This archive report was first published on 9 September 2019.
Published on September 9, 2019, Equity Group has moved to strengthen its Democratic Republic of Congo (DRC) banking business with a new proposed purchase of a controlling stake in the Commercial Bank of Congo (BCDC).
The proposed transaction, subject to shareholder and regulatory approval, aims to amalgamate the BCDC business operations with Equity Group's already operational subsidiary in the country.
Equity Group's Managing Director, James Mwangi, stated that the acquisition will enable the bank to expand its footprint in Africa, provide access to competitive financial services, and deliver significant value to its stakeholders.
The Ksh.10 billion transaction will strengthen Equity's positions in Rwanda and Tanzania, while also venturing into Zambia and Mozambique through the acquisition of distressed assets from London-listed Atlas Mara.
Equity Group has also recently opened a representative office in Ethiopia, with plans to start operations in the market.
The DRC has emerged as the most improved subsidiary for Equity Group, with the lender's consolidation in the market driven by the country's approximated population of 81.3 million.
In the six months to June 30, DRC represented the second most profitable unit after Rwanda, with net earnings after tax of Ksh.600 million, a 16 percent jump from 2018.
The DRC outfit also topped in both deposits and loan growth for Equity Bank, with deposits and loans soaring by 43 and 21 percent to Ksh.54.3 billion and Ksh.27.1 billion respectively.
