Bank of Kigali Investor Presentation Q1 &3M 2012

BANK OF KIGALI INVESTOR PRESENTATION
Q1 2012
Bank of Kigali Investor Presentation Page 1
Disclaimer
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 policies, 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 markets in which they operate, (6) management changes and changes to the Banks 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 forwardlooking statements whether as a result of new information, future events, or otherwise.
Presentation Team
Lado Gurgenidze Chairman of the Board Email: lgurgenidze@bk.rw Mobile: +995 599 477 272 lado.gurgenidze.2008
James Gatera Chief Executive Officer Email: jgatera@bk.rw Te l : + 2 5 0 2 5 2 5 9 3 1 2 1
Lawson Naibo Chief Operating Officer Email: lnaibo@bk.rw Mobile: +250 78 830 2076
John Bugunya Chief Finance Officer Email: jbugunya@bk.rw Mobile: +250 78 830 6100
Agenda
1. Key Investment Highlights 2. Country Overview Information 3. Banking Sector Overview 4. Bank Overview 5. Corporate Governance 6. Business Overview 7. Review Of Financial Performance In Q1 2012 & 2011 8. Strategic Outlook 9. Contact Information
Key Investment Highlights

1. Best East African Bank 2012
Sound Macro Fundamentals Politically stable country with sound governance Very attractive demographic profile: population of 10.7 million 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 Significant Banking Sector Potential Total assets/GDP of 23% Large unbanked population of approximately 80% Well regulated banking sector: fairly conservative regulator relative to regulators in the EAC Market leadership by Total assets (RwF 303,032 million as of 31 March 2012) 32.8% market share Net Loans (RwF 132, 378 million as of 31 March 2012) 28.2% market share Customer Deposits (RwF 203,671 million as of 31 March 2012) 30.2% market share Shareholders equity (RwF 64,829 million as of 31 March 2012) 42.8% market share Relatively high capital adequacy ratios ranging from 14.0% - 29.1% between 2007 and 2011 Conservative Business Model Manageable level of non-performing loans 6.1% of gross loans in Q1 2012, down from 19.4% in 2007 Loans to deposit ratio range of 54.8% - 72.7% between 2007 and Q1 2012. Management team with combined banking sector experience of 79 years Complemented by an experienced and diversified Board of Directors Track record of producing stellar results Robust asset growth at a CAGR of 24.4% to RWF 303, 302 million in Q1 2012 (2007-2011) ROAA ranging from 3.0% - 4.4% between 2006 and Q1 2012
2. Bank of the Year 20092011
3. Best Bank in Rwanda 2009-2011

Market Leadership
4.
Company of the Year 2011 by Kenyan Institute of Management A+/A1 Credit Rating
5.
The rating reflects the Banks

established domestic franchise value, strong capital position, its systemic importance, strong asset quality and financial performance. GCR
Experienced Management Team Profitable Growth
CO U N T RY OV E RV I E W I N FO R M AT I O N
Rwanda Country Profile

National Facts Business Environment
Area Population (2010) Official Languages Capital Currency Credit Rating
26,338 sq km 10.7 million Kinyarwanda, French, English Kigali Rwandan Franc (RWF) B/Stable (Fitch Ratings) B/B (Standard & Poors)
Macro Economic Indicators
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
Nominal GDP (2011) Nominal GDP Per Capita (2011) Real GDP Growth Rate 2011 Real GDP Growth Rate 2012E Inflation Rate (Feb 2012) Private Sector Credit Growth (2011) External Debt to GDP (2011) Currency Depreciation (2011) FDI as % of GDP (2011E)
US$ 6.4 billion US$595 8.6% 7.6% 7.9% 28.4% 15.4% 1.6% 1.9%
7
Source: IMF, CIA World Factbook, Ministry of Finance and Economic Planning, National Institute of Statistics Rwanda, National Bank of Rwanda,
Sound Macro Fundamentals

GDP per Capita continues to grow Mln 12 10 479 8 333 6 4 2 9.2 0 2006 2007 2008 2009 2010 2011 9.6 9.8 10.1 10.4 10.7 391 519 540 US $ 700 600 500 400 300 200 100 0 20-39 40-59 60 and above Population Pyramid for Rwanda, 2011 595
Population
Nominal GDP Per Capita
Healthy GDP growth with moderating inflation US$ Bn 7 6 5 4 3 2 1 0 2006 2007 2008 2009 2010 2011
Inflation (%) Source: National Institute of Statistics Rwanda
0-19
15.4% 18.0% 16.0% 14.0% 8.8% 9.1% 10.3% 12.0% 8.3% 7.5% 10.0% 8.0% 6.0% 2.3% 4.0%
30.0%
20.0%
10.0%
0.0%
10.0%
Male %
20.0%
30.0%
Female %
54% of the population is under 19 years. 83% of the population is under 40 years. 3% of the population over 65 years.
3.1
3.7
4.7
5.2
5.6
6.4
6.6 2012E
2.0% 0.0%
Nominal GDP (US$ Bn)

