Housing Finance Bank’s Micheal Mugabi elected vice president of Uganda Bankers Association

Micheal Mugabi, Managing Director of Housing Finance Bank, has been elected Vice President of the Uganda Bankers Association (UBA) during the Annual General Meeting held on May 17, 2024.

Mugabi will work alongside PostBank CEO Julius Kakeeto, who will be president. Other key members include Edgar Byamah, CEO of KCB Bank (Treasurer), Mumba Kalifungwa, CEO of ABSA (Auditor), and committee members Sanjay Rughani, CEO of Standard Chartered Bank, Patricia Ojangole, CEO of the Bank of Uganda Development, and Shafi Nambobi. General Director of UGAFODE.

The new UBA leadership team, succeeding the team led by Sarah Arapta, CEO of Citibank Uganda, takes over during a period of notable growth in the banking industry. In 2023, total assets increased by 8% to $49.5 trillion, customer deposits grew by 7.8% to $33.96 trillion, agent banking points increased to 33,437, ATMs at 984 and bank branches at 856 throughout the country.

The sector’s gross loan portfolio increased 7.6% to $21.1 trillion. Key sectors included household and personal loans (Ush 4.85 trillion), real estate sector (Ush 4.31 trillion), trade (Ush 3.72 trillion), manufacturing (Ush 2.89 trillion Ush) and agriculture (2.53 billion Ush).

It is a great honor for me to be elected Vice President of the Uganda Bankers Association. This is a pivotal time for our industry, marked by significant growth and opportunity. Our collective efforts will focus on fostering innovation, improving security and driving financial inclusion. Together with my esteemed colleagues, I am committed to addressing the challenges ahead and building on the solid foundation laid by previous leaders. I look forward to working closely with all UBA members to ensure the continued progress and resilience of our banking sector.”said Michael Mugabi.

In her farewell address, Sarah Arapta, outgoing UBA President and CEO of Citibank Uganda, highlighted the elimination of early loan repayment fees as a major achievement, facilitating more flexible lending options for customers.

“The decision to suspend early repayment fees was aimed at facilitating the lending market with flexible options and alternatives in restrictive economic circumstances and, by extension, private sector credit growth,” he commented.

Ms Arapta also emphasized the importance of continuing UBA’s Women’s Economic Empowerment Programme, which supports female staff and businesswomen.

However, amid growth across the industry, key challenges remain on the horizon for the new leadership team led by Kakeeto and Mugabi, such as rising fraud cases, which have driven up ICT spending from 392 thousand. million dollars in 2022.

Housing Finance Bank focuses on making banking easier and putting customers in control of their financial and banking needs. First incorporated as a limited liability company in 1967 as Housing Finance Company Uganda Limited, it operates as a non-banking credit institution, providing mortgage financing and accepting savings deposits from the public. Subsequently in 2007, the Bank was licensed and regulated by the Bank of Uganda as a commercial bank to carry out banking activities under the Financial Institutions Act and transformed into a public limited liability company known as Housing Finance Bank Limited.