KAMPALA, Uganda  – Absa Bank Uganda reported a 22% increase in profit after tax to 178 billion Ugandan shillings for the year ending Dec. 31, 2024. Revenue climbed 15.1% to 546 billion shillings, the bank announced Tuesday.
The financial institution attributed the growth to an increase in its customer base, higher transactional activity, and expanded credit support. Customer loans saw a 12.7% rise, closing the year at 1.99 trillion shillings, while customer deposits increased by 11.5% to 3.18 trillion shillings.
Michael Segwaya, Absa Bank Uganda’s executive director and chief financial officer, said the bank’s strong revenue performance reflected its sound financial strategy and consistent execution. He also highlighted the growth in customer liabilities by 11.5% and the 12.7% increase in the loan portfolio over the year.
According to the bank, its lending strategy focused on key sectors of the Ugandan economy. As of December 2024, 26% of the total loan book was in trade, personal and household loans accounted for 27% (up from 24% in 2023), while agriculture and manufacturing represented 10% and 9%, respectively. Segwaya noted that this lending approach underscored the bank’s commitment to supporting Uganda’s real economy through prudent risk management and sectoral focus.
The bank reported an 11.5% year-on-year increase in customer deposits, reaching 3.18 trillion shillings. This growth was attributed to an active customer base and increased engagement through digital and other channels. Segwaya stated that this growth in deposits strengthens the bank’s capacity to extend more credit and broaden access to underserved market segments.
David Wandera, the interim managing director at Absa Bank Uganda, credited the 2024 performance to strategic execution and a customer-centric approach. He said the strong results demonstrated the resilience of the bank’s business model and the success of its strategy in meeting evolving market needs. Wandera added that the bank supported customers across various segments with timely and relevant financial solutions.
Absa Uganda highlighted its leading position in digital payments, stating it issued over 70% of the credit cards in the market and processed 92% of the total credit card payment volumes nationwide. Payment volumes increased by 18.5%, outpacing the market average, while active card usage grew by 15%. Wandera emphasized that the bank’s leadership in digital payments and agency banking was about improving access, inclusion, and convenience. He noted that over 8.1 million transactions were processed through 1,971 agency banking locations, extending service reach to remote areas.
The bank also underscored its commitment to sustainability and inclusive growth in 2024. Wandera said that sustainability is integral to the bank’s operations, with a holistic approach to environmental, social, and governance (ESG) factors. In 2024, Absa Bank Uganda provided 38 billion shillings in green financing to support Uganda’s transition to clean transport and planted 372,643 trees as part of a broader environmental initiative. Additionally, the bank delivered financial literacy training to over 44,000 Ugandans.
Looking ahead, Absa Bank Uganda remains optimistic about 2025 and has outlined a strategy for sustainable growth and digital transformation, despite global macroeconomic uncertainties. Wandera stated the bank’s ambition is to be a purpose-driven, customer-focused institution that contributes to Uganda’s economic progress through investments in digital capabilities, talent development, and ESG initiatives.
Segwaya concluded that with a stabilizing macroeconomic environment and a robust risk governance framework, Absa Bank Uganda is well-positioned to maintain its momentum and deliver value to all stakeholders.
