Bank of Uganda registers a Shs 23.5 trillion asset increase

According to info released, Bank Of Uganda saw it’s assets increase by Shs 23.5 trillion for the year ended June 2021.

This was an increase from Shs 20.17 trillion for the year ending June 2020.

The annual report from the Bank showed that foreign assets accounted for 75% of the total assets whereas the domestic ones accounted for 25%.

Therefore in this period, the foreign assets increased by 4% to Shs 17.6 trillion. This is as compared to the Shs 16.9 trillion as of June 2020.

This is as result of increased inflows from donor and project funds.

There was a skyrocket increase in the domestic assets by 82% to 5.8 trillion shillings from 3.2 trillion shillings.

The reason given for this increase is recapitalization of securities from government which amounted to Shs 481.7b.

The report further indicated that during this period, BoU got total revenue of Shs 529.1b.

This was however a decline from Shs 678.7b that was realised for the previous financial year as of June 2020.

The fall was as a result of a decline in interest income by 9% from Shs 423.5b to Shs 386.2b as the non interest income saw a 44% decline from Shs 255.1b to Shs 142.9b.

According to the same report, it’s indicated that operating expenditure such as interest expense during this period fell by 14% to Shs 571.4b as compared to Shs 665.8b for the year 2020.

There was also a reduction on expenditure implementation of monetary policy as it accounted for Shs 195.7b from Shs 230.1b in 2020.

There was also low significant monetary policy costs in this period.

This was attributed to a reduction in the Central Bank Rates (CBR) from an average of 8.92% during the financial year if 2019/20 to an average of 6.96%.

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