STATEMENT FROM THE MANAGING DIRECTOR
SHASHI DHAR, MANAGING DIRECTOR
It is my pleasure to share the Bank's financial statements for the year ended December 31, 2022. The Bank's performance for year 2022 is an exemplification of great suppleness, customer centrism, prudent leadership and sustained focus on leveraging technology for customized banking experience and enhanced reach.
Overall 2022, was a good year for the Bank in terms of performance & growth as the Bank witnessed growth in almost all major financial parameters. The Bank constantly worked on its strength and objectivity resulting with to 35.41% growth in its profitability. The Profit After Tax (PAT) of the Bank grew from Ushs 90.23 billion in 2021 to Ushs 122.19 billion in 2022. The credit portfolio of the Bank also crossed the desired UShs 1 Trillion during the year with terminal figures of UShs 1.089 Trillion. The total interest earned by the Bank during the year 2022 grew by 23.04% as compared to 2021. The Bank was also instrumental in reducing its operational expenses from UShs 41.99 billion in 2021 to UShs 37.01 billion in 2022. These figures are testimony of robust system and standardized processes being implemented by the bank.
During the year 2022, while complying with the directives of Bank of Uganda, the Bank also initiated the process of capital restoration to UShs 150 billion as compared to the existing UShs 25 billion. The Bank is in desired path and is expected to complete the task before the stipulated timelines.
In order to ensure convenient, efficient and fast service to our esteemed customers, the Bank has further leveraged technology by improving its digital banking channels and enhancing the customer experience. These include Baroda- Connect Internet Banking,
Baroda M Connect Plus Mobile Banking, Agent Banking, Cash Recyclers, Visa enabled ATMs among others. The Bank further upgraded its risk, compliance and asset management systems through technological innovations and enhancing its Core Banking System provisions.
During the year 2022 the Bank was bestowed with various accolades by different independent agencies. The Bank was conferred with the First Prize Winner as Most Compliant Bank category by Uganda Revenue Authority (URA) for the financial year 2021-2022.The Bank was also adjudged Best Consistent and Competent Bank under People's Choice Quality Award for the third consecutive time (Year 2022/2023). These awards are the testimony of the trust and belief people of Uganda have on the Brand Bank of Baroda.
During the year 2023 the Bank foresees substantial growth in credit exposure and enhanced interest income. The Bank is also planning to further digitalize its processes for reducing the turn around time and enhancing the customer experience.
I take this opportunity to place my sincere thanks and gratitude to the Government of the Republic of Uganda and Bank of Uganda (the Central Bank), Capital Market Authority and Uganda Securities Exchange for their valuable guidance and continued support in strengthening the operations of the Bank. I express my deepest gratitude to all our employees, esteemed customers and shareholders for their continuous support and patronage.
PERFORMANCE AT A GLANCE
COPORATE SOCIAL RESPONSIBILITY
UShs in Millions | UShs in Millions | |
Profit Before Tax
Profit Before Tax | UShs in Millions | Balance Sheet Size | UShs in Millions | |
Bank of Baroda (Uganda) Limited, led by the former Managing Director Mr. Raj Kumar Meena donating Scholastic
Material, food among other basic needs to an orphanage school (ABC Nursery and Primary School, Naeete) on 20.07.2022,
after refurbishing the school toilets and painting the school buildings.
