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Fabian Kasi is the Managing Director of Centenary Bank, Uganda’s second-largest bank by assets, deposits, lending and profitability. He has been at the helm of the bank since 2010, leading it through its rosiest growth years. In this interview with CEO East Africa Magazine’s Muhereza Kyamutetera, he explains the bank’s winning formula and future growth plans.
First of all, take us through the state of Centenary Bank, what are the key facts and figures that define the bank?
Our Profit after tax increased from UGX161.2 billion in 2020 to UGX211.5 billion in 2021 registering an increase of 31.2%. This performance was attributed to relatively good loan management amidst the COVID-19 challenges, as well as cost-optimization and effective participation in the money and security markets.
Total income grew from UGX720.5 billion in 2020 to UGX864 billion in 2021 registering a growth of 19.9%. The major driver was mainly income from loans and advances to customers as well as investment income from money markets.
Customer deposits steadily increased by 1.4% from UGX 3.137 trillion in 2020 to UGX 3.181 trillion in 2021. This slight growth was majorly attributed to the prolonged lockdown of sectors like education which is a key contributor to the deposits. Nevertheless, the noted increase in deposits was largely due to increased investments in technology, such as mobile banking and Agent banking platforms that conveniently serve customers.
The asset quality of loans was also maintained at a relatively good position despite the evident COVID-19 strife and lockdown of businesses that hit our borrowers. The Non-Performing Loans (NPL) ratio moved to 5.16% in 2021, compared to 3.97% in 2020. The 2021 ratio, although above the bank’s maximum target of 3.5%, was below the industry average of 5.27%.
Our balance sheet expanded with total assets reaching UGX 4.789 trillion, from UGX 4.5 trillion in 2020 representing a 6.4% increment, mainly due to an increase in customer deposits.
How would you in your words- describe Centenary Bank- or rather how do you want your stakeholders to look at Centenary Bank?
We want to be seen as a bank that continuously delivers value to our customers and all stakeholders while leveraging on technology, people and good relationships. We want to be seen and known as a bank that cares for its community, reaching out to support them on needs that impact society.
Centenary Bank’s growth story has been phenomenal overtaking some older brands, including international ones. What are the key 5 things that you would pin this growth on?
Our growth is mainly built on the following:
- Our customer-centric value proposition delivery and good Bank partnerships
- Productive staff that successfully implement the Bank’s strategy
- Investment in technology
- Efficient Processes
- Good Risk Management.
The time you have been at the helm of Centenary Bank has witnessed probably the fastest growth ever. What would you say have been your major highest and lowest moments?
My lowest was in 2020 and 2021 while trying to figure out how the Bank can survive amidst the COVID-19 Pandemic. Interestingly, though 2021 was my highest, when the bank registered a record UGX211.5 billion net profit, amidst the pandemic.
The world over, technology and finance and the needs of customers are changing. We are seeing more and more borderless banking. Some of the customers you started with are now billionaires, trading across borders. How is the bank evolving to respond to the needs of the future?
The Bank targets to be a SMART Bank by 2026. It has therefore invested heavily in technology and product development e.g. recent developments include; the Mastercard Platinum Card, Cente-On-The-Go, Prepaid cards, Diaspora Funeral Cover and more is still to come.
In your view, as someone who has been at the centre of the Centenary Bank story in the last 12 years- what key lessons can be drawn therefrom, especially from our policymakers on the need to support locally grown enterprises and BUBU?
They need to look at supporting local enterprises by finding ways of handling the problem of high costs of doing business that has affected most SMEs that usually die in their first year.