KCB Group is exploring the opportunity of acquiring a bank in Democratic Republic of Congo (DRC).
The Group plans to implement the expansion into the central African country in the next two years
KCB Group is exploring the opportunity of acquiring a bank in the Democratic Republic of Congo (DRC). The Group plans to implement the expansion into the central African country in the next two years after it wraps up Sh4.37 billion ($40 million) deals in Tanzania and Rwanda. Currently, KCB has a presence in 6 African countries. DRC. with a population of over 84 million, will mark the seventh market outside Kenya for KCB.
Group CEO Joshua Oigara revealed that the lender is searching for new opportunities and considers DRC as a potential destination for ambitious lenders looking for growth in the continent.
KCB entry into DRC will heat up competition with its rival, Equity Group, which in August purchased a 66.5 percent stake in Banque Commerciale Du Congo (BCDC) through a Sh10.3 billion cash transaction. East Africa’s economic growth and trade integration has made it an attractive business destination for Kenyan commercial banks.
Mr Oigara added that the group plans to increase the share of KCB subsidiaries in total income to at least 25 percent against the current below 10 percent in the next two years. In 2019, KCB net profits from its subsidiaries grew by 9.8 percent from Sh1.63 billion to Sh1.79 billion equivalents to 7.3 percent of the total Sh24.5 billion net profit earned by the group.
Out of its subsidiaries in the region, Rwanda and Tanzania emerged as the most profitable of KCB subsidiaries, with Sh763 million and Sh683 million net profit respectively last year. South Sudan recorded Sh560 net profit while Burundi posted Sh270 million net profit. However, Uganda posted a loss of Sh487 million.
