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Growth in loan book boosts UDB’s profits
Ms Ojangole says UBD remains committed to fostering inclusive economic growth through strategic investments in sectors that drive sustainable development and job creation. Photo / Courtesy
What you need to know:
- Ms Patricia Ojangole says the performance highlights the bank’s pivotal role in fostering economic resilience and sustainable growth across key sectors of the economy
Uganda Development Bank (UDB) has reported a 17 percent growth in profits, supported by a 20 percent rise in its loan book.
The growth, Ms Patricia Ojangole, the UDB managing director, noted highlights the bank’s pivotal role in fostering economic resilience and sustainable growth across key sectors of the economy.
A report released after the bank’s annual general meeting indicates that UDB realised a post-tax profit of Shs49.8b in the period ended 2023, which was a 17 percent growth from the Shs42.6b recorded in 2022.
This was largely supported by a 20 percent growth in loans and advances, which during the period, increased to Shs1.47 trillion from Shs1.22 trillion, underpinned by Shs610b new loan disbursements.
UDB also indicated that it had reinvested Shs467b it collected as repayments from its borrowing customers and deployed Shs97.3b received from government as additional capital contributions, complemented by an additional Shs120.5b in drawdowns from various lines of credit held with its funding partners, to boost its assets position.
During the period, Ms Ojangole said, UDB remained committed to fostering inclusive economic growth through strategic investments in sectors that drive sustainable development and job creation across Uganda.
“Our focus on key priority sectors underpins our mission to deliver high socio-economic value and support Uganda’s long-term development,” she said.
UDB largely supports companies or organisations involved in value addition, key among which include manufacturing, agro-processing and tourism.
The report also indicates that UDB approved funding of Shs610 in new loans to more than 200 enterprises in 63 districts, which upon full implementation, are expected to create 18,558 new jobs and generate an output value of Shs11.4 trillion, from which Shs616b will be generated as tax revenue and Shs3.34 trillion in foreign exchange earnings.
