Overview:
Following a 46.4 percent jump in deposits, Absa Bank Uganda signals an expansion drive and prepares to support credit demand ahead of first oil production.
KAMPALA, Uganda — Absa Bank Uganda is signaling an aggressive expansion drive after reporting a 25.1 percent surge in profit after tax for the 2025 financial year, reaching 222 billion shillings.
The bank’s financial results show a 46.4 percent jump in customer deposits to 4.6 trillion shillings, while total assets grew by 29.4 percent. Executives say the strengthened balance sheet provides the necessary liquidity to meet rising credit demand as Uganda nears its first oil production.
“Our performance reflects deliberate choices to strengthen the foundations of the business,” said David Wandera, managing director of Absa Bank Uganda. “We have focused on understanding our customers deeply, investing in digital capability, and being precise in how we deploy capital.”
The expansion strategy includes the proposed acquisition of Standard Chartered’s retail and wealth management business in Uganda. This move coincides with a structural shift in consumer behavior, as the bank’s mobile banking transaction values climbed 39.4 percent to 15.5 trillion shillings.
Chief Financial Officer Michael Segwaya said the bank’s disciplined execution resulted in a resilient cost-to-income ratio and improved efficiency.
Beyond its balance sheet, the bank increased its footprint in the real economy through major financing deals. These include a 100 million dollar syndicated facility to MTN Uganda for digital connectivity and a 50 million dollar facility to the Uganda Electricity Distribution Company Limited.
With Uganda’s economy projected to grow by 6 to 7 percent, Wandera noted that the bank is prepared to scale its capacity to support sectors such as agriculture and manufacturing.
Absa, which operates 39 branches and 91 ATMs countrywide, was recently named the best performing primary dealer market maker by the Bank of Uganda for its activity in government securities.