287.9

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

2007 2008 2009 2010 2011

CAGR - 24.1%

Rwf bn

108.7 104.9133.3

165.8

226.3

0.0

50.0

100.0

150.0

200.0

250.0

2007 2008 2009 2010 2011

Rwf bn

CAGR- 20.1%

33

Shareholders Equity Net Loans

12.815.9 18.5

31.9

61.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2007 2008 2009 2010 2011

Rwf bn

CAGR - 48.1%

48.7

72.177.1

101.4

123.1

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2007 2008 2009 2010 2011

Rwf bn

CAGR- 26.1%


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62.9%

6.6%

21.4%

9.1%

DepositsDue to BanksShareholders Equity

68.6%9.6%

16.1%

5.7%

Deposits Due to Banks

Shareholders Equity Other

Funding Structure, % Liquidity Ratios

Funding

31 December 2011 31 December 2010 Ratios 2007 2008 2009 2010 2011

Net Loans/Customer

Deposits

47.8% 76.8% 70.4% 74.7% 68.0%

Net Loans /Total

Assets

40.1% 59.7% 50.8% 51.3% 42.8%

Liquidity Ratio 35.9% 34.7% 42.1% 43.9% 60.8%

, g g s

Deposits are the primary source of funding with share of deposits

exceeding 60% as at December 2011.

The Bank has also signed two long-term credit lines with the European

Investment Bank and the French Development Agency worth 5

million for 7 years and $20 million for 10 years respectively.

In 2011, a third credit line was signed with the African Development

Bank worth $12 million for 10 years.

The Bank had drawn down EUR 2.6m & USD 5.0m on the EIB & AFD

loans respectively by December 2011

34

Source: Bank of Kigali audited IFRS Statements

14.0% 14.9%

19.9% 20.1%

29.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2007 2008 2009 2010 2011

I S Hi hli h


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56.3%

14.7%

26.0%

3.0%

Net interest income

Fees & Commisions

FX gains

Other non- interest income

55.1%

13.3%

24.8%

6.7%

Net interest income

Fees & Commisions

FX gains

Other non- interest income

Income Statement HighlightsTotal Operating Income Composition of Total Operating Income

11.1

14.316.0

21.1

29.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2007 2008 2009 2010 2011

CAGR- 27.5%


50.2%

15.3%

34.5%

Personnel expenses

Depreciation and amortization

Other operating expenses

49.8%

17.1%

33.1%

Personnel expenses

Depreciation and amortization

Other operating expenses 35

Total Operating Costs

4.4

5.77.1

10.0

14.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2007 2008 2009 2010 2011

CAGR- 34.1%

Composition of Total Operating Expenses


P fit bilit


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39.5% 39.8%44.1%

47.5% 48.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2007 2008 2009 2010 2011

9.5%

9.0%

8.2% 8.3%

8.4%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

2007 2008 2009 2010 2011

Net Interest Margin, % Cost / Income, %

Profitability

Nigeria average: 6.8%SA average: 6.8%

Nigeria average: 67.3%

SA average: 59.1%

4.1%4.7%

3.9%3.5% 3.6%

0.0%0.5%1.0%1.5%2.0%

2.5%3.0%3.5%4.0%4.5%5.0%

2007 2008 2009 2010 2011


SA average: 1.1%37.5% 39.4%

30.7%

24.5%

18.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

2007 2008 2009 2010 2011

RoAE, % RoAA, %

36

Source: Bank of Kigali Audited IFRS Statements 2007-2010,Bank of Kigali audited IFRS Statements 2011, African Alliance Research 2012


SA average: 14.4%

Asset Quality


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Cost of Risk*, %

Asset Quality

Notes: * LLP charge / Average gross loans for period

NPLs Coverage

1.1%0.4%

1.9%

2.5%

3.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%4.5%

2007 2008 2009 2010 2011

7.5 9.2 5.8 8.1 10.1

72.6%

55.3%57.1%

45.8%

69.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2007 2008 2009 2010 2011

Rwf Bn NPLs Coverage ratio

Collateral Structure

37

Source: Bank of Kigali Audited IFRS Statements 2007-2010, Bank of Kigali Unaudited IFRS Statements 2011

Loan Book Quality (NPLs %)

CashCover

7%

Guarantees9%

RealEstate52%

Unregistered

12%

Unsecured20%

19.4%

15.4%

8.3% 8.5% 8.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2007 2008 2009 2010 2011

NPLs by segment

Corporate,75%

Retail, 25%


Corporate,84%

Retail, 16%

Key Investment Highlights


38/43

Sound MacroFundamentals

Politically stable country with sound governance

Very attractive demographic profile: population of 10.8million with 83% below the age of 40

Robust economic growth of 4.1%-11.2% between 2006-2010 and 8.8% expected for 2011

Moderate inflation: Maintained single digit inflation at 8.3% in 2011 vis--vis East African Community Partners

Very friendly business environment, recognized as the 2nd most reformer globally 2005-2011 in World Bank Doing Business Report

Significant headroom for growth given low banking penetration

Total assets/GDP of 23%

Large unbanked population of approximately 80%

Well regulated banking sector: fairly conservative regulator relative to regulators in the East Africa region

Market leadership by

Total assets (RWF 287,900 million as of 31 Dec 2011) 32.4% market share

Net Loans (RWF 123,131 million as of 31 Dec 2011) 29.4% market share

Significant

Banking Sector

Potential

Market Leadership

Key Investment Highlights

38

Deposits (RWF 181,020 million as of 31 Dec 2011) 28.0% market share

Shareholders equity (RWF 61,584 million as of 31 Dec 2011) 40.8% market share

Relatively high capital adequacy ratios ranging from 14.0% - 28.1% between 2007 and 2011

Manageable level of non-performing loans 8.3% of gross loans in December 2011, down from 19.4% in 2007

Loans to deposit ratio range of 54.8% - 72.7% between 2007 and December 2011.

