NAIROBI, KENYA: KCB Group Plc (KCB) and Atlas Mara (ATMA) have signed a definitive agreement which will see the bank increase its footprint within the region.
This is through the acquisition of a 62.06 per cent stake in Banque Populaire du Rwanda Plc (BPR) and a 100 per cent stake in African Banking Corporation Tanzania Limited (BancABC) from ATMA in Rwanda and Tanzania, respectively.
The successful completion of the transaction is subject to obtaining shareholder approval and obtaining regulatory approvals in the respective countries.
KCB Group CEO and MD Joshua Oigara said the transaction was part of KCB’s ongoing strategy to explore opportunities for new growth while investing in and maximizing returns from the Group’s existing businesses.
The acquisition, he added, will buttress the Group’s leadership position and give it a stronger edge to play a bigger role in driving the financial inclusion agenda in the East African region while building a robust and financially sustainable organisation.
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“The transaction fits within the Group’s expansion strategy and will see us increase our market share and distribution network across Rwanda and Tanzania and improve our operating leverage by enabling us to deliver our existing product offerings to a wider base of customers while positioning the bank for sustainable growth in the long-term,” said Mr. Oigara.
“Once the transaction is completed, the Group’s Rwanda and Tanzania businesses are expected to have stronger financial credentials to support business growth in the post covid-19 macroeconomic recovery” he added.
KCB Group, which has a presence in six countries and a representative office in Ethiopia, has been keen to tap into new growth opportunities while reinforcing existing market capabilities.
“Our growth strategy is premised on both organic and inorganic plans and we shall continue to seek opportunities that increase our shareholder’s value,” said Mr. Oigara.
The group's after-tax profits for the nine months ending September 2020 stood at Shs.10.9 billion compared to Sh19.1 billion the year before. The Group’s balance sheet expanded 27 per cent to Sh972 billion, funded by customer deposits growth and acquisition of NBK. Net loans and advances grew 19 per cent to close the period at Sh577.5 billion while customer deposits were up 32 per cent to Sh772.7 billion.