National Bank of Commerce (Uganda)
Encyclopedia
National Bank of Commerce (Uganda) (NBCU) is a commercial bank
in Uganda
. The bank provides banking services to individuals and to small and medium business enterprises. As of April 2009, the bank was the 22nd largest commercial bank in Uganda with an estimated asset valuation of approximately US$20 million or slightly more than 0.25% of all bank assets in the country.
. During the mid 1990s, the Gidoomals, a family of Asian descent and Kenya
n citizenship acquired 86% shareholding in the bank. In April 2008, the Gidoomal brothers sold their shares to Amos Nzeyi
, Amama Mbabazi
and Ruhakana Rugunda
. The three, together with former Ugandan Finance Minister, Ezra Suruma
, are shareholders and Directors of the bank. In July 2011, Emirates Link, an Abu Dhabi
investment company, acquired shareholding in NBCU. Ugandan media reports indicated the bank will begin offering Islamic banking
later in 2011.
, Mbabazi
and Rugunda
. The three owned 86% of the bank between them. The remaining 14% was owned by 320 other investors who included Ezra Suruma
, Jim Muhwezi
and retired Supreme Court Justice George Wilson Kanyeihamba
. In 2008, there were press reports of a pending merger or sale of the bank, but those plans fell through. In October 2009, the investors from Abu Dhabi
, invested US$10 million in the bank, without assuming ownership.
In July 2011, the Bank of Uganda
approved the purchase of up to 49% of the stock of the bank by the Abu Dhabi
investment company Emirates Link, owned by Ahmed Darwish Almarar, who became Chairman of NBCU. The remaining shareholding is still being worked out at this time. In October 2011, following the cash injection of Shs12 billion (approx.US$4.5 million) by the Middle-Eastern investors, shareholding in the bank is now as depicted in the table below:
{| style="font-size:100%;"
|-
| width="80%" align="center" | National Bank of Commerce (Uganda) Ownership
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" |Rank !!Name of Owner!!Percentage Ownership
|-
|1||Emirates Link of Abu Dhabi
||25.00
|-
|2||Amos Nzeyi
||
|-
|3||Amama Mbabazi
||
|-
|4||Ruhakana Rugunda
||
|-
|5||260+ Other Investors||
|-
| ||Total||100.0
|-
|}
. The bank maintains a second branch in the town of Kabale
in southwestern Uganda
. In October 2009, Amos Nzeyi
stepped down from the post of Chairman of the Board, a post he had held since 1992. Ahmed Dagher then served as chairman from October 2009 until July 2011. Ahmed Darwish Almarar, one of the non-Executive Directors, is the Chairman of the Board
, effective July 2011. In October 2011, Ugandan media reported that Mathew Rukikaire was the Chairman of NBCU at that time.
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
. The bank provides banking services to individuals and to small and medium business enterprises. As of April 2009, the bank was the 22nd largest commercial bank in Uganda with an estimated asset valuation of approximately US$20 million or slightly more than 0.25% of all bank assets in the country.
History
The bank was formed in 1991, and was named Kigezi Bank of Commerce, with a mission to provide banking services and inexpensive loans to the Kigezi CommunityKigezi
Kigezi District once covered what are now Kabale District, Kanungu District, Kisoro District and Rukungiri District, in southwest Uganda. Its terraced fields are what gives this part of Uganda its distinctive character. Kigezi was popularly known as the Switzerland of East Africa...
. During the mid 1990s, the Gidoomals, a family of Asian descent and Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
n citizenship acquired 86% shareholding in the bank. In April 2008, the Gidoomal brothers sold their shares to Amos Nzeyi
Amos Nzeyi
Amos Nzeyi is a Ugandan businessman, entrepreneur and industrialist. He is one of the wealthiest people in Uganda.-Business Interests:Amos Nzeyi owns the following business either wholly or in part:...
, Amama Mbabazi
Amama Mbabazi
Patrick Amama Mbabazi is a senior Ugandan lawyer and politician. He is the current Prime Minister of Uganda, a position he has held since 24 May 2011. Prior to his current position, he served as the Minister for Security in the Ugandan Cabinet, from February 2009 until May 2011...
and Ruhakana Rugunda
Ruhakana Rugunda
Ruhakana Rugunda is the current Minister of Information & Communication Technology in the Ugandan Cabinet. He was appointed to that position on 27 May 2011. He replaced Aggrey Awori, who was dropped from the Cabinet...
. The three, together with former Ugandan Finance Minister, Ezra Suruma
Ezra Suruma
Dr. Ezra Suruma is a Ugandan economist and banker. He is a Visiting Fellow at the Brookings Institute, in Washington, DC, at the Africa Growth Initiative division of the Institute. He was appointed to that position in April 2010...
, are shareholders and Directors of the bank. In July 2011, Emirates Link, an Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
investment company, acquired shareholding in NBCU. Ugandan media reports indicated the bank will begin offering Islamic banking
Islamic banking
Islamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...
later in 2011.
Ownership
As of August 2010, the three largest investors in the bank were NzeyiAmos Nzeyi
Amos Nzeyi is a Ugandan businessman, entrepreneur and industrialist. He is one of the wealthiest people in Uganda.-Business Interests:Amos Nzeyi owns the following business either wholly or in part:...
