KAMPALA -Equity Bank Uganda on Monday held a media engagement to discuss the financial performance of 2022, the Africa Recovery and Resilience Plan and its achievements so far, as well as the social impact of its business.
While commenting on the bank’s financial performance, its Managing Director Anthony M. Kituuka said customer deposits rose by 21 per cent to Shs2.8 trillion in 2022 from Shs2.3 trillion recorded in 2021, as customer numbers increased by 32 per cent to 1,613 from 1,222.
The bank’s total assets were up by 20 per cent to Shs3.4 trillion in the year under review from Shs 2.8 trillion in 2021.
“We are pleased to report another year of continued growth in key areas, said Kituuka, adding that the overall performance of Equity Bank Uganda demonstrates resilience in the face of economic contraction and other associated challenges experienced post #Covid-19.
According to Kituuka, the continued focus on operational efficiency and strategic growth initiatives have enabled them to deliver positive results for the bank’s shareholders and stakeholders.
“I am fully confident that the foundations we set in 2022, will help us to deliver on our strategic priorities and further strengthen our financial performance,” he added.
The financial highlights of the bank for the year ending December 2022, include loans which went up by 6 per cent to Shs1.6 trillion compared to Shs1.5 trillion traded in 2021.
The bank’s cash and balances with the Bank of Uganda, which regulates the banking industry in the country, increased to Shs558.4 billion in 2022 compared to Shs353.3 billion retained in 2021, as bad and doubtful debts rose to Shs90.7 billion in 2022 from Shs25.7 billion in 2021.
However, as the bank’s agents increased by 39 per cent to 7,7000 in 2022, from 5,572 in 2021, its profit before tax dropped by 52 per cent to Shs56.4 billion from Shs118.2 billion.
“With our significant investments in technology, prudent cost and risk controls as well as robust systems, we are on the right track to even perform better in 2023.
He said Equity Bank Uganda is committed to maintaining a strong financial position and will continue to pursue growth opportunities while remaining focused on delivering value to its customers and shareholders, not that the lender is ranked as the fifth systemically important bank in the country.
He said the bank has continued to invest in key areas of the business such as product development and expansion into new markets. The investments, he said, have helped to drive growth and position the bank for continued success in the future.
However, he said in 2022, adopted the twin-engine model to fund social and economic projects in Uganda including agriculture where small-scale farmers got credit of Shs70.3 billion, manufacturing, trade, energy and environment, education, health, oil & gas.
Kituuka was happy that Equity Bank Uganda stepped its social impact investments aimed at transforming lives and livelihoods of especially the youth and women, with credit support worth Shs21 billion. “The bank placed an intentional focus on rural women, offering unsecured credit with the aim to provide women at the bottom of the economic ladder with access to affordable capital,” he said.
He said that among others, the bank in 2022 continued with equipping women with business skills, mentoring and exposing them to business networks, and equipping them with the tools they need to succeed in business.
Further, the bank in 2022 availed loans worth Shs129.9 million to 42 village saving and loan associations [VSLAs] in refugee settlement, a bold move aimed at giving refugees financial independence.
Under the African Recovery and Resillience Plan launched post-#Covid-19, Equity Group continues to make available $6 billion to 5 million SMEs and 25 million individual borrowers for the next five years.
According to bank officials, the plans conceives that the 5 million businesses largely comprising MSMEs will create 50 million jobs, 25 million jobs directly while a similar number will be created indirectly.
