NCBA Bank Tanzania

NCBA Bank Tanzania Limited is a commercial bank operating in Tanzania under the NCBA brand. It is licensed by the Bank of Tanzania, the country’s central bank and banking regulator, and is part of NCBA Group Plc, a Kenya-headquartered financial-services group with operations in several African markets. The Tanzanian institution was created in July 2020, when NIC Bank Tanzania and Commercial Bank of Africa (Tanzania) combined following the wider formation of NCBA Group. The bank’s heritage brings together two different Tanzanian banking businesses. The NIC Bank Tanzania lineage began as a non-bank financial institution in 1994. It received a banking licence in 2004, at which point it operated under the SFCB name. In May 2009, Nairobi-based NIC Bank acquired a 51 percent shareholding in SFCB. The Tanzanian operation subsequently adopted the NIC Bank Tanzania name during 2010. The other predecessor, Commercial Bank of Africa (Tanzania), traced its institutional history to Commercial Bank of Africa, which was established in Dar es Salaam in 1962 before expanding into East Africa and later relocating its headquarters to Nairobi after Tanzania nationalized private banks in 1967. The immediate corporate catalyst for the current brand was the merger of NIC Bank Group and Commercial Bank of Africa. Regulatory approval for that group-level transaction was obtained in September 2019, and NCBA Group Plc became effective on 1 October 2019. After approvals from the relevant Tanzanian banking authorities, the two Tanzanian subsidiaries merged in July 2020 to form NCBA Bank Tanzania. NCBA Bank Tanzania provides commercial-banking services to retail customers, businesses and institutional clients. Its service scope includes retail banking, corporate and business banking, lending, deposits, payments and digital-banking services. The bank’s branch presence has included locations in Dar es Salaam, Arusha, Mwanza and Zanzibar. Listed locations reported in March 2023 included Amani Place, Kijitonyama, PSSSF, Nyerere Road and Kariakoo in Dar es Salaam; Clock Tower in Arusha; Nyanza in Mwanza; and a Zanzibar branch in Mlandege. The institution is positioned as a medium-sized Tanzanian financial-services provider within a regional banking group. As of 31 December 2022, reported total assets were approximately TSh 428 billion and shareholders’ equity was approximately TSh 46.7 billion. At that time, the bank was categorized as a Tier II commercial bank in Tanzania. These figures describe the Tanzanian subsidiary at that reporting date and should not be treated as current financial data without a newer regulatory or company source.

NCBA Bank Tanzania is the result of the consolidation of two Tanzanian banking operations associated with the Kenyan financial-services groups NIC Bank and Commercial Bank of Africa. One predecessor followed the NIC Bank Tanzania path. It began in 1994 as a non-bank financial institution and became a fully licensed commercial bank in 2004 after receiving authorization from the Bank of Tanzania. At that stage it operated under the SFCB name. In May 2009, NIC Bank, a Nairobi-based financial-services company listed on the Nairobi Securities Exchange, acquired a 51 percent interest in SFCB. The Tanzanian operation was rebranded as NIC Bank Tanzania during 2010. The second predecessor originated in Commercial Bank of Africa. That institution was established in Dar es Salaam in 1962 and expanded into other East African markets, including Kenya and Uganda. Following the nationalization of private banks in Tanzania in 1967, the bank moved its headquarters to Nairobi. Its regional history also included the sale of its Ugandan assets after political changes in Uganda in 1971. In 2005, Commercial Bank of Africa acquired a majority interest in First American Bank of Kenya, which had a Tanzanian subsidiary known as United Bank of Africa. The two corporate histories converged through a group-level transaction. In September 2019, the Central Bank of Kenya approved the merger of NIC Bank Group and Commercial Bank of Africa. The resulting NCBA Group Plc became effective on 1 October 2019. The Tanzanian subsidiaries were then combined after receiving the necessary approvals from Tanzanian banking regulators. The local merger took place in July 2020, creating NCBA Bank Tanzania Limited. The merged bank operates as a subsidiary of NCBA Group Plc, whose shares trade on the Nairobi Securities Exchange under the symbol NCBA. In Tanzania, the institution is regulated as a commercial bank by the Bank of Tanzania. Its activities cover retail, business and corporate banking, with services delivered through physical branches and digital channels. The reported branch network in March 2023 extended across Dar es Salaam, Arusha, Mwanza and Zanzibar. The Dar es Salaam locations included Amani Place, Kijitonyama, PSSSF, Nyerere Road and Kariakoo, while other locations included Clock Tower in Arusha, Nyanza in Mwanza and a Zanzibar branch. The bank has been described as a medium-sized provider in Tanzania and as a Tier II commercial bank. Reported figures for 31 December 2022 placed total assets at approximately TSh 428 billion and shareholders’ equity at approximately TSh 46.7 billion. Those figures relate to the stated reporting date and do not establish the bank’s current financial position.

