Centenary Bank grew assets by 26% amidst Covid-19
Centenary Bank, Uganda’s leading commercial microfinance bank registered a 26.2% growth in its total assets in 2020 thanks to increased customer deposits and investment activities.
The growth demonstrates the bank’s resilience and guarantees its strong ability to continue meeting its customers’ financial needs in 2021 and beyond amidst the coronavirus pandemic.
Keep Reading
According to the bank’s financial statements for the year ending December 31st, 2020, the bank’s total assets grew to Shs 4.49 trillion from Shs 3.57 trillion in 2019, crossing the Shs 4 trillion mark for the first time since the bank was established.
Centenary Bank’s current top three assets include; Loans and Advances, investment and marketable securities (government bonds and treasury bills.
Commenting on the results, Fabian Kasi, the managing director of the bank attributed the double-digit growth in assets to an increase in customer deposits that were boosted by enhancement in the use of financial technology such as agent banking and CenteMobile, the bank’s signature digital inclusion tool.
The bank also posted a profit after tax of Shs 161.2 billion, up by 3.5% from the Shs 155 billion that was recorded in 2019.
"Our overall performance and position in the banking industry, depicts our resolve in continuously
delivering value to our customers and all other stakeholders. We leveraged on technology, people and
strong rooted relationships, to deliver good performance, despite the year’s challenging operating
environment," Kasi said.
He said the bank's continued growth in 2020 in profits and total assets amidst slackness in business performance globally due to Covid-19 was guided by the bank’s strategy, supported by investment in technology, lean processes and excellence in risk management and strong client relationships.
In 2020, Centenary Bank continued to invest in alternative digital banking channels such as CenteMobile, its flagship digital mobile product and agency banking which contributed to the growth
of customer deposits.
The bank grew its agent network to 3,659 registered agents countrywide, effecting over a third of the bank’s customer transactions. On CenteMobile, the bank introduced a low-balance account for customers called the CenteXpress savings account.
Through this innovative digital account, all Centenary Bank customers can open a savings account for another person using their mobile App.
On the tax compliance side, during the year, the bank collected and remitted taxes of Shs 107.7 billion in total, to Uganda Revenue Authority (URA), hence boosting the government’s revenue mobilisation efforts.
Future outlook
Kasi said following the global disruption of people’s ways of life and business activities by the Covid-19 global pandemic, the bank has embraced and is adapting to the “new normal” in order to rebuild a sustainable future in delivery of financial services to customers.
"As a Bank, we shall continuously strive to deliver tailor-made and innovative products and services
for our customers, with support of our improved systems and outlets. As the future is digital led, we
shall continue to ensure increased efficiency in our operations using technology while having a
balanced human interface with our customers," Kasi said.
