Egypt’s lender CIB buys out Kenya-based Mayfair Bank for Sh5 billion
Mayfair CIB has become a fully-owned unit of the Commercial International Bank-Egypt (CIB) after the latter finalised the purchase of the remaining 49 percent shareholding in the Kenya-based lender.
In an update to the markets, CIB disclosed that the total value of the transaction amounted to $40 million (about Kes5 billion).
Industry regulators, the Central Bank of Kenya (CBK) and the Central Bank of Egypt (CBE), have given the greenlight for the acquisition.
CIB now becomes the first Egyptian bank to establish a fully owned banking subsidiary in Kenya, the largest economy in East Africa.
“This follows CBK’s approval on January 23, 2023, under Section 13(4) of the Banking Act and approval by the Cabinet Secretary for the National Treasury and Economic Planning on January 24, 2023, pursuant to Section 9(1) of the Banking Act.
“This transaction follows the earlier acquisition by CIB of 51 percent shareholding in MBL announced in April 2020. Subsequently, MBL is now a fully owned (100 percent) subsidiary of CIB,” the CBK noted in an update dated January 30.
The Egyptian Exchange (EGX)-listed lender entered the Kenyan banking industry in April 2020 in a deal that saw the bank buy a 51 percent stake in Mayfair Bank in a $35.35 million transaction.
In 2021, Mayfair CIB posted Kes891.45 million operating income, a 64 percent jump from Kes544.95 million realised in a similar period the previous year.
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Financial disclosures show the bank reported Kes96.10 million net profit during the 12-month period that ended on 31 December 2021, against Kes379.30 million net loss in 2020.
Licensed in June 2017, Mayfair Bank currently runs five (5) branches in Nairobi, Eldoret, and Mombasa targeting high-net-worth customers and players in the corporate market segment.
It is categorised as a small bank with a market share of 0.26 percent as of December 2022.
Licensed in 1975, CIB, is the leading private sector bank in Egypt with a total asset base of about $19.8 billion (Kes2.5 trillion).
At the moment it trades on the Egyptian Stock Exchange, London Stock Exchange, as well as over the counter on the New York Stock Exchange.
CIB has representative offices in the United Arab Emirates (UAE) and Ethiopia.
The lender’s business model mainly focuses on individuals, small and medium enterprises, institutions, and corporates.
