Bank of Africa Uganda has released their 2019 results, reporting a 33per cent increment in net profit on the bank of double-digit growth in lending.
“Client lending activity remained strong with loans and advances growing by 15per cent over 2018, from UGX 344.1 billion in 2018 to UGX397.1 billion in 2019); largely to small and medium enterprises (SMEs). We upheld our goal of committing funds to the biggest impact areas of our economy – education, trade, manufacturing, and construction,” said Mr. Arthur Isiko, the bank’s Managing Director, in a note accompanying the published results.
“In line with our agenda for promoting sustainable financing for all, we specifically deployed over USD20 million in financial support to SMEs in education, trade, and construction sectors. We also launched agent banking, allowing the bank to reach both the under and unbanked populations, thus supporting financial inclusion,” he said.
FOLLOW THIS LINK FOR FULL RESULTS: https://boauganda.com/2019-annual-results/
As a result of increased lending, total income grew by 10.7 per cent from UGX104.1 billion in 2018 to UGX115.6 billion and profit before tax grew by 34.8 per cent, from UGX19.8 billion to UGX26.7 billion.
“The bank continued to pursue its responsible and sustainable growth strategy that led us to deliver UGX 20 billion in net earnings, thus exceeding our 2018 results (UGX15.1 billion) by 33per cent and further strengthening our capital levels,” explained Mr. Isiko.
He said that although the bank’s customer deposits marginally grew by 2per cent, the “off-balance sheet commitments exceeded expectations with a 47 per cent growth rate underscoring the bank’s efforts to finance trade and infrastructure in Uganda.”
35 years of service in Uganda
Bank of Africa, this year celebrates 35 years of service in Uganda, having emerged from small Ugandan-owned deposit-taking private company within a family conglomerate- Sembule Group; evolving and growing to be part of a bigger pan-African banking group- BMCE Bank of Africa.
BMCE Bank of Africa is present on four continents in 32 countries, 21 of which are in Africa, 8 in Europe, 1 in North America, and 2 in Asia.
“We thank all our stakeholders – our clients, our employees, our regulators, our partners, our directors, our shareholders, and the general public, for the confidence they have placed in this great institution over the years,” says Isiko, adding: “As we look to the next decade of service, we shall continue to capitalize on our heritage that allows us to apply our multi-cultural DNA to fuse local market know-how with international best practice that comes with being part of a strong banking group. This combination will allow us to continuously improve as we deliver relevant financial solutions to our clientele.”
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Mr. Isiko says that the bank is alive to the unprecedented disruptions and challenges caused by the impact of the Covid-19 pandemic to individuals, families, and businesses.
“Bank of Africa is sensitive to these challenges and we are expanding our assistance measures to support and reassure all Ugandans (individuals, businesses, and communities) that we are here to help in this time of uncertainty. Our focus is on serving our customers during this time,” he says.
Some of the measures instituted by the bank include a loan holiday package to all the bank’s borrowing customers whose incomes have been impacted by the Covid-19 and suspending a number of transaction fees on selected digital transactions.
“Customers impacted by Covid-19 are eligible for consideration for credit relief packages of up to 12 months,” he says, adding: “Our digital tools and other self-service resources for banking and 24/7 account access have been optimized for all individuals and businesses to access. You can access your account and transact online, on your phone, pay bills, and make transfers across various domestic and foreign financial institutions.”
Bank of Africa has also contributed financially directly and through the Uganda Bankers Association towards the support of the government’s efforts to fight the pandemic.
“We pledge to stand with all Ugandans during this trying time and we shall continue to do everything within our ability to support related mitigation and recovery efforts. We will also continue to support the development of SMEs in Uganda, with not only responsible credit but also with business opportunities, seeing that over 95 per cent of our suppliers are Ugandan SMEs,” reiterates Isiko, adding: “Building and creating a lifetime of meaningful partnerships with our communities, businesses, and individuals that we serve has always been at the heart of our operations. Our commitment to this promise remains unwavering.”
Bernard Magulu, the bank’s Executive Director asserts that with the good performance exhibited in 2019, the bank continues to be the ideal financial services partner or individuals, SMEs and large corporates.
“Our growing balance sheet, coupled with our unique abilities- the DNA of a local bank fused with local market knowledge; pan-African experience and our global Group expertise- makes Bank of Africa your bank of choice.”
