ANALYST’S DAY PRESENTATION

ANNUAL RESULTS 2012 Dr. Charles Kimei, Managing Director

CRDB Bank Public Limited Company

April 4th, 2013

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Forward-looking statements

Statements made in this document relating to future status or

circumstances, including future performance and other trend

projections are forward-looking statements.

By their nature, forward-looking statements involve risk and

uncertainty because they relate to events and depend on

circumstances that will occur in the future.

There can be no assurance that actual results will not differ

materially from those expressed or implied by these forward-

looking statements due to many factors, many of which are

outside the control of CRDB Bank.

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Banking Sector Operating Environment - 2012

The global economy growth slowed down in 2012 with advanced

economies GDP growth of only 1.3% down from 1.6% in 2011

The inflationary pressure continued in 2012 with inflation rate remaining

above 15% for the most part of 2012.

Real gross domestic product (GDP) accelerated to 6.8% against 6.0%

in the previous year despite a downward trends in prices of Tanzania’s

commodity exports

Tight monetary policy throughout 2012;

– with the Statutory Minimum Requirement for government deposits rising from

20% to 40%; and the Net Foreign Open Position cut down from 10% to 7.5%.

The banking sector’s deposits and lending rates in the past year have

been volatile with very high interbank lending rates due to measures

undertaken to reduce inflation.

Going forward, the Tanzanian economy is expected to reach 6.8%

real GDP growth in 2013.

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Competitive Landscape The competition within the banking sector continues to escalate with fifty

(50) institutions in the banking sector in the year 2012.

– During the year, FNB Bank, Equity Bank, Amana Bank and Covenant Bank

were operational for their first full year

Expanding with additional physical and e-banking outlets – ATM’s, mobile

banking, internet banking.

Increasing competition for qualified employees

Emergence of new lines of business – Mortgage finance, Islamic banking,

financial advisory and micro-finance and insurance.

Scale expansion – major bank’s investing in new branches, ATM’s,

banking systems etc.

Competition for payment system – Credit cards, Debit Cards, prepaid

cards. Money transfer and payment system by telecoms i.e. M-Pesa

Sector growth accelerated in the last five years, but sector wide

profitability is not keeping up.

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Key strategy themes for CRDB in 2012

• Building a bank-wide capability for continuous improvement & development

• Change in top management structure

Customer focus

Systems and

processes

Management

Growth beyond

Tanzania

1

3

• Improvements to Branch network, ATMs and service quality

• Improvements to Mobile/Internet banking

• Agency Banking - sub-branch network

• Quality and depth of customer relationships and quality of sales and service skills

as a key source of competitive advantage

Investing in people

& IT 4

5

2 • Maximum leverage of Bank’s economies of scale

• Consolidation of functions to improve quality, control and efficiency

• Upgraded training and talent management

• SIM Banking, MPESA service, Card-less ATM

• First steps in CRDB’s journey to becoming an international bank – Launch of

CRDB Bank Burundi

• Capture opportunities of business development in East African countries

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(TZS Billion)

CRDB Bank Plc. – 2012 Performance Summary

Net Interest Income 153.4 206.3 34.5%

Net Fees and commissions 61.9 74.6 20.5%

Net Foreign Exchange Income 1.5 22.8 1,420%

Operating Expenses 135.9 170.6 25.5%

Profit After Tax 37.7 80.5 113.5%

Loans & Advances to Customers 1,429.3 1,806.9 26.4%

Customer Deposits 2,408.7 2,591.0 7.6%

Shareholder Equity 254.8 317.4 24.6%

Total Assets 2,713.6 3,074.8 13.3%

Return on Assets 1.9% 3.5%

Return on Equity 15% 25%

NPL/Total Loans 9.1% 6.8%

2011 2012 % Change

Year 2012 was the end of the Bank’s 2008-2012 Business Strategy cycle. The

Group has experienced stellar operating and financial performance in 2012.

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Investor Pay-out – EPS & DPS Growing Strongly The Board has recommend a dividend of Tshs 12 per share.

Total amount of dividend recommended is TZS 26.1 billion, as

compared to TZS 19.6 billion paid out in 2011.

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Operational Review • A new and improved mobile banking service (SimBanking)

was launched in January 2012.

• Ability to transfer funds to and from mobile money

operators like Vodacom Mpesa in real time,

notification by SMS of card transactions

• In the period, the Bank opened six new full service branches

namely, Tegeta, Tabata, Masasi, Oysterbay, Quality Centre

and Chamwino.

• Over 30 ATMs, most of them offsite i.e. not in branch

premises were installed in year 2012.

• The number of merchants with the Bank’s POS devices

grew to 700 in the year.

• The Bank’s Card business offering grew with the

introduction of e-commerce services.

• Offerings for premier customers were greatly improved.

• The Bank also started to roll out new cash back services for

card holders.

• CRDB Bank introduced e-statement services.

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Launch of CRDB Bank Burundi S.A.

The crowning moment for year 2012 for CRDB Bank was the launch

of its subsidiary bank in Burundi.

The bank opened a new subsidiary in Bujumbura capital city of

Burundi. CRDB Bank Burundi was officially launched on 7th

December, 2012 after the soft opening on 2nd November 2012.

The subsidiary, with one branch (Inyenyeri), one mobile branch and

five ATMs was officially opened by the President of the Republic of

Burundi, His Excellency Pierre Nkurunziza.

