Equity Bank Uganda engages media on 2022 financials

KAMPALA -Equity Bank Uganda on Monday held a media engagement in Kampala to discuss the financial performance of 2022, the Africa Recovery and Resilience Plan and its achievements so far, as well as the social impact of its business in the country.

While commenting on the bank’s financial performance in Kampala, Anthony M. Kituuka, the Managing Director said customer deposits rose by 21 percent to Shs 2.8 trillion in 2022 from Shs 2.3trn recorded in 2021, as customer numbers increased by 32 percent to 1,613 from 1,222.

The bank’s total assets were up by 20 percent to Shs 3.4 trillion in the year under review from Shs 2.8trn accumulated in the year before.

“We are pleased to report another year of continued growth in key areas,” said Kituuka, adding that the overall performance of the bank demonstrates resilience in the face of economic contraction and other associated challenges experienced in the country post covid-19.

According to Kituuka, the continued focus on operational efficiency and strategic growth initiatives have enabled the lender to deliver positive results for the bank’s shareholders and stakeholders.

“I am fully confident that the foundations we set in 2022, will help us to deliver on our strategic priorities and further strengthen our financial performance,” he added.

The financial highlights of the bank for the year ending December 2022, include loans which went up by 6 percent to Shs 1.6trn compared to Shs 1.5trn traded in 2021.

The bank’s cash and balances with the Bank of Uganda, which regulates the banking industry in the country, increased to Shs 558.4bln in 2022 compared to Shs 353.3bln retained in 2021, as bad and doubtful debts rose to Shs 90.7bln in 2022 from Shs 25.7bln in 2021.

However, as the bank’s agents increased by 39 percent to 7,7000 in 2022, from 5,572 in 2021, its profit before tax dropped by 52 percent to Shs 56.4bln from Shs 118.2bln.

“With our significant investments in technology, prudent cost and risk controls as well as robust systems, we are on the right track to even perform better in 2023,” he said.

He said Equity Bank Uganda is committed to maintaining a strong financial position and will continue to pursue growth opportunities while remaining focused on delivering value to its customers and shareholders, not that the lender is ranked as the fifth systemically important bank in the country.

He said the bank has continued to invest in key areas of the business such as product development and expansion into new markets. The investments, he said, have helped to drive growth and position the bank for continued success in the future.

However, he said in 2022, adopted the twin-engine model to fund social and economic projects in Uganda including agriculture where small-scale farmers got credit of Shs 70.3bln, manufacturing, trade, energy and environment, education, health, oil & gas.

Kituuka was happy that Equity Bank Uganda in 2022 stepped its social impact investments aimed at transforming lives and livelihoods of especially the youth and women, with credit support worth Shs 21bln. “The bank placed an intentional focus on rural women, offering unsecured credit with the aim to provide women at the bottom of the economic ladder with access to affordable capital,” he said.

He said the bank in 2022 continued equipping women with business skills, mentoring and exposing them to business networks, and equipping them with the tools they need to succeed in business.

Further, the bank in 2022 availed loans worth Shs 129.9mln to 42 village saving and loan associations [VSLAs] in refugee settlement, a bold move aimed at giving refugees financial independence.

Under the African Recovery and Resilience Plan launched post-covid-19, Equity Group continues to make available US$ 6bln to 5mln SMEs and 25mln individual borrowers for the next five years.

According to bank officials, the plans conceives that the 5mln businesses largely comprising medium and small enterprise [MSMEs] will create 50mln jobs, 25mln jobs directly while a similar number will be created indirectly.

https://thecooperator.news/equity-bank-starts-disbursing-funds-to-pdm-saccos/

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