Bank of Kigali 1H 2010 Results Update

8/3/2019 Bank of Kigali 1H 2010 Results Update

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BANQUE DE KIGALI S.A.R.C. A 019 Ki gali T IN n 10.000.345 Capital : RWF 5 005 000 000

B.P. 175 - KIGALI Parcelle 6112, Avenue de la Paix Kigali (Rwanda)

Your trusted partner in wealth creation

Bank Of Kigali 1H 2010 Results Review

October 2010


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Investment Highlights

October 2010 Bank of Kigali 1H 2010 Results Overview 3

Sound Operating Environment Politically stable country with the government widely admired for fostering socioeconomic progress, rooting out corruption and effective

absorption of foreign aid

Young population base of around 10 million, PPP-adjusted GDP per capita of US$1,150

Robust economic growth of 9%-6%% in 2005-2009, GDP growth of 6% in 1H 2010

Diversifying export base, CAD contained at 7% of GDP

Sensible monetary policies, manageable inflation (2010 YTD CPI of 4.8%), managed currency float

Named Top Reformer globally in the 2010 World Bank Doing Business ReportAccess to a large regional market through the East African Community integration initiatives

Well-regulated banking sector

Banking Sector P otential Early stage of development, with Banking Assets/GDP of 19.6 % as at YE 2009

Sector asset growth of 12% in 2009, 9% in 1H 2010

Over 90% of the population unbanked

High Barri ersTo Entry Highly concentrated banking sector, with Top 3 banks accounting for a 61% market share (81% for Top 5)

Significant execution risks involved in capturing significant market share for a new entrant, due to large capital outlays required for building a

retail footprint, limited pool of managerial talent, and a narrow base of large corporates

Market-Leading Franchise The la rges t bank in Rwanda by assets (28% market share) , loans (29%), deposits (27%) and equity (26%)

Growing faster than the banking sector, achieving further market share gains

The most profitable bank in Rwanda, accounting for 72% of aggregate sector profit in 2009 and 47% in 1H 2010

Well-known, trusted and prestigious brand

Universal Banking Strategy Driving Profitable

Growth

Aggressive expansion strategy aiming at achieving retail banking ubiquity and further market share capture is underway

Banker of choice for large corporates for decades, complementing this traditional strength with focus on SME banking

Private banking launch imminent

Diversification of revenue streams sought by focusing on unfunded income sources and product innovation

TransparencyAnd Good Governance Governed by an effective boardcomprising accomplished local leaders and seasoned international banking executives

Unqualified IFRS quarterly and annual audits since 1999 when National Bank of Rwanda started requiring quarterly and annual a udit of the

financial statements

Investor Relations outreach started in 2010

Establishing itself as an international borrower, with EIB a lender and discussions with several other IFIs

Sound and Balanced Business Model Experienced and knowledgeable management team

Entrenched and long-standing corporate client relationships allow for sound credit risk management

Operating efficiency, with Cost-Income Ratio below 50% despite the ongoing footprint expansion

Modern IT platform with all branches online and developing electronic banking channels

Self-funding business model, with Loans/Deposits of 71% allowing for further substantial loan book expansion

CAR of 16.5%, significantly above the current regulatory requirement of 10%

Disciplined approach to business diversification, with Top 10 Borrowers and Depositors accounting for 27.8% and 26.9% of Total Loans and

Total Deposits, respectively

Very little uncollateralised lending;

NPLs comprise less than 10% of the loan book and are aggressively managed

Sound AML/KYC policies and strict OR controls in effect


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Bank of Kigali Key Figures


Millions, unless otherwise noted Q2 2010 Q1 2010 YE 2009

US$ RwF US$ RwF US$ RwF

Total Assets 297.6 174,901 272.5 156,527 265.0 151,896

Net Loans 151.7 89,151 147.1 84,517 134.4 77,096

Client Balances & Deposits 214.1 125,838 198.0 113,727 190.6 109,282

Total Liabilities 262.3 154,151 238.7 137,137 232.6 133,356

Total Shareholders Equity 35.3 20,750 33.8 19,391 32.3 18,540

Number of branches25 20 17

Number of ATMs 6 6 6

Number of debit cards in issue 3,694 1,690 3,527

FTEs 417 370 303

RwF/US$ exchange rate (e-o-p) 587.8 574.4 573.2


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Bank of Kigali Development Milestones


2006 2007 2008 2009 2010 2010 YTD Growth

US$167.5 mln

US$72.0 mln

US$131.3 mlnUS$16.2 mln

9

US$228.4 mln

US$91.2 mln


9

US$219.4 mln

US$131.0 mln


12

US$265.0 mln

US$134.5 mln


17

US$297.6 mln

US$151.7 mln

US$ 214.1mlnUS$35.3 mln

30

+15.1%

+15.6%

+15.1%+11.9%

Total Assets (e-o-p)

Loan Book (e-o-p)

Client Deposits (e-o-p)Equity (e-o-p)

Number of branches

2 2 2 5 6 Number of Western-Trained Professionals

Retail Banking

Corporate Banking

Trade FinanceForeign Exchange

Internet Banking

Retail Banking

Corporate Banking


Internet Banking

Retail Banking

Corporate Banking


Internet Banking

Retail Banking

Corporate Banking


Internet Banking

Retail Banking

Corporate Banking


Internet Banking

SMS Banking

Private Banking

Key Business Lines

EIB Euro 5 million loan

facility

EIB Euro 5 million

loan facility

Discussions with

several IFIs underway

Key Lenders

RwF/US$ exchange rate (e-o-p)