CRDB Bank Burundi deposits and total assets at year end stood at

TZS 1.12 billion and TZS 18.65 billion respectively. For the year 2012,

with less than one month of operation, the net loss for the year stood

at TZS 0.3 billion, which is within our expectations.

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Strong Retail and Corporate Banking

Retail Banking

Retail Banking

Corporate Banking

Corporate Banking

• The total retail banking deposits rose to TZS

1,440 billion, a 16% increase.

• The bank approved and disbursed a total of

TZS 167 billion in retail loans.

• A total of 35 new Memorandums of

Understanding were signed with employers

by the Bank

• New Agribusiness Unit which was

separated from Corporate Unit.

• Corporate Loan portfolio recorded a

growth by 24%.

• Established two desks that will offer

specialized services relating to Loan

Syndications and Chinese Business

Relationships.

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SME Business

Loan portfolio and income grew by

28.43% and 33.52% respectively.

Loans outstanding amount was

TZS 123.8 billion. Gross income

grew to TZS 20.2 billion.

– increase in loan size is attributed to

growth in crop financing.

The number of AMCOs financed

for cashew nut increased

significantly in Mtwara and Lindi.

WAFI loans - which are new loan

product to women.

New loan product to fresh Agri-

business graduates - the loans are

granted under AfDB/USAID

Guarantee.

Microfinance Operations

Currently the CRDB Bank has

managed to reach 127 districts in

within Tanzania,

– with 422 partner MFIs

– serving over 635,000 clients.

Establishment of Insurance Agency

Transformation of wholesale

microfinance has enabled 189

affiliated microfinance institutions to

access more than TZS 144 billion.

Commencement of the Warehouse

Operations Support Services

The first two Service Centres are in

Mbezi Luis – Dar es Salaam and in

Ngaramtoni –Arusha.

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Treasury Operations

Treasury technology infrastructure

was also strengthened to improve

effectiveness in foreign exchange

risk management and to facilitate

product penetration to large

corporate customers.

CRDB Bank – Treasury continued

to support the local financial market

development by being an active

market-maker in both foreign

exchange and money markets.

IT and Communication Technology

Internet banking upgrade was done

to facilitate transfers to other banks,

tax payments to Tanzania Revenue

Authority and mobile top-ups.

The Bank implemented an Anti-

Money laundering System (AMLS)

and E-statement solution.

The Bank also continues to upgrade

its communication system to match

the emerging new technologies

through connection to the national

fiber optic network across its

branches

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Capacity Building and Human Resources Investments

The average number of employees during the year was 1,898 employees

Vs. 1,658 employees in 2011.

– The annual growth in staffing was 14%, in line with the business growth.

– Growth in Headcount driven by new branches, agencies and Subsidiary in

Burundi.

During the year, the Group spent TZS 4.1 billion (2011- TZS 4.3 billion) on

staff training in order to improve employees’ technical skills and

performance.

In year 2012, the Bank introduced an E – Learning facility which will

enable employees pursue certification in different professional skills on

line.

In year 2012 the Bank introduced an Employee Wellness Programme

(EWP) that would support its workforce in managing the work/life balance

and hence increase work morale and raise productivity.

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Key Financial Highlights

Funding mix

Current Accounts

29%

Savings Accounts

27%

Term Deposits 29%

Deposits from Banks

4%

Other Liabilities

1%

Equity 10%

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The net loan portfolio grew by 26% from TZS 1,429 billion as at December 31st 2011 to TZS 1,807 billion as at December 31st, 2012.

Loan Portfolio Distribution - 2012

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Future Outlook -2013

The Group’s focus in the coming year is on expanding delivery channels

through to both traditional and e- channels to provide convenient service

to our customers.

The goals for 2013 is for the Group include;

– an ongoing effort in cost management,

– harnessing the talents of the Groups workforce,

– optimized ICT investments,

– expanding the outreach through existing and new subsidiaries both locally and

regionally.

– The Group will place particular emphasis in further reducing the Group’s non-

performing loans ratio (NPL) to less than 5%.

– The assets of the Bank are expected to grow by 17%. This growth is expected

to be achieved while ensuring adequacy of capital and liquidity.

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CRDB Target Position by the year 2017

CRDB Group In

Tanzania &

Regionally

Market position • Substantial strengthening of the

bank’s competitive position in

majority of products

• Maintain position in total assets,

loans & Advances, and the

corporate deposits market

• Target share of banking system

assets of 20%-25%

Financial results • After tax profits increasing 2

fold vs. 2012

• Cost-income ratio decreased

from 62% to 50-55%

• ROE: 22% - 25%

• Headcount of 3,000 employees

Qualitative indicators • Leading skills and capabilities in the

market – customer service & IT

• Strong corporate culture

• Highly qualified employees

• Effective and reliable systems and

processes

• Strong brand and loyal customers

International markets • ~ 3-5% of net income to come from

international operations

• Build foothold in East African markets

• Target market share of 5% or more in

Burundi by 2017.

• Prepare for consolidation regionally

During the year, the Bank’s Business Strategy for 2013-2017 was

developed and approved by the Board.

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Awards in 2012

The Bank won the second best “Employer of the Year Award” which was

coordinated by the Association of Tanzania Employers (ATE).

The Bank won the second best “Presented Financial Statement Award” in

the financial institutions category as announced by National Board of

Accountants and Auditors.

The Bank had also received the award for “Best Company in Leadership

& Corporate Governance”

The award for “Best Company in Human Resources Policies”.

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QUESTIONS