INVESTOR
PRESENTATIONQ1 2021
➢ Who We Are
➢ Macro Economic Highlights
➢ DTB’s Response to COVID-19
➢ DTB’s Strategy- DTB Vision 2020
➢ DTB’s Strategy- DTB Strategy 2030 and Beyond
➢ DTB’s Recognition
➢ Managing Risks and Building Resilience
➢ Remodeling the Business Pivoting to Digital
➢ Financial Performance
➢ DTB 2020 Integrated Report & Financial Statements
➢ Outlook
WHO WE ARE
Macro EconomicHighlights
Who We AreDTB’s Response toCOVID-19
DTB’s Strategy Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
Integrity - Be Ethical and Fair• We honour our commitments and do what is right• We are fair, respectful and honest at all times• We are ethical in our decisions and interactions
• We take responsibility for our actions• We are prudent and responsible with the assets entrusted to DTB
Customer Centric - Deliver Great Experiences• We value our customers and develop products and services around their
needs• We provide exceptional service to all we serve
• We understand and respect our customers• We deliver solutions that add value to our customers’ lives• We consider the impact of our policies and decisions on our customers• We endeavor to be fully transparent with our customers
Value People - Respect, Empower, Appreciate• We treat our people equitably and make decisions on merit• We invest in people and provide opportunities for learning and growth• We empower people to do what is needed for success• We provide a positive and collaborative work environment• We celebrate our successes and recognise people for their contributions• We encourage and embrace diversity
Progressive - Innovate and Challenge• We challenge our thinking to raise the bar• We encourage our team members to question
the status quo• We innovate and adapt to change• We positively impact and serve the communities
in which we live
Excellence - Be Your Best• We take ownership of what we do• We relentlessly pursue quality without
compromise• We consistently adhere to measurable standards
and look for ways to exceed them• We benchmark against the best
Enabling people to advance with confidence and success
To make our customers prosper, our staff excel and create value for our stakeholders.
DTB GROUP STRUCTURE
4Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
as at March 2021
DTB’s Response toCOVID-19
DTB’s Strategy
DTB’S FOOTPRINT
5
2,208Employees
: 1,023
: 536
650,623Customers : 260,536
: 219,722
as at March 2021
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
: 167,493
: 2,872
8% year on year
growth
: 602
: 47
4%year on year
decline
134Branches
: 69
: 28
: 33
: 4
1%year on year
decline
160ATMs
: 67
: 37
: 56
-No change
year on year
DTB’s Response toCOVID-19
DTB’s Strategy
6
WHAT DIFFERENTIATES US
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
Diversified distribution channels and footprint.
Extensive product range, with growing emphasis on digital products, services and channels.
Robust ITPlatform.
Reputation for professionalism and integrity.
Strong corporate governance and compliance culture underpinned by effective internal control systems.
Established regional network and market knowledge covering the East African Community.
Strong capital base anchored on shareholders resources and standing.
Solid brand equity built over 75 years.
Commitment to a sustained organisation-wide culture of service excellence.
Diamond Trust Bank (DTB) is a leading, Tier I East African commercial bank headquartered in Nairobi, Kenya and listed on the Nairobi Securities Exchange (NSE) since 1972. As one of Eastern Africa’s leading and longest established banking groups, we understand the intricacies of the region’s markets and provide a wide range of services in business and retail banking. To continue staying at the forefront of the industry, we are re-imagining banking.
We use innovation and digital technology to extend our reach, provide convenience and a better customer experience, as well as become more agile in creating tomorrow’s solutions. The Group remains a purpose-driven institution with a tailored corporate culture to the local markets in which it operates in and is driven towards a more customer-centric and innovative business organisation.
