KCB Group Plc has completed the acquisition of Trust Merchant Bank SA (TMB). 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 the COMESA Competition Commission, setting the stage for the Group to acquire 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.
“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 Mr 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,” said Mr Russo.
In the nine months ending September 2022, KCB Group Plc’s net profit rose 21.4% to Ksh30.6 billion on the back of sustained growth from both Net interest and non-funded income lines. This was a jump from Ksh25.2 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.