INVESTOR PRESENTATION - Diamond Trust Bank
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INVESTOR
Q1 2021
PRESENTATION
➢ 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
To make our
Enabling people to customers prosper,
advance with our staff excel and
confidence and create value for our
success stakeholders.
Integrity - Be Ethical and Fair
• We honour our commitments and do what is right Progressive - Innovate and Challenge
• We are fair, respectful and honest at all times • We challenge our thinking to raise the bar
• We are ethical in our decisions and interactions • We encourage our team members to question
• We take responsibility for our actions the status quo
• We are prudent and responsible with the assets entrusted to DTB • We innovate and adapt to change
• We positively impact and serve the communities
Customer Centric - Deliver Great Experiences in which we live
• We value our customers and develop products and services around their
needs
• We provide exceptional service to all we serve Excellence - Be Your Best
• We understand and respect our customers • We take ownership of what we do
• We deliver solutions that add value to our customers’ lives • We relentlessly pursue quality without
• We consider the impact of our policies and decisions on our customers compromise
• We endeavor to be fully transparent with our customers • We consistently adhere to measurable standards
and look for ways to exceed them
Value People - Respect, Empower, Appreciate • We benchmark against the best
• 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
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital Performance
DTB GROUP STRUCTURE
as at March 2021
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 Outlook 4
Highlights and Building Resilience Pivoting to Digital Performance
DTB’S FOOTPRINT
as at March 2021
8% 1%
year on year year on year
growth decline
650,623 134
Customers
Branches
: 260,536 : 167,493 : 69 : 33
: 219,722 : 2,872 : 28 :4
4% -
year on year No change
2,208 decline
160
year on year
Employees
: 1,023 : 602 ATMs
: 67 : 56
: 536 : 47
: 37
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 Outlook 5
Highlights and Building Resilience Pivoting to Digital Performance
WHAT
DIFFERENTIATES US
Commitment to a Diversified distribution
sustained organisation- channels and footprint.
wide culture of service Diamond Trust Bank (DTB) is a leading, Tier I
excellence. Extensive product East African commercial bank headquartered in
range, with growing Nairobi, Kenya and listed on the Nairobi Securities
emphasis on digital Exchange (NSE) since 1972. As one of Eastern
Solid brand products, services and Africa’s leading and longest established banking
equity built channels. groups, we understand the intricacies of the
over 75 years. region’s markets and provide a wide range of
services in business and retail banking. To
Robust IT continue staying at the forefront of the industry,
Platform. we are re-imagining banking.
Strong capital
We use innovation and digital technology to
base anchored
on shareholders
extend our reach, provide convenience and a
Reputation for better customer experience, as well as become
resources and professionalism
standing. more agile in creating tomorrow’s solutions. The
and integrity.
Group remains a purpose-driven institution
with a tailored corporate culture to the local
Established regional Strong corporate markets in which it operates in and is driven
network and market governance and towards a more customer-centric and
knowledge covering the compliance culture innovative business organisation.
East African Community. underpinned by
effective internal
control systems.
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial 6
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital Performance
MACRO- ECONOMIC
HIGHLIGHTS
7
MACRO- ECONOMIC
HIGHLIGHTS- EAST AFRICA
GDP Growth
7.6%
6.3%
2.7% 2.8%
1.0%
-0.1%
Kenya Tanzania Uganda Burundi
-1.3%
-2.1%
2020 Expected 2021
Source: IMF World Economic Outlook April 2021
Exchange Rate to USD
Uganda 3762.9
3,665.0
3%
Tanzania 2296.5
2,319.0
1%
Burundi 1876.0
1,947.4 4%
Kenya 104.3
109.4 5%
Source: Respective Central Banks
Mar-20 Mar-21
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial 8
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital Performance
MACRO- ECONOMIC
HIGHLIGHTS- KENYA
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
Source: CBK March 2021
CBR Inflation 91 day T-Bills
▪ 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
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial 9
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital Performance
DTB’s RESPONSE
TO COVID-19
Relief to MSME Credit Pivoting to Capital Liquidity
Citizenship
Borrowers Access Digital Buffers Buffers
Committed the Repayment Partnered with the Waived fees on Given the global Boosted DTB’s
equivalent of over holidays granted National Treasury mobile banking and regional liquidity through
KShs 100 million for stressed of Kenya to transactions to uncertain USD 100 million
to COVID-19 facilities. As at provide access to discourage the use operating in new funding
support in East Q1 2021 valued at credit amounting of cash. environments, we from Development
Africa. Supported KShs 72 Billion to Transaction fees have enhanced Finance
over 30,000 (33% of loan KShs 1.6 billion foregone our capital Institutions.
