Uganda’s commercial banks lent out Shs14.3 trillion in 2019, up from Shs12.8 trillion in 2018, an exclusive analysis done by Business Focus indicates. This shows that Ugandans are increasingly borrowing and the banking sector seem to have recovered from the toxic effects of the 2011 crisis. However, this is going to be impacted by the COVID-19 pandemic.
This analysis is based on 2019 financial results released by banks between March and May 2020. The article excludes Afriland First Bank Uganda Limited because it joined the Ugandan market effective September 12, 2019.
Opportunity Bank Uganda Limited is captured despite becoming a fully fledged bank effective September 13, 2019 because it has been operating in Uganda for many years unlike Afriland.
According to the results, Stanbic bank also leads on this parameter with 20.27% market share. This is after its loans advanced to customers increased to Shs2.9tn in 2019, up from Shs2.5tn in 2018.
Stanbic is currently headed by Anne Juuko, one of the three female CEOs leading a commercial in Uganda.
Like they are neck and neck in many parameters, Stanbic is followed by Centenary bank that is headed by Fabian Kasi as Managing Director.
Centenary’s loans advanced to customers increased to Shs1.73 trillion in 2019, up from Shs1.54 trillion in 2018. Its market share stands at 12.09%.
In third position is dfcu Bank whose loans advanced to customers increased to Shs1.53 trillion in 2019, up from Shs1.39 trillion recorded a year earlier. Headed by Matthias Katamba enjoys 10.69% market share under this category as of 31st December 2019.
It is followed by Absa Bank Uganda that is headed by Mumba Kalifungwa as Managing Director. Its loans advanced to customers increased to 13.68% to Shs1.33 trillion in 2019, up from Shs1.17 trillion recorded a year earlier.
Its market share is 9.3%.
Standard Chartered Bank (StanChart) completes the top five largest banks by loans advanced to customers.
Headed by Albert R. Saltson as CEO, StanChart saw its loans advanced to customers fall to Shs1.27 trillion in 2019, down from Shs1.31 trillion registered a year earlier.
The above five banks control 61.23% market share under this category.
Equity bank that is headed by Samuel Kirubi as Managing Director is increasingly growing into a top bank in Uganda.
Its market share stands at 7.06%. This is after its loans advanced to customers increased to Shs1.01 trillion in 2019, up from Shs699.78bn recorded in 2018.
Bank of Baroda comes 7th after its loans increased to Shs804.26bn in 2019, up from Shs757.18bn in 2018. Its market share is 5.62%.
It is followed by Diamond Trust Bank with 4.07%. This is after its loans increased slightly to Shs582.3bn from Shs534.18bn.
In 9th position is Housing Finance Bank, an indigenous bank headed by Michael K. Mugabi. Its loans advanced to customers increased to Shs553.5bn in 2019, up from Shs511.63bn registered in 2018.
Its market share is 3.87%.
Bank of Africa completes the top 10 largest banks by loans advanced to customers. Its market share stands at 2.78% after its loans increased to Shs397.10bn in 2019, up from Shs344.14bn recorded a year earlier.
The results show that Uganda’s banking sector is dominated by a few banks. For example, under this category, 10 banks control 85.17% of the market share.
Additionally, only 18 banks have a market share that is above 1% (as you can see in our easy to understand table below).
Other banks with a market share above 1% include Orient Bank (2.14%), KCB (1.62%), Exim Bank (1.31%), Tropical Bank (1.26%), Citibank (1.19%), Bank of India (1.17%), Ecobank (1.14%) and Finance Trust Bank (1.08%).
Banks whose market share is below 1% under this category include; Commercial Bank of Africa (0.99%), NC Bank (0.98%), Opportunity Bank (0.76%), Cairo (0.74%), Guaranty Trust Bank (0.58%), UBA (0.29%) and ABC Capital Bank (0.13%).
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