A new entrant in Uganda’s banking sector

“We are now Brac Uganda Bank Ltd. Now you can do more!”, noted Jimmy Onesmus Adiga, the Chief Executive Officer Brac Uganda Bank Ltd at the official launch of the bank at Serena Hotel on the 25th April 2019.

Brac Uganda Bank Ltd has commenced operations under the license of Tier 2 from Bank of Uganda. The bank first operated as a microfinance since 2008. The new entrant to the banking sector will provide low-cost loans to the unprivileged rural women and youths as its primary market niche, significantly undercutting existing commercial bank rates.

“with over 153 branches across the country, we are positioned to serve the very hard to reach segment of the population. Our target is to have 200 branches before close of 2019,” added Jimmy Onesmus Adiga.

Customers of the bank will be able to make deposits, have access to low interest rate loans, which reportedly makes it the only bank in the country to offer such loans.

Brac Bank’s new business enters a Ugandan financial sector that continues to recover from the after match of bank failures and acquisitions. Profitability across the sector remains moderate even as the health of the Ugandan banking sector has improved steadily.  In recent there has been significant consolidation as troubled banks have had to be acquired notably Crane Bank now under dfcu Bank, Imperial Bank was taken over by Exim Bank. The sector is now highly concentrated at national level. About 60% of banking assets are controlled by five banks.

You may also read: BoU issues Instructions Circular ‘EDS.306.2’ to SFIs for implementing IFRS 16

At Summit Consulting Ltd, we are proud to be part of this transformation journey by Brac Uganda Bank Ltd. Wish you the best.

 

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