Source: Ministry of Finance and Economic Planning, IMF
Macroeconomic Indicators
GDP Breakdown By Economic Activity 2011
Finance, Transport, insurance, 2.8% storage, communication, 7.5% Education, 5.5% Manufacturing, 6.6% Transport, storage, communication, 7.5% Real estate, business services, 8.0% Construction, 8.3%
Source: National Institute of Statistics Rwanda
Trade Structure Rwandas exports are dominated by coffee, tea and minerals(tin, coltan and wolfram). The country remains a net importer. Major imports include
Mining and quarrying, 1.3%
Agriculture, 31.9%
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.
Wholesale and retail trade, 12.9%
Official reserves were estimated at 7.7 months of goods imports for Dec 2011
Source: NBR Monetary Policy Statement
Trade Deficit As A % Of GDP

20% 14% 15% 10% 5% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 12% 11% 10% 15% 11% 14% 15% 13%
20% 15% 10%
Current Account As a % of GDP

17% 12% 9% 4%
5% 0%
13%
2007
2008 2009 2010 Current Account Deficit as a % of GDP
2011
Source: Ministry of Finance and Economic Planning, IMF
Source: National Institute of Statistics Rwanda
B A N K I N G S EC TO R OV E RV I E W
Significant Banking Sector Potential

2011 Banking Assets/GDP 2011 Banking Assets Per Capita5
(US$)
Large Unbanked Population
Economy is still cash based with bank accounts being used

534
Kenya*
70%
Kenya
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
Tanzania*
50%
Tanzania
274
Source: Finscope Rwanda 2008
Prudential Regulations
CAR (Tier One)

Uganda* 33%
Uganda 165
10%
Total CAR Liquidity Ratio

Rwanda 23%
Rwanda 124
15% 20% 5% of total deposits
Reserve Requirement
(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 Tanzania and Uganda
Lending in foreign currency
Restricted to exporters
Banking Sector Overview

Rwanda Banking System Total Assets US$ MM 1,600 1,400 1,200 1,000 800 600 400 200 0 2007 2008 2009 2010 2011 Q1 2012
Source: NBR Monetary Policy & Financial Stability Report 2011
Interest Rate Analysis 1,520

18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%
1,475 1,226 856 922 1,011
Nov
Aug
2010 Key Repo Rate
2011 T-Bills Rate Deposit Rate
2012 Lending Rate
Branch Coverage The total number of branches and outlet networks in the banking industry is approximately 683, with Bank of Kigali having 47 branches and outlets.
Source: National Bank of Rwanda, Bank of Kigali Data
Recent Regulatory Reforms To Improve Access To Credit
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 computerised 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
12
March
April
Apr
May
Feb
Jul
Dec
Sep
Mar
Dec
Oct
Jan
Jun
Jan
Feb
Timeline Of Foreign Investment In The Rwandan Banking Sector
80% stake in BCR
40% stake in Cogebanque
2004
2006
2007
2008
2009
2010
2011
30% stake in BPR
2008 Bank of Kigali Market Share by Total Assets 23.4%
2009 26.4%
2010 27.4%
2011 32.3%
Q1 2012 32.8%
Banking Sector Overview Contd

Case study: Rwanda six out of nine banks in Rwanda are owned by regional and Pan African bank and have lost market share to locally-run banks
Market Share By Total Assets In 2008
Market Share By Total Assets In 2011
Market Share By Total Assets In Q1 2012
Five foreigncontrolled banks, 48.3%
Top three local banks, 51.7%
Six foreigncontrolled banks, 49.5%
Six foreigncontrolled banks, 49.5%
BANK OF KIGALI
BANK OF KIGALI
BANK OF KIGALI
BPR
UBPR
UBPR
Source: the National Bank of Rwanda, company estimates

Page 14
March 2012
Competitive Landscape
Market Share Dynamics
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Total Assets Net Loans Customer Deposits Shareholders' Equity
Banking Sector Growth Vs Bank of Kigali Growth Q1 2012

