Years Active: November 2018 – to date
Key Achievements: In the three years of Mugabi’s leadership, Housing Finance Bank has experienced double-digit and often above-industry growth rates cementing its place among Uganda’s 10 largest banks- by customer deposits, lending, total income, profitability, and balance sheet size. Some of the notable milestones, include, leading the bank from the 13th position to the 10th largest by deposits, an important facet on which all his other milestones sit. In 2020, he also led the bank to cross over into the Trillionaire’s Club, CEO East Africa Magazine’s unofficial official club of banks with over UGX1 trillion in assets.
Mr. Mugabi is a Ugandan banker, commercial lawyer, and Chartered Secretary. He is the Managing Director of Housing Finance Bank, a bank that he has helped build into Uganda’s 8th most profitable bank, the 9th largest by total income and lending, as well as the 10th largest by assets and deposits.
Worth noting is that Housing Finance Bank is also one of only 9 banks in Uganda with over UGX1 trillion in assets, a feat the bank crossed in 2020, when assets grew 17.5%, from UGX1.108 trillion to UGX1.304 trillion, an increase of UGX196.2 billion.
He possesses over 20 years of experience, most of which have been spent at Housing Finance Bank in various roles. Before being appointed Managing Director in November 2018, he served the bank as Executive Director, Company Secretary, Head Legal Services and Head Human Resources.
In the just-released 2021 financial results, Mugabi led the bank to register a 25% growth in deposits, (above the industry’s 4.7% growth rate) from UGX654.2 billion in 2020 to UGX818 billion in 2021- a growth of UGX163.8 billion.
Lending also grew 22.5% from UGX550.6 billion to UGX674.3 billion. Total income increased by 26.6% from UGX151.3 billion to UGX191.5 billion on the back of UGX108.1 billion in interest revenue from lending activities.
Strong lending, deposits, and income performance, combined with prudent cost management led to a 98% growth in net profit from UGX20.7 billion to a record UGX41 billion!
The above fundamentals helped the bank to strengthen its balance sheet position, with assets growing 17.5%, from UGX1.108 trillion to UGX1.304 trillion, an increase of UGX196.2 billion.
The 2021 results are the third full-year results under Mugabi- a period characterized by double-digit growth rates- most times above industry growth rates.
Letters to My Younger Self: What Uganda’s CEOs and Professionals Wish They Knew at the StartFor example, in the three years to 2021, Housing Finance Bank’s deposits nearly doubled growing from UGX451.3 billion that Mugabi inherited in 2018 to UGX818 billion, an increase of 81%. This represents a compounded annual growth rate (CAGR) of 16.0%, which is above industry growth figures of 9.6%. As a result, the bank moved from the 13th to become the 10th largest by deposits out of the 26 banks in operating in Uganda.
Mugabi and his team at the bank have also grown the bank’s lending by 32%, from UGX511.6 billion to UGX674.3 billion- a CAGR of 7.1%, allowing the bank to maintain its position as the 9th largest lender. During this time, industry lending grew by a CAGR of 7.8%.
On the bank of deposits and lending growth, Housing Finance Bank’s total income in the three years of Michael’s leadership has grown overall by 59% from UGX120.6 billion to UGX191.5 billion – a CAGR of 12.3%.
As a result, between 2018 and 2021, net profit nearly doubled, growing, by 96% from UGX20.9 billion to UGX41 billion- a CAGR of 13.8% enabling the bank to climb one position from the 9th to the 8th most profitable bank.
Balance sheet size has in the three years also grown; by 68% from the UGX776.9 billion he inherited in 2018 to UGX1.304 trillion in 2021- a CAGR of 13.8%. The bank is today the 10th largest bank by assets.
Mr. Mugabi is a Fellow of the Chartered Institute of Chartered Secretaries and Administrators, United Kingdom and also serves as a Council Member at the Institute of Corporate Governance of Uganda. He has a Master of Laws Degree in Commercial and Corporate Law from the University of London, the United Kingdom, and a Bachelor of Laws Honours Degree from Makerere University Kampala, among other professional qualifications. He is also a qualified Advocate of the High Court of Uganda and other Courts of Judicature.
