Uchumi Commercial Bank (UCB) has posted an impressive financial performance in the face of the global financial crisis, exacerbated by the ongoing Russian-Ukraine conflict. Speaking at the 17th Annual General Meeting held over the weekend, UCB Chairman, Mr. Wilson Ndesanjo, unveiled a remarkable 111 per cent surge in net profit, with earnings of 1.15bn/- in the past year, up from 0.54bn/- the year before.
Highlighting the bank's robust financial health, Mr Ndesanjo announced, “The Board of Directors has proposed to allocate 75 per cent of the 2022 profit as bonus shares to shareholders listed by 31st July 2023. The remaining 25 per cent will fortify our retained earnings.”
UCB's financial report showcased the bank's strategic focus on branch expansion and infrastructure development, catering to both existing and new clientele. This foresight is reflected in their operating income, which rose by 14.37 per cent to 5.88bn/- in the past year, compared to 5.14bn/- in 2021. Additionally, non-interest income showed a healthy growth, standing at 1.07bn/-, a marked improvement from 0.86bn/- in 2021.
The bank, however, increased its provision for loans, advances, and investment to 35m/-, a rise from 20m/- the previous year. In terms of capital, UCB recorded a marginal increase of 0.87 per cent, pushing the paid-up capital to 10.21bn/- from 10.09bn/- in 2021. Simultaneously, the capital-to-risk weighted assets ratio saw a dip, moving from 25 per cent in 2021 to 23 per cent in 2022.
On a brighter note, UCB's total assets witnessed growth, increasing by 5.18 per cent to 48.49bn/- in the past year, up from 46.1bn/- in 2021. Deposits also trended upward, growing by 2.7 per cent to reach 35.8bn/- from 34.87bn/-.
The bank's outstanding performance, amidst global uncertainties, underscores its resilience and forward-looking strategies, reinforcing confidence among its stakeholders.