KCB Group won’t expand further in Tanzania after failing to get the final regulatory approval to acquire Atlas Mara’s unit in Tanzania, African Banking Corporation Tanzania Ltd (BancABC).
According to the lender, “…certain regulatory approvals have not been received within the prescribed timeframe specified in the Agreement”.
“As a result, the Agreement has been terminated and accordingly, the parties will not proceed to complete the Transaction,” the lender said in a statement.
KCB says 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 per cent 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 per cent increase in interest income and a 53.4 per cent decline in loan loss provisions to Ksh 9.3 billion.
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