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UDB’s post-tax profit more than doubles in 2020

It was good business for Uganda Development Bank (UDB) in 2020 as it realized a post-tax profit of Shs 22.1 billion, more-than doubling from Shs 10.1 billion earned in the year 2019.

The good performance was announced recently as UDB held its Annual General Meeting (AGM) that among others considered the financial performance for the year ended December 31, 2020. Minister for Finance Matia Kasaija and State Minister for Finance for Investment and Privatization Hon. Evelyn Anite attended the meeting.

 “The bank will continue to leverage its equity to diversify its sources for funding required to finance its investments whilst undertaking interventions to optimize its financial, human, technology, and other resources, with the view to bolster operational efficiency,” said the bank’s CEO Patrica Ojangole.

To protect shareholder value, Ojangole said UDB will continue to exercise prudence at business sourcing to proactively manage its credit risk and undertake any feasible supportive interventions that aim to resuscitate distressed customers’ businesses.

Other highlights

·         Gross loans grew by 54% from Shs354 billion in 2019 to Shs557 billion at the end of 2020.

·         The bank’s interest income improved to Shs72.1 Billion, up by 72% from Shs42 billion in 2019.

·         Balance sheet grew by 124% from Shs486.4 billion to Shs1 089.8 billion on the back of improved Government of Uganda funding contributions totaling Shs510 billion in 2020.

·         The bank also drew down on the lines of credit held with its funding partners, deploying additional Shs68 billion in 2020, and therefore giving rise to a 65%% uplift in total borrowings to Shs143. 49 billion from Shs87.22 billion in 2019.

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