HALF YEAR 2015 EARNINGS RELEASE

2.1 million customers, Loans KShs 2.1 billion, Deposits KShs 128 million, Loan accounts 800,000

Over 250 Branches,11,000 Agency Outlets

(up 39%)

Customer Numbers: Over 7 million (up 69% Dec-14 )

Enhancing Financial Inclusion

KShs. 1,000,000,000on Foundation

Digital channels

69% of total Transactions

Milestones to Date

972,491 loan applications

(up 330% ) 71% on mobile

2

KShs 3B disbursed

East Africa Awards for 2015

3

Best Commercial Bank

Best Regional Bank Most Socially Responsible Bank

Kenya Commercial Bank Limited AA(KE) and A1+(KE) in the long term and short term respectively; outlook Stable.

4

Channel Transactions in Millions

4.6

1.2

1.8

6.3

10.4

8.8

3.0 3.3

6.2

9.6

Mobile Banking Agency Banking POS ATMs Branch Teller

Jun-14

Jun-15

Up 91%

Up 150%

Up 83%

Down 2%

Down 8%

Strong growth in Mobile and Digital channels, contributing 69% of all transactions

5

Deepening Financial Inclusion with KCB Mpesa - Over KShs 2B new loans and 2M Customers

7.9%

20.4%

25.8%

22.0%23.7%

0.3%

18 - 25 26 - 30 31 - 35 36 - 40 41 - 65 >66

Loan Amount Bracket

Age profile Loan Maturity

KCB Mpesa (KShs M)

0.8%2.3% 1.2%

11.3%

16.6%

23.9% 24.7%

17.0%

2.1%

0 - 200 200 -500

500 -1,000

1,000 -2,500

2,500 -5,000

5,000 -10,000

10,000 -20,000

20,000 -50,000

50,000 -100,000

362

700

937 954

387

957

1,341

1,796

Mar-15 Apr-15 May-15 Jun-15

Net Loans Total Disbursements

40%37%

23%

1 month 3 months 6 months

6

Digital Channels delivering stronger overall growth – over 2/3 transactions

57%

43%

69%

31%

Alternative Channels

Branch Transactions

Jun-15 Jun-14

Event Ticketing using the KCB Pepea Card• 6 Billers launched in Jun-15• Transactions over KShs

4.7M• 140,000 KCB Pepea

transactions valued at KShs 0.3 Billion

Good Momentum in Growing the SME Book

7

Growing customers by

30%

$150M in long term funds from

IFC in 2015

3 year KShs 1B Start up fund

Increase lending to SME to KShs 40B in 3 years

SME Activities:•Over 300 SME Workshops•Over 26,000 customers

trained•Over 2,200 customers

exposed to new markets

SME Performance:• 30% growth in customer

numbers• 29% L/D Ratio• Improved NPL to 6%•Opportunity to grow the

Assets

KCB’s SME Experience

MACRO-ECONOMIC OVERVIEW

Sep-14 Dec-14 Mar-15 June-15 Current

Central Bank Rate

KBRR

Interbank Rate

Kenya Inflation

Crude Oil Price USD/Barrel

Average Lending Rate

FX Rate (KShs./$)

8.5 8.5 8.510.0 11.5

9.1 9.18.5 8.5 9.9

16.2

16.015.4 15.2 15.2

6.7 7.2 8.210.6

14.7

6.66.0 6.3

7.07.0

97.553.0 53.3

63.2 57.8

89.4 90.6 92.4 99.3

100.8

Operating Environment - Kenya

9

Dec-14 Mar-15 June-15

91 day T-Bill

Tanzania Inflation

FX Rate (TShs./$)

13.26.86 7.5

4.8 4.3 6.1

Operating Environment – Tanzania & Uganda

10

Tanzania Highlights:TShs depreciated 21% in the last yearInflation driven by food costGeneral Elections - October 2015 (Current president not eligible)

Uganda Inflation

FX Rate (Ugx./$)

1.8 1.9 4.9

Uganda Highlights:• UGX currency depreciation hit 3,500 July 2015• Inflation rise due to food prices• Widening current account deficit• Electioneering process underway

91 day T-Bill

2771 2975 3300

11.3 13.2 14.1

1733 1865 1995

Dec-14 Mar-15 June-15

91 day T-Bill

Rwanda Inflation

FX Rate (RWF/$)

