The Banker Magazine wh were hosting a prestigious ceremony in the United Kingdom, declared KCB Bank Kenya and Trust Merchant Bank SA (TMB) as their respective countries’ Best Banks of the Year for 2023. This recognition underscores these financial institutions’ exceptional accomplishments amidst an arduous global banking landscape.
KCB Bank Kenya Triumphant in Expanding
In 2022, KCB Bank Kenya secured the prestigious award to recognize its strategic expansion initiatives; notably, they triumphantly acquired Trust Merchant Bank SA (TMB) in the Democratic Republic of Congo (DRC). This action not only reinforced their presence but also underscored their dedication to regional growth.
The bank also underscored its commitment to a green lending business model, articulating ambitious plans: by 2025, it aims to amplify its share of the comprehensive loan book–from current standings at an undisclosed percentage–upwards until it reaches 25 percent. Such environmentally aware strategy dovetails with global sustainability objectives; simultaneously, this showcases the bank’s progressive approach – an alignment that is not only prudent but also strategic in nature.
Diversification and Growth of TMB
By significantly advancing in the syndicated loans market, Trust Merchant Bank (TMB) – a subsidiary of KCB Group in DRC – secured its award. This strategy bolstered TMB’s value proposition for the corporate banking sector and promoted increased diversification within its loan book.
TMB achieved an impressive financial performance: it saw a 22% increase in Tier 1 capital; its assets grew by 18%, and customer deposits–measured in dollars–rose significantly with a growth rate of 17%. This outpaced sector-wide expansion due to the bank’s commitment to responsible lending, specifically towards small and medium-sized enterprises; consequently contributing was a notable expansion of its loan portfolio at rates exceeding 20%.
Perspective of the CEO
The dual victories delighted Paul Russo, CEO of KCB Group. He emphasized that these triumphs underscore not only the bank’s ability to implement sound business models and strategies for long-term success but also its commitment to innovation, service excellence, and inclusive finance ideals. By leveraging digital banking ecosystems, he asserted they deliver value directly to stakeholders.
Recent Accolades and Global Recognition
Adding to the recent accolade of KCB Group’s second consecutive ranking among Africa’s largest banks, The Banker Magazine recognises it. Furthermore, securing the title as the world’s sixth strongest banking brand solidifies its position within globally top 500 most valuable banking brands.
Purposeful Lending and Financial Performance
The challenging business environment did not hinder KCB Group from growing its assets to Sh2.1 trillion and posting a commendable net profit of Sh30.7 billion for the nine months ending September 30, 2023. Prudent financial control measures and substantial contributions from regional subsidiaries received attribution for this impressive performance.