CIB's Significant Expansion in Kenyan Market Boosts Investments in Subsidiaries to EGP 2.12 Bn by June-2023 end
Yasmin El-sayed / Wegdan Mohamed
Commercial International Bank - Egypt has witnessed significant growth in its investments in subsidiaries and affiliates during the current year, surging by approximately 97.01%. The bank recorded a total of EGP 2.12 bn by the end of the first half of 2023, compared to EGP 1.07 bn at the end of 2022, representing an increase of EGP 1.04 bn.
This substantial increase is a result of CIB's strong focus on expanding in the Kenyan market. The bank aimed to acquire 49% of a Kenyan bank, seeking full ownership in a deal valued at around $40 mn. This move raised CIB's Equity stake to approximately EGP 1.78 bn by the end of March 2023, up from EGP 560.96 mn in 2022.
This expansion aligns with CIB's strategy to grow its presence in the African continent. The bank's presence in the Kenyan market serves as a new bridge to enhance bilateral relations between the 2 countries.
Moreover, expanding its activities and market share in Kenya helps overcome logistical barriers faced by investors and businesses on both sides, promoting trade and mutual investments, and strengthening overall presence in Africa.
CIB Kenya Limited has shown impressive performance in the Kenyan market, reporting profits of EGP 32 mn in June 2023, with its asset portfolio jumping to EGP 3.44 bn by the same period.
In January of the previous year, the bank had completed the acquisition of the Kenyan bank, and subsequently, it opened a new branch in Nairobi, the first to bear the name of the bank.
It's worth mentioning that in the first quarter of this year, CIB announced the commencement of the liquidation process of "C Ventures," one of its subsidiaries, of which it owns approximately 99.99% of its capital. The company is now classified as a non-current asset held for sale.
