UDB assets grow 7% to UGX 1.78 trillion in 2024; profit up 16%

KAMPALA — The Uganda Development Bank Ltd. (UDB) reported significant growth in 2024, with total assets increasing 7% to UGX 1.78 trillion and net loans and advances rising 9% to UGX 1.53 trillion. The national Development Finance Institution announced its 2024 performance results Wednesday at its annual general meeting at the Ministry of Finance, Planning, and Economic Development in Kampala.

UDB also reported a post-tax profit of UGX 57.8 billion, a 16% increase from UGX 49.8 billion in 2023. Managing Director Dr. Patricia Ojangole attributed the bank’s continued growth to strategic investments and a focus on cost efficiency.

“Through 2024, UDB remained a committed partner in advancing the Government’s economic development agenda, providing targeted financial support to qualifying enterprises and enabling productive investments across priority growth sectors,” Ojangole said. “UDB has made investments in boosting agriculture and manufacturing, whilst also unlocking and improving opportunities in the services sector.”

The bank disbursed UGX 388 billion in new funding for projects nationwide in 2024. Its capital base was strengthened by UGX 80.7 billion in additional government contributions and the strategic reinvestment of UGX 437 billion collected from loan repayments, raising cumulative capitalization to UGX 1.46 trillion.

The growth in assets and lending translated into notable development impact. A total of 434 bank-supported enterprises created or maintained 55,553 jobs, a 7.2% increase from the previous year. Of these jobs, 59.9% were filled by youth and 31.3% by women.

UDB approved UGX 454 billion in new loans for more than 170 enterprises across 67 districts. These investments are projected to create 17,832 new jobs, generate UGX 9.7 trillion in additional output, UGX 1.8 trillion in foreign exchange earnings, UGX 1.7 trillion in profits and contribute UGX 455 billion in tax to the government.

The industrial sector dominated UDB’s portfolio, accounting for 50% of its total investments, with significant allocations to agro-industrialization and manufacturing. The annual output of UDB-financed enterprises increased 3.2% to UGX 6.05 trillion, and their tax contributions improved to UGX 316 billion.

UDB maintained a stable cost-to-income ratio of 31% in 2024. Its return on assets rose to 3.26%, and return on equity improved to 3.89%.

Minister of Finance, Planning, and Economic Development Matia Kasaija lauded UDB for its contributions to the National Development Plan and Vision 2040. He urged the bank to expand its national reach and intensify support for businesses that generate employment.

“I am pleased that UDB’s 2024 interventions are aligned with the strategic objectives outlined in the country’s national development plan,” Kasaija said.

The bank also implemented various institutional initiatives, including the Business Accelerator for Successful Entrepreneurs (BASE), which trained 450 entities and incubated 71 businesses. UDB committed UGX 5.1 billion toward project preparation, and its Hybrid Electricity Connections Program benefited more than 42,000 households and small businesses.

In 2024, UDB received multiple recognitions, including the 2024 Regional Bank of the Year – East Africa at the African Banker Awards and Sustainability Leader of the Year at the Karlsruhe Sustainability Awards for the fourth consecutive year. Fitch Ratings assigned UDB an ‘AA+ (Uga)’ National Long-term Rating with a Stable Outlook, and it earned an AA rating from the Association of African Development Finance Institutions (AADFI).

Mr. Geoffrey Kihuguru, chairman of the UDB Board of Directors, reiterated the bank’s commitment to long-term sustainability through prudent asset management and operational efficiency.

UDB assets grow 7% to UGX 1.78 trillion in 2024; profit up 16%

KAMPALA — The Uganda Development Bank Ltd. (UDB) reported significant growth in 2024, with total assets increasing 7% to UGX 1.78 trillion and net loans and advances rising 9% to UGX 1.53 trillion. The national Development Finance Institution announced its 2024 performance results Wednesday at its annual general meeting at the Ministry of Finance, Planning, and Economic Development in Kampala.

UDB also reported a post-tax profit of UGX 57.8 billion, a 16% increase from UGX 49.8 billion in 2023. Managing Director Dr. Patricia Ojangole attributed the bank’s continued growth to strategic investments and a focus on cost efficiency.

“Through 2024, UDB remained a committed partner in advancing the Government’s economic development agenda, providing targeted financial support to qualifying enterprises and enabling productive investments across priority growth sectors,” Ojangole said. “UDB has made investments in boosting agriculture and manufacturing, whilst also unlocking and improving opportunities in the services sector.”

The bank disbursed UGX 388 billion in new funding for projects nationwide in 2024. Its capital base was strengthened by UGX 80.7 billion in additional government contributions and the strategic reinvestment of UGX 437 billion collected from loan repayments, raising cumulative capitalization to UGX 1.46 trillion.

The growth in assets and lending translated into notable development impact. A total of 434 bank-supported enterprises created or maintained 55,553 jobs, a 7.2% increase from the previous year. Of these jobs, 59.9% were filled by youth and 31.3% by women.

UDB approved UGX 454 billion in new loans for more than 170 enterprises across 67 districts. These investments are projected to create 17,832 new jobs, generate UGX 9.7 trillion in additional output, UGX 1.8 trillion in foreign exchange earnings, UGX 1.7 trillion in profits and contribute UGX 455 billion in tax to the government.

The industrial sector dominated UDB’s portfolio, accounting for 50% of its total investments, with significant allocations to agro-industrialization and manufacturing. The annual output of UDB-financed enterprises increased 3.2% to UGX 6.05 trillion, and their tax contributions improved to UGX 316 billion.

UDB maintained a stable cost-to-income ratio of 31% in 2024. Its return on assets rose to 3.26%, and return on equity improved to 3.89%.

Minister of Finance, Planning, and Economic Development Matia Kasaija lauded UDB for its contributions to the National Development Plan and Vision 2040. He urged the bank to expand its national reach and intensify support for businesses that generate employment.

“I am pleased that UDB’s 2024 interventions are aligned with the strategic objectives outlined in the country’s national development plan,” Kasaija said.

The bank also implemented various institutional initiatives, including the Business Accelerator for Successful Entrepreneurs (BASE), which trained 450 entities and incubated 71 businesses. UDB committed UGX 5.1 billion toward project preparation, and its Hybrid Electricity Connections Program benefited more than 42,000 households and small businesses.

In 2024, UDB received multiple recognitions, including the 2024 Regional Bank of the Year – East Africa at the African Banker Awards and Sustainability Leader of the Year at the Karlsruhe Sustainability Awards for the fourth consecutive year. Fitch Ratings assigned UDB an ‘AA+ (Uga)’ National Long-term Rating with a Stable Outlook, and it earned an AA rating from the Association of African Development Finance Institutions (AADFI).

Mr. Geoffrey Kihuguru, chairman of the UDB Board of Directors, reiterated the bank’s commitment to long-term sustainability through prudent asset management and operational efficiency.