1

Equity Bank

1

A journey of identifying with our customers’ needs and aspirations

2

2

Giving Dignity and Honour by Offering Access and Affordability with Savings-Led Model to the Unbanked

3

• C

2004

Equity 1.0n Build strategyn Develop modeln Establish capacityn Build culture and

philosophy

1994

Removed Barriers • No Account Opening Balance• No Minimum operating balance• Just needed an ID to open an

account• Access to liquidity – abolished

notices to withdraw & restriction on withdrawal amount

• Promotion of a savings culture –no ledger fees/account maintenance fee/zero cost internal standing orders

Making the unbanked banked from 4% to current 72%

DEMOCRATISED BANKING

– Retail Branches– Supreme Branches– Agent Banking– ATMs– Mobile Banking – Merchant Banking –Acquiring all leading Card Associations –

VISA, MasterCard, AMEX,JCB, UnionPay, Diners etc– Diaspora Banking – International Payment gateway ( PayPal, Equity Direct, Western

Union, MoneyGram, SWIFT, RTGS, VISA direct etc)– Embarked on regional expansion (Uganda, Tanzania & Zanzibar,

Rwanda, South Sudan & DRC

4

Driving Financial Inclusion and Scaling Enterprises

Pursued a classless banking – Inclusion

3

Our clients are across many segments

Source: Finacle data

Personal customers Business customersNumber of customers

39,680

142,080

499,200

8,238,400

8,919,360

128

256

16,640

576,000

Number of customers

743,024

Middle

Entry level banking

3

2

1

Small Enterprise

Micro enterprises

7

5

4

Medium Enterprise

6

HNWI Large Enterprises Large Enterprises and Corporates

3Upper middle

TOTAL

KENYA

Basic banking Emerging enterprise

Zero-based banking

Inclusion

6

Equity has earned recognition in 2016

Category 1st 2nd 3rdBest Overall Bank Equity BankBest Bank Tier 1 (Big Banks) Equity BankBest Bank in SME Banking Equity BankBest Bank in Retail Banking Equity BankBest Microfinance Bank Equity BankBest in Agency Banking Equity BankBest in Asset Finance Equity BankBest Bank in Mortgage Finance Equity BankProduct Marketing Equity BankBest in Internet Banking Equity BankBest in Mobile Banking Equity BankFastest Growing Bank Equity BankBest in Customer Satisfaction Equity Bank

4

7

Equity has earned recognition in 2016

Equity’s Global Credit Rating

Aug 2016

8

Equity has earned recognition in 2016

Equity’s International Rankings

Equity Bank Overall Soundness(Capital Assets Ratio)

Performance(Profits on capital) (Return on assets)

2016 Global Rank 835 43 34 8

2015 Global Rank 916 88 18 8

5

9

10

Market Capitalization(as at 30th June 2016)

In KES billion

2.46.1

21.132.4

41.6

53.5

68.771.8

99.6

143.4

43.4

HF NBKCoop CfC Stanbic

BBK I&M NICStanchartKCBEquity DTB

6

Source: B.D

Equity Bank’s market capitalization constitutes 25% of the total market value of the 11 banks listed on the NSE

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Driving Financial Inclusion and Scaling Enterprises

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20141994 2004

Equity 2.0• Scale Global

distribution network

• Build socio-economic brand

• Reposition strategy for future

• Change legal and operating structure

• High growth and financial leadership

INCLUSION

Banking everyone and every sector

Digitization

12

Giving customers freedom , choice & control

Eazzy, Secure, Convenient Banking

7

13

35%9%

20%36%

52%

16%12%

23%

9%

35%20%

36%

What customers said

• They want banking services• They want to chose which channel• They want more free time • They prefer payment convenience• They want access to liquidity – digital cash• They want access to self service products

and services –digital products

14

Remove barriers to time and place

Over 750,000 responded and validated what our data was showing

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15

Continuous Growth in Mobile Banking4

… More transactions now processed under 3rd party infrastructure saving on fixed costs

16.2

24.924.6

13.6

27.3

42.0

60

120

50

130

140

40

0

10

70

20

30

18.8

37.2

24.1

Q3 2015 Q3 2016

137.3

46.0

18.323.1

Q3 2014Q3 2012

20.420.0 21.5 20.7

Q3 2013

Transactions (Millions)

Agency

ATM

Branch

Equitel

16

Execution on Digital Banking(Equitel customer numbers up 106% growth YoY)