DTB’s Response toCOVID-19
DTB’s Strategy
7
MACRO- ECONOMICHIGHLIGHTS
8
MACRO- ECONOMICHIGHLIGHTS- EAST AFRICA
GDP Growth
Exchange Rate to USDSource: IMF World Economic Outlook April 2021
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
109.4
1,947.4
2,319.0
3,665.0
104.3
1876.0
2296.5
3762.9
Kenya
Burundi
Tanzania
Uganda
Mar-20 Mar-21
1%
4%
5%
3%
-0.1%1.0%
-2.1%-1.3%
7.6%
2.7%
6.3%
2.8%
Kenya Tanzania Uganda Burundi
2020 Expected 2021
Source: Respective Central Banks
DTB’s Response toCOVID-19
DTB’s Strategy
MACRO- ECONOMICHIGHLIGHTS- KENYA
9Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
Source: CBK March 2021
▪ CBR is only applicable to 30% of the Banks’ legacy Kenya Shilling denominated loans still under Rate Cap Law (now repealed).
▪ T-bills rate has remained stable-Government is converting short term debt to long term bonds to ease repayment burden
▪ Inflation is stable anchored by stable monetary policies put in place
Inflation, CBR and 91-Day T-Bills rate (%)
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
CBR Inflation 91 day T-Bills
DTB’s Response toCOVID-19
DTB’s Strategy
10
DTB’s RESPONSE TO COVID-19
CitizenshipRelief to
Borrowers
Committed the equivalent of over KShs 100 million
to COVID-19 support in East
Africa. Supported over 30,000 economically vulnerable
households across East Africa.
Repayment holidays granted
for stressed facilities. As at
Q1 2021 valued at KShs 72 Billion (33% of loan
book) across the Group.
MSME Credit Access
Pivoting to Digital
Capital Buffers
Partnered with the National Treasury
of Kenya to provide access to credit amounting
to KShs 1.6 billion to MSMEs, under
the Credit Guarantee Scheme.
Liquidity Buffers
Boosted DTB’s liquidity through
USD 100 million in new funding
from Development Finance
Institutions.
Given the global and regional
uncertain operating
environments, we have enhanced
our capital buffers.
Waived fees on mobile banking transactions to
discourage the use of cash.
Transaction fees foregone
amounted to KShs 140 million since March 2020.
11
DTB’s APPROACH TO SUSTAINABILITY
DTB’s approach to sustainability involves connecting directly with people and making a lasting impact on theirlives. DTB gives careful consideration to the impact of our business activities on the interests of ourstakeholders— customers, employees, the larger community and shareholders. We strive to create sustainablesocial and economic value by delivering delightful and lasting experiences to all those we interact with.
The Bank continues to track progress in 10 of the 17 UN SDGs. More details of the same can be found on theBank’s website by visiting: https://dtbk.dtbafrica.com/sites/default/files/downloads/2020_Integrated_report.pdf
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
OutlookDTB’s Response toCOVID-19
DTB’s Strategy
12
DTB’s STRATEGY-DTB VISION 2020
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
DTB Vision 2020 envisioned DTB as 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
➢ as a ‘one- bank, one customer’ omnichannel regional bank.
➢ by providing seamless and consistent customer experience, across borders, through amultiplicity of channels:
- traditional (branches, ATMs, cards etc.)- digital channels (enriched mobile banking and enhanced on-line banking
platforms, digital branches, social media channels, etc.)
DTB Vision 2020
DTB’s Response toCOVID-19
DTB’s Strategy
13
DTB’s STRATEGY-DTB STRATEGY 2030 AND BEYOND
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
DTB Strategy 2030 and Beyond: under review andmodification:
➢ will take into account the changing environment andcustomer behaviour, including the ongoing effects of theunexpected COVID-19 pandemic and the post-pandemic business landscape.
➢ will be anchored on the improvement in the quality oflives of customers – those that DTB is currently serving,as well as those that are under-served.
➢ will be digital at the core through continued investmentin its people, new skills and technologies (Big Dataanalytics, Artificial Intelligence (AI), robotics, cloudcomputing, etc) and innovation.
In Progress
DTB’s Response toCOVID-19
DTB’s Strategy
14
DTB’SRECOGNITION
➢ Best Bank in Customer Satisfaction- Tier I (of 9 participants)
➢ Best Bank in SME Banking (of 11 participants)
WINNERS
➢Best Bank in Mobile Banking (of 4 participants).