economically book) across the to MSMEs, under amounted to buffers.
vulnerable Group. the Credit KShs 140 million
households across Guarantee since March 2020.
East Africa. Scheme.
10DTB’s APPROACH TO
SUSTAINABILITY
DTB’s approach to sustainability involves connecting directly with people and making a lasting impact on their
lives. DTB gives careful consideration to the impact of our business activities on the interests of our
stakeholders— customers, employees, the larger community and shareholders. We strive to create sustainable
social 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 the
Bank’s website by visiting: https://dtbk.dtbafrica.com/sites/default/files/downloads/2020_Integrated_report.pdf
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital Performance 11DTB’s STRATEGY-
DTB VISION 2020
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 a
multiplicity 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 to 12
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital PerformanceDTB’s STRATEGY-
DTB STRATEGY 2030 AND BEYOND
DTB Strategy 2030 and Beyond: under review and
modification:
➢ will take into account the changing environment and
customer behaviour, including the ongoing effects of the
unexpected COVID-19 pandemic and the post-
pandemic business landscape.
➢ will be anchored on the improvement in the quality of
lives of customers – those that DTB is currently serving,
as well as those that are under-served.
➢ will be digital at the core through continued investment
in its people, new skills and technologies (Big Data
analytics, Artificial Intelligence (AI), robotics, cloud
computing, etc) and innovation.
In Progress
DTB’s Response to 13
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital PerformanceDTB’S
RECOGNITION
WINNERS RUNNERS UP
➢ Best Bank in Customer ➢Best Bank in Mobile Banking
(of 4 participants).
Satisfaction- Tier I ➢Best Bank in Asset Finance
(of 9 participants) (of 3 participants).
➢ Best Bank in SME Banking ➢Best Bank in Product Innovation
(of 11 participants) (of 6 participants).
14MANAGING RISKS AND
BUILDING RESILIENCE
15SECTOR-WISE
RESTRUCTURES- Facilities Restructured Relating to
GROUP COVID-19 (Q1 2021)
3% 2% 6%
4%
5% 1% 0% 23% 8% 0%
26%
7%
8%
Overall Loan Facilities
8%
Book Restructured
KShs 219 Bn 7% KShs 72 Bn
19%
14%
14%
29%
16%
33% of the loan
• Moratorium of up to 12 months. book on
• Extension of tenor. restructured
• Cost of restructuring absorbed by terms as at
the Bank. March 2021.
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 Outlook 16
Highlights and Building Resilience Pivoting to Digital PerformanceSECTOR-WISE
RESTRUCTURES- Facilities Restructured Relating to
KENYA COVID-19 (Q1 2021)
2% 2%
3%
8%
5% 22%
2% 0% 2% 0%
8% 30%
8%
Overall Loan Facilities
8% 8%
Book Restructured
KShs 166 Bn KShs 62 Bn
21%
13% 13%
29%
16%
37% of the loan
• Moratorium of up to 12 months. book on
• Extension of tenor. restructured terms
• Cost of restructuring absorbed by in Kenya as at
the Bank. March 2021.
