KCB Group has entered into a definitive agreement to acquire an 85 per cent stake in Trust Merchant Bank (TMB) in the Democratic Republic of Congo (DRC).
KCB Group expects to close the transaction by the end of the third quarter of 2022 after receiving regulatory approval.
“The transaction is expected to close by the end of the third quarter of 2022, subject to regulatory, shareholders and other approvals,” KCB Group chairman Andrew Wambari Kairu said in a statement.
“This will see KCB acquire 85 per cent of the shares in TMB while the existing shareholders will continue to hold the balance for a period of not less than two years after which, KCB will acquire their shares.”
Aligned to the Group’s strategic focus of scaling its regional presence, this acquisition will complement KCB Group’s regional footprint with an asset base of KShs. 1.5 Trillion (USD 12.6 billion) and is expected to strengthen the Group’s Retail and Corporate banking franchises. pic.twitter.com/3602PMCb5O
— KCB Group (@KCBGroup) August 2, 2022
TMB, a public company limited by shares, is one of DRC’s largest banks, with US$1.5 billion in total assets. It has over 110 branches and numerous agency banking outlets across the DRC. TMB has a strong offering in retail, SME, corporate and digital banking channels.
In the three months ending March 2022, KCB Group PLC’s profit after tax surged 54.6% to KShs. 9.9 billion. This rise from KShs. 6.4 billion in a similar period was boosted by total income growth and loan loss provision reduction.
Revenues increased by 26.0% to KShs. 29.0 billion because of an increase in interest income, an increase in non-funded income from lending activities and service fees, and a 21.1% rise in earning assets.
KCB operates in Rwanda, Burundi, Tanzania, Uganda and South Sudan.
In 2020, Equity Group purchased a 66.5 per cent stake in Banque Commerciale Du Congo (BCDC). In 2021, it increased its stake in Equity Bank Congo (EBC) by another 7.7 per cent, taking its total holding to 94.3 per cent.