2006 2007 2008 2009 2010

525.670 533.413 550.439 573.231 587.801

Note: growth rates based on RwF values


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30 branches as of October 2010, of which

13 in Kigali

17 in regions

2006 2007 2008 2009 1H 2010

Number of branches 9 9 12 17 25

Bank of Kigali Branch Network


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1H 2010 Financial Highlights


Total Assets Net Loans

Client Deposits Shareholders Equity

133,714 145,414151,896 156,527

174,901

25.6%25.6%

26.4%

26.3%

27.9%

24.0%24.5%25.0%25.5%26.0%26.5%27.0%27.5%28.0%28.5%

-

50,000

100,000

150,000

200,000

30-Jun-09 30-Sep-09 YE 2009 31-Mar-10 30-J un-10

RwF' Million

Total Assets (LHS) Market Share By Total assets (RHS)

71,380 69,45277,096 84,517

89,151

25.0%22.8%

26.8%28.6% 29.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

-

20,000

40,000

60,000

80,000

100,000

30-J un-09 30-Sep-09 YE 2 009 31-Mar-10 30-J un-10

RwF million

Net loans (LHS) Market Share By Net Loans (RHS)

98,076106,892 109,282

113,727

125,838

25.9%

28.3%

25.7% 25.9%

27%

24.0%

24.5%

25.0%

25.5%

26.0%

26.5%

27.0%

27.5%

28.0%

28.5%

29.0%

-

20,00040,000

60,000

80,000

100,000

120,000

140,000

30-Jun-09 30-Sep-09 YE 2009 31-Mar-10 30-Jun-10

RwF million

Client Deposits (LHS) Market Share By Total Deposits (RHS)

18,872

19,889

18,540

19,391

20,750

25.7%

26.3%

26.8%

24.9%

25.6%

23.5%

24.0%

24.5%

25.0%

25.5%

26.0%

26.5%

27.0%

-

5,000

10,000

15,000

20,000

25,000

30-Jun-09 30-Sep-09 YE 2009 31-Mar-10 30-Jun-10

RwF million

Shareholders Equity (LHS) Market Share By Shareholders' Equity (RHS)


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1H 2010 Financial Highlights Contd


Total Assets Net Loans

Client Balances & Deposits Shareholders Equity

239.1260.0 265.0

272.5

297.6

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

June 2009 September 2009 December 2009 Ma rch 2010 June 2010

US$ mln

127.6 124.2

134.5

147.1151.7

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

June 2009 September 2009 December 2009 March 2010 June 2010

US$ mln

175.4

191.1 190.6198.0

214.1

-

50.0

100.0

150.0

200.0

250.0


US$ mln

33.735.6

32.3

33.835.3

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00


US$ mln

4.5

DividendsofUS$4.5 mln paid


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Composition of Total Assets, RwF mln Composition of Total Liabilities, RwF mln

Composition of Total Assets, % Composition of Total Liabilities, %

51,11864,791 59,832 70,184

71,38077,096 84,517

89,1516,060

6,392 6,4316,919

5,1573,617 5,747

8,647

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000180,000

200,000

30-Jun-09 YE 2009 31-Mar-10 30-Jun-10

RwF million

Cash & Equivalent s Net Loans Fixed Asset s Other Asset s

38.2%42.7%

38.2% 40.1%

53.4% 50.8% 54.0% 51.0%

4.5% 4.2% 4.1% 4.0%

3.9% 2.4% 3.7% 4.9%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

30-Jun-09 YE 2009 31-Mar-10 30-Jun-10

Ca sh & Eq uiva lents Net Loa ns Fixed Assets Other Assets

98,235

109,282 113,727

125,838

11,540

15,104 11,81215,341

5,067

8,97011,597

12,972

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

30-Jun-09 YE 2009 31-Mar-10 30-Jun-10

RwF Million

Client Deposit s Borrowed Funds Other L iab ilt ies

85.5% 81.9% 82.9% 81.6%

10.0% 11.3% 8.6% 10.0%

4.4% 6.7% 8.5% 8.4%

0.0%

10.0%

20.0%

30.0%40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

30-Jun-09 YE 2009 31-Mar-10 30-Jun-10

Client Deposit s Borrowed Funds Other L iab ilt ies


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Revenue Total Recurring Operating Costs

Profit Before Provisions Net Income

7,913

9,781

-

2,000

4,000

6,000

8,000

10,000

12,000

1H 2009 1H 2010

RwF Million

+23.6%

2,532

4,592

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1H 2009 1H 2010

RwF Million

Heavy investment inbranch n etwork

expansion, +107 FTE's

+81.3%

5,3815,189

-

1,000

2,000

3,000

4,000

5,000

6,000

1H 2009 1H 2010

RwF Million

-3.6%

2,975

2,210

-

500

1,000

1,500

2,000

2,500

3,000

3,500

1H 2009 1H 2010

RwF Million

-25.7%


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Revenue Composition Net Fee & Commission Income

