Absa Bank Uganda has reported a net profit of Shs222 billion for the financial year 2025, marking a 25.1 percent increase from Shs178 billion recorded the previous year.

The results were announced on Wednesday at Sheraton Kampala Hotel, where Managing Director David Wandera said the performance reflects deliberate strategic choices aimed at strengthening the bank’s operations and long-term growth.

“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 said.

The bank’s total revenue rose by 16.6 percent to Shs637 billion, up from Shs546 billion in 2024, while total assets grew by 29.4 percent. Customer deposits also increased to Shs4.6 trillion, signaling growing customer confidence.

Wandera attributed the strong performance to the bank’s refreshed strategy, built on four key pillars and supported by targeted investments in customer-focused solutions.

“The growth in deposits reflects customers choosing Absa as their bank of choice. We have also been intentional about where and how we lend, ensuring support to sectors that drive the economy,” he noted.

According to the bank, over 40 percent of its loan book is allocated to trade, manufacturing, and agriculture—sectors considered central to Uganda’s productive economy. Meanwhile, nearly 28 percent of lending supports individuals and households, enhancing financial inclusion and resilience.

The lender also reported increased uptake of digital financial services, in line with broader market trends. Data from Bank of Uganda shows mobile banking transaction values grew by 39.4 percent to Shs15.5 trillion between June 2024 and June 2025.

Chief Financial Officer Michael Segwaya said the bank’s balance sheet strengthened during the year, supported by growth in deposits and assets.

“This positions us to meet rising demand for credit as economic activity expands, while maintaining disciplined capital allocation,” Segwaya said.

The bank maintained a focus on operational efficiency, prudent risk management, and digital innovation. It is also advancing growth opportunities, including the proposed acquisition of the retail and wealth management business of Standard Chartered Bank Uganda.

Uganda’s economy remains resilient, with growth projected at between 6 and 7 percent by the World Bank and the International Monetary Fund, supported by strong domestic demand, infrastructure investments, and anticipated oil production.

During the year, Absa financed key sectors of the economy, including a $50 million facility to Uganda Electricity Distribution Company Limited to strengthen power distribution, and a $100 million syndicated loan to MTN Uganda to boost digital connectivity.

The bank also expanded its digital offerings, including multi-currency virtual cards, Pay by Link services, and mobile-based lending solutions, enabling faster and more convenient transactions.

With payment volumes growing by 18.5 percent—above the market average of 11 percent—Absa is positioning itself as a leading player in Uganda’s digital banking space.

Wandera said the anticipated start of oil production is expected to unlock new economic opportunities, including increased foreign direct investment and growth across key sectors.

“This creates a clear opportunity for us to expand our capacity and support growth at scale,” he said.