Uganda’s banking sector witnessed another strong performance in 2025, with Absa Bank Uganda reporting a 25.1% surge in profit after tax to UGX 222 billion for the financial year ended December 2025, buoyed by double-digit growth in customer deposits, total assets, and digital banking adoption.
The results, unveiled at a press briefing in Kampala, underscore a year of deliberate strategic execution under the leadership of Managing Director David Wandera, who emphasized the bank’s focus on building trust and expanding lending capacity.
Key Financial Highlights
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net Profit | UGX 222 billion | UGX 178 billion | +25.1% |
| Total Revenue | UGX 637 billion | UGX 546 billion | +16.6% |
| Customer Deposits | UGX 4.66 trillion | UGX 3.18 trillion | +46.5% |
| Total Assets | UGX 7.03 trillion | UGX 5.43 trillion | +29.5% |
| Mobile Banking Transaction Value | UGX 15.5 trillion | UGX 11.1 trillion | +39.4% |
Source: Company Reports
Drivers of Growth: Customer Deposits and Digital Adoption
The bank’s stellar performance was primarily propelled by a sharp increase in customer deposits, which swelled by over 46% to reach UGX 4.66 trillion. Wandera attributed this to a refreshed strategy centered on the customer and disciplined execution.
“These results set the stage for our next phase of growth. They reflect a business that is building trust, strengthening its capacity to lend, facilitating ease of doing business, and operating with discipline,” Wandera stated during the presentation.
Absa also made significant inroads in the digital banking space. Mobile banking transaction values climbed 39.4% to UGX 15.5 trillion, reflecting broader market trends and the bank’s targeted investments in technology. Payment volumes grew by 18.5%, outpacing the market average of 11%.
Navigating Rising Loan Impairments.
Despite the headline profit growth, the bank faced headwinds in the form of a 78.3% spike in loan impairments. Bank officials partly attributed this increase to the suspension of donor funding, particularly from USAID, which affected several NGO clients.
Chief Financial Officer Michael Segwaya noted that the bank is maintaining disciplined capital allocation to manage risk while supporting economic expansion.