FX Trading Income Net Other Non-Interest Income

5,0835,713

2,830

4,069

-

2,000

4,000

6,000

8,000

10,000

12,000

1H 2009 1H 2010

RwF Million

Ne t I nt ere st I nc ome No n-I nt ere st In co me

64.2%

35.8%

58.4%

41.6%7,913

9,781+23.6%

154

347

-

50

100

150

200

250

300

350

400

1H 2009 1H 2010

RwF Million

+125.2%

1,457

2,380

-

500

1,000

1,500

2,000

2,500

1H 2009 1H 2010

RwF Million

+63.4%

1,156

1,243

-

200

400

600

800

1,000

1,200

1,400

1H 2009 1H 2010

RwF Million

+7.5%


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Recurring Operating Costs Structure, 1H 10 Recurring Operating Costs, 1H 09-1H 10

Normalised Cost/Income Ratio Total Employees

Personnel Cost,

53.5%

Depreciation,

11.3%

Other

OperatingExpenses,

35.3%

33.6%31.7%

49.3%

38.5%42.3%

45.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

Cost/Income ratio equals Total Operating Income divided by the sum of Recurring Operating

Costs and Bonuses (Paid or Accrued)

1,227

2,447

352

543

953

1,601

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,0004,500

5,000

1H 2009 1H 2010

RwF Million

Personnel Cost Deprecia t ion Other Operat ing Expenses

4,592

2,532

318310

358

303

370

417

0

50

100

150

200

250

300

350

400

450

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010


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Gross Loans Net Loans

Client Deposits & Balances Term Deposits

Note: share of gross retail banking loans in gross loans decreased due to thereclassification of certain clients from Retail Banking to SME

Note: share of net retail banking loans in gross loans decreased due to shifting

of number of clients from retail to SME

Note: share of retail client deposits & balances in client deposits & balancesdecreased due to shifting of number of clients from retail to SME

Note: share of retail term deposits term deposits decreased due to shifting ofnumber of clients from retail to SME

17,81712,113 11,972

20,925 20,62915,520

53,734 59,266 57,481

56,171

63,88873,631

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000100,000

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

RwF Million

Net Retail Baning Loans Net Corporate Banking loans

89,15184,517

77,096

69,45371,38071,550

19,95313,245 13,056

22,070 22,09716,816

58,71861,907 60,011

58,844

67,31376,708

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,00090,000

100,000

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

RwF Million

Gross Retail Banking Loans Gross Corporate Banking Loans

78,671 75,152 73,06780,914

89,41093,524

29,49724,445 24,047

51,29944,991

27,364

58,322

73,63182,845 57,983

68,73598,474

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

RwF Million

Retail Banking Client Balances & Deposits

Corporate Banking Client Balances & Deposits

87,818

98,076106,892 109,282

113,727125,838

3,693 3,398 1,075 3,958

9,517

3,740

18,597

22,975 25,83725,958

17,75325,406

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

RwF Million

Retail Banking Term Deposits Corporate Banking Term Deposits

22,290

26,373 26,912

29,91627,270

29,146


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Capital Adequacy & Liquidity


Total Capital Adequacy Ratio (BNR)

Net Loans/Client Balances & Deposits Cumulative Liquidity Gap

(25,336) (27,822)

(35,089) (37,775)

(2,623)

18,539

(30,927)

(27,901)

(27,500)

(47,135)

(12,492)

20,750

(60,000)

(50,000)

(40,000)

(30,000)

(20,000)

(10,000)

-

10,000

20,000

30,000

0-1 month 0-3 months 0-6 months 0-12 months 0-5 yea rs 0-over 5 yea rs

RwF mln

Cumulative Liquidity Gap (YE 2009) Cumulative Liquidity Gap (June 2010)

Net Loans/Total Assets

39.9%

59.7%

50.8% 54.0% 51.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2007 2008 2009 Q1 2010 Q2 2010

47.8%

76.8%

70.5%74.3%

70.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

2007 2008 2009 Q1 2010 Q2 2010

14.1%

16.0%16.9% 17.7% 16.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2007 2008 2009 Q1 2010 Q2 2010


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Loan Book Analysis


Loans By Currency, 1H 2010 NPLs

Loan Loss Reserve Gross Loan Book Breakdown By Maturity

18,678

2,250 3,243 6,662

50,081

16,023

6,460 6,899 2,225

61,916

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Less th an 1 m on th 1 to 3 m on th s 3 to 6 m on th s 6 to 12 m on th s Ov er 1 yea r

RwF Million

YE 2 00 9 1 H 2 01 0

7,120

3,773 3,613 3,818

4,8934,373

- 4,322 - - 814 2,669

10.0%

5.3% 5.2% 5.0%5.8%

4.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-

1,0002,000

3,000

4,000

5,000

6,000

7,000

8,000

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

RwF Million

Loan loss reserve (LHS)

Write-offs (LHS)

Loan loss reserve as % of gross loans (RHS)

18.0%

94.5%

82.0%

5.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Corporate Loans Retail Loans

Foreign Currency Local Currency

12,357

8,692 8,029 7,6218,739 9,170

11.7% 11.6% 11.6%

7.1%7.8%

9.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

RwF Million

NPLs (LH S) NPLs a s % o f gro ss lo an s (R HS)


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Client Balances & Deposits


Client Balances & Deposits Breakdown, 1H 2010 Client Balances & Deposits By Currency, 1H 2010

Retail & Corporate Client Balances & Deposits Client Balances & Deposits By Maturity, 1H 2010

Corporate

CurrentAccounts,

58.1%

Corporate Term

deposits, 20.2%

Retail Current

Accounts,18.5%

Reta il Term

deposits, 3.2%

25.2%20.4%

74.8% 79.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Foreign Currency Local Currency