41.9% 42.8%
2009
2010
2011
32.3% 32.8% 31.5% 29.4% 27.4% 28.2% 26.8% 26.4%
30.2% 28.2% 25.9% 25.8%
32.2% 26.7%
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
93.2%
45.6% 23.0% 29.9% 21.4% 33.4% 23.8%
52.4%
Total Assets Growth
Net Loan Book Growth
Client Deposits Growth
Shareholders' Equity
Source: NBR Supervision Department, BK Company Filings and Published results of Banks
Bank of Kigali Growth in 2011
The Rwandan Banking Sector Growth in 2011
Performance Indicators Q1 2012

25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
Concentration of Banking Sector Assets 20.5% 14.0%

31 March 2012 Others, 20.5% 31 December 2011 Others, 21.4%
6.6%
6.1% 2.3%
4.4%
NPLs/Gross Loans Asset Quality
Return on Average Assets Return on Average Equity Annualised Profitability ratios
Top 5 Banks, 79.5%
Top 5 Banks, 78.6%
Banking Sector
BK
Source: Published Bank Results
Source: NBR Supervision Department, BK Audited Full Year 2011 Results, BK Q1 2012 Reviewed results 15
Bank Of Kigali Is The Market Leader

Rank Total Assets Loans Deposits Equity 1
BANK OF KIGALI
32.8%
BANK OF KIGALI
28.2%
BANK OF KIGALI
30.2%
BANK OF KIGALI
42.8%
2
BPR
17.7%
BPR
23.6%
BPR
18.8%
BPR
14.3%
3
ECOBANK
11.3%
ECOBANK
11.2%
ECOBANK
11.5%
BCR
8.6%
4
BCR
10.4%
COGEBANQUE
9.3%
BCR
10.9%
KCB
8.0%
5
COGEBANQUE
7.3%
BCR
8.9%
FINA BANK
6.7% 7.7%
ECOBANK
6
KCB
7.1%
KCB
8.3%
COGEBANQUE
7.4%
COGEBANQUE
6.1%
7
FINA BANK
6.9%
FINA BANK
7.3%
KCB
7.0%
FINA BANK
4.9%
8
ACCESS BANK
4.7%
ACCESS BANK
2.6%
ACCESS BANK
5.3%
ACCESS BANK
4.5%
9
EQUITY BANK
1.8%
EQUITY BANK
0.6%
EQUITY BANK
1.2%
EQUITY BANK
4.1%
Source: Published Q1 2012 Financial Statements of Commercial Banks reviewed in accordance with BNR guidelines
B A N K OV E RV I E W
Background And History

Established in 1967 as a JV with Belgolaise S.A Current management team assembled Supervisory Board enhanced & internationalised A+ credit rating by GCR (Global Credit Rating) US$62.5 mln Initial Public Offering of 45% of its shares and listing on the RSE
1967
2006
2007 2007
2009
2010
2011
Government of Rwanda acquired 50% stake from Belgolaise becoming 100% shareholder
New strategy focusing on the universal banking business model and profitable growth adopted
AFD loan signed: EIB loan signed: EUR 5 MM 7 years

US$ 20 MM 10 years
AfDB loan signed:

-US$12 MM -10 years
18
A Snapshot Of Bank Of Kigali

Key Facts The leading bank in Rwanda (32.8% market share by total assets as of 31 March 2011), offering a wide spectrum of commercial banking services to corporate, SME and retail customers As of 31 March 2011 the Bank had: Over 13,000 corporate accounts Over 152,000 retail current accounts 47 branches 26 ATMs 628 employees 27,775 debit cards in issue Western Union Agent for International Transfers One of two Banks in Rwanda that offer International VISA cards. On average, the break-even period for new branches is less than 24 months 60 40 20 0 11 2007 14 2008 18 2009 33 2010 44 2011 47 March-12 453 267 295 303
US$ million
Rwf/USD Period End rate
2007 2008
547.7 560.0
2009
573.2
2010
594.4
2011 Q1 2012
604.4 607.1
CAGR 20072011* 24.1% 26.1% 15.5% 48.1% 19.5%
Total Assets Net Loans Client Deposits Shareholders' Equity Net Income MARKET SHARE Total Assets Net Loans Client Deposits Shareholders' Equity
221.8 215.7 88.8 128.7 186.0 167.6 23.4 28.4 7.8 10.1
264.9 134.5 191.0 32.3 9.2
332.6 170.6 228.3 53.6 10.4
476.3 203.7 299.5 101.9 14.4
499.1 218.0 335.5 106.8 5.3
Growth figures are calculated on RwF Values.
29.0% 25.3% 30.6% 28.3%
23.4% 24.4% 24.6% 22.3%
26.4% 26.8% 25.8% 26.8%
27.4% 31.5% 25.9% 32.2%
32.3% 29.4% 28.2% 41.9%
32.8% 28.2% 30.2% 42.8%
Source: Bank of Kigali Audited Financials 2007-2011
Branch Network Evolution 602 628 800 600 400 200 0

