CIB begins its success story in Kenya as CIB Kenya Limited turns profitable

Commercial International Bank aims to significantly enhance its investments in subsidiary and sister companies by incorporating existing ones or establishing new entities independently or in collaboration with other entities.

One of the most important deals made by CIB was its acquisition of a 51% stake in Mayfair Bank, currently known as CIB Kenya Limited, with a total deal value of $35.35 mn. This capital was used to increase its stake in April 2020, before CIB acquired the bank in its entirety at the beginning of this year.

CIB's acquisition of the Kenyan bank marked its first acquisition outside Egypt, specifically choosing Kenya as the most attractive market, serving as a commercial hub for East Africa.

This ambitious move serves as a complementary step to CIB's expansion plans in the African continent. Through this move, CIB aimed to explore and assess available investment opportunities in Africa for itself and its clients, leveraging regional and continental integration efforts and promoting intra-continental trade, especially with Egypt and Kenya's membership in the Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Agreement (AfCFTA).

Over the past years, the Kenyan bank has achieved strong performance, prompting CIB to acquire the remaining 49% stake in Mayfair Bank, making it fully owned by CIB in a deal valued at $40 mn. It has also undergone a name change to CIB Kenya Limited.

CIB Kenya Limited has achieved strong results in the Kenyan banking market. Within a short period, the bank transformed from a net loss of KES 86.946 mn in the first quarter of 2020 to a net profit of KES 47.210 million in the first quarter of 2023.

The bank has significantly strengthened its financial position, with its asset portfolio jumping by approximately 84.96% to reach KES 16.76 billion by the end of the first quarter of 2023, compared to KES 9.063 billion at the end of the same period in 2020, reflecting an increase of KES 7.699 billion.

Customer deposits at the bank also increased from KES 7.801 bn at the end of the first quarter of 2020 to KES 11.89 bn by the end of March 2023, a growth rate of 52.43% and an increase of KES 4.090 bn.

The bank's authorized and paid-up capital witnessed a significant increase, rising from KES 2.300 bn at the end of the first quarter of 2020 to KES 4.08 bn at the end of the first quarter of 2023, reflecting a growth rate of 77.46% and an increase of KES 1.78 bn.

Furthermore, shareholders' Equity of CIB Kenya Limited soared by 365.49% to reach KES 4.461 bn by the end of March 2023, compared to KES 958.454 mn by the end of March 2020, reflecting an increase of KES 3.503 bn.