CBA in merger talks with rival NIC Bank
SEE ALSO :CBA shareholders accept NIC Group mergerCBA is currently the seventh biggest bank in the country controlling a 6.05 per cent market share, according to the latest banking sector supervisory report. NIC on its part controls 4.62 per cent. Combined, the two will have a market share of 10.67 per cent, which places the planned new entity above Cooperative Bank (9.93 per cent) and Below KCB Bank (14.14 per cent) “A combined entity would create a complementary base of over 38 million customers, a strong digital proposition and a robust corporate and asset finance offering,” the joint statement stated. NIC, which is associated with the Ndegwa family, has had a good run in the financial industry and has become a market leader in asset finance. Though the deal is being marketed as a merger, it is understood that CBA, which has grown exponentially in the last decade to become a tier one bank will be the one with the last laugh and is understood to be the one buying NIC. CBA’s breakthrough came with the deal with Safaricom to host the banking end of the M-Shwari, a mobile lending application that has seen it bag millions of new accounts.
SEE ALSO :Banks reap big from lending to the StateThe Central Bank of Kenya (CBK), which regulates the banking industry, has been blowing hot and cold over the issue of consolidation.
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