Operating Environment – Rwanda & Burundi

11

Highlights:• Fitch affirmed B+ rating• Parliamentary support for Presidential 3rd term• Key interest rate left unchanged at 6.5% since cutting it by 50bp in 2014• Growth forecast at 6.5% in 2015 & 2016

Burundi Inflation

FX Rate (BIF/$)

3.8 4.77.7

Highlights:• Political Crisis and uncertainty• Increasing inflation and cost of essential commodities due to political unrest

689.8 690.5707.4

4.43.4 3.5

1.9-1.3

2.7

15951558.9 1562.5

12

Operating Environment – South Sudan

Highlights:

• Political conflict in the 3rd year

• Lower revenue collection (oil and non-oil related)

• Fiscal Budget deficit:

• Expenditure SSP 10.6B

• Revenue SSP 3.2B (Oil revenue SSP 1.2B, Non Oil SSP 1.7B, Donors SSP SSP 0.3B)

• Deficit SSP 7.4B

• Introduction of new tax framework to enhance non-oil revenues

• Cautious optimism on Peace Agreement

FINANCIAL PERFORMANCE

Asset Distribution

Actual Jun-15

ActualJun-14

% Y-O-Y Change

Asset Portfolio

Cash and balances with Central Bank 27,884 25,486 9%

Balances with other institutions 79,985 51,787 54%

Investments in Government securities 112,595 93,330 21%

Investment securities 876 2,008 -56%

Net loans and advances 320,601 244,014 32%

Fixed assets 11,039 9,889 12%

Other assets 13,630 13,188 3%

Total Assets 566,610 439,701 29%

4%

20%

19%

57%

5%

22%

18%

55%

0% 10% 20% 30% 40% 50% 60%

Other Assets

Securities

Cash & Bank Balances

Loans

Jun-14 Jun-15

14

Asset Portfolio and Distribution (KShs Mn.)

Growth in Loan Book

Net Loans & Advances (KShs. Bn)

Loan segmentation June 2015

35% 14% 32%15% 6%

CAGR-16.4%

*Others:- Mining,Energy&Water,Tourism,Restaurant,Hotels and Financial Services

175202 214

244

321

Jun-11 Jun-12 Jun-13 Jun-14 Jun-15

15

3%

13%

7%

6%

18%32%

13%

8% Agriculture

Manufacturing

Building and Construction

Transport and Communication

Real Estate

Personal/Household

Trade

Others*

3%

16%

12%

4%

16%

33%

10%

6%

Loan segmentation June 2014

Asset Quality and NPL Coverage

NPL Ratio

Coverage Ratio

8.8%

6.7% 6.3%7.1% 7.3%7.3%

5.6% 5.2%

6.4% 6.5%

Jun-14 Sep-14 Dec-14 Mar-15 Jun-15Group Bank

Improved NPL Ratios in H1 2015 compared to H1 2014

IFRS=(IFRS Provisions/Gross NPL) CBK=(Interest in Suspense+General Provision+Specific Provision)/(Gross NPL)

44.0%

54.8% 56.4% 55.5%

45.7%

68.6%77.1% 85.0% 77.6%

71.8%

Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

IFRS CBK

16

Liabilities and Funding Base (KShs Mn.)

Total liabilities increased by 29 % due to; Deposits up 26% due to customer number

growth. Borrowed funds up 71% due to additional

funding from IFC, SCB & GIB ($170M)

2%

78%

14%

6%

1%

80%

15%

4%

Other Liabilities

Deposits

ShareholdersFunds

Bank & Debt Balances

Jun-14 Jun-15

Liability & Equity Contribution Key Highlights

ActualJun-15

ActualJun-14

% Y-O-YChange

Funding Portfolio

Customer Deposits 443,036 351,603 26%Balances due to other banks 12,273 3,639 237%

