Kenyan BCB acquires Trust Merchant Bank of Congo

The transaction should, according to the joint press release of the two shareholders, be completed by the end of the third quarter of the current financial year, subject to validation by the shareholders, the supervisory authorities and other authorizations.

The acquisition of 85% of the shares will allow traditional shareholders to retain the remaining 15% for another two years. They will eventually return to the Kenyan group, which will then control all of the bank’s capital.

“KCB will pay out in cash for the shares based on TMB’s net asset value at the close of the intended transaction, using a multiplier of 1.49,” the statement read. With a portfolio of $ 1.5 billion in assets, TMB develops a range of products and services that cover retail banking, SMEs, large enterprises and digital channels.

In its expansion, the bank has more than 110 branches and branches throughout the Democratic Republic of the Congo, to which must be added a network of banking agents.

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“We are excited about the opportunities offered by KCB in this transaction and are proud to bring our deep Congo knowledge and experience to the KCB Group. We believe that with our knowledge of the local market, supported by the size and experience of the KCB Group, we should be able to increase our market share and shareholder returns, combine our synergies, in order to take advantage of opportunities for business, “said Robert Levy, Chairman of the Board of Directors of TMB.

For the KCB group, this acquisition makes it possible to strengthen its presence at the regional level. The acquisition of these shares will complement the KCB Group’s regional footprint with a capital base of 1.5 trillion Kenyan shillings, or US $ 12.6 billion. This should consolidate the Group’s retail and corporate banking networks.

“This is part of our ongoing strategy to exploit new growth opportunities by investing and maximizing returns from the Group’s existing businesses. This gives us ample room to accelerate our growth ambitions to deliver value to our shareholders, support the drive for wider financial inclusion and social and economic transformation in Africa and beyond. We are delighted to be able to play a catalytic role in the economic development of the Democratic Republic of Congo and East Africa, “said Andrew Wambari Kairo, President of the KCB Group.

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In the first half of 2022, the performance of the KCB group, owner of the National Bank of Kenya, panicked the branches. The profits of the group thus jumped from 6.4 billion shillings to 9.9 billion shillings, or 82.170 million euros (more than 53.903 billion CFA francs).

Objectives achieved by optimizing total revenue growth and reducing loan loss provisions. “Revenues increased by 26% reaching Kenyan shillings 29 billion, or 240.7 million euros (157,899,200,000 CFA francs), based on an increase in interest income, an increase in income from off-balance sheet commitments, commissions for services and a 21.1% increase in earnings on other activities “, reads the statement.

With this acquisition, the customers of TMB, which has the largest customer base of any bank operating in the Democratic Republic of the Congo, as well as the largest branch network, will benefit from the best digital solutions, banking solutions transactions, commercial finance experience and access to regional business opportunities offered by the KCB Group.

The bank, which owns a life insurance company, Afrissur SA, one of the only three life insurance companies in the DRC, also a pioneer in the introduction of mobile banking services and, more recently, leasing, will give the KCB Group l access to the second largest country in Africa, with an estimated population of over 93 million.

The KCB Group has the largest branch network in East Africa with 492 branches, 1,178 ATMs and over 25,496 merchants and agents offering 24/7 banking services in East Africa.

The group also owns KCB Bancassurance Intermediary Limited, KCB Capital Limited, KCB Foundation and Kencom House Limited, two non-bank establishments.

Simone Pierre Mbarga

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