Retail Client Deposits Corporate Client Deposits

72.7%

3.5% 3.3% 3.8%

12.5%4.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

On Demand Less t han 1

month

1 to 3 months 3 to 6 months 6 to 12 months Over 1 year

29,497

24,445 24,047

51,29944,991

27,364

58,322

73,63182,845 57,983

68,73598,474

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

RwF Million

Retail Banking Client Balances & Deposits

Corporate Banking Client Balances & Deposits

87,818

98,076106,892 109,282

113,727125,838


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Corporate Banking Overview


Highlights Gross Corporate Loan Portfolio By Products, 1H 10

Gross Corporate Loans

Serving over 3,500 legal entities

Top clients include Inyange Industries, the leading food processing company in Rwanda

Bralirwa, the leading beverage company in Rwanda

Kobil Petrolium, one of the leading oil companies in Rwanda

Engen Rwanda, one of the leading oil companies in Rwanda BruseelsAirlines

SULFO Rwanda industries, one of the leading cosmetics, detergents, mineral waters, plastic moldings,

polyethylene films and tubing manufacturers in Rwanda, with operations in East & Central Africa

Merez Petroleum, one of the leading petroleum importers in Rwanda

Gorillas Hotels, deluxe hotel chain operator

Onatracom, the leading public transportation company

China GEO Engineering, the leading infrastructure development company

Rwanda Mountain Tea, the major tea producing companies in Rwanda

Akagera Motors, the major importer of Toyota vehicles in Rwanda

Tolirwa, the major metal materials manufacturer in Rwanda

MTN, the leading communications provider in Rwanda

Ameki Color, the leading paint manufacturer in Rwanda

German Agro Action, a non-governmental organisation

Client coverage started in spring 2010

2006 2007 2008 2009 1H 2010

Top 10 Borrowers 22.5% 20.2% 21.7% 26.0% 27.8%

Top 20 Borrowers 31.6% 49.1% 32.3% 33.3% 34.6%

2006 2007 2008 2009 1H 2010

Top 10 deposits & balances 24.3% 31.5% 23.9% 26.0% 26.9%

Top 20 deposits & balances 30.9% 40.8% 34.3% 36.8% 34.9%

Overdrafts, 3,650

Working capital

loans, 18,107

CapEx Loans, 23,642

Commercial

mortgage loans,22,407

RwF Million

53,73459,266 57,481 56,171

63,88873,631

4,9842,641 2,530 2,673

3,425

3,078

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

RwF mln

Net corporate loans Provisions

58,71861,907 60,011 58,844

67,313

76,708

YE 2009 1H 2010

RwF 57,983 mln RwF 98,474 mln

Our Top Clients

MerezPetr oleum

Tolirwa

Term

Deposits,25,412

Demand

Deposits,73,062

74.2% of corporateclient ba lances &deposits

25.8% of corporate

client ba lances &deposits

Term

Deposits,25,958

Demand

Deposits,32,026

55.2% of corporate

client balances &

deposits

44.8% of corporate

client ba lances &deposits

Corporate Client Balances & Deposits


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Retail Banking Overview


Highlights Retail Loans Disbursed

Retail Loans By Products Retail Client Balances & Deposits

Serving over 40,000 individuals, up from c.30,000

as at YE 2009 25 branches as of 30 June 2010, further branch

network expansion underway

Over 40,000 retail accounts as of 30 June 2010

A major enhancement of electronic banking

channels underway

The retail product lineup redesign underway

1,092 888 1,490 1,868 1,050 917

183 171

272

379

76188

0

100

200

300

400

0

500

1,000

1,500

2,000

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

RwF Million

Volume of Retail loans disbursed (LHS)Number of Retail Loans disbursed (RHS)

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

Consumer loans 28.4% 34.1% 34.4% 27.7% 29.9% 35.0%Overdrafts 9.1% 5.0% 5.5% 7.5% 8.0% 10.5%

Micro loans 0.7% 0.3% 0.2% 0.5% 0.5% 0.2%Mortgage loans 49.1% 53.1% 56.1% 52.4% 48.2% 49.9%

Micro loan overdrafts 12.7% 7.4% 3.7% 11.9% 13.4% 4.4%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

RwF million, unless

otherwise noted

Consumer Loans 5,668 4,519 4,491 6,103 6,610 5,891

Overdrafts 1,809 663 723 1,661 1,763 1,772

Micro loans 141 42 27 116 104 29Mortgage loans 9,795 7,036 7,327 11,563 10,655 8,387

Micro loan overdrafts 2,540 985 488 2,627 2,965 736

Gross RB Loans 19,953 13,245 13,056 22,070 22,097 16,815

YE 2009 1H 2010RwF 51,299 mln RwF 27,364 mln

Term

Deposits,4,035

Demand

Deposits,23,329

85.3% of retail client

balances & deposits


balances & deposits

Term

Deposits,11,592

Demand

Deposits,

46,391


balances & deposits


balances & deposits


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Q2 2010 Financial Highlights


Q2 2010 Q1 2010 Q4 2009 Q2 2009 Q-o-Q Y-o-Y

Millions, unless otherwise noted Change ChangeUS$ RwF US$ RwF US$ RwF US$ RwF

Net Interest Income 5.0 2,943 4.8 2,769 4.4 2,542 4.9 2,720 6.3% 8.2%Net Non-Interest Income 3.8 2,243 3.2 1,826 2.5 1,420 2.9 1,616 22.8% 38.8%Total Operating Income 8.8 5,186 8.0 4,595 6.9 3,962 7.8 4,336 12.9% 19.6%