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 Outlook 17
Highlights and Building Resilience Pivoting to Digital PerformanceSECTOR-WISE ANALYSIS
OF LOAN BOOK AND NPAs-
GROUP
47.5
Q1 2021 (%)
23.3 27.3
18.5 16.1
14.2
10.6 7.7 7.0 4.8
1.5 5.0 1.8 3.8 5.3 3.2
0.1 0.2 1.2 0.2
0.7 0.0
Trade Real Estate Manufacturing Tourism Transport and Agriculture Building & Personal Financial Energy & Mining
communication Construction Household services Water
Loans Sector-wise NPA
% of total NPA
46.8
25.3
Q1 2020 (%) 17.3
16.4 16.9
17.3 13.2
7.4 4.0
8.3 6.3 5.0
2.6 5.2 3.3 0.2
1.8 0.5 0.0 1.1 1.1
0.0
-
Trade Real Estate Manufacturing Tourism Transport and Agriculture Building & Personal Financial Energy & Water Mining
communication Construction Household services
Loans Sector-wise NPA
% of total NPA
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial 18
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital PerformanceBALANCE SHEET
HIGHLIGHTS-
GROUP
Provision Movement Provision Split
(KShs Mn) (KShs Mn)
10,118
4,510
1,609 1,763
1,329 1,174
Q1 2020 Q1 2021
Stage 1 Stage 2 Stage 3
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial 19
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital PerformanceNON PERFORMING LOANS &
COVERAGE RATIOS- GROUP
NPA Ratio Evolution (%)
14.1 14.1 (April 2021)
12.5
11.9 11.9
10.3 10.2
8.3
7.9
NPL ratio stable and
below industry average.
3.4
1.3
0.8
Q1 2020 FY 2020 Q1 2021
Industry Gross NPA Ratio (Kenya) Group Gross NPA Ratio
Group COR Kenya Gross NPA Ratio
Specific Provision/ NPA Coverage Ratio (%)
43.3 45.2
32.0
Increase in coverage
anchored on prudence
and conservatism.
Q1 2020 FY 2020 Q1 2021
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial 20
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital PerformanceEVOLUTION OF NON PERFORMING
ACCOUNTS (NPA)
Evolution of NPAs (Gross of Interest in Suspense) +
Coverage Ratio (Specific Provision/ NPAs Coverage Ratio) (%)
10.3% 10.2%
22.8 22.9
8.3%
8.2% 11.9% 11.9%
7.9% 19.7 19.8
8.8% 18.0
8.6% 17.5
8.3% 16.6
KShs Bn
14.6
13.9
13.3
46.5%
54.7%
51.2% 44.6%
57.2% 45.9%
44.6%
42.4% 53.8%
45.2%
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
Coverage Gross Gross NPA NPA Ratio
Ratio NPA Bank Group
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial 21
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital PerformanceLOAN BOOK PERFORMANCE-
NON PERFORMING ACCOUNTS (NPA)
Top 10 NPAs as a % of Total NPAs
72%
Mar-21
81%
75%
Dec-20
83%
58%
Sep-20
70%
62%
Jun-20
72%
64%
Mar-20
72%
Group Bank
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial 22
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital PerformanceSTRONG CAPITAL
BUFFERS
Core Capital to RWA (%) Total Capital to RWA (%)
Kenya Kenya
20.7 20.8 22.5 22.4
19.3 21.0
14.5 14.5 14.5
10.5 10.5 10.5
Q1 2020 FY 2020 Q1 2021
Q1 2020 FY 2020 Q1 2021
Min Total Capital/RWA Total Capital /RWA
Min Core Capital/RWA Core Capital /RWA
Adequate
Group Group capital ratios
19.7
above
18.4 18.0
20.2 21.1 statutory
19.7
requirement
14.5 14.5 14.5
10.5 10.5 10.5
Q1 2020 FY 2020 Q1 2021 Q1 2020 FY 2020 Q1 2021
Min Core Capital/RWA Core Capital /RWA Min Total Capital/RWA Total Capital /RWA
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 Outlook
Highlights and Building Resilience Pivoting to Digital Performance 23LIQUIDITY Liquidity (%)
Kenya
58.7
54.7 56.0
Stable liquidity
levels across the
20.0 20.0 20.0 Group
Q1 2020 FY 2020 Q1 2021
Min. Liquidity (Statutory) DTB Kenya
Group
56.3 56.3
59.5 Draw down of
USD 100 million from
Development Financial
Institutions:
20.0 20.0 20.0 IFC- USD 50 million,
AfDB- USD 40 million &
DEG- USD 10 million.
