KCB Group has received regulatory approval from the National Bank of Rwanda (BNR) to merge its newly acquired Banque Populaire du Rwanda (BPR) and KCB Bank Rwanda.
The two banks will now run as a single entity named BPR Bank Rwanda Plc, with KCB Group owning the majority stake starting 1st April 2022.
BPR Bank Rwanda Plc becomes the second largest bank in Rwanda’s banking industry and gives KCB Group an edge in deepening the ongoing Group strategy to scale its regional presence.
“BPR, as we know it today, has a lot of potentials. The success of this business will build on our era of undisputed leadership in the market and contribute to Rwanda’s economic success journey,” KCB Group CEO Joshua Oigara.
I am confident that we can re-write Rwanda’s next chapter of development and economic growth, added Mr Oigara.
KCB now manages 150 branches and 944 agent outlets across Rwanda, second only to its Kenya unit which manages 296 branches and 14,512 agency shops.
“The success of this integration now allows our customers to enjoy exciting retail and wholesale offerings and the wide branch network is an opportunity for us to roll out products and services to MSMEs and the rural community,” he added.
Subsequently, the BPR Bank Rwanda Plc Board has approved a new organizational structure for the integrated entity which takes effect immediately subject to governance approvals from the regulator – BNR.
Further, Mr George Odhiambo, a seasoned banker has been appointed as the Managing Director BPR Bank Rwanda Plc. Until his appointment, Mr Odhiambo was the Managing Director of KCB Bank Rwanda.
KCB acquired BPR in June last year from London-listed financial services company Atlas Mara Ltd.
KCB’s Rwanda operation also benefitted from the addition of the new acquisition, raising its profit before tax by 71 percent or Kes450 million to Kes1.08 billion in the 12-month period ended December 2021.
KCB Tanzania subsidiary reported Kes1.07 billion profit, while KCB South Sudan, which was the most profitable regional subsidiary in 2020 came third last year with Kes995 million in net earnings.