Transfer, definitely! Their incompetence is not your problem, although your concern for their situation is admirable! Look at it this way: if you leave, somebody else will HAVE to learn to handle the things you're doing, so you're actually doing them a favor.
Also, you may want to talk to some of the workers at the other branch to confirm your first impressions, or spend some more time working there if possible. You don't want to trade the frying pan for the fire.
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"If ten million people believe a foolish thing, it is still a foolish thing."
- Anatole France
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