Q1 2020 FY 2020 Q1 2021
Min. Liquidity (Statutory) Group
DTB’s Response to
Macro Economic DTB’s Strategy Managing Risks Remodeling the Business Financial
Who We Are COVID-19 24 Outlook
Highlights and Building Resilience Pivoting to Digital PerformanceREMODELING THE BUSINESS
PIVOTING TO DIGITAL
25CHANNEL PERFORMANCE-
Q1 2021
Group
Kenya 9%
Branches
85% of transactions
done outside
branches
91% of transactions
done outside
branches
15%
Branches
Over 84% of DTB’s retail 88% of mobile banking
KShs 140 million customers subscribe to subscribers use the
foregone in mobile mobile banking. channel regularly, up
banking commissions. from 76% in Mar 2020.
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Pivoting to Digital 26 Outlook
Highlights COVID-19 and Building Resilience PerformanceMERGING BRANCHES
➢ In line with DTB’s digital strategy, the ➢ Below is a list of the branches that will be merged:
Bank has responded to the shift to
Branch to be Merged Receiving Branch Last Date of Operation
digital channels by merging some of its
Jamhuri Street Branch Malindi Branch 30 June 2021
branches, which are in close proximity
to each other. 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
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Pivoting to Digital 27 Outlook
Highlights COVID-19 and Building Resilience PerformanceDTB 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 using
leading biometrics such as facial recognition.
➢ conveniently be informed of recent and upcoming transactions
through in-app notifications.
➢ confirm their beneficiary’s name before sending money to
another DTB customer.
➢ effortlessly book fixed deposits directly from their phone
promoting a convenient savings culture.
➢ easily conduct foreign currency internal transfers denominated
in USD, GBP and EUR.
➢ comfortably send/ receive Western Union transfers directly on
their phones.
➢ send money to and from their DTB account effortlessly to third
party.
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Pivoting to Digital Outlook
Highlights COVID-19 and Building Resilience Performance 28CHANNEL PERFORMANCE-
KENYA MOBILE BANKING
No. of Mobile Banking (m24/7)
Transactions (Mn)
9.4
5.4 m24/7
transaction count up
by
74%
Q1 2020 Q1 2021
Value of m24/7 Transactions (KShs Bn)
34.7
m24/7
transaction values up by
114%
16.2
Q1 2020 Q1 2021
Macro Economic DTB’s Response to Remodeling the Business Financial
Who We Are DTB’s Strategy Managing Risks 29 Outlook
Highlights COVID-19 Pivoting to Digital Performance
and Building ResilienceCHANNEL PERFORMANCE-
KENYA
Mobile Banking Transaction type (% value)
Over KShs 60 bn
transferred through
the m24/7 channel from
59.5%
Jan 2021 to Mar 2021.
44.5%
Customers deposits
using mobile platforms
22.7%
up by 3X
20.0%
16.9%
15.5%
13.4%
6.7%
0.4% 0.4%
B2B B2C C2B FUNDS TRANSFER BILL PAYMENTS
Q1 2020 Q1 2021
Macro Economic DTB’s Response to Remodeling the Business Financial
Who We Are DTB’s Strategy Managing Risks 30 Outlook
Highlights COVID-19 Pivoting to Digital Performance
and Building ResilienceDTB INTERNET
BANKING- i24/7
Using 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 and
Nairobi Water.
➢ easily transfer foreign currency denominated in USD, GBP and
EUR.
➢ transact securely with a one-time pin sent on email every time
they log in to the i24/7 portal.
➢ view accounts of related companies effortlessly on a single
screen.
➢ get a 360 view of all the products they subscribe to, without a
hitch.