Total Business
UShs in Millions | UShs in Millions |
Total Business
Mr. Raj Kumar Meena, the former Managing Director handing over | The former Managing Director Mr. Raj Kumar Meena (left) and Executive Director | |
food and scholastic materials to children suffering from Cerebral | Mr. Prithvi Singh Bhati present a cheque to Ms Annet Nakamya - Chairperson | |
Uganda Badminton Association to support preparations for the All Africa Para | ||
Palsy during the World Cerebral Palsy awareness day held at | ||
Badminton International Tournament which was hosted by Uganda at Lugogo Indoor | ||
Capital Center Medical Clinic on 06.10.2022. | ||
stadium from 11.09.2022 to 25.09.2022 | ||
The former Managing Director R. K Meena appreciating a customer for | ||
Bank of Baroda (Uganda) Limited, led by the former Managing Director Mr. Raj | ||
donating blood, during Parent Bank's Foundation day celebrations on | ||
Kumar Meena donating food and house hold necessities to Orphans and widows of | ||
20.07.2022. | ||
HIV, Nsambya during Bank's Foundation day celebrations on 17.12.2022. | ||
SERVING THE PEOPLE OF UGANDA SINCE 1953
Bank's Branches: Kampala Main/Railway Station/Jinja/Mbale/Mbarara/Iganga/Kansanga/Kawempe/Lira/Mukono/Ovino Market/Kabale/Entebbe/Industrial Area/Kololo/Lugazi/Arua Off-SiteATM Namanve-Mukono | Njeru Industrial Area, Jinja
Head Office: Plot 18, Kampala Road, P.O.Box 7197, Kampala, Uganda. Tel: 0414-233680
Bank of Baroda (Uganda) Limited is regulated By Bank of Uganda. Customer Deposits are protected by Deposit Protection Fund of Uganda up to UGX 10 Million, Terms and Conditions Apply
SUMMARY CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022
Group | Bank | |||||||||||||||||||||||||||
I. INDEPENDENT AUDITOR'S REPORT ON THE SUMMARY CONSOLIDATED AND SEPARATE FINANCIAL | IV OTHER DISCLOSURES | |||||||||||||||||||||||||||
STATEMENTS TO THE MEMBERS OF BANK OF BARODA (UGANDA) LIMITED. | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
Group | Bank | |||||||||||||||||||||||||||
UShs '000 | UShs '000 | UShs '000 | UShs '000 | |||||||||||||||||||||||||
Opinion | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||||||||||
The summary consolidated and separate financial statements of Bank of Baroda (Uganda) Limited | UShs '000 | UShs '000 | UShs '000 | UShs '000 | ||||||||||||||||||||||||
("the Bank") and its subsidiary (together "the Group"), which comprise the summary consolidated and | Liabilities | |||||||||||||||||||||||||||
separate statement of financial position as at December 31, 2022 and the summary consolidated and | Contingent | |||||||||||||||||||||||||||
Customers' | 1,777,297,079 | 1,592,215,724 | 1,777,297,080 | 1,592,215,726 | ||||||||||||||||||||||||
separate income statement for the year then ended, and other disclosures, are derived from the audited | deposits | liabilities | ||||||||||||||||||||||||||
consolidated and separate financial statements of the Group for the year ended December 31, 2022. | ||||||||||||||||||||||||||||
Interest payable | ||||||||||||||||||||||||||||
Letters of credit | 74,834,197 | 91,521,275 | 74,834,197 | 91,521,275 | ||||||||||||||||||||||||
and other | 47,036,811 | 39,379,612 | 47,036,811 | 39,379,612 | ||||||||||||||||||||||||
In our opinion, the accompanying summary consolidated and separate financial statements are | liabilities | |||||||||||||||||||||||||||
Guarantees and | ||||||||||||||||||||||||||||
consistent, in all material respects, with the audited consolidated and separate financial statements of | ||||||||||||||||||||||||||||
Dividends | 919,628 | 669,490 | 919,628 | 669,490 | performance | 97,366,443 | 65,016,952 | 97,366,443 | 65,016,952 | |||||||||||||||||||
the Group for the year ended December 31, 2022 in accordance with the Financial Institutions (External | payable | bonds | ||||||||||||||||||||||||||
Auditors) Regulations, 2010 and the Financial Institutions Act, 2004, and as amended. | ||||||||||||||||||||||||||||
Deferred tax | - | 2,072,389 | - | 2,072,389 | ||||||||||||||||||||||||
Total | 172,200,640 | 156,538,227 | 172,200,640 | 156,538,227 | ||||||||||||||||||||||||
