An ongoing rebranding excise at Jamii Bora Bank branch in Nairobi CBD following the lender’s acquisition by Co-op Bank. PHOTO | COURTESY In the quarter closing on March 31, Kingdom booked a Ksh.126.7 million net profit climbing from a Ksh.200.9 million net loss in the full year ending in December 2020- the first disclosed annual results since 2017.
Co-op paid Ksh.1 billion, infused in the lender as new capital, and in exchange received 224.2 million new shares representing a 90 per cent stake in the bank.
The rise of Jamii Bora from the ashes mirrors the results of previous mergers and acquisitions which have effectively served to strengthen the local banking scene.
In just under eight months since acquiring Jamii Bora Bank (JBB), the lender now renamed Kingdom Bank has moved back into the profitable zone in the quarter ending March 2021.
For a lender barely disclosing its financial health in years prior to the acquisition in August 2020, the bounce back marks an incredible fete for both Kingdom & Co-operative banks.
In the quarter closing on March 31, Kingdom booked a Ksh.126.7 million net profit climbing from a Ksh.200.9 million net loss in the full year ending in December 2020- the first disclosed annual results since 2017.
In late August, Jamii Bora Bank became Kingdom Bank after both shareholder and regulatory approvals.
Co-op paid Ksh.1 billion, infused in the lender as new capital, and in exchange received 224.2 million new shares representing a 90 per cent stake in the bank.
Subsequently, Co-operative Bank appointed a new board for its latest acquisition as it sought to stabilize the operations of the lender in the near term.
Kingdom bank’s first quarter balance sheet reflects the results of the lender’s new stewardship.
For instance, Kingdom booked Ksh.920.4 million in total operating income with net interest income standing at Ksh.895.1 million.This to beat its non-interest based expenses which stood at Ksh.793.6 million in the period, setting up the lender for a return into profitability.The rise of Jamii Bora from the ashes mirrors the results of previous mergers and acquisitions which have effectively served to strengthen the local banking scene.One year on after its acquisition by KCB Group, the National Bank of Kenya (NBK) rallied back into profitability, posting earnings of Ksh.177.7 million in 2020, reversing a Ksh.337 million loss in 2019.The rise of the now KCB subsidiary was anchored on a rebound in balance sheet growth and revenue generation.While […]
