KAMPALA, Uganda- April 29, 2023: Centenary Bank in Uganda has posted startling results to the tune of Shs. 38 billion in the financial year 2021/22. This publication went underground to find out why, and here below are twelve reasons:-
One- Strong Corporate Governance: Centenary Bank is governed by a robust corporate governance framework, which includes a well-structured board of directors, effective risk management systems, and adherence to regulatory and compliance requirements. This ensures transparency, accountability, and sound management practices, which contribute to the bank’s stability and success.
Two- Social Impact: Centenary Bank has a strong commitment to social responsibility and community development. The bank engages in various corporate social responsibility (CSR) initiatives, including financial literacy programs, support for education and health, and environmental conservation projects, which contribute to the bank’s positive impact on society and its reputation.
Three- Strong Brand and Reputation: Centenary Bank has established a strong brand and reputation in Uganda as a reliable and trustworthy financial institution. The bank has won numerous awards for its financial performance, customer service, and corporate social responsibility, which further enhance its reputation in the market.
Four: Centenary Bank prioritized sustainability and embraced an Environmental, Social, and Governance (ESG) approach in their operations.
This combined their Corporate Social Responsibility, Social Performance Management, and Environmental Social Performance efforts to contribute to 9 out of the 17 United Nations Sustainable Development Goals (SDGs).
Five: Centenary Bank has supported over 2,800 people in the community with solar loans, micro-scale irrigation products, power connection loans, and biodiversity conservation farming techniques, in collaboration with partners.
The bank has improved the accessibility and usability of its services by enhancing its digital offerings.
Six: Centenary Bank engaged with unreached segments such as microfinance customers, small and medium enterprises (SMEs), and agriculture, including women, youth, and refugees.
Seven– New Solutions: The bank introduced two new solutions in 2022 – the Smart Life Account, which encourages saving and investing for development and retirement, and revolving stock financing, which supports suppliers, particularly in the fast-moving consumer goods sector, with short-term revolving credit facilities to meet their intermittent supply needs and distribution targets.
Eight– Customer-Centric Approach: Centenary Bank places a strong emphasis on understanding and meeting the needs of its customers. The bank strives to provide excellent customer service, and its products and services are designed to be affordable, accessible, and convenient for its diverse customer base. Centenary Bank also invests in technology and digital channels to enhance customer experience and convenience.
Nine- Financial Inclusion: Centenary Bank is committed to promoting financial inclusion and reaching out to underserved populations, particularly in rural areas. The bank has designed and implemented various innovative products and services tailored to the needs of rural communities and MSMEs, such as agricultural loans, savings products, and mobile banking solutions, which have helped to expand access to formal financial services.
Ten- Diversified Product Portfolio: Centenary Bank offers a wide range of banking products and services, including savings and current accounts, loans, trade finance, treasury services, and insurance, catering to the diverse financial needs of its customers. This diversified product portfolio allows the bank to serve a wide customer base and generate multiple revenue streams.
Eleven: Centenary Bank offered various innovative products and services tailored to the needs of rural communities and MSMEs.
Twelve: Centenary Bank placed a strong emphasis on understanding and meeting the needs of its customers. Courted technology and digital channels to enhance customer experience and convenience helped it offer a wide range of banking products and services.
The Ripple Effect:
Financial Performance: The bank recorded substantial growth in 2022 in profits, deposits, gross loans, and total assets despite challenges in the economy. Highlights of the bank’s financial performance in 2022 include:
Profit after tax increased by UGX 249.6 Billion, a growth of 18.0% compared to 2021. Total income grew by 11.4% due to an increase in loans and advances to customers and investments in money markets.
Assets increased by UGX 963.8 Billion, or 20.3%, mainly due to significant growth in customer deposits. Gross loans increased by UGX 569.4 Billion, or 25.4%, primarily due to increased demand for loans from customers to invest in business capital.
Deposits increased by UGX 722.7 Billion, or 22.7%, largely due to investments in technology such as mobile banking and agent banking platforms.
The asset quality of loans improved, with the ratio of Non-Performing Loans (NPL) decreasing to 3.40% in 2022 compared to 5.16% in 2021, attributed to the government’s decision to fully open the economy and improved loan monitoring methods.
Awards: The bank received several awards in 2022, including Best Retail Bank in Uganda, Best Financial Institution supporting SMEs in Africa, Excellence in Integrated Reporting, Digital Brand of the Year, and various awards for banking innovation, corporate governance, and community initiatives.