A photo montage of some bank CEOs
Commercial banks extended loans worth Shs17.17 trillion in 2021, up from Shs16.19 trillion in 2020, Business Focus exclusively reports.
It’s worth noting 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 explains why banks have in the last one month been releasing/publishing their audited financial statements for the year ended 31st December 2021.
This website has exclusively compiled and analyzed the results so as to help customers, partners and stakeholders of these financial institutions to know how their banks performed, but also help them make informed decisions.
This analysis is also important for students with a bias in banking and finance as well as policy makers.
There are 26 banks operating in Uganda. In our first article about the performance of banks in 2021, we revealed how 18 banks made a record net profit of Shs1.081 trillion in 2021, up from Shs817.85bn profit posted by 20 banks in 2020. This is the highest ever profit recorded by banks in Uganda’s banking industry.
Meanwhile, eight (8) banks made a net loss of Shs79.82bn in 2021 compared to Shs60.63bn loss made by six banks in 2020.
In our second second article, we revealed that total industry assets for banks increased to Shs41.39 trillion in 2021, up from Shs38.8 trillion recorded in 2020.
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This particular article focuses on loans advanced to customers, another key performance parameter for any financial institution. This analysis also shows that Uganda’s banking industry is dominated by a few banks.
For example, five banks have an industry market share of 60.22% under the loans category.
Additionally, the top 10 banks under the loans category control a commanding industry market share of 83.36%, leaving the rest of the banks (16) to share a paltry 16.64%.
Biggest Lenders
Like the other key performance parameters, Stanbic Bank Uganda Ltd (SBUL) tops this category.
Under the stewardship of Anne Juuko as Chief Executive, Stanbic’s loans advanced to customers grew by 3.05% to Shs3.72 trillion in 2021, up from Shs3.61 trillion recorded the previous year.
This gives the bank an industry market share of 21.65% under the loans category.
Stanbic alone beats a combined 17 banks when it comes to loans extended to customers.
It is followed by Centenary Bank that is managed by Fabian Kasi as Managing Director. Centenary, an indigenous bank continues to give Stanbic sleepless nights as the bank continues to grow stronger in all key areas.
Centenary Bank loans to customers grew by 16.41% to Shs2.27 trillion in 2021, up from Shs1.95 trillion recorded a year earlier. Its market share under the loans category is 13.21%.
Equity Bank has moved to the third position after its loans grew by 22.22% to Shs1.54 trillion in 2021, up from Shs1.26 trillion in 2020. This gives the bank headed by Samuel Kirubi as Managing Director an industry market share of 8.96% under the loans category.
It is closely followed by dfcu Bank that is headed by Mathias Katamba as Managing Director. The bank’s market share under the loans category is 8.79%. This is after its loans reduced to Shs1.51 trillion in 2021, down from Shs1.77 trillion recorded in 2020.
Absa Bank completes the top five biggest lenders in Uganda.
Headed by Mumba Kalifungwa as Managing Director, Absa’s loans remained flat, growing slightly to Shs1.307 trillion in 2021, from Shs1.306 trillion recorded in 2020. This gives the bank a market share of 7.61% under the loans category.
It is followed by Standard Chartered whose loans reduced to 1.22trillion in 2021, down from Shs1.24 trillion in 2020. Its market share under this category is 7.10%.
In 7th position is Bank of Baroda. Headed by Raj Kumar Meena as Managing Director, Bank of Baroda’s loans advanced to customers grew by 13.03% to Shs942.09bn in 2021, up from Shs833.5bn recorded a year earlier. This gives the bank an industry market share of 5.48% under the loans category.
Diamond Trust Bank occupies the 8th position in as far as biggest lenders is concerned.
Under the leadership of Varghese Thambi as Managing Director, DTB’s loans grew by 15.28% to Shs683.4bn in 2021, up from Shs592.8bn recorded a year earlier. Its market share under the loans category is 3.98%.
It is followed by Housing Finance Bank that is headed by Michael Mugabi as Managing Director. Housing Finance Bank, another indigenous bank, has consistently been among the top 10 banks in all key performance indicators. Its loans advanced to customers grew by 22.47% to Shs674.3bn in 2021, up from Shs550.6bn recorded a year earlier. Its market share is 3.93%.
PostBank completes the top 10 banks in as far as lending is concerned.
Headed by Julius Kakeeto as Managing Director, PostBank’s loans to customers increased to Shs454.8bn in 2021, up from Shs334.69bn recorded a year earlier. Its market share under this category is 2.65%.
Banks With Smallest Loans
PostBank is followed by Bank of Africa whose loans increased to Shs410bn in 2021, up from Shs397.9bn in 2020. Its market share is 2.39% under the loans category.
Citibank comes 12th.
This is after its loans increased to Shs409.92bn in 2021, up from Shs227.96bn recorded a year earlier. Its market share under this category is 2.39%.
It is followed by KCB Bank with a market share of 2.13%.
Its loans advanced to customers increased to Shs365.7bn in 2021, up from Shs253.24bn recorded a year earlier.
Finance Trust Bank, NCBA, Exim Bank and I & M Bank have 1.41%, 1.27%, 1.24% and 1.15% industry market share respectively under the loans category.
Afriland First Bank is yet to lend any coin to customers despite joining the Ugandan market in September 2019.
Seven banks have less than 1% market share under the loans category as detailed in the table.
These include ABC Capital Bank (Shs19.52bn/0.11%), UBA (Shs65.15bn/0.38%), Guaranty Trust Bank (Shs69.49bn/0.40%), Ecobank (Shs91.4bn/0.53%), Opportunity Bank (132.53bn/0.77%), Tropical Bank (Shs119.67bn/0.70%) and Cairo Bank (Shs121.49bn/0.71%).
It is important to note that the figures in brackets represent loans the above banks advanced to customers in 2021 and the corresponding market share under the loans category.
We’ll continue giving you unmatched analysis about the performance of banks in 2021 and beyond. For tips, opinions and advertising, Tel: 0775170346/0703828741/staddewo@gmail.com. Follow us on Twitter: @TaddewoS @BusinessFocusug
Excellent
Very good analysis of performance of banks 2021