Access Bank, one of the foremost banks in Nigeria is set to acquire 93.75% of Transnational Bank in Kenya as the consolidation of banks in Kenya hots up. Transnational Bank is one of Kenya’s tier-4 bank and posted a $693,904 loss in 2018.
This is coming barely seven months after the same Access Bank merged with the defunct Diamond bank and subsequently absorbed the bank into one entity.
The Kenyan bank acquisition was confirmed in a telephone chat with ThisDay Newspapers yesterday. According to Herbert Wigwe, the MD/CEO of the bank, the acquisition aligns with the bank’s strategic vision.
According to Wigwe, “We are going to issue a statement on the Nigerian NSE tomorrow (today). Kenya is a big market in Africa, it is a major trade route and major payment corridor.
“This aligns with our strategic vision. We have our own regulatory and board approvals. In Kenya, the bank is going through its own regulatory process. But the deal is imminent, so it could happen this week or next week.”
It is reported that the apex bank in Kenya, the Central Bank of Kenya (CBK) has already granted the approval for Access Bank’s acquisition.
Last week Access Bank Plc reported a significantly improved performance for the nine months ended September 30, 2019. The bank posted a 44% growth in profit after tax (PAT) to N90.7 billion in 2019, up from N62.9 billion in the corresponding period of 2018.
This will be the third Nigerian bank to set up operations in Kenya after GT Bank and United bank for Africa.