➢Best Bank in Asset Finance(of 3 participants).
➢Best Bank in Product Innovation(of 6 participants).
RUNNERS UP
15
MANAGING RISKS AND BUILDING RESILIENCE
26%
29%14%
7%
8%
8%
2% 6%
0%
SECTOR-WISE RESTRUCTURES-GROUP
16
Facilities Restructured Relating to COVID-19 (Q1 2021)
• Moratorium of up to 12 months.• Extension of tenor.• Cost of restructuring absorbed by
the Bank.
33% of the loan book onrestructured terms as at March 2021.
Overall Loan Book
KShs 219 Bn
Facilities RestructuredKShs 72 Bn
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
23%
19%
16%
14%
8%
7%
5%
4%3%
1% 0%
DTB’s Response toCOVID-19
DTB’s Strategy
SECTOR-WISE RESTRUCTURES-KENYA
17
Overall Loan Book
KShs 166 Bn
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
Facilities RestructuredKShs 62 Bn
30%
29%
13%
8%
8%
8%
2%
2% 0%22%
21%
16%
13%
8%
8%
5%
3%2%
2% 0%
Facilities Restructured Relating to COVID-19 (Q1 2021)
• Moratorium of up to 12 months.• Extension of tenor.• Cost of restructuring absorbed by
the Bank.
37% of the loan book onrestructured terms in Kenya as at March 2021.
DTB’s Response toCOVID-19
DTB’s Strategy
18
SECTOR-WISE ANALYSIS OF LOAN BOOK AND NPAs-GROUP
Q1 2021 (%)
Q1 2020 (%)
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
23.3
18.5 16.1 14.2
7.7 7.0 4.8 3.8 3.2
1.2
47.5
27.3
10.6
1.5 5.0 0.1
1.8 5.3 0.2 0.0
Trade Real Estate Manufacturing Tourism Transport and
communication
Agriculture Building &
Construction
Personal
Household
Financial
services
Energy &
Water
Mining
Loans Sector-wise NPA
% of total NPA
25.3
17.3 16.9
13.2 7.4
6.3 5.0 4.0
3.3 1.1
0.2
46.8
16.4 17.3
2.6 8.3
1.8 0.5 5.2
0.0 -
Trade Real Estate Manufacturing Tourism Transport and
communication
Agriculture Building &
Construction
Personal
Household
Financial
services
Energy & Water Mining
Loans Sector-wise NPA
% of total NPA
0.0
0.20.7
1.1
DTB’s Response toCOVID-19
DTB’s Strategy
19
Provision Movement (KShs Mn)
Provision Split(KShs Mn)
BALANCE SHEET HIGHLIGHTS-GROUP
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
1,329 1,174
1,609 1,763
4,510
10,118
Q1 2020 Q1 2021
Stage 1 Stage 2 Stage 3
DTB’s Response toCOVID-19
DTB’s Strategy
20
NON PERFORMING LOANS & COVERAGE RATIOS- GROUP
NPA Ratio Evolution (%)
Specific Provision/ NPA Coverage Ratio (%)
NPL ratio stable and below industry average.
Increase in coverage anchored on prudence and conservatism.
