Tropical Bank drafts capital restoration plan
Tropical Bank head offices in Kampala, Uganda. Photo | File
What you need to know:
- The bank’s total expenditure grew to Shs53.6 billion, up from Shs48.9 billion in 2018
As Tropical Bank works on a Capital Restoration Plan, its shareholders have injected Shs3.8b as additional capital into the bank to get back to the minimum required position.
A statement released by Bank of Uganda yesterday, notes that before the publication of Tropical Bank’s audited financial statement, Bank of Uganda in accordance with section 86 of FIA 2004, had directed the bank to submit a capital restoration plan.
“This directive was compiled with before the end of March 2020. During this time, the shareholders injected additional capital amounting to Shs3.8 billion. The implementation of the submitted Capital Restoration Plan is ongoing, and is in accordance with the timeliness specified in Section 86 of the FIA 2004, which allow for up to 180 days for this process,” read a part of the statement.
Loss
This follows the bank’s Shs23.9 billion loss for the year ended December, 2019 compared to Shs5.7 billion in 2018. The bank’s core capital stood at Shs21 billion, below Shs25 billion which is a minimum requirement by a difference of Shs3.8 billion.
The bank’s total expenditure grew to Shs53.6 billion, up from Shs48.9 billion in 2018.
However, total assets grew to about shs316 billion from shs289.5 billion and Customer deposits grew to shs223 billion compared to shs182 billion in 2018.
Meanwhile, Interest on deposits and placements dropped to shs1.4 billion from shs1.8 billion in 2018.
The total income of the bank grew to Shs44 billion from Shs39.7 billion due to increase in interest on loans and advances to Shs28.9 billion from Shs24 billion in 2018.
The bank’s non-performing loans and other assets stood at Shs16 billion, down from Shs21.9 billion and at least Shs14 billion were written off as bad debts.
Core capital
The bank’s core capital stood at Shs21 billion, below Shs25 billion which is a minimum requirement by a difference of Shs3.8 billion.
Bank of Uganda in accordance with section 86 of FIA 2004, had directed the bank to submit a capital restoration plan.
