The German development finance institution DEG, a subsidiary of German development bank KfW, has invested US$10million in equity into Chase Bank Kenya, the bank said.
The investment makes DEG one of the leading shareholders in the local banking solutions provider, following a recent additional capital injection US$ 10.5million from Paris-based investment firm, Amethis Finance and Zurich-based responsibility Participations AG injecting $5 million in the Bank.
The equity agreement between Chase Bank and DEG is part of the strategic plans the Bank aims to achieve particularly in strengthening financial support for SME sector in Kenya, and also realizing its aggressive growth and diversification strategies.
Confirming the investment during the signing ceremony, Eric Kaleja, DEG’s Regional Director East Africa said; “Our move to invest in Chase Bank Kenya signifies our confidence in the growth prospects of the Bank not only in Kenya but also in other markets across the African continent.”
The additional equity injection will support the banks ambitious growth plans including a role out and presence in the counties. The bank currently has 30 branches in major town centres.
Chase Bank has been the fastest growing bank in the industry over the past six years, exhibiting impressive financial results with a compounded annual balance sheet growth above 50%.
According to its 3rd quarter interim financials, the bank reported a profit after tax of Ksh 1.12 billion from KES 590 million reported in September 2012, representing a growth rate of 89%. The bank’s balance sheet as at September 2013 stands at Ksh 62 billion.
