Equity Bank Kenya (a subsidiary of Equity Group Holdings) has signed an agreement with Spire Bank for the purchase of the latter’s selected assets and liabilities. The transaction is anchored in Equity’s plan to support the recovery of the economy post Covid -19. In its an-audited half year financial report as at June 2022, Spire Bank reported total customer deposits liabilities of Kshs. 1,938 million and net loans and advances to customers of Kshs. 1, 745 million. Additionally, the lender had statutory loan loss reserves of Kshs. 800 million.
In this transaction, Equity Bank Kenya is acquiring approximately 20,000 customers of Spire Bank with approximately Kshs.1, 322 million deposits. It is also likely to acquire approximately 3,700 customers with outstanding loan balances of Kshs. 945 million. While announcing this development, Dr. James Mwangi, Group Managing Director and CEO of Equity Group Holdings said : “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.” He added: “This transaction is in line with our vision of championing the socio-economic prosperity of the people of Africa.”
Speaking after signing the agreement, Spire Bank Board Chairman, William Rahedi said: “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 the same regard, Joel Gachari, the Chairman of Mwalimu National Sacco (a major shareholder of Spire Bank), said: “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.”