Number of Branches Number of Employees
Growth in ATMs, POS Terminals and # of Retail Current accounts 400 200 6 0 2009 2010 2011 Q1 2012
19
ATMs
POS
Retail Current Accounts('000')
265 152
202 52 34 97 26 127 57 26 26
CO R P O R AT E G OV E R N A N C E
S h a re h o l d i n g S t r u c t u re
Shareholding Structure Other State Owned Entities, 0.1% Free float 45% Employees and Directors, 1.1% International Institutional Investors, 18.4% Government of Rwanda, 29.8%
Rwanda Social Security Board, 27.6%
Retail Investors, 15.4% Regional Institutional Investors, 4.8%
Local Institutional Investors, 2.8%
Current price, RwF Market Cap, US$ mln Free float Free float in US$ mln Average daily traded volume in US$ mln Common shares outstanding, mln shares 12-month high 12-month low P/E YE 2012F P/BV YE 2012F Dividend yield, 2011A Dividend yield, 2012F Ticker Code Bloomberg Rwf/USD Exchange Rate (e-o-p) of 609.3 as at 31 May 2012
31 May 2012 125 136.9 45% 61.6 0.12 667.3 191 118 7.5x 1.2x 5.2% 7.7% BOK BOK. RW
*Capital gains on the RSE transactions are exempted from Capital Gains Tax
Share Price Performance since start of trading
Price 200 175 150 125 100
Closing Price
Volume Weighted Average Price
Initial Price
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 28-Apr-12 3-May-12 8-May-12 13-May-12 18-May-12 23-May-12 28-May-12
21
C o r p o ra te G o ve r n a n c e
The Board of Directors is comprised of nine independent non-executive directors (including two nonresident directors with extensive expertise in international banking practices)
The Board of Directors is approved by the Central Bank and meets on a quarterly basis or more frequently as the business demands
The Board sets the strategy and 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 issues
B U S I N E S S OV E RV I E W
Overview Of The Loan Book

Gross Loan Portfolio
RwF Bn
Loan Book Segmentation 31 March 2012 130.7 137.8

48.5 35.2% 31.5%
Corporate Loans 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 2007 2008 2009 45.9
Retail Loans
31 December 2011
105.5 78.8 56.6

10.8 65.2 66.5 13.6
80.9
14.4
41.2
20.7
68.5% 84.8 89.5 89.3 64.8%
2010
2011
March-12
Source: Bank of Kigali Corporate Loan Book, 31 March 2012

Transport & Communica tion, 6.9% Others , 6.0% Manufactur ing, 10.4% 0-50 million, 12.8% 50M100Million, 9.1% Constructio n, 28.4%
Corporate Loans
Retail Loans
Over 1 Billion, 31.1%
Commerce, restaurants & hotels, 48.3%
100M-500 Million, 33.8%
500M-1 Billion, 13.3%
Source: Bank of Kigali
Corporate Loans: RWF 89.3 Bn Bank of Kigali Investor Presentation Page 24
Customer Deposit Base

Customer Deposits Growth
RwF bn
Customer Deposit Segmentation

31 March 2012 31 December 2011
250 200 150 100 50 78.0 0

Corporate Deposits
Retail Deposits 203.5 181.0 135.7 58.6 54.2 36.4
101.9
93.8
109.7
28.8%
29.9%
23.9
24.2
27.8 71.2% 81.6 2009 99.3 2010 126.8 2011 145.0 March-12 Corporate Deposits Retail Deposits
70.1%
69.6 2008
2007
Structure of Deposits, 31 March 2012 Corporate: RWF 144.8 Bn Retail: RWF 58.6Bn 13.4% 27.9% 1.5%
31 March 2012
Customer Deposits Concentration

31 December 2011
Large Depositors , 18.6% Other, 86%
Large Deposit ors*, 14%
2.9% 69.2% 85.2%

Other, 81.4%
CB Demand Deposits CB Collateral Deposits CB Term Deposits
RB Term Deposits RB Savings Deposits RB Demand Deposits
Notes: * depositors with total balances above 5% of shareholders equity of BoK Source: Bank of Kigali
25
Corporate Banking
Description 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 to an agreed limit for a short period (usually <1yr) Overdrafts
Tolirwa
Key Segments as at 31 March 2012
Corporate Loans: RWF 89.3 Bn