1,250

1,500

500

1,750

1,500

1,250

1,000

750

1,750

250

0

2,000

2,250

250

500

750

1,000

0

2,500

2,250

2,000

2,500

Nov2015

Jan2016

Dec2015

Apr2016

1,178

1,500

Sep2015

Aug2016

1,963

Mar2016

2,072

Oct2015

May2016

Feb2016

1,369

1,665

1,861

+106%

Jun2016

1,5911,760

Jul2016

Sep2016

2,2882,367 2,426

2,196

Linkage to M-Banking SIM uptake

KES “000”

87%

88%

89%89%

90%

90%90%

91%

92%92%

4

93% 94% 94%

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17

Equity Kenya Channel Market Share Trend4

21%25%

12%

2011

12%11%

2015

52%

23%

11%

20142012

10%

15%

26%

12%

2010

10%

26%

40%

21%

12%

2013

29%

23%

44%40%

42%

49%

59%

MerchantsATMBranch Agents

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Execution on Digital Banking(Mobile Customer Transaction Numbers & Value Trend)

0

320

300

280

260

240

220

200

180

160

140

120

100

80

60

40

20

400

350

300

250

200

150

100

50

0Nov2015

97

132

Oct2015

297118

Sep2015

69

105

+426%

Sep2016

366

313

82

Aug2016

332

292

Jul2016

272

Jun2016

264

253

May2016

234

234

Apr2016

206

216

Mar2016

177132

197

Feb2016

152

181

Jan2016

166

Dec2015

115

151

Cumulative M-Banking Value (KES billions)Cumulative M-Banking Transactions numbers (millions)

4

196%

10

19

Execution on Digital Banking(Count of loan disbursements through Mobile vs. Branch)

0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

4,400

4,800

5,200

5,600

6,000

6,400

6,800

Jul2016

Jun2016

4,327

769(18%)

3,558(82%)

May2016

3,981

743(19%)

3,238(81%)

Apr2016

3,640

713(20%)

2,927(80%)

Mar2016

3,270

679(21%)

2,591(79%)

Feb2016

2,944

646(22%)

2,297(78%)

Jan2016

2,629

612(23%)

2,017(77%)

Dec2015

2,337

573(25%)

1,764(75%)

Nov2015

1,981

531(27%)

1,450(73%)

Oct2015

1,659

485(29%)

1,174(71%)

Sep2015

1,415

Aug2016

966(68%)

Sep2016

3,876(83%)

4,671

795(17%)449

(32%)

827(16%)

4,207(84%)

5,347

846(16%)

4,501(84%)

5,035

Mobile BranchMobile

In Thousands

Cumulative

4

20

Execution on Digital Banking(KES 30 billion disbursed through Mobile Channel with KES 6 billion outstanding)

8.7

6.95.4

3.82.5

1.6

6.26.36.15.64.7

3.62.52.01.81.51.51.00.8

+634%

Nov’15

Oct’15

Sep’15

Jun’16

Jul’16

20.8

27.2

May’16

17.2

Aug’16

Apr’16

14.0

24.0

Mar’16

11.0

30.0

Feb’16

Jan’16

Sep’16

+1,791%

Dec’15

Cumulative Loan Value Disbursement (KES "Billion")Eazzy Loan Volume Outstanding (KES "Billion")

4

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Industry Benchmark: Equitel Market Share

Safaricom

67.0%

Airtel19.4%

Orange

11.2%

Equitel 2.4%

June 2015

Total 36,113,121

Safaricom

64.7%

Airtel19.2%

Orange

12.4%

Equitel3.7%Dec 2015

Total 37,715,944

Safaricom

65.6%

Airtel17.5%

Orange

12.5%

Equitel 4.4%

Mar 2016

Total 38,376,811

Notes

• Equitel market sharehas grownsignificantly by 112%from 2.4% inDecember June 2016to 5.1% in June 2016.

• Total marketsubscribers stands at39.45 Milliontranslating to 90%mobile penetration upfrom 83.9% in June2015.

• Safaricom and Airtelhas lost market shareof 2ppt and 2.8pptrespectively whileEquitel and Orangehave gained 2.7pptand 2ppt respcetivelyin the last one year.

