Pearl Bank hits UGX 1 trillion in loans

KAMPALA, 1 September 2026 — Pearl Bank’s loan book has crossed UGX 1 trillion, the government-owned lender said on Monday, a milestone it described as evidence of its expanding role in financing Ugandan businesses, households and productive sectors.

The figure marks a rise from the UGX 749 billion portfolio the bank reported at the end of December 2025 — growth of about a third in eight months.

“We set ourselves the ambition of doubling our market share and then developed products that could help us scale quickly. Agriculture and agro-industrialisation have been particularly important, supported by disciplined execution across the bank,” said Martin Mugisha, Executive Director – Operations at Pearl Bank.

Agriculture and agro-industrialisation account for about 35% of the loan book and were the largest contributors to the growth, according to the bank. It said nearly half of the portfolio was invested in activities aligned with the National Development Plan IV and its own Tenfold growth strategy.

The bank said it had expanded financing across agricultural production, processing and related value chains, while lending more to MSMEs, trade, logistics and construction.

Pearl Bank attributed part of the growth to partnerships that provide cheaper funding or reduce lending risk, naming the Government of Uganda, the Bank of Uganda’s Agricultural Credit Facility, Aceli Africa, aBi Finance and the French development agency AFD, among others.

“The biggest constraint to private-sector credit remains the cost of borrowing. Partnerships allow us either to reduce the cost of funds or share some of the lending risk. That enables us to lend more affordably and sustainably, particularly to agriculture and SMEs where financing gaps remain significant,” Mugisha said.

The bank said the milestone was in line with its 2024–2028 strategy, which it frames around goals of financial inclusion and enterprise growth. It plans to deepen agricultural lending while moving into tourism, construction and minerals, and said this would require more long-term capital to avoid liquidity mismatches.

“We are still on the journey towards doubling our market share. The next phase will require stronger local and international partnerships and, critically, more long-term capital,” Mugisha said.

Pearl Bank said it was widening its reach through digital platforms and its agency network rather than opening more branches.

Pearl Bank, formerly PostBank Uganda, is wholly owned by the Government of Uganda. It operates 59 branches and more than 8,000 agents.