Friday, October 7, 2022
Home > Analysis & Opinions > EXCLUSIVE: Uganda’s Largest Banks By Assets Named, Total Industry Assets Hit Shs38 Trillion
Analysis & OpinionsBanking

EXCLUSIVE: Uganda’s Largest Banks By Assets Named, Total Industry Assets Hit Shs38 Trillion

Top bank CEOs in Uganda

A photo montage of some bank CEOs in Uganda

Ten (10) commercial banks operating in Uganda control a commanding 74.91% of the total industry market share for assets, an exclusive analysis by Business Focus has revealed.

It’s worth noting that this website analyzes the performance of commercial banks every year based on their audited financial statements.

In our first article on a series of stories about the performance of banks in 2020, we revealed that there are 25 banks operating in Uganda  including Afriland First Bank Uganda Limited, a new financial institution. This analysis excludes this bank 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.

We also revealed that despite the COVID-19 pandemic on the banking sector and other key sectors of the economy, 19 banks made Shs817.7bn profit in 2020 compared to  17 banks that posted 903.65bn profit in 2019.  Loss-making banks also reduced to five (5) in 2020. The five banks made losses amounting to Shs42.31bn. In comparison,  seven (7) banks made a loss of Shs52.23bn in 2019.

This means that the total industry net profit in 2020 was Shs776.4bn.

In this article article, we focus on assets; who controls what? Who gained more assets in 2020?

Despite the COVID-19 impact on the economy, total banking industry assets grew by 281% to Shs38.17 trillion in 2020, up from Shs32.85 trillion recorded in 2019.

The Top 10

Stanbic Bank remains Uganda’s largest bank by assets.

Headed by  Anne Juuko as Chief Executive Officer, Stanbic’s assets increased by 28.87% to Shs8.57 trillion in 2020, up from Shs6.65 trillion registered a year earlier. The bank has 22.45% market share under the assets category.

Centenary Bank, an indigenous bank giving Stanbic bank sleepless nights maintained its second position. Fabian Kasi, the Managing Director at Centenary has ensured the bank continues to grow year after year. The bank’s assets grew by 26.12% to Shs4.49 trillion in 2010, up from Shs3.56 trillion in 2019, giving it 11.76% industry market share under the assets category.

ALSO READ: ANALYSIS: 19 Banks Post Shs817.7bn Profit In 2020, Loss-Making Institutions Revealed

Standard Chartered Bank aka StanChart climbed to third place after its assets grew by 21.59% to Shs3.83 trillion in 2020, up from Shs3.15 trillion recorded a year earlier. Its market share under this category is 10.03% up from 9.59% in 2019.

 Albert Saltson, the StanChart Chief Executive Officer and Managing Director has come up with innovations aimed at growing the bank. Critically, StanChart’s Non-performing Loans (NPLs) have drastically reduced since Saltson took over from Herman Kasekende a few years ago. Its NPL ratio is 1.81%.

In 4th position is Absa Bank Uganda  with 9.27% market share.

Absa that is headed by Mumba Kalifungwa as Managing Director saw its assets increase to Shs3.54 trillion in 2020, up from Shs3.42 trillion recorded a year earlier.

dfcu Bank retained its 5th position. Headed by Mathias Katamba as Managing Director, dfcu’s assets grew by 19.19% to Shs3.54 trillion in 2020, up from Shs2.97 trillion in 2019. However, its industry market share under assets category grew from 8.98% in 2019 to 9.27% in 2020.

In terms of market share, the top five banks control 53.78% of the total industry assets. However, this is lower than 60.08% in 2019.

Bank of Baroda headed by Raj Kumar Meena as Managing Director is the 6th largest bank by assets in Uganda as of 31st December 2020. Its assets grew by 13.9% to Shs2.13 trillion in 2020, up from Shs1.87 trillion in 2019. Its market share almost remained unchanged at 5.58%.

Equity Bank leapfrogged Diamond Trust Bank (DTB)to the 7th position in as far as largest banks by assets in Uganda are concerned.

Equity that is headed by Samuel Kirubi as Managing Director, saw its assets increase by 27.72% to Shs2.069 trillion in 2020, up from Shs1.62 trillion in 2019. Its market share also increased from 4.93% in 2019 to 5.42% in 2020.

In 8th position is DTB that is headed by Varghese Thambi as CEO.

Its assets increased by 3.09% to Shs1.77 trillion in 2020, up from Shs1.717 trillion in 2019. Its market share under this category stands at 4.64%from 4.93% in 2019.

Housing Finance Bank (HFB) climbed to the 9th position under this category. Headed by Michael Mugabi as  Managing Director, HFB saw its assets hit Shs1.1 trillion in 2020, up from Shs912.2bn recorded a year earlier. Its market share under the assets category is 2.88%.

Citibank Uganda headed by Sarah Arapta as CEO completes the top 10 largest banks by assets in Uganda. Its assets increased slightly to Shs996.3bn in 2020 from Shs990.6bn in 2019. Its market share under the assets category stands at 2.61%.

Just like on profits category, a few banks continue to dominate the market. For example, 10 banks have a commanding 74.91% market share of the total industry assets. This means the other 14 banks share a paltry 25.09%.

In as far as assets are concerned, Stanbic bank alone beats 13 banks combined because its industry market share under assets category is 22.45%.

From this analysis, the only two indigenous banks (Centenary and Housing Finance) are performing well in all key performance parameters/indicators. This is because they are also made it to the top 10 most profitable banks in Uganda. These banks are also headed by indigenous Ugandans.

Others

For the remaining 14 banks, only Bank of Africa  has a market share above 2% under the assets category.

Its market share is 2.31% after its assets increased to Shs880.8bn in 2020, up from Shs803.07bn in 2019.

Six banks have less than 2% market share under assets category; Orient Bank (1.92%), Ecobank (1.76%), KCB (1.72%), NCBA (1.46%), UBA (1.29%) and Exim Bank (1.07%).

Shockingly, seven banks have less than 1% industry market share under the assets category. These include Bank of India (0.87%), Finance Trust Bank (0.85%), Tropical Bank (0.81%), Opportunity (0.64%), Guaranty Trust Bank (0.63%), Cairo Bank Uganda (0.57%) and ABC (0.16).

For further details on Uganda’s largest banks by assets, check the table below.

For tips, advertising or feedback, reach out to us via [email protected]/0775170346/0705888301, follow us @BusinessFocusug, @TaddewoS for further unmatched analysis on Uganda’s banking sector and the economy at large.

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.

Leave a Reply

Your email address will not be published.