I&M acquires Giro Commercial Bank, takes over employee, client and creditor operations

I&M acquires Giro Commercial Bank, takes over employee, client and creditor operations
  • I&M  Bank  Ltd.  has acquired 100%  of  Giro Commercial  Bank Ltd (GCBL)
  • GCBL  has  ceased to  be a  lender licensed by  the Central Bank of Kenya (CBK)
  • All GCBL stakeholders, including depositors, employees,  and  creditors will continue their relationship  with I&M

Effective February 13, 2017, GCBL’s rights  and obligations have been taken up  by  I&M. The  acquisition  follows a CBK  approval  on October  27, 2016,  for  IMHL  to acquire 100%  shareholding of  GCBL  under  Section 13 (4)  of  the Banking Act,  and approval  by  the Cabinet Secretary  National  Treasury  on  January  27,  2017 under  Section 9 of  the Banking  Act.  

As of December 2013, Giro Commercial Bank’s total assets were valued at approximately US$157.7 million (Ksh13.6 billion), with shareholders’ equity of approximately US$24.2 million (Ksh2.1 billion). At the time, the bank held US$132.6 million (Ksh11.5 billion), in customer deposits. The bank was ranked number 29 out of 43 licensed banks in Kenya, then. In terms of market share, Giro Commercial Bank was ranked 27 out of 44 banks with a share of 0.49 per cent as at December 2014.

I&M  Bank  is  a wholly  owned banking  subsidiary  of  I&M  Holdings  Ltd. (IMHL) a non-operating holding company,  authorized by  CBK under  Section 13(4) of  the Banking Act.

The lender was licensed in 1996,  was ranked  9th  in terms  of  market share as at December 31, 2016,  with 35 branches.  GCBL  was licensed in 1992,  and  was ranked  26th  in terms  of  market share  as at December  31,  2016, with 7  branches. Taken together, they  had a  combined  market share of  about 5% as at December 31, 2016. IMHL has  a banking  presence in Kenya, Mauritius, Rwanda,  and  Tanzania, and is listed at the  Nairobi  Securities Exchange.

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