The financial services sector is poised for a wave of consolidations, mergers and acquisitions given recent changes in the regulatory environment. Cytonn Investments new report projects a realignment that will see mergers driven by stiffer regulation and a need by players to remain competitive.
“Consolidation is happening and will continue to happen – the last two years alone we have had five bank transactions. Equatorial Bank, Giro Bank, Oriental Bank, Fidelity Bank and Habib Bank have all been acquired and the common theme is that they are all Tier III banks. As the operating environment becomes tougher and more disciplined, we expect to see more Tier III banks get acquired,” said Elizabeth Nkukuu, chief investment officer during the launch of the banking sector report.
