Government endorses UDB’s request to retain Shs9.58 bn profits

Government has endorsed Uganda Development Bank (UDB)’s request to retain Shs9.5bn, profits which it earned last year.

Last week on Thursday, the fully state-owned bank made a request to the government that it needed more financial empowerment so that it can ably lend more businesses in Uganda.

The request follows its good performance last year where it posted 14 per cent growth profits. However, as the policy requires, the money, about Shs9.5bn, was supposed to be taken by Ministry of Finance for national budget allocations.

Patricia Ojangole, the UDB  Chief Executive Officer, said the bank has gradually improved its performance every Financial Year. Currently the bank’s growth in net profits, loan book and the overall balance sheet is at Shs370bn in 2018 from Shs297 in 2017.

“All these achievements have been reached, through our new strategic plans. Last year our profits increased by 14 per cent from Shs 8.3bn in 2017 to Shs9.5bn, the loans also grew up by 28 per cent from Shs242bn to Shs 309bn our total income also grew up tremendously by 31 per cent from Shs31bn to Shs41bn,” said Ojangole during a press conference last week. She added that although the institution performed better, it stills need more money.

Allan Mwesigye, Director strategy and Cooperate Affairs also added that the demand for credit is still very high that is why they need more support.

Following their plea, on Tuesday Minister of Finance Planning and Economic Development Matia Kasaija accepted their request

Kasaija nevertheless cautioned the bank management on prudent follow up of projects that it finances in order to maintain non-performing loans in the development of lending institutions.

“I have told every bank that when you lend out money don’t sleep, you should follow up everyone you lend that is how you will be able to perform better than last year and the state will be secure to have you,” said Kasaija while addressing journalists at the ministry’s headquarters.