Bank of Baroda half year profit up 28%

Bank of Baroda head offices in Kampala. Photo: Edgar Batte/Uganda Business News
Bank of Baroda head offices in Kampala. Photo: Edgar Batte/Uganda Business News

Bank of Baroda Uganda posted after-tax profits of Shs24.98 billion in the first half of this year compared to Shs19 billion in the same period last year, a growth of 28.59%, according to unaudited results released today.

The bank, which is listed on the Uganda Securities Exchange, also saw its total income in the first half rise 20.81% to Shs83 billion from Shs69 billion the previous year.

It earned most of its income from interest on loans and advances which rose 23.49% to Shs46 billion. Interest earned on deposits and placements nearly doubled, increasing to Shs4.36 billion from Shs2.21 billion last year, a growth of 97%.

Interest on securities increased by 24% to Shs23.65 billion. Income from fees and commissions rose 95.63% to Shs7.52 billion in the first half from Shs3.84 billion last year.

The bank’s total expenditure increased by 17.64% to Shs52 billion in the first half from Shs44 billion in the same period last year. The largest share was interest expenses on deposits, at Shs28 billion in the first half compared to Shs26 billion last year, a growth of 7.42%. Operating expenses more than doubled, however, to Shs9.47 billion from Shs4.54 billion last year, a growth of 108.38%.

The bank’s loan book grew by 4.14% to Shs568 billion in the first half from Shs545.69 billion in the same period last year. It however fell 6.64% from 31 December 2015 when loans and advances were Shs608.73, indicating that the bank has reduced its lending.

The ratio of gross non-performing loans as a percentage of total loans and advances in the first half rose to 2.81%, however. It was 1.43% in the same period last year, and 1.16% at the end of last year. Non-performing loans in the first half were Shs15.95 billion compared to Shs7.81 billion in the same period last year, a growth of 104.02%. Non-performing loans in December 2015 were Shs7 billion.

Deposits in the first half increased by 10.89% from the same period last year, growing to Shs985.75 billion. They have grown by 4% since 31 December 2015 when they were Shs947.82 billion.

Total assets rose 10.76% to Shs1,280 billion from Shs1,155.90 billion in the first half of last year, and Shs1,202.95 billion as at 31 December 2015, an increase of 6.43%.

Shareholders equity rose 18.53% to Shs253 billion in the first half. The return on shareholders’ equity during the period was 9.87%.

The company’s board of directors did not recommend payment of an interim dividend.