How is ueno bank financed? Five key facts about its financial structure
ueno bank’s growth has raised questions about the origin of its funding, the share of public-sector deposits, the role of the IPS, related-party transactions, and the use of its profits. These five key facts help explain the bank’s current financial structure.
Do most of ueno bank’s deposits come from the public sector?
No. More than 70% of ueno bank’s deposits come from the private sector, while public-sector deposits account for between 25% and 27% of the total.
What other sources of financing does ueno bank have?
In addition to deposits, the bank has secured US$510 million in financing from development institutions, international funds, and international capital markets. This includes a US$350 million issuance on Wall Street, led by JPMorgan and Bank of America, as well as more recent financing totaling US$27.5 million from Finance in Motion, the Development Bank of Austria (OeEB), and DW Markets.
What role does the IPS play?
ueno bank currently holds around US$300 million in funds from the Instituto de Previsión Social (IPS). This amount is included within the bank’s public-sector deposits and should not be considered an additional category. The bank’s participation in these processes increased following the merger with Visión Banco and the consolidation of its capital base from July 2024, which enabled it to meet the requirements to take part in the IPS’s competitive processes.
How are related-party transactions handled?
These transactions are subject to regulatory requirements, limits, and supervision. ueno bank states that its transactions with WEPA, UPAY, ueno Seguros, and ueno Casa de Bolsa remain within the applicable regulatory parameters and has expressed its willingness to provide details of those exposures and their corresponding prudential treatment.
What has the bank done with its profits?
ueno bank has not distributed dividends to its shareholders and has retained its profits within the institution to strengthen its capital base and support its growth. Over the past two years, the bank’s equity has increased by more than US$200 million. These two figures are related, but they are not the same: retained earnings can contribute to stronger capital, while the overall increase in equity may also include capital contributions and other movements.
Do most of ueno bank’s deposits come from the public sector?
No. More than 70% of ueno bank’s deposits come from the private sector, while public-sector deposits account for between 25% and 27% of the total.
What other sources of financing does ueno bank have?
In addition to deposits, the bank has secured US$510 million in financing from development institutions, international funds, and international capital markets. This includes a US$350 million issuance on Wall Street, led by JPMorgan and Bank of America, as well as more recent financing totaling US$27.5 million from Finance in Motion, the Development Bank of Austria (OeEB), and DW Markets.
What role does the IPS play?
ueno bank currently holds around US$300 million in funds from the Instituto de Previsión Social (IPS). This amount is included within the bank’s public-sector deposits and should not be considered an additional category. The bank’s participation in these processes increased following the merger with Visión Banco and the consolidation of its capital base from July 2024, which enabled it to meet the requirements to take part in the IPS’s competitive processes.
How are related-party transactions handled?
These transactions are subject to regulatory requirements, limits, and supervision. ueno bank states that its transactions with WEPA, UPAY, ueno Seguros, and ueno Casa de Bolsa remain within the applicable regulatory parameters and has expressed its willingness to provide details of those exposures and their corresponding prudential treatment.
What has the bank done with its profits?
ueno bank has not distributed dividends to its shareholders and has retained its profits within the institution to strengthen its capital base and support its growth. Over the past two years, the bank’s equity has increased by more than US$200 million. These two figures are related, but they are not the same: retained earnings can contribute to stronger capital, while the overall increase in equity may also include capital contributions and other movements.