Kampala, Uganda | THE INDEPENDENT | Finance Trust Bank (FTB) has opted to sell an 80% stake to Access Bank PLC, a prominent Nigerian lender operating across more than 20 countries, following the Bank of Uganda’s decision to raise minimal capital requirements for financial institutions.
The move, subject to regulatory approvals from the Bank of Uganda and the Central Bank of Nigeria, is expected to be concluded in the first half of 2024.
Two years ago, BoU increased the minimum capital requirements for commercial banks by 500%, from UGX 25 billion to UGX 150 billion, with a deadline set for June 30, 2024. If this deal succeeds, Finance Trust Bank will become the third commercial bank to seek acquisition by well-established institutions to meet these heightened capital demands.
Djibouti’s Salaam African Bank (SAB) has since acquired Top Finance Bank Uganda, while Orient Bank has found its acquirer in the regional lender, I&M Group.
Annet Nakawunde Mulindwa, the managing director of Finance Trust Bank, emphasized the fortifying impact of this collaboration on FTB’s position in the financial landscape.
“As we embark on our new journey, we extend our heartfelt appreciation to our loyal customers, dedicated employees, and valued shareholders for their unwavering support. Leveraging Access Bank’s global presence and expertise, we look forward to reaching new heights and continuing to serve as a trusted financial partner to our customers and communities across Uganda,” she said.
The transaction, beyond strengthening financial ties, represents a technological merger between FTB and Access Bank.
FTB’s customers can now expect enhanced access to secure and diversified digital platforms, elevating their banking experience. In reciprocation, FTB stands to gain from Access Bank’s expertise, unlocking revenue opportunities across various customer segments.
Roosevelt Ogbonna, the managing director of Access Bank PLC, said the new development aligns with their commitment to deepening community and women empowerment initiatives.
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