The former headquarters of Jamii Bora bank Limited (JBBL) has been renamed Kingdom Bank, a name associated with Cooperative Bank of Kenya.
Ninety percent of Jamii Bora bank was taken over by Coop Bank earlier this month in a deal worth billions.
In a statement, Coop bank said the transaction will diversify the business model of the two institutions, benefiting Co-op Bank’s shareholders and enhancing the resilience of the Kenyan banking sector.
The third tier bank was struggling with a cash reserve ratios of 11.1 per cent, far below the minimum statutory requirement of 20 per cent.
In the deal, Co-op Bank was issued with 224.1 million new “Class A” shares equivalent to 90 percent shareholding, while the stake of the existing shareholders will be diluted to 10 per cent.
JBB’s existing issued 24.9 million ordinary shares of Sh66 each will now be re-designated and re-classified as Class B ordinary shares, giving owners room to share in future profits as opposed to cashing out at once.
The name Kingdom Bank is a Coop bank’s other name, they love to refer themselves as such. In a June 2013 advert in the Standard Newspaper, there’s an article that talks about How Co-operative Bank rose from the ashes to become the ‘Kingdom Bank’.
This reflects the ‘faith-based’ foundation of Co-op bank in the marketplace. Indeed, as you subsequently enter the boardroom on third floor, there is a prominent scroll on the wall that displays an August 2008 Declaration by the bank’s Board of Directors; “Co-operative Bank shall be the Kingdom Bank through which God will bless His people of Kenya.” – The Newspaper article states
Co-op Banks securities trading arm is also called Kingdom Securities.
Here is a picture of the ‘new’ bank.
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