Total Recurring Operating Costs 4.3 2,554 3.5 2,038 2.8 1,620 2.3 1,288 25.3% 98.3%Profit Before Provisions 4.5 2,632 4.5 2,557 4.1 2,342 5.5 2,410 2.9% 9.2%Net Income 2.3 1,360 1.5 850 2.3 1,296 2.8 1,592 59.9% -14.6%

Total Assets 297.6 174,901 272.5 156,527 265.0 151,896 239.1 133,714 11.7% 30.8%

Net Loans 151.7 89,151 147.1 84,517 134.5 77,096 127.6 71,380 5.5% 24.9%Client Balances & Deposits 214.1 125,838 198.0 113,727 190.6 109,282 175.4 98,076 10.6% 28.3%

Total Liabilities 262.3 154,151 238.7 137,136 232.6 133,356 205.4 114,842 12.4% 34.2%Shareholders' Equity 35.3 20,750 33.8 19,391 32.3 18,540 33.7 18,872 7.0% 10.0%

RwF/US$ exchange rate, e-o-p 587.8 574.4 573.2 559.2

1H 2010 1H 2009 Y-o-YMillions, unless otherwise noted US$ RwF US$ RwFChangeNet Interest Income 9.8 5,713 9.0 5,048 13.2%

Net Non-Interest Income 7.0 4,069 5.1 2,865 42.0%

Total Operating Income 16.8 9,781 14.1 7,913 23.6%Total Recurring Operating Costs 7.9 4,592 4.5 2,532 81.3%

Profit Before Provisions 8.9 5,189 9.6 5,381 -3.6%

Net Income 3.8 2,210 5.3 2,974 -25.7%

Note: converted to US$ dollars for the convenience using end-of-period exchange rates


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Key RatiosQ2 2010


Q2 2010 Q1 2010 Q2 2009ProfitabilityReturn on Average Assets 3.3% 2.2% 10.6%

Return on Average Equity 27.1% 17.9% 35.1%

Net Interest Margin , Annualised, % 8.2% 8.2% 10.1%

Loan Yield, Annualised,% 14.8% 15.3% 17.6%

Interest Expense/Interest Income, % 21.8% 27.4% 23.4%Cost of Deposits, Annualised,% 2.6% 3.6% 3.3%

LiquidityNet Loans/Total Assets,% 51.0% 54.0% 53.4%

Interest Earning Assets/Total Assets,% 86.2% 86.1% 87.5%

Liquid Assets / Total Deposits 47.3% 43.6% 43.2%

Interbank Borrowings / Total Deposits 10.9% 9.4% 10.5%

Short term Liquidity Gap 16.0% 14.0% 16.3%

Gross Loans / Total Deposits 66.2% 71.2% 68.6%

Asset QualityNPLs / Gross Loans, % 9.8% 7.8% 11.6%

Provisions / NPLs 47.7% 55.2% 43.3%Large Exposures / Gross Loans 13.1% 12.4% 12.6%

Cost of Risk, Annualised 2.4% 5.7% 0.7%

Leverage (Total Liabilities/Equity), Times 7.4 7.1 6.1

Capital AdequacyCore Capital / Risk Weighted Assets 16.4% 17.7% 16.7%

Total Qualifying Capital / Risk Weigited Assets 16.4% 17.7% 16.7%

Off Balance Sheet Items / Total Qualifying Capital 429.0% 441.5% 419.4%

Large Exposures / Core Capital 62.6% 58.5% 54.4%

NPLsProvisions / Core Capital 22.7% 20.9% 28.9%

Market Senstivity

Forex Exposure / Core Capital -2.8% 7.9% 12.4%Forex Loans / Forex Deposits 0.8% 1.0% 1.1%

Forex Assets / Forex Libilities 98.4% 104.4% 107.0%

Selected Operating DataFull Time Employees 417 370 310

Contractors 0 0 0

Total Employees 417 370 310

Assets per FTE (RwF) 419,427 423,046 431,336

Number of Active Branches 24 19 14

Number of ATMs 6 6 6

Number of POS Terminals 79 60 42


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Experienced & Dynamic Management


Individual Title Background/Experience

James Gatera Managing Director James has led the bank for the last five years. During which time, he has grown the Banks PBT from RwF3.797 millionto 7.059

million (186%), total assets from RwF 70.472 million to RwF 151.896 million and Deposits from RwF 56.692 million to RwF123.130 million (217%).

Lawson Naibo Chief Operating O fficer Lawson has been with the Bank s ince 2 009 and is a q ualified a ccountant & chartered b anker.

Louis Rugerinyange Chief Shared Services Officer Louis has b een with t he B ank for o ver 3 0 years a nd h olds a Bachelors Degree in Economics.

Flora Nsinga Head o f HR a nd Administration Flora is t he H ead o f H uman R esources & A dministration D epart ment. S he h as been w ith t he B ank s ince 2 008. Prior t o j oining t heBank, she worked in the telecommunications industry.

Flora holds a Bachelors Degree in business administration with specialisation in Human Resources from Kigali Institute ofScience, Technology & Management.

Frances Ihogoza Head o f C orporate Affairs Frances h as w orked w ith t he B ank f or o ver o ne y ear. S he h as o ver t en y ears e xperience i n management p ositions i n P ublic S ervice

with a Masters Degree in Public Administration.

