Transcript Introduction

My Story
Dr. Martin Oduor-Otieno, KCB Group Chief Executive
1
The Extra Ordinary Story Of KCB
Vision, Mission & Values
Vision:
To be the preferred financial solutions provider in Africa with global reach.
Mission:
To drive efficiency whilst growing market share in order to be the preferred
financial solutions provider in Africa with global reach.
Values:
Putting the CUSTOMER
first
Working together as a
TEAM
Being PROFESSIONAL in
everything we do
A willingness to
CHANGE
Caring for the
COMMUNITY
2
The Extra Ordinary Story Of KCB
Where we have come from
• KCB has been in Kenya for over 114 years, first as National
Bank of India then as National & Grindlays Bank.
• From one tiny branch in Mombasa in 1896, we now have 167
branches, spread across the country.
• We also serve our customers through over 750 ATMs across
the region, mobile telephone banking & other global services .
• Our Client base stands at 1.5M customers, representing 11%
of market share (customers); 15% by value.
• We have the largest asset base and capital base in EA; Kshs
244 B and Kshs36.8 B respectively.
• Employer of choice with approximately 5,000 staff
3
The Extra Ordinary Story Of KCB
Pioneering in Tanzania
• Regional expansion began in 1997 with entry into
Tanzania.
• Our vision was to capture the EAC market as the
Moshi
Community was reborn; promote regional businesses.
• First branch in Dar-es-Salaam but now also in Mwanza,
Morogoro
6
Arusha, Moshi, Morogoro & Zanzibar.
• Recorded successes in spite of challenges; an inspiration
to Kenyan businesses in that market.
• KCB shares cross-listed on Dar-Es-Salaam Stock
Exchange
• Tanzania slowly embracing regional integration
4
The Extra Ordinary Story Of KCB
Braving the unknown- Southern Sudan
• KCB was the first international bank to be
licensed to operate in Southern Sudan in 2006.
• Very brave move as country had just began
developing systems and structures; huge risks.
• Began operations in Rumbek and Juba;
expanded to 14 locations; significant market
Bentiu
share.
• KCB is the key banker for the Government of
Southern Sudan; benefits from
Rumbek
6
Yambio
Yei
Nimule
Torit
strong pro-
Kenya sentiment in the market based on
support during CPA negotiations.
5
The Extra Ordinary Story Of KCB
Venturing into Uganda
• Launched our first branch in Kampala in 2008 and
since expanded to 14 branches.
• Uganda is Kenya’s top trading partner hence great
opportunity for financial intermediation.
Hoima
• Immense synergies with our businesses in Rwanda and
6
S. Sudan.
• Recent discovery of Oil a major driver of economic
growth into the future.
• KCB Shares cross-listed at Uganda Securities Exchange
6
The Extra Ordinary Story Of KCB
Rwanda – The Land of a Thousand Hills
• Started with a state-of-the-art branch at Avenue
de la Paix, Kigali; grown to 9 branches.
• KCB is a strong brand in the market.
Rubavu
Musanze
• Rwanda has made huge strides in opening up its
5
market to the region.
• Increasing business opportunities, especially in
ICT sector; KCB positioning itself to tap into the
Huye
potential.
7
The Extra Ordinary Story Of KCB
…next stop?
Burundi
DR Congo
Zambia
These countries offer KCB additional opportunities to expand footprint
• Synergies with existing markets
• Value in strengthening regional ties; more business for the bank and its customers
• Largely untapped markets
• Interest from Foreign investors/ increasing FDIs
8
The Extra Ordinary Story Of KCB
KCB’s Regional Growth Strategy
Leverage on
Technology:
• Single platform
banking system
• Intelligent ATMs
• Mobile banking
products
SME & BOP
products.
