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EXCLUSIVE: Uganda’s Biggest Lenders Named, Extend Loans Worth Shs19 Trillion To Customers In 2022

A photomontage of bank Chief Executive Officers and Managing Directors

Commercial banks extended loans to customers totaling Shs19.1 trillion in 2022, up from Shs17.14 trillion recorded in 2021, Business Focus exclusively reports.

This represents a growth of 324.99%.

It’s important to note that commercial banks are required by law to publish their financial statements/results for the previous year (which ends every 31st December) in a national newspaper before May of the following year.

This website has exclusively compiled and analyzed the audited financial statements of all the 25 banks for the year ended 31st December 2022 so as to help customers, partners and stakeholders of these financial institutions to know how their banks performed and help them make informed decisions.

This analysis is also important for students with a bias in banking finance as well as policy makers.

In this article, the focus is on loans, another key performance indicator/parameter for banks. Who are the largest and smallest banks by loans in Uganda?

Largest banks by loans

Like on most key performance indicators, Stanbic Bank Uganda Ltd (SBUL) maintained its number one position as Uganda’s largest bank by loans/lending.  Headed by Anne Juuko as Chief Executive, Stanbic Bank’s loans advanced to customers grew by 9.81% to Shs4.085 trillion in 2022, up from Shs3.72 trillion recorded a year earlier.

This gives the lender a commanding market share of 21.4% under the loans category.

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Centenary Bank sits second on the table of largest banks by loans.  The largest indigenous bank that is headed by Fabian Kasi as Managing Director saw its loans increase by 25.17% to Shs2.81 trillion in 2022, up from Shs2.24 trillion recorded a year earlier. Its market share under this category is 14.72%.

In 3rd position is Equity Bank whose loans advanced to customers grew by 5.57% to Shs1.63 trillion in 2022, up from Shs1.54 trillion in 2021. Headed by Anthony Kituuka as Managing Director, Equity bank’s market share under the loans category is 8.54%.

Absa Bank Uganda sits 4th on the table of banks with largest loans after it lent out Shs1.56trillion in 2022, up from Shs1.31 trillion recorded in 2021.

Headed by Headed by Mumba Kalifungwa as Managing Director, Absa’s market share under the loans category is 8.21%.

It is followed by dfcu Bank in 5th position. Dfcu bank that recently appointed Charles M Mudiwa, a Zimbabwean national, as its substantive Managing Director, saw its loans advanced to customers  decline to Shs1.36 trillion in 2022, down from Shs1.51 trillion in 2021. Its market share under this category is 7.13%.

The top five biggest lenders have a combined market share of 60% under the loans category, leaving 20 banks to share the remaining 40%.

In sixth position is Standard Chartered Bank whose loans advanced to customers remained flat in 2022 at Shs1.22 trillion.

Headed by Sanjay Rughani as Managing Director, StanChart as it’s commonly known, hasn’t had a stable CEO in recent years. The bank’s market share under the loans category is 6.39%.

It is followed by Bank of Baroda in seventh position. This is after its loans lent out to customers increased by 15.59% to Shs1.089 trillion in 2022, up from Shs942.09bn in 2021. Its market share under this category is 5.71%.

Bank of Baroda’s 2022 performance was delivered by Kumar Meena, who resigned as the Managing Director of the bank effective 15th March 2023. He has since been replaced with Shashi Dhar as MD.

Diamond Trust Bank (DTB) Uganda sits eight on the table. DTB’s market share under this category is 4.15%. Headed by  Varghese Thambi as Managing Director, the bank lent out Shs791.26bn in 2022, up from Shs683.4bn in 2021.

In ninth position is Housing Finance  Bank. The indigenous bank  that is headed by Michael Mugabi as Managing Director, saw its loans advanced to customers grow by 15.36% to Shs777.9bn in 2022, up from Shs674.3bn in 2021. Its market share under this category is 4.08%.

KCB Bank that is headed by Edgar Byamah as Managing Director completes the top 10 banks by loans advanced to customers. This is after its loans increased by 65.09% to Shs603.72bn in 2022, up from Shs365.7bn in 2021. Its market share under this category is 3.16%.

According to the analysis of key performance indicators, Uganda’s banking sector is dominated by 10 banks. It’s therefore not surprising that 10 banks have a combined market share of 83.49% under the loans category, leaving 15 banks to share a paltry 16.51%.

In fact, Stanbic bank’s market share of 21.4% under the loans category beats over 15 banks combined.

Check the table below for more details about the largest and smallest banks by loans;

Loans-2022

Others

There’s no bank above the 10th position that lent out over Shs500bn. Eight (08) banks have less than 1% market share under the loans category.

PostBank that is is headed by Julius Kakeeto as CEO/MD, occupies the 11th position. This is after its loans advanced to customers increased by 5.42% to Shs479.52bn in 2022, up from Shs454.86bn in 2021.

Its market share under this category is 2.51%. It’s followed by Bank of Africa in 12th position. The bank lent out Shs468.17bn in 2022, up from Shs410bn in 2021, giving it a market share of 2.45% under the loans category.

Citibank Uganda is 13th after it lent out Shs417.67bn in 2022, up from Shs409.92bn in 2021. Its market share under this category is 2.19%. It’s followed by Finance Trust Bank, I&M Bank, NCBA and Exim Bank after they lent out  Shs265.3bn, Shs234.07bn,  Shs210.61bn and Shs190.4bn respectively.

Smallest Banks By Loans

Eight (08) banks lent out less than Shs190bn each. They have a combined market share of 3.89% under the loans category. This means the 9th largest bank by loans (Housing Finance Bank) whose market share is 4.08% beats the eight banks in question.

Uganda’s smallest banks by loans include ABC Capital Bank (0.11%), Guaranty Trust Bank (0.38%), UBA (0.46), Tropical Bank (0.62%), Cairo Bank (0.66%), Opportunity Bank (0.68%), Ecobank (0.76%) and Bank of India (0.98%).

Check the table below for more details  about largest and smallest banks by loans;

Loans-2022

We’ll continue giving you unmatched analysis about the performance of banks in 2022 and beyond. For tips, opinions and advertising, Tel: 0775170346/0703828741/staddewo@gmail.com. Follow us on Twitter: @TaddewoS @BusinessFocusug

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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