Source: Communications Authority of Kenya Q4 2015/2016 Industry Statistics

Safaricom

65.1%

Airtel16.6%

Orange13.2%

Equitel5.1%Jun 2016

Total39,459,20

Prerequisites

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Robust ICT platform

q Robust ICT Platform(Reliable, Stable, high available, high capacity, flexible platform, secure)

§ Supported by Tier 4 Datacenters § Connected to 3 dedicated power lines from KPLC§ Two 1500kva generators standby dedicated for the datacenter§ Connected to 10 Network providers for full redundancy

§ Powered by Enterprise hardware and software platform § Oracle Engineered Systems – Super clusters best compute servers in the world

today§ Infosys Core banking can support 100 million customers§ Oracle Enterprise SOA Middleware§ Oracle BI and Big data platform§ Oracle Right now CRM platform§ Oracle Cloud extending Platform as a service§ APIGEE – API Management Cloud platform as a service§ OpenWay WAY4 card management system

§ Certified Security standards§ PCI-DSS certified§ Global Security operation centers, 24/7 global scouting

§ Transaction through put capacity of 2000 Transactions per second

PCI DSS ComplianceEquity Bank has obtained the prestigious global Payment Card Industry Data Security Standard 3.1 (PCI DSS 3.1) certification effective 28th August 2016, becoming the first Kenyan bank and one of the first banks in East Africa to do so.

The certification affirms Equity’s adherence to international security standards related to the protection of customer information.

This certification confirms that customer transactions are safe and meet the highest security standards as required by the major card associations including VISA, MasterCard and American Express (Amex)

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Equity Bank PCI DSS 3.1 Certificate

Equity Bank Partnership with a Global Security Operation Centre (GSOC)

Equity Bank has partnered with Paladion, a Global Security Operation Centre (GSOC) in line with our strategic vision of providing secure Banking services to our customers.

The GSOC is the central nerve center that offers real-time internal and external threats detection and cyber defense on a 247 basis.

The GSOC is fully equipped with specialized technology, processes and expertise to monitor, assess and proactively defend the Bank from any potential threats both internal and external.

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Equity Bank Partnership with a Global Security Operation Centre (GSOC)

Cyber Defense Center• Based locally and aboard for tactical Security Monitoring and

Incidence Response• 365x24x7 Security monitoring of internal and external threats• Local and Global Security threats and intelligence feeds

Brand Protection• Full time security protection of Equity Bank Digital footprint

including all sites, mobile apps and other digital eco-systems.

Vulnerability management • End-to-end infrastructure and systems security assessment

and controls implementation including penetration testing, systems configurations review, architecture design and review

Capability, Capacity, Reliability and Competence

• High availability environment• Big Data• Analytics• Cloud Computing

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“Equity Bank is now giving you freedom, control and unmatched flexibility in every

way you handle your money and on a scale never seen before…

Pay, send, receive, save, borrow, invest (and much more) in an eazzy, secure, &

convenient manner”

TALK TO CUSTOMERS

Equity’s customer blue print depicts our clients have a different profile from those of the competition.

They tend to be pragmatic and rational in decision making. ‘Pragmatics with dreams of the future’EazzyPay/Equitel/EazzyApp/EazzyLoan

EazzyNet/EazzyChama/EazzyLoan

EazzyNet/EazzyChama/EazzyLoan

EazzyBiz

EazzyBiz

EazzyAPI?

EazzyPay/Equitel/EazzyApp/EazzyLoan

EazzyPay/Equitel/EazzyApp/EazzyLoan

EazzyPay/EazzyApp/EazzyLoan

EazzyPay/EazzyApp/EazzyLoan

Equitel/EazzyChama/EazzyLoan

CUSTOMER SEGMENTATION

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Banking made Eazzy

EazzyAPI

Equity Digital DNA

EazzyNet

Banking anywhere anytime

Eazzy, Secure, Convenient, Reliable and Dependable

EazzyLoan

No queues, No forms

EazzySave

Save for your goals

EazzyPay

Paying for goods , services & bills

EazzyApp

More life , less banking

Diaspora Banking

Work globally, bank locally

EazzyBiz

Cash & liquidity management made eazzy

EazzyChama

More investments, less booking keeping

My Money My Phone My Life

Turn Equity from Somewhere You Go to Something You Do - Lifestyle (Freedom, Choice,

Control)

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202420141994 2004

Equity 3.0• Leverage on technology

and innovation• Convergence of financial

products and services• Segment inclusion for

focused strategic delivery

• Scale brand visibility and loyalty

• Fanatical operational discipline

• Seamlessly integrate channels to improve experience

Re-design operating model for efficiency and high performance

• Disrupt our self -virtualization

• Scale agency banking

• Digitize process • Increase access

and enhance experience

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Thank You

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Email: info@equitygroupholdings.com

Web site: www.equitygroupholdings.com

KeEquityBank

@KeEquityBank