Mortgage/ABF
products
Youth products
• Tanzania – Islamic banking products,
Mortgage finance, Asset Finance,
credit cards and women and youth
products
• Southern Sudan - Advantage
banking, Mortgage finance and
Money transfer services
• Uganda – Advantage banking and
Money transfer services
• Rwanda – Mortgage
finance
products, personal and group
business accounts
• Eastern Africa – Synergies from EAC
Common Market
9
The Extra Ordinary Story Of KCB
Our Evolving Ownership Structure
96.0%
100.0%
90.0%
80.0%
70.0%
59.8%
60.0%
Shareholders
Shareholding
50.0%
29.9%
40.0%
30.0%
10.3%
20.0%
10.0%
3.6%
0.3%
0.0%
Local Institutional Investors
Local Individual Investors
Foreign Investors
10
The Extra Ordinary Story Of KCB
Government Shareholding
I
P
O
P
O
P
O
P
O
R
I
G
H
T
S
R
I
G
H
T
S
R
I
G
H
T
S
11
The Extra Ordinary Story Of KCB
Our Market Position
Category
Dec 2009 Kes Billions Ranking 2009
Total Assets
172.38 No 1 Market Share 13.10%
Customer Deposits
137.97 No 1 Market Share 13.71%
Total Deposits
147.28 No 1 Market Share 14.18%
Loans & Advances (Net)
96.56 No 1 Market Share 13.95%
Shareholders Funds
22.40 No 3 Market Share 11.41%
Interest on Loans and Advances
11.82 No 2 Market Share 13.43%
Total Interest Income
15.24 No 2 Market Share 13.01%
Net Interest Income
12.37 No 2 Market Share 14.87%
Profits Before Tax
6.43 No 3 Market Share 13.49%
12
The Extra Ordinary Story Of KCB
Resilient Share Price
13
The Extra Ordinary Story Of KCB
PBT Growth (Kshs Millions)
8,000
6,013
6,300
6,513
6,000
4,226
4,000
3,167
1,948
2,000
369
750
920
2003
2004
-
(2,000)
(4,000)
2000
2001
2002
2005
2006
2007
2008
2009
Sep-10
(766)
(4,179)
(6,000)
Proportion of profits from the subsidiaries increasing albeit slowly.
This we look to grow to account for 20% of the Group’s PBT over the next 5 years.
14
The Extra Ordinary Story Of KCB
Net Loans and Deposits (Kshs. Billions)
244
250
195
191
200
193
163
150
120
94
93
100
50
127
73
39
65
49
34
60
47
51
46
60
30
27
2002
2003
78
70
77
64
56
36
36
2004
2005
138
121
94
64
45
0
2000
2001
Net Loans
Deposits
2006
2007
2008
2009
Sep-10
Total Assets
15
The Extra Ordinary Story Of KCB
Dividend Payout (Kshs Millions)
16
The Extra Ordinary Story Of KCB
Return on Equity
40%
20%
9% 7%
5%
21% 23% 20% 18% 16%
13%
0%
-20%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep-10
-6%
-40%
-60%
-58%
17
The Extra Ordinary Story Of KCB
Shareholders Funds
40
36.8
35
30
25
21.09
22.8
20
15
10
8.05
8.58
8.38
5.17
10.08
11.62
13.2
5.61
5
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Sep-10
18
The Extra Ordinary Story Of KCB
Enhanced Potential – Post Rights Issue
Single Borrower Limit
After rights issue
6,947M
Before rights issue
4,492M
19
The Extra Ordinary Story Of KCB
KCB Awards
I.T. Division scooped the Network Innovation Award from CISCO Systems(2009).
Euromoney Award for Best Bank in Kenya in the 2009
Euromoney Awards of Excellence
Banking Innovation of the Year Award in 2009 for KCB Connect.
The Kenya Information & Communications Technology Excellence Awards
Africa investor SRI (Socially Responsible Investment) 30 CEO of the Year (2010)
The Banking Awards 2010:
• Best Bank in Product Marketing
• Best Bank in Technology Use
• Best Retail Bank
• Best Bank in Asset Finance
• Best Bank in Mortgage Finance
EMEA Finance's best local bank in Kenya 2010 award for the 3rd consecutive year
20
The Extra Ordinary Story Of KCB
Socially Responsible & Sustainable Business
• KCB is the first bank in
Eastern Africa to launch a
sustainability programme.
• Issued first Sustainability
Report in 2008
• Implementing the KCB
Green Agenda; a blueprint for green business
practices.
• The
KCB
Foundation
supports the community in:
•Education
•Environment
•Enterprise Development
•Health
•Humanitarian Intervention
Launched Friends of the
Foundation
Partnership
programme.
Amb. James Baba Min. of State and KCB
Staff during the Uganda SOS Medical Camp
21
The Extra Ordinary Story Of KCB
You can be part of KCB’s Success
Come
experience
our advantage
service
Start your
children on
the savings
culture
through our
cub accounts
KCB
Ambassador
Invest in and
through KCB
Transact
through KCB’s
Global
correspondent
banks
22
The Extra Ordinary Story Of KCB
You can be part of KCB’s Success
Engage with us
via our varied
contact points
– branches and
contact center
Mobile
Banking
KCB
Ambassador
Secure your
home through
S&L Mortgages
Visa/Master
Cards
23
… and finally
THANK YOU.
24