ABC Bank (Uganda)

Last updated

ABC Capital Bank (Uganda)
Company typePrivate: Subsidiary of ABC Bank (Kenya)
Industry Financial services
Founded1992;32 years ago (1992)
HeadquartersColline House
4 Pilkington Road,
PO Box 21091
Kampala, Uganda
Key people
James Wilson Muwanga
Chairman
Jesse Timbwa
Chief Executive Officer
Sreekumar Vamadevan
Executive Director [1]
ProductsLoans, savings, investments
RevenueIncrease2.svgAfter tax: UGX:803.63 million (2022)
Total assets UGX:62.14 billion (2022)
Number of employees
50 (2020)
Website Homepage

ABC Bank (Uganda), whose full name is ABC Capital Bank Uganda Limited, is a Tier II credit institution in Uganda that is licensed by the Bank of Uganda, the central bank and national banking regulator. Previously licensed as a commercial bank, [2] the institution was given between 1 April 2024 and 1 July 2024 to re-organize as a Tier II institution, close all customer checking accounts and cease dealing in foreign exchange. [3]

Contents

Overview

The bank provides banking services to large corporations, small-to-medium-sized businesses (SMEs), as well as individuals. As of December 2022, the bank's total assets were valued at about UGX:62.14 billion, with shareholders' equity of about UGX:32.34 billion. [4]

History

ABC Capital Bank was founded in 1992 as Capital Finance Corporation Limited (CFCL), a Tier III Ugandan Financial Institution, under the licensure and supervision of the Bank of Uganda. In 1999, CFCL established a wholly owned subsidiary, CFC Forex Bureau. In 2008, CFCL signed a memorandum of understanding with ABC Bank (Kenya), identifying the Kenyan institution as a strategic investor in CFCL in the latter's efforts to transform into a commercial bank. On 26 February 2010, following the acquisition of a commercial banking license from the Bank of Uganda, CFCL rebranded as ABC Capital Bank. [5]

Ownership

ABC Bank (Kenya) is an investor in ABC Bank (Uganda). [6] As of September 2019, the shareholding in ABC Capital Bank, is summarized in the table below:

ABC Bank (Uganda) Stock Ownership
RankName of OwnerPercentage Ownership
1 ABC Bank (Kenya) 61.95
2Others38.05
Total100.0

Branch network

As of December 2020, ABC Bank (Uganda) maintained networked branches at the following locations: [4] (1) Main Branch - Colline House, 4C Pilkington Road, Kampala, (2) Luwum Street Branch - Pioneer Mansion, 11 Luwum Street, Kampala, (3) Kikuubo Branch - Fami Plaza, 21 Nakivubo Road, Kampala.

Transition to Tier II status

In Q2 2022, the Ugandan Minister of Finance, in consultation with the Bank of Uganda, signed new regulations raising minimum capital levels for commercial banks from UGX:25 billion (approx. US$6.7 million) to UGX:150 billion (approx. US$40 million) by 30 June 2024. [7] Due to its inability to raise the minimum capital requirements as stipulated, ABC Capital Bank was authorized to downgrade to a Tier II credit financial institution, whose minimum capital requirements of UGX:25 billion (approx. US$6.8 million) it met at that time. [3]

See also

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References

  1. ↑ ABCBU (31 March 2024). "Members of Board of Directors". ABC Capital Bank Uganda (ABCBU). Kampala, Uganda. Retrieved 31 March 2024.
  2. ↑ BOU (31 March 2023). "Licensed Commercial Banks As At 31 March 2023". Bank of Uganda (BOU). Kampala, Uganda. Retrieved 31 March 2024.
  3. 1 2 Dorothy Nakaweesi (27 March 2024). "Three banks downgrade to credit institutions". Daily Monitor . Kampala. Retrieved 31 March 2024.
  4. 1 2 ABCBU (19 June 2023). "Audited Financial Report for Year Ending 31 December 2022". ABC Bank Uganda (ABCBU). Kampala, Uganda. Retrieved 31 March 2024.
  5. ↑ ABCCB (26 July 2016). "History of ABC Capital Bank". Kampala: ABC Capital Bank (ABCCB). Retrieved 26 July 2016.
  6. ↑ Mbanga, Jeff (12 November 2008). "Kenyan bank set to buy Capital Finance". The Observer (Uganda) . Kampala. Retrieved 26 July 2016.
  7. ↑ Bernard Busuulwa (31 July 2023). "Uganda's new, higher minimum capital rules for lenders kick in, rattle investors". The EastAfrican . Nairobi, Kenya. Retrieved 31 March 2024.
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