BANK OF AFRICA - UGANDA ANNUAL REPORT 2009 BANK OF AFRICA - UGANDA / ANNUAL REPORT 2009 Group Banks

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Transcript of BANK OF AFRICA - UGANDA ANNUAL REPORT 2009 BANK OF AFRICA - UGANDA / ANNUAL REPORT 2009 Group Banks

  • BANK OF AFRICA - UGANDA ANNUAL REPORT

    2009

    Life in colours

  • BANQUE DE L’HABITAT DU BENIN 1 Cotonou

    Group

    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

    2009 10-11

    Board of Directors, Capital 12

    REPORT

    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

    (Kayes).

    BANK OF AFRICA - NIGER 6 Niamey

    6 Agadez, Dosso, Gaya, Maradi,

    Tahoua, Tillaberi.

    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.

  • 1

    REPRESENTATIVE OFFICE 1 Paris, France

    BANK OF AFRICA FOUNDATION Bamako

    7 Abidjan, Antananarivo, Cotonou,

    Dakar, Kampala, Niamey, Ouagadougou.

    ACTIBOURSE Cotonou

    1 contact in each BOA company

    1 Abidjan.

    BOA-ASSET MANAGEMENT Abidjan

    AGORA

    AÏSSA

    ATTICA

    EQUIPBAIL-BENIN

    EQUIPBAIL-MALI

    EQUIPBAIL-MADAGASCAR

    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,

    Mwanza.

    BANK OF AFRICA - RDC 1 Kinshasa

    BANQUE DE CREDIT DE BUJUMBURA (BCB) Integrated into BOA network in 2008.

    3 Bujumbura

    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

    OZAL_TANZANIA_GB_BOA_2009-10_EXE.qxd 13/07/10 12:13 Page 1

  • 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

    Financial solidity

    Cohesive network

    A wide range of financing solutions

    Expertise in financial engineering

    Strong partners

  • 3

    Strategic partners, including: BANQUE MAROCAINE DU COMMERCE EXTÉRIEUR (BMCE BANK),

    PROPARCO,

    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

    2009

    ±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

    5

  • 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