Everybody wants it. But not everybody understands it. Everyone wants to live a decent life. However, to do so, you must have the financial muscle to live happily. We all want to earn, but not all of us can do so. The root cause of the poverty crisis is the massive levels of financial illiteracy.
While Uganda’s financial sector grew in size with assets growing by more than 14.3%, the sector performance declined significantly with more financial institutions reported as undercapitalized, lower asset quality, increased number of loss-making banks, and lower return on investment. Below are a few sector highlights: There was a new entrant in the banking sector, Afriland
Figure 1: Centenary Bank’s jaws ratio year-on-year If you follow the developments in the banking sector, you could have noticed published financial reports by banks as 1st May 2020 approached. At Summit Consulting Ltd’s summitBI, we collect and publish the annual banking sector report. Based on our analysis, 2019 was a year of mixed fortunate
The Daily Monitor, of 27th August 2020, published an article titled “Loans advanced for cars most likely to default, says report” page 36 as a result of the recently released summitBI Banking Sector Report, 2020. Volumes and value of used car imports have been declining in the last three years thus eating into government revenues.
The banking industry is central to economic transformation. Following summitBI Banking Sector Report 2020 for Uganda, the Summit Consulting Team answers three questions about i) impact of the 2021 elections on the economy, ii) causes of the persistently high cost to income ratio in banking, and iii) why durables lead to higher loan defaults. Watch