Martin Mulisa Head of Corporate Banking Martin has been with the Bank for since 2009 and has wide experience in credit analysis, relationship management & corporate

banking.

Adolphe Ngunga Head of Retail Banking Adolphe has b een w ith the B ank f or o ver 1 0 years. H e held various responsibilities in R etail and C ommercial Banking.

John Bugunya Head of Finance & Budget John has been w ith the B ank s ince 2 009 a nd has vast experience in f inancial s ervices as an a udit manager w ith D eloitte a nd a s a

financial consultant in the UK.

Innocent Musominari Head of Credit Innocent has worked with the bank since 2004 and vast experience in credit analysis and management gained from working in theRwandan banking for over seven years.

Alex Ngabonziza Head of ICT Alex is the Head of Information and Communication Technology and has been with the Bank since 2009. Prior to joining theBank, Alex was head of applications Division G7 charged with management of all software and application in place at Rwanda

Revenue Authority.

Alex holds a Bachelors Degree in Technical Electromechanical Engineering with information technology option from the

National University of Rwanda.

Gera ld Nyangezi Head of Interna l Audi t Geraldheads Interna l Audit and Contro l Department . He joined the Bank in 2009 and has vast experience in Audit & Finance

especially from the financial sector and telecommunication industry.

Gerald holds a Bachelor of Commerce Degree from Makerere UniversityUganda, and Bachelor of Accounting Degree from

Transki UniversityRepublic of South Africa. He is also a member of Certified Chartered Accountants UK (ACCA) and

Institute of Certified Public AccountantsRwanda.

Yves Gatsimbanyi Head of Risk & Compliance Yves is the Head of Risk & Compliance since early 2010. Yves has vast experience in the Rwanda financial sector, including 10years as Bank examiner at the National Bank of Rwanda and later held the position of Internal Control & Compliance within the

banking sector in Rwanda.

He holds a Bachelors Degree in Economics from the National University of Rwanda.


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Board Of Directors


Individual Title Background/Experience

L ado G ur geni dz e C ha ir ma n L ad o G ur gen id ze is a ca reer b an ker w ho a ft er a d eca de s p ent a t s ev er al i n vest men t b an ks in E a st er n E ur op e a nd L on do n r etu rn ed t o h is na ti ve G eo rg ia i n 2 00 4 a nd sp ear hea ded , a s E xecu tiv e C ha ir ma n a ndCEO, a turnaround ofBank ofGeorgia(LSE:BGEO).During Lados three-yeartenure,thebanks totalassetsand net incomegrew760%and 1,563%, respectively. Asitsmarket sharegrewfrom18% to34%,

Bank of Georgia becamethe leading universalbank in Georgia andthe regionwith market capitalisationexceedingUS$900millionat thetimeofLados departure(up from US$30 million at thetimeof hisarrival).Under Lados leadership Bankof Georgia received Euromoney Award forExcellene forthree consecutive years (2005-2007) and theBank of theYear Award by theBanker (2006-2007).

In 2007-2008, Lado has servedas Prime Minister of Georgia, leading the Georgian economy through the final stage of free-market reforms, including tax cuts, financial services sector reform as well as

aggressiveprivatisation and liberalisation policies.

Sincehe stepped downas PrimeMinister,Lado hasbeen a frequentpublic speaker on issues of economic liberty and free-market reforms in developingcountries and co-chairsthe EmoryCentre for AlternativeInvestments. InOctober2009,he wasinvited tojoin, asChairman, theboard ofBankof Kigali, thelargest bank inRwanda.

In September2009, Ladoestablished,togetherwith DinuPatriciu, Liberty Investments, an investmentcompany focusing on financialservices institutions in frontier marketswith low corruption, low taxesandopen economies. In thesame month, Liberty Investments announced theacquisition of a controlling equity interestin Liberty Bank,which hasthe largest client basein Georgia, serving some1.2 million clientsanda branchnetwork of183 branches. SinceSeptember 2009, under Lados guidance, Liberty Bankhas grown totalassets, netloans and client depositsby 55.5%,66.7% and114.3%,respectively.

Heis a Georgian andBritishcitizenand received hisMBA from GoizuettaBusiness School ofEmory University in 1993, followingundergraduatestudiesat MiddleburyCollege andTbilisiStateUniversity.

Lado istheonly person tohavebeenawarded St Georges Victory Order (in2008) and thePresidentialOrder of Excellence (in2010)thetwo highest civilianhonours in Georgia.

ApolloM. Nkunda Dir ec tor Apolloi s a pra ct is ingl awyer , a nd a Pa rtner withTrustLa wCha mber s. Apollohas over t enye ar s e xper ie nc e inl egalpr ac ti ce f r omboth the publ ic a ndpr ivat e s ec tor. He s pe ci al is es inbanking a ndf ina nc e l aw,labour lawand governmentprocurement.

Apollo holds a Masters degree inBusiness and Tradelaw fromErasmusUniversity Rotterdam, theNetherlands, anda Bachelors of Law fromthe National University of Rwanda.

Heis a memberof theRwanda BarAssociation,the East African LawSociety,an associatemember of theChartered Instituteof Purchasing andSupply, a founding memberof theCentrefor Arbitrationandhonorary counsel to theKigali GolfClub.

Perrine Mukankusi Director Perrine is Economic Researcher in Prime Ministers Officewithwide experience in planning, monitoring andevaluation.Perrine hasheldvarious responsibilities in Publicservicefor over tenyears, andwasDirectorfor Planning in theMinistryof Justicefor over fine years.

