What you need to know:
- During the period ended December 2021, UDB profits grew by 76 percent from Shs22.1b in 2020 to Shs38.8b.
Government has said it will reinvest the Shs38.8b profits made by Uganda Development Bank (UDB) during the period ended December 2021.
The decision seeks to create sustainable capital buffers through which UDB will support business expansion.
Speaking on the sidelines of the annual general, Ms Patrice Ojangole, the UDB managing director, said they remain resolute on making a contribution to social-economic transformation, and will in 2022 and beyond, focus on mobilisation of capital.
This, she said, will involve undertaking implementation of an industrialisation strategy, import replacement and export promotion as well as deepening financial inclusion among SMEs, women and youth.
“Shareholders during the annual general meeting allowed us to retain the Shs38.8b as capital to finance development projects. Capital contributions remain key in facilitating growth in our investment portfolio,” she said.
During the period ended December 2021, UDB profits grew by 76 percent from Shs22.1b in 2020 to Shs38.8b.
This, UDB said, resulted from continued growth in capitalisation of the bank coupled with an increase in investment in interest-earning assets notably loan disbursement to development projects.
During the period, interest and fee income grew to Shs112.9b from Shs72.1b while net loans grew by 53 percent to Shs781.7b from Shs511.9b.
The bank’s balance sheet grew to Shs1.22 trillion from Shs1.089 trillion, supported by increased earnings from agro-processing and manufacturing, which rose by 50 percent and 33 percent, respectively.
Enterprise funded under UDB generated Shs2.445 trillion in output value thus contributing Shs84b in taxes.
UDB has been at the forefront of a number of initiatives through which government is seeking to buttress business operations from the impact of Covid-19.