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
12.5
14.1 14.1
7.9
10.3 10.2
0.8
3.4
1.3
8.3
11.9 11.9
Q1 2020 FY 2020 Q1 2021
Industry Gross NPA Ratio (Kenya) Group Gross NPA Ratio
Group COR Kenya Gross NPA Ratio
32.0
43.3 45.2
Q1 2020 FY 2020 Q1 2021
(April 2021)
DTB’s Response toCOVID-19
DTB’s Strategy
13.3 13.9
14.6
19.7 19.8
16.6 17.5
18.0
22.8 22.9
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
Gross
NPA Bank
Gross NPA
Group
21
EVOLUTION OF NON PERFORMING ACCOUNTS (NPA)
Evolution of NPAs (Gross of Interest in Suspense) + Coverage Ratio (Specific Provision/ NPAs Coverage Ratio) (%)
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
NPA Ratio
8.3%
7.9%
8.6%
8.2%
8.8%
8.3%11.9%
10.3%
11.9%
10.2%
45.2%
42.4% 53.8%
51.2%57.2%
54.7%
44.6%
44.6%45.9%
46.5%
KShs
Bn
CoverageRatio
DTB’s Response toCOVID-19
DTB’s Strategy
22
LOAN BOOK PERFORMANCE-NON PERFORMING ACCOUNTS (NPA)
Top 10 NPAs as a % of Total NPAs
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
72%
72%
70%
83%
81%
64%
62%
58%
75%
72%
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Group Bank
DTB’s Response toCOVID-19
DTB’s Strategy
STRONG CAPITAL BUFFERS
23
Core Capital to RWA (%)
Group
Total Capital to RWA (%)
Kenya
Group
Adequate capital ratios above statutory requirement
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
Kenya
10.5 10.5 10.5
19.3 20.7 20.8
Q1 2020 FY 2020 Q1 2021
Min Core Capital/RWA Core Capital /RWA
14.5 14.5 14.5
21.0 22.5 22.4
Q1 2020 FY 2020 Q1 2021
Min Total Capital/RWA Total Capital /RWA
10.5 10.5 10.5
18.4 18.0 19.7
Q1 2020 FY 2020 Q1 2021
Min Core Capital/RWA Core Capital /RWA
14.5 14.5 14.5
20.2 19.7 21.1
Q1 2020 FY 2020 Q1 2021
Min Total Capital/RWA Total Capital /RWA
DTB’s Response toCOVID-19
DTB’s Strategy
LIQUIDITY
24
Liquidity (%)
Kenya
Group
Stable liquidity levels across the Group
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
Draw down of USD 100 million from Development Financial Institutions:IFC- USD 50 million,AfDB- USD 40 million &DEG- USD 10 million.
20.0 20.0 20.0
54.7 56.0 58.7
Q1 2020 FY 2020 Q1 2021
Min. Liquidity (Statutory) DTB Kenya
20.0 20.0 20.0
56.3 56.3 59.5
Q1 2020 FY 2020 Q1 2021
Min. Liquidity (Statutory) Group
DTB’s Response toCOVID-19
DTB’s Strategy
25
REMODELING THE BUSINESS PIVOTING TO DIGITAL
26
CHANNEL PERFORMANCE-Q1 2021
Group
of transactions done outside
branches
Branches
84% of DTB’s retailcustomers subscribe tomobile banking.
88% of mobile bankingsubscribers use thechannel regularly, upfrom 76% in Mar 2020.
85%
15%
of transactions done outside
branches
91%
Kenya
Branches
9%
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
Over KShs 140 million foregone in mobile banking commissions.
DTB’s Response toCOVID-19
DTB’s Strategy
27
MERGING BRANCHES
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
➢ In line with DTB’s digital strategy, the
Bank has responded to the shift to
digital channels by merging some of its
branches, which are in close proximity
to each other.
Branch to be Merged Receiving Branch Last Date of Operation
Jamhuri Street Branch Malindi Branch 30 June 2021
The Oval Digital Lobby Westgate Branch 30 June 2021
9 West Branch Westgate Branch 30 June 2021
Kago Street Branch Eldoret Branch 30 June 2021
Garden City Branch Thika Road Mall Branch 30 September 2021
Eastleigh Branch Madina Mall Branch 30 October 2021
➢ Below is a list of the branches that will be merged:
DTB’s Response toCOVID-19
DTB’s Strategy
28
DTB MOBILE
BANKING- m24/7
Using m24/7 mobile banking platform our customers can:
➢ open a Bank 24/7 digital account in under 5 minutes.
➢ make seamless payments to settle their credit card balances.
➢ worry less about security by authenticating transactions usingleading biometrics such as facial recognition.
➢ conveniently be informed of recent and upcoming transactionsthrough in-app notifications.
➢ confirm their beneficiary’s name before sending money toanother DTB customer.
➢ effortlessly book fixed deposits directly from their phonepromoting a convenient savings culture.
