INVESTOR PRESENTATION Q3 2020

WHO WE ARE

DTB GROUP STRUCTURE & FOOTPRINT

3

: 67

: 37

: 52

156ATMs

Over 1,900POS Merchants

: 1,347

: 142

: 4582,249

Staff

: 1,042

: 525

: 634

:48

138Branches

: 69

: 28

: 37

: 4

638,182Customers

: 250,942

: 220,672

: 163,776

: 2,792

Insurance Agency

(Subsidiary)

100.00%

as at September 2020

DTB’s COMMUNITY INITIATIVES-COVID-19RELIEF EFFORTS

National COVID-19 Emergency Response Fund

KShs50 Mn

DTB commits KShs 100 million to

COVID-19 relief

DTB Initiatives

KShs50 Mn

DTB’s COVID-19RESPONSE

OUR CUSTOMERS

OUR PEOPLE

OUR COMMUNITY

• Repayment holidays granted to 481 borrowers with facilities valued at KShs 65 billion (40% of loan book).

• Offered financial literacy training to nearly 200 SMEs.• Offered waivers on transfers from Bank account to mobile money

wallets. (Amounting to approximately KShs 80 million up to September 2020)

• Segregation of teams into different workspaces• Investment of KShs 23 million on staff protective equipment such

as facemasks, hand sanitizers, thermometer and PPEs at workplaces

• COVID-19 awareness and de-stigmatisation talks to all staff across the Bank

• Partnered with healthcare providers to offer free COVID-19 testing of staff

• Offered counseling services and psychological support to staff

• Over 6,000 families covered across 12 counties in Kenya• Boreholes built in Mombasa, Kisumu and Migori counties for

sustainable and safe water supply• KShs 5 million committed towards feeding front-line workers in

partnership with Serena Hotels, KNH and Mbagathi Isolation Facility• Contributed towards the set up of the Aga Khan University Hospital

field hospital.

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DTB’s COMMUNITY INITIATIVES-COMMONWEALTH BUSINESS WOMEN NETWORK (CBWN)

The Commonwealth Business Women Network(CBWN) is an accredited organisationrecognised by 54 Governments for its work onadvancing UN Sustainable Development Goalnumber 5 and women’s economicempowerment. Their mission is to strengthenand build women-owned businesses andadvance women through talent, training andtrade.

CBWN approached DTB to support their firstonline exhibition taking place between 23 to28 November 2020. This exhibition attractedover 1,000 women and youthentrepreneurs from across the 47 countiesin Kenya to exhibit their products and servicesat no cost. This is a virtual trade show whereexhibitors from all industries meet up toexchange information, introduce new products,services & trends, interact online with buyers,generate revenue and increase theirbrand/products awareness. DTB, as a signatoryto the UN Women Empowerment Principles(WEPS) and being an organisation thatpromotes women economic empowerment andgender equality, supported this initiative interms of sponsorship and gave the keynoteaddress at the launch.

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DTB’s COMMUNITY INITIATIVES-#AchieveMoreGirl

On International Women’s Day 2020, DTBlaunched the #AchieveMoreGirl initiative tosupport vulnerable girls access qualitymenstrual health products. The initiative wasinformed by the prevalent menstrual hygienemanagement challenge that persists acrossKenya for low-income women and girls.

DTB announced a commitment to spend KShs50 Million over the next five years on aninitiative to support over 30,000 school girlsaccess quality menstrual health products.

#AchieveMoreGirl is in line with DTB’scommitment as a signatory of the Women’sEmpowerment Principles (WEPs); a set ofPrinciples offering guidance to business onhow to promote gender equality and women’sempowerment in the workplace, marketplaceand community.

It is also underpinned by the bank’scompliance to the United Nations SustainableDevelopment Goal number 6 which aims toachieve access to adequate and equitablesanitation, paying special attention to theneeds of women and girls in vulnerablesituations.

8

DTB’s COMMUNITY INITIATIVES-WASTE PAPER RECYCLING

In October 2019, as part of a #CSWeek2019 initiative, the Bank launched a paperrecycling initiative targeting the used paper that it generates from its operations inKenya in a bid to be more sustainable.

Since October 2019, the Bank has generated over 3.2 tonnes of waste paperfor recyling.

