Stanbic Uganda completes corporate reorganization
Stanbic Bank Uganda has successfully completed the reorganisation of the company marking a significant milestone for the brand in Uganda.
Stanbic Bank Holdings Limited going forward will now be referred to as ‘Stanbic Uganda Holdings Limited’ following registration and receipt of approval from Bank of Uganda and Capital Markets Authority. The banking business has been undertaken by the banking subsidiary ‘Stanbic Bank Uganda Limited’
The Stanbic counter is now open for trading after a 1 week voluntary suspension, which was to allow for completion of the reorganization process. Counters are now open for trade under the new name ‘Stanbic Uganda Holdings Limited’.
Speaking during the announcement of the new company structure at the Uganda Securities Exchange (USE ) offices, Mr Japheth Katto, the Chairman Stanbic Uganda Holdings Limited said, “The holding structure through the creation of new business subsidiaries will deliver several benefits that will enhance our customer value proposition, increase the returns for our shareholders and deliver on our promise to create a better tomorrow for Uganda,”
He emphasized the ultimate objective of the reorganization was to move from the current legal and operating structure where SBU was a public company listed on the USE that provides banking services directly to customers, to a group structure that comprises a holding company now listed on USE and several subsidiaries, including the Banking Subsidiary.
In 2018 Stanbic Bank obtained shareholder approval to reorganize its corporate structure to include a holding company, all of which was subject to regulatory approval which has since been obtained.
“The reorganization will now allow SBU to fulfill its vision of being the leading financial services organization, by allowing it to conduct other financial services in addition to banking. Stanbic Bank Uganda (SBU) is currently regulated by Bank of Uganda under the provisions of the Financial Institutions Act (FIA). Under the provisions of the FIA, the Company is permitted and restricted to undertaking financial institutions business as defined under the FIA.” Mr Katto added.
The reorganization will enable the addition of universal financial services to SBU’s service offering of non-banking financial services for the benefit of both SBU customers and other users of financial services who are not SBU customers. These non-banking financial services include but are not limited to; stock brokerage services, insurance brokerage services and fund management.
Through the new structure under the holding company, there will be flexibility to engage in financial technology (fin-tech) partnerships including a software subsidiary thus providing better risk management with increased visibility and control of the fin-tech partnership whilst facilitating greater innovations for the benefit of SBU’s customers and the larger banking industry.
SBU is further looking to own its head office and would look to finance and hold these premises in a separate subsidiary under the holding company.
Following the successful completion of the reorganisation process, Mr Paul Bwiso the Chief Executive officer of USE said, “The trading of the company’s securities on the Uganda Securities Exchange will resume today Wednesday April 10th 2019 under ‘Stanbic Uganda Holding Limited’ and the new company structure. We believe this new structure will bring greater shareholder value to the investors.”
For further information go to www.stanbicbank.co.ug.