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How Stanbic, Dfcu & 3 Others Control Uganda’s Banking Sector

Uganda has 24 operating banks but the market is dominated by a few banks, a thing that could adversely hurt the economy in case one of them collapsed.

Stanbic, dfcu, Centenary, Standard Chartered (StanChart) and Barclays control over 60% of the industry market share, according to an analysis carried out by Business Focus.

According to the 2017 financial results, these banks dominate all key parameters including profitability, assets, customer deposits and loans advanced to customers. They have been dominant for the last five years.

Profit

All the 24 banks made a net profit of Shs768.66bn in 2017, up from Shs676.56bn in 2016, representing 55.48% growth.

However, of the Shs768.66bn, Stanbic, dfcu, Centenary, StanChart and Barclays share a controlling Shs593.06bn, leaving the other 19 banks to share a paltry Shs175.6bn.

In terms of industry profit market share, Stanbic leads with 26.02%. It is followed by dfcu (16.60%), Centenary (13.04%), StanChart (12.12%) and Barclays (9.37%).

This means that the five banks control 77.15% of the total industry profit market share, leaving the rest to share 22.85%.

Assets

In 2017, total industry assets increased to Shs26.545 trillion, up from Shs22.510 trillion in 2016. Of the Shs26.545 trillion, Stanbic contributed Shs5.4 trillion. The bank holds 20.34% of the total industry assets market share.  Other banks with huge assets include dfcu (Shs3 trillion), StanChart (Shs2.8 trillion), Centenary (Shs2.7 trillion) and Barclays (Shs2.47 trillion).

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In total, the five banks contributed Shs16.37 trillion to the total industry assets. This means that the other 19 banks share the remaining Shs10.175 trillion.

In terms of market share, the five banks control 61.66% of the total industry assets market share.

Loans To Customers

Total industry loans advanced to customers increased to Shs11.331 trillion in 2017, up from Shs10.036 trillion in 2016.

Under this category, Stanbic leads with Shs2.2 trillion. It is followed by Centenary (Shs1.3 trillion), dfcu Bank (Shs1.3 trillion), StanChart (Shs1.22 trillion) and Barclays (Shs1 trillion).

This implies that of Shs11.331 trillion advanced to customers in 2017, the five banks advanced Shs7.02 trillion, leaving the other banks to share Shs4.311 trillion.

The five banks have a controlling 61.94% of the total industry loans market share.

Customer Deposits

Total industry customer deposits increased to Shs18.122 trillion in 2017, up from Shs15.527 trillion in 2016.

Uganda’s largest banks by customer deposits as of December 2017 include Stanbic (Shs3.6 trillion), dfcu (Shs1.98 trillion), StanChart (Shs1.9 trillion), Centenary Bank (Shs1.9 trillion) and Barclays (Shs1.68 trillion).

The five banks contributed Shs11.06 trillion to the total industry deposits of Shs18.122 trillion.

Under this category, the five banks control 61.03% of the total industry customer deposits.

 

 

Taddewo William Senyonyi
https://www.facebook.com/senyonyi.taddewo
William is a seasoned business and finance journalist. He is also an agripreneur and a coffee enthusiast.

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