Listed lender NIC Bank Limited has announced a UGX 10 billion ($3.3 million)capital investment into its Ugandan subsidiary as it seeks to bolster its capital stock and fund its strategic ambitions in the East African country.
The capital infusion into NC Bank Uganda, which is designated as Tier 1 capital, will be used to strengthen the bank’s capital buffer, improve its competitiveness in the market and fund additional investments in strategic initiatives with an eye on long-term returns for the bank’s shareholders.
“This capital injection is in tandem with our long-term strategic plan to grow our Corporate, Retail and SME (Small and Medium Enterprises) customer base across the region,” said NIC Bank Group Managing Director John Gachora.
The investment comes on the heels of NIC Bank’s successful capital-raising project last year, through which it mobilised over KSh12 billion.
“This capital injection strengthens our position to be more competitive in this market, allowing us to make additional investments in strategic initiatives which will ultimately provide more products and convenience for our customers,” said NC Bank Managing Director John Okulo
NC Bank Uganda is a wholly owned subsidiary of NIC Bank Limited which has its headquarters in Nairobi, Kenya and is listed on the Nairobi Securities Exchange (NSE). NC Bank Uganda was incorporated in August 2011 and was issued with a commercial banking license by the Bank of Uganda in February 2012. Over the past two years, NC Bank Uganda has contributed positively to the NIC Bank Group’s profits.