Michael Karokora Mugabi, Managing Director, Housing Finance Bank

Housing Finance Bank (HFB) has registered an impressive performance during a Covid-19 suppressed environment. The bank’s asset base grew by 22% to Shs1.11 trillion up from Shs912.2 billion recorded in 2019. This now places the bank over the 1 trillion shillings mark, a feat achieved by very few banks, let alone HFB being the only indigenous bank in this class.

The bank registered phenomenal increases in its operating income by 22 percent, customer deposits by 17 percent and growth in net income by 17 percent. Additionally, the bank demonstrated a lot of agility in posting these results, which can be attributed to strong leadership and efficient processes.

Given the unpredictability of the operating environment during the year, coupled with a lockdown period, the bank’s loans advanced to customers slightly reduced to Shs551 billion, representing a 0.5% decline. The bank however still made a net profit of Shs20.6bn, placing it among the top 10 best performing banks in the country.

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Notable also is that Housing Finance Bank only became a commercial bank in 2007, having previously operated as a Tier two mortgage institution. The bank’s dominance in the Housing Finance sector continues with its consistent command of over 60% share of mortgages in the country.

Unsurprising, the bank has also proposed Shs3 billion as dividends to shareholders, up from Shs2 billion in 2019, demonstrating consistent growth in shareholders’ returns year-on-year.

Commenting on the bank’s performance, Housing Finance Bank Managing Director, Michael Mugabi, emphasized the bank’s quick response to customers’ needs with several interventions and tailored solutions during the pandemic as key drivers for the 2020 performance.

“Our customer-focused initiatives enabled us to support business sustenance and resumption which is critical for sustained growth in key sectors of Uganda’s economy. We rose to the challenge posed by the pandemic and I must say it took a lot of hard work and team effort behind the scenes. We remain hopeful as we embark on yet another financial year. We believe better things are yet to come,” Mugabi said.

He added that HFB engaged and devised restructuring plans aimed at keeping its valued business customers sustainably operational and competitive. “We also worked to ensure that personal clients whose income sources suffered due to the pandemic were adequately supported,” he added.

On service delivery, Mugabi said, the bank enhanced its presence on the digital platforms to ensure that the bulk of the bank’s services could be accessed over contactless channels.

The bank’s improved platforms include mobile banking, retail internet banking, corporate internet banking, MasterCard and Agent Banking Points among others.

According to Mugabi, HFB continues to reach out to more customers with focused value propositions in all aspects of life including housing, business, education, agriculture, and infrastructural developments for the social and economic development of Uganda.

“Housing Finance Bank looks at the future with increased optimism. We are happy to continually refine our value proposition in support of our customers’ growth aspirations as we all work to build our country Uganda,” Mugabi said.