The announcement that NIC Group PLC and Commercial Bank of Africa Limited are in talks for a potential merger would create the third largest bank by asset base.
Based on the third quarter financial results of the two companies, CBA asset base is sh227 billion while NIC asset base is sh187 billion. A combination of the two would put the total assets at sh414 billion.
Kenya Commercial Bank (KCB) which is the largest bank by assets base is at sh594 billion followed by Equity Bank at sh424 billion.
A statement from announcing the merger said that the potential merger would bring together the best in class retail and corporate banks with strong potential for growth in all aspects of banking and wealth management.
“It is the view of the two Boards that A combined entity would create a complementary base of over 38 million customers, a strong digital proposition and a robust corporate and asset finance offering”, read the statement in part.
The statement added that the discussions are at an early stage hence they cannot give more details. It is unclear whether CBA not being listed in the Nairobi Securities Exchange and NIC being listed, which bank will go the other way.