Finance Trust Bank posted a record 178% profit growth in 2024, driven by strategic partnerships, a customer-focused business model, and major investments in women’s empowerment. The Bank now eyes an even stronger future with Access Bank’s anticipated capital injection.
Finance Trust Bank (FTB) has delivered a stellar financial performance for the year ended 31st December 2024, posting a remarkable 178% surge in after-tax profits to UGX 10.36 billion, up from UGX 3.73 billion in 2023.
Presenting the results, Managing Director Ms. Annet Nakawunde attributed the strong performance to “the Bank’s resilience to market shocks and a true reflection of brand affinity,” adding that it also reflected “customer support, staff commitment and capacity to execute the Bank’s business plan and growth strategies.”
Robust Growth Across Key Financial Metrics
Total assets grew by 18% to UGX 551.0 billion in 2024, compared to UGX 465.5 billion the previous year. Net loans and advances rose by 22% to UGX 356.34 billion, while customer deposits surged 23% to UGX 340.75 billion.
Shareholders’ equity increased by 15% to UGX 78.94 billion, strengthening the bank’s capital position.
The bank also demonstrated prudent credit risk management, registering only a modest 5.51% increase in non-performing loans to UGX 13.08 billion, despite a 22% expansion in the loan book.
“Our zeal for sound risk management practices, culture adherence, teamwork, and leveraging the power of technology to offer the best customer experience to our customers” was central to this growth, Nakawunde noted.
Income grew by 12% to UGX 121.47 billion, driven largely by a 14.5% rise in interest on loans and advances. Meanwhile, total operating expenses grew modestly by 5% to UGX 73.5 billion, reflecting improved cost efficiencies even as the bank expanded its services and digital footprint.
Aggressive Business Model and Strategic Partnerships Fuel Growth
Nakawunde explained that during the year, Finance Trust Bank adopted “a more aggressive business model with more focus on creating value for customers through a segment-based approach.”
Strategic collaborations with organizations such as MTN Uganda, the GROW project funders, FUFA, the Nnabagereka Development Foundation (NDF), and Zimba Women significantly contributed to business growth.
One of the major highlights was the launch of the GROW Project, in partnership with the Private Sector Foundation Uganda and the Ministry of Gender, backed by the World Bank. Through this project, FTB disbursed concessional loans worth over UGX 14 billion to more than 300 individual women entrepreneurs.
“The call for affordable credit for women borrowers as a tool to spur economic empowerment to female business entrepreneurs was realized under the Grow project,” Nakawunde stated. “With more low-cost funding under such projects, we are better positioned to achieve our founders’ objective of realizing economic and social empowerment for women.”
Women’s Empowerment Through Sports
Finance Trust Bank also expanded its social impact initiatives beyond traditional banking by investing UGX 2 billion in women’s football through a five-year sponsorship deal with the Federation of Uganda Football Associations (FUFA).
This commitment will support the FUFA Women’s Super League and Elite League, now renamed the Finance Trust Women Super League and Finance Trust Elite League.
Nakawunde emphasized, “We acknowledge the immense contribution and potential that women’s football has in talent development, creation of employment for the women and all stakeholders across the value chain and the general contribution to economic development of the country that can be realized through sport.”
Strengthening ESG and Community Engagement
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PostBank Wins Top BoU Award as Small Business Recovery Fund Grows to UGX 30 Billion in DisbursementsIn line with sustainable banking practices, Finance Trust Bank intensified its Environment, Social, and Governance (ESG) initiatives.
Key among these were the Bank’s financial literacy programs aimed at empowering women with better money management skills and annual blood donation drives in partnership with Mengo Blood Bank, aimed particularly at saving lives of mothers.
“The Bank continues to empower women with skills through financial literacy. We believe that social and economic empowerment comes with sound financial behavior,” Nakawunde said.
Major Capital Boost on the Horizon: Access Bank Plc Investment
Further positioning itself for accelerated growth, Finance Trust Bank is in the final stages of concluding an equity investment deal with Nigeria’s Access Bank Plc — one of Africa’s largest and fastest-growing banking groups.
The transaction in which Access is acquiring 80% of FTB, once completed, will see Access Bank inject significant capital into FTB, enhancing its capital adequacy and positioning the bank to expand its operations and deepen its financial inclusion agenda.
During 2024, Access Bank Plc secured a conditional “no-objection” from the Central Bank of Nigeria (CBN) to invest in FTB. The regulatory green light was conditional upon Access Bank divesting its investments in four countries to meet Nigeria’s banking regulations. Access Bank has already initiated the divestiture process to meet these conditions.
On the Ugandan side, the Bank of Uganda has granted Finance Trust Bank an extension until 30th June 2025 to conclude the transaction.
Nakawunde confirmed, “As soon as Access Bank Plc completes the divesture, the fund required to recapitalize the Bank shall be moved to FTB to fuel capital compliance,” adding, “We are hopeful that the process will close by 30th June 2025.”
This anticipated capital injection will not only strengthen FTB’s balance sheet but is expected to unlock new opportunities for innovation, technology upgrades, and product diversification.
Outlook: A Brighter Women-First Future Ahead
Buoyed by the strong 2024 performance and the prospects of new capital injection, Finance Trust Bank is optimistic about the future.
“We are certain that the future ahead of us is bright as the prospects that are manifesting will surely change the face of banking for the better,” Nakawunde said.
She concluded by expressing gratitude to regulators, the Board of Directors, staff, and customers:
“Finally, I thank our dear customers that have stayed with us and supported the Bank throughout the year. Your unwavering loyalty to FTB is much appreciated.”
On behalf of Management and staff, she pledged: “We commit to ensuring value for all stakeholders as we Put Women First.”