Overview:
As part of the new capital rules, commercial banks were mandated to increase their minimum capital levels to sh120b ($32.5m) by the close of December 2023.
Nigeria’s Access Holdings Plc says its subsidiary, Access Bank, has agreed to acquire a majority stake in Uganda’s Finance Trust Bank Limited (FTB).
Access Bank, a wholly-owned subsidiary of Access Holdings Plc, operates as a commercial bank in about 20 countries, with Access Holdings Plc listed on the Nigerian Stock Exchange.
In a statement filed on the Nigerian Exchange Limited (NGX), on Wednesday, Sunday Ekwochi, said both companies entered into a definitive agreement that involved FTB’s institutional shareholders.
The acquisition, subject to regulatory approvals of the Central Bank of Nigeria (CBN) and Bank of Uganda, will see Access Bank take up 80 percent of Finance Trust Bank.
According to the statement, the transaction, projected for completion in the first half of 2024, involves share acquisition and capital injection in FTB to increase the Ugandan bank’s capital base.
Ms. Annet Mulindwa, Finance Trust Bank Managing Director expressed that the transaction will empower the bank to “offer our customers a broader array of innovative products and services.”
As part of the new capital rules, commercial banks were mandated to increase their minimum capital levels to sh120b ($32.5m) by the close of December 2023.
In 2024, the Bank of Uganda expects commercial banks to rise their minimum capital to sh150b ($40.7m), an additional sh30b before the end of December 2024.
As part of the new capital rules, commercial banks were mandated to increase their minimum capital levels to sh120b ($32.5m) by the close of December 2023.
In 2024, the Bank of Uganda expects commercial banks to rise their minimum capital to sh150b ($40.7m), an additional sh30b before the end of December 2024.
As of December 2022, Finance Trust reported total assets of sh441b. Its share capital was reported at sh27.7b, and a core capital position of sh60b during the year under review.
The bank, headquartered in Nakasero, Kampala, operates a network of nearly 34 branches, with 70% of these branches located in rural areas.
Finance Trust Bank, originally registered as an NGO in 1984 under the name Uganda Women’s Finance and Credit Trust Limited, underwent subsequent changes, obtaining an operating license on November 11, 2013.
The institution transitioned to a Microfinance Deposit-taking Institution on October 12, 2005.