KCB is expected to keep TMB as a distinct brand going forward just as it has retained the brands of its recent acquisitions including the National Bank of Kenya (NBK) and BPR Rwanda.
On Monday, KCB Group Chief Executive Officer Paul Russo doubled down on the importance of retaining the former brands as a strategy to sustain the Group’s growth in the new markets.
“Over time, we have learnt as KCB that we do not need to push KCB as a brand in those markets just for the sake it. The decision to run BPR (in Rwanda) and withdraw KCB has already paid off,” he said.
“Sometimes the big brother can think they know everything but we must humble ourselves and learn from TMB.”
Earlier this year, KCB retained the name Banque Populaire du Rwanda (BPR) as it entered the Rwandese market through the acquisition of the lender.
Meanwhile, KCB opted to keep NBK’s name and run the lender as a separate entity after acquiring the then ailing State backed lender in 2019.
According to KCB Group Chief Finance Officer Lawrence Kimathi, changing the brand name for acquired subsidiaries would serve to diminish the name of the brands.
“You see a lot of international banks coming to Kenya and they come and operate with a name from their headquarters. Has that really worked?”
According to Kimathi, the acquisition is expected to add Ksh.150 billion in assets with the deal improving the Group’s asset quality from lower non-performing loans (NPLs).
KCB sees the opportunity to leverage TMB in growing trade finance by taking advantage of thriving cross-border trading in the DRC.
From a loan-book perspective, KCB says it already has a pipeline of Ksh.28 billion in sectors including energy, manufacturing and mining.
KCB is eyeing further geographical expansion with Ethiopia on its sights amidst an impending law change that would allow foreign banks to enter the market.
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