Macro Economic DTB’s Response to Remodeling the Business Financial
Who We Are DTB’s Strategy Managing Risks Outlook
Highlights COVID-19 Pivoting to Digital Performance
and Building Resilience 31CHANNEL PERFORMANCE-
KENYA INTERNET BANKING
No. of Internet Banking (i24/7)
Transactions (Thousands) 223
i24/7
transactions up by
120
86%
Q1 2020 Q1 2021 Average of 3,480
transactions done per
business day on i24/7
Value of i24/7 Transactions (KShs Bn)
47
i24/7 transaction
27
values up by
74%
Q1 2020 Q1 2021
Macro Economic DTB’s Response to Remodeling the Business Financial
Who We Are DTB’s Strategy Managing Risks 32 Outlook
Highlights COVID-19 Pivoting to Digital Performance
and Building ResilienceCHANNEL PERFORMANCE-
KENYA
No. of POS Acquiring Transactions
(Thousands)
162
120 POS
transaction count up
by
35%
Q1 2020 Q1 2021
Value of POS Acquiring Transactions
(KShs Bn)
900 POS
transaction value up
by
814 11%
Q1 2020 Q1 2021
Macro Economic DTB’s Response to Remodeling the Business Financial
Who We Are DTB’s Strategy Managing Risks 33 Outlook
Highlights COVID-19 Pivoting to Digital Performance
and Building ResilienceCHANNEL PERFORMANCE-
KENYA
No. of ATM Transactions
(Thousands)
299
Decline in number of
234
ATM transactions by
22%
Increased
Q1 2020 Q1 2021 shift to
cashless
Value of ATM Transactions (KShs Bn) transactions
2.8
2.3
ATM
transaction value
down by
18%
Q1 2020 Q1 2021
Macro Economic DTB’s Response to Remodeling the Business Financial
Who We Are DTB’s Strategy Managing Risks 34 Outlook
Highlights COVID-19 Pivoting to Digital Performance
and Building ResilienceFINANCIAL
PERFORMANCE
35BALANCE SHEET
HIGHLIGHTS-
GROUP
Q1 2020 Q1 2021
Net
Loans & KShs 201 Bn KShs 206 Bn 2%
Advances
Gov- KShs 127 Bn KShs 152 Bn 20%
ASSETS Securities
Total KShs 385 Bn KShs 417 Bn 8%
Assets
Customer KShs 273 Bn KShs 302 Bn 11%
LIABILITIES Deposits
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook
Highlights COVID-19 and Building Resilience Pivoting to Digital 36BALANCE SHEET HIGHLIGHTS-
FUNDING, LIQUIDITY AND
CAPITAL
GROUP
Funding Liquidity (%) Capital (%)
5% 4%
17% 17%
59.5 21.1
2% 2% 20.2
4% 6% 56.3 19.7 19.7
18.4 18.0
14.5 14.5 14.5
72% 10.5 10.5 10.5
71%
20.0 20.0
Q1 2021` Q1 2020 Q1 2020 Q1 2021 Q1 2020 FY 2020 Q1 2021
Customer Deposits Deposits from Banks Min. Liquidity (Statutory) Group Core Capital /RWA
Other Liabilities Equity Total Capital /RWA
Borrowings Min Core Capital/RWA
Min Total Capital/RWA
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook
Highlights COVID-19 and Building Resilience Pivoting to Digital 37BALANCE SHEET
HIGHLIGHTS-
KENYA
Q1 2020 Q1 2021
Net
Loans & KShs 152 Bn KShs 155 Bn 2%
Advances
Gov- KShs 94 Bn KShs 114 Bn 21%
ASSETS Securities
Total KShs 286 Bn KShs 305 Bn 7%
Assets
Customer KShs 191 Bn KShs 212 Bn 11%
LIABILITIES Deposits
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance
2 Outlook
Highlights COVID-19 and Building Resilience Pivoting to DigitalTOTAL ASSETS-
SUBSIDIARIES
CONTRIBUTION (%)
Q1 2021
15%
12%
0.9%
1%
0.1%
72%
0%
DTB Kenya DTB Tanzania DTB Uganda DTB Burundi DTBI
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook 39
Highlights COVID-19 and Building Resilience Pivoting to DigitalNET LOAN BOOK-
CONTRIBUTION
BY SUBSIDIARIES
76% 75%
16% 16%
7% 8%
1% 1%
DTB Kenya DTB Tanzania DTB Uganda DTB Burundi
Q1 2020 Q1 2021
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook 40
Highlights COVID-19 and Building Resilience Pivoting to DigitalCUSTOMER DEPOSITS-
