Bank's profits rocket

While briefing shareholder and the press in Kampala last week, MD A.R. Kalan said the earnings ensued from increased lending in terms of loans to UGX144.2bn by 21.7% from UGX118.4bn. As a result, customer deposits increased to UGX290bn from UGX172.4bn in the last 12 months. This was a result of increased bank penetration in other areas of the country coupled with new products.

To beat off the stiff competition from other banks, the bank last year embarked on an aggressive retail expansion policy that saw it open more branches in Gulu, Lira and Iganga districts. These are major regional districts in the east and northern parts of Uganda with massive un-banked populations. Kalan said that this year Crane is eyeing Arua district as well as Mbarara, Kabale and Hoima in the west besides two more in Kampala.

The bank's product innovation arm launched the Visa Electron Debit card, which for a long time had remained a reserve of banks, with international presence of Barclays and Standard Charted Bank.

Kalan said that the bank plans to float its shares to the public in the last quarter of 2008. The company is still being scrutinised by the capital markets authority, which has the mandate to approve its initial public offering.

“The prospects of 2008 are promising. We are continuing with our focus on corporate and retail banking, while looking at introducing new products such as mortgage loans,” he added.