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MACRO-ECONOMICHIGHLIGHTS

103.8

2,289.0

3,684.0

1,863.0

108.4

2,315.0

3,712.0

1,915.0

KenyaKShs- USD

TanzaniaTShs- USD

UgandaUShs- USD

BurundiBIF- USD

2020 2019

5.40%

6.80%

5.60%

-2.12%

1.10% 1.20%2.10%

-4.09%

2019 Expected 2020

Kenya Tanzania Uganda

Burundi

10

MACRO-ECONOMICHIGHLIGHTS-EAST AFRICA

GDP Growth

Exchange Rate to USD

Source: Fitch Solutions (November 2020)

Source: Respective Central Banks as at November 2020

-2.7%

-0.8%

-1.1%

-4.4%

MACRO-ECONOMICHIGHLIGHTS-KENYA

11

Source: CBK November 2020

Source: CBK (November 2020)

12 Month Private Sector Credit Growth (%)

Trend in Inflation and Central Bank Rate (%)

8.25 8.25

7.25 7.00 7.00 7.00 7.00 7.00 7.00 7.00

5.78

7.17

5.84

6.01

5.33

4.59 4.36 4.36 4.36 4.84

JAN2020

FEB2020

MAR2020

APR2020

MAY2020

JUN2020

JUL2020

AUG2020

SEP2020

OCT2020

CBR INFLATION

6.60 7.30 7.10 7.30 7.70

8.90 9.00 8.10 7.60 8.00 8.30 6.90

7.70

OCT2019

NOV2019

DEC2019

JAN2020

FEB2020

MAR2020

APR2020

MAY2020

JUN2020

JUL2020

AUG2020

SEP2020

OCT2020

12

DTB STRATEGY

A leading commercial bank and a significant participant in the economies where it operates:

- Rank among the top tier banks by liabilities

- Be a sustainable deposit led bank (CASA)

- Play a leading role in transitioning economies to support economic development

Achieve the vision while maintaining a conservative risk profile

13

DTB VISION 2020

The above milestone has been achieved and, to build on this positioning and acquire a significant customer base, DTB’s strategic focus in 2020 is geared towards developing a new strategic blue print - ‘DTB Strategy 2030 and beyond’ will position DTB as a premier, digitally-driven SME Bank in East Africa. DTB Strategy 2030 will reinforce the Bank’s core values to transform the lives of communities it operates in, through innovation and financial inclusion.

15

CHANNEL PERFORMANCE

16

CHANNEL PERFORMANCE-KENYA

Q3 2020

Mobile & Internet

Branches

ATM

POS Acquiring

84%

12%

3%

1%

69% of DTB customers

subscribe to mobile banking, up from 68% in Sep 2019.

85% of mobile

banking subscribers use the channel regularly, up from 70% in Sep 2019

88% of

transactions done outside DTB branches, up from 82% in Sep 2019.

17

DTB MOBILE

BANKING-

m24/7Transact on-the-go from the comfort of your location day

and night with m24/7.

What you can do on m24/7 :

• Opening of digital accounts

• Pay your credit card bills

• Send and receive funds via Western Union

• Pay bills and top up airtime

• Transfer funds to DTB accounts, via PesaLink or RTGS

• Transfer funds from your account to mobile money

• View daily forex rates

• Viewing of Fixed Deposits

• Request for a chequebook, view cheque status or stop a cheque

• View all branch and ATM locations

00000000000000XXXXXX

No. of Mobile Banking (m24/7)

Transactions (Mn)

Value of m24/7 Transactions (KShs Bn)

m24/7 transaction count up by

25%

18

CHANNEL PERFORMANCE-KENYAMOBILE BANKING

27%

m24/7

transaction values up by

Q3 2020 Q3 2019

Q3 2020 Q3 2019

18.5

14.8

137

108

Q3 2020 Q3 2019

Mobile Banking Transaction type (% value)

19

Over KShs 130 bn transferred through

the m24/7 channel from

Jan 2020 to Sep 2020


B2B B2C BILL PAYMENTS

FUNDS TRANSFER

C2B

0.4 0.3

55.356.3

20.5

22.1

10.8

6.5

13.014.8

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DTB INTERNET

BANKING-

i24/7i24/7 enables businesses and individuals to transact seamlessly

on internet-ready devices irrespective of their location.

Key Features:

• Host-to-Host integration capability

• Bill payments

• iTax payments capability

• Improved Electronic Bulk Trade payments and Salary processing

• Real-time access to account information from any where in the globe

• Capability to initiate Single Payments and Bulk Payments at high speed of payment processing

• Post-dated payments capability

• Multi-currency and Cross Currency local and international payments via IFT/ EFT/ RTGS, PesaLink and SWIFT

• Mobile Money Bulk payment

• Cheque book request services

No. of Online Banking (i24/7) Transactions (Thousands)

Value of i24/7 Transactions (KShs Bn)

21

i24/7 transactions up by

16%

CHANNEL PERFORMANCE-KENYAONLINE BANKING

Q3 2020 Q3 2019

Q3 2020 Q3 2019

Average of 2,100transactions done per

business day on i24/7

406

350

93

82

No. of POS Acquiring Transactions(Thousands)

Value of POS Acquiring Transactions (KShs Bn)

