KCB Group Completes Acquisition Of DRC-Based Trust Merchant Bank

 KCB Group Plc has completed the acquisition of Trust Merchant Bank SA (TMB) now controlling an 85 per cent stake in the DRC-based lender.

This is after the lender obtained the regulatory green light in Kenya, the Democratic Republic of Congo and the COMESA Competition Commission.

The acquisition will give KCB Group access to DRC’s largest banks with an asset base of Sh 209 Billion and a strong offering in Retail, SME, Corporate and Digital banking channels.

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 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 an 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.

“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,” said 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.

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 bank accounts in the country.