KAMPALA– Finance Trust Bank has released a summary of financial statements for the year ended December 31, 2021, showing its profit before tax curve going up by 61.9 percent to about Shs 13.6 billion from about Shs 8.4bln raised in 2020.
According to the summary of financial statements, the bank in 2021 advanced loans worth about Shs 243 bln from about Shs 203bln, representing a growth of 19 percentage points.
The bank was purposely established to help women access cheap loans for production.
The bank, during the period under review, realised a 21 percent growth in total assets of about Shs 394bln from about Shs 325bln in 2020.
Net profit rose 57 percent to about Shs 9.16bln from about Shs 5.8 bln in 2020.
The lender’s Managing Director Annet Nakaunde Mulindwa said the growth in assets was a result of the growth in loans advanced in 2021.
However, customer deposits declined in 2021 to bout Shs183.4 bln from about Shs 203.4bln deposited in 2020.
“Whereas the last quarter of the year was filled with a lot of optimism following the pending reopening which led to erosion of the bank’s deposit mobilization potential…the bank registered a drop of 10 percent on customer deposits book,” Nakaunde said.
Non-performing loans increased to about Shs 20.3bln in 2021 from about Shs 10.8bln in 2020 as the bank saw bad debts written off amount to about Shs 2.7bln in the period under review from about Shs 2.5bln in 2020.
Meanwhile, the bank recorded total equity of about Shs 61bln in 2021 from about Shs 52bln in 2020.
The bank’s directors have proposed dividends of about Shs 1.8bln in 2021 compared to about Shs 1bln proposed in 2020.
The growth in the loan book during the last quarter of 2021 gives Nakaunde optimism that all the bank’s business lines will improve performance and that the bank will continue to deliver tailored services to meet customers’ demands.
The bank in 2021 focused on women, SACCOs, and Village Savings and Loans Associations [VSLAs], which saw women customers, access the bank’s services, a big leap into ensuring financial inclusion for women.
https://thecooperator.news/absa-bank-uganda-profit-after-tax-up-by-169-percent/
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