Africa-Press – Uganda. Post Bank has retained the Shs15.1b it reported in profits for the period ended December 2022 as part of recapitalisation for the fully government owned bank.
Post Bank reported a 19.3 percent growth in net profit from Shs12.2b in 2021 to Shs15.1b.
The Post Bank, which had been a deposit-taking financial institution transformed into a commercial bank in December 2021.
The recapitalisation is part of Bank of Uganda’s requirement, in which, banks will be required to raise their capital requirement from Shs25b to Shs150b by June 2024.
In a post annual general meeting in Kampala, State Minister for Privatization and Investment Evelyn Anite, said Post Bank’s capital position remains strong, with paid up capital of Shs129b.
“This is above the interim limit of Shs120b set by Bank of Uganda. Post Bank is confident it will achieve the minimum Shs150b required by June 2024,” she said, noting that the bank reported a solid year-over-year growth, in which total assets grew by 21.3 percent from Shs745b in 2021 to Shs946. 6b.
Total income also increased from Shs144.5b to Shs159.2b, supported by a radical digital transformation journey that began in 2020.
Ms Anite said in order to provide cheap capital to the local borrowers in the country, government will continue to recapitalise Post Bank Uganda, Uganda Development Bank and Housing Finance Bank.
She also noted that reforms at Post Bank had enabled it to post stellar performance over the last three years.
“We want Post Bank to lend at 12 percent and Uganda Development Bank at 10 percent,” she said.
Mr Julius Kakeeto, the Post Bank managing director, said during the period, the bank experienced tremendous growth in digital transactions, which represented 60 percent of all bank transactions for the year, compared to about 10 percent in the last three years .
The increase, he said, had improved efficiency in a number of areas, especially in regard to improving customer experience.
Shareholders’ equity increased to Shs135.6b from Shs117b while loans and advances rose to Shs479.5b from Shs454.8b.
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