Finance Trust Bank has announced its 2025 performance, reporting its strongest financial performance to date in 2025, posting a 32.6% growth in customer deposits and a 74.4% jump in net profit, as the lender capitalised on balance sheet expansion, improved asset quality, and disciplined cost management.
The bank’s profit after tax rose sharply to UGX 18.1 billion, up from UGX 10.36 billion in 2024, while total income increased by 10.4% to UGX 134.1 billion, reflecting steady growth in its core lending and transactional business.
Customer deposits emerged as the standout driver of the year, climbing from UGX 340.7 billion to UGX 451.7 billion, a significant 32.6% increase, underscoring growing customer confidence and successful mobilisation strategies.
At the same time, the bank maintained a measured lending approach, with net loans and advances growing by 11.4% to UGX 397 billion, indicating a cautious yet steady credit expansion strategy in a high-interest-rate environment.
Strong growth in a tight operating environment
Despite operating in what management described as a challenging macroeconomic environment, Finance Trust Bank expanded across all major financial indicators.
“The operating environment during the year was characterised by tight liquidity conditions and relatively high interest rates, which continued to shape the cost of funds and access to credit across the financial sector,” Managing Director Annet Nakawunde noted.
“Despite this environment, the Bank delivered strong financial results, with total assets growing by 21.2% from UGX 551.0 billion to UGX 668.0 billion.”
This was on the back of growth in both the loan book and investment securities, the latter increasing by 30.2% to UGX 46.0 billion.
The expansion in assets was matched by strong liability growth, particularly deposits, which now account for the largest share of the bank’s funding base.
Profitability driven by revenue growth and cost discipline
A closer look at the income statement shows that profitability gains were driven by a combination of revenue expansion and relatively controlled cost growth.
Interest income from loans rose by 12.8% to UGX 100.2 billion, remaining the dominant revenue stream, while fees and commissions grew by 8.1% to UGX 21.6 billion, reflecting increased transactional activity.
Total income rose to UGX 134.1 billion, while total expenditure grew marginally by 1.8% to UGX 109.8 billion, creating a widening margin that translated into a 79.2% increase in profit before tax to UGX 24.3 billion.
Management attributed the strong bottom-line performance to both growth and efficiency gains.
“The strong performance recorded during the year was driven by growth in customer deposits, particularly institutional and escrow deposits, growth in the SME and business loan portfolio, and expansion of the Bank’s investment portfolio,” Nakawunde said.
She added that cost discipline and improved credit management played a key role:
“The Bank also continued to focus on mobilising lower-cost deposits and maintaining disciplined cost management. Operating expenses grew marginally during the year, while bad debt expenses were reduced because of strengthened credit monitoring and loan recovery efforts.”
Improved asset quality supports sustainable growth
The bank’s performance was further supported by improvements in asset quality, with non-performing loans declining by 14.4% to UGX 11.2 billion, down from UGX 13.1 billion in 2024.
Interest in suspense also declined, pointing to better loan performance and recovery efforts, even as the bank expanded its lending portfolio.
At the same time, provisions for bad and doubtful debts increased by 15.4% to UGX 4.98 billion, suggesting a continued prudent approach to risk recognition.
The combination of moderate loan growth and improving asset quality reflects a deliberate strategy to balance expansion with risk management.
“Management continued to strengthen credit risk management, portfolio monitoring, and recovery processes to ensure sustainability of the loan book, particularly within the Micro, Small and Medium Enterprises,” Nakawunde said.
Capital and liquidity remain strong
Finance Trust Bank maintained solid capital buffers, with core capital rising to UGX 88.3 billion and total qualifying capital increasing to UGX 92.3 billion.
Capital adequacy ratios improved, with core capital to risk-weighted assets at 17.29% and total capital ratio at 18.07%, both comfortably above regulatory thresholds.
Liquidity also strengthened, supported by the surge in customer deposits and reduced reliance on banking institutions, which declined from UGX 21.9 billion to UGX 8.5 billion.
This positions the bank well for its next phase of strategic repositioning.
Finance Trust Bank Chairperson (centre) and Managing Director (third right) pose with senior executives after receiving the ISO/IEC 27001:2022 certification, marking a key milestone in the bank’s commitment to information security, operational excellence, and its broader strategy of building a future-ready institution amid strong financial performance in 2025.
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A review of Finance Trust Bank’s five-year performance trajectory reinforces the strength of its 2025 results, with the latest year standing out as a clear inflection point across nearly all major indicators.
Customer deposits, which have been the bank’s most consistent growth driver, rose from UGX 183.4 billion in 2021 to UGX 276.8 billion in 2022—an exceptional 50.9% jump—before flattening in 2023 at UGX 276.7 billion. Growth resumed in 2024 at 23.1%, but it is the 32.6% surge in 2025 to UGX 451.7 billion that marks the strongest expansion since the post-pandemic rebound, signalling renewed momentum in liability mobilisation.
The loan book has followed a more measured but steadily upward trajectory, growing from UGX 242.5 billion in 2021 to UGX 397 billion in 2025. However, the pace of growth has been deliberately moderated—from 9.6% in 2022 to 9.6% again in 2023, accelerating to 22.3% in 2024 before easing to 11.4% in 2025—suggesting a shift toward more disciplined, risk-aware lending even as the balance sheet expands.
