Increased government capitalisation has helped Uganda Development Bank (UDB) to register growth in profitability to Shs10.14b.
The increase indicates a 7 per cent growth for the period ended December 31, 2019 from Shs9.49b which the bank posted in 2018.
UBD, according to data contained in its financial results, received additional capital from government of Shs87.7b in the period compared to Shs49.1b in 2018.
This represent a 79 per cent increase, which brings government contribution to Shs375b.
Ms Patricia A. Ojangole, the UDB managing director, said the bank had in the period seen tremendous improvements across the board with lending growing by Shs22b from Shs97.03b in 2018 to Shs118b in 2019.
However, she noted that the bank was cognizant of the need to embed sustainability in its operations by aligning its interventions to national priorities, which will be driven by the revived strategic plan that will cover the bank’s activities in the next five year (2020-24).
Ms Ojangole also noted that during this year, the bank will support interventions that seek to reduce poverty, build a sustainable food system and those that seek to promote industrialisation.
The bank’s assets increased by 31 per cent from Shs370b to Shs486b on the back of increase in capital contribution and drawdown of lines of credit.
Loans and advances rose by Shs46b, a 15 per cent increase while disbursed projects stood at Shs183.9b in 2019 compared to Shs154.5b in 2018.
Net interest increased by 17 per cent to Shs38.9b from Shs33.2b in 2018 while interest and similar incomes grew by Shs6.5b representing 18 per cent in 2019 as a result of a 15 per cent growth in the gross loans and advances.
UDB mainly seeks to promote employment through targeted sectoral lending.
According to Uganda Development Bank, male employment increased from 14,826 to 11,095 in 2019 while female employment increased from 9,144 to 10,218.