KCB Group Plc completes acquisition of DRC based Trust Merchant Bank

On 15 December 2022 at 02:35

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 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.

About KCB Group PLC

KCB Group Plc is East Africa’s largest commercial Bank that was established in 1896.

The Group is headquartered in Kenya, with the country serving as the lead market with two banking subsidiaries namely KCB Bank Kenya and National Bank of Kenya.

Over the years, the Bank has grown and spread its wings into Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia (Rep).

Today KCB has the largest branch network in the region with 498 branches, 1,172 ATMs and over 29,810 merchants and agents offering banking services on a 24/7 basis in East Africa. Additionally, KCB Group owns KCB Bancassurance Intermediary Limited, KCB Capital Limited, KCB Foundation and Kencom House Limited as non-banking businesses.

This is complemented by mobile banking and internet banking services with 24-hour contact center services for our customers to get in touch with the Bank. KCB has a vast network of correspondent relationships totaling over 200 banks across the globe, and our customers are assured of a seamless facilitation of their international trade requirements wherever they are.