Equity Bank and Kenya Commercial Bank (KCB) have been directed to sell at least 30 percent each in their subsidiaries in the Democratic Republic of Congo (DRC).
DRC’s Central Bank, Banque Centrale du Congo (BCC’s), issued a directive known as Instruction 18 requiring banks operating in the country to have at least four unrelated shareholders.
This includes the current owners who are required to own at least 15 percent by the end of 2026 to spread risks.
Besides, the local shareholders must also own at least 45 percent.
Equity Group Holdings and KCB Group Plc own 85 percent stakes in their DRC subsidiaries.
The Banks must sell significant stakes within the next 20 months to comply with BCC’s demands.
DRC’s big size and huge population make it a good market for banks planning to grow and expand in Africa.
Apart from Kenya, the two Banks posted huge profits in DRC compared to Rwanda, South Sudan, Uganda, and Tanzania in 2024.
Equity Bank DRC Profit & Operations
Equity Banque Commerciale du Congo (BCDC) posted a profit of Ksh15.6 billion with an asset base of Ksh656.5 billion.
Rwanda’s subsidiary came in third with Ksh5.4 billion, followed by South Sudan at Ksh1.3 billion.
The Bank posted a profit of Ksh1.2 and Ksh0.6 in Tanzania and Uganda.
BCDC posted a 29 percent rise in net profit last year to Sh15.6 billion while its asset base stood at Sh656.5 billion.
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Equity Bank was the first Kenyan Bank in the DRC market after buying 86.6 percent of German Bank ProCredit between 2015 and 2017.
The Bank later increased its shares to 94.3 percent.
In 2022, Equity acquired 66.53 percent of BCDC and merged it with Equity Bank Congo (EBC) to form Equity BCDC.
Equity Bank purchased 6.6 percent of the new Bank at Ksh9.24 billion in 2023, increasing its shares to 85.4 percent.
Initially, the BCDC was owned by Groupe Forrest International (66.53 percent), the DRC government (25.53 percent), and minority shareholders (7.94 percent).
Also Read: Billions KCB, Co-operative, Equity & Other Top Kenyan Banks Made in 2024
KCB Operations in DRC
KCB entered DRC market in 2022 after acquiring 85 percent of Trust Merchant Bank (TMB).
TMB posted a Sh10.4 billion net profit in 2024 from Sh8.1 billion in 2023.
KCB posted Ksh3.02 and Ksh2.61 in Rwanda and Tanzania, respectively.
The Bank’s profit in Uganda was Ksh1.1 billion while South Sudan’s subsidiary profit was Ksh-0.45 billion.
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