HARVEST IS GOOD! Centenary Bank Beats post Sh342.3bn profit

Centenary Bank Uganda has reported a solid profit after tax of Shs 342.3 billion for the year ended December 31, 2024, marking a 15.2% increase from the previous year, despite a challenging local operating environment characterized by inflation, increasing competition, and evolving customer demands.

The strong performance was underpinned by prudent cost management, robust loan quality, and accelerated digital transformation. Operating income rose by 8.5%, reaching Shs 980.4 billion, while the non-performing loan ratio improved to 2.6%, reflecting better risk management and customer supervision.

Managing Director Fabian Kasi attributed the growth to disciplined lending and operational efficiency, saying: “Profit grew mainly due to sound credit underwriting practices that the team has perfected, returning good loan quality with a Non Performing Ratio of 2.6%, on top of increased prudence in cost management at a cost income ratio of 63.7%. Loan portfolio also grew from Shs 3.3 trillion to Shs 3.7 trillion, leading to a decent growth in the top line.”

He added: “Our ability to grow profitability in the face of economic turbulence highlights our financial resilience and operational discipline. We are building a performance-driven culture rooted in value creation for our customers and the country.”

The bank’s impressive profitability points to a blossoming financial institution demonstrating capability of navigating volatility while supporting critical sectors of the real economy.

Key sectors driving the bank’s loan book included agriculture (up 18.4% to Shs 448.8 billion) and microfinance (up 24.8% to Shs 539.3 billion), reaching over 50,000 smallholder farmers.

The SME lending portfolio also surged to Shs 423.5 billion, reinforcing Centenary Bank’s position as a financial inclusion leader.

Difas Agaba, a business development expert in Kampala, said “financing farmers, microenterprises, and SMEs, Centenary Bank is indirectly boosting rural incomes, job creation, and tax revenues.”

Winnie Nantenza, an economist, observed: “The sharp reduction in the non-performing ratio enhances investor confidence and indicates that credit risk is being managed efficiently.”

She added: “For Uganda, the bank’s performance reinforces the critical role of indigenous financial institutions in anchoring economic resilience and supporting inclusive development.”