Africa-Press – Uganda. NCBA Group invested Shs22.6b ($6.08m) into its Ugandan subsidiary for the period ended December 2022.
This was part of the Shs155.83b ($41.89m), which the Kenyan-based financial institution injected into its three subsidiaries in Uganda, Tanzania and Rwanda to shore up capital to enhance its competitiveness.
The move is part of the bank’s efforts to shore up its regional retail banking business and avert more financial bleeding through the struggling subsidiaries.
NCBA, which is listed on the Nairobi Securities Exchange (NSE), disclosed in its annual report that its combined investment in Rwanda, Uganda and Tanzania increased by Shs90.9b ($24.46m) in 2022 and Shs64.8b ($17.43m) in 2021.
Last year, the lion’s share of the additional funding totaling Shs54.6b ($14.96m) went to strengthen operations in the Tanzanian subsidiary, whose losses worsened to Shs49.2b ($13.24m) from Shs31.9b ($8.6m) in 2021. NCBA also injected Shs12.7b ($3.42 million) in Rwanda.
Audited financial statements show the group’s net profit for the year ended December 31, 2022 grew by 34.76 percent to Shs372b ($100.05m) from Shs288b ($77.42m) in 2021 on the back of increased income on forex trading and investment in government securities.
The bulk of the earnings Shs403.5b ($108.48m) were generated by the Kenyan operations.
The Ugandan subsidiary returned a net profit of Shs21.3b ($5.74m) from a loss of Shs13.4b ($3.61m) in 2021, while the Rwandan subsidiary increased its net profit to Shs12.9b ($3.49m) from Shs2.3b ($623,673.81) in 2021.
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