EADB’s net profit leapfrogs by 34pc to U$8.7m last year

14Jan 2021
The Guardian Reporter
Dar es Salaam
The Guardian
EADB’s net profit leapfrogs by 34pc to U$8.7m last year

EAST African Development Bank managed to notch an impressive 34 percent growth in net profits to US8.7 million in 2019 thanks to strong liquidity and capital buffers.

In its latest annual report for 2019, the Kampala based lender’s Chairman of the board of directors, Keith Muhakanizi said the bank’s  total  assets  grew  by  2.2 percent to  U$374.96 million while shareholders’ equity increased by four percent to U$266.4 million in 2019 from U$256.1 million in 2018.

“In  September  2019,  Moody’s  Investors  Service  maintained  EADB’s  long-term  issuer  rating  at  Baa3  with  a  stable  outlook.  Moody’s  report  states that, the bank’s credit strengths include strong  liquidity  and  capital  buffers  that  are  among    the    strongest    of    the    multilateral    development   banks,” Muhakanazi said adding that GCR Ratings also upgraded the international  rating for EADB from BB+ to BBB- with a stable outlook. He further noted that with regard to resource mobilization, the EADB which has had a management crisis for the past two years, continued  to  seek  funding  from  international  institutions during the year.

“For instance, OPEC Fund for International Development (OFID) and the Arab Bank for Economic Development Bank in Africa (BADEA) conducted due diligence on EADB for lines of credit to finance projects in the EADB member states. In addition, the bank signed  a  non-disclosure  agreement  with  Development Bank of Southern Africa,  to  promote  general  co-operation  between    the    two    institutions    and    foster    opportunities  for  operational  partnership  and  exchange of knowledge and expertise,” the Ugandan Permanent Secretary at Ministry of Finance, added.

Seconding Muhakanazi’s statement, EADB Director General, Vivienne Yeda said the bank increased    its development contribution to its member in 2019 by disbursing U$ 21.3 million to new projects during the year.

“The bank’s 2019 profit grew by 34 percent to U$ 8.7 million before other comprehensive income. All of our new projects  fell  under  the  key  focus  areas  of  our  2016-20  strategy,  which  focuses   on:  food security, infrastructure, climate change, regional integration and skills development,” said Yeda.

The Kenyan EADB chief who is credited with improving the books of the regional bank further noted that under food security, the bank expanded programmes that offer affordable financing to small and medium size enterprises in rural and   agricultural communities.

“In  Uganda,  the  bank  has  provided  UGX  149  billion  to  2,806  SMEs,  which  is  estimated  to  have contributed to the creation or sustenance of 31,934 permanent and temporary jobs, of which 7,670 are female jobs,” she noted...read more on https://epaper.ippmedia.com