➢ easily conduct foreign currency internal transfers denominatedin USD, GBP and EUR.
➢ comfortably send/ receive Western Union transfers directly ontheir phones.
➢ send money to and from their DTB account effortlessly to thirdparty.
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
OutlookDTB’s Response toCOVID-19
DTB’s Strategy
No. of Mobile Banking (m24/7)
Transactions (Mn)
Value of m24/7 Transactions (KShs Bn)
m24/7 transaction count up by
74%
29
CHANNEL PERFORMANCE-KENYA MOBILE BANKING
114%
m24/7
transaction values up by
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
5.4
9.4
Q1 2020 Q1 2021
16.2
34.7
Q1 2020 Q1 2021
DTB’s Response toCOVID-19
DTB’s Strategy
Mobile Banking Transaction type (% value)
30
Over KShs 60 bn transferred through
the m24/7 channel from
Jan 2021 to Mar 2021.
CHANNEL PERFORMANCE-KENYA
Customers deposits using mobile platforms
up by 3X
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
FinancialPerformance
OutlookRemodeling the BusinessPivoting to Digital
59.5%
20.0%
6.7%
13.4%
0.4%
44.5%
22.7%
16.9%15.5%
0.4%
B2B B2C C2B FUNDS TRANSFER BILL PAYMENTS
Q1 2020 Q1 2021
DTB’s Response toCOVID-19
DTB’s Strategy
31
DTB INTERNET
BANKING- i24/7Using i24/7 our internet banking platform, is a ‘walk in the
park’ experience for our customers as they can:
➢ pay their taxes real time on KRA’s iTax portal.
➢ no longer queue in long lines to pay bills to Kenya Power andNairobi Water.
➢ easily transfer foreign currency denominated in USD, GBP andEUR.
➢ transact securely with a one-time pin sent on email every timethey log in to the i24/7 portal.
➢ view accounts of related companies effortlessly on a singlescreen.
➢ get a 360 view of all the products they subscribe to, without ahitch.
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
FinancialPerformance
OutlookRemodeling the BusinessPivoting to Digital
DTB’s Response toCOVID-19
DTB’s Strategy
No. of Internet Banking (i24/7)
Transactions (Thousands)
Value of i24/7 Transactions (KShs Bn)
32
i24/7 transactions up by
86%
CHANNEL PERFORMANCE-KENYA INTERNET BANKING
Average of 3,480transactions done per
business day on i24/7
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
FinancialPerformance
OutlookRemodeling the BusinessPivoting to Digital
120
223
Q1 2020 Q1 2021
27
47
Q1 2020 Q1 2021
i24/7 transaction
values up by
74%
DTB’s Response toCOVID-19
DTB’s Strategy
No. of POS Acquiring Transactions(Thousands)
Value of POS Acquiring Transactions (KShs Bn)
33
POStransaction count up by
35%
CHANNEL PERFORMANCE-KENYA
POStransaction value up by
11%
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
FinancialPerformance
OutlookRemodeling the BusinessPivoting to Digital
120
162
Q1 2020 Q1 2021
814
900
Q1 2020 Q1 2021
DTB’s Response toCOVID-19
DTB’s Strategy
No. of ATM Transactions(Thousands)
Value of ATM Transactions (KShs Bn)
34
Decline in number of ATM transactions by
22%
CHANNEL PERFORMANCE-KENYA
Increased shift to cashless
transactions
ATMtransaction value down by
18%
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
FinancialPerformance
OutlookRemodeling the BusinessPivoting to Digital
299
234
Q1 2020 Q1 2021
2.8
2.3
Q1 2020 Q1 2021
DTB’s Response toCOVID-19
DTB’s Strategy
35
FINANCIAL PERFORMANCE
BALANCE SHEET HIGHLIGHTS-GROUP
36Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance Outlook
Q1 2020 Q1 2021
KShs 201 Bn KShs 206 Bn
ASSETS
LIABILITIES
Net Loans &
Advances
2%
20%
8%
11%
KShs 127 Bn KShs 152 BnGov-Securities
