Uganda’s Agent Banking Company (ABC), a shared industry platform established by the Uganda Bankers’ Association (UBA) in partnership with fintech firm Eclectics, delivered a strong financial performance in 2025, underpinned by rising transaction volumes and steady expansion across the country’s agent banking network.
Revenue Growth Driven by Rising Transaction Volumes
The company posted total income of UGX 7.32 billion, up from UGX 4.78 billion in 2024, reflecting a robust 53% growth driven largely by commissions. Earnings from commissions rose to UGX 6.58 billion, continuing to account for the bulk of ABC’s revenue and reinforcing its position as a transaction-based infrastructure provider to banks and financial institutions. Other income contributed UGX 747.7 million, supporting the overall top line.
This performance mirrors the rapid expansion of Uganda’s agent banking ecosystem. According to the Bank of Uganda’s Integrated Annual Report 2024/25, transaction values on the shared agent banking platform surged by 76.1%, rising from UGX 16.7 trillion in 2024 to UGX 29.4 trillion in 2025. Transaction volumes also grew significantly by 50.5%, from 8.3 million to 12.5 million transactions over the same period.
The data points to not just growth in usage, but also a shift in behaviour. The average transaction value increased by 17%, from UGX 2.0 million to UGX 2.35 million, suggesting that customers are increasingly using agent banking channels for higher-value transactions. This trend reinforces the strategic importance of ABC’s platform, which enables interoperable services across participating institutions.
Expanding Network Deepens Market Reach
Network expansion has been equally strong. The number of agents on the shared platform grew by 49.1%, rising from 15,288 in June 2024 to 22,793 in June 2025, driven largely by recruitment efforts from major banks such as Centenary Bank, KCB Bank, and PostBank. However, the active agent ratio declined from 58% to 48%, reflecting the rapid onboarding of new agents whose transaction activity is still ramping up.
As a shared platform connecting **24 institutions—including 23 commercial banks and one microfinance deposit-taking institution—**ABC sits at the centre of this expanding ecosystem, benefiting directly from increased transaction flows across the network.
Strong Operating Performance and Balance Sheet Growth
Operating costs remained relatively controlled despite the expansion in activity. Total expenditure stood at UGX 3.48 billion, broadly in line with UGX 3.49 billion in 2024. Employee costs rose to UGX 1.66 billion, while administrative expenses increased to UGX 2.21 billion, reflecting ongoing investments in systems, operations, and support infrastructure. Depreciation and amortisation declined to UGX 378.8 million, while finance income of UGX 764.2 million provided an additional boost compared to a finance cost position in the prior year.
As a result, profit before tax rose sharply to UGX 3.85 billion, up from UGX 1.28 billion in 2024, highlighting strong underlying operating performance. However, profit after tax declined to UGX 2.84 billion, compared to UGX 4.27 billion in the previous year. The drop was largely due to a one-off tax credit recorded in 2024, meaning the 2025 earnings reflect a more normalised tax position rather than a deterioration in business fundamentals.
ABC’s balance sheet expanded during the year, with total assets growing to UGX 24.97 billion, up from UGX 19.40 billion in 2024. Non-current assets increased to UGX 13.66 billion, driven by investments in intangible assets, which stood at UGX 6.37 billion, alongside property and equipment valued at UGX 2.20 billion. The company also maintained significant holdings in government securities and deferred tax assets, reflecting a mix of strategic investment and prudent financial management.
Current assets rose to UGX 11.32 billion, supported by a strong liquidity position. Cash and bank balances increased to UGX 5.04 billion, while short-term investments in government securities reached UGX 4.18 billion. Trade and other receivables also grew, in line with higher transaction volumes across the platform.
The company’s equity position strengthened significantly, with total equity rising to UGX 18.89 billion, up from UGX 16.05 billion in 2024. Notably, retained earnings turned positive to UGX 1.65 billion, marking a shift from accumulated losses in the previous year and signalling improved internal capital generation. Share capital remained at UGX 1.0 billion, while capital contributions and preference shares continued to underpin the company’s capital base.
Liabilities remained manageable. Non-current liabilities, largely lease obligations, declined to UGX 32.3 million, while current liabilities increased to UGX 6.05 billion, driven by higher trade payables and balances due to related parties. Despite this increase, ABC maintains a strong equity cushion, reflecting a low-leverage structure and solid financial footing.
Overall, the 2025 performance reflects a business that is scaling efficiently, with revenue growth significantly outpacing cost increases and a strengthened balance sheet supporting future expansion. As agent banking continues to gain traction across Uganda—driven by rapid growth in transactions, expanding agent networks, and increasing usage for higher-value transactions—ABC remains well positioned to capture value from the ecosystem, leveraging its platform to drive both financial inclusion and sustainable profitability.
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