KCB bank CEO Joshua Oigara said they are working towards acquiring the DRC bank in 2 years. The acquisition of the bank by KCB bank will lead to competition with Equity bank, which already has its presence there. The Equity Group acquired a 66.5% stake in BCDC at Kshs 10.3 billion in August.
The acquisition of the Democratic Republic of Congo by KCB Group follows the lender’s successful buyouts of Tanzania and Rwanda banks.
Mr. Oigara pointed out that the current total income from the lender’s subsidiary is below 10%. By the end of last year, the lender’s income from the subsidiaries had increased by 9.8% to Kshs 1.79 billion. The subsidiaries’ net income was approximated at 7.3% of the total net profit earned.
Notably, the Kenyan based commercial banks are searching for investment opportunities beyond the country’s borders. There is a massive potential for financial institutions to tap into in the East Africa region.
KCB is one of the leading local banks venturing into the untapped markets beyond the Kenyan borders. So far, the lender has boosted its net profits through the subsidiaries. The lender’s CEO said they are working on an expansion strategy to see the total subsidiary income grow to over 25%.