22

POStransaction count up by

19%


POStransaction value up by

14%

Expanding DTB’s intermediary role to a wider eco system beyond just the Bank’s customers

337

283

2.0

1.8

Q3 2020 Q3 2019

Q3 2020 Q3 2019

No. of ATM Transactions(Thousands)

Value of ATM Transactions (KShs Bn)

23

Decline in number of ATM transactions by

24%


Shifting towards cashless transactions

Q3 2020 Q3 2019

908

732

Q3 2020 Q3 2019

8.5

6.6

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FINANCIAL PERFORMANCE

BALANCE SHEET HIGHLIGHTS-GROUP

25

Q3 19 Q3 20

KShs 192.0 Bn KShs 205.6 Bn

ASSETS

LIABILITIES

Net Loans &

Advances

7%

5%

3%

2%

KShs 125.6 Bn KShs 132.6 BnGov-Securities

KShs 382.5 Bn KShs 394.0 BnTotal Assets

KShs 283.1 Bn KShs 288.2 BnCustomer Deposits

BALANCE SHEET HIGHLIGHTS-KENYA

26

Q3 19 Q3 20

KShs 144.8 Bn KShs 154.7 Bn

ASSETS

LIABILITIES

Net Loans &

Advances

7%

-2%

1%

-1%

KShs 97.5 Bn KShs 95.4 BnGov-Securities

KShs 283.6 Bn KShs 285.8 BnTotal Assets

KShs 201.7 Bn KShs 199.2 BnCustomer Deposits

TOTAL-ASSETSSUBSIDIARIES CONTRIBUTION (%)

Q3 2020

27

12.73

70.73

0.96

0.04

DTB Kenya

DTB Tanzania

DTB Uganda

DTB Burundi

DTIA

15.54

23.9 19.5

15.1 13.7

8.1 7.3 4.5 3.6 2.7 1.4 0.3

53.2

10.0

1.4

17.4

8.3

0.0

7.8

0.1 0.5

1.3

0.0

Loans NPLs

26.2 24.0

12.8 10.6 7.4 6.5 5.6

3.5 2.6 0.7 0.2

51.7

12.3

16.9

0.4 0.0

8.6 8.0

0.5 1.5 0.1 0.0

Loans NPLs28

SECTOR-WISE ANALYSIS OF LOAN BOOK AND NPLs-GROUP

Q3 2020 (%)

Q3 2019 (%)

Stable sector-wise exposure between Q3 2019 and Q3 2020. Sector-wise NPA

% of total NPA

Sector-wise NPA % of total NPA

38.1

33.2 32.0

41.9 44.4

Q3 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 29

LOANBOOK PERFORMANCE-NON PERFORMING LOANS- GROUP

NPL Movement Analysis (%)

Coverage Ratio Analysis (%)

NPL ratio stable and well below industry average.

Increase in coverage anchored on prudence and conservatism.

10.2 9.7 10.1

10.5 10.5

7.8

6.8 7.0 7.3 7.1

0.6 0.7 0.8

1.9 1.9

7.57.2 7.2 7.4

7.4

Q3 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020

Industry NPL Ratio (Kenya) Group NPL Ratio Group COR Kenya NPA Ratio

30

NET LOAN BOOK-CONTRIBUTION BY SUBSIDIARIES Q3 2020 Q3 2019

72.3%

20.2%

7.4%

0.1%

78.8%

15.5%

5.7%

0.0%

SECTOR-WISE RESTRUCTURES-KENYA

31

Facilities Restructured Relating to COVID-19

• Moratorium of up to 12 months.

• Extension of tenor.• Cost of

restructuring absorbed by the Bank.

40% of the loan bookrestructured in Kenya as at September 2020

24%

19%

14%

15%

8%

5%

0%7%

3%

1%

4% Trade

Real Estate

Manufacturing

Tourism,restaurants and hotels

Transport and communication

Personal Household

Mining

Agriculture

Building & Construction

Energy & Water

Financial services

30%

25%12%

11%

10%

8%

2%

2%

0%0%

0%

Overall Loan Book

KShs 162 Bn

Facilities RestructuredKShs 65 Bn

DEPOSIT MIXGROUP

32

53%

1%

13%

33%

Deposit by Type Q3 2020

Fixed Call Savings Current

55%

1%

12%

32%

Deposits by Type Q3 2019

TOTAL DEPOSITS-CONTRIBUTION BY SUBSIDIARIES

Q3 2020

33

69%

17%

13%

1%

DTB Kenya DTB Tanzania DTB Uganda DTB Burundi

STRONG CAPITAL BUFFERS

34

Core Capital to RWA (%)

Kenya

Group

Total Capital to RWA (%)