Conservative

Business Model

Experienced

Management

Team

Management team with combined banking sector experience of 79 years

Complemented by an experienced and diversified Board of DirectorsTrack record of producing stellar results

Profitable GrowthRobust asset growth at a CAGR of 24.4% to RWF 287,900 million (2007-2011)

ROAA ranging from 3.0% - 4.1% between 2006 and 2011


39/43

COUNTRY OVERVIEWINFORMATION

39

Rwanda Country Profile


40/43

Rwanda Country Profile

Nominal GDP (2011) US$ 6.4 billion

Nominal GDP Per Ca ita 2011 US 595

Rwanda has been recognized by the World Bank as the second most

active reformer globally 2005-2011

Since 2005, Rwanda has implemented over 22 business regulation

reforms in the areas measured by the World Bank Doing Business

Index

Today, entrepreneurs can register a new business in 24 hours as well

as online

Area 26,338 sq km

Population (2010) 10.7 million

Official Languages Kinyarwanda, French, English

Capital Kigali

Currency Rwandan Franc (RWF)

Credit Rating B/Stable (Fitch Ratings)

B/B (Standard & Poors)

Business Environment

Macro Economic Indicators

National Facts

40

Real GDP Growth Rate 2011 8.6%

Real GDP Growth Rate 2012E 7.6%

Inflation Rate (Feb 2012) 7.9%

Private Sector Credit Growth (2011) 28.4%

External Debt to GDP (2010) 14.9%Currency Depreciation (2011) 1.6%

FDI as % of GDP (2011E) 1.9%Source: IMF, CIA World Factbook, Ministry of Finance and Economic Planning, NationalInstitute of Statistics Rwanda, National Bank of Rwanda,

Sound Macro Fundamentals


41/43

GDP per Capita continues to grow Population Pyramid for Rwanda, 2011

Sound Macro Fundamentals

9.2 9.4 9.6 9.8 10.0 10.2 10.4

338399

489 533562

593632

0

100

200

300

400

500

600

700

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011E 2012F

US$Mln

Population (LHS) Nominal GDP Per Capita (RHS)

20-39

40-59

60 and above

3.1 3.7 4.7 5.2 5.6 6.4 6.6

8.8% 9.1%

15.4%

10.3%

2.3%

8.3%7.5%

0.0%

2.0%4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

0

1

2

3

4

5

6

7

2006 2007 2008 2009 2010 2011 2012E

Bn

Nominal GDP (US$ Bn) Inflation (%)

Healthy GDP growth with moderating inflation

41Source: National Institute of Statistics RwandaSource: Ministry of Finance and Economic Planning, IMF

54% of the population is under 19 years.

83% of the population is under 40 years.3% of the population over 65 years.

30.0% 20.0% 10.0% 0.0% 10.0% 20.0% 30.0%

0-19

Female % Male %

Macroeconomic Indicators


42/43

GDP Breakdown by Economic Activity

Rwandas exports are dominated by coffee, tea and

minerals(tin, coltan and wolfram).

The country remains a net importer. Major imports include

intermediary goods especially construction materials,

consumer goods, energy and lubricants and capital goods.

Informal cross-border trade is a significant component of

Rwandan external trade (approx. 18% of total exports). More

than 78% of these exports are destined to DRC.

Official reserves were estimated at 7.7 months of goods

Agriculture,

31.9%

Real

Transport, storag

e,

communication,

7.5%

Manufacturing, 6.6%

Education,

5.5%

Transport,

storage,

communication,

7.5%

Finance,

insurance,

2.8%

Mining and

quarrying, 1.3%

Trade Structure

12%11% 10%

14% 15%

11%

14% 15% 13%

0%

5%

10%

15%

20%

2003 2004 2005 2006 2007 2008 2009 2010 2011

Current Account as a % of GDPTrade Deficit as a % of GDP

42

Source: NBR Monetary Policy Statement

Source: Ministry of Finance and Economic Planning, IMF

imports for Dec 2011

4%

9%

12% 13%

17%

0%

5%

10%

15%

20%

2007 2008 2009 2010 2011

Current Account Deficit as a % of GDPSource: National Institute of Statistics Rwanda

Source: National Institute of Statistics Rwanda

Wholesale and

retail

trade, 12.9%

Construction,

8.3%

estate, business

services, 8.0%

Contact Information


43/43

For information please contact:

Lado Gurgenidze

Chairman of the Board

Email: [email protected]

Mobile: +995 599 477 272

James Gatera

Chief Executive Officer


Mobile: +250 78 814 3000

Lawson Naibo

Chief Operating Officer


Contact Information

John Bugunya

Chief Finance Officer


Mobile: +250 78 830 6100

43

Linda Rusagara

Investor Relations Officer


Mobile: +250 784 300 334

Visit our website, www.bk.rw, or follow us on Scribd to access our Investor Presentations, PressReleases and Annual Reports.

Telephone number: +250 252 593100. Address: Plot 6112, Avenue de la Paix, Kigali Rwanda

Shivon Byamukama

Company Secretary


Mobile: +250 78 838 4547

Documents

Bank of Kigali Investor Day Presentation 27th April 2012