The merger of NC Bank and Commercial Bank of Africa (CBA) will create a bank with an asset base of Shs548b.
In a notice seen by Daily Monitor and signed by the two banks, it was revealed that the merger, which has now been given a greenlight by Bank of Uganda, paves way for creation of a formidable bank with an asset base of Shs548b as of March 31.
“BoU has issued a letter of no objection to the proposed business [merger] of NC Bank and Commercial Bank of Africa,” the notice signed by Mr Sam Ntulume, the NC Bank managing director and Mr Anthony Ndegwa, the CBA chief executive officer, reads in part.
The merger, according to Mr Ntulume, will ensure a seamless transition into NCBA by the end of September.
Talks of the merger stemmed from a process in Kenya from which the parent companies of the two banks announced a merger in 2018, which has already led to the creation of NCBA Group in Kenya.
The banks, the notice said, will soon announce the new brand, “... which will be a reflection of the two banks best values, noting that they were now at the final leg of becoming one bank.,
The merger is expected to give the two banks an edge that is likely to build a relatively large financial base.
NC Bank recovered from a Shs4.3b loss for the period ended December 2018 to post Shs3b in profits in 2019 while CBA made a loss of Shs10.4b in 2019 from a Shs567m profit in 2018.
NC Bank is a subsidiary of the National Industrial Credit Bank (NIC).