kCB Group has announced the acquisition of Trust Merchant Bank (TMB) based in the Democratic Republic of Congo (DRC). The bank has received the required regulatory approvals to go ahead with the acquisition. The regulatory approvals KCB has received are from Kenya, the Democratic Republic of Congo and the COMESA Competition Commission.
KCB has also revealed that it now owns 85% in the DRC based lender. TMB is one of DRC’s largest banks, with over 109 branches and US$1.7 billion in total assets and a strong offering in Retail, SME, Corporate and Digital banking channels.
KCB says that the acquisition will help it with its plan to expand to more markets. This helps it diversify its presence to new markets across the region. In DRC, TMB has had an 18-year operational history with a vast branch network. KCB will leverage this as well as the insurance subsidiary, Afrissur SA, 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 also said that this acquisition will provide new and existing TMB customers enhanced banking products that are 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 KCB Group CEO Paul Russo.
TMB Brand to stick around
Even as this acquisition happens, the TMB brand will be maintained and will enhance the current business operating model with the capabilities KCB has built over time in systems and processes. In the end, TMB should deliver significant incremental value as 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.
Read: I&M Bank increases support to MSMEs with its enhanced Digital Banking solution – “On the Go”
