PostBank Uganda Limited, the Government of Uganda owned bank has announced its 2021 financials posting yet another year of healthy growth.
In the results released on 25th April 2022, the bank reported, that customer deposits, the lifeblood of every bank, had grown by Shs 58.3 billion – a growth of 13% from Shs 449 billion in 2020 to Shs 507.2 billion.
The double-digit growth in customer deposits enabled the bank to boost its lending book by an impressive 35.9% – from Shs 334.7 billion to Shs 454.9 billion – a growth of Shs 120.2 billion.
Burgeoning lending saw a 20.9% growth in total income – from Shs 119.5 billion to Shs 144.5 billion.
Despite increased investment especially into new technology, that pushed expenditure, upwards from Shs 104.3 billion to Shs 126.9 billion, the bank still reported a healthy 21.5% growth in net profit – from Shs 10.1 billion to Shs 12.2 billion.
Shareholder Funds also grew by 15.5% from Shs 101.4 billion to Shs 117.1 billion.
The 2021 results are Julius Kakeeto’s second full-year results since he joined the bank in October 2019 and the first since the bank got a Tier One Commercial banking licence in December 2021. The impact of the licence is however expected to start bearing fruits in 2022.
Commenting on the results, Mr. Kakeeto said that the 2021 strong performance was underpinned by the continued steady execution of the bank’s transformation agenda – which seeks to shape the bank into a market leader in financial inclusion and a pacesetter in economically transforming the lives and livelihoods of its customers.
“2021 was a tough year owing to the COVID-19 pandemic. Many customers were still suffering from the effects of the 2020 lockdown and then they had to deal with another lockdown in 2021. At PostBank, we focused on supporting the adversely affected businesses to survive and recover through restructuring of facilities and providing working capital support,” he said, adding: “The Bank continued with its strategy of revamping and widening its distribution channels to enable access to its products and services while improving customer experience.”
He also said that the bank, in line with its strategic intent of being a people’s bank focused more on impact lending to key sectors of the economy.
“PostBank prides itself in offering affordable and sustainable financial services to the masses. Last year’s earnings underpin our commitment to supporting Micro Small and Medium-Sized Enterprises (MSMEs) with agriculture being one of our core areas. Considering most of these MSMEs are involved in the agriculture value chain – production, trade, processing, distribution, storage, and logistics, PostBank will remain an MSME bank,” he said.
“We shall continue to innovate tailor-made products that support the entire value chain and deepen our coverage and outreach using our robust financial literacy programs,” he said.
Over 70 farmers dealing in crop production, poultry and cattle fattening pose for a picture, at the close of a PostBank organized agriculture forum. The bank which a leading agriculture lender, by number of loans, uses the forums to empower and upskill farmers for the growth of their agribusinesses.
Leveraging the tier-one licence for mutual bank and customer growth
Kakeeto said that the acquisition of the Tier One operating licence in December 2021, would enable the bank to unlock opportunities that would fully optimize PostBank’s potential.
“We are in a stronger position to mobilize deposits which are the heartbeat of a bank. Our customers are also set to enjoy a new and wider variety of products and services that come with being a fully-fledged commercial bank,” he said, adding: “The Bank will ensure that it continues to improve the customer experience for its target market – the masses, MSMEs and agro-businesses on a wider scale. We also intend to scale up our existing partnerships with both Government and Development Partners to extend financial services to Ugandans, especially the underserved.”
Over the last two years, the bank has been undergoing transformation, heavily investing in new technologies, revamping its digital banking platforms, revamping the branch network as well as opening new outlets.
To take services to the people, the bank opened new branches in 2021 starting with Mukono, Kamdini, Rushere, Butogota and Kyazanga. The bank also opened a Corporate Branch at Forest Mall, Kampala to cater for the high net worth and corporate customers.
The bank also upgraded its PostApp and PostMobile *263# to ease transactions, as well as replaced half of its fleet of ATM dispensers with recycler/intelligent ATMs that support instant cash deposits, and cardless transactions, and a wide range of other services.
One of PostBank’s intelligent ATMs at the Forest Mall Branch. In 2021, the bank replaced half of its fleet of ATM dispensers with recycler/intelligent ATMs that support instant cash deposits, cardless transactions, and a wide range of other services. The rest of the ATM fleet will be replaced this 2022.
“We are planning on replacing the rest of the ATM fleet during this year, 2022. Last year, we also embarked on upgrading our core banking system which has been completed,” Kakeeto said.
He also noted that the bank continues to support its clients recover from the effects of the pandemic.
“We are the people’s bank, providing opportunities for financial growth to Ugandans countrywide. Through our competent staff, we are in constant engagement with borrowers to support them to pay back their debts,” Kakeeto emphasized.
“We also set in motion the Small Business Recovery Loan which is complemented by the Uganda Development Bank-PBU partnership low-rate loan for value addition to further support financially distressed businesses and individuals. The goal is to avail capital that borrowers can be able to pay back under flexible repayment terms,” he added.
“This year, we shall continue to provide affordable and sustainable banking services that drive the social and economic transformation of our customers. We also plan on continuing with our digital journey that will further improve the customer experience at all touchpoints of interaction with the Bank,” Kakeeto concluded.
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