Other liabilities 10,728 6,488 65%Long-term debt 22,474 13,117 71%

Total Liabilities 488,512 374,846 30%

Share capital 3,025 2,984 1%Reserves and premium 75,072 61,870 21%

Proposed dividend 0 0 0%Shareholders’ Equity 78,097 64,855 20%

Total Liabilities and Equity 566,610 439,701 29%

17

Deposits GrowthCustomer Deposits Growth (KShs.Bn) Deposits by Type

216

279 288

352

443

81%

72% 74%69%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

50

100

150

200

250

300

350

400

450

500

Jun-11 Jun-12 Jun-13 Jun-14 Jun-15

Deposits L-D Ratio

13% 3%29% 26%22%

CAGR-19.7%

64%

8%

23%

5%

52%

18%

23%

7%

0% 10% 20% 30% 40% 50% 60% 70%

Demand

Savings

Term

Call

Jun-14 Jun-15

18

16.8%

19.2%20.9% 21.0%

17.2%

Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

20.7% 20.0%21.0%

18.1%15.9%

Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

15.9% 16.0%

17.1% 17.1%

14.6%

Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

Capital Adequacy

19

Core Capital/ Risk Weighted Assets

10.5%

Total Capital/ Risk Weighted Assets Core Capital/ Total Deposits

14.5%

8.0%

Distribution of PBT by Country

June 2015

20

Burundi, 0.0%

Rwanda, 1.3%Uganda, 0.4% Tanzania, 1.4%

South Sudan, 6.9%

Kenya, 90.0%

Burundi, 0.0%

Rwanda, 0.6%

Uganda, -1.2% Tanzania, 0.7%

South Sudan, 7.1%

Kenya, 92.7%

June 2014

Consolidated Statement of Profit or Loss (KShs. Mn.)

ACTUAL Jun-15

ACTUAL Jun-14

Y-o-Y % Change

Interest Income 25,854 22,409 15%

Interest Expense (6,408) (5,275) 21%

Net interest income 19,446 17,134 13%

Foreign exchange income 2,014 2,220 -9%

Gross fees and commissions 6,844 5,669 21%

Other income 2,411 2,500 -4%

Total operating income 30,715 27,523 12%

Total operating expenses (14,919) (13,639) 9%

Provisions for bad debts (2,593) (2,210) 17%

Profit before tax 13,202 11,674 13%

Tax (3,961) (3,502) 13%

Profit after tax 9,242 8,172 13%

21

Key Statistics and Performance Ratios

22

Return on Average Assets

Return on Average Equity

Cost to Income

Gross NPL to Gross Loans

NPL Coverage

Debt to Equity

Non funded income to total income

Staff costs to total income

Cost of funds

Net Interest Margin

Cost of risk

Loan to Deposit Ratio

Growth of Net Loans and Advances

Growth of Customer Deposits

Growth of Profit before tax

4.0% 3.8% 3.5% 3.5%

25.2% 24.2% 22.5%

48.3% 50.2% 51.2%

6.7% 6.3% 7.1%

69.4% 65.2% 77.6%

18.5% 16.8% 16.0%

39.5% 38.0% 33.3%

24.7% 24.1% 27.4%

3.2% 3.2% 2.9%

9.5% 9.7% 8.7%

1.6% 1.8% 0.8%

75% 75% 74%

17% 25% 27%

16% 23% 27%

17% 18% 12%

24.0%

48.6%

7.3%

71.8%

28.8%

36.7%

25.1%

2.9%

8.5%

1.7%

72%

31%

26%

13%

Q2’14 Q3’14 FY’14 Q1’15 H1 ‘15

3.9%

25.5%

49.6%

8.8%

68.6%

20.2%

37.7%

24.9%

3.1%

9.5%

1.9%

75%

17%

16%

17%

Focused on our Business Drivers

23

Over 7 million customers

KCB MpesaRoad Annuity

Revenue Collection – CountiesSocial Safety Net

Relaunch S&L as a developer for affordable housing

14% Contribution

Launch of KCB Insurance and Recruitment for Brokerage complete

69% of transactions up from 57%

Overall Project Status:41% complete

CIR: 100bps improvement to 48.6%NPL:150bps improvement to 7.3%

Good adequacy ratiosNon Operating Holding

Company to be operationalizedConsideration for 2016

ACHIEVED

Enhancing Financial inclusion to 10 million customers

Building partnerships in the telecommunication, transport and energy sectors and with governments across the region

Race to a million homes through our affordable mortgage proposition

Integrated product/service offering on bancassurance, investment banking, brokerage services

Triple mobile transactions and agency footprint to enhance our digital payments

T24 refresh to increase reliability and capacity to over 25 million customers

Improved efficiencies: managing the cost to income ratio and loan quality

Raising long term capital (Equity & Debt)

1

2

3

4

11

5

6

7

8