Bank of Baroda : Uganda Limited -2022 Financial Results

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: [phone]

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