UDB profits increased by 76 percent from Shs22.1 billion in 2020 to Shs38.8 billion in December 2021. (Sh38.8 billion will be reinvested in UDB in order to build strong capital stocks )
The government has stated that it will reinvest the Sh38.8 billion profits made by Uganda Development Bank (UDB) during the fiscal year ending December 2021.
The decision aims to create long-term capital buffers that will allow UDB to support business expansion.
Ms Patrice Ojangole, the managing director of UDB, stated on the sidelines of the annual general meeting that they remain committed to contributing to social-economic transformation and will focus on capital mobilization in 2022 and beyond.
She stated that this will entail implementing an industrialization strategy, promoting import replacement and exports, and increasing financial inclusion among SMEs, women, and youth.
“During the annual general meeting, shareholders approved the retention of Shs38.8 billion as capital to finance development projects.” “Capital contributions will continue to be critical in facilitating growth in our investment portfolio,” she said.
UDB profits increased by 76 percent from Shs22.1 billion in 2020 to Shs38.8 billion in December 2021.
According to UDB, this is due to the bank’s continued capitalization growth, as well as an increase in investment in interest-earning assets, specifically loan disbursement to development projects.
During the period, interest and fee income increased to Shs112.9 billion from Shs72.1 billion, while net loans increased by 53% to Shs781.7 billion from Shs511.9 billion.
The bank’s balance sheet increased from Shs1.089 trillion to Shs1.22 trillion, owing to increased earnings from agro-processing and manufacturing, which increased by 50% and 33%, respectively.
UDB-funded enterprises generated Shs2.445 trillion in output value, contributing Shs84 billion in taxes.
UDB has been at the forefront of a number of initiatives launched by the government to protect business operations from the effects of Covid-19. (Sh38.8 billion will be reinvested in UDB in order to build strong capital stocks – celebrity jazz ug )
