KCB Group Plc has announced the completion of Trust Merchant Bank (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 KCB’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 the 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” said Mr Russo.
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.