L-R Ibrahim Ahmed Sultan the Libyan ambassador to Uganda Abdulaziz Mohamed Mansur, Tropical Bank MD & Joweria Mukalazi, the ED
HABARI DAILY I Kampala, Uganda I Following several years of loss making, Tropical Bank Uganda is set to join the league of the top 10 banks in Uganda.
Joweria Mukalazi, the bank’s Ag executive director, said the recapitalisation of the bank will help them consolidate their financial position and join the league of the 10 biggest financial institutions, whereas they are now in the 13th position.
“Following the infusion of $27m, The Uganda Government is now set to increase its shareholding in Tropical Bank to at least 10%,” she said during an appreciation breakfast recently hosted by the Libyan ambassador to Uganda, Ibrahim Ahmed Sultan.
This was in recognition of the bank’s improved performance coming from loss making positions since 2018 to two years of successive profitability in 2022 and 2023.
Mukalazi said the bank is now on the upturn following the recent cash infusion by the Ugandan Government.
“The Uganda Government invested sh7.58b in the month of May, and was due to make a further injection of $27m at the start of the new financial year,” she said.
She sounded the gleam fact that the bank has endured many years of loss making.
“But we have picked it up amidst all those challenges to ensure that it remains afloat. And it’s going to remain running under Tier 1, since we have raised enough finances to enable us to remain in that category,” she stated.
Mukalazi said the Uganda Government has promised to make further injections, which will push up their shareholding from above 10%.
“The bank has had a brilliant performance. Whereas our current loan portfolio stands at about sh150b, we have reduced our non-performing loans stock from 20% to 12%,” she pointed out.
Mukalazi said that coming from a loss making position three years ago, they have emerged as one of the best performance, they are now among the best performing banks in the land.
“Due to the steller performance, we have been pinpointed as one of the commercial banks that are eligible to remain in Tier One category, since we have managed to raise the required sh150b as minimum capital requirement.”
Tropical Bank has heavily invested in SMART ATMs that can accept both deposits and withdrawals.
As it expands its presence in Uganda, its managers have invested in a robust core banking system with Omini channel capabilities to drive seamless digital banking through their online platforms, agents and branch network.
Mukalazi further said they are pursuing an Islamic banking license, and expect that before the end of year, adding that they are in the final stages of submitting the remaining information that Bank of Uganda required of them before they grant the license.”
Abdulaziz Mohamed Mansur, Tropical Bank’s managing director, said they have unveiled a 5-year strategic plan which will focus on SME as a key driver for their growth.
This, he said, involves tailor made customer value propositions in the education sector, trade and commerce, manufacturing and agriculture.
“We have also revamped our trade finance proposition to offer bid securities of up to sh500m unsecured. This can support education institutions with up to sh500m unsecured finances to meet short term financing needs. We also improved our offering for salary loans to up to sh350m,” he said.
Said Mansur: “We have added several products in our offerings, to increase their foot print in Uganda. We are set to open 2 more branches, 8 service centres and a wide network of agent banking points that will complement existing branch networks and digital platforms.”
He said they are also leveraging their partnership with fintechs to innovate solutions that drive financial inclusion from the unbanked.”
Ambassador Ibrahim, who confirmed Libya’s commitment to inject more capital into Tropical Bank, appreciated Ibrahim Ssenyonga, the current board chairman, management and staff for steering the bank back to profitability.
Established in 1973 under the name Libyan Arab Uganda Bank for Foreign Trade and Development, the bank is jointly owned by Libyan Foreign Bank (LFB) on behalf of Libya, with 99% shareholding, and the Government Uganda, with the later having 1% of the shares.
