KAMPALA-UGANDA: Centenary Bank in Uganda bagged shs. 38.4 billion between the years 2021 and 2022, a financial statement released by the bank’s Chief Executive Officer, Fabian Kasi, has revealed.
According to the financials released on April 23, 2023, the bank had a remarkable year in 2022, as reflected in their financial results; and despite facing a challenging operating environment due to external factors such as the Ebola outbreak and the Russia-Ukraine war, Centenary Bank was able to maintain stellar performance.
In the report seen by this newsdesk, the key highlights of the bank’s performance in 2022 show that;
One: Profit after tax increased by 18.0% from UGX 211.5 Billion in 2021 to UGX 249.6 Billion in December 2022.
Two: Total income grew by 11.4% from UGX 864 Billion in 2021 to UGX 962 Billion in 2022, primarily due to an increase in loans and advances to customers, as well as investments in money markets.
Three: Total assets closed at UGX 5,721.5 Billion in 2022, showing a growth of 20.3% or UGX 963.8 Billion from UGX 4,757.7 Billion in 2021, mainly due to a significant increase in customer deposits.
Four: Gross loans closed at UGX 2,815.0 Billion in 2022, recording a growth of 25.4% or UGX 569.4 Billion from UGX 2,245.6 Billion in 2021. This increase in loans was largely driven by customer demand for loans to invest in business capital.
Five: Deposits closed at UGX 3,904.0 Billion in 2022, recording a growth of 22.7% or UGX 722.7 Billion Year-to-Date (YTD) in December 2022.
“The increase in deposits was primarily due to investments in technology such as mobile banking and Agent banking platforms, which provided convenient services to customers,” says Mr. Fabia Kasi, the Bank’s Chief Executive Officer.
Accordingly, 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.
“This improvement was attributed to the Government’s decision to fully open the economy in Quarter one of 2022, which revived economic activities previously affected by COVID-19, as well as closer loan monitoring methods implemented by the bank’s credit field staff,” he told this newsdesk.
Overall, the bank’s financial performance in 2022 showed substantial growth in profits, deposits, gross loans, and total assets, despite challenges in the economy.
This growth was attributed to various factors, including the bank’s strategy implementation, customer patronage, investments in technology and innovation, good governance practices, and support from stakeholders such as employees, partners, and the community.
The reputable audit firm KPMG gave the bank a clean bill of health but cautioned on a few areas that were communicated to the bank’s board.
Accordingly, KPMG says in their Independent Auditor’s Report that the summary financial statements are consistent, in all material respects, with the audited financial statements of the bank for the same period, in accordance with the Financial Institutions Act 2004 (As amended 2016) Laws of Uganda and the Financial Institutions (External Auditors) Regulations, 2010.
The report also mentions that the audited financial statements for the year ending December 31, 2022, received an unmodified audit opinion in a report dated April 24, 2023, which also includes communication of key audit matters.
Background:
Centenary Rural Development Bank Limited, commonly known as Centenary Bank, is a commercial bank in Uganda, which was established in 1983 as a credit institution to serve the rural communities in Uganda.
It will celebrate its 40th year this year.
Centenary Bank operates in Uganda and is one of the largest banks in the country in terms of branches and customer base. The bank’s primary focus is on providing financial services to individuals, micro, small, and medium-sized enterprises (MSMEs), and the agricultural sector, with a special emphasis on rural areas.
Centenary Bank has over 75 branches and more than 200 ATMs across Uganda, serving millions of customers.
Centenary Bank also underwent a cultural transformation in 2022, drawing inspiration from the eagle and its lifestyle. They embraced the acronym E.A.G.L.E P.O.I.S.E, which represented their values of being Excellent, Accountable, Great in Execution, Leading by Example, Equal Opportunity Players, Professional, working as One Team with one goal, upholding Integrity, delivering Superior Customer Service, and practicing Environmental Stewardship. With these principles, Centenary Bank’s team performed excellently and made significant contributions to their achievements in 2022, making sustainable banking a reality.
Centenary Bank’s story is one of resilience, innovation, and commitment to its customers, community, and the environment.
Despite the challenges they faced, they remained focused on their core values and leveraged their expertise to overcome obstacles and achieve outstanding results.
Their transformation into an eagle-like organization with a strong cultural foundation propelled them toward success in 2022, inspiring others in the banking industry and beyond.
Coming up next.. What explains the bank’s growth in loans, deposits, and decline in Non Performing Loans?