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The Experience of Equity Bank LimitedApollo Njoroge

Head of Business Relat ions Equity Bank

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Restructuring banking models from supply to be demand driven.Realign Processes, Procedures & Systems.Restructuring delivery mechanisms.Cultural Re-orientationReview of business models from low volume-high margin to high volume-low margin models.

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Developing a Unique Emotional & economic Bond

with Clients

Transforming lives & livelihoods;

giving dignity & possibilities

Volume of transactions &

Number of clients

Equity Bank: Business Model-Emotional Appeal

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Self

Style of Delivery Actualization

Esteem

Belonging

Social & Security

Products & Services Basic Needs

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SME Concept approach.

Market-led & Customer focusedEvolves around needsIntermediation is at the level of households

Products & servicesDemand driven by life cycle needs Respond to evolvement & development of the client.

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The bank exists to give the freedom of modern banking to the ord inary people of Kenya. Our aim is to provide new financial possibilities to

our customers that have the power to transform their lives. We measure ourselves

by our positive impact on the lives and livelihoods of our clients.

Moving Africa.

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to be the preferred Micro Finance services provider contributing to the

economic prosperity of Africa

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We mobilize resources and offer cred it to maximize value and economically

empower the micro-finance clients and other stakeholders by offering

customer focused quality financial services.

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Super Junior Savings Account

Personal Savings Account

Remittance Savings Account

Business Savings Account

Current Accounts

Jijenge (contractual savings)

Call and Fixed Deposits

A Safe, Secure Place For Your Money!

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Value Proposition For Saving Products

Affordable- Minimum Operating balance - Nil- No ledger fee/No maintenance fee

Accessible- Account opening balance-Nil- No restrictions on amounts and frequency

of withdrawals

- No appointment on seeing the managers

- 65 Branches & 44 Mobile Branches

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Products that respond to lifecycle needs of SME-Loan Products

Social LoansMedical EducationEmergency

Working Nation LoansSalary AdvanceEquiloan check off loans

Agricultural Loans Backbone of EconomyFarm Input Crop AdvanceCommercial Farm Loans

Supporting Commerce, Trade and IndustryMicro Loans (Biashara Imara)Overdraft Working CapitalBusiness Development Loans

Growing Together In Trust!

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Value Proposition ForLoan Products

- Available to all account holders

- Tailored to the ind ividual needs

- As low as Kshs.500-1,000/- ( Euros 5-10)

- Appraisal ability to pay based vis-a-vis collateral based

- Flexible Securities/collateral

- Prompt d isbursement

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Letters of credit (LOC) Documentary CollectionsBills & Invoice DiscountingSWIFT RemittancesStructured Trade FinanceBureau de Change. (Cash Notes)Inward/Outward telegraphic transfers.Call and Fixed Deposits (Short/Long term.)Call and Fixed DepositsTreasury Bills/Bonds.Corporate Bonds.

Trade Finance/ Treasury Products

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Banker s ChequesCheque clearingLocal/Intl Telex transfer & pmts Western Union Money TransferMoneyline Money Transfer-UK Bid Bonds Performance BondsBank GuaranteesRemittance ProcessingLetters of Credit/Trade FinanceForex

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Growth Number of Deposit Clients

12 18 26 32 41 48 61 105 155252

1,602

556

420

1,014

050

100150200250300350400450500550600650700750800850900950

10001050110011501200125013001350140014501500155016001650

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Sep'07

(In

th

ou

san

ds

of

acc

ou

nts

)

Home of 41% of all bank account holders in Kenya

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Growth in Volume Customer Deposits

