National Bank of Commerce (Uganda)

For other banks called National Bank of Commerce, see National Bank of Commerce.

National Bank of Commerce (Uganda)
Type	Private
Industry	Financial Services
Founded	1991
Headquarters	Yusuf Lule Road, Kampala, Uganda
Key people	Mathew Rukikaire Chairman^[1]
Products	Loans, Checking, Savings, Investments
Total assets	US$20 million (2008)

National Bank of Commerce (Uganda) (NBCU) was a commercial bank in Uganda.

Overview

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.^[2]

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 Community. During the mid-1990s, the Gidoomals, a family of Asian descent and Kenyan 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.^[3] 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.^[4]

Ownership

As of August 2010, the three largest investors in the bank were Nzeyi, 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.^[5] In 2008, there were press reports of a pending merger or sale of the bank, but those plans fell through.^[6] In October 2009, the investors from Abu Dhabi, invested US$10 million in the bank, without assuming ownership.^[7]

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.^[8] 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:

**National Bank of Commerce (Uganda) Ownership**
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

Dispute

There is an ownership dispute among shareholders in the stock of the bank. Minority shareholders have filed a lawsuit challenging the authority of the three largest shareholders. At the same time, the three shareholders are facing legal challenges from the Middle Eastern investors who are dissatisfied with the pace of handover to them as the new majority shareholders. Meanwhile the Bank of Uganda, the national banking regulator^[9] has appointed a special advisor to NBCU, to advise the bank on its affairs during this period of instability within NBCU.^[10] In May 2012, the Ugandan Commercial Court directed the bank to appoint a new board of directors and to proceed with recapitalization, in order to stay solvent.^[11]

Branch network

National Bank of Commerce (Uganda) has its headquarters on Yusuf Lule Road, in Uganda's capital, Kampala. The full list of the bank's networked branches includes the following location:

Yusuf Lule Branch - Yusuf Lule Road, Kampala Main Branch
Parliament Avenue Branch - 13A Parliament Avenue, Kampala
Kabale Branch - 131 Kabale Road, Kabale^[12]

Governance

The bank is governed by a Board of Directors. 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.^[13] 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.^[14]

Revocation of license and dissolution

On 27 September 2012, the Bank of Uganda, the Central Bank and national banking regulator, revoked the banking license of National Bank of Commerce (Uganda). The deposits and branches of NBCU were taken over by Crane Bank, as administrator, on behalf of Bank of Uganda. Immediate steps were initiated to wind up the affairs of NBCU.^[15]

On 27 September, Bank of Uganda revoked the license of the National Bank of Commerce (U) Limited and ordered the winding up of its affairs under Sections 17(f), 89(2)(f) & (7)(c) and 99(1) of the Financial Institutions Act 2004. This is according to, a press statement, dated 28 September 2012, issued by Deputy Governor Bank of Uganda.

On 28 September, the Constitutional Court of Uganda sitting at Kampala issued an interim order Misc application No:38 of 2012 for Constitution petition No 44 of 2012 of Humphrey Nzeyi (Petitioner/Applicant) versus Bank of Uganda and Attorney General (jointly respondents), against the actions of the Bank of Uganda. This order restrains them from implementing the order to wind up the affairs of National Bank of Commerce (U) Ltd until the case is heard.

External links

References

Kampala District

Capital: Kampala

Divisions	Kampala Central Division Kawempe Division Lubaga Division Makindye Division Nakawa Division

Neighborhoods	Banda Bugoloobi Bukoto Busega Butabika Bwaise Ggaba Kabalagala Kamwookya Kansanga Kaleerwe Kanyanya Kasubi Katwe Kawaala Kawempe Kibuli Kibuye Kigoowa Kikaaya Kisaasi Kiwaatule Kulambiro Kololo Kyambogo Kyebando Lubaga Lungujja Luzira Makerere Makindye Mbuya Mengo Mpererwe Mulago Munyonyo Mutundwe Muyenga Naakulabye Naguru Najjanankumbi Nakasero Nakawa Namirembe Namungoona Namuwongo Nateete Ndeeba Nsambya Ntinda Old Kampala Port Bell Wandegeya

