Banks merge to lift customer confidence with Sh8b assets

By John Oyuke and Fredrick obura

Equatorial Commercial Bank (ECB) and Southern Credit Banking Corporation (SCBC) have merged.

The merger, which came into effect yesterday follow receipt of shareholder and regulatory approvals.

Peter Harris, the Managing Director of the merged bank, said shareholders and regulators had given green light to move ahead with the merger. The merger has created a new enlarged bank under the Equatorial Commercial Bank brand with 12 branch locations across the country.

Harris said there are plans to broaden services offered to customers quickly through integrating the offerings of both banks and expressed belief they can compete and grow more effectively with the critical mass that the merger delivers.

"From the first day the two banks would operate from one common banking platform, which will deliver immediate benefits to all customers," he said in a statement.

Transactions

This, he added means existing customers of both banks would be able to transact at any of the enlarged entity’s branches. "It has taken a huge effort from both banks to integrate IT and banking systems, and this gives me great confidence in our ability to work together seamlessly to realise the significant growth potential that the new merged bank has," he said.

The newly merged entity will also have a stronger balance sheet with over Sh8 billion in combined assets and deposits, placing ECB among the middle tier of banks.

The shareholders have agreed to increase the core capital of the merged bank to Sh1 billion by the end of 2010.