Kenya’s largest lender by market capitalization, Equity Bank Group has shut down its investment banking arm; Equity Investment Bank (EIB) where it offers corporate finance, investment advisory and wealth management services

An inside source with knowledge of the matter said that the move was due to a fall in trading volumes and stiff competition which has made it difficult to get deals in a market dominated by standalone investment banks.

The bank will however maintain its license as it continues to offer stock brokerage services.

Following the closure, some of the affected staff have been deployed to other departments within the Bank to focus on more profitable businesses as it seeks boost returns for the group.

Equity Bank shuts down its investment banking arm

However, some of the senior managers have since ‘resigned’.

In 2014, EIB signed a partnership agreement with UK based investment firm, Exotix Partners as part of a strategy to collaborate closely on their respective research, sales and trading platforms.

Under the arrangement which has now been terminated, EIB was executing Kenya and East Africa fixed income and equity trades for Exotix’ international and regional institutional clients.

EIB’s Equity and Fixed Income sales team had been integrated within Exotix’ Global Frontier sales teams.