Commercial Bank of Africa (CBA) has announced that it intends to acquire all the shareholding in Crane Bank Rwanda. Essentially, this means that CBA will push its foothold in East African countries to four.
CBA, which is the largest privately owned bank in East Africa, has operations in Kenya, Uganda, and Tanzania. Crane Bank Rwanda was the Rwanda subsidiary of Crane Bank, which was the third biggest banking group in Uganda until October last year when it was put in receivership following liquidity problems.
In January, Crane Bank Group was acquired by DFCU Bank in a transaction brokered by Bank of Uganda. In the statement announcing the acquisition yesterday, CBA said it had acquired 100 per cent of the Rwandan bank which was owned by DFCU Bank.
“This transaction is subject to regulatory approval by National Bank of Rwanda, Bank of Uganda and Central Bank of Kenya as well as other relevant capital markets regulatory authorities,” said the statement from CBA.
The Kenyan bank said the acquisition signals CBA’s strategic intention to expand its existing business operations in Rwanda and participate meaningfully in Rwanda’s economic growth agenda by providing the full spectrum of financial services to this market.
It is guided by CBA’s long-term strategic vision that targets to increase its market share across the region through focusing on innovative products and solutions, that help customers to achieve their financial goals and ultimately grow their wealth,” said CBA in the statement.
CBA financial position has strengthened in the last five years to an asset base valued at Sh227 billion, loan book valued at Sh117 billion by end of last year. Its customer deposits stood at Sh189 billion.
We are the Leading Digital Business Magazine