Access Holdings, the parent company of Access Bank PLC (Access Bank) says it has agreed to acquire an estimated 80% in Uganda’s Finance Trust Bank (FTB).
This was revealed in a statement released this week by the Nigerian banking group.
According to the statement, the transaction is subject to regulatory approvals by the Central Bank of Nigeria and Bank of Uganda, and is expected to be finalised in the first half of 2024.
Upon fulfilment of conditions, Access Bank will own a majority shareholding (80%) in the Ugandan-based bank, FTB.
The development comes at a time when commercial banks in Uganda are struggling to meet new mimimum capital requirements.
Worth noting is that in 2022, the Bank of Uganda increased capital buffers for financial institutions from Shs25 billion to Shs150 billion.
Many institutions including FTB have been struggling to meet this requirement.
Access’ share acquisition and capital injection in FTB is expected to increase the Ugandan bank’s capital base.
According to Access, this strategic acquisition presents them an opportunity to partner with FTB and its stakeholders to create more significant opportunities for financial inclusion, product diversification, and, ultimately, greater customer-centricity.
Commenting on the transaction, Roosevelt Ogbonna, Managing Director of Access Bank Plc said: “The prospective acquisition of a majority equity stake in Finance Trust Bank marks an important milestone for Access Bank as we strengthen our regional presence in the East African Community trade region. This also moves us closer to realizing our five-year strategic plan through continued expansion to achieve scaled benefits across key African markets.
He noted that beyond the expansion goals, this deal will enable the Bank to deepen its community and women impact initiatives, as we will be building on FTB’s mission to effectively deliver innovative financial solutions to customers and stakeholders, especially women.
“Our storied history and experience in gender initiatives and women empowerment will greatly benefit FTB’s current deposit and loan portfolio – which currently comprises about 40% women – and the larger Ugandan community.”
Annet Nakawunde Mulindwa, managing director of FTB noted that this strategic alliance will fortify their position in the financial landscape and enable the bank to offer our customers a broader array of innovative products and services.
“As we embark on this journey, we extend our heartfelt appreciation to our loyal customers, dedicated employees, and valued shareholders for their unwavering support,” Nakawunde said.
“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 added.