Egypt’s top lender acquires 51pc of Mayfair Bank Ltd
INVEST: Commercial International Bank (Egypt) (CIB) has injected Sh 3.74 billion to acquire 51 per cent of the shareholding of Mayfair Bank Ltd (MBL).
Anjay Patel Mayfair Bank chairman, said the partnership between the two banks is expected to benefit customers as it broadens trade between Kenya and Egypt.
“This share subscription will strengthen the bank as the injected funds will be added to the bank’s capital base and with all existing shareholders continuing in the institution, the bank will be well-positioned to accelerate the shareholders’ growth strategy,” he said.
Central Bank of Kenya (CBK), said the move follows its approval on April 7, under Section 13 (4) of the Banking Act and approval by Cabinet Secretary for the National Treasury and Planning on April 8, pursuant to Section 9 of the Banking Act.
CIB applied to the Competition Authority to be allowed to acquire controlling stake in MBL operations in Kenya in June 2017 and commenced its operations in August 2017. The bank has five branches in Nairobi, Eldoret and Mombasa.
MBL is a Tier III and is the fourth-smallest lender in Kenya. In 2019, the bank recorded a loss of Sh0.4 billion.
The bank targets high net worth individuals and the corporate market segment. It is categorised as a small bank with a market share of 0.17 per cent as of February 2020.
Commercial International Bank , licensed by Central Bank of Egypt on August 13, 1975, will provide MBL with requisite skills, resources and infrastructure to scale up its business.
It is currently the leading private sector bank in Egypt with a total asset base of approximately $24.18 billion (Sh2.45 trillion).
Rodney Omukhulu, Assistant Investment Analyst at Cytonn Investments, said that CIB’s business model focuses on individuals, small and medium enterprises (SMEs), institutions and corporate. CIB is the first Egyptian bank to establish a presence in Kenya.
