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Uchumi income triples through debt collection

KILIMANJARO: KILIMANJARO based Uchumi Commercial Bank has posted remarkable 78.3 per cent increase in comprehensive income in quarter three of this year, driven by effective debt collection strategies.

The UCB Chief Executive Officer (CEO) Mr Samwel Wado told the `Daily News’ yesterday that they managed to collect some 247m/- from unpaid long-term loans compared to merely 6.0m/- earned same quarter last year.

“The increase was largely driven by payment earned from unpaid long-term loans.

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“And this sharp rise underscores the bank’s improved ability to manage loan repayment thus strengthen its financial position,” Mr Wado said.

Despite positive trends in debt collection, Mr Wado said that their recent review of interest rates has led to a slowdown in net income.

“Net income decreased this quarter compared to last year due to our diversification strategies and interest rate adjustments implemented at the beginning of the year.

“However, these measures have led to an increase in other comprehensive income,” Mr Wado said. According to the latest financial statement released yesterday, the lender’s assets grew by 5.29 per cent to 62.25bn/- up from 59.12bn/- driven by a significant rise in loans.

The growth was mainly attributed to an increase in loan advances and overdrafts which reached 41bn/- at the end quarter three compared to 37.7bn/- in the previous quarter.

This upward trend reflects growing customer trust and demand for banking services.

The UCB’s non-interest expenses rose to 1.5bn/- in Q3 from 1.3bn/- in the same quarter last year. This increase could be largely attributed to salary and benefit enhancements which grew to 765m/- from 650m/-.

The bank’s non-interest income saw a significant rise to 369m/- in the third quarter, compared to 293m/- in the same period last year. This increase was driven by foreign currency dealings, translation gains and fees and commissions. Specifically, foreign currency dealings and translation gains rose to 44m/- from 16m/- while fees and commissions increased to 313m/- up from 236m/-.

“As the bank navigates a changing economic landscape it remains committed to enhancing customer trust and maintaining a profitable path,” Mr Wado said.

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