KCB restructures investment units after buyout of NBK

The division of responsibilities between KCB Capital and NatBank Trustee and Investment Services Limited has been completed by KCB Group.

Since then, KCB Capital has changed its name to KCB Investment Bank. As a result, the two subsidiaries that formerly provided comparable services have taken on different roles.

After the spinoff, KCB Investment Bank will, for example, provide brokerage, advisory, and consultancy services to the group’s clients and other customers.

Natbank’s operations will be focused on fund management, corporate trustee services, pension plans, and unit trusts as it transitions to KCB Asset Management.

“The two entities give us two different capabilities with products that can be white labelled. Wealth management is at the core of what we want to do,” KCB’s chief executive Paul Russ said.

“The units will also support the network enabling our customers to first and foremost purchase instruments such as infrastructure bonds and unit trusts through our branches.”

By asset size, KCB Investment Bank is the larger of the two units, with a Sh660.6 million asset base for the fiscal year ending in December 2022.

The unit was profitable during the period, earning a net profit of Sh40.3 million.