CONTRIBUTION BY
SUBSIDIARIES
Q1 2021
17%
12%
70%
1%
DTB Kenya DTB Tanzania DTB Uganda DTB Burundi
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook
Highlights COVID-19 and Building Resilience Pivoting to Digital 41DEPOSIT MIX
GROUP
Q1 2021 Kenya
29%
60%
61%
9%
1%
Fixed Call Savings Current
Group
32%
54%
13%
1%
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook
Highlights COVID-19 and Building Resilience Pivoting to Digital 42P&L HIGHLIGHTS
Kenya Q1 2021 Q1 2020
Group
NIM 3.3 Bn 3.2 Bn Net Interest 5.0 Bn 4.7 Bn
5% Income 6% NIM
4.9% 5.0%
5.2% 5.4%
Total Non-
0.9 Bn 0.9 Bn Interest 1.6 Bn 1.6 Bn
1.1% Income -2%
ROE
Gross ROE
4.2 Bn 4.1 Bn Operating 6.5 Bn 6.3 Bn
12.3% 12.2% 1% 4%
Income 12.3% 12.8%
1.5Bn 1.5 Bn Operating 2.8 Bn 2.9Bn
-2% Expenses -3%
CTI
CTI
35.2% 37.4% Operating Profit
2.8 Bn 2.5Bn Before 4.2 Bn 3.7 Bn 43.5% 46.4%
10% 13%
Provisions
COR 0.3 Bn 0.2 Bn Loan Loss 0.7 Bn 0.4 Bn
48% provision 68% COR
0.7% 0.5%
1.3% 0.8%
Profit before Tax
2.5 Bn 2.4 Bn 3.0 Bn 3.0 Bn 1%
7% (PBT)
NPL
Profit after Tax NPL
11.7% 6.9% 1.7 Bn 1.6 Bn 5% (PAT) 2.1 Bn 2.0 Bn 0.5% 10.2% 6.7%
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook
Highlights COVID-19 and Building Resilience Pivoting to Digital 43P&L
HIGHLIGHTS
GROUP
Operating Expenses Credit Impairment
3,500 47.0% (KShs Mn)
46.5% 13,055
46.4%
3,000
46.0%
2,500 45.5% 10,118
45.0%
2,000
44.5% 7,448
44.0%
1,500
43.5% 43.5% 4,510
1,000 43.0% 2,937 2,938
42.5%
500
42.0%
0 41.5%
Q1 2020 Q1 2021 Credit Impairment General Provision Specific Provision
Staff Costs Other Operating Expenses Cost to Income Ratio Q1 2021 Q1 2020
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook
Highlights COVID-19 and Building Resilience Pivoting to Digital 44P&L
HIGHLIGHTS
Subsidiary PBT Contribution (KShs Mn)
1%
42
BR
1% 34
2%
DTBI
50
2% 53
16% of Group UG
8% 228
153
5%
PBT contributed
by subsidiaries
5% 155
TZ
6% 354
84% 2,516
KE
86% 2,360
Actual Mar 21 Actual Mar 20
Better top line performance by
Uganda has caused the subsidiary
contribution to improve in 2021.
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook
Highlights COVID-19 and Building Resilience Pivoting to Digital
45KEY FINANCIAL
RATIOS Actual Actual Actual Actual
March March March March
Kenya 2021 2020 2021 2020 Group
Return on Equity 12.3% 12.2% 12.3% 12.8%
Return on Asset 2.2% 2.2% 2.0% 2.1%
NPL Ratio 11.7% 6.9% 10.2% 6.7%
NPL Coverage 45.2% 32.0%
44.5% 33.5%
Ratio
Cost of Risk 0.7% 0.5% 1.3% 0.8%
Fee Income Ratio 21.8% 22.6% 23.9% 25.4%
Net Interest Margin 4.6% 5.0% 5.2% 5.4%
Cost to Income 35.3% 37.4% 43.5% 46.4%
Loan to Deposit 73.1% 76.7% 72.5% 76.5%
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Performance Outlook 46
Highlights COVID-19 and Building Resilience Pivoting to DigitalOUTLOOK
➢ 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.
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.
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Outlook
Highlights COVID-19 and Building Resilience Pivoting to Digital Performance 47DTB 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.
Macro Economic DTB’s Response to Managing Risks Remodeling the Business Financial
Who We Are DTB’s Strategy Outlook
Highlights COVID-19 and Building Resilience Pivoting to Digital Performance 48We welcome all feedback via email on dtbinvestorrelations@dtbafrica.com
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