Perrine holds a Masters degree in Business Administration fromthe School of Finance and Banking, anda Bachelor of Commerce degree fromKigaliInstitute of Technologyand Management.

Alphosine Niyigena Dir ec tor Alphons ine i s c ha ir per sonof the UnionI nves tments Cor pora ti on ( UI C) ,vic e c ha ir per sonof Libe ra lprofes sional s Cha mber ,one of the nine c ha mber s of the Rwanda Priva te Se ctor Feder at ion.

Sheservesas BoardMemberof Motor GuaranteeFund and Rwanda Instituteof Administration and Management (RIAM).

Alphonsineis the Managing Director of WorldWide Initiatives sarl, a regional consultingfirm registeredin Rwanda and has conducted national and international consultancies as an independent consultant in

theareasof Finance, economic planning andaudit.Priorto joining theprivatesector, Alphonsine served inthe Officeof Auditor Generalfor 5 yearsas senior auditorand teamleader.

Alphonsine holds a Masters Degree in BusinessAdministration majored in Finance fromMaastricht University, Netherlands.

Dat iva Mukes hima na Dir ec tor Dat iva i s the Exe cutive Sec ret ar yf or Duter imber e As bl ,whic hi s a Women Ent repre ne ur ia lAs soci at ionin Rwa nda. Dat iva ha s va st e xper ie nc e wi th progr amme managementa ndf ina nc ingof NGOs, a ndgender related programmes.

Dativa holds a Bachelors degree in Economics, majored in money and banking fromKigaliIndependent University.

SudadiS. Kayit ana Dir ec tor Sudadi i s a qua li fi ed a ndpr ac ti cing profe ss iona l a cc ountantwitht ec hnic al e xper ie nc e inI ns ur ance indust ry .He has wide f inance a nda udi t e xper ie nc e e spec ia ll yinthe I nsura nc e I ndus tr y, a nd the inte rnat iona lcommunity organisations including UNDP.

He is an affiliate of the Association of Certified Chartered Accountants (ACCA), qualified professional of supply chain management specialising in Internal Purchasing and is a member of Institute ofPurchasing andsupply (MCIPS).He alsoholds an Associate degree in Economics fromthe NationalUniversity of Rwanda.

M ar c H olzma n D ir ect or M ar c is Vi ce C h air ma n o f B ar cla ys C ap ita l. He h as c on si der ab le i nt er na tio na l e xp er ien ce i n a rea s o f f ina nc e a nd i nv es tmen t, s oci o e co no mic d ev elo pmen t a nd is wi del y r eco gn is ed a s a l ea di ng a ut hor it y o n

economic and politicaldevelopmentsin emergingmarkets.Marc alsoservesas President of The Universityof Denverwith approximately 10,000studentsand as Colorados first Secretaryof Technology.Marcdrawson almostthree decadesof politicaland publicservice inThe United States.He holdsa Bachelorof Arts Degree inEconomics from Lehigh University.

Caleb Rwamuganza Director Caleb is Deputy Accountant General-Treasury Management in MINECOFIN. He has extensive experience in the area of Accounting and Finance and has served in the Ministry of Finance and EconomicPlanning since 2005 in various capacities. Prior to that, Caleb was Chief Accountant in the Office of the President.

He holds a Master of Arts Degree in Management and Finance from Southampton Solent, Southampton University (UK) and Bachelor of Business Administration in Accounting from Nkumba University,Uganda.


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Rwandan Economy & Banking Sector


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Country Profile

October 2010 24Bank of Kigali 1H 2010 Results Overview

Area 26,338 sq km

Population 10,746,311

Official Language Kinyarwanda (official), French (official), English (official)

Capital Kigali

Currency (code) Rwandan Franc (RwF)

Nominal GDP (2009E) US$5.2 billion

Nominal GDP Per Capita (2009E) US$536

GDP (2009E) PPP (2009E) US$11.3 billion

GDP Per Capita (2009E) PPP US$1,150

Real GDP Growth Rate 2009E 4.1%

Inflation Rate (e-o-p) 2009E 5.7%

Inflation Rate (average) 2009E 10.4%

FitchRatings Issuer Default Rating B/Stable

Source: International Monetary Fund, CIA World Factbook


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Rwandan Economy Highlights


Source: National Institute of Statistics of Rwanda; International Monetary Fund

Gross Domestic Product GDP Per Capita

GDP Composition Inflation

YE 2006 YE 2009

Agriculture,

38.4%

Manufacturing,

6.8%Construction,6.1%

Wholsesale &

Retail Trade,11.2%

Transport &

Communication,6.8%

Finance,

Insurance,2.9%

Public

Administration,5.0%

Education, 4.4%

Other, 18.3%

Agriculture,

33.8%

Manufacturing,

6.4%

Construction,

7.3%

Wholsesale &

Retail Trade,13.0%

Transport &

Communication,7.5%

Finance,Insurance,

2.1%

Public

Administration,4.3%

Education, 4.7%

Other, 21.0%

3.13.7

4.7

5.29.2%

7.7%

11.6%

6.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-

1.0

2.0

3.0

4.0

5.0

6.0

2006 2007 2008 2009

US$ billion

Nom ina l G DP (LH S) Rea l GD P Grow th Ra te (RH S)

333392

477517

942

1,002 1,114 1,150

-

200

400

600

800

1,000

1,200

1,400

2006 2007 2008 2009

US$

Nominal GDP Per Capita GDP Per Capita (PPP)

