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Suggest pagesOrient Bank
| Type | Private |
|---|---|
| Industry | Financial Services |
| Founded | 1993 |
| Headquarters | Kampala, Uganda |
| Key people | Michael Cook Chairman Maxwell Ibeanusi Managing Director |
| Products | Banking |
| Revenue |  Aftertax:US$8.1 million (UGX:20.1 billion) (2011)1 |
| Total assets | US$176 million (UGX:435+ billion) (2011) |
| Website | Homepage |
Orient Bank is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.2
Contents |
Overview
The bank is involved in all aspects of commercial banking with emphasis on provision of banking services to non-government organisations (NGOs) and their staffs. As of December 2011[update], Orient Bank was the 9th largest commercial bank in Uganda, with an estimated asset valuation of US$176 million (UGX:435+ billion),3representing approximately 3% of all bank assets in the country.4
History
The bank was founded in 1993 by a group of businesspeople who were related by blood and marriage.5 In 1996, the bank ventured into the city of Jinja, about one hour's drive east of the capital Kampala, and opened their second branch there. In 2002, the bank successfully beat out other financial institutions when they successfully acquired Trans-Africa Bank Limited, which had been declared insolvent by the Bank of Uganda (BOU).6
Following a spate of Ugandan bank failures in the 1990s and early 2000s, the banking laws in Uganda were changed to bar family members from jointly owning more than 49% in the same financial institution. Orient Bank was given a grace period to find a suitable investor. In 2009, Bank PHB Group, a Nigerian financial services group acquired 80% shareholding in Orient Bank for a cash payment of US$63.2 million.
In August 2011, Bank PHB was itself declared insolvent by the Central Bank of Nigeria (CBN), and its assets and some liabilities were acquired by Keystone Bank Limited (KBL).7
Ownership
In April 2009, Bank PHB Group, then a Nigerian financial services conglomerate, acquired 80% shareholding in Orient Bank for a reported sum of US$63.3 million. That shareholding is now owned by Keystone Bank Limited, the financial institution, owned by the Federal Government of Nigeria, which took over the assets of Bank PHB, when its banking license was revoked by the Central Bank of Nigeria in August 2011.
The other shareholders in Orient Bank include members of the family that founded the bank in 1993, who today, jointly control 17% of shareholding in the bank. 89 The shareholding in Orient Bank is depicted in the table below:
