Strong growth in deposits and assets has strengthened the Absa bank’s balance sheet, positioning it for an expansion drive amid rising demand for credit and digital financial services.
Absa Bank Uganda posted a 25.1 per cent increase in profit after tax to Shs222 billion for 2025, underpinned by growth in both funded and non-funded income streams.
Customer deposits surged by 46.4 per cent to Shs4.6 trillion, while total assets expanded by 29.4 per cent, boosting liquidity and enhancing the bank’s capacity to support lending as economic activity picks up.
“Our performance reflects deliberate choices to strengthen the foundations of the business,” said managing director David Wandera. “We have focused on understanding our customers, investing in digital capability, and deploying capital with precision.”
The performance follows the rollout of a refreshed strategy anchored on customer-centricity, Pan-African integration, disciplined execution and innovation-led growth.
Chief financial officer Michael Segwaya said the stronger balance sheet provides a solid base to meet growing credit demand while maintaining prudent risk management.
“The growth in deposits and assets has enhanced our funding base and liquidity, enabling us to support expansion while preserving balance sheet resilience,” he said.
The bank is also pursuing new growth opportunities, including the proposed acquisition of the retail and wealth management business of Standard Chartered in Uganda, alongside continued investment in digital platforms.
Uganda’s economy is projected to grow between 6 and 7 per cent, according to global lenders, supported by infrastructure spending, strong domestic demand and the anticipated start of oil production.
The lender is positioning itself to tap into these opportunities, particularly in sectors expected to benefit from increased investment.
During the year, it extended a $50 million facility to Uganda Electricity Distribution Company Limited to strengthen power distribution, and participated in a $100 million syndicated facility to MTN Uganda to boost digital connectivity.
It also deepened its partnership with Tata to support student mobility financing.
Digital banking remained a key growth driver, with payment volumes rising by 18.5 per cent—well above the market average of 11 per cent. Mobile banking transaction values jumped 39.4 per cent to Shs15.5 trillion, reflecting a shift toward digital channels.
This momentum was supported by enhanced platforms, including faster account opening and solutions such as multi-currency virtual cards, Pay by Link and Digi Loan services.
“The anticipated start of oil production is expected to unlock a new phase of economic activity,” Wandera said. “This creates an opportunity for us to scale up support for businesses and households.”
The bank was also named Best Performing Primary Dealer Market Maker in Uganda Government Securities by the Bank of Uganda for the period October 2024 to September 2025.
