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Exclusive: Uganda’s Top 10 Lenders Revealed

Commercial banks play a big role in the economic development of a country-for they offer the much needed credit to not only the private sector, but also government.

In this article, Business Focus brings Uganda’s leading banks in as far as lending is concerned. These figures are derived from financial results for 2016 released in recent months.

Overall, Uganda’s 24 banks advanced loans to customers worth Shs9.96trn in 2016, up from Shs9.53trn in 2015.  Loans advanced to customers didn’t grow remarkably largely due to the wobbly economy and high Non-Performing Loans (NPLs) that saw banks increasingly becoming cautious.

Total industry NPLs (excluding Stanbic) increased to Shs557.8bn in 2016, up from Shs515.6bn in 2015.

Stanbic Bank which is headed by Patrick Mweheire as Managing Director leads the chart of top lenders, having advanced loans to customers worth Shs1.97trn in 2016, slightly up from Shs1.91trn in 2015.

This represents an increase of 3.14%. it also controls 19.76% industry market share.

Fabian Kasi’s Centenary Bank comes 2nd with loans advanced to customers in 2016 amounting to Shs1.24trn, up from Shs1.02trn in 2015. This represents a growth of 21.57% and 12.44% industry market share.

Although its loans advanced to customers reduced by 7.69%, Standard Chartered Bank headed by Albert Saltson as CEO occupies the 3rd spot in as far as Uganda’s largest banks by loans is concerned. Its loans to customers were Shs1.2trn in 2016, down from Shs1.3trn in 2015. The bank’s cautiousness to lending is largely due to high NPLs it has registered in recent years.

It tops banks with largest NPLs, having recorded Shs112.1bn in 2016, slightly down from Shs113.9bn in 2015. This accounts for 19.9% industry market share.

Dfcu headed by Juma Kisaame comes 4th, having advanced loans to customers worth Shs842.4bn in 2016, up from Shs806.4bn in 2015. This represents an increase of 4.46%.

Barclays completes the top five banks with largest loans advanced to customers. It lent out its customers Shs821.5bn in 2016, up from Shs776.7bn in 2015.

It’s worth noting that the top five banks control 60.93% of the industry market share.

Diamond Trust Bank occupies the 6th place. Its loans to customers reduced to Shs765.5bn in 2016, down from Shs809.16bn in 2015.

Bank of Baroda that sits in the 7th place also saw its loans to customers reduce to Shs584.16bn in 2016, down from Shs608.73bn in 2015.

In 8th position is Housing Finance Bank. Its loans to customers were Shs401.4bn in 2016, up from Shs367.8bn in 2015.

It is followed by Equity Bank that lent out Shs318.9bn in 2016, up from Shs239.5bn in 2015.

Bank of Africa completes the top 10 banks in as far as lending is concerned. Its loans to customers in 2016 were Shs293.28bn, slightly up from Shs264.66bn in 2015.

Shockingly, out of the 24 banks currently operating in Uganda, the above top 10 banks control 84.64% of the total industry market share when it comes to loans advanced to customers.

In our easy to interpret table, read more about how other banks fared in loans advanced to customers.

 

 

 

 

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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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