Commercial Bank of Africa (CBA) is set to expand its footprint in the region following the full acquisition of Kigali-based Crane Bank Rwanda Ltd.
The deal will see CBA acquire 100 per cent of the bank, which is a subsidiary of Uganda’s DFCU Bank Ltd.
“This acquisition signals CBA’s strategic intentions to expand its existing business operations in Rwanda and participate meaningfully in Rwanda’s economic growth agenda,” said CBA in a statement Thursday. Crane Bank, Uganda’s fourth largest bank by assets, was in October last year placed under statutory management by the Bank of Uganda (BoU) following revelations that it was no longer able to meet its obligations.
“The action has been taken upon a determination by BoU that Crane Bank Ltd is a significantly undercapitalised institution as defined by law, poses a systemic risk to the stability of the financial system and that the continuation of Crane Bank’s activities in its current form is detrimental to the interest of its depositors,” said the regulator.
Earlier this year, DFCU Bank acquired the assets and liabilities of Crane Bank for an undisclosed amount, with the firm said to be working on reducing its non-performing loans.