Post Bank posts 15.8 percent growth in gross profit

KAMPALA – As Post Bank continues to celebrate the milestone of getting a Tier One License from Bank of Uganda [BoU] to operate as a fully-fledged commercial bank, latest financial statistics show the bank is a profitable venture.

According to the bank’s audited financial results for the year ended December 31, 2021, gross profit rose by 15.8 percent to about Shs17.6 billion from about Shs 15.2bln earned in the previous year by the 100 percent government-owned financial institution.

The bank’s loans disbursed to clients in 2021 rose by 36 percent to Shs about 455bln from about Shs 334.7bln advanced to borrowers in 2020.

Whereas customers’ deposits in 2021 grew by 13 percent to about Shs 507 bln compared to about Shs 449bln banked with the lender in 2020.

The bank’ profit after taxes rose 22 percent to Shs12.2bln in 2021 from about Shs10bln earned in 2020.

“Despite the headwinds, the Bank registered growth across parameters,” Julius Kakeeto, the Bank’s CEO said while commenting on the financials, adding that his bank in 2021 continued with its strategy of revamping and widening its distribution channels to enable access to its services and products.

However, during the period under review, Post Bank wrote of bad debts worth about Shs 6.6bln compared to about Shs 4.6bln foregone in 2020.

Non-performing loans [NPLs] rose to about Shs 30.4bln in 2021 from about Shs 12 bln in 2020. Kakeeto attributed the rise in NPLs to the impact of Covid-19.

“The micro lending business was adversely affected by the inability of groups to meet during the lockdowns while the small and medium enterprises were struggling with subdued sales,” Kakeeto said, while being optimistic that the bank’s customers will recover following the various credit relief measures that it offered in line with BoU directives.

The Bank’s total assets stood at about Shs 745bln in the period under review compared to about Shs 674.6bln accumulated in 2020.

Equity Bank Uganda delivers impressive results in 2021

Meanwhile, business for Equity Bank Uganda was good in 2021 as the lender saw its profit before tax rise 47 percent to about Shs 118.2bln from Shs 80.5bln retrieved in 2020.

Customers’ deposits were on the upward trend in 2021 as they increased by 41 percent to about Shs 2.3 trillion from about Shs 1.6 trn saved in the previous year.

Yet loans expanded by 22 percent in 2021 to about Shs 1.5trn from about Shs 1.3trn in 2020.

“Despite the pandemic that limited access to markets, over 70 SACCOs in banana and dairy farming were aided to join the value chain in western Uganda. We also placed special focus on female borrowers, “says Managing Director Samuel M. Kirubi.

The bank’assets in 2021 posted a growth of 36 percent to about Shs 2.9trn from about Shs 2.07trn in 2020.

The curve for NPLs in 2021 shows the bank did away with about Shs78.8 bln, higher than about Shs 49.3 bln in 2020.

The bank wrote off bad debts of about Shs 10.3bln in 2021 compared to about Shs 4.6bln.

Local banks and other financial institutions continue to report their financials as required by BoU, the industry regulator.

https://thecooperator.news/stanbic-bank-profit-up-12-percent/

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