Summary:

• Absa Bank Uganda reports a significant revenue increase of Sh64 billion, leading to a Sh146 billion profit after tax. Key highlights include a 12.9% growth in net customer loans and a 16.3% rise in customer deposits.

Absa Bank Uganda has announced robust financial results for the year ending December 2023. The bank witnessed significant milestones, including a noteworthy increase in revenue by Sh64 billion, marking a substantial 15.6% growth compared to the previous year. This surge in revenue translated into a remarkable profit after tax of Sh146 billion.

Key highlights of the financial report include a notable 12.9% growth in net customer loans, reaching Sh1.76 trillion, and a substantial 16.3% growth in customer deposits, amounting to Sh2.45 trillion. These figures underscore Absa Bank Uganda’s strong position in the market and its commitment to meeting the financial needs of its customers.

Mumba Kalifungwa, Managing Director of Absa Bank Uganda, attributed the growth in revenue to a significant increase in transactional banking and trading income, reflecting a 42% surge in these areas. This growth demonstrates heightened customer confidence in Absa, evident in a 30% year-on-year increase in banking transactions and a 36% growth in the utilization of trade instruments.

Moreover, the bank witnessed a surge in demand for its working capital and trade solutions, reflecting a resurgence in economic activity. This demand led to increased loan disbursements, particularly in sectors such as trade, manufacturing, agriculture, and SMEs, contributing to overall economic growth.

In terms of customer deposits, Absa Bank Uganda experienced a notable 16.3% growth, reaching UGX2.9 trillion. This increase was fueled by an expanded customer base, driven by new acquisitions and enhanced digital and alternate channel utilization.

The bank’s commitment to delivering superior customer experiences is evident in its strong growth across various product categories, including personal mortgages, credit cards, and asset finance, which registered impressive growth rates of 40%, 38%, and 188%, respectively.

Looking ahead, Absa Bank Uganda remains optimistic about the economic outlook, anticipating continued growth driven by increased investments in sectors such as oil and gas and regional trade. The bank is strategically positioned to support this growth trajectory while maintaining its focus on delivering exceptional customer experiences and driving digital innovation.

Absa Bank Uganda Limited, a subsidiary of Absa Group Limited, reaffirms its commitment to delivering value to its customers and contributing to the economic development of Uganda. With a solid financial foundation and a strategic focus on growth and innovation, the bank is poised for continued success in the years to come.