, Mbabazi
Amama Mbabazi
Patrick Amama Mbabazi is a senior Ugandan lawyer and politician. He is the current Prime Minister of Uganda, a position he has held since 24 May 2011. Prior to his current position, he served as the Minister for Security in the Ugandan Cabinet, from February 2009 until May 2011...
and Rugunda
Ruhakana Rugunda
Ruhakana Rugunda is the current Minister of Information & Communication Technology in the Ugandan Cabinet. He was appointed to that position on 27 May 2011. He replaced Aggrey Awori, who was dropped from the Cabinet...
. The three owned 86% of the bank between them. The remaining 14% was owned by 320 other investors who included Ezra Suruma
Ezra Suruma
Dr. Ezra Suruma is a Ugandan economist and banker. He is a Visiting Fellow at the Brookings Institute, in Washington, DC, at the Africa Growth Initiative division of the Institute. He was appointed to that position in April 2010...
, Jim Muhwezi
Jim Muhwezi
Major General Jim Muhwezi Katugugu is a Ugandan lawyer, politician and retired military officer. He is the current elected Member of Parliament representing "Rujumbura County", Rukungiri District.-Education:...
and retired Supreme Court Justice George Wilson Kanyeihamba
George Wilson Kanyeihamba
George Wilson Kanyeihamba is a Ugandan judge. He is a retired Justice of the Supreme Court of Uganda.-References:...
. In 2008, there were press reports of a pending merger or sale of the bank, but those plans fell through. In October 2009, the investors from Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
, invested US$10 million in the bank, without assuming ownership.
In July 2011, the Bank of Uganda
Bank of Uganda
The Bank of Uganda is the Central Bank of the Republic of Uganda. Established in 1966, by Act of Parliament, BOU is 100% owned by the Government of Uganda, but is not a government department.-Organization and Governance:...
approved the purchase of up to 49% of the stock of the bank by the Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
investment company Emirates Link, owned by Ahmed Darwish Almarar, who became Chairman of NBCU. The remaining shareholding is still being worked out at this time. In October 2011, following the cash injection of Shs12 billion (approx.US$4.5 million) by the Middle-Eastern investors, shareholding in the bank is now as depicted in the table below:
{| style="font-size:100%;"
|-
| width="80%" align="center" | National Bank of Commerce (Uganda) Ownership
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" |Rank !!Name of Owner!!Percentage Ownership
|-
|1||Emirates Link of Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...
||25.00
|-
|2||Amos Nzeyi
Amos Nzeyi
Amos Nzeyi is a Ugandan businessman, entrepreneur and industrialist. He is one of the wealthiest people in Uganda.-Business Interests:Amos Nzeyi owns the following business either wholly or in part:...
||
|-
|3||Amama Mbabazi
Amama Mbabazi
Patrick Amama Mbabazi is a senior Ugandan lawyer and politician. He is the current Prime Minister of Uganda, a position he has held since 24 May 2011. Prior to his current position, he served as the Minister for Security in the Ugandan Cabinet, from February 2009 until May 2011...
||
|-
|4||Ruhakana Rugunda
Ruhakana Rugunda
Ruhakana Rugunda is the current Minister of Information & Communication Technology in the Ugandan Cabinet. He was appointed to that position on 27 May 2011. He replaced Aggrey Awori, who was dropped from the Cabinet...
||
|-
|5||260+ Other Investors||
|-
| ||Total||100.0
|-
|}
Branch network
National Bank of Commerce (Uganda) has its headquarters on Parliament Avenue, in Uganda's capital city, KampalaKampala
Kampala is the largest city and capital of Uganda. The city is divided into five boroughs that oversee local planning: Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division and Lubaga Division. The city is coterminous with Kampala District.-History: of Buganda, had chosen...
. The bank maintains a second branch in the town of Kabale
Kabale
Kabale is a city in Western Uganda. It is the 'chief town' of Kabale District and the district headquarters are located there. The district is named after the town.-Location:...
in southwestern Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
Directors
The bank is governed by a Board of DirectorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
. In October 2009, Amos Nzeyi
Amos Nzeyi
Amos Nzeyi is a Ugandan businessman, entrepreneur and industrialist. He is one of the wealthiest people in Uganda.-Business Interests:Amos Nzeyi owns the following business either wholly or in part:...
stepped down from the post of Chairman of the Board, a post he had held since 1992. Ahmed Dagher then served as chairman from October 2009 until July 2011. Ahmed Darwish Almarar, one of the non-Executive Directors, is the Chairman of the Board
Chairman of the Board
The Chairman of the Board is a seat of office in an organization, especially of corporations.Chairman of the Board may also refer to:*Chairman of the Board , a 1998 film*Chairmen of the Board , a 1970s American soul music group...
, effective July 2011. In October 2011, Ugandan media reported that Mathew Rukikaire was the Chairman of NBCU at that time.
See also
- List of banks in Uganda
- Banking in UgandaBanking in Uganda-The early years:Prior to Uganda’s independence in 1962, Government-owned institutions dominated most banking in Uganda. In 1966 the Bank of Uganda, which controlled the issue of currency and managed foreign exchange reserves, became the Central Bank. Uganda Commercial Bank, which had fifty...
- Proposed Merger with International Investment House
- Islamic Banking in Uganda