Ecobank Transnational Incorporated : FY 2021 Earnings Investor Presentation

Ecobank Group

FY 2021 Earnings Investor Presentation

31 March 2022

Prevailing Economic Realities

Real GDP

• • IMF cuts its global growth forecast

• • Global economic recovery worsens further due to the

  Russia-Ukraine conflict

Commodity Prices

Index, 100=2019

• • Crude oil prices soar to historic highs on Ukraine crises and supply-chain bottlenecks

  Metals and minerals

• • Prices of other commodities from grain to vegetable oils rising

Energy

Agriculture

Exchange Rates

• • African currencies weaken against USD

• • Has implications for international trade in Africa and Payments

$:NGN $:XOF

$:CEDI

533.50 5.88

6.15 7.56

Inflation2

• • Inflationary conditions exacerbated by global supply shocks and Russia-Ukraine conflict

• • US Fed and Western Central Banks signal rate hiking cycle

• • Some Central Banks in Africa started to increase rates

Covid-19 Vaccination Rates

Partially vaccinatedFully vaccinated

• • Low vaccination rates in Africa (c.19% of population has received at least one dose of a vaccine)

  78%

  77%

  77%

  68%

• • But death rates are low

  55% 19%

• • Most covid-19 restrictions have been eased

US & Canada Latin AmericaAsia PacificEuropeMiddle EastAfrica

• 1. Commodity price indices for 2022 reflects an annual project from the World Bank. FX exchange rates for NGN, XOF, and CEDI for 2022 are as of 30 Mar 2022.

• 2. 2022 inflation is as of Feb 2022

  Sources: IMF World Economic Outlook, Jan. 2022 :IMF to Cut Growth Forecast as Recession Looms for Some Nations-Bloomberg, :US Dollar to Ghanaian Cedi Exchange Rate Chart | Xe Sources:Coronavirus (COVID-19) Vaccinations - Our World in Data : World Bank Global Economic Prospects Report, Jan 2022

2021 Financial Highlights

• • Record profit before tax of $478m, increased $140m1YoY

  Income statement

• • Record profit attributable to ETI shareholders of $262m and diluted EPS of 1.06 US cents

• • Net revenues of $1.8bn, up 5% YoY (up 6% in Ccy2)

• • Expenses of $1.0bn, down 2%, YoY (up 2% in Ccy). Cost-to-income ratio of 58.9%, best in a decade benefitting from our 'manufacture centrally, distribute locally' strategy

• • Customer deposits increased $1.4bn, or 8% YoY, to $19.7bn. An increase of 15% Ccy.

  Balance sheet

• • Customer loans grew $336m, or 4%, YoY, to $9.6bn. An increase of 11% in Ccy.

• • Reset credit portfolio: improvements in CoR (1.7%), NPL ratio (6.2%) and Coverage (102%)

• • Total regulatory capital of $2.1bn and Total CAR of 14.8% boosted by strong profits, and recent Tier 2 Sustainability Note and AT1 issuances.

• • Proposed dividend of $40m or 0.16 US cents ($0.0016) per ordinary share

  Shareholder

• • Return on capital generation (ROE, ROTE) are above the cost of equity (COE)

  Value

• • Tangible book value per share (TBVPS) increased 4% YoY to 5.70 US cents

• 1. Year-on-year increase of $140m in profit before tax excludes the net impact of the $164m goodwill charge of 2020. The year-on-year growth in profit before tax, after the goodwill charge is $304m.

• 2. Constant currency reporting eliminates fluctuations in the functional currencies of our operating subsidiaries against the US dollar, our reporting currency. It is a clearer and meaningful indicator of the firm's underlying performance, assuming the US dollar exchange rate to the various functional currencies did not change within the period.

The Focus on Execution is Delivering Desired Results: Record ROTE of 19.0%

Revenues ($m)

Expenses ($m)

PPOP1($m)

PBT excl. goodwill($m)

• • Revenues have staged a comeback on an intense focus on Payments, Trade, and FICC. Modest rate increase in latter part of 2021 and strong loan growth in the 4Q21 have been supportive.

• • The firm's cost base has been reset through stringent cost management, operational discipline, and overall strategy of 'manufacture centrally and distribute locally'

• • Positive operating leverage has kept pre-provision, pre-tax operating profit (PPOP) rising and stable since 2019

• • PBT adjusted for goodwill charges have kept pace as costs have declined and the cost of risk has significantly improved on significant progress in addressing asset quality issues

Net interest margin

Cost-to-income ratio

Cost-of-risk

Return on tangible equity2

• (1) PPOP: Pre-provision, pre-tax operating profit

• (2) 2020 ROTE of 13.3% has been adjusted to exclude the $164m goodwill charge