NCBA Bank Kenya

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NCBA Bank Kenya Plc
Company typeSubsidiary of NCBA Group Plc
Parent trades on NSE: NNIC
Industry Financial services
Founded1959 (1959)
Headquarters
Nairobi
,
Kenya
Key people
Isaac O. Awuondo
Chairman
John Gachora
Group Managing Director [1]
ProductsLoans, Savings, Transaction accounts, Investments, Debit Cards, Credit Cards
RevenueIncrease2.svgAftertax:KSh7.7 billion (US$76 million) (Q3:2019) [2]
Total assets KSh487.8 billion (US$4.88 billion) (Q3:2019) [2]
Number of employees
~1,900 (2019)
Parent NCBA Group Plc
Website ke.ncbagroup.com

NCBA Bank Kenya, whose full name is NCBA Bank Kenya Plc, is a commercial bank in Kenya. It is licensed by the Central Bank of Kenya, the country's central bank and national banking regulator. [3] [4]

Contents

Location

The bank's headquarters are located at NCBA Centre, at the junction of Mara Road and Ragati Road, in the neighborhood called Upper Hill, in Nairobi, the capital city of Kenya. [3] The geographical coordinates of the group's headquarters are:01°17'52.0"S, 36°48'46.0"E (Latitude:-1.297778; Longitude:36.812778). [5]

Overview

NCBA Bank Kenya is a subsidiary of NCBA Group Plc, a large financial services provider in East Africa, and parts of West Africa. The group maintains its headquarters in Nairobi, Kenya. NCBA Group Plc owns subsidiary companies in Kenya, Uganda, Tanzania, Rwanda and the Ivory Coast. As of September 2019, NCBA Bank's total asset base was valued at about KSh487.8 billion (US$4.88 billion). At that time, the bank was ranked in position number three, by total assets, behind KCB Bank Kenya Limited and Equity Bank Kenya Limited. [2]

History

NIC Bank Kenya Plc roots trace back to 1959 when its parent company, NIC Group, was formed as a joint venture by Standard Bank Limited of South Africa and Mercantile Credit Company Limited of the United Kingdom. NIC was initially a non-bank financial institution (NBFI). [6]

NIC Bank Kenya Plc was incorporated in 2016 as a result of the corporate reorganization of NIC Bank Group. Prior to January 2017, NIC Bank Group operated both as a licensed bank and a holding company for its subsidiaries. [7]

On 12 September 2016, NIC Bank Group announced its intention to incorporate a new wholly owned subsidiary, NIC Bank Kenya Plc, to which it would transfer its Kenyan banking business, assets and liabilities. The rationale for the re-organisation is that by converting NIC Bank Group into a non-operating holding company (as defined under the Banking Act) that owns both banking and non-banking subsidiary companies in order to support the Group’s medium and long term strategy. [7] [8] The group reorganization was completed on 31 August 2017 upon approval from shareholders and the regulators. [9]

In 2017, the Central Bank of Kenya appointed NIC Bank as asset and liabilities consultant for Imperial Bank Limited (in receivership). Effectively, NIC Bank took over the responsibility of returning funds to the failed bank's deposit customers. The agreement also allows NIC to acquire some of the deposits, assets and liabilities of Imperial once its receiver manager the Kenya Deposit Insurance Corporation starts liquidating the bank. [10] [11]

In December 2018, NIC Group announced that it would be merging with Commercial Bank of Africa Group (CBA) creating Kenya's third-biggest bank, by assets. The transaction was approved by the Kenyan regulators and shareholders in April 2019. [12] CBK announces the merger of Commercial Bank of Africa Limited (CBA) and NIC Group PLC (NIC) effective September 30, 2019. [13]

As of 18 May 2019, the merged group was still operating two sets of banks in Kenya, Uganda and Tanzania but was in the process of seeking regulatory approval to merge these business so that they can have one bank in each country and a group rebranding. [8] On 27 September 2019, the Central Bank of Kenya approved the merger and name changes, effective 1 October 2019. The merged non-banking holding company became NCBA Group Plc and the Kenyan subsidiary of the merged entity became NCBA Bank Kenya Plc. The names of the merged entity in Tanzania, Rwanda, Uganda and Ivory Coast will re-brand accordingly. [14]

Branch network

As at 28 February 2020, NCBA Bank Kenya maintained 64 networked branches and 5 banking agencies in Kenya. [3] NCBA Bank's partnership with the Kenya Post Office Savings Bank enables the provision of cash collection services for its customers through Postbank’s network of 94 branches in Kenya.

