Sunday, June 9, 2024

STEADY PROGRESS! PostBank Uganda Records Impressive 19% Net Profits Growth

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Nelson Oko
Nelson Oko
Based in Nigeria, Nelson Oko is a features editor at Real Simple where he manages the publication’s personal finance, career, product testing and pets coverage. His work has also been seen in Travel + Leisure, Better Homes and Gardens, Southern Living and more.

KAMPALA – PostBank on Tuesday announced its financial results with a 19% increase in net profit for the year ended December 31st, 2022. The state-owned bank reported a net profit of UGX. 15.1 billion, a solid year-over-year growth of 19.3% up from the UGX. 12.2 billion net profit posted in 2021.

PostBank’s total assets grew significantly by 21.3% from UGX. 745 billion in 2021 to UGX. 946. 6 billion in 2022, which is almost 1 trillion. The bank’s total income also increased from UGX. 144.5 billion in 2021 to UGX. 159.2 billion in 2022, which can be attributed to the bank’s digital transformation journey that began in 2020.

Julius Kakeeto, Managing Director, PostBank Uganda, commented on the bank’s financial performance and thanked the shareholder for supporting PostBank. “Our shareholder has resolved to capitalize retained earnings of the UGX. 19Bn as at 31st December 2022.”

Digital channels including PostMobile, PostApp, PostOnline, PostAgents and smart ATMs, experienced tremendous growth, with digital transactions representing 60% of all bank transactions for the year, compared to about 10% 3 years ago.

Despite the challenging economic conditions, the bank’s shareholders’ equity increased to UGX. 135.6 billion in 2022 from UGX. 117 billion in 2021.

Andrew Otengo Owiny, the Board Chairman of PostBank, expressed his satisfaction with the bank’s performance, noting that the bank focused on improving efficiency of its operations and improving customer service.

“We opened 5 new branches, rolled out smart ATMs, enhanced the PostApp and started on a journey to serve the PDM with a solution that ensures funds reach the final beneficiary. It is still awaiting regulatory approval.”

He added that considering where the bank was 3 years ago, PBU has made tremendous strides in the right direction.

“We are looking forward to a future where we take leadership in supporting Agribusiness and Micro Small & Medium Enterprises support which are core to the economy of this country.”

PostBank’s capital position remains strong, with paid up capital of UGX. 129Bn following shareholder’s resolutions from the Annual General Meeting held today. This is above the interim limit of UGX. 120n set by Bank of Uganda (BoU). PostBank is confident it will achieve the minimum UGX. 150Bn required by June 2024.

Addressing the media after the AGM, the shareholder, represented by Minister Evelyn Anite, the state minister for Investment and Privatization, commended the Board and Management of PostBank for the stellar performance over the last 3 years. She challenged them to sustain this level of performance so as to serve more Ugandans.

The bank’s end-of-year accounts and accompanying financial statements were audited by the Auditor General and found consistent with International Financial Reporting Standards (IFRS) and the Uganda Companies’ Act plus the amended Financial Institutions Act 2004.

In terms of its capital and financial performance, the bank is in a strong position to expand and serve its customers with better competitive products and innovations in the future.

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