Uganda Development Bank gains net profit of Shs10.14 billion

The Uganda Development Bank (UDB), has gained a net profit of Shs10.14 billion indicating a growth of 7 percent up from Shs9.49 billion in 2018, according to a news report by The Monitor.

The bank's financial result was posted on May 8 that showed the balance sheet grew by 31 percent to yield at Shs486.37 billion.

 UDB's managing director, Patricia A. Ojangole said, "This was supported by a 74 percent 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 percent increase in borrowing from Shs97.03 billion in 2018 to Shs118.00 billion in 2019."

According to Ojangole, Uganda Development Bank (UDB) has 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 percent 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.