The summitBI® Banking Report contains a rare depth and analysis style as it is meant for a tactical and strategic user. It examines the domestic macro-financial environment with a focus on the performance and financial stability of each bank and the sector, against the CAMELS framework.
Guided by the appreciation of the report’s readers and to further deliver the most comprehensive analysis of the banking sector, we have deployed Summit’s indices to bring out the true status of the Banking Sector. Below is the key findings from our analysis in this year’s summitBI® Banking Report 2020: study figure 1 carefully:
Figure 1: the pollical cycles and fixed income bubbles…
- Uganda’s fixed-income yields and economic indicators follow political cycles, see Figure 1. Can you spot the 2011 elections, 2016 elections? What is the projected movement of the asset quality in the 2021 election, and which assets should banks be investing in now to manage the risks and opportunities that are attendant to our election cycles not only in Uganda but the USA?
- Over 26.4% of Banks in Uganda’s financial sector have improved their capital adequacy position. Only five Banks reported undercapitalized positions.
- Banks have continued to struggle with Non-Performing Loans (NPLs). These stood 5.37% of gross loans in 2019, with 17 financial institutions experiencing a worsened NPL ratio in 2019.
- The Banking Sector’s cost to income stood at 86.66% in 2019, giving an overall profitability level of 13.4%, mainly due to substantial drops in cost by five (5) major Banks.
- Liquidity took a massive hit in 2019. Liquidity coverage dropped from 8.6 to 4.2. In other words, highly liquid assets would cover for anticipated cash outflows 4.2 times at the end of 2019, with 26 Banks falling short of their anticipated cash outflow.
To know more insights, register to attend here>>
What: Uganda banking sector 2020 report launch
Where: via Zoom, click on this link to register now.
When: Friday 14th August 2020, at 10 am sharp, for one hour.
Why: Know the key drivers of the banking sector, the top 5 banks, and how bank performance is analyzed.
Who: Anyone who wakes up early to make money or grow their wealth?
Fee: Free. Save the US $5,000 a minimum figure we charge to deliver the same talk privately to bank Boards/ EXCO as part of a strategic planning session.
The report is the most comprehensive Uganda banking sector analysis you have read. It is an MBA of sorts about banking and recommends you invite all your key bank staff, board members, and partners to attend.
As banks go back to the drawing table to reconsider the strategy following #covid19, now is the time to attend this briefing and inform your strategic choices and moves.
Winning is possible if it is deliberate. This analysis will help provide you with technical insights to see the future of your industry.
You are not a bank executive? Please make time and attend.
Copyright Mustapha B Mugisa, 2020. All rights reserved.