Access Bank to acquire 80% stake in Finance Trust Bank of Uganda

The signing of a final contract for Access Bank's equity investment in Finance Trust Bank (FTB) Uganda has been announced by both banks. As part of the agreement, Access Bank will also buy the shares that FTB's institutional shareholders currently own, who have been looking to sell their stake to a long-term, strategic investor. Access Bank would hold an estimated 80% of the shares in FTB when the transaction closes as planned.

The transaction is anticipated to close in the first half of 2024, pending regulatory approvals from the Central Banks of Uganda and Nigeria. This is conditioned upon the fulfillment of usual conditions precedent.

Finance Trust Bank (FTB) is a tier 1 financial institution that operates under license number A1.028 from Bank of Uganda. Founded in 1984 as Uganda Women's Finance Trust (UWFT), an NGO providing basic loans and deposit facilities to low-income women, the Bank has a vast network of thirty-five (35) branches servicing over 500,000 savers and 42,000 borrowers, of whom over 40% are women. Uganda Finance Trust, formerly known as UWFT, became an MDI in 2004 and changed its name to Finance Trust Bank (FTB). In 2013, the bank underwent another transformation and became a commercial bank.

This strategic acquisition gives Access Bank the chance to collaborate with FTB and its stakeholders to create more significant opportunities for financial inclusion, product diversification, and, ultimately, greater devotion to customers. This comes at a time when commercial banks in Uganda are looking to increase their capital. Customers of FTB can take advantage of a strong platform provided by Access Bank's global presence in more than 20 countries to increase trade opportunities with other countries.

Commenting on the Transaction, Roosevelt Ogbonna, Managing Director of Access Bank PLC said, “The prospective acquisition of 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 also moves us closer to realizing 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 impact initiatives, as we will be building on FTB’s mission to effectively deliver innovative financial solutions to customers and stakeholders, especially women. 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.”

Annet Nakawunde Mulindwa, Managing Director of Finance Trust Bank 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,” she added.

Through the acquisition, the two banks will be able to pool their technology resources, giving Finance Trust Bank clients access to a variety of safe and secure digital platforms for easy banking services from Access Bank as well as secure online transaction platforms. Additionally, FTB would be able to take advantage of revenue potential across new customer categories that span across commercial and retail banking by leveraging Access Bank's experience in developing deep sector relevance across many industries.

Access Bank Plc is unwavering in its resolve to propel long-term expansion and generate outstanding returns for its stakeholders. The Bank's steadfast commitment to growing its presence and advancing economic development throughout East Africa is demonstrated by the acquisition of FTB.