KCB Group CEO and MD Joshua Oigara at a past investor briefing/ KCB Group shareholders have approved the proposal to acquire up to 100 per cent of the issued ordinary shares in Banque Populaire Du Rwanda (BPR).
The lender has also received a green light to fully acquire African Banking Corporation Tanzania Limited (BancABC).
The twin acquisitions in Rwanda and Tanzania are part of KCB Group’s ongoing strategy to achieve regional relevance , management says, and will increase the brand’s footprint while reinforcing existing market capabilities.
The transactions follow the offer made by KCB Group late last year and having now received shareholder approval, they are subject to receipt of final regulatory approval.
“These acquisitions will reinforce the Group’s leadership position and give us a stronger edge to play a bigger role in driving the financial inclusion agenda in the East African region, while building a robust and financially sustainable and profitable organisation for the shareholders,” Group Chairman Andrew Kairu said in a statement.
During the 50th Annual General Meeting held on Thursday, via electronic means, the shareholders also approved a first and final dividend of Sh1.00 per share.
The dividend worth Sh3.2 billion shall be paid on or before June 26, 2021, net of withholding tax to the shareholders who were on the register of members at the close of business on April 26, 2021.
The Nairobi Securities Exchange listed lender shook off the effects of the Covid-19 pandemic to post a net profit of Sh6.4 billion in the first quarter of 2021, ending March.
This is a two per cent growth in profitability from Sh6.3 billion a year earlier, on the back of increased net interest income and cost-saving initiatives.
“The pandemic tested our resilience, but the Group maintained the balance sheet growth momentum it has built for over a decade. This growth was recorded across all the businesses and translated to all the subsidiaries returning a profit for the year,” said KCB Group CEO and MD Joshua Oigara.
As the economy continues to reopen, the lender is keen to strengthen its balance sheet, Oigara said, which will give it room to support its customers and stakeholders through the pandemic while ring-fencing the business for the post-pandemic growth.During the quarter, the cost of risk went down slightly although loan provision remained at Sh2.9 billion due to an increase in loan balances.The stock of Non-performing loans (NPLs) rose to Sh98 billion up from Sh66.2 billion in 2020 while […]