2018 performance highlights
Loans and advances grew by 5% as we focused on the asset quality of our consolidated book, which resulted in reduction in the impairment expenses by 61% from UGX 49 billion to UGX 19 billion.
Customer deposits remained stable at UGX 1.9 trillion as we focused on our strategy of growing the current and savings deposits that are a more cost-effective source of funding, which resulted in a 11% reduction in the interest expense from UGX 88 billion to UGX 78 billion.
Total assets reduced by 5% from UGX 3.1 trillion to UGX 2.9 trillion due to repayment of borrowed funds and subordinated debt. This resulted in a 39% reduction in our interest expense from UGX 44 billion to UGX 27 billion.
Non-funded income in terms of fees and commissions grew by 29% from UGX 40 billion to 51 billion as we continue to harness the benefits of the investments in technology and growth in the customer base.
The Group posted total profit after tax of UGX 60.9 billion, which was lower than the previous year that included a one-off item of UGX 119 billion which arose from the business combination
Dividents: The Board is recommending a cash dividend of Shs 33.01 per share less withholding tax where applicable (2017: Shs 68.24 per share). The shareholder’s register will be closed on 10 July 2019 with respect to entitlement to this dividend which will be paid by 31 July 2019.The Annual General Meeting will be held on 13 June 2019. The related details shall be availed in a later communication.
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