12.1%

6.6%

22.3%

5.7%8.9%

9.1%

15.4%

10.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2006 2007 2008 2009

US$

Infla t ion (e-o-p) Infla t ion (period average)


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Rwandan Banking Sector


2004 2005 2006 2007 2008 2009

Timeline Of Foreign Investment


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Rwandan Banking Sector Highlights


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2006 2007 2008 2009 1H 2010

RwF mln

Banking Sector Assets (LHS) Banking Sector ROA, % (RHS)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2006 2007 2008 2009 1H 2010

RwF mln

Banking Sector Equity (LHS) Banking Sectpr ROE, % (RHS)

Banking Sector Assets & ROA Banking Sector Equity & ROE

RwF mln, unless otherwise noted 2006 2007 2008 2009 1H 2010

Banking Sector Assets 360,762 468,735 516,158 579,520 627,175

Banking Sector Assets As % Of GDP 21.0% 22.9% 20.1% 19.6% n.a.

Banking Sector Loans 177,091 218,384 295,870 287,998 305,315

Banking Sector Loans As % Of GDP 10.3% 10.7% 11.5% 9.7% n.a.Banking Sector Deposits 279,715 365,379 381,926 422,958 462,299

Banking Sector Deposits As % Of GDP 16.3% 17.8% 14.9% 14.3% n.a.

Banking Sector Equity 34,244 51,311 71,322 69,256 81,092

Banking Sector Equity As % Of GDP 2.0% 2.5% 2.8% 2.3% n.a.

Banking Sector ROA, % 1.7% 1.9% 2.0% 1.3% 2.6%

Banking Sector ROE, % 18.4% 16.9% 14.7% 10.5% 20.1%

Source: International Monetary Fund, National Bank of Rwanda


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Rwandan Banking Sector Highlights Contd

8 licensed commercial banks


Rank Total Assets Loans Deposits Equity

1 28% 29% 27% 26%

2 20% 24% 21% 19%

3BCR

14% BCR 10% BCR 15% 12%

4 9% 10% 10% 10%

5 9% COGEBANK 9% 9% 10%

6 8% 8% 7% ACCESS 8%

7COGEBANK

8% ACCESS 7% COGEBANK 7% 8%

8 4% KCB 3% 4% KCB 7%

Source: National Bank of Rwanda


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Market Share By Total Assets, June 2010

Market Share By Loans, June 2010

26.6%

19.0%

15.3%

10.7%

9.3%8.0% 8.3%

2.8%

26.3%

18.9%

13.7%

11.3%

9.7%

8.1% 8.3%

3.7%

27.8%

19.7%

14.2%

9.4%8.6% 8.4%

7.7%

4.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Bank of Kigali UBPR BCR Ecobank Access Cogbank FINA KCB

YE 2009

Mar-10

Jun-10

+14% +13% +1% -5% +1% +14% +1% +61%Growth, YTD June '10

26.8%

23.8%

11.7%10.1%

9.0% 8.5% 8.8%

1.3%

28.6%

23.2%

10.9% 10.2%

7.9% 8.0% 8.3%

3.0%

29.2%

23.5%

9.9% 10.1%

7.2%

8.7% 8.4%

3.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%


YE 2009

Mar-10

Jun-10

+16% +5% -10% +6% -15% +8% +2% +148%Growth, YTD June '10



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Market Share By Total Deposits, June 2010

Market Share By Equity, June 2010

25.7%

20.3%

15.3%

10.6% 10.3%

7.5%8.4%

1.8%

25.9%

19.8%

14.0%

10.4%

11.4%

7.5%8.0%

2.9%

26.9%

20.6%

14.6%

9.4%9.8%

7.4% 7.3%

4.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


YE 2009

Mar-10

Jun-10

+15% +12% +5% -4% +4% +8% -5% +147% Growth, YTD June '10

24.3%

19.4%

11.7%12.2%

6.7%

10.3%

8.5%

6.9%

24.9%

19.0%

11.9%11.3%

5.7%

10.2%

8.4% 8.6%

25.6%

19.2%

12.2%

10.5%

6.7%

10.0%

8.2%7.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


YE 2009

Mar-10

Jun-10

+12% +5% +11% -9% +6% +2% +2% +18% Growth, YTD June '10



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Contact Details


James Gatera

Managing Director

+225 252 593 121

[email protected]

Lawson Naibo

Chief Operating Officer

+225 788 302 076

[email protected]

Frances IhogozaHead of Corporate Affairs

Company Secretary

+250 252 593 100

[email protected]

Lado Gurgenidze

Chairman of the Board of Directors

[email protected]


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Caution Regarding Forward-Looking Statements


This 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, legislative

and regulatory trends, (2) movements in local and international currency exchange rates, interest rates and

securities markets, (3) competitive pressures, (4) technological developments, (5) changes in the financial

position or credit worthiness of our customers, obligors and counterparties and developments in the marketsin which they operate, (6) management changes and changes 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.

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.

Performance indicators are derived from our audited financial statements.


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Bank of Kigali Announces Q2 2010 Results



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Bank of Kigali Announces Q2 2010 Results Contd



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k f i li A Q2 2010 l C d


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B k f Ki li A Q2 2010 R l C d


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B k f Ki li A Q2 2010 R lt C td


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B k f Ki li A Q1 2010 R lt


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Bank of Kigali Announces Q1 2010 Results




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Bank of Kigali 1H 2010 Results Update

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