Equity bank set to acquire certain assets and liabilities of Spire Bank, Kenya
Equity Bank announced it has signed an Assets and Liabilities Purchase Agreement with Spire Bank for the purchase of certain assets and liabilities.
In its un-audited half year financial report as at June 2022, Spire Bank reported total customer deposits liabilities of KES 1,938 million and net loans and advances to customers of Kshs.1,745 million together with additional statutory loan loss reserves of Kshs. 800 million that reduce the net loan and advances after applying statutory loan loss provisions of KES 945 million.
James Mwangi, Managing Director and CEO, Equity Group: ''We feel honoured to extend a hand of partnership to teachers with whom we have had a long and strong relationship. With the 20,000 teachers who we will be inheriting from Spire bank, Equity will become home to over 100,000 teachers spread throughout the country and accessing our services through our branches, our agent network and digital banking channels. Currently Equity processes a total monthly remittance of KES 1.8 billion in teachers’ salaries. 43,000 teachers have borrowed loans valued at Kshs 33 billion with a monthly repayment of KES 800 million. In addition, Equity is home to over 24,000 ECDE institutions and primary schools, and over 4,000 secondary schools. We appreciate the commitment that the teachers have shown to our partnership in moulding the future generations through our Wings to Fly program where they continue to serve as mentors and champions to over 47,000 secondary school scholars with an annual completion rate averaging 97% with 82% attaining university entry grades and 86% taking up leadership roles.''
In this transaction, Equity Bank Kenya is acquiring approximately 20,000 deposit customers holding deposits of approximately KES 1,322 million which represents approximately 0.25% of EBKL’s customer deposits of KES 522,753 million and approximately 0.14% of Equity Group’s consolidated customer deposits of KES 970,943 million, as reported in their un-audited half year financial statements as at 30 June 2022.
William Rahedi, Board Chairman, Spire Bank: ''We are pleased to have reached this agreement which on completion will ensure that our esteemed deposit and loan customers will continue to enjoy uninterrupted access to banking services through Equity Bank Kenya Ltd. In view of Spire Bank’s current market position, the board of directors is of the view that this development is in the best interest of Spire Bank’s customers and shareholders.''
Similarly, Equity Bank Kenya is likely to acquire approximately 3,700 loan customers that have outstanding loan balances reported at a net carrying value after statutory loan loss provisions of KES 945 million by Spire Bank in its un-audited half year financial statements as at 30 June 2022 which represents approximately 0.23% of EBKL’s reported net loans and advances to customers of KES 417,482 million and approximately 0.15% of Equity Group’s reported consolidated net loans and advances to customers KES 650,556 million as at 30 June 2022.
Joel Gachari, Chairman, Mwalimu National Sacco: ''On completion of the proposed transaction on 30th November 2022, all existing depositors of Spire Bank (other than remaining deposits from Mwalimu National Sacco) will become customers of Equity Bank Kenya and enjoy a wide range of products and services through Equity’s extensive infrastructure and channels including branches, agent network and digital self-service channels. We shall also explore other areas of collaboration for the benefit of both institutions and their members.''
www.equitygroupholdings.com
www.spirebank.co.ke
