African Bank is pleased to announce that it is the successful bidder to acquire the majority of Ubank’s disclosed assets and liabilities and to take over its employees on a going concern basis upon closing of the proposed transaction.
Ubank is a well-established financial services provider with a strong presence in some mining and rural communities.
Ubank has continued to operate in the normal course of business, despite being placed in conservatorship on May 16, 2022. African Bank will not acquire the Ubank legal entity, and all residual assets and liabilities will remain with its legal entity.
The proposed transaction aligns with African Bank’s Excelerate25 strategy of creating a scalable, diversified and sustainable banking business with a compelling listing proposal, true to its founding philosophy of being “a bank for the people, by the people, in the service of the people”.
African Bank Chairman and CEO Kennedy Bungane said, “Ubank’s strong retail deposits, transactional accounts and partnership with MTN’s Mobile Money will accelerate African’s diversification and scale. Bank in line with our mission to build a customer-centric, digital and data-centric approach. -a business that is diverse, scalable and sustainable. »
A meeting of minds
Ubank’s market position in the mining sector and distribution footprint complements African Bank’s existing national offering and will provide Ubank customers with immediate access to African Bank’s national distribution footprint.
Ubank customers will be migrated to African Bank’s MyWorld product, which offers a higher degree of customization, lower fees and more competitive value.
In its latest half-year results, African Bank’s net profit after tax rose 145% to R372 million. In May this year, African Bank acquired 100% of Grindrod Bank in a deal worth R1.5 billion, giving African Bank an existing corporate and SME customer base.
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