Newly formed NCBA Group, a byproduct of the merger between NIC Bank and Commercial Bank of Africa (CBA) will begin rationalisation of over 105 branches in Kenya. The merger was approved by the Central Bank of Kenya and the National Treasury on September 27.
Shareholders of Commercial Bank of Africa will own a 53 percent stake in NCBA Group and the remaining 47 percent stake will be owned by shareholders of NIC Bank. The new shares are expected to be traded by the end of October.
NCBA Group managing director John Gachora said during the unveiling of new logo and tagline that, “Our ambition is that by November 1 all NCBA customers will experience the same service levels regardless of their previous relationship at NIC Bank or Commercial Bank of Africa.”
He added, “At the heart of the merger, the biggest risk would be the people. None of the customer overlaps presents a major risk to the business as we were prepared for it.”
John Gachora also pointed out there won’t be any job cuts. All the employees of NIC Bank or Commercial Bank of Africa will be offered roles within the framework of NCBA. The newly formed bank’s workforce is estimated to be around 2400 employees.
NCBA Group is currently Kenya’s third-largest bank in terms of asset value. With assets worth Sh444 billion, NCBA will overtake Co-operative Bank who previously held the position of third-largest bank with assets worth Sh429.5 billion.
In Kenya, NCBA Group will have a combined market share of 9.9 percent and a customer base of over 40 million in East Africa.
According to the merger deal between NIC Bank and Commercial Bank of Africa, the two banks will also merge their businesses in Tanzania, Uganda, and Rwanda.