Equity assets hit Sh1 trillion mark

Equity Centre in Nairobi upperhill. FILE PHOTO | NMG

By CONSTANT MUNDA
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Summary

• Managing director James Mwangi said the Sh1 trillion balance sheet puts the lender ahead of all banks in east and central Africa in asset value, helping improve its “visibility” to international investors.
• The migration of Banque Commerciale Du Congo’s (BCDC’s) assets after acquisition on August 7, Mr Mwangi said, has catapulted Equity ahead of KCB Group whose balance sheet stood at Sh972 billion in September.

Equity Group has crossed the Sh1 trillion asset threshold on transfer of newly-acquired Congolese bank’s wealth to its books, setting it on stage to compete for big-ticket financing deals on the continent.

Managing director James Mwangi said the Sh1 trillion balance sheet puts the lender ahead of all banks in east and central Africa in asset value, helping improve its “visibility” to international investors.

The migration of Banque Commerciale Du Congo’s (BCDC’s) assets after acquisition on August 7, Mr Mwangi said, has catapulted Equity ahead of KCB Group whose balance sheet stood at Sh972 billion in September.

“We are delighted to witness this milestone that has shattered the psychological barrier of a trillion-shilling balance sheet,” Mr Mwangi said in a statement on Wednesday.

“Equity banking subsidiaries will now be in a position to leverage the Group’s strength to extend large corporate loans across all the countries where Equity operates.”

Equity, whose balance sheet was worth Sh933.91 billion in September, will likely be joined by KCB Group which is set to spread wings in Rwanda and Tanzania.

KCB last month signed a deal with London-listed financial services firm Atlas Mara Ltd to acquire 62.06 percent stake in Banque Populaire du Rwanda Plc (BPR) and 100 percent stake in the African Banking Corporation Tanzania (BancABC) for $32 million and $8 million, respectively, subject to various regulatory and shareholder approval.

KCB has long been the wealthiest lender in the region.

“The one-trillion (-shilling) mark by Equity lifts the visibility of the financial sector in Eastern Africa significantly to compete favorably with financial institutions in South Africa, West Africa and North Africa for project and development finance,” the statement by Equity read.

South Africa’s Standard Bank Group (which trades locally as Stanbic Bank) remains Africa’s largest lender, followed by its peers FirstRand, ABSA Group (which has a local unit) and Nedbank Group.

BCDC’s MD Yves Cuypers said joining Equity will enable the Congolese customers to access “modern technologically driven banking, including a versatile mobile banking experience”.