Post Bank Uganda evolves, becomes a fully fledged commercial bank.
Written by Derrick Asaba on December 16, 2021
PostBank Uganda has today officially announced its ascension to tier one status after receiving a license from the Bank of Uganda.
This implies that the bank shall no longer be categorized as a credit institution but as a deposit taking financial institution that gives loans for the purposes of consumption and investment to make profit as mandated by the law.
The license issued by the Central Bank shall remain in force until revoked by the Bank of Uganda. PostBank shall effective December 2021 operate as a commercial bank (Tier One).
While addressing the media, PostBank’s Managing Director, Julius Kakeeto, said that the bank had over the last 18 months rolled out measures that would strengthen PostBank’s capacity.
“With the new management’s goal to strengthen PostBank’s foundation, efforts have been put into digital transformations that will improve customer experience. With these changes at the bank, it was inevitable that the institution would optimize its potential and compete with the aggressive privately owned financial institutions,” Kakeeto said.
Kakeeto also emphasized that they have been building a solid foundation for the last 13 years and that with this foundation, the financial institution can openly foster competitiveness and growth.
Speaking at the press conference, the PostBank Board Chairman, Andrew Otengo Owiny revealed that this marks the end of a 13-year journey that began in 2008.
“The Bank owes this milestone to its customers, staff, shareholders and all the external stakeholders who have supported this journey. I would like to pledge the Board of Directors’ continued support, to give vision and work with our stakeholders, until PostBank becomes the top financial institution in the country,” Owiny noted.
The bank can now among other services provide foreign exchange facilities (Acceptance and discounting of bills of exchange) and can give guarantees, bonds, or other forms of collateral, accept and place third party drafts and promissory notes connected with operations in which they take part.
About PostBank Uganda.
PostBank Uganda (PBU) is a public company limited by shares and formed under the Public Enterprises Reform and Divestiture Statute of 1983 and the Uganda Communications Act, 1997.
It was incorporated under the Companies Act in 1998 and is owned by the Government of Uganda with 100% shareholding.
PostBank Uganda has since grown to 49 branches countrywide, stretching from Yumbe to Kabale, from Kotido to Masaka, and over 400 Post Agents.
A rigorous restructuring process gave the institution a competitive edge with a new Board of Directors and several top-class bankers joining the senior management team.
The bank was in 2020, also able to make a net profit of UGX 10 Billion, which is the highest in the bank’s history.