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Uganda Development Bank posts profit of Shs10.14 billion
What you need to know:
- The bank’s net interest increased by 17 per cent to Shs38.9 billion from Shs33.2 billion in 2018. The bank explains that interest and similar income grew by Shs6.5 billion representing 18 per cent in 2019 as a result of a 15 per cent growth in the gross loans and advances.
Uganda Development Bank (UDB), has posted a net profit of Shs10.14 billion indicating a growth of 7 per cent up from Shs9.49 billion in 2018.
The bank’s financial results that were published on Friday indicate that the balance sheet grew by 31 per cent to yield at Shs486.37 billion.
“This was supported by a 74 per cent increase in the government of Uganda capital contributions, improving from Shs48.15 billion in 2018 to Shs83.73 billion in 2019. Additionally, the bank drew down various lines of credit with its development partners during the year resulting in a 22 per cent increase in borrowing from Shs97.03 billion in 2018 to Shs118.00 billion in 2019,” UDB’s managing director Patricia A. Ojangole said.
Ms Ojangole said UDB also generated various funding relationships that are expected to mature in the short to medium-term and will continue to leverage its equity source alternative funding opportunities to support its investment activities.
“Moving forward, we remain cognizant of the need to embed sustainability in our operations and to align our interventions to national priorities as enshrined in Uganda’s Vision 2040 and the National Development Plan three. The bank has revived its strategic plan to cover the next five year period 2020-2024 to include sustainability strategy,” she said.
The bank’s assets increased by 31 per cent from Shs370 billion to Shs486 billion on the back of the increase in the government of Uganda capital contribution as well as the drawdown of lines of credit.
The financial results show that gross loan and advances rose by Shs46 billion, which indicates 15 per cent growth during the year. During this period, the bank disbursed Shs183.9 billion to projects in 2019 compared to Shs154.5 billion in 2018 representing a 19 per cent growth.
The bank’s net interest increased by 17 per cent to Shs38.9 billion from Shs33.2 billion in 2018. The bank explains that interest and similar income grew by Shs6.5 billion representing 18 per cent in 2019 as a result of a 15 per cent growth in the gross loans and advances.
