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Government-owned Post Bank sees 82% jump in profit

Post Bank this morning released its Financial Results for the year 2023, showing impressive growth in all metrics.

Post Bank Managing Director, Julius Kakeeto addressing a press conference on Monday April 8

The bank closed the year with a profit after tax of Ugx. 27.5 billion, an 82% rise from Shs. 15.2 billion to Shs. 27.5 billion.

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A bump in the bank’s customer loans and deposits as well as the drive to diversify business lines saw its income grow by 30% from Shs. 159 Billion to Shs. 206 Billion

Post Bank’s loans and customer deposits, now standing at Shs. 603 billion and Shs 790 billion have been growing steadily at around 22.6% over the past four years.

Managing Director, Julius Kakeeto says the growth is driven by changes in the bank’s governance and improved service through digitization.

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We had to improve our service because we were behind in technology, so we started our digital transformation journey to bring our tech up to speed,” he said

The results are now showing. We closed the year with a record profit…all our figures are looking north. We have been growing faster than the industry average over the last four years.

Peter Ssenyange, the Post Bank CFO says the bank over the past 4 years invested heavily in technology, which in turn drove up customer transactions while reducing queues at its branches.

We have also added more revenue lines to our business focusing mostly on small business lending and farmers. In 2023 we grew our loan book for these two groups by over 23% or 123 billion,” he said.

Some of the players in the industry who are much bigger than us grew their loan book by about the same amount of money."

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Looking forward, Post Bank plans to make itself more relevant and impactful to customers and its shareholder, the central government.

The bank, according to Julius Kakeeto intends to bolster its Agriculture Credit Facilities targeting more of farmers doing value addition.

Post Bank recently launched Wendi as its primary platform to drive financial inclusion countrywide.

Wendi allows use of technology and leveraging of partnerships to bring financial services closer to Ugandans.

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