Business 16 April 2026 Daily Monitor (Uganda)
Absa Bank Uganda Posts Shs222 Billion Profit Amid Strong Loan and Deposit Growth
Absa Bank Uganda achieved a net profit of Shs222 billion in 2025, up from Shs178 billion the previous year, fueled by robust increases in customer deposits, lending, and net interest income. Executives credit balanced sector lending and economic expansion for the bank's solid performance. Source: https://www.monitor.co.ug/uganda/business/markets/how-absa-made-shs222-billion-in-net-profit-5425764
Absa Bank Uganda Limited reported a net profit of Shs222 billion for the 2025 financial year, marking a significant rise from Shs178 billion in 2024. This growth stemmed from expanded customer accounts, loans, and revenue sources amid Uganda’s 6.3 percent economic expansion.
Total income reached Shs637 billion, a 16.6 percent year-on-year increase from Shs546 billion, with net interest income climbing to Shs360 billion from Shs311 billion. Customer liabilities surged to Shs4.664 trillion, up from Shs3.185 trillion.
The bank distributed loans across key sectors: trade at 30 percent, agriculture at 17 percent, manufacturing at 12.2 percent, and others at 12.8 percent. Household lending, accounting for about 28 percent, often supports informal businesses, as noted by Managing Director David Wandera.
Loan growth ranged from 6 to 8 percent across corporate, consumer, and business segments. While some funds went into government securities, executives plan to shift toward more lending opportunities.
Operating costs increased due to staff investments and technology upgrades, but revenues outpaced expenses. Non-funded income grew with digital banking adoption, and return on equity hit 24 percent, bolstering capital adequacy and liquidity.
Looking ahead, oil sector developments could push GDP growth above 7.5 percent, though global risks like geopolitical tensions pose challenges. Wandera emphasized funding high-growth areas while managing uncertainties.
Source: Daily Monitor (Uganda)