KCB Group Stops Expansion Plans in Tanzania

The Kenya Commercial Bank (KCB Group) has halted further expansion in Tanzania after failing to get the final regulatory approval to acquire Atlas Mara’s unit in Tanzania, African Banking Corporation Tanzania Ltd (BancABC).

Here is the statement from the lender:

The bank says that it will continue to explore and pursue attractive regional expansion opportunities aimed at enhancing its regional participation in line with its expansion and growth strategy.

The Group’s asset base grew to Ksh 1.1 trillion attributable to the acquisition and consolidation of Banque Populaire Du Rwanda (BPR) into the Group as reported in its Q3 2021 financial results.

Sterling Capital Analysts had projected the asset base to expand further by Ksh 1.2 trillion if the acquisition of the Banking Corporation Tanzania Ltd (BancABC) would have been successful.

During the period, it reported a 131.1 percent growth in Profit After Tax (PAT) compared to a similar period in 2020 to Ksh 25.2 billion.  This was largely attributed to a 16.2 percent increase in interest income and a 53.4 percent decline in loan loss provisions to Ksh 9.3 billion.