Banque Du Caire (BDC), has successfully completed the full recapitalization of Cairo Bank Uganda in accordance with the revised capital buffers set by the Bank of Uganda, according to CEO East Africa.
Cairo Bank Uganda Ltd, which is wholly owned by Banque Du Caire, had been classified as one of the undercapitalized banks in Uganda following the revision of capital requirements by the Bank of Uganda. However, as of June 2023, Cairo Bank Uganda Ltd was confirmed to be in compliance with the minimum capital requirements, thanks to a capital injection from its shareholder, Banque Du Caire.
While the exact amount infused by Banque Du Caire was not disclosed, Cairo Bank’s share capital stood at UGX 93.8 billion by the end of 2022, falling short of the required UGX 150 billion by June 2024. Therefore, the recapitalization would have covered the deficit of UGX 56.2 billion or more.
Banque Du Caire, rated as the fifth-largest bank in Egypt by total assets, boasts a substantial customer base of over three million customers and assets totaling USD 12.3 billion as of September 2023, according to Fitch Ratings.
Sylvia Jagwe Owachi, Executive Director of Cairo Bank, expressed optimism about the bank’s future prospects following the recapitalization, highlighting plans to invest in innovative products and enhance shareholder value. She cited the bank’s commitment to digitalization and support for SMEs as key focus areas for growth.
Cairo Bank Uganda Limited, formerly known as Cairo International Bank, was established in Uganda in 1994 and became a fully owned subsidiary of Banque Du Caire in 2019. Under its new brand promise, “Growing with you,” the bank aims to strengthen its position in the market and expand its offerings to better serve its customers.
The recapitalization comes in the wake of Uganda’s decision to increase commercial bank minimum capital requirements by 500%, with the Financial Institutions (Revision of Minimum Capital Requirements) Instrument 2022 signed into law in November 2022. This move aimed to enhance the stability and resilience of the banking sector in Uganda by ensuring that banks maintain adequate capital buffers to withstand economic shocks.