Summary consolidated and separate financial statements | liability | |||||||||||||||||||||||||||
Liabilities of | 276,674 | 247,289 | - | - | Commitments | |||||||||||||||||||||||
The summary consolidated and separate financial statements do not contain all the disclosures as | ||||||||||||||||||||||||||||
disposal groups | ||||||||||||||||||||||||||||
required by International Financial Reporting Standards ('IFRSs'), the Companies Act, 2012 and the | Undrawn credit | |||||||||||||||||||||||||||
Total liabilities | 1,825,530,192 | 1,634,584,504 | 1,825,253,519 | 1,634,337,217 | 322,331,730 | 294,802,291 | 322,331,730 | 294,802,291 | ||||||||||||||||||||
Financial Institutions Act, 2004, and as amended. Reading the summary consolidated and separate | lines | |||||||||||||||||||||||||||
financial statements and the auditors' report thereon, therefore, is not a substitute for reading the | Shareholders' equity | |||||||||||||||||||||||||||
Total | 322,331,730 | 294,802,291 | 322,331,730 | 294,802,291 | ||||||||||||||||||||||||
audited consolidated and separate financial statements and the auditor's report thereon. | ||||||||||||||||||||||||||||
Share capital | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | ||||||||||||||||||||||||
Non-performing | ||||||||||||||||||||||||||||
The audited consolidated and separate financial statements and our report thereon | We expressed | Retained earnings | 565,302,349 | 467,713,346 | 564,902,257 | 467,324,206 | ||||||||||||||||||||||
loans and other | 14,954,653 | 638,363 | 14,954,653 | 638,363 | ||||||||||||||||||||||||
Proposed | 25,000,000 | 50,000,000 | 25,000,000 | 50,000,000 | ||||||||||||||||||||||||
an unmodified audit opinion on the audited consolidated and separate financial statements in our | assets | |||||||||||||||||||||||||||
dividends | ||||||||||||||||||||||||||||
report dated April 20, 2023. That report also includes the communication of key audit matters. Key | ||||||||||||||||||||||||||||
FVTOCI reserves | (12,451,075) | 4,115,906 | (12,451,075) | 4,115,906 | ||||||||||||||||||||||||
audit matters are those matters that, in our professional judgement, were of most significance in our | Interest in | 770,987 | 28,833 | 770,987 | 28,833 | |||||||||||||||||||||||
audit of the consolidated and separate financial statements of the current period. | Revaluation | 7,467,700 | 7,860,737 | 7,467,700 | 7,860,737 | suspense | ||||||||||||||||||||||
reserves | ||||||||||||||||||||||||||||
Bad debts | ||||||||||||||||||||||||||||
Directors' responsibility of the summary consolidated and separate financial statements | Total | 7,984 | 1,867,316 | 7,984 | 1,867,316 | |||||||||||||||||||||||
written off | ||||||||||||||||||||||||||||
The Directors are responsible for the preparation of the summary consolidated and separate financial | shareholders' | 610,318,974 | 554,689,989 | 609,918,882 | 554,300,849 | |||||||||||||||||||||||
statements in accordance with the | requirements of the | Financial Institutions (External Auditors) | equity | |||||||||||||||||||||||||
Large loan | 390,203,806 | 338,649,000 | 390,203,806 | 338,649,000 | ||||||||||||||||||||||||
Regulations, 2010 and the Financial Institutions Act, 2004, and as amended. | Total | exposures | ||||||||||||||||||||||||||
liabilities and | 2,435,849,166 | 2,189,274,493 | 2,435,172,401 | 2,188,638,066 | ||||||||||||||||||||||||
Auditor's responsibility | shareholders' | Insider loan | 95,965 | 73,346 | 95,965 | 73,346 | ||||||||||||||||||||||
equity | exposures | |||||||||||||||||||||||||||
Our responsibility is to express an opinion on whether the summary consolidated and separate | ||||||||||||||||||||||||||||
financial statements are consistent in all material aspects, with the audited consolidated and separate | ||||||||||||||||||||||||||||
financial statements based on our procedures, which were conducted in accordance with International | ||||||||||||||||||||||||||||
III SUMMARY CONSOLIDATED AND SEPARATE INCOME STATEMENT FOR THE YEAR ENDED | Bank | |||||||||||||||||||||||||||
Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary Financial Statements. | DECEMBER 31, 2022 | |||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||
