Housing Finance Bank has announced a profit after tax of Ushs 65.1 billion for the financial year ended December 31, 2023. The Bank attributed the 11.3% year-on-year growth in net profits to digital transformation and revenue diversification efforts.
In the period under review, Housing Finance Bank also demonstrated significant growth in other key parameters, with total assets growing by 32.1% to Ushs 2.14 trillion, customer deposits increasing by 44% to Ushs 1.611 trillion, loans and advances rising by 28% to Ushs 996 billion and core capital over and above Bank of Uganda’s minimum capital requirements at Ushs 273.8 billion. These figures underscore the Bank’s commitment to expanding its customer base and enabling sustainable home ownership and financial independence.
David. G. Opiokello, Chairperson of the Board of Directors at Housing Finance Bank, implied that the commendable results were driven by the prudent implementation of the initial phase of the Bank’s 2023 – 2027 strategic plan. “Despite operating in a challenging economic environment driven by relatively high inflation, we achieved resilient growth across all key financial metrics which resulted in our largest net profit to date and a 19.4% return on equity that attests to our efficient utilization of shareholder capital to generate favorable returns,” he said.
He added that this growth was complemented by significant investments in the Bank’s risk management and cybersecurity framework to safeguard customer deposits and transactions and an expansion into microfinance and digital lending avenues to diversify the Bank’s revenue streams that resulted in a 27.7% growth in total income to Ushs 329 billion.
Micheal Mugabi, Managing Director at Housing Finance Bank, articulated the Bank’s continued focus on utilizing digital technology to enhance customer experience. “We remain committed to leveraging digital technology, from upgrading our core banking system to transitioning from traditional to recycler ATMs, with the overall goal of ensuring seamless transactions, enhancing customer convenience and reducing the cost of transacting which paves the way for deepening financial inclusion,” he said.
In addition to its stellar financial performance, Housing Finance Bank remains focused on integrating social, economic and environmental considerations into its business operations and practices upon receiving a certificate of acceptance to the Sustainability Standards and Certification Initiative (SSCI) during the 10th Global Sustainable Finance Conference held in Karlsruhe, Germany in August 2023.
Throughout 2023, Housing Finance Bank intensified its impact initiatives in education, innovation, and housing through strategic partnerships with organizations such as the National Social Security Fund, StartHub Africa, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), Habitat for Humanity, and the Buganda Kingdom that reflect the Bank’s dedication to community development.
Micheal Mugabi emphasized the Bank’s continued pursuit of a sustainability strategy with a focus on climate change and inclusive lending. “This strategy will translate into initiatives such as climate action and development of inclusive lending solutions. By prioritizing these values, we believe we can ensure sustainable economic growth as well as create a lasting impact on housing access, SME financing, and the overall wellbeing of the communities in which we operate,” he said.
The Bank also received several recognitions during the financial year under review such as the Gold Award under the United Nations Development Programme (UNDP) Gender Equality Seal (GES) Programme for Private Enterprises in recognition of its commitment to advancing gender equality and empowering women through internal measures. Additionally, the Bank received the Mortgage Banker of the Year Award at the 2023 Real Estate Awards organized by the Association of Real Estate Agents Uganda for its work in advancing access to mortgage financing to Ugandans.
Looking ahead, Housing Finance Bank aims to continue fulfilling its mandate of providing accessible and affordable housing finance solutions for Ugandans, aligned with its strategic plan, through collaborations and partnerships across both public and private sectors within the housing value chain, as well as in other pivotal sectors such as manufacturing, agriculture, education, health, trade, and tourism, in line with its aspirations of contributing to Uganda’s socioeconomic transformation.