- KCB says it will open twelve 12 new branches in Kenya and Tanzania, to bring its total number of branches to more than 500
- KCB Group Managing Director Paul Russo told Business Daily that the increase in its branches would assist them to reach more customers
- The new branches are expected to complement KCB Group’s regional footprint with an asset base of KSh 1.5 Trillion (US$12.6 billion)
Regional lender Kenya Commercial Bank (KCB) says it will open twelve 12 new branches in Kenya and Tanzania, to bring its total number of branches to more than 500.
KCB Group Managing Director Paul Russo told Business Daily that the increase in its branches would assist them to reach more customers.
Russo said they had already received approvals to open 6 of the twelve branches. The 6 are located in Kenya.
KCB’s plan of opening new branches is part of the Group’s strategic focus of scaling its regional presence.
The new branches are expected to complement KCB Group’s regional footprint with an asset base of KSh 1.5 Trillion (US$12.6 billion).
KCB acquires DRC bank
The plans come a few months after KCB announced the completion of the acquisition of Trust Merchant Bank SA (TMB) after receiving all the regulatory approvals.
In December 2022, KCB acquired the lender and now owns 85% stake in the Democratic Republic of Congo (DRC) based lender.
Kenya: KCB to loan KSh 250 billion to women entreprenuers
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.
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 would 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.
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 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 KSh 25.2 billion reported for the same period in 2021.
KCB acquires Rwandan bank
In May last year, KCB launched a new banking subsidiary in Rwanda, BPR Bank Rwanda PLC following the amalgamation of KCB Bank Rwanda and Banque Populaire du Rwanda (BPR).
The acquisition followed regulatory approval by the National Bank of Rwanda (BNR) earlier in the month to merge the two entities, allowing them to operate as a single entity named BPR Bank Plc, with KCB Group as the majority shareholder.
The combined bank became the second largest bank in the Rwanda banking industry, giving KCB Group a stronger edge in deepening the ongoing group strategy to scale regional presence.
KCB records rise in net profit
In the half-year ending June 2022, KCB group recorded an increase of 28.4% in net profit from KSh 15.3 billion to KSh 19.6 billion. The growth was driven by improvement in both the funded and non-funded income streams. Additionally, the international subsidiaries increased their overall contribution to the Group’s performance.
Kenya: KCB six months net profit rises by 28.4% to reach KSh 19.6 billion
Total operating income increased by 16.8% mainly driven by a 29.9% growth in Non-Funded Income. Group businesses increased their profit contribution to 16.8% driven by new business growth and the impact of BPR Bank.
