Centenary Bank posts Shs74b profit

Kampala.

Centenary Bank’s net profit after tax has increased by 27.3 per cent to Shs73.8 billion in 2014, up from Shs58 billion in 2013. This growth, according to the bank’s managing director, Mr Fabian Kasi, was as a result of good and prudent underwriting of loans thus returning quality loan portfolio.

“There was growth in the economy which saw growth in private sector credit, thus returning more revenue. There was also good management of costs, as well as diversification in sources of revenue, leading to increase in non-funded income,” he told Daily Monitor yesterday.
The bank also recorded an increase in the total assets to Shs1.6 trillion in 2014, up from Shs1.45 trillion in 2013.

Although there was a lot of volatility in the performances of the Shilling in the foreign exchange market, the bank registered an increase of Shs25 billion from trade finance, up from Shs13.9 billion recorded in 2013.

Despite the harsh economic conditions, the bank registered an increase in the loans which was spurred by increase in demand for credit as the economy became buoyant again, especially during the second half of the year.

Loan advances went up by 23.6 per cent; from Shs 672.3 billion to Shs830.9 billion in 2014.
Mr Kasi attributed this to the ability of the bank to assist its clients to acquire loans that they could ably manage.

Much as the bank registered a slight increase in non-performing loans, Mr Kasi says the non-performing loans did not increase in relative terms, although the magnitude looks big. The bank recorded improvement in non-performing loans standing at 2.6 per cent compared to 3.2 per cent recorded during 2013.

Centenary Bank has more than 1.3 million accounts, which is about a quarter of the market. In terms of assets, the bank is the fourth. In terms of deposits, the bank is the fourth at 9 per cent of the market, while in terms of loans, it is the third.

The numbers
Shs830 billion
Loans the bank advanced in 2014.