3.7%
Corporate Deposits: Rwf 144.8 Bn
10.2% 11.0% 25.3%
71.0%
78.8%
Corporate
SMEs
NBAs
Number of Corporate Accounts 20,000 15,648 15,000 10,000 5,000 12,114 6,535 17,282
Strategy Introduce new services, integrate client coverage Grow and consolidate market share Leverage superior lending capacity Focus on payroll services
*NBAs (Non Business Associations) includes Non-Profit Organizations, Charities, Religious institutions, Educational Institutions, Cooperatives,etc
5,679 0 2009
9,941 2010 Corporate Current Accounts
12,782 2011
14,481 Q1 2012
Merez Petroleum
Total Corporate Accounts
26
Executing The Retail Strategy
Retail Banking
Description The Banks retail business is primarily focused on mortgages and consumer 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 30 days) Other products include credit cards and asset leasing Strategy: Build a ubiquitous branch footprint throughout the country 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) Our Products 150,000 100,000 41,900 50,000 33,504 0 2009
Key Segments as at 31 March 2012 Retail Loans: RWF 48.5 Bn Retail Deposits: RWF 58.6 Bn
7.8%
13.4% 1.5% 38.8%
39.9% 85.2% 9.4% Consumer loans Mortgages Overdrafts Micro loans
RB Term Deposits RB Demand Deposits Number of Retail Accounts
RB Savings Deposits
200,000 153,206
185,073
72,182
57,297 2010 Retail Current Accounts
127,280 2011
152,265 Q1 2012
Total Retail Accounts

28
Growing Our Distribution Network

Ubiquitous footprint
120 100 80 60 40 20 0
Increasing functionalities of our delivery channels
Branches
65 77 89 101
2012 Targets
Cash out and Cash in at Point of sale merchants Deposit taking ATMs Cardless Transactions at ATMs through our mobile banking and mobile wallet
44
56
Agency Banking
2011 2012F 2013F 2014F 2015F 145 125 2016F 165
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 applications and disbursement.
180 160 140 120 100 80 60 40 20 0
ATMs
115 86 26
Introduce 20 BK owned agent kiosks in high traffic areas
2011
4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
2012F
2013F
2014F
2015F
2016F
4,100
Partnership with mobile telcos for our clients to transact at their agents
POS
3,400 2,650 1,850
Other Initiatives Launch of mobile branches: so far 5 mobile vans have been ordered for
1,000 202
2012 Become super agents for mobile telcos to attract their customers to BK
2011
2012F
2013F
2014F
2015F
2016F
and increase cross selling opportunities
Expanding Our Self Service Products

Growing our Card Business Increasing our Mobile product offering Attractive Products
2011 Achievements
Issuing of approximately 40,000 VISA Electron cards Interoperability of our ATMs with VISA Electron and local proprietary Cards
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
2012 Targets
AMEX acquiring. (CUP and Diners Club acquiring have already been completed) Launch of three new card products VISA Prepaid VISA Classic (Credit Card) VISA Gold (Credit Card) Launch of E-commerce
Order cheque books
2. Launching our mobile payment platform

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
Refreshing Product And Service Line Up

New Business Lines
1. Teleco mobile money agency Super agent for the two telcos All the 47 branches will be agents for the mobile teleco 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 Consumer loans to tap the growing middle class Credit cards Payroll loans: Leveraging our corporate clients payrolls 2. Remittances Grow 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 competitiveness
REVIEW OF FINANCIAL PERFORMANCE IN Q1 2012 & 2011
Balance Sheet Highlights

Total Assets RwF bn 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 2007 2008 2009 2010 2011 Q1 2012 50.0 0.0 2007 2008 2009 Net Loans 61.6 64.8 RwF bn 140.0 120.0 100.0 31.9 15.9 18.5 80.0 60.0 40.0 20.0 0.0 2007 2008 2009 2010 2011 Q1 2012 2007 2008 2009 2010 2011 Q1 2012 48.7 72.1 77.1 101.4 123.1 132.4 2010 2011 Q1 2012 121.5 120.8 100.0 151.9 150.0 108.7 104.9 197.7 287.9 RwF bn 300.0 303.0 250.0 200.0 133.3 165.8 226.3 238.2 Total Liabilities
Shareholders Equity RwF bn 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 12.8
Asset Quality
Manageable NPL Ratio
25.0%
Improving Coverage Ratio

