Not good news from across the border. Quite a contrast compared to the Kenyan situation.


The Standard: Half of Ugandan banks record losses

I thought only Stanbic Ug had reduced profitability in during the 1st half period!

Nice to hear that DTB is one of the better banks in Uganda

You know, crane bank is known for taking people's property, as Sudir has been termed a loan shark.

DTB isn't among the top 5 banks, in terms of assets and profitability, am not sure when it comes to efficiency.

Yeh, a good number aren't that disciplined when it comes to loan payment. But its said that Sudhir(CEO of Crane Bank), always looks for prime businesses and properties,then lends the proprietors hoping that they may fail to pay. No wonder he is famed for that and ofter times called called a loan shark. Whats even more amusing is he owns over 200 prime properties in kampala.

LOL... It is true... why borrow if you do not need the cash?

If you borrow then repay it... do not use the excuse that Crane Bank lent you money!!!

Pkoli, you cant be done just because your company missed a quarterly profit. Besides, most of these banks can leverage with their operations outside uganda. Besides, the money making days are coming soon.
About the loans, you know, these days banks have learnt how to make sure people live in debt by hawking loans. What crane bank does is hawk loans to high profile individuals and they have loads of shady deals. No wonder they were part of the scandal of the NSSF guys who made ilegal dealings on the USE.

Btw, has any of you heard anything about the upcoming bralirwa IPO??

So those ensnared by Crane Bank loans deserve to be screwed over since they are shady to begin with???

why would all these banks want to open branches in the country?

I would say Ugandans aren't that financially sophisticated just like Kenyans aren't as sophisticated as Indian Indians.
Thus aren't that good with loan repayments/ cash flow planning or even utilisation of working capital facilities. A good number therefore resort to selling off their property in order to repay their loans when sh*t hits the fan. Plus there's a low rate of monetization in the economy meaning transactions are mostly cash-based and very little is banked.
Why banks open branches? Because they can cheaply get deposit floats there - plus they can charge loans expensively while giving low deposit rates thereby maximizing on their spread. Guys arent that fussy about rates unlike kenyans who will raise hell when deposit rates go down 100 basis points or lending artes go up by similar margin.
Note Uganda has so many foreigners (Somalis, Angolans, Congolese huko Arua, Sudanese,Asians,and lately Chinese)and is thus rich in foreign currency reserves (esp. USD just like TZ) vis-a-vis their local shilling (possibly because foreigners want to keep their cash in a more stable currency).

BTW, is it true those Chinese doing their roads (maybe even ours)are good-behaviour-prisoners (about to be paroled) from China?