Absa Bank Uganda’s parent company, Absa Group Limited has announced the substantial completion of the critical projects on its separation journey.
Following Barclays PLC’s decision to sell down its controlling stake in Barclays Africa Group Limited in 2016 the bank was permitted to continue using the Barclays brand during the June 2017 to June 2020 transition period.
The banking group marked the end of this component of the separation journey on June, 5 2020 with the official name change to Absa in Uganda in November 2019 and across all Absa Group subsidiaries on the continent earlier this year.
“As a unified African brand, we have never been more ready to become a self-sufficient bank of the future,” said Mumba Kalifungwa, the Managing Director for Absa Bank Uganda.
“We are now able to own and control our processes and infrastructure, upgrading systems and propositions that better serve our customers in Uganda. What’s more, the initiatives undertaken have fundamentally improved Absa’s resilience and capabilities, benefiting both employees and customers alike.”
The Absa Regional Operations Chief Executive Peter Matlare described the moment a great milestone for the bank.
“This critical milestone, which was delivered on time and on budget, is so much more than just a name change. We now have an opportunity to create and sustain valuable partnerships that allow us, and our stakeholders, to thrive,”Matlare said.
“However, considering recent events and the prevailing economic environment, as a near-term focus, our strategy has been adjusted to ensure we also prioritise capital preservation and remain liquid. Re-branding under Absa in 12 African countries has united us under a single brand, identity, purpose and strategy.”
He said that going forward, the bank will continue to execute on its growth strategy; enhancing operational efficiencies and pushing digital boundaries.
“As a modern, future-forward African banking group, a key pillar in our strategy is finding scalable solutions and platforms that continue to meet the evolving needs of our customers. As the accelerated use of technology continues, investing in digital banking services will remain a key priority for us as a business.”
The Absa bank Uganda Managing Director, Mumba Kalifungwa said they will continue playing an integral part in the country’s economic development strategy.
“We will continue to drive relevant initiatives and partner in crucial growth sectors. We can now build on the ambitious strategy that we’ve created, and enhance our ability to lead the sector. We believe that this can be achieved by offering service and a truly African experience.”
In April, the bank announced a 19.4% growth in revenue to shs 405 billion, up from shs339 billion in the 2019 results released.
The bank that last year rebranded from Barclays indicated that its net profits jumped from shs68 billion shs78 billion with a return on equity of 16.9%.