Rwf Bn
12.0
Cost of Risk**, %
4.5%
NPLs 72.6% 55.3% 57.1%
Coverage ratio 69.1%

80.0% 4.0% 3.5% 3.0% 2.5% 2.0%
3.8%
20.0%
19.4%
10.0
64.3%
70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
15.0%
15.4%
8.0 6.0
45.8%
2.5% 1.9% 1.1% 0.4%
2.2%
10.0%
8.3%
8.5%
8.3% 6.1%
4.0 2.0
1.5% 1.0% 0.5% 0.0%
5.0%
10.0%
0.0% 2007 2008 2009 2010 2011 Q1 2012
7.5
0.0
9.2 2008
5.8 2009
8.1 2010
10.1 2011
8.1
0.0%
2007
2008
2009
2010
* 2011 Q1 2012
2007
Q1 2012
Notes: * Q1 2012 figure is annualized ** LLP charge / Average gross loans for period
NPLs by segment
Collateral Structure Cash Cover, 1.5% Unsecured, 21.2% Guarantees, 1.8%
Retail NPLs, 32.1% Corporate NPLs, 67.9%
Retail NPLs, 31.7%
Corpor ate NPLs, 68.3%
Unregistered, 19.3%
Real Estate, 56.2%
Source: Bank of Kigali Audited IFRS Statements 2007-2010, Bank of Kigali Unaudited IFRS Statements 2011
Funding
Funding Structure, %
Significant Potential For Growth In Higher Yielding Assets

90.0% 80.0% 70.0%
Net Loans/Customer Deposits 76.8% 70.4% 59.7% 47.8% 40.1% 50.8%
Net Loans/Assets 74.7% 68.0% 51.3% 42.8% 43.7% 65.0%
5.7%
9.1%
21.4% 67.2% 5.6%
21.4%
60.0% 50.0%
62.9% 6.6%
40.0% 30.0% 20.0% 10.0% 0.0%
Deposits
Due to Banks
Shareholders Equity
Other
2007
2008
2009 Highlights
2010
2011
Q1 2012
Strong Capital And Liquidity Position 70.0% 60.0% 50.0% 40.0% 30.0% 19.9% 20.0% 10.0% 0.0% 2007 2008 2009 2010 2011 Q1 2012 14.0% 14.9% 20.1% 35.9% 34.7% 29.1% 28.6% 42.1% 43.9% CAR,% Liquidity Ratio, % 60.8% 56.8%
Deposits are the primary source of funding with share of deposits exceeding 60% as at March 2012 Strong growth in deposits has been driven by our branch expansion The Bank has also signed 3 long-term credit lines with the European Investment Bank worth 5 million for 7 years, US$20 million for 10 years with the French Development Agency and US$12 million for 10 years with the African Development Bank, The Bank had drawn down EUR 2.6 m & US$5.0 million on the EIB & AFD loans respectively by December 2011
Source: Bank of Kigali audited IFRS Statements
Q1 2012 Performance Highlights

Net Interest Income
Rwf bn 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Q1 2011 Q1 2012 3.6 +40% 5.1 Rwf bn 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q1 2011 Q1 2012 2.7
Net Non-Interest Income

+31% 3.6 Rwf bn 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0
Total Operating Income

8.7
+36% 6.4
Q1 2011
Q1 2012
Total Operating Costs

Rwf bn 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q1 2011 Q1 2012 3.1 4.0 3.0 2.0 1.0 0.0 +26% 3.9 Rwf bn 6.0 5.0
Profit Before Provisions

Rwf bn 45% 3.5 4.8 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q1 2011 Q1 2012 1.9
Net Income
ROAA* 4.4% ROAE* 20.5%
+69%
3.2
3.3
Q1 2011
Q1 2012 *Annualized
2011 Performance Highlights

Net Interest Income
RwF bn 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0
-
Net Non-Interest Income

RwF bn
Total Operating Income

RwF bn 35.0 30.0
+36%
16.6
14.0 12.0
+43%
12.9
+39%
29.5
12.2
10.0 8.0 6.0 4.0 2.0

-
9.0
25.0 20.0 15.0 10.0 5.0
21.2
2010
2011
2010
2011
2010 2011
Total Operating Costs

RwF bn 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 2010 2011 +42% RwF bn 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 -
Profit Before Provisions

RwF bn +37%
Net Income
15.2
10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 +40%
14.3
8.7
ROAA 3.6% ROAE 18.6%
10.1
11.1
6.2
2010
2011
2010
2011
Income Statement Highlights

