Uganda’s most profitable banks have been revealed as all supervised financial institutions made a profit of Shs1.4tn for the year ending June 2024.
The financial institutions include all the institutions supervised by the central Bank of Uganda (BoU). They are: commercial banks, micro-deposit-taking institutions (MDIs), and credit institutions.
But of this combined profit, a few big banks took a lion’s share – making the list of Uganda’s most profitable banks – as financial institutions remained profitable even when the economy continues to face challenges. The Shs1.4tn profit for all the supervised financial institutions was a one per cent rise compared to the previous year of reporting.
Interest, improved asset quality and a drop in bad debts all worked together to give banks huge profits. The big banks rake in hundreds of billions in profits, according to the Bank of Uganda report.
Stanbic Bank Holding Limited (SUHL), which is a subsidiary of Standard Bank Group from South Africa, saw a 15.2 per cent increase in its profit after tax. Stanbic Bank Uganda earned Shs 412 billion in profits in the year ending June 2024.
Stanbic Bank, which has the most assets of all financial institutions in Uganda, remains on top of the list of Uganda’s most profitable banks, according to a Bank of Uganda report.
Following Stanbic Bank Uganda in profitability for the 2023-2024 year of reporting is Centenary Bank, owned by the Ugandan Catholic Church. Centenary Bank’s profit grew by 19 per cent in one year.
Centenary Bank’s profits totalled Shs 297 billion after tax, which is over Shs 100 billion below the profits made by Stanbic Bank, a foreign bank from South Africa.
It is followed by Absa Bank whose profits grew by 15.6 per cent in one year. After tax, Absa Bank’s profit was Shs146 billion.
In total, Stanbic Bank, Centenary Bank and Absa Bank – Uganda’s most profitable banks in 2024 – had a total profit of Shs 850 billion of the Shs 1.4 trillion made by all supervised financial institutions. This means that the three big banks bagged nearly 62 per cent of the total profits made by the financial institutions.
You can see the previous profits or losses each Ugandan bank made previously, and how some have been dogged by fraud in recent years Here and There.
(For comments on this report, story tips or sponsored content, send us a Whatsapp message on +256 705 690 819 or E-mail us on pearltimesug@gmail.com).
Please Follow our Whatsapp Channel for More Stories HERE
