Nigeria’s Access Bank is following up its “surprise acquisition” of Diamond Bank by spreading its tentacles to Kenya where it has been granted approval to acquire the Transnational Bank of Kenya.
According to reports, the Central Bank of Kenya (CBK) has okayed the acquisition of the Kenyan lender by Access Bank.
CBK approved the planned takeover on Friday, October 25, as part of an effort to consolidate the nation’s banking industry. Upon completion of the deal, Access Bank will take over 93.57 percent of the assets currently under the management of the Transnational Bank of Kenya.
Transnational Bank is one of Kenya’s tier-4 banks. Last year, the bank saw its non-performing loans jump to KES 1.85 Bn (USD 17.85 Mn) from KES 1.17 Bn. The bank’s financial statement for 2018 also pointed to a loss of KES 71.8 Mn (around USD 694 K).
Although the Kenyan lender’s numbers aren’t particularly pretty, Access Bank may be looking to capitalise on the interests of the Transnational Bank in the agricultural sector. Also, Access Bank is looking to further cement its pan-African strategies by moving into East Africa’s largest economy with this acquisition.
Earlier this year, Access Bank may have surprised many when it announced an “acquisition-ish” merger scheme with Diamond Bank; a relatively more popular bank in Nigeria which many even considered bigger.
It was an arrangement that saw Diamond Bank transfer all its assets, liabilities, and undertakings to Access Bank.
Access Bank’s visionary CEO, Herbert Wigwe, has previously mentioned that the bank is pushing ahead to create Africa’s biggest retail institution and a formidable global powerhouse. And it does seem like things are on track.
Featured Image Courtesy: BellaNaija
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