Orient Bank

Orient Bank
Private
Industry Financial Services
Founded 1993
Headquarters Kampala, Uganda
Key people
 Michael Cook
Chairman
Julius Kakeeto
Managing Director[1]
Products Banking
Revenue Increase
Total assets US$173+ million (2014)
Website Homepage

Orient Bank is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the central bank and national banking regulator.[2]

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 2014, Orient Bank was the 13th largest commercial bank in Uganda, with an estimated asset valuation of about US$173 million and customer deposits of about US$173 million.[3]

History

The bank was founded in 1993 by a group of businesspeople who were related by blood and marriage.[4] 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 beat out other financial institutions when they acquired Trans-Africa Bank Limited, which had been declared insolvent by the Bank of Uganda (BOU).[5]

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.[6] 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owned by the Federal Government of Nigeria, which took over the assets of Bank PHB, when its banking license was revoked by the Central Bank of Nigeria in August 2011. In July 2014, International media reports indicated that Keystone Bank planned to divest from Orient Bank.[8] In February 2015, Keystone Bank divested from Orient Bank by selling 42% shareholding to a private equity firm 8 Miles Fund, whose shareholders include celebrity entertainer and activist Bob Geldof, and the remaining 38% was sold to the three founders of the bank; namely (a) Ketan Morjaria (b) Rajni Karia and (c) Jay Karia. The shareholding in Orient Bank is depicted in the table below:[9][10][11]

Orient Bank Stock Ownership
Rank Name of OwnerPercentage Ownership
18 Miles Fund42.0
2Ketan Mojaria49.0[3]
3Minority Shareholders9.0
Total100.0

Governance

Orient Bank is governed by a seven-person Board of Directors of whom two are Executive Directors and five are non-Executive. Michael Cook, one of the non-Executive Directors, is the Chairman. Julius Kakeeto is the Ag. Managing Director/CEO.[12] He has nineteen other managers who assist him in running the bank.

Branch Network

As of March 2015, Orient Bank has a network of branches in the central, eastern and northern parts of Uganda. The bank has plans to expand services to the western parts of Uganda in the future. The branches of the bank include the following locations, arranged alphabetically:[13]

  1. Acacia Mall Branch - Acacia Shopping Mall, Kololo, Kampala.
  2. Arua Branch - 12 Avenue Road, Arua
  3. Bweyale Branch - Bweyale, Kiryandongo District
  4. Entebbe Airport Branch - Entebbe International Airport
  5. Entebbe Downtown Branch - 29 Kampala Road, Entebbe
  6. Garden City Branch - Garden City Mall, Kampala[14]
  7. Gulu Branch - 15 Lamho Building, Awere Road, Market Square, Gulu
  8. Jinja Branch 1 - 1 Busoga Square, Jinja
  9. Jinja Branch 2 - 8 Scindia Road, Jinja
  10. Kabalagala Branch - Kabalagala, Kampala[15]
  11. Katwe Branch - Muganzirwazza Shopping Mall, Muteesa I Road, Katwe, Kampala[16]
  12. Kawempe Branch - Bombo Road, Kawempe, Kampala
  13. Kikuubo Branch - Kikuubo, Kampala
  14. Kisekka Branch - Kisekka Market, Kyaggwe Road, Kampala
  15. Kololo Branch - Nyonyi Gardens, 16/17 Wampeewo Avenue, Kololo, Kampala
  16. Main Branch - Orient Plaza, 6/6A Kampala Road, Kampala
  17. Makerere Branch - Ham Plaza, Makerere Hill Road, Makerere, Kampala
  18. Mbale Branch - 23 Naboa Road, Mbale
  19. Nkrumah Road Branch - Nkrumah Road, Kampala
  20. Ntinda Branch - Capital Shoppers Mall, Ntinda Road, Ntinda
  21. William Street Branch - William Street, Kampala.

See also

References

  1. ↑ Okoth, Cecilia (26 September 2014). "Vision Group, Orient Bank To Save Mothers". New Vision (Kampala). Retrieved 27 December 2014.
  2. ↑ "List of Licensed Commercial Banks In Uganda, As of July 2011" (PDF). Bank of Uganda. Retrieved 1 May 2014.
  3. ↑ 3.0 3.1 Special Correspondent, . (7 March 2015). "Nigeria’s Keystone Bank Sells Stake In Orient, Exits Uganda". The EastAfrican (Nairobi). Retrieved 7 March 2015.
  4. ↑ Wakabi, Michael (6 December 2010). "Orient Bank Shareholders Take URA To Court". The EastAfrican. Retrieved 1 May 2014.
  5. ↑ "The History Of Orient Bank". Orient Bank. Retrieved 1 May 2014.
  6. ↑ Juuko, Sylvia (23 April 2009). "Orient Bank Changing Shareholders". New Vision (Kampala). Retrieved 7 March 2015.
  7. ↑ Kingsley Ighomwenghian, Lucy Eazee (5 August 2011). "Nigeria: CBN Revokes Afribank, Bank PHB, Spring Bank Licences". Daily Independent (Lagos). Retrieved 1 May 2014.
  8. ↑ Onu, Emele (24 July 2014). "Nigeria’s Keystone Bank To Sell Units In Three African Countries". Bloomberg News. Retrieved 27 December 2014.
  9. ↑ Muhumuza, Mark Keith (26 February 2015). "Orient Bank Sold To Private Equity Firm". Daily Monitor (Kampala). Retrieved 26 February 2015.
  10. ↑ Biryabarema, Elias (24 February 2015). "Bob Geldof's 8 Miles Fund Buys Stake In Ugandan Bank". Reuters. Retrieved 26 February 2015.
  11. ↑ Muhumuza, Mark Keith (27 February 2015). "Orient Bank Founders Bounce Back To Revive Institution". Daily Monitor (Kampala). Retrieved 27 February 2015.
  12. ↑ "New Orient Bank Boss Confident". East African Business Week via AllAfrica.com. 27 April 2014. Retrieved 1 May 2014.
  13. ↑ "List of Branches of Orient Bank". Orient Bank. Retrieved 6 June 2014.
  14. ↑ Newvision, Archive (25 April 2010). "Orient Opens Garden City Branch". New Vision. Retrieved 1 May 2014.
  15. ↑ "Orient Starts e-Tax Service As Kabalagala Branch Opens". New Vision. 6 June 2010. Retrieved 1 May 2014.
  16. ↑ "Muganzirwazza Commercial Plaza". Construction Review Online. Retrieved 1 May 2014.

External links