Group | Bank | |||||||||||||||||||||||||||
UShs '000 | UShs '000 | |||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
UShs '000 | UShs '000 | UShs '000 | UShs '000 | |||||||||||||||||||||||||
Capital position | ||||||||||||||||||||||||||||
Certified Public Accountants | Income | |||||||||||||||||||||||||||
Core capital | 569,653,157 | 495,775,346 | ||||||||||||||||||||||||||
3rd Floor, Lugogo One | ||||||||||||||||||||||||||||
Interest on | ||||||||||||||||||||||||||||
Plot 23, Lugogo Bypass | deposits and | 9,068,218 | 7,257,620 | 9,068,218 | 7,257,620 | Supplementary capital | 18,540,680 | 17,392,868 | ||||||||||||||||||||
PO Box 7158 | placements | |||||||||||||||||||||||||||
Total qualifying capital | 588,193,837 | 513,168,214 | ||||||||||||||||||||||||||
Kampala, Uganda | ||||||||||||||||||||||||||||
Interest on loans | 114,415,065 | 96,334,619 | 114,415,065 | 96,334,619 | ||||||||||||||||||||||||
April 20, 2023 | and advances | |||||||||||||||||||||||||||
Total Risk Weighted Assets (RWA) | 1,731,643,044 | 1,294,628,649 | ||||||||||||||||||||||||||
Interest on | ||||||||||||||||||||||||||||
marketable/ | 81,166,588 | 64,981,262 | 81,166,588 | 64,981,262 | Core capital to RWA | 32.90% | 38.29% | |||||||||||||||||||||
trading securities | ||||||||||||||||||||||||||||
Total qualifying capital to RWA | 33.97% | 39.64% | ||||||||||||||||||||||||||
II SUMMARY CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION AS AT | Interest on | |||||||||||||||||||||||||||
DECEMEBR 31, 2022 | investment | 23,016,610 | 16,466,758 | 23,016,610 | 16,466,758 | |||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||
Group | Bank | VI. BASIS OF PREPARATION | ||||||||||||||||||||||||||
Foreign exchange | 4,719,059 | 5,144,771 | 4,719,059 | 5,144,771 | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | income | The summary consolidated and separate financial statements for the year ended | |||||||||||||||||||||||
UShs '000 | UShs '000 | UShs '000 | UShs '000 | |||||||||||||||||||||||||
Fee and | December 31, 2022 were prepared in accordance with the requirements of section | |||||||||||||||||||||||||||
commissions | 18,259,970 | 16,602,634 | 18,259,970 | 16,602,634 | 12(1) of the Financial Institutions (External Auditors) Regulations, 2010 and section | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
income | ||||||||||||||||||||||||||||
50(1) of the Financial Institutions Act, 2004 and as amended. The regulations require | ||||||||||||||||||||||||||||
Cash and | Other income | 11,092,648 | (437,347) | 11,092,648 | (437,347) | |||||||||||||||||||||||
balances with | 228,514,586 | 210,572,779 | 228,514,586 | 210,572,779 | ||||||||||||||||||||||||
Total income | 261,738,158 | 206,350,317 | 261,738,158 | 206,350,317 | that a financial institution shall, within four months after the end of its financial year, | |||||||||||||||||||||||
Bank of Uganda | ||||||||||||||||||||||||||||
Expenditure | publish its audited annual financial statements and the external auditor's report, in a | |||||||||||||||||||||||||||
Balances | ||||||||||||||||||||||||||||
Interest expense | newspaper circulating in the whole of Uganda in the format prescribed in the schedule | |||||||||||||||||||||||||||
with banking | 282,869,624 | 276,713,146 | 282,869,624 | 276,713,146 | 55,904,043 | 53,224,041 | 55,904,043 | 53,224,041 | ||||||||||||||||||||
institutions | on deposits | to the regulations. | ||||||||||||||||||||||||||
Interest expense | 400,656 | 230,742 | 400,656 | 230,742 | ||||||||||||||||||||||||
Due from | ||||||||||||||||||||||||||||
on borrowings | ||||||||||||||||||||||||||||
parent / group | 6,292,990 | 8,205,601 | 6,292,990 | 8,205,601 | ||||||||||||||||||||||||
VII. DIVIDENDS | ||||||||||||||||||||||||||||
companies | Other interest | 442,020 | 413,458 | 442,020 | 413,458 | |||||||||||||||||||||||
expense | Board of the Bank has resolved to recommend dividend of UShs 25 billion for the | |||||||||||||||||||||||||||
Marketable | ||||||||||||||||||||||||||||
(trading) | 602,780,921 | 572,962,484 | 602,780,921 | 572,962,484 | Provision for | year ended December 31, 2022 i.e. UShs 10 per share. The proposal for paying | ||||||||||||||||||||||
