Access Bank Plc Acquires 80% Shareholding in Uganda Finance Trust Bank

Access Bank Plc's recent statement revealed that it has signed an agreement with Uganda's Finance Trust Bank (FTB) to buy shares currently held by FTB's Institutional Shareholders who have agreed to exit as strategic, long-term shareholders. 

The transaction, subject to regulatory approvals by the Central Bank of Nigeria (CBN) and Bank of Uganda, is expected to close in the first half of 2024, following the fulfillment of customary conditions precedent as reported by LEADERSHIP.

If this transaction is successful, Access Bank will have a total of 80% shareholding in FTB.

Talking about the transaction, the managing director of Access Bank, Roosevelt Ogbonna, said,

• The prospective acquisition of a majority equity stake in Finance Trust Bank marks an essential milestone for Access Bank as we strengthen our regional presence in the East African Community trade region. This also moves us closer to realising our five-year strategic plan through continued expansion to achieve scaled benefits across key African markets.

• Beyond our expansion goals, this deal will enable the Bank to deepen its community and women's impact initiatives, as we will be building on FTB's mission to deliver innovative financial solutions to customers and stakeholders, especially women, effectively. 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.

Also, the MD of Finance Trust Bank, Annet Nakawunde Mulindwa, said, 

•  Finance Trust Bank is thrilled to announce this transformative partnership with Access Bank PLC, as it marks a pivotal moment in our growth journey and presents an extraordinary opportunity for our valued customers and stakeholders. This strategic alliance will fortify our position in the financial landscape and enable us 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. 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.

The transaction is believed to assist both banks in their technological resource, providing Finance Trust Bank customers with secured access and diversified digital platforms for seamless transactions and other banking services that Access Bank will provide.

FTB will also use access banks' expertise to build profound sector relevance across several Industries and tap into revenue opportunities across new customer segments, which cut across business and retail banking.