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KCB Group increases shares in Banque Populaire du Rwanda

By IGIHE
On 5 June 2023 at 07:40

KCB Group has raised its stake in its Rwandan subsidiary to 87 percent by investing an additional Sh2.7 billion, Business Daily Africa has reported.

The Kenyan banking multinational, listed on the Nairobi Securities Exchange, previously held a 77 percent stake in BPR Bank Rwanda Plc, which was formed from the merger of KCB Bank Rwanda and Banque Populaire du Rwanda (BPR).

The latest annual report reveals that KCB’s investment in the Rwandan subsidiary increased to Sh7.5 billion in the year ending December 2022, up from Sh4.8 billion the previous year.

This move indicates KCB’s intention to consolidate its ownership of the bank by buying out minority shareholders, who were former owners of BPR.

KCB had previously owned 100 percent of KCB Bank Rwanda. BPR Bank Rwanda now stands as the second-largest lender in Rwanda and the most profitable subsidiary in KCB’s regional market.

The subsidiary reported a significant 84.6 percent rise in net profit to Sh2.02 billion in the year ending December 2022, attributed to increased interest income.

Net interest income grew from Sh3.6 billion to Sh6.8 billion, reflecting the impact of expanded lending. The loan book also saw growth, reaching Sh54.9 billion from Sh40.4 billion.

KCB Group has increased shares in Banque Populaire du Rwanda.

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