FROM NTV NEWS
A slowdown in the growth of deposits plus increased provisions for bad loans in the small and medium business segment could adversely affect the performance of Ugandan banks this year, a new report says.
The report, published by the African Alliance Uganda, cited slow economic recovery as a major challenge facing industry performance this year.
This is largely reflected in the weak consumer spending patterns across many sectors, widespread closure or stagnation of small businesses, postponement of new projects funded by big companies and reduced tax collections.
Total industry deposits grew by 12 per cent to Ush11.5 trillion ($4.3 billion) as at the end of June 2014, compared with the 17 per cent growth recorded during the same period in 2013, according to the African Alliance report.
The share of industry deposits held by top lenders fell during the same period while some small lenders saw their market share rise slightly on account of new gains from increased competition for retail deposits.
Written by BERNARD BUSUULWA/ Read more at NTV NEWS
