BANK OF AFRICA - UGANDA ANNUAL REPORT 2009 BANK OF AFRICA - UGANDA / ANNUAL REPORT 2009 Group Banks
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BANK OF AFRICA - UGANDA ANNUAL REPORT
Life in colours
BANQUE DE L’HABITAT DU BENIN 1 Cotonou
BANK OF AFRICA - BURKINA FASO 12 Ouagadougou
6 Bobo-Dioulasso, Essakane, Fada N’Gourma,
Koudougou, Koupéla, Pouytenga.
BANK OF AFRICA - BENIN 20 Cotonou
16 Abomey-Calavi, Allada, Azové,
Bohicon, Cocotomey, Comé, Dassa-
Zoumé, Djougou, Kandi, Natitingou,
Parakou 1, Parakou 2, Pobè, Porto-Novo,
Sèmè Kraké, Ouando (Porto-Novo).
Table of contents
BANK OF AFR ICA - UGANDA / ANNUAL REPORT 2009
Group Banks and Subsidiaries at end 2009 1
Group strong points 2-3
Main products of the Bank 4
ACTIVITY REPORT 2009 5
Comments from the Managing Director 6-7
Highlights 2009 8
Key figures 9
Corporate Social Responsibility Initiatives
Board of Directors, Capital 12
AND FINANCIAL STATEMENTS 13
Directors’ report 14-15
Statement of Directors’ Responsibilities 16
Report of the independent auditor 17-18
FINANCIAL STATEMENTS 19
Statement of comprehensive income 20
Balance sheet 21
Statement of changes in equity 22
Statement of cash flows 23
Notes to the Financial Statements 24-60
Personal Notes 61
BANK OF AFRICA - MALI 10 Bamako
6 Kayes, Koulikoro, Koutiala,
Nioro du Sahel, Ségou, Sikasso.
2 Morila (Sikasso), Sadiola
BANK OF AFRICA - NIGER 6 Niamey
6 Agadez, Dosso, Gaya, Maradi,
BANK OF AFRICA - SENEGAL 11 Dakar
3 Kaolack, Saly Portudal, Touba.
BANK OF AFRICA - CÔTE D’IVOIRE 10 Abidjan
8 Bouaké, Daloa, Gagnoa, Korhogo,
San Pedro, Sinfra, Soubré, Yamoussoukro.
REPRESENTATIVE OFFICE 1 Paris, France
BANK OF AFRICA FOUNDATION Bamako
7 Abidjan, Antananarivo, Cotonou,
Dakar, Kampala, Niamey, Ouagadougou.
1 contact in each BOA company
BOA-ASSET MANAGEMENT Abidjan
BANK OF AFRICA - UGANDA 9 Kampala
10 Arua, Entebbe, Fort Portal, Gulu,
Jinja (2), Lira, Mbale, Mbarara, Mukono.
BOA BANK - TANZANIA 8 Dar es Salaam
4 Arusha, Morogoro, Moshi,
BANK OF AFRICA - RDC 1 Kinshasa
BANQUE DE CREDIT DE BUJUMBURA (BCB) Integrated into BOA network in 2008.
9 Gihofi, Gitega, Kayanza, Kirundo, Muyinga, Ngozi,
Rumonge, Rugombo, Ruyigi.
Branch Regional branch Local branch Head office Liaison office
p Banks and Subsidiaries at end 2009
BANK OF AFRICA - MADAGASCAR 18 Antananarivo
43 Throughout the country.
BANK OF AFRICA - KENYA 6 Nairobi
3 Kisumu, Mombasa, Thika.BOA - FRANCE 1 Paris, France
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BANK OF AFR ICA - UGANDA / ANNUAL REPORT 20092
Group Strong points
A strong network More than 3,000 people at your service.
Major holding in several life insurance companies.
About 250 dedicated operating and service support offices in 13 countries, excluding affiliated partners.
A continuously expanding fleet of Automated Teller Machines and Electronic Payment Terminals.
Over 700,000 bank accounts.
A wide and varied offer Full range of banking and financial services.
Attractive range of life insurance policies.
Tailored solutions for all financing issues.
Successful financial engineering.
Quality of customer service
Dynamic, accessible staff
A wide range of financing solutions
Expertise in financial engineering
Strategic partners, including: BANQUE MAROCAINE DU COMMERCE EXTÉRIEUR (BMCE BANK),
INTERNATIONAL FINANCE CORPORATION (IFC - WORLD BANK GROUP),
WEST AFRICAN DEVELOPMENT BANK (BOAD),
NETHERLANDS DEVELOPMENT FINANCE COMPANY (FMO),
BELGIUM INVESTMENT COMPANY FOR DEVELOPING COUNTRIES (BIO),
and investment fund AUREOS.
