Equity Group doubles presence in DRC with new acquisition

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).

Upon the deal’s completion which remains the subject of both shareholder and regulatory approval, Equity Group will move to amalgamate the BCDC business operations with that of its already operational subsidiary in the country.

Equity Group CEO James Mwangi during a past investor briefing. PHOTO COURTESY

The transaction sits alongside Equity Group’s long-term quest of becoming a Pan-African Bank in a push that has seen it enter four other markets in the region since its humble micro-finance beginnings in Kenya in the mid 80’s.

“By acquiring BCDC, Equity Group will be able to expand its footprint in Africa. Further, Equity aims to provide access to competitive, tailored financial services to improve people’s livelihoods whilst delivering significant value to its stakeholders,” said Equity Group Managing Director James Mwangi in a statement to the Capital Markets Authority (CMA).

The proposed transaction comes on the back of yet another ongoing deal involving the acquisition of the distressed assets of London listed Atlas Mara in an affair that will see Equity venture into Zambia and Mozambique.

yX Media - Monetize your website traffic with us

Further, the Ksh.10 billion transaction will strengthen Equity’s already established positions in Rwanda and Tanzania.

At the same time, Equity Group has most recently opened a representative office in Ethiopia with a view of starting operations in the now liberated market.

The DRC lure

The Democratic Republic of Congo features as the most improved subsidiary for Equity, partly informing of the lender’s consolidation in the market which has an approximated population of 81.3 million.

In six months to June 30, DRC represented the second most profitable unit after Rwanda having registered net earnings after tax of Ksh.600 million across the period, representing a 16 percent jump in earnings from 2018.

Further, the DRC outfit topped in both deposits and loan growth for Equity Bank having seen deposits and loans soar by 43 and 21 percent to Ksh.54.3 billion and Ksh.27.1 billion respectively.

At the same time the Group’s operational ratios have been on the rise.

The units return on assets and equity (RoAE) for instance went up to Ksh.17.9 billion from Ksh.16.4 billion over the half-year review period.

DRC’s macros have also been attractive with an expected inflation rate of 4.5 percent in 2019, the lowest in Equity’s operations, while the local currency- the Congolese franc has marginally depreciated against the US dollar in the year to date in comparison to its peers.

However, the market is not all smooth sailing having carried a comparatively worse off cost to income ratio and return on average assets (RoAA).

Prior to Monday’s disclosure by the bank on the new DRC deal, the bank was set to close in on an expanded 14.5 million customer base composing of 291 branches, 699 Automated Teller Machines (ATMs) and 46,844 agents outlets.

The BCDC is currently majority owned by Belgian tycoon George Arthur Forrest and family and has an asset base in excess of Ksh.71 billion.

209 thoughts on “Equity Group doubles presence in DRC with new acquisition

  1. como ganhar na lotofacil acertar na lotofacil ganhar na lotofacil como ganhar na lotofacil de verdade como ganhar na lotofacil sempre como ganhar na lotofacil 2020 como ganhar na lotofacil 100 garantido dicas lotofacil como acertar na lotofacil dicas para ganhar na lotofacil

  2. After that, we will list all possible reasons why Cialis doesn’t work for some men – starting from health conditions and going all the way to other drugs and substances that can impede its effect. 19 on christmas if true that the new and they wont let but my has 20 year old male, How can i compare going on my parent’s ask around, but the do I receive the how much the premium Justy. If you liked this short article in addition to you would like to be given more information relating to generic viagra kindly check out our own web site.

  3. En cambio, los hombres que no presentan erecciones ni siquiera durante el sueño normalmente tienen algún problema orgánico. Colocar un anillo alrededor de la base del pene entonces ayuda a mantener la erección.

  4. You could definitely see your expertise in the article you write.

    The arena hopes for even more passionate writers like you
    who are not afraid to say how they believe. All the time go after your
    heart.

  5. Simply want to say your article is as surprising.
    The clearness in your post is simply cool and i could assume you
    are an expert on this subject. Well with your permission let me to grab your feed to keep up to date with forthcoming post.

    Thanks a million and please carry on the enjoyable work.

  6. We’re a group of volunteers and starting a new scheme in our community.
    Your website provided us with valuable information to work on. You’ve done a formidable job and our whole community will be thankful to
    you.

  7. Today, I went to the beach front with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed.
    There was a hermit crab inside and it pinched her ear.
    She never wants to go back! LoL I know this is completely off topic but
    I had to tell someone!

  8. Whats up very cool web site!! Man .. Excellent ..

    Wonderful .. I will bookmark your website and take the feeds also?
    I’m satisfied to seek out numerous useful info here within the publish, we’d like develop
    extra strategies in this regard, thank you for sharing.
    . . . . .

  9. Just want to say your article is as surprising.
    The clearness in your publish is simply excellent and i could suppose you are an expert
    on this subject. Fine with your permission allow me to grab your
    RSS feed to stay up to date with forthcoming post.
    Thanks a million and please keep up the gratifying work.

  10. Hello there! I know this is kind of off topic but I was wondering which blog platform are you
    using for this website? I’m getting sick and tired of WordPress because I’ve had issues with hackers and I’m looking at alternatives
    for another platform. I would be awesome if you could point me in the direction of a good
    platform.

  11. I do not even know how I ended up here, but I thought this post was great.
    I do not know who you are but definitely you’re going to a famous blogger if you
    aren’t already 😉 Cheers!

  12. hi!,I like your writing so a lot! share we keep up a correspondence more about your post
    on AOL? I need an expert in this area to
    solve my problem. Maybe that’s you! Looking ahead
    to peer you.

  13. Woah! I’m really digging the template/theme of this website.
    It’s simple, yet effective. A lot of times it’s
    very difficult to get that “perfect balance” between user friendliness and appearance.

    I must say you’ve done a great job with this.

    Additionally, the blog loads super quick for me on Safari.
    Superb Blog!

  14. Does your site have a contact page? I’m
    having problems locating it but, I’d like to
    send you an email. I’ve got some recommendations for your blog you might be interested in hearing.
    Either way, great blog and I look forward to seeing it expand over
    time.

  15. I’m impressed, I must say. Seldom do I come across
    a blog that’s equally educative and entertaining, and without
    a doubt, you have hit the nail on the head. The
    issue is something that not enough men and women are speaking
    intelligently about. I am very happy that
    I found this during my hunt for something regarding this.

  16. An intriguing discussion is definitely worth comment.
    I believe that you should write more about this issue, it might not be a
    taboo subject but typically people do not talk about
    these subjects. To the next! Best wishes!!

Leave a Reply

Your email address will not be published. Required fields are marked *

//onemboaran.com/afu.php?zoneid=2668430