{"id":18205,"date":"2020-11-27T20:31:48","date_gmt":"2020-11-27T20:31:48","guid":{"rendered":"https:\/\/www.africa-press.com\/kenya\/?p=18205"},"modified":"2020-11-27T20:31:48","modified_gmt":"2020-11-27T20:31:48","slug":"kcb-to-acquire-two-lenders-at-sh4-4b","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b","title":{"rendered":"KCB to acquire two lenders at Sh4.4b"},"content":{"rendered":"<p><strong>Author: DOMINIC OMONDI\u00a0<\/strong><br \/>\n<strong>AfricaPress-Kenya:<\/strong> KCB Bank has moved to snap up banks that were snubbed by its rival Equity as it expands its network in the region.<\/p>\n<p>The lender says it has signed an agreement with London-listed Atlas Mara to acquire the latter\u2019s banks in Rwanda and Tanzania at Sh4.4 billion.<\/p>\n<p>KCB will pay Sh3.5 billion for 62 per cent stake in Banque Populaire du Rwanda (BPR) and Sh872 million for the entire stake in African Banking Corporation Tanzania.<\/p>\n<p>Joshua Oigara, the KCB Group chief executive said the transaction was part of the listed lender\u2019s growth strategy, noting that the transactions if successful will cement the bank\u2019s leadership position in the region.<\/p>\n<p>\u201cThe transaction fits within the group\u2019s expansion strategy and will see us increase our market share and distribution network across Rwanda and Tanzania and improve our operating leverage by enabling us to deliver our existing product offerings to a wider base of customers,\u201d he said.<\/p>\n<p>He added that the acquisition will see subsidiaries contribute 25 per cent to KCB\u2019s growth from the current 10 per cent.<\/p>\n<p>The bank will pay cash consideration for the BPR shares based on the net asset value at completion of the transaction and using a price-to-book multiple of 1.09 times.<\/p>\n<p>\u201cOnce the transaction is completed, the group\u2019s Rwanda and Tanzania businesses are expected to have stronger financial credentials to support business growth in the post-Covid-19 macroeconomic recovery,\u201d Oigara said.<\/p>\n<p>KCB recently acquired National Bank of Kenya as consolidation in the banking sector picks up pace.<\/p>\n<p>In August, Equity Bank, the second-largest lender in Kenya, shelved plans to acquire the same businesses, citing challenges occasioned by the Covid-19 pandemic<\/p>\n<p>KCB expects to complete the acquisition in 12 months.<\/p>\n<p>KCB recorded a 43 per cent drop in net profit in the first nine months of this year, posting Sh10.9 billion after it set aside a big chunk of cash for possible defaults.<\/p>\n<p>The lender posted Sh19.2 billion profit in September last year.<\/p>\n<p>Loan loss provision this year increased more than three times to Sh20 billion in a period that saw lenders restructure loans running into billions of shillings.<\/p>\n<p>The bank cited a challenging year for business, which caused it to forego some earnings.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Author: DOMINIC OMONDI\u00a0 AfricaPress-Kenya: KCB Bank has moved to snap up banks that were snubbed by its rival Equity as it expands its network in the region. The lender says it has signed an agreement with London-listed Atlas Mara to acquire the latter\u2019s banks in Rwanda and Tanzania at Sh4.4 billion. KCB will pay Sh3.5 [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":18206,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[1228,2349,1230],"class_list":["post-18205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-equity","tag-equity-bank","tag-kcb"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>KCB to acquire two lenders at Sh4.4b - kenya<\/title>\n<meta name=\"description\" content=\"KCB Bank has moved to snap up banks that were snubbed by its rival Equity as it expands its network in the region.The lender says it\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"KCB to acquire two lenders at Sh4.4b\" \/>\n<meta property=\"og:description\" content=\"KCB Bank has moved to snap up banks that were snubbed by its rival Equity as it expands its network in the region.The lender says it\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-27T20:31:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/11\/kcb_to_acquire_two_l5fbff84866a95.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"KCB to acquire two lenders at Sh4.4b\",\"datePublished\":\"2020-11-27T20:31:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b\"},\"wordCount\":376,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/11\/kcb_to_acquire_two_l5fbff84866a95.jpg\",\"keywords\":[\"Equity\",\"Equity Bank\",\"KCB\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/kcb-to-acquire-two-lenders-at-sh4-4b\",\"name\":\"KCB to acquire two lenders at Sh4.4b - 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