Unique experience in Africa Continuous development for almost 30 years.
Group turnover in
±270 million €
BANK OF AFR ICA - UGANDA / ANNUAL REPORT 20094
Main products of the Bank BANK OF AFRICA english speaking network BOA-UGANDA Ltd
Accounts Current Account (Local & Foreign Currency) Remunerated Current Account
Investment Products Call Deposits Account Chama Account Children Savings Account « Watoto » Classic Savings Account Family Savings Account Ero Savings Account Forexave Account Gold Plus Account Investment Plan Account Ordinary Savings Account Premium Plus Fixed Deposit Reward Savings Account Schools Fees Account Senior Citizen Fixed Deposit SESAME Savings Account Student Investment Teams Term Deposit
Electronic Banking B-Web B-SMS / B-Phone SESAME ATM Card
Loans & Advances 2-in-1 Loan Bridging Overdraft Instant Cash Motor cycle Loan Motor vehicle Loan Personal Loans Personal motor Loan Salary Advance Schools Fees Loan Super Kikapu
BOA Company Services BOA-UGANDA Ltd also offers a wide range of products and services to the attention of Corporates and, SMEs, Organizations, Institutionals and Professionals.
Transfers Foreign Exchange and foreign exchanges Moneygram
Travellers Cheques Western Union
Complementary Products & Services Banker’s Cheques
Activity Report 2009
Making life easier
The Ugandan economy remained resilient and is estimated to have grown by 7% in 2008/9 despite the effect of the recession in the advanced and emerging market economies emanating from the Global financial meltdown. The resilience of the economy stems from the sound macroeconomic management, robust regional and diversified trade and economic reforms. The growth momentum is expected to be carried forward into Financial Year 2009/10 onwards taking into account the current oil exploration and development activities in the country.
In the first half of the year, monetary policy remained focused on maintaining price stability, providing a conducive environment for financial intermediation, thus supporting robust private sector growth. The inflation rate averaged 14.1% in 2008/9 on account of higher food prices and imported inflation. It later eased to 10.9% in December 2009. The Shilling depreciated by 30.8% against the U.S. Dollar from an average of Shs1,634 per US$ in July 2008 to Shs 2,137 in June 2009. However, it improved in the last half of 2009 and closed the year at Shs1,905.
2009 saw no new entrants in the banking sector. However, there was a vigorous expansion drive by a few banks out of Kampala. Launched in December 2008, the Credit Reference Bureau and the Financial Card System have gained momentum as infrastructure for information sharing by banks. The issuance of the Financial Card with unique client identification came in handy in the absence of a National Identification System. This coupled with the sound supervision of the banking sector by the Central Bank resulted in the relatively low level of the non-performing assets.
BANK OF AFRICA – UGANDA (BOA-UGANDA) continued with its expansion strategy and increased its foot print to garner more business by opening four branches, two of which are upcountry, one in Kampala and the other in Entebbe Municipality.
Comments from the Managing Director
BANK OF AFR ICA - UGANDA / ANNUAL REPORT 20096
In so doing it created more employment opportunities. In pursuit of its strategy to introduce new products, the Bank started on negotiations for new credit lines, results of which are expected in 2010. The shareholders also increased the capital base by a further Shs. 4 billion in rights issue to support the expansion drive and the ever increasing customer financing needs. The Bank implemented performance management system to monitor staff performance and assess their productivity as a basis of enhancing their career development and efficiency. As a commitment to serve our customers better and promote excellence, the bank developed a Customer Service Charter which is accessible in all banking halls.
As a result of the above efforts, the asset base grew by 29% with the biggest part contributed by loans and advances to customers as well as investment in securities. The growth in asset base was mainly funded by customer deposits which also grew by 25%. Net profit for the year was Shs 3,3 billion.
As a way of giving back to society, BOA-UGANDA was involved in a number of initiatives including donation of specialized beds to the Neurosurgery ward of Mulago Hospital, support of a financial literacy program to 1,000 primary school pupils and a mentorship activity for Small Business enterprises. The branches also performed various activities in their localities including donation of wheel chairs to disadvantaged groups and participation in community work.
On behalf of the BOA-UGANDA fraternity, I wish to acknowledge the significant contribution by all our stakeholders and more so our esteemed customers whose loyalty has seen us grow from strength to strength. It has been our privilege and pleasure to serve you in the past years and