bad and doubtful | 11,065,014 | (7,242,075) | 11,065,014 | (7,242,075) | ||||||||||||||||||||||||
securities | dividend at UShs 10 per share (100%) will be subject to approval from Bank of | |||||||||||||||||||||||||||
debts | ||||||||||||||||||||||||||||
Loans and | ||||||||||||||||||||||||||||
1,089,050,974 | 942,096,250 | 1,089,050,974 | 942,096,250 | Management fees | 2,299,021 | 1,229,012 | 2,299,021 | 1,229,012 | Uganda and by the shareholders at the ensuing Annual General Meeting. The book | |||||||||||||||||||
advances (net) | ||||||||||||||||||||||||||||
Operating | 34,710,667 | 40,765,683 | 34,710,667 | 40,765,683 | closure date will be announced subsquent to receipt of the said Bank of Uganda | |||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||||
185,211,786 | 141,223,493 | 185,211,786 | 141,223,493 | expenses | approval. | |||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||
Total expenditure | 104,821,421 | 88,620,861 | 104,821,421 | 88,620,861 | ||||||||||||||||||||||||
Interest | ||||||||||||||||||||||||||||
Profit before tax | 156,916,737 | 117,729,456 | 156,916,737 | 117,729,456 | ||||||||||||||||||||||||
receivable and | 5,235,400 | 4,691,050 | 5,235,400 | 4,691,050 | VIII. MESSAGE FROM DIRECTORS | |||||||||||||||||||||||
other assets | Taxation | 34,731,723 | 27,497,740 | 34,731,723 | 27,497,740 | |||||||||||||||||||||||
The above summary consolidated and separate statements of financial statements | ||||||||||||||||||||||||||||
Profit from | ||||||||||||||||||||||||||||
Property, | ||||||||||||||||||||||||||||
continuing | 122,185,014 | 90,231,716 | 122,185,014 | 90,231,716 | were audited by Grant Thornton Certified Public Accountant of Uganda and received | |||||||||||||||||||||||
equipment and | ||||||||||||||||||||||||||||
27,053,210 | 29,052,614 | 27,053,210 | 29,052,614 | operations | ||||||||||||||||||||||||
right-of-use | an unmodified audit opinion. The consolidated and separate financial statements | |||||||||||||||||||||||||||
Profits/(Loss) | ||||||||||||||||||||||||||||
assets | were approved by the Board of Directors on March 21, 2023 and discussed with | |||||||||||||||||||||||||||
from discontiued | 10,952 | (182,932) | - | - | ||||||||||||||||||||||||
Intangible assets | 76,955 | 134,035 | 76,955 | 134,035 | operations(net | Bank of Uganda on April 11, 2023. A copy of the audited consolidated and separate | ||||||||||||||||||||||
of tax) | ||||||||||||||||||||||||||||
Tax recoverable | 364,885 | 2,946,614 | 364,885 | 2,946,614 | ||||||||||||||||||||||||
financial statements of the Bank can be obtained from the Bank's website at www. | ||||||||||||||||||||||||||||
Profit for the | 122,195,966 | 90,048,784 | 122,185,014 | 90,231,716 | ||||||||||||||||||||||||
Deferred tax | 7,681,070 | - | 7,681,070 | - | year | bankofbaroda.ug as well as from the Bank's Head Office. | ||||||||||||||||||||||
asset | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
Asset of disposal | 716,765 | 676,427 | 40,000 | 40,000 | comprehensive | (16,566,982) | 11,781,932 | (16,566,982) | 11,781,932 | |||||||||||||||||||
groups | (loss)/income | |||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||
Total assets | 2,435,849,166 | 2,189,274,493 | 2,435,172,401 | 2,188,638,066 | ||||||||||||||||||||||||
compresensive | ||||||||||||||||||||||||||||
105,628,984 | 101,830,716 | 101,618,032 | 102,013,648 | Prithvi Singh Bhati | Shashi Dhar | |||||||||||||||||||||||
income for the | ||||||||||||||||||||||||||||
year | Managing Director |
SERVING THE PEOPLE OF UGANDA SINCE 1953
Bank's Branches: Kampala Main/Railway Station/Jinja/Mbale/Mbarara/Iganga/Kansanga/Kawempe/Lira/Mukono/Ovino Market/Kabale/Entebbe/Industrial Area/Kololo/Lugazi/Arua Off-SiteATM Namanve-Mukono | Njeru Industrial Area, Jinja
Bank of Baroda (Uganda) Limited is regulated By Bank of Uganda. Customer Deposits are protected by Deposit Protection Fund of Uganda up to UGX 10 Million, Terms and Conditions Apply
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Bank of Baroda published this content on 26 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2023 09:46:03 UTC.