KCB Group shareholders today approved the proposal to acquire up to 100% of the issued ordinary shares in Banque Populaire Du Rwanda (BPR) and a 100% stake in 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 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 organization for the shareholders,” said KCB Group Chairman Mr. Andrew W. Kairu.
At the 50th Annual General Meeting held earlier today via electronic means, the shareholders also approved a first and final dividend of KShs 1.00 per share. The dividend worth KShs.3.2 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 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, we are strengthening our balance sheet to give us room to support our customers and stakeholders through the crisis while ring-fencing the business for the post-pandemic growth,” said Mr. Oigara.
KCB Group Plc. shook off the effects of the ongoing COVID-19 pandemic to post a net profit of KShs.6.4 billion in the first quarter of 2021 ending March. The 2% growth in profitability from KShs.6.3 billion a year earlier was on the back of increased net interest income and cost-saving initiatives.