KShs 385 Bn KShs 417 BnTotal Assets
KShs 273 Bn KShs 302 BnCustomer Deposits
DTB’s Response toCOVID-19
DTB’s Strategy
BALANCE SHEET HIGHLIGHTS-FUNDING, LIQUIDITY AND CAPITALGROUP
37
Funding Capital (%)Liquidity (%)
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
72% 71%
4% 6%2% 2%
17% 17%
5% 4%
Q1 2021` Q1 2020
Customer Deposits Deposits from Banks
Other Liabilities Equity
Borrowings
18.4 18.0
19.7 20.2
19.7
21.1
10.5 10.5 10.5
14.5 14.5 14.5
Q1 2020 FY 2020 Q1 2021
Core Capital /RWA
Total Capital /RWA
Min Core Capital/RWA
Min Total Capital/RWA
DTB’s Response toCOVID-19
DTB’s Strategy
20.0 20.0
56.3 59.5
Q1 2020 Q1 2021
Min. Liquidity (Statutory) Group
BALANCE SHEET HIGHLIGHTS-KENYA
2Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
Q1 2020 Q1 2021
KShs 152 Bn KShs 155 Bn
ASSETS
LIABILITIES
Net Loans &
Advances
2%
7%
KShs 94 Bn KShs 114 BnGov-Securities
KShs 286 Bn KShs 305 BnTotal Assets
KShs 191 Bn KShs 212 BnCustomer Deposits
21%
11%
DTB’s Response toCOVID-19
DTB’s Strategy
72%
15%
12%
1%
0%
DTB Kenya DTB Tanzania DTB Uganda DTB Burundi DTBI
TOTAL ASSETS-SUBSIDIARIES CONTRIBUTION (%)Q1 2021
39
0.9%
0.1%
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
DTB’s Response toCOVID-19
DTB’s Strategy
40
NET LOAN BOOK-CONTRIBUTION BY SUBSIDIARIES
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
76%
16%
7%
1%
75%
16%
8%
1%
DTB Kenya DTB Tanzania DTB Uganda DTB Burundi
Q1 2020 Q1 2021
DTB’s Response toCOVID-19
DTB’s Strategy
CUSTOMER DEPOSITS-CONTRIBUTION BY SUBSIDIARIESQ1 2021
41Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
70%
17%
12%
1%
DTB Kenya DTB Tanzania DTB Uganda DTB Burundi
DTB’s Response toCOVID-19
DTB’s Strategy
DEPOSIT MIXGROUPQ1 2021
42
Kenya
Group
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
60%
61%
1%
9%
29%
Fixed Call Savings Current
54%
1%
13%
32%
DTB’s Response toCOVID-19
DTB’s Strategy
P&L HIGHLIGHTS
43
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
Net Interest Income
Kenya Group
Total Non-Interest Income1.1%
Operating Expenses
Loan Loss provision 68%48%
Profit before Tax (PBT)
Gross Operating Income
Operating Profit Before
Provisions
1%
Profit after Tax (PAT)
3.3 Bn 3.2 Bn
0.9 Bn 0.9 Bn
4.2 Bn 4.1 Bn
1.5Bn 1.5 Bn
2.8 Bn 2.5Bn
0.3 Bn 0.2 Bn
2.5 Bn 2.4 Bn
1.7 Bn 1.6 Bn
5.0 Bn 4.7 Bn
1.6 Bn 1.6 Bn
6.5 Bn 6.3 Bn
2.8 Bn 2.9Bn
4.2 Bn 3.7 Bn
0.7 Bn 0.4 Bn
3.0 Bn 3.0 Bn
2.1 Bn 2.0 Bn
Q1 2021 Q1 2020
5%
7%
5%
10%
6%
-2%
4%
13%
1%
0.5%
-2% -3%
NIM
4.9% 5.0%
12.3% 12.2%
ROE
CTI
COR
NPL
35.2% 37.4%
0.7% 0.5%
11.7% 6.9%
NIM
5.2% 5.4%
12.3% 12.8%
ROE
CTI
COR
NPL
43.5% 46.4%
1.3% 0.8%
10.2% 6.7%
DTB’s Response toCOVID-19
DTB’s Strategy
P&LHIGHLIGHTSGROUP
44
Operating Expenses Credit Impairment (KShs Mn)
Macro EconomicHighlights
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Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
46.4%
43.5%
41.5%
42.0%
42.5%
43.0%
43.5%
44.0%
44.5%
45.0%
45.5%
46.0%
46.5%
47.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q1 2020 Q1 2021
Staff Costs Other Operating Expenses Cost to Income Ratio
13,055
2,937
10,118
7,448
2,938
4,510
Credit Impairment General Provision Specific Provision
Q1 2021 Q1 2020
DTB’s Response toCOVID-19
DTB’s Strategy
P&LHIGHLIGHTS
45
Subsidiary PBT Contribution (KShs Mn)
16% of Group
PBT contributed by subsidiaries
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
Better top line performance by Uganda has caused the subsidiary contribution to improve in 2021.
