KCB completes acquisition of DRC’s Trust Merchant Bank

Business

KCB Group Plc has announced the completion of Trust Merchant Bank SA (TMB) after receiving all the regulatory approvals.

The Group now owns 85% stake in the Democratic Republic of Congo (DRC) based lender.

KCB Group obtained the regulatory green light in Kenya, the Democratic Republic of Congo and COMESA Competition Commission, setting the stage for the Group to acquire the 85% of the shares in TMB.

KCB Group CEO Paul Russo said the transaction will positively contribute towards the bank's increased scale of operations by establishing its presence in new markets and providing income diversification from a geographical perspective.

Further, the transaction will enable KCB to accelerate its market presence in the DRC in the near term by leveraging on TMB’s 18-year operational history, vast branch network, valuable local customer relationships and deep knowledge of local business dynamics.

In addition to the core banking business of TMB, the existence of an insurance subsidiary Afrissur SA will provide opportunity for KCB to diversify its offerings in DRC’s insurance sector.

This transaction will provide KCB a strategic foundation to capitalize on cross-border trade from the Indian to

the Atlantic Oceans.

“We have found a partner with a proven and trusted history of serving and supporting customers, businesses, and communities. Combining our common legacies and our complementary footprints will strengthen our ability to serve our communities and regional customers and provide solutions that make a difference in people's lives. The acquisition extends our reach by providing customers access to a larger banking network and an expanded array of services. Our shared banking philosophies will provide significant long-term value for our shareholders,

employees, and customers. I am incredibly excited about this opportunity and look

forward to welcoming new customers and team members to the KCB family,” said KCB Group CEO Paul Russo.

KCB Group will operate TMB with its current brand and will enhance the current business operating model with the capabilities KCB has built over time in systems and processes.

“We see significant business opportunities from this acquisition arising from delivering innovative financial services to customers, growing linkages between customers in our region and realizing operational efficiencies which will deliver tangible value to key stakeholders," Russo added.

In the nine months ending September 2022, KCB Group Plc's net profit rose 21.4% to KShs.30.6 billion on the back of sustained growth from both Net interest and non-funded income lines. This was a jump from KShs.25.2 billion reported for the same period last year.

TMB is one of DRC's largest banks, with US$1.7 billion in total assets and a strong offering in retail, SME, corporate and digital banking channels.

TMB’s bank branch network of 109 branches is supported by a substantial agency banking network, alongside a representative office in Belgium.

In the DRC, the bank commands an 11 percent market share as measured by total assets and is home to more than one in five banks accounts in the country.

Reader's Comments

LATEST STORIES

Tororo: Stalled projects ripping off the taxpayer
top-stories By David Ochieng
9 hours ago
Tororo: Stalled projects ripping off the taxpayer
Kalungu boss shakes up executive, says no room for negligence
news By Zainab Namusaazi Ssengendo
12 hours ago
Kalungu boss shakes up executive, says no room for negligence
Rwahi, where onions tickle the bank balance
top-stories By Alex Mugasha
13 hours ago
Rwahi, where onions tickle the bank balance