Nigeria's Access Bank to Acquire 80% Stake in Finance Trust Bank – The Ankole Times

Nigeria’s Access Bank to Acquire 80% Stake in Finance Trust Bank

Friday, January 19, 2024

LAGOS – Access Bank, a prominent Nigerian multinational commercial bank, is set to acquire an estimated 80% shareholding in Finance Trust Bank, a significant move anticipated to conclude in the first half of 2024. The acquisition aligns with the prevailing trend among commercial banks, aiming to bolster their capital to meet evolving regulatory requirements.

Access Bank, a wholly-owned subsidiary of Access Holdings Plc, functions as a commercial bank in approximately 20 countries. Access Holdings Plc is listed on the Nigerian Stock Exchange, signifying its position as a major player in the financial sector.

Annet Mulindwa, the Managing Director of Finance Trust Bank, expressed optimism about the transaction, stating, “The acquisition will empower the bank to offer our customers a broader array of innovative products and services.”

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Roosevelt Ogbonna, the Managing Director of Access Bank PLC, emphasized the strategic significance of the acquisition, saying, “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 move is driven by the need for commercial banks to adhere to new capital rules. Mandated to increase their minimum capital levels to sh120b ($32.5m) by December 2023, commercial banks in Uganda are expected to further raise their minimum capital to sh150b ($40.7m) in 2024, an additional sh30b before the end of December 2024, as stipulated by the Bank of Uganda.

As of December 2022, Finance Trust Bank reported total assets of sh441b, with share capital at sh27.7b and a core capital position of sh60b during the same period. The bank, headquartered in Katwe Kampala, operates a network of nearly 34 branches, with 70% strategically located in rural areas.

Finance Trust Bank, initially registered as an NGO in 1984 under the name Uganda Women’s Finance and Credit Trust Limited, underwent subsequent transformations, obtaining an operating license on November 11, 2013. The institution transitioned to a Microfinance Deposit-taking Institution on October 12, 2005.

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