A photo montage of top bank CEOs in Uganda
Commercial banks in Uganda overcame the disruptions caused by COVID-19 to the banking sector and major sectors of the economy to post positive results in 2020.
An exclusive analysis of financial statements for the year ended 31st December 2020 published by banks in April 2021 as required by law shows that customer deposits increased by 240% to Shs26.4 trillion in 2020, up from Shs24.26 trillion recorded in 2019.
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This analysis considers 24 banks as it leaves out Afriland First Bank Uganda Limited because it didn’t release its financial results considering the fact that it’s new. It’s also important to note that during the year under review, Commercial Bank of Africa merged with NC Bank to form NCBA.
Giants
Like on other parameters analyzed earlier, Stanbic Bank that is headed by Anne Juuko as Chief Executive Officer leads on this category.
Stanbic’s customer deposits increased by 16.31% to Shs5.49 trillion in 2020, up from Shs4.72 trillion recorded a year earlier. This gives the bank a commanding industry market share of 20.77% under customer deposits category.
Stanbic and Centenary Bank are neck and neck on most key performance indicators analyzed.
Centenary Bank’s customer deposits increased by 23.95% to Shs3.13 trillion in 2020, up from Shs2.53 trillion in 2019.
With a market share of 11.86%, Centenary is the second largest bank by customer deposits. Centenary is headed by Fabian Kasi as Managing Director, a position he has maintained for over a decade. Under his leadership, the largely Catholic owned bank has enjoyed stellar performance.
In third place is Standard Chartered Bank aka StanChart whose customer deposits decreased to Shs2.71 trillion in 2020, down from Shs3.15 trillion posted a year earlier.
Headed by Albert Saltson as CEO, StanChart’s market share under customer deposits category is 10.25%.
dfcu Bank that is headed by Mathias Katamba as Managing Director comes 4th after its deposits increased to Shs2.59 trillion in 2020, up from Shs2.04 trillion in 2019. This represents a growth of 26.96%. It has 9.8% industry market share under customer deposits category.
It is followed by Absa Bank Uganda whose customer deposits increased from Shs2.18 trillion in 2019 to Shs2.35 trillion in 2020. Headed by Mumba Kalifungwa as Managing Director, Absa Bank’s customers form 8.89% of the total industry market share.
Shockingly, the top five banks control 61.57% of the industry market share under the customer deposits category.
In 6th place is Equity Bank that is increasingly eating into the market for the traditional big boys. Equity bank which is headed by Samuel Kirubi as Managing Director saw its customer deposits increase by 30.65% to Shs1.62 trillion in 2020, up from Shs1.24 trillion in 2019.
Its market share under this category is 6.13%.
It is closely followed by Bank of Baroda which is headed by Raj Kumar Meena as Managing Director. The bank’s customer deposits increased by 9.79% to Shs1.57 trillion in 2020, up from Shs1.43 trillion in 2019. Its market share under this category is 5.94%.
In 8th position of banks with largest customer deposits is Diamond Trust Bank. Its customer deposits reduced to Shs1.28 trillion in 2020, down from Shs1.32 trillion in 2019. Its industry market share under customer deposits category is 4.84%.
Citibank, headed by Sarah Arapta as CEO, consistently makes it among the top 10 banks in Uganda in all key performance parameters analyzed.
It occupies the 9th position when it comes to banks with huge customer deposits. Its customer increased from Shs656.75bn in 2019 to Shs672.92bn in 2020. This gives the bank a market share of 2.55% under this category.
Housing Finance Bank completes the top 10 leading banks by customer deposits.
Headed by Michael Mugabi as Managing Director, Housing Finance Bank’s customer deposits increased by 16.86% to Shs654.16bn in 2020, up from Shs559.8bn recorded a year earlier.
This gives the bank a market share of 2.47% under this category.
This analysis further shows that Uganda’s banking industry is nominated by a few banks.
Based on the above analysis, 10 banks control 83.5% of the industry market share under customer deposits category. This means the remaining 14 banks share paltry 16.5% of the industry market share under this category.
This further means that Stanbic’s customer deposits exceed those held by 14 banks by about 5%.
Besides the top 10 as highlighted above, only Bank of Africa and Orient Bank have a market share above 2%.
Bank of Africa’s customer deposits increased by 6.73% to Shs617.55bn in 2020, up from Shs578.6bn in 2019. Its market share is 2.34%.
In 12th position is Orient Bank whose customer deposits reduced to Shs605.5bn in 2020, from Shs673.6bn in 2019. Its market share is 2.29%.
Banks With Small Customer Deposits
Twelve (12) banks have a market share below 2%. These include
Ecobank (1.92%), KCB (1.69%), NCBA (1.4%), UBA (1.28%), Exim Bank (1.2%), Bank of India (0.83%), Tropical Bank (0.80%), Finance Trust Bank (0.77%), Guaranty Trust Bank (0.72%), Opportunity bank (0.62%), Cairo Bank Uganda (0.57%) and ABC Capital Bank (0.09%).
For further details on Uganda’s banks with biggest and smallest customer deposits, check the table below.
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