2020 - 2023 Strategy

KCB BANK RWANDA Chairman's Statement

The journey through the past 12 months has been one that reminded me of the immeasurable strength of this bank. Critically it showed us all how resilient our stakeholders can be.

We were repeatedly tested through the unforgiving impacts of the COVID-19 pandemic. I am encouraged that despite this challenge, we stand strong, determined to achieve our goals more than ever. On a positive note, we partnered with the Government of Rwanda through a FRW 100 Million donation targeted to provide relief to citizens that were disproportionately affected by COVID-19.

Rwanda’s GDP contracted by 0.4% in 2020 due to the pandemic, having grown by 9.4% in 2019. Several key sectors were especially affected. Tourism, Trade and Transportation to mention a few. This had a ripple effect on the financial sector.

We restructured 50% of our loan book to ease the burden on our customers and within nine months, over 75% of the customers have bounced back to servicing their debt obligations.

However, at the close of the year going into 2021 the economy is positioned to bounce back. Government based infrastructure spending and re-opening of businesses has provided a positive outlook for the Tourism sector and the diverse value chain attached to it, from hospitality, transport and agriculture.

At the core of the bank’s business, we are implementing a 3-year strategy, which is aligned to provide our customers with innovative, value driven services. Titled Beyond Banking, we aim to be digital to the core, increase our efficiency and productivity, and vitally put the customer first with value propositions.

I believe we are well prepared to achieve these goals because of the Technology infrastructure we invested in over the past few years as well as having a talented group of people that we know are the best for this bank. Credit policy and Risk management remain strong and have been built with the right mechanics to suit all our customers.

Business performance over the past year was not as planned. As I mentioned, the COVID-19 pandemic had stretched effects on us all. Despite a Profit After Tax drop of 38%, we were able to grow our Balance Sheet from FRW 198 Billion, to FRW 232 Billion. Growth in our loan book was aided by investments in Manufacturing, Infrastructure and Services. The bank’s linkages to

we aim to be digital to the core, increase our efficiency and productivity, and vitally put the customer first with value propositions.

regional resources through KCB Group has allowed us to participate in several projects through different available expertise and capital buffers.

As part of the Beyond Banking strategy, expansion of the business through Mergers and Acquisitions remains a priority. KCB Group is currently in the process of finalizing the acquisition of Banque Populaire Du Rwanda (BPR). Shareholders approved a proposal to acquire up to 100 percent of issued ordinary shares. We are looking forward to a renewed approach to providing bigger and better services to customers everywhere in Rwanda.

Our community development is still high up on our agenda. KCB Foundation’s IGIRE program was awarded the RDB Business Excellence Award as Skills Development Promoter of the Year. A worthy recognition for consistent development of Rwandan youth through technical and vocational education. So far, 400 youth have graduated under this program, and we foresee this number growing over the next few years.

Looking forward, I am content that the bank has the right platform to succeed in the long term and we are confident that 2021 will be a fruitful year for our customers and the bank’s business in its entirety.