ABC Bank (Uganda)

ABC Capital Bank (Uganda)
Company typePrivate: Subsidiary of ABC Bank (Kenya)
IndustryFinancial 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
RevenueIncreaseAfter tax: UGX:803.63 million (2022)
Total assetsUGX:62.14 billion (2022)
Number of employees
50 (2020)
WebsiteHomepage

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]

Overview

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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

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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

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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
Rank Name of Owner Percentage Ownership
1 ABC Bank (Kenya) 61.95
2 Others 38.05
Total 100.0

Branch network

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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

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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

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  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. ^ a b Dorothy Nakaweesi (27 March 2024). "Three banks downgrade to credit institutions". Daily Monitor. Kampala. Retrieved 31 March 2024.
  4. ^ a b 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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