The 2018 financial results of Centenary Rural Development Bank Ltd commonly referred to as Centenary Bank will leave a smile on its shareholders after the bank posted impressive results again.
According to the bank’s financial statements for the year ended 31st December 2018, Uganda’s biggest indigenous bank recorded Shs107.63bn net profit after tax in 2018, up from Shs100.27bn recorded a year earlier.
This represents a growth of 7.34%.
Consequently, the bank has proposed dividends of Shs27bn from Shs25.18bn.
Centenary Bank that is headed by Fabian Kasi (in featured photo) as Managing Director saw its net interest income increase by 12.0% to Shs371.6bn in 2018 from Shs331.9bn the previous year.
Additionally, total operating income increased by 11% to reach 568.2bn up from Shs511.9bn the previous year mainly driven by growth in interest on loans and advances to customers and increase in fee based income.
The bank continues to grow its assets.
In 2018, Centenary’s total assets grew by 91.48% to Shs3.17 trillion from 2.7 trillion a year earlier.
The bank’s loans and advances to customers increased to Shs1.53 trillion up from 1.33 trillion in 2017.
Customer deposits also increased to Shs2.28 trillion from 1.91 trillion reported a year earlier.
On a further positive note, Non-Performing Loans (NPLs) reduced to Shs39.8bn from 62.23bn in 2017. This means that the ratio of NPLs reduced to3.67% from 4.5%. Bad loans written off also reduced slightly to Shs17.8bn from 18bn.
However, total expenditure increased by 11.9% to Shs419.3bn from Shs374.6bn mainly attributed to “the bank’s heavy investment in technology and improvements in staff welfare.”