Economy	Aya Group Cipla Quality Chemical Industries Limited House of Dawda Group Mukwano Group Ruparelia Group Bank of Uganda ABC Capital Bank Barclays Bank Bank of Africa Bank of Baroda Bank of India (Uganda) DFCU Group Cairo International Bank Centenary Bank Citibank Commercial Bank of Africa Crane Bank DFCU Bank Diamond Trust Bank Ecobank Equity Bank Finance Trust Bank Guaranty Trust Bank Housing Finance Bank Imperial Bank Uganda Kenya Commercial Bank NC Bank Uganda Orient Bank PostBank Uganda Stanbic Bank Standard Chartered Tropical Bank United Bank for Africa East African Development Bank Uganda Development Bank National Housing and Construction Company Tirupati Development Uganda Limited Exodus Sacco International Medical Group Insurance Regulatory Authority of Uganda National Food and Drug Authority National Social Security Fund National Water and Sewerage Corporation Uganda Securities Exchange Uganda Investment Authority Uganda Communications Commission Uganda National Council for Higher Education Uganda Retirement Benefits Regulatory Authority Capital Markets Authority Daily Monitor New Vision New Vision Group Uganda Telecom Mercantile Credit Bank Pride Microfinance Limited Opportunity Uganda Limited Kyagalanyi Coffee Limited FINCA Uganda Limited UGAFODE Microfinance Kiira Motors Corporation

Transport	Air Uganda Uganda Air Cargo Kampala Airport Uganda National Roads Authority Kampala Northern Bypass Highway Entebbe–Kampala Expressway Kampala–Jinja Expressway Kampala–Jinja Highway Entebbe–Kampala Road Kampala–Bombo Expressway Kampala–Busunju Expressway Kampala–Mpigi Expressway Kampala–Masaka Road Kampala–Mityana Road Kampala–Hoima Road Kampala–Gayaza Road Kampala Southern Bypass Highway

Energy	Umeme Electricity Regulatory Authority Uganda National Oil Company Petroleum Authority of Uganda Uganda Electricity Generation Company Limited Uganda Electricity Transmission Company Limited

Notable landmarks	Bulange Uganda Parliament Buildings Kampala Capital City Authority Complex Hotel Africana Kampala Protea Hotel Kampala Serena Hotel Kampala Sheraton Hotel Imperial Hotels Group Imperial Royale Hotel Grand Imperial Hotel Hotel Equatoria Kampala Hilton Hotel Kampala Intercontinental Hotel Kampala Speke Hotel Mapeera House Movement House Munyonyo Commonwealth Resort Speke Resort and Conference Center Church House East African Development Bank Building Bank of Uganda Building Complex Mengo Palace Banda Kabaka's Place Namirembe Cathedral Rubaga Cathedral Makerere University Main Campus Kampala Tower Kibuli Mosque Old Kampala Mosque Uganda Museum Twed Towers Uganda National Cultural Centre Kampala Northern Bypass Highway Kampala–Jinja Highway Kasubi Tombs DFCU House Pension Towers Roman Catholic Archdiocese of Kampala

Education	Aga Khan University, Kampala Cavendish University Uganda Habib Medical School International Health Sciences University International University of East Africa Kampala International School Kampala International University Kampala University Kibuli Secondary School Kitante Hill Secondary School Kololo Senior Secondary School Kyambogo University Law Development Centre Makerere College School Makerere University Makerere University Business School Mengo Senior School Nabisunsa Girls' Secondary School Rubaga Community School St. Augustine International University St. Lawrence University Uganda Management Institute Uganda Martyrs University School of Medicine Uganda National Entrepreneurship Development Institute Uganda Technology and Management University Victoria University Uganda

Health	Aga Khan University Hospital, Kampala Butabika National Referral Hospital Case Medical Centre International Hospital Kampala Kampala Hospital Kawempe General Hospital Kibuli Hospital Kiruddu General Hospital Lubaga Hospital Mengo Hospital Mulago National Referral Hospital Mulago Women's Referral Hospital Nakasero Hospital Naguru General Hospital Nsambya Hospital Paragon Hospital Uganda Cancer Institute Uganda Heart Institute Uganda Medical and Dental Practitioners Council

Notable people	Apolo Nsibambi Nasser Ntege Sebaggala David Serwadda Fred Ruhindi John Ssebaana Kizito Bulaimu Muwanga Kibirige Erias Lukwago Dr. Ian Clarke Jennifer Musisi Professor Josephine Nambooze Maria Kiwanuka Laurence Sematimba Joseph Kizito Justinian Tamusuza Robert Ssejjemba Eugene Sseppuya Phillip Ssozi Sudhir Ruparelia Wasswa Serwanga Yusef Sozi Derrick Sebagala Margaret Zziwa Beti Kamya-Turwomwe Moses Matovu Mohammed Hamid Hasmukh Dawda

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