NCBA Group

Members of the NCBA Group Plc include the following.

  1. NCBA Bank Kenya – Retail banking – Nairobi, Kenya Flag of Kenya.svg 100% Shareholding
  2. NCBA Capital – Investment banking – Nairobi, Kenya Flag of Kenya.svg 100% Shareholding
  3. NCBA Capital Securities – Securities brokerage – Nairobi, Kenya Flag of Kenya.svg – 100% Shareholding
  4. NCBA Bank Tanzania – Retail banking – Dar es Salaam, Tanzania Flag of Tanzania.svg 69% Shareholding
  5. NCBA Bank Uganda – Retail banking – Kampala, Uganda Flag of Uganda.svg 100% Shareholding.
  6. NCBA Bank Rwanda: Retail banking : Kigali, Rwanda Flag of Rwanda.svg 100% Shareholding
  7. M-Shwari Mobile Banking: Mobile money bank service: Abidjan, Ivory Coast Flag of Cote d'Ivoire.svg Joint Venture with MTN Group. [15]

Governance

The activities of NCBA Bank Kenya are directed by eleven board of directors. [16] The managing director is assisted by 10 other senior Officers in supervising the day-to-day activities of the Bank. [17]

See also

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References

  1. ↑ Corporate News (25 July 2013). "NIC Bank Hires Barclays Executive As CEO". Business Daily Africa . Nairobi. Retrieved 5 August 2014.
  2. 1 2 3 Victor Juma (28 November 2019). "Nyachae among wealthy owners of merged NCBA". Business Daily Africa . Nairobi. Retrieved 28 November 2019.
  3. 1 2 3 Central Bank of Kenya (28 February 2020). "Directory Of Commercial Banks And Mortgage Finance Institutions As At 28 February 2020" (PDF). Nairobi: Central Bank of Kenya . Retrieved 16 April 2020.
  4. ↑ Fredrick Obura (27 September 2019). "Exit CBA And NIC Bank, Enters NCBA Group Plc". The Standard (Kenya) . Nairobi. Retrieved 28 September 2019.
  5. ↑ Google (16 April 2020). "Location of the headquarters of NCBA Bank Kenya Plc" (Map). Google Maps . Google. Retrieved 16 April 2020.
  6. ↑ NIC Bank Kenya. "The History of NIC Bank". Nairobi: NIC Bank Kenya. Retrieved 6 August 2014.
  7. 1 2 NIC Bank Kenya (12 September 2016). "Circular to Shareholder - 12 September 2016" (PDF). Nairobi: NIC Bank Kenya. Retrieved 28 November 2019.
  8. 1 2 "NIC Bank Limited shareholders approve reorganisation in an Extraordinary General Meeting" . Retrieved 19 May 2019.
  9. ↑ Mugambi Mutegi (10 August 2017). "NIC To Finalise Reorganisation This Month". Business Daily Africa . Nairobi: Nation Media Group . Retrieved 28 November 2019.
  10. ↑ Victor Juma (21 June 2016). "NIC to compensate Imperial Bank depositors in new deal". Business Daily Africa . Nairobi. Retrieved 28 September 2019.
  11. ↑ James Anyanzwa (21 June 2016). "NIC to compensate Imperial Bank depositors in new deal". The EastAfrican . Nairobi. Retrieved 21 June 2016.
  12. ↑ Omar Mohammed (17 April 2019). "Kenya's NIC Group Shareholders Back Merger With CBA". Thomson Reuters . Retrieved 28 September 2019.
  13. ↑ "Done deal for NIC and CBA banks merger". People Daily. 27 September 2019. Retrieved 20 January 2022.
  14. ↑ George Obulutsa (27 September 2019). "Kenya Central Allows Merger of Lenders NIC and CBA Group". Reuters.com. Archived from the original on 28 September 2019. Retrieved 28 September 2019.
  15. ↑ Mumo Muthoki (29 November 2016). "CBA to launch M-Shwari loan service in Ivory Coast next year". Daily Nation . Nairobi. Retrieved 16 April 2020.
  16. ↑ NCBA Bank Kenya (30 October 2019). "Our Board of Directors". Nairobi: NCBA Bank Kenya. Retrieved 28 November 2019.
  17. ↑ Business Daily Reporter (25 July 2013). "NIC Bank Taps Diaspora for New Chief Executive". Business Daily Africa . Nairobi. Retrieved 6 August 2014.{{cite web}}: |author= has generic name (help)
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