Uganda's banking sector registers growth

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Uganda's banking sector registers growth
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Uganda’s banking sector  has registered key growth in total assets officials have said.

Speaking at on Wednesday, Sarah Arapta the outgoing Uganda Bankers Association Chairperson and CEO Citi Bank Uganda highlighted said there has been an 8% growth.

"The industry has registered growth in total assets of the banking industry by 8% from shs45.8 trillion in 2022 to shs49.5 trillion in 2023, customer deposits increased from shs31.5 trillion in 2022 to shs33.96 trillion in 2023 representing a growth of 7.8%, industry access channels, especially agent banking points across the country increased to 33,437 bank agents by close of 2023, the industry further operated 984 ATMs and 856 branches,’’ Arapta said

More data from UBA indicates that, Industry gross loans also increased by 7.6 % from shs19.6 trillion in 2022 to shs21.1 trillion in 2023 with the top five sectors' credit portfolio by member financial institutions making up 89.1% of the total industry loan book.

These sectors included household and personal loans (shs4.85 trillion), real estate (shs4.31 trillion), trade (shs3.72 trillion), manufacturing (shs2.89 trillion) and agriculture (shs2.53 trillion).

In-terms of spend for 2023, the Industry’s total direct taxes that was paid by members was shs1.29 trillion up from 1.08 trillion in 2022 with spend on ICT increasing to shs694 billion in 2023 up from shs392 billion.

"The contribution to NSSF increased to shs157.3 billion up from 131 billion in 2022 with a total staff number of 19,428 (53% female and 47% male) Sarah, further noted that the best gift the industry had given its customers in October 2023, was to drop the practice of early loan repayment fees charged on outstanding loans, which was agreed to by the entire membership under UBA. This decision to halt the early repayment fees was aimed at facilitating the loan market with flexible options and alternatives in constraining economic circumstances and by extension the growth of private sector credit.’’

New UBA leadership

During their AGM, Uganda Bankers Association elected  Julius Kakeeto as the new chairperson to take over from Sarah Arapta.

Others elected are Michael Mugabi as vice chairperson, Edgar Byamah as treasurer ,Mumba Kalifungwa,  as auditor, Sanjay Rughani , Patricia Ojangole and Shafi Nambobi as committee members.

Wilbroad Owor was elected secretary to the executive committee.

Uganda Bankers Association is an umbrella body of the institutions licensed and regulated by the Bank of Uganda with a current membership of 25 financial Institutions.

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