26,640

16,336

9,047

115 123 175 286 425 608 978 1,5002,191 3,368

5,081

94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 2006 Sep'07

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94,566

67,000

41,00018000

9,0332,7531,460954695347298

165,213

252,147

332,290

0

50000

100000

150000

200000

250000

300000

350000

400000

94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 2006 Sep'07

Home to 42% of all loan accounts in Kenya

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16,971

11,428

5,885

35 97 122 195 230 327 450 860 1,1891,734

3,099

94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 2006 Sep'07

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KES 5471,531

1,103

501

21814211155

2518111297 35

94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 2006 Sep '07

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KES 54734,495

20,024

11,456

3,9242,5761,8811,260709487

6,707

98 99 2000 2001 2002 2003 2004 2005 2006 Sep'07

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KES 5473,245

2,201

1,594

1,271

478324227

6647232313

-19

195

94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 2006 Sep'07

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2,301

1,395

884

585

210354

117 1651099265574835

94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 2006 Sep'07

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Exponential Growth

187,678Kshs 16.9 BillionKshs 9 MillionLoan book

8,422230127Number of staff

1,525654Number of branches

High2000ATMs

5521,602,0002,892Number of customers

120,809Kshs.26.6 BillionKshs 22 MillionCustomer Deposits

21,329Kshs 1.5 Billion (up to Sept)

Loss Kshs (7 Million

Annual Profit

130,142323,000248Number of borrowers

GROWTH%AGE

Sept 20071994

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Village Mobile BankingTaking banking services to the people

Village mobile banks (rural focus

Application Of Technology For Outreach

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Automated Teller Machines

Alternate Delivery Channels

Kimathi Auto Branch 24 hrs 10 ATM s

The bank has deployed 200 ATMs to be able to offer financial services at a reduced cost and also decongest the branches.

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Eazzy Banking/Mobile SMS BankingThe mobile phone as a delivery channel is a revolutionary way ofbranchless banking making basic financial services more accessible to millions of Kenyans across the country:

Airtime top-upBalance enquiryTransfers to nominated accounts (within Equity Bank)Bill paymentsInternet BankingSupermarkets Cash back servicesPoints of saleRetail Outlets agency networkVISA, Credit & Debit CardsEquity MoneyLink Money transfer

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(insert the SMS banking poster)

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(insert the SMS banking poster)

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I ntegration with the community

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Free mass public financial literacy education training & technical assistance

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From Left: Peterson Muthathai-Chairman Principals Association, Ibrahim Hussein-Chairman TSC, James Mwangi-Equity CEO, Prof Saitoti- Minister for Education, Peter Munga-Equity Chairman, Francis Ng'ang'a-KNUT Secretary General, Gabriel Lengoibon-TSC Secretary, Abdi Mohammed-PDE Nairobi, Peter Macharia-PDE Rift Valley, with the beneficiaries-2006.

Pre-university employment program

Social Bonding

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Affirmation of Concept

Ratings Recognitions

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EUROMONEY 2007 Awards for Excellence

The Best Bank award for Excellence from Euromoney with its unrivalled track record is the most prestigious accolade a financial institution can

receive in the world.

Equity Bank Voted Best Kenyan Bank 2007

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Equity Ranked Best Microfinance institution in

Africa & 3rd Best in the world

Benchmarked analysis conducted amongst leading microfinance institutions globally by Microcapital

The candid voice for microfinance investment

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2007 Global Vision Award on Microfinance

Initiators of the Concepts of the Future that will shape

the World Economy

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Compliance & Contribution to the EconomyEquity among largest top taxpayers

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Strong Deposit growth

Good Profitability

High Quality Management & Strategic Management

Equity s performance for the YTD has been positive. The YTD performance is due to sustained growth in banks operating base, leading to higher volumes, and a continued shift to higher yielding assets. The bank has also realised from economies of scale from its investment in delivery channels.

Short-term: ALong-term: A+

Contributing Factors

Rating

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Growing Customer base

Solid CapitalContributing Factors

Good Management

Equity maintained its ranking as the 3rd

Best Bank in the country for the second year in a row 2005-6

3rd Best Bank Overall-2005 & 6Best Retail Bank in KenyaBest Kenyan BankFastest Growing Bank

Rating

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Equity Bank winner of Corporate Planning Management Award COYA 2006

COYA a celebration of management excellence

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That when years turn our vision dim and gray, we shall still be seeing beauty in the tired wrinkles of our faces and shall take comfort out of the fact and knowledge that when we were given the opportunity we did all we could to empower our people to exploit opportunities and realise their full potential on the road to economic prosperity.

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Email: info@equitybank.co.ke

Web site: www.equitybank.co.ke

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