• 2022

  Reported year-end financial position

  [1]NCBA Bank Tanzaniaen.wikipedia.org

  At 31 December 2022, reported total assets were approximately TSh 428 billion and shareholders’ equity approximately TSh 46.7 billion; the bank was categorized as Tier II.

• 2020

  NCBA Bank Tanzania created

  [1]NCBA Bank Tanzaniaen.wikipedia.org

  NIC Bank Tanzania and Commercial Bank of Africa (Tanzania) merged in July 2020 after obtaining approval from the relevant Tanzanian banking regulators.

• 2019

  NCBA Group formed

  [1]NCBA Bank Tanzaniaen.wikipedia.org

  NIC Bank Group and Commercial Bank of Africa combined after regulatory approval, with NCBA Group Plc becoming effective on 1 October 2019.

• 2010

  Tanzanian subsidiary adopts NIC Bank Tanzania name

  [1]NCBA Bank Tanzaniaen.wikipedia.org

  The Tanzanian operation completed its rebranding to NIC Bank Tanzania.

• 2009

  NIC Bank takes majority stake in SFCB

  [1]NCBA Bank Tanzaniaen.wikipedia.org

  NIC Bank acquired a 51 percent shareholding in SFCB in May 2009.

• 2004

  Banking licence granted to the NIC Bank Tanzania predecessor

  [1]NCBA Bank Tanzaniaen.wikipedia.org

  The institution received a Bank of Tanzania licence and converted into a fully fledged commercial bank under the SFCB name.

• 1994

  NIC Bank Tanzania predecessor begins operations as a non-bank institution

  [1]NCBA Bank Tanzaniaen.wikipedia.org

  The institution that later became NIC Bank Tanzania began as a non-bank financial institution in Tanzania.

• 1962

  Commercial Bank of Africa established

  [1]NCBA Bank Tanzaniaen.wikipedia.org

  Commercial Bank of Africa was founded in Dar es Salaam, establishing one of the institutional predecessors of NCBA Bank Tanzania.

A regional-group-backed commercial bank serving retail, business and institutional customers in Tanzania through branch and digital channels.

• Personal financial services

  Retail banking

  The bank’s retail-banking activities serve individual customers through deposit, savings, payment and borrowing services. The available reference material identifies retail banking as a core area, but does not provide a complete current catalogue of named personal accounts, cards or loan products.

• Commercial financial services

  Corporate and business banking

  Corporate and business banking supports companies and institutional customers with commercial financing, deposits, payments and related transaction-banking services. Specific product names, eligibility rules and pricing are not established in the supplied sources.

• Digital financial services

  Digital banking

  Digital banking is part of the bank’s stated service scope and complements its physical branch network. The supplied references do not specify the names, platforms or detailed functionality of the current digital channels.

• 2020

  Merge the two Tanzanian subsidiaries under the NCBA brandM&A

  Background

  The formation of NCBA Group through the combination of NIC Bank Group and Commercial Bank of Africa created the basis for consolidating their operations in Tanzania.

  Action taken

  After obtaining the relevant regulatory approvals in Tanzania, NIC Bank Tanzania and Commercial Bank of Africa (Tanzania) were merged in July 2020 to form NCBA Bank Tanzania.

  Aftermath

  The transaction established the current Tanzanian subsidiary of NCBA Group and unified the predecessor businesses under one local banking brand.

  Source

1. 1NCBA Bank Tanzaniaen.wikipedia.org