By Patrick Kagenda
Crane Bank assets have crossed the Ushs1 trillion mark, making Crane Bank and Centenary Bank, the only two local banks with over Ushs1 trillion in assets. This milestone was revealed by Mr AR Kalan, the bank’s Managing Director, during the occasion to officially launch the all new Crane Bank branch in Jinja Municipality. The new branch is housed in an ultra modern custom designed complex, akin to other Crane bank branches and replaces the bank’s old Branch formerly located on Lubas road.
The new US$ 3 million complex is now located on the High Street. There are only a total of 5 commercial banks with assets in excess of Ushs1 trillion. The other three are Standard Chartered Bank, Stanbic and Barclays all of which are not locally owned. Addressing a mammoth gathering at the opening of the branch a visibly excited Kalan said that the opening of the new branch fits within the bank’s ongoing expansion plan that will see the bank open 50 branches by 2015.
The new Jinja Crane bank structure
He also said that the bank’s reserves had hit Ushs300 billion, making the bank one of the most capitalized in the industry which strength would be used to finance the bank’s ongoing expansion and product development. “We believe in taking services closer to the people,” he said. To date the bank has opened 34 branches and seeks to open another 6 by the end of the year.
Kalan said that, the bank’s long awaited IPO will open early 2014, giving a chance to Ugandans to own part of one of Uganda’s most successful banks. Speaking at the opening of the new Crane Bank branch, the central bank Governor Professor Emmanuel Tumusiime Mutebile hailed Crane bank and its shareholders for their continued efforts to fulfill the bank’s strategic objective of expanding outreach to ensure proximity and adding convenience to the banks delivery channels, both of which are intended to serve existing and prospective customers better.
In his speech, governor Mutebile said the re-location of the Jinja branch provides an excellent business opportunity for Crane Bank and a convenient location for the customers because of its better proximity to several government offices, and other facilities that include restaurants, petrol stations, and private offices.
The bank that has for long been in arrangements to pursue expansion plans in Rwanda, the DRC and South Sudan recently got a license to operate in Rwanda and to this Governor Mutebile said, “I am pleased to announce that on addition to the local expansion initiatives Crane Bank has regional ambitions and recently secured a license to commence commercial banking operations in Rwanda.”
Professor Mutebile added that, “The decision for a local bank to venture outside the country`s borders is a welcome development that is expected to ease the transactions for businesses with a regional focus and presence to spur growth and support the regional integration process”. On Crane Bank’s proposed listing at the Uganda Securities Exchange (USE), Mutebile said, “listing on the bourse is one of the most important steps in the area of transparency, capital accumulation, business expansion and achievement of great business vision.”
Mutebile said the central bank is committed to fostering a sound and inclusive financial system through the promotion of affordable financial services and access to a variety of service delivery channels. He highlighted the ongoing initiatives to improve financial literacy among the Ugandan population as well as consumer protection initiatives that are all intended at fostering confidence and growth in the financial services sector.
The bank is a mid-sized financial services provider and is involved in all aspects of commercial banking with a focus on the provision of banking services to big institutions, foreign embassies and non-governmental organizations and their staffs and the general public. As at December 2012, Crane Bank was the 4th largest commercial bank in the country with an asset value of approximately US$469 million and shareholder’s equity in excess of US$101.6.
In August 2013, its customer base was estimated at 100,000 and growing. Crane bank is a part of the Ruparelia Group of Companies whose business interest includes: Insurance, Hospitality, Education, Media, Horticulture, Property Ownership and Management. The bank that was established in 1995 has over the last one year alone added 8 new branches to its network. Crane bank offers an interest of up to 14% on savings and is the only commercial bank that offers interest even on a current account.