BY BANKERS REPORTER
PostBank’s net profits grew 22% to sh12.5 billion from sh10 billion as at end of December 2021 as earnings from its key income sources improved despite a tough operating climate.
Interest earned from lending money to customers increased by 27% to sh98 billion from sh77 billion in 2020. Meanwhile, the bank’s earnings rom investing in government securities grew by 122% to sh7.5 billion.
PostBank which is wholly owned by the government of Uganda was in 2021 given a commercial banking license by the sector regulation, Bank of Uganda.
The bank reported, that customer deposits grew by sh58.3 billion, a growth rate of 13% from sh449 billion in 2020 to sh507.2 billion.
Loans and advances to customers improved by 35% or sh120 billion from sh334 billion to sh454 billion.
Total comprehensive income for the period grew 20% to sh144 billion on improved lending to customers by the bank during the period.
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,” Julius Kakeeto, managing director at PostBank, said.
“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 added.
He continued that: “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.