Total Operating Income RwF bn 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 4.1% Composition Of Total Operating Income
36.2%
6.4
8.7 21.7% 58.6% 15.6% 14.7% 26.0%
3.0%
56.3%
Net interest income Fees & Commisions FX gains Other non- interest income
Q1 2011 Total Operating Costs RwF bn 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q1 2011 3.1
Q1 2012
Net interest income Fees & Commisions FX gains Other non- interest income
Composition Of Total Operating Expenses

26.4%
3.9 32.8% 53.7% 33.1% 49.8%
13.5%
Personnel expenses Depreciation and amortization
17.1%
Personnel expenses Depreciation and amortization Other operating expenses
Q1 2012
Other operating expenses
Consistent Profitable Growth

Sustainable Net Interest Margin, % 12.0% 9.5% 9.0% 9.0% 8.2% 8.3%
Nigeria average: 6.8% SA average: 6.8%
Attractive Cost/Income ratio 60.0% 50.0% 39.5% 40.0% 39.8% 47.5% 44.1%
Nigeria average: 67.3% SA average: 59.1%
8.4%
8.2%
48.2%
44.7%
6.0%
30.0% 20.0% 10.0%
3.0%
0.0% 2007 2008 2009 2010 2011 Q1 2012
0.0% 2007 2008 2009 2010 2011 Q1 2012
Consistent Returns To Shareholders, % 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2007 2008 2009 2010 2011
*Q1 2012 figures are annualized Source: Bank of Kigali Audited IFRS Statements 2007-2011 Bank of Kigali reviewed results Q1 2012, African Alliance Research 2012
Strong Return on Average Assets, %

Nigeria average: 1.5%
37.5%
39.4% 30.7% 24.5%
SA average: 14.4% Nigeria average: 10.4%
18.6%
20.5%
Q1 2012
5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%
4.7% 4.1% 3.9% 3.5%
SA average: 1.1%
4.4% 3.6%
2007
2008
2009
2010
2011
Q1 2012
ST R AT EG I C O U T LO O K
Strategic Outlook
Objectives Strategies
Build a ubiquitous branch footprint throughout the country Build sufficient channel capacity
Action
Expand the branch network to 60+ branches by YE 2013 Increase the number of ATMs, POS terminals and cards outstanding Build a modern and scalable mobile banking and Internet banking platforms Alternative client acquisition & service channels (retail chains, cobranded cards, utilities, etc) Flexible, offset, variable-rate, etc mortgages Full range of consumer loan products Revolving credit cards Payroll & pension-backed loans & overdrafts Microfinance Modern, multi-currency current accounts with debit cards Ubiquity of ATMs and POS terminals in urban centers and reasonable proximity elsewhere Payment & e-wallet solutions Full range of deposit products
Outcomes
Benefit from first-mover advantage outside the capital city, making it more difficult for the competitors to follow suit Reach out to the unbanked (but bankable) population Become the bank of choice and convenience for the middle class and youth entering the employment sector Create capacity to service 500,000+ clients Maximize the product-to-client ratio Grow with clients Valuable source of retail clients through payroll programs Growth of loan book and F&C income
Customer growth in terms of current accounts
Expand retail product offering
Increase the loan to deposit ratio to 60% Increase retail loans penetration
Integrated client coverage Leverage the superior lending capacity Cross-selling opportunities Documentary operations & trade finance, FX, other solutions Rep offices in EAC from 2012 Leverage the superior access to wholesale funding to complement the deposit funding base
Healthy structure & growth of balance sheet
Consolidate the leading position in corporate banking Increase the maturing profile of liabilities Create a universal banking platform
Diversification of funding base Expand the share of higher-margin lending Maximise the cross-sell opportunities Grow the share of retail in the loan book up to 30%-40% in the medium term
Reduce maturity gap Enable further expansion of long-term lending Further diversification of revenue streams
Private Banking, Securities, Insurance
Earnings growth ~30% Return on Average Equity > 20%
Maintain profitable growth
Continuous improvement of risk management policies & procedures Disciplined capital management, medium term target CAR of 15%-17% and ROAE of 20%+, implying ROAA in the 3.5% range
No profitability sacrifices for the sake of market share gains Sensible dividend policy as the growth curve flattens out over time
Management Targets
Total AssetsGrowth Total Assets Growth 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 46% 70% 60% 60% 30% 50% 40% 30% 20% 10%
Q1 2012: +5% YTD
Gross Loans/Total Assets
Other Management targets Selected Other Management targets
Launch representative offices within the EAC region
45%
Q1 2012: 45%
Kampala Launch agency banking
Nairobi
0% 2011 Branch expansion 2012P
Launch Premier Banking - targeting 500 clients by YE 2013
2011
2012P
Return on Average Equity 21% 20% 20% 19% 19% 19% 18% 18% 2011
* Annualised
Revamp the existing digital wallet/mobile banking

