Nile Bank Limited

Nile Bank Limited was a private commercial bank in Uganda, operating from 1988 until its acquisition by Barclays Bank in August 2007. Headquartered in Kampala, it provided consumer and commercial banking services, including savings accounts, loans, foreign exchange, and money transfers, notably as a key Western Union agent. With shareholders from Uganda, Israel, and South Africa, Nile Bank was the seventh largest bank in Uganda by 2005, before merging into Barclays Bank (Uganda) Limited, later rebranded as Absa Bank Uganda Limited.

History

Nile Bank Limited was established in 1988, following Uganda’s economic reforms under President Yoweri Museveni, which aimed to rebuild the financial sector after years of instability.

Establishment and early years (1988-2000s)

Nile Bank Limited was established in 1988 during a period when Uganda's banking sector was undergoing reconstruction following years of economic instability. The bank positioned itself to serve both individual and corporate customers in Uganda's growing economy. Founded as a private limited liability company, it targeted affordable banking for individual and corporate clients, with major shareholder Israeli businessman Hezi Bezalel and investors from Uganda and South Africa. By 1992, it operated two branches, expanding to 18 by 2005 across cities like Mbarara, Entebbe, and Jinja. In 1995, Nile Bank won a legal dispute against the National Enterprises Corporation (NEC) over a Shs. 16 million loan default, seizing NEC vehicles, underscoring its active lending operations.

Operations and market position

By the time of its acquisition, Nile Bank had grown to become the seventh largest commercial bank in Uganda with 18 branches and assets worth 38.4 million pounds at the end of 2005.

The bank served approximately 90,000 customers and was notable for achieving ISO certification in January 2003, making it one of the first Ugandan banks to receive this international quality standard recognition.The bank’s Western Union operations and lending activities were key revenue drivers.

In June 2007 Nile Bank was purchased by Barclays bank. Barclays decided to merge the two client-bases and do an IT systems upgrade at the same time.

Banking services

Nile Bank offered a range of services, including savings accounts, personal and business loans, foreign exchange, and money transfers, with a strong focus on retail and commercial banking. Its partnership with Western Union was significant, reportedly handling over 200,000 transactions annually, serving Uganda’s diaspora and domestic clients, though this figure lacks independent verification. By 2005, the bank operated 18 branches, primarily in Kampala, with reported 24-hour banking and automated teller services, though details are limited. Nile Bank served an estimated 90,000 customers, a claim requiring further corroboration.

Acquisition by Barclays (2006-2007)

Acquisition announcement

Barclays Bank announced that it had reached an agreement in principle for the acquisition of Nile Bank, stating it would buy 100% of the share capital from the main shareholder, Israeli businessman Hezi Bezalel. The acquisition was part of Barclays' strategy to strengthen its presence in the East African banking market.

Completion of the deal

The acquisition was completed on November 30, 2007, and was applauded at the time as the biggest deal in Uganda's banking history, showing the level of confidence international banks had in the local market.

Barclays acquired Nile Bank at an estimated cost of 29 billion Ugandan shillings, which increased Barclays' branch network from seven to 25 branches.

Dissolution

Nile Bank Limited ceased to exist as an independent entity following its 2007 merger into Barclays Bank (Uganda) Limited. The acquisition dissolved the Nile Bank brand, with all branches, assets, and customer accounts absorbed into Barclays’ operations, later transitioning to Absa Bank Uganda Limited. No residual corporate structure or independent operations remained post-merger. The first three years after the acquisition completion tested Barclays Bank Uganda significantly, as the bank worked to integrate Nile Bank's operations, customer base, and systems with its existing operations.

Legacy

Following the acquisition, Nile Bank Limited ceased to exist as an independent entity. Its operations, branches, and customer base were integrated into Barclays Bank Uganda. Some former Nile Bank employees continued to work within the enlarged Barclays Uganda operation in various capacities.

When Barclays later sold its African operations to Absa Group, the former Nile Bank operations became part of what is now Absa Bank Uganda Limited.

External links

Nile Bank Limited

See also

* Barclays Bank (Uganda)
* Banking in Uganda
* Economy of Uganda
* List of banks in Uganda
* Absa Bank Uganda Limited
* Banking in Uganda

References

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Defunct banks of Uganda
Banks established in 1988
Banks disestablished in 2007
1988 establishments in Uganda
Banks of Uganda
1988 establishments in Uganda
Banks established in 1988
Banks disestablished in 2007
Barclays