Kenya

Group

Adequate capital ratios above statutory requirement

10.5 10.5 10.5

18.7 19.1 19.2

FY 2018 FY 2019 Q3 2020

Min Core Capital/RWA Core Capital /RWA

14.5 14.5 14.5

21.1 20.9 20.8

FY 2018 FY 2019 Q3 2020

Min Total Capital/RWA Total Capital /RWA

10.5 10.5 10.5

18.3 17.6 18.0

FY 2018 FY 2019 Q3 2020

Min Core Capital/RWA (Kenya Ratio) Core Capital /RWA

14.5 14.5 14.5

20.6 19.5 19.7

FY 2018 FY 2019 Q3 2020

Min Total Capital/RWA (Kenya Ratio) Total Capital /RWA

LIQUIDITY

35

Liquidity (%)

Kenya

Group

Stable liquidity levels across the group

20.0 20.0 20.0

53.5 54.8 54.8

FY 2018 FY 2019 Q3 2020

Min. Liquidity (Statutory) DTB Kenya

20.0 20.0 20.0

56.2 56.0 56.4

FY 2018 FY 2019 Q3 2020

Min. Liquidity (Statutory) Group

P&LHIGHLIGHTS

36

Net Interest Income

Kenya Group

-7%

Total Non-Interest Income 15%47%

Operating Expenses

13%

Loan Loss provision

232%2,091%

Profit before Tax (PBT)

Group PBT drop by 24%

-3%

-18% -24%

Gross Operating Income -1%-0.3%

KShs18.4 Bn

KShs17.2 Bn

KShs2.4 Bn

KShs3.5 Bn

KShs20.8 Bn

KShs20.7 Bn

KShs4.7 Bn

KShs5.3 Bn

KShs0.1 Bn

KShs1.8 Bn

KShs7.1 Bn

KShs5.8 Bn

KShs24.5 Bn

KShs23.7 Bn

KShs4.4 Bn

KShs5.0 Bn

KShs28.9 Bn

KShs28.7 Bn

KShs9.6 Bn

KShs9.5 Bn

KShs0.9 Bn

KShs2.9 Bn

KShs8.7 Bn

KShs6.6 Bn

Q3 2019 Q3 2020

Operating Profit Before

Provisions6%

KShs7.2 Bn

KShs7.6 Bn

KShs8.6 Bn

KShs9.5 Bn

10%

-1%

DTIA

762

385

131

107

1,006

400

118

101

DTB Tanzania

DTB Uganda

DTIA

DTB Burundi

Q3 19 Q3 20

P&LHIGHLIGHTS

37

Subsidiary PBT Contribution (KShs Mn)

19% of Group

PBT contributed by subsidiaries

6%

-4%

-24%

11%

DTB Tanzania

DTB Uganda

DTB Burundi

KEY FINANCIAL RATIOS

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Return on Equity

Kenya Group

NPL Ratio

NPL Coverage

Cost to Income

Return on Asset

Fee Income Ratio

Cost of Risk

Loan to Deposit

12.9 11.5 9.6

2.3 2.0 1.8

7.2 6.9 7.1

42.0 34.1 45.7

20.2 20.1 27.5

39.5 42.0 41.5

75.0 77.8 81.4

0.1 -0.0 1.5

9.7 12.1 8.9

1.7 1.9 1.5

7.5 6.6 6.8

38.1 33.2 44.4

24.1 23.5 26.6

48.5 46.5 50.6

70.7 73.6 74.7

0.6 0.6 1.8

Q3 19 FY 19 Q3 20

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ADAPTING TO THE POST-COVID-19 WORLD-DIGITAL ACCELERATORS

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The COVID-19 pandemic has accelerated the shift towards a more digital world. Lifestyle behaviours of the online world adopted now will have lasting effects when the World economy starts to pick up again.

In a recent survey, Communication Authority of Kenya reported that 40% of smartphone owners shopped online in Kenya, which has surged considerably especially due to the pandemic.

Riding atop the crest of the digital wave, DTBpartnered with Jumia as the official “BlackFriday” title sponsor with the goal of activelypromoting the sign up of the DTB digital account(Bank 24/7) as well as DTB customer spend viacard and mobile banking through sponsoreddiscounts to DTB customers.


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Furthering its opportunity in the digital landscape, during the pandemic, DTB launched DTB Inua.

The product is aimed at enabling SMEs offer a salary advance proposition to their staff members to reduce additional financial constraints.

Key Features & Benefits:

• Digital loan with no paper work required

• Pre-approved credit limit – The limit of the loan shall be 30-50% of the net salary.

• Instant disbursement into the DTB Salary Account - No follow up required for disbursement of the loan amount.

• Deduction at source – Saves the employee from constant follow-ups from the Bank on repayment of the loan.

• Short Tenure – Maximum of 30 days


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DTB’s 2019 Integrated

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INVESTOR PRESENTATION Q3 2020 - DTB Kenya

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