Q1 2012*: 20.5%
60 50 40 30 20 10 0 44
56
Q1 2012: 47
distribution channel
20%
2012P
2011
2012P
Contact Information
For information please contact: Lado Gurgenidze Chairman of the Board Email: lgurgenidze@bk.rw Mobile: +995 599 477 272 Lawson Naibo Chief Operating Officer Email: lnaibo@bk.rw Mobile: +250 78 830 2076 Shivon Byamukama Company Secretary Email: sbyamukama@bk.rw Mobile: +250 78 838 4547 James Gatera Chief Executive Officer Email: jgatera@bk.rw Mobile: +250 78 814 3000 John Bugunya Chief Finance Officer Email: jbugunya@bk.rw Mobile: +250 78 830 6100 Linda Rusagara Investor Relations Officer Email: lrusagara@bk.rw Mobile: +250 784 300 334
Visit our website, www.bk.rw, or follow us on Scribd to access our Investor Presentations, Press Releases and Annual Reports.
Telephone number: +250 252 593100. Address: Plot 6112, Avenue de la Paix, Kigali Rwanda
43

Bank of Kigali Investor Presentation Q1 &amp;3M 2012

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Bank of Kigali Investor Presentation Q1 &amp;3M 2012

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BANK OF KIGALI INVESTOR PRESENTATION

Bank of Kigali Investor Presentation Page 1

Bank of Kigali Investor Presentation Page 2

James Gatera Chief Executive Officer Email: jgatera@bk.rw Te l : + 2 5 0 2 5 2 5 9 3 1 2 1

Bank of Kigali Investor Presentation Page 3

Key Investment Highlights

2. Bank of the Year 20092011

3. Best Bank in Rwanda 2009-2011

The rating reflects the Banks

Experienced Management Team Profitable Growth

Bank of Kigali Investor Presentation Page 5

Bank of Kigali Investor Presentation Page 6

Rwanda Country Profile

Area Population (2010) Official Languages Capital Currency Credit Rating

Bank of Kigali Investor Presentation Page 7

Sound Macro Fundamentals

Nominal GDP Per Capita

Nominal GDP (US$ Bn)

Bank of Kigali Investor Presentation Page 8

Mining and quarrying, 1.3%

Wholesale and retail trade, 12.9%

Trade Deficit As A % Of GDP

Current Account As a % of GDP

2008 2009 2010 Current Account Deficit as a % of GDP

Source: Ministry of Finance and Economic Planning, IMF

Source: National Institute of Statistics Rwanda

Bank of Kigali Investor Presentation Page 9

Bank of Kigali Investor Presentation Page 10

Significant Banking Sector Potential

Large Unbanked Population

Economy is still cash based with bank accounts being used

Source: Finscope Rwanda 2008

CAR (Tier One)

Total CAR Liquidity Ratio

15% 20% 5% of total deposits

Lending in foreign currency

Bank of Kigali Investor Presentation Page 11

Banking Sector Overview

Interest Rate Analysis 1,520

1,475 1,226 856 922 1,011

2010 Key Repo Rate

2011 T-Bills Rate Deposit Rate

2012 Lending Rate

Recent Regulatory Reforms To Improve Access To Credit

Bank of Kigali Investor Presentation Page 12

Timeline Of Foreign Investment In The Rwandan Banking Sector

80% stake in BCR

40% stake in Cogebanque

30% stake in BPR

2008 Bank of Kigali Market Share by Total Assets 23.4%

Bank of Kigali Investor Presentation Page 13

Banking Sector Overview Contd

Market Share By Total Assets In 2008

Market Share By Total Assets In 2011

Market Share By Total Assets In Q1 2012

Five foreigncontrolled banks, 48.3%

Top three local banks, 51.7%

Six foreigncontrolled banks, 49.5%

Top three local banks, 50.5%

Six foreigncontrolled banks, 49.5%

Top three local banks, 50.5%

Source: the National Bank of Rwanda, company estimates

Bank of Kigali Investor Presentation Page 14

Banking Sector Growth Vs Bank of Kigali Growth Q1 2012

Bank of Kigali Investor Presentation Q1 &3M 2012

Bank of Kigali Investor Presentation Q1 &3M 2012