86%
6%
5%
2%
1%
84%
5%
8%
2%
1%
KE
TZ
UG
DTBI
BR
Actual Mar 21 Actual Mar 20
4234
5053
228
153
155
354
2,516
2,360
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KEY FINANCIAL RATIOS
46Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
OutlookFinancialPerformance
Return on Equity
Kenya Group
NPL Ratio
NPL CoverageRatio
Cost to Income
Return on Asset
Fee Income Ratio
Cost of Risk
Loan to Deposit
12.3%
2.2%
11.7%
44.5%
0.7%
21.8%
35.3% 37.4%
73.1% 76.7%
Actual March 2021
12.3% 12.8%
2.0% 2.1%
10.2% 6.7%
45.2% 32.0%
1.3% 0.8%
23.9% 25.4%
43.5% 46.4%
72.5% 76.5%
Net Interest Margin 4.6% 5.0% 5.2% 5.4%
Actual March 2021
Actual March 2020
12.2%
2.2%
6.9%
33.5%
0.5%
22.6%
Actual March 2020
DTB’s Response toCOVID-19
DTB’s Strategy
47
OUTLOOK
➢ Cautious optimism on economic rebound.
➢ Accelerated rate in balance sheet growth in 2021.
➢ NIMS broadly similar to 2020.
➢ Continued efforts to reduce DTB’s cost of funds.
➢ Lower interest yield.
➢ Continued focus on fee income driven by digital products and
services offerings.
➢ Overheads to be tightly controlled with gradual decline in cost to
income ratio.
➢ Cost of risk to remain at elevated levels.
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
Forward-looking statements are not statements of fact, but statements made by the Group based on our current estimates, projections, expectations, beliefs and assumptions regarding the Group’s future performance. No assurance can be given that forward-looking statements will be correct and undue reliance should not be placed on such statements. These statements, by their nature, involve risk and uncertainty, as they relate to events and depend upon circumstances that may or may not occur in the future. Factors that could cause actual future results to differ materially from those in the forward-looking statements include, but are not limited to, changes in (a) global and national economic conditions, (b) our trading environment, (c) future strategies as contained in our strategic priorities and plans included in the strategic trends, (d) interest rates, (e) credit conditions and the associated risks of lending, (f) actual cash collections, (g) gross and operating margins, (h) capital management and (i) competitive and regulatory factors. The Group does not undertake to update or revise any of these forward-looking statements publicly, whether to reflect new information or future events or otherwise. The Group does not assume responsibility for any loss or damage arising as a result of the reliance by any party thereon, including, but not limited to, loss of earnings, profits, or consequential loss or damage.
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48
Macro EconomicHighlights
Who We Are Managing Risksand Building Resilience
Remodeling the BusinessPivoting to Digital
FinancialPerformance
Outlook
DTB 2020 INTEGRATED REPORT & FINANCIAL STATEMENTS
Scan here to view the Bank’s 2020 Integrated Report on our website for financial performance
and other qualitative information.
DTB’s Response toCOVID-19
DTB’s Strategy