In what the bank has described as “a year of strong progress,” Bank of Africa has released its 2025 financial performance, underpinned by significant double-digit growth across all key fundamentals: deposits, lending, income, assets, and profitability.
“2025 was a year of strong progress for Bank of Africa – Uganda. We delivered improved financial results while continuing to strengthen the trust placed in us by our customers, partners, and communities,” said Managing Director Arthur Isiko.
At the headline level, Bank of Africa posted a 34% increase in profit after tax to UGX 34.4 billion, up from UGX 25.7 billion in 2024, marking one of its strongest earnings performances in recent years.
Isiko attributed this performance to both growth and discipline, noting that profit growth was “supported by steady growth in our core business and disciplined management of costs.”
Total income rose by 13% to UGX 181.1 billion, driven primarily by interest income from loans and government securities, which continue to form the backbone of the bank’s earnings.
Crucially, expenditure grew at a slower pace, rising by just 7% to UGX 132.2 billion, allowing the bank to widen its margins and convert a larger share of revenue into profit.
Deposits cross the trillion mark
Perhaps the most defining feature of the bank’s 2025 performance is the strength of its funding base. Customer deposits surged by 22% to UGX 1.05 trillion, crossing the UGX 1 trillion mark for the first time.
“Our growth was driven by our customers’ confidence in the Bank,” Isiko said, adding that deposits growth “reflects the strength of our relationships and the relevance of our products.”
The strong deposit inflow has also reinforced the bank’s liquidity position, ensuring it remains well-buffered in an evolving economic environment.
On the asset side, the bank expanded its loan book aggressively, with net loans and advances growing by 26% to UGX 604 billion, up from UGX 481 billion the previous year, reflecting increased credit demand from both individuals and businesses and a more assertive growth strategy following the subdued lending performance seen in 2023.
“We also expanded lending to individuals and businesses,” Isiko noted, emphasising that the bank “remained focused on responsible lending to ensure sustainable growth.”
However, the bank also reported that non-performing loans rose to UGX 17.6 billion, while bad debts written off increased significantly to UGX 9.3 billion, alongside higher provisions for bad and doubtful debts.
Even so, the Bank maintains that its approach remains disciplined and forward-looking.
“We maintained a balanced approach to growth, expanding credit responsibly while preserving asset quality,” Isiko said.
“Although non-performing loans increased in absolute terms, this was against a significantly larger loan book. Our non-performing loans as a share of the loan book (NPL ratio) remained contained at 2.8%, below the banking industry average of 3.7%, reflecting disciplined underwriting, active recovery management, and prudent risk controls.”
“We also took a proactive approach to provisioning and writing off legacy exposures, further strengthening the balance sheet and positioning the Bank for sustainable growth,” he added.
Balance sheet expansion signals renewed momentum
Total assets grew by 17% to UGX 1.4 trillion, reinforcing the bank’s upward trajectory after a period of stagnation in 2023.
“We continued to strengthen the Bank’s financial position to ensure stability and reliability for our customers,” Isiko said, noting that “our capital levels remained well above regulatory requirements, and we maintained strong liquidity throughout the year.”
This expansion has been supported by increased holdings in government securities, a growing loan book, and improved funding from both customers and institutional sources.
Efficiency gains underpin profitability
Operating expenses rose moderately to UGX 74.2 billion, but at a slower pace than income, allowing the bank to benefit from positive operating leverage.
At the same time, the bank continued to invest in its long-term capabilities. “We continued to invest in our systems, people, and customer experience to support long-term growth,” Isiko said.
This reflects ongoing efforts to improve efficiency while strengthening service delivery through digital platforms and partnerships.
Digital push and customer access
The bank’s strategic focus on digital transformation and accessibility remained a key theme throughout the year.
“We continued to invest in improving how our customers interact with the Bank,” Isiko noted, adding that “through digital platforms, strategic partnerships, and process improvements, we continue to make banking more accessible, faster, and more convenient.”
He further highlighted collaborations with telecom and fintech partners, which are enabling the bank to reach more customers and enhance everyday banking services.
Operating environment and outlook
Uganda’s economic environment remained broadly stable in 2025, with steady growth and controlled inflation, although businesses and households continue to navigate an evolving landscape.
Looking ahead, the bank remains optimistic about its trajectory.
“We remain optimistic about the future. Our focus will continue to be on supporting our customers, expanding access to financial services, and investing in technology that improves everyday banking,” Isiko said.
He added that “with a strong foundation, a clear strategy, and a committed team, we are well positioned to continue delivering value, not only for our shareholders but for the broader community we serve,” adding: “Together, we are building a stronger, more inclusive financial future,” he concluded.
