PostBank Uganda, a financial institution committed to empowering lives and transforming livelihoods, today held its Annual General Meeting at the Ministry of Finance, Planning and Economic Development.
- The shareholders, the Ministry of Finance, Planning and Economic Development, have also committed to inject UGX. 50 billion in the bank and push for its capitalization.
Speaking to the press after the closed AGM, Hon. Anite Evelyn, Minister of State for Privatization and Investment, revealed that the government has decided to increase the authorized share capital of PostBank by 400% compared to UGX. 100 billion to UGX. 500 billion.
For clients, this means that access to low-cost financing would be further facilitated while the Bank would benefit in terms of reduced operating costs.
Hon. Anite congratulated PostBank on achieving Tier One status and praised the new board and management for reviving the bank’s past glory. “Previously, the bank was riddled with corruption, but since the arrival of new management, the brand has seen significant growth.”
She added that the government will inject UGX. 50 billion, in the short term, to meet emerging regulations on minimum capital requirements for banks and to continue to push for the capitalization of PostBank’s profits.
“The government, in partnership with PostBank, has put in place programs to transform the livelihoods of Ugandans.
They include the Small Business Recovery Fund which is available at an interest rate of 10% per annum with financing of up to UGX. 200 million,” remarked Anite, adding that “Agriculture is the backbone of our country and in an effort to address the food security issue, we have launched the Agricultural Credit Facility (ACF) to help agro-entrepreneurs to access affordable credit”.
Hon. Haruna Kasolo, Minister of State for Microfinance, who represented the Minister of Finance, said Ugandans need to understand that PostBank is their bank.
“PostBank is 100% government owned, so it’s your bank. I commend the bank and ask it to continue to provide affordable financing to micro, small and medium enterprises. »
In 2020, PostBank embarked on a transformation journey, which saw the rigorous restructuring of the bank’s organizational chart, the enhancement of the bank’s digital banking channels like PostApp, PostMobile, PostAgents and ATMs, the strengthening of human resources and strengthening of the bank’s risk framework.
This resulted in the Bank acquiring a Tier One operating license, making it a commercial bank in its own right.
Andrew Otengo Owiny, Chairman of the Board of PostBank Uganda, thanked shareholders for their support for the progress made by the Bank.
He welcomed the recommendations from shareholders and pledged to use them to build PostBank into one of the country’s leading financial institutions.
Julius Kakeeto, Managing Director of PostBank, again emphasized that “today we are a fully-fledged commercial bank and are able to compete in the market.
We now trade foreign currencies, offer checkbooks to our customers, and are in the clearing house, among other things.
“We have also built our service delivery in terms of self-service banking channels, an extensive branch network of 52 branches, 60 smart ATMs that enable instant cash deposits and cardless withdrawals, and bespoke products such as the Agricultural Credit Facility (ACF) has offered in partnership with BoU, asset finance, Kyappa loans for people seeking to acquire and own land and finance for smallholder farmers and has recently supported main suppliers of coffee exporters.
Kakeeto concluded by saying, “I would like to express our gratitude to our shareholder for increasing the authorized share capital of UGX. 500 billion.
We will continue to provide affordable and sustainable financial services that promote financial inclusion for the socio-economic development of our country.
In the 2021 Integrated Report which was shared with shareholders, the Bank recorded net profit after tax from UGX. 12.2 billion, a 22% increase from the 10 billion recorded in 2020.
The Bank’s assets moved to UGX. 745 billion while customer deposits and loans increased by 12.9% at UGX. 507 billion and 36% to UGX. 454 billion respectively.