PostBank Uganda has posted impressive results for the second year running, recording a net profit of Sh12.2b in the 2021 integrated financial year.

The performance, according to the bank, is a 22% leap from the sh10b recorded in 2020, riding on the strength of new investments in technology, and a tier I status, which was obtained approximately two years ago.

According to the bank’s financial performance report released on Tuesday, gross revenue grew 21% to sh144.5b from sh119b in 2020, while the return on equity grew 5% to 10.4% from 9.9% recorded in the previous year.

The bank’s assets also grew to sh745b while customers' deposits and loans grew12.9% to sh507b, and 36% to sh454b respectively.

“We have managed to post good results in spite of the tough challenges we have encountered as an economy, along the way. One of the key tools for this performance is the widening of our distribution channels to enable access to our products and services,” said Julius Kakeeto, the managing director of the bank.

He said the bank will continue supporting the micro, small and medium enterprises, and the agriculture sector, which are vital to economically transforming the lives and livelihoods of Ugandans.

Kakeeto said the bank has also reinforced its service delivery channels, to include self-service mechanisms, and tailor-made products like the Agriculture Credit Facility (ACF) offered in partnership with the Bank of Uganda.

“We also offer asset financing, Kyappa loans for people seeking to acquire and own land and smallholder farmer financing and recently supporting the key suppliers to coffee exporters,” he said.

Investment minister, Evelyne Anite said the banks' impressive performance had convinced government to increase its authorized share capital by 400%, meaning that its core capital will increase from sh100b to sh500b in absolute terms.

“Previously, the bank had been tainted with corruption, but ever since the new management came in, there has been significant growth of the brand,” Anite said.

She added that the government will inject sh50b, in the short term, to meet the emerging regulations on minimum capital requirements for banks and continue to lobby for further capitalization of the bank.

“The government in partnership with PostBank has put in place programs that are intended at transforming the livelihoods of Ugandans. They include the Small Business Recovery Fund which is available at a 10% interest rate per annum with the financing of up to sh200m,” Anite said.

PostBank is a government-owned financial institution, working together with Uganda Development Bank to offer development-related loans among other government financial-related services.