8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
1/43
BANK OF KIGALI
INVESTOR DAY PRESENTATION
27th April, 2012
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
2/43
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.
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
3/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
4/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
5/43
HIGHLIGHTS OF 2011FINANCIAL PERFORMANCE
5
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
6/43
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%
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
7/43
STRATEGIC OUTLOOK
7
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
8/43
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
9/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
10/43
CORPORATE GOVERNANCE
10
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
11/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
12/43
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%
, .
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
13/43
BANKING SECTOR OVERVIEW
13
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
14/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
15/43
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.
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
16/43
Timeline of Foreign Investment
2004 2005 2006 2007 2008 2009 2010 2011
16
Source: NBR Supervision Department, BK Audited Full Year 2011 Results
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
17/43
Competitive Landscape
Market Share Dynamics as at 31 December 2011
Source: NBR Supervision Department, BK Audited Full Year 2011 Results
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
Source: NBR Supervision Department, BK Audited Full Year 2011 Results
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
%
Source: NBR Supervision Department, BK Audited Full Year 2011 Results
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
18/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
19/43
BANK OVERVIEW
19
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
20/43
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$12 MM
-10 years
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
21/43
Key Facts
A Snapshot of Bank of Kigali
The leading bank in Rwanda (32.3% market share by total assets as of
December 31, 2011), offering a wide spectrum of commercial banking
services to corporate, SME and retail customers
As of 31 December 2011 the Bank had:
Over 13,000 corporate accounts
Over 73,000 retail current accounts
44 branches (29 of these outside of Kigali)
26 ATMs
602 employees
19,321 debit cards in issue
Western Union Agent for International Transfers
Branch Network Evolution
Source: Bank of Kigali Audited Financials 2007-2011
US$ 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')
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
22/43
RETAIL BU SINESS FOCUS
22
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
23/43
Executing the Retail Strategy
23
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
24/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
25/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
26/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
27/43
BUSINESS OVERVIEW
27
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
28/43
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%
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
29/43
Customer Deposits Growth
Customer Deposit Base
Source: Bank of Kigali
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
31 December 2011 31 December 2010
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
Source: Bank of Kigali
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%
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
30/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
31/43
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
Source: Bank of Kigali
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
32/43
REVIEW OF F INANCIALPERFORMANCE 2011
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
33/43
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%
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
34/43
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
35/43
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%
31 December 2011 31 December 2010
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
31 December 2011 31 December 2010
P fit bilit
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
36/43
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
Nigeria average: 1.5%
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
Nigeria average: 10.4%
SA average: 14.4%
Asset Quality
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
37/43
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%
31 December 2011 31 December 2010
Corporate,84%
Retail, 16%
Key Investment Highlights
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
39/43
COUNTRY OVERVIEWINFORMATION
39
Rwanda Country Profile
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
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
8/2/2019 Bank of Kigali Investor Day Presentation 27th April 2012
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
Email: [email protected]
Mobile: +250 78 814 3000
Lawson Naibo
Chief Operating Officer
Email: [email protected]
Contact Information
John Bugunya
Chief Finance Officer
Email: [email protected]
Mobile: +250 78 830 6100
43
Linda Rusagara
Investor Relations Officer
Email: [email protected]
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
Email: [email protected]
Mobile: +250 78 838 4547