Absa bank Uganda has announced that it recorded profits worth shs41 billion after tax in the year 2020
In a year the economy was disrupted locally and globally by the Coronavirus pandemic, the bank announced in its financial results for the year ending December 2020 that its revenue grew to shs316 billion.
“Despite a tough year owing to the economic impact of the COVID-19 pandemic, the bank achieved total revenue of shs316 billion and profit after tax of shs41 billion. The bank witnessed an 8.1% growth in customer deposits amounting to shs2.4 trillion, maintaining a 12% compounded annual growth rate for the third year running,” said Absa bank Uganda Managing Director, Mumba Kalifungwa during the release of the financial results.
“The Covid-19 pandemic necessitated an accelerated investment in digital platforms to ensure business continuity in light of the measures that were introduced to curb the spread of the pandemic. We have prioritized investment in innovation as we seek to leverage the strength of digital technology to create seamless experiences to our customers.”
The bank also has a capital ratio of 23.9% way above the regulatory requirement of 12%.
Kalifungwa explained the 8.1% growth in customer deposits to the trust that the public has in the bank.
“When it comes to banking, the public trusts us and customers are confident doing business with us. We also have a strong brand and a parent company that supports us in times of need. There is a high liquidity but also capitalized institution,” he said.
He noted that despite the industry decline in lending, their gross loan book grew to shs1.5 trillion, maintaining a three- year compounded annual growth rate of 9.6%.
The bank officials said they gave out shs260 billion in credit relief to help various customers shield themselves from the effects of the Coronavirus pandemic and its effects like the lockdown.
The bank Managing Director said they are happy that most businesses have now stabilized as the economy continues to open up.
According to the bank, sectors like agriculture, construction and trade have already picked up after the gradual reopening of the economy but said the tourism and hospital industry, entertainment and education are still down and battling with the effects of the pandemic.