Banks post growth amid challenges, says Mutebile

The bank also has plans to extend its services to the Democratic Republic of Congo, South Sudan and Rwanda among others.

Commercial banks registered modest growth in 2012 even as the industry continues to sail through a number of challenges, according to Bank of Uganda.

Speaking at the launch of the Crane Bank Entebbe branch, Mr Emmanuel Tumusiime Mutebile, the Bank of Uganda governor, said: “The banking industry remains profitable with an average annual after-tax return on assets of about 4 per cent, although there had been a slowdown in real economic growth, affected by high inflation, high interest rates and the general increase in the cost of doing business.”

According to Mr Mutebile, a large share of profits earned over the last 12 months has enabled total capital base of the banking industry to rise to Shs2.6 trillion as of September 2012.

The Entebbe branch makes it 27, the number of Crane Bank branches spread across the country.

Crane Bank is the fourth largest commercial bank in Uganda, with a capitalisation of about Shs1 trillion.

Mr Joseph Biribonwa, the Crane Bank chairman, said the bank was diversifying its services to meet customer demand with new products including corporate banking, telephone banking and e-cash.

Early this year Crane Bank launched an aggressive expansion plan that will see the bank close 2015 with over 50 branches.

The bank also has plans to extend its services to the Democratic Republic of Congo, South Sudan and Rwanda among others.

mssebuyira@ug.nationmedia.com