KCB Group Plc Completes Acquisition of DRC based Trust Merchant Bank (TMB)


KCB Group Plc Completes Acquisition of DRC based Trust Merchant Bank (TMB)

KCB Group Plc has announced the completion of Trust Merchant Bank SA (TMB)  after receiving all the regulatory approvals. The Group now owns 85%

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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 PLC CEO Paul Russo (L), KCB Group Chairman Andrew Wambari Kairu (C), and Oliver Meisenberg (R), the Chief Executive Officer of Trust Merchant Bank (TMB) pose for a photo during a ceremony where KCB signed a definitive agreement to acquire a majority stake at TMB. TMB is a commercial bank based in the Democratic Republic of Congo (DRC)

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 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.

Through KCB’s expertise and experience, this presents a good opportunity for

KCB to provide to the existing customers of TMB and new customers to be

acquired as a result of the Transaction, enhanced banking products that is

expected to grow and embed KCB’s brand in the DRC market and beyond.

“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. This will build on the strengths of TMB and enable TMB to deliver

significant incremental value by being part of KCB.

“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 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.

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