PostBank rebrands to Pearl Bank
Finance Minister Matia Kasaija (yellow tie) and Investments Minister Evelyn Anite during PostBank’s 2024 Annual General Meeting in Kampala last week. PHOTO/COURTESY OF POSTBANK
What you need to know:
The bank, which is undergoing re-branding, is fully owned by the government and the government is responsible for its capitalisation as the bank works towards becoming a fully-fledged commercial bank
The government has intensified efforts to capitalise PostBank Uganda, which will soon be rebranded as Pearl Bank Uganda Limited, by reinvesting the entire profit of Shs35.4 billion earned in the 2022/2023 Financial Year. The bank, which is undergoing re-branding, is fully owned by the government and the government is responsible for its capitalisation as the bank works towards becoming a fully-fledged commercial bank.
Commercial banks act as financial intermediaries, connecting businesses and individuals to capital and facilitating transactions. They provide essential services such as loans, deposits, and payment processing, which drive economic growth, financial inclusion, and stability. Strong performance indicates a bank’s ability to generate profits, manage risks, and adhere to regulations, which are vital for the stability of the financial system in the country and beyond.
In the Financial Year 2023, the bank grew its income by 20 percent from Shs206 billion to Shs248 billion, and deposits grew by 25 percent from Shs790 billion to Shs990 billion. Its loan book grew by 19 percent from Shs603 billion to Shs719 billion. The bank closed the year with a profit after tax of Shs35.4 billion, reflecting a 28 percent growth from 2023. For the last financial years, PostBank, which is being renamed Pearl Bank, has been growing. In 2019, its profit was Shs8.4 billion, in 2020 its profit increased to Shs10.1 billion, in 2021 the profit increased to Shs12.2 billion, in 2022 the profit reached Shs15.2 billion, 2023 the bank’s profit stood at Shs27.5 billion, representing a growth rate of 81.5 percent.
Finance Minister Matia Kasaija said following the bank’s transformation and strong progress over the last five years, the shareholders approved the bank’s strategy to change its name and re-brand to reposition itself better and attract stronger banking partners, plus high-value depositors, to scale lending to MSMEs and agriculture. Mr Kasaija explained that a name that is worldwide known to be a symbol of purity, wisdom, wealth, status, and prosperity. Taken from Sir Winston Churchill’s portrayal of Uganda as “The Pearl of Africa” for its natural beauty, abundant wildlife, and cultural diversity, PostBank will re-brand to become Pearl Bank Uganda Limited.”
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“I wish the Bank continued success as it begins this transition period of the re-brand. I invite all the bank’s customers and Ugandans to be part of this journey that will strengthen the bank’s ability to foster prosperity for Ugandans through driving sustainable financial inclusion and supporting government's ATMS strategy especially in agriculture value addition,” Mr Kaasija said during the bank’s annual general meeting held at the Finance Ministry headquarters on June 5. Speaking about the bank's stand, the Chairman Board of Directors, Mr Andrew Otengo Owiny, said: “The bank has solidified its position as a transformative force since becoming a fully-fledged commercial bank in December 2021.”
Mr Oteno Owiny said the bank has more than 6,000 agents across the country. “The bank has continued supporting the government’s programmes, including digitising payments for the Parish Development Model through Wendi, which has created convenience and transparency as the funds can now be pushed directly to the ultimate beneficiary,” he said. PostBank Managing Director Mr Julius Kakeeto noted that re-branding is part of the wider strategy to grow PostBank into an indigenous commercial bank. Mr Kakeeto explained that four years ago, the emphasis was on strengthening governance and risk management, deploying the right technology, improving service, and becoming profitable.
Last year, the bank’s strategy evolved into delivering economic and social impact sustainably, as evidenced by rolling out a new purpose of fostering prosperity, which is implemented through the high-level goals of driving financial inclusion and stimulating entrepreneurship and services. “Rebranding enables the bank to attract strategic partners and high-value deposit customers. This will enable the bank to continue supporting MSMEs and the agriculture value chain, in the process growing productivity and incomes of Ugandans,” he said.