Total assets tell a similar story of accelerating scale. After growing modestly by 12.0% in 2022 and 5.5% in 2023, the bank recorded a stronger 18.4% expansion in 2024, before delivering its fastest growth in the period at 21.2% in 2025, reaching UGX 668 billion. This reflects a combination of deposit growth, investment expansion, and balance sheet optimisation.
On the income side, growth has been steady but incremental, rising from UGX 92.6 billion in 2021 to UGX 134.1 billion in 2025. However, annual growth rates have remained relatively contained—15.2% in 2022, 1.9% in 2023, 11.8% in 2024, and 10.4% in 2025—indicating that the real breakout in 2025 was not revenue-led, but efficiency-driven.
It is in profitability where the bank’s 2025 performance stands out most decisively. Net profit declined sharply from UGX 9.2 billion in 2021 to UGX 3.7 billion in 2023, before recovering to UGX 10.4 billion in 2024. The 74.4% surge in 2025 to UGX 18.1 billion is therefore not just growth—it is a structural rebound and the highest profit level in the bank’s recent history, reflecting improved margins, cost discipline, and stronger asset quality.
| Table 1: Finance Trust Bank Performance (2021–2025): Values & Growth Rates | |||||||||
| Metric | 2021 | 2022 | Growth % | 2023 | Growth % | 2024 | Growth % | 2025 | Growth % |
| Customer Deposits (UGX bn) | 183.4 | 276.8 | 50.9% | 276.7 | -0.04% | 340.7 | 23.1% | 451.7 | 32.6% |
| Loans & Advances (UGX bn) | 242.5 | 265.8 | 9.6% | 291.4 | 9.6% | 356.3 | 22.3% | 397.0 | 11.4% |
| Total Assets (UGX bn) | 393.9 | 441.3 | 12.0% | 465.5 | 5.5% | 551.0 | 18.4% | 668.0 | 21.2% |
| Total Income (UGX bn) | 92.6 | 106.7 | 15.2% | 108.7 | 1.9% | 121.5 | 11.8% | 134.1 | 10.4% |
| Net Profit (UGX bn) | 9.2 | 8.5 | -7.6% | 3.7 | -56.5% | 10.4 | 181.1% | 18.1 | 74.4% |
Strategic shift: Transition to Tier II licence
One of the most significant strategic developments during the year was the decision to transition from a Tier I commercial banking licence to a Tier II credit institution licence, following changes in regulatory capital requirements.
“In line with the Bank’s long-term strategic direction, the Board of Directors approved the strategic decision in 2025 for the Bank to transition to a Tier II Credit Institution licence,” Nakawunde said.
She explained that the move aligns with the bank’s core focus areas:
“This strategic decision was aligned with the Bank’s core business model of inclusive finance, SME banking, and community banking, and allows the Bank to optimise its capital and focus on market segments where it has strong expertise and competitive advantage.”
The transition, which became effective on 1 April 2026, follows a year of operational and compliance preparation.
Focus on inclusion, SMEs and digital expansion
Finance Trust Bank continues to position itself as a key player in financial inclusion, particularly targeting women, SMEs, and underserved communities.
“Sustainability and financial inclusion remain central to the Bank’s strategy and operations,” Nakawunde said.
During the year, the bank expanded its reach by deepening its presence across agency banking and digital channels, while also growing its SME and business lending portfolio. This expansion was complemented by targeted financial literacy and training programmes aimed at equipping customers—particularly small business owners and underserved segments—with the knowledge and skills needed to better manage their finances and grow their enterprises.
The bank also refreshed its strategic identity, adopting a new vision: “To be a future-ready bank growing communities sustainably.”
And a mission focused on: “To deliver innovative and inclusive financial solutions to sustainably empower communities with a special focus on women.”
Operational strengthening and future readiness
Beyond financial performance, the bank made significant investments in operational resilience and institutional capacity.
Key milestones during the year included the implementation of a Target Operating Model aimed at enhancing operational efficiency and organisational effectiveness. The bank also achieved ISO/IEC 27001:2022 certification, reinforcing its commitment to information security and robust risk management practices. In addition, it continued to invest in staff capacity and leadership development, strengthening internal capabilities to support its long-term growth and transformation agenda.
“The Bank continued to invest in its people through capacity development programmes, leadership development, and initiatives aimed at improving staff welfare,” Nakawunde said.
Outlook: Growth with discipline
Looking ahead, Finance Trust Bank is prioritising deposit mobilisation, digital expansion, and efficiency improvements, while maintaining a cautious approach to risk.
“Looking ahead, the Bank remains focused on growing its Small, Micro, and medium enterprises, business banking portfolio, mobilising low-cost deposits to reduce the cost of borrowing, expanding digital banking and alternative delivery channels, improving operational efficiency, and maintaining strong risk management practices to ensure sustainable growth,” Nakawunde said.
The Managing Director also credited the bank’s performance to a broad ecosystem of stakeholders.
“The Bank’s strong performance has also been made possible through strategic partnerships with like-minded organisations… including MTN Uganda, Airtel, Wendi, GROW, Aceli, AbiTrust and our lenders,” she said.
She also highlighted the role of customers, staff, and regulators.
