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Wednesday , July 15 2020
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ABSA BANK UGANDA LICENSED BY BANK OF UGANDA

ABSA GROUP AFRICA’S BEST DEVELOPING INVESTMENT BANK GETS LICENCE AS ABSA BANK UGANDA

Welcome to Absa Bank Uganda

Today, Bank of Uganda officially presented a license to Absa Bank Uganda (formerly known as Barclays Bank Uganda) formalizing the institution’s change of name.

Governor Prof. Emmanuel Tumusiime-Mutebile and his Deputy Governor Dr. Louis Kasekende led a team of Bank of Uganda officials at the official handover ceremony while Absa Bank Uganda was represented by the Interim Managing Director Mr. Nazim Mahmood and Absa Bank Executives.

Absa has been granted banking licence to operate in the country after the sell-down by Barclays PLC of its majority shareholding in Barclays Africa Group to a minority position in 2017.

“We would like to reassure our customers and the public that there will be no change in terms of account details and that they can expect nothing but the best in terms of products and services” ~ Nazim Mahmood, Absa Uganda Managing Director

Barclays Africa Uganda ended its banking services in Uganda and was overtaken by Absa

group which was ranked the best developing investment bank. Its finances are now under Absa Uganda and Ugandans should expect good opportunities more jobs, more growth and investments

Absa Group has carried out one of the largest re-branding exercises in Africa in: Kenya, South Africa,Botswana, Ghana, Mauritius, Mozambique, Seychelles, Tanzania, Uganda and  Zambia.

After almost 100 years in Uganda, the Barclays brand has officially disappeared from the Ugandan market on 11 November 2019 and becomes ABSA.

“We would like to reassure our customers and the public that there will be no change in terms of account details and that they can expect nothing but the best in terms of products and services” ~ Nazim Mahmood, Absa Uganda Managing Director

The banking licence has been issued by the governor of Bank of Uganda, Prof Emmanuel Tumusiime Mutebile.

“The Central Bank of Uganda is pleased to confirm that effective today, what was previously known as Barclays Bank Uganda will become Absa Bank Uganda” said the Governor, Central Bank of Uganda.

Absa Uganda Interim Managing Director Mr. Nazim Mahmood flanked by Absa Executives, assured customers that this name change would not affect their current accounts and services offered by Absa Uganda.

“We would like to reassure our customers and the public that there will be no change in terms of  account details and that they can expect nothing but the best in terms of products and services,” Nazim Mahmood, Absa Uganda Managing Director.

In May this year, shareholders of Barclays Africa Group Ltd gave approval for the entity’s name to be changed to Absa Group Limited in July, setting in motion the start of one of the largest rebrand projects in Africa at this time.

As part of the separation agreement, Barclays Africa Group, will cease using the Barclays brand in Africa in 2020.

The bank’s executives said the move is to reclaim the African identity and ‘become a banking group of which Africans can be proud… recognizes African heritage, rooted in Africa, and with global reach.’

The decision follows successful reduction of shares by its majority shareholder – the London-based Barclays PLC –that is exiting the African market subject to regulatory approvals and holding of the shareholders Annual General Meeting scheduled for May, 2018.

BAGL Chief Executive Officer, Maria Ramos, who used the opportunity of the bank’s annual performance announcementto reveal the transition process on March 01, saidthis development comes after an extensive research internally and externally. Ramos said the process included more than 130,000 conversations with employees and stakeholders.

“This is an exciting time for us…the sell-down gave as an opportunity to rollout a brand that reflects our identity in Africa and to unite our operations behind  one name” she said. “We will be Absa, not as you know it, but re-launched, represented and with an identity fit for the new and forward looking business we are creating.”

Listed on the Johannesburg Stock Exchange,BAGL has operations in 12 African countries including Kenya, Uganda, Tanzania, Botswana, Zambia and South Africa, with approximately 40,000 employees. It is one of  Africa’s major financial services provider with a portfolio that includes personal and business banking, credit cards, corporate and investment banking, wealth and investment management.

The rebranding exercise comes two years since the London-based Barclays decided to sell its operations on the African continent.The bank reduced its majority stake from 62.3% to merely 14.9% and will contribute US $1.04bn (£765million) towards the bank’s rebranding agenda.

Ramos said the bank’s priority is to restore leading positions in core business areas while expanding into new markets, enabling the group to deliver double digit growth.

This will include expanding its corporate and investment banking unit to certain international jurisdictions, with offices set to open in London and later in New York, trading as Absa Securities, and offering opportunities for its clients, offshore investors and corporate institutions seeking to invest in Africa.

“Growth has to be an essential part of our DNA, the driver behind our every action and a core facet of our ambition for this business,” she said, adding that the bank’s ambition is to double its market share of African banking revenues to 12% in the coming few years.

This development comesas the BAGL  recorded a 4% increase in headline earnings in 2017 to US$ 1.3bn  (R15.6bn) compared with the previous year despite the continued slow economic expansions in some of the Group’s largest markets, including South Africa, where it generates approx. 80% of its income.

About Goodluck Musinguzi

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