Local banking entity I&M Bank, is rebranding all the seven recently acquired Giro Commercial Bank Limited (GCBL) branches. This has effectively pushed up the I&M Bank Kenya’s network to 43 branches countrywide. The recent successful acquisition of GCBL by I&M Group has underlines the viability of bank consolidations in Kenya.
Effective February 13, 2017, IMBL assumed Giro Bank’s licensing rights and obligations. All GCBL stakeholders including depositors, 110 employees, and creditors have been absorbed by I&M Bank. I&M Bank Limited CEO, Mr. Kihara Maina said the rebranding will involve outfitting of the seven branches to the signature I&M Bank brand identity. The Bank is currently working on integrating GCBL’s data into I&M Bank systems.
“The integration is well aligned to the strategic aspirations of I&M Bank and is aimed at making the merged entity a more efficient and stronger bank. The strategic rationale of the acquisition includes pursuing scale to improve market penetration, filling portfolio gaps in business operations and creating value by improving overall business performance while creating wider access for product offerings,” Mr Kihara said.
The consolidation, Mr Kihara noted, has also served to underscore I&M Group’s expansion strategy, which seeks opportunities to expand both locally and regionally by way of acquisitions and green field projects.
“At I&M Bank, we have been sincerely working hard to welcome aboard our new customers from the former Giro Bank by guaranteeing them excellent services and products,” Mr Kihara said, “Similarly, existing I&M Bank customers are now enjoying an expanded branch network as part of our corporate commitment to enhance our service delivery capacity.”
The consolidation of GCBL has provided a much needed market growth advantage for I&M Bank which will now enjoy an expanded market presence and a quality balance sheet expansion. Through the merger, I&M Group has acquired additional net advances of approximately Ksh9.1 billion, and deposits of Ksh12.6 billion besides other assets of approximately Ks6.7 billion.
I&M Bank was licensed in 1996, and ranked 9th in terms of market share as at December 31, 2016, with 36 branches. GCBL was licensed in 1992, and ranked 26th in terms of market share as at December 31, 2016, with seven branches. Taken together, the merged bank is estimated to have a combined market share of about 5 percent as at December 31, 2016.
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