United Bank for Africa Plc has invested an additional $10 million in its local subsidiary, UBA Kenya Bank, raising its core capital from Ksh1.1 billion to Ksh2.2 billion.
This capital injection will support its growth agenda that began in late 2014 with a strategic realignment in business focus and management. The additional capital has increased the bank’s liquidity and allowed UBA Kenya room to offer larger loans to its growing Corporate and SME customers.
As at end of March 2016, the bank recorded a profit of Ksh17.9 million, a 518% increase from Ksh2.9million profit achieved in the same quarter in 2015. Total Loans grew by 5.49% to Ksh2.88 billion from Ksh2.73 billion in December.
Interest income grew by 85.11% to Ksh52.70million when compared to Kes.82.49million for the same period in2015. Non-funded income increased by 29.32% to Kes.115.65million when compared to Kes89.43million for the same period in 2015.
The will continue to focus on infrastructure, energy, manufacturing and consumer segments.
“Our focus as UBA Kenya remains to offer products relevant and beneficial to both corporate and SME segments of the Kenyan market and Africa at large. With this additional capital, we aim to assist more Kenyan businesses grow and spread their wings all across Africa with ease,” said UBA Kenya CEO Isaac Mwige.
In addition to Kenya, UBA Plc. has also injected USD 5 Million capital to each of its subsidiaries in Tanzania, Uganda and Mozambique. The Bank remains committed to developing businesses in Africa and promoting intra Africa trade.