Dar es Salaam. Exim Bank Tanzania has successfully finalised the acquisition of Canara Bank Tanzania Limited’s assets and liabilities, marking a significant milestone in its expansion strategy.
The acquisition is Exim Bank’s third in six years, the bank said in a statement yesterday.
The deal follows a binding offer signed in 2024 and the subsequent regulatory approvals, culminating in the transaction’s completion.
Exim Bank, established in 1997, has steadily grown into one of Tanzania’s top five banks, leverage strategic acquisitions to expand both domestically and regionally. Its acquisition journey began in 2016 with a bank in Uganda, followed by UBL Bank Tanzania in 2019, FNB Bank Tanzania in 2022, and now Canara Bank Tanzania in 2024.
The bank also operates a representative office in Ethiopia, underlining its regional ambitions. Commenting on the development, Exim Bank’s chief executive officer, Mr Jaffari Matundu, welcomed former Canara Bank Tanzania customers, assuring them of a seamless transition.
“We are delighted to integrate Canara Bank Tanzania’s customers into the Exim Bank family. This acquisition underscores our dedication to delivering innovative financial solutions and exceptional service, ensuring a smooth transition for all stakeholders,” said Mr Matundu.
“This is a strategic step towards redefining banking in Tanzania and the region. Together, we will continue to innovate, grow, and provide impactful financial solutions that meet the evolving needs of our customers while supporting sustainable economic development,” he added.
Mergers and acquisitions play a crucial role in enhancing efficiency and strengthening Tanzania’s banking industry.
Exim Bank’s expansion strategy has facilitated the organised exit of smaller or less efficient banks, enabling the formation of stronger, more competitive institutions with improved balance sheets and expanded market reach.
This approach enhances industry resilience, reduces compliance and technology costs, and fosters sustainable banking practices.
Exim Bank’s head of strategic initiatives, Mr Sumit Shekhar, emphasised the bank’s commitment to economic growth and financial inclusion.
“We are not just participants in Tanzania’s economic progress; we are actively driving it. From supporting SMEs to leverage technology for financial inclusion, we are committed to making a tangible difference,” said Mr Shekhar.
Tanzania’s banking sector, despite the country’s relatively smaller economy compared to South Africa and Nigeria, hosts a large number of financial institutions.
However, consolidation efforts such as acquisitions aim to foster resilience, inclusivity, and sustainable credit flow.
Exim Bank’s chief finance officer, Mr Shani Kinswaga, highlighted the bank’s financial standing, which has enabled such strategic expansions.
According to him, as of December 31, 2024, the bank’s total assets stood at Sh3.1 trillion, with net loan book standing at Sh1.8 trillion. He said the bank’s deposit base was at Sh2.5 trillion.
Share this news
This Year's Most Read News Stories
Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
Serikali: Sampuli zilizochukuliwa hazijathibisha virusi vya Marburg
Wakati Shirika la Afya Duniani (WHO) likisema watu wanane wamefariki dunia kutokana na ugonjwa unaoshukiwa kuwa wa virusi vya Marburg (MVD) mkoani Kagera, Wizara ya Afya ya Tanzania imesema sampuli zilizochukuliwa hazijathibitisha uwepo wa virusi hivyo.Continue Reading
For years, a UK mining giant was untouchable in Zambia for pollution until a former miner’s son took them on
For years, the people in the villages around Chingola in Zambia endured frequent health challenges and dead fish floating around in their water source, but that was just the beginning of their nightmare.Continue Reading
