Commercial banks extended loans worth Shs21.46 trillion to customers in 2024
Banks extended loans worth Shs21.46 trillion to customers (individuals and companies) in 2024, up from Shs20.26 trillion in 2023, Business Focus exclusively reports.
Our analysis is derived from the financial statements for the year ended 31st December 2024 that banks have been publishing lately. It’s important to note that banks are compelled to publish their financials for the previous year (in this case 2024) before May of the following year.
Uganda currently has 22 fully fledged commercial banks. This is after three banks including ABC Capital Bank, Opportunity Bank and Guaranty Trust Bank downgraded from a Tier I Commercial Bank License to a Tier II Credit Institution License effective July 1, 2024. This is after they failed to meet Bank of Uganda’s new minimum capital requirement of Shs150bn, resulting into the downgrade. The paid-up capital for tier II credit institutions is Shs25bn.
Like on other key performance parameters, a few banks dominate the market under the loans category.
Business Focus’ analysis shows that the top five banks control 59.69% of the industry loans, while the top 10 banks share 83.04% of the total industry loans. This means 12 banks share a paltry 16.96% of the industry loans.
Largest banks by loans
Stanbic Bank which is headed by Mumba Kenneth Kalifungwa as Chief Executive is Uganda’s largest bank by loans advanced to customers.
This is after its loans grew by 3.55% to Shs4.37 trillion in 2024, up from Shs4.22 trillion in 2023. The lender’s market share under this category is 20.36%. This means Stanbic’s loans advanced to customers beat loans of 12 combined banks whose market share under the loans category is 16.96% compared to Stanbic’s 20.36%.
Like on other key performance parameters, Stanbic is closely followed by Centenary Bank that saw its loans extended to customers grow by 12.77% to Shs3.71 trillion in the year under review, up from Shs3.29 trillion in 2023. Headed by Fabian Kasi as Managing Director, Centenary’s market share under this category is 17.29%, beating 12 banks whose combined market share is 16.96%.
Absa Bank Uganda that is headed by David Wandera as Managing Director is Uganda’s 3rd largest bank by loans. This is after its loans grew by 13.07% to Shs1.99 trillion in 2024, up from Shs1.76 trillion recorded a year earlier. The lender’s market share under this category is 9.27%.
It’s followed by Bank of Baroda in 4th position. Bank of Baroda’s loans grew by 17.07% to Shs1.44 trillion in the year under review, up from Shs1.23 trillion in 2023. Headed by Shashi Dhar as Managing Director, Bank of Baroda’s market share under the loans category is 6.71%.
Equity Bank completes the top five banks in Uganda by loans. Although the lender’s loans advanced to customers reduced by 19.20% to Shs1.3 trillion in 2024, down from Shs1.6 trillion in 2023, Equity bank’s market share under this category is 6.06%.
Equity Bank management that is headed by Gift Shoko as Managing Director has intensified efforts to improve the bank’s performance. Equity returned to profitability in 2024 by posting Shs20.14bn net profit from Shs18.77bn loss recorded a year earlier.
Equity is closely followed by dfcu Bank. Headed by Charles Mudiwa as Managing Director, dfcu’s loans grew to Shs1.13 trillion in 2024, from Shs1.12 trillion recorded a year earlier. This gives the lender a market share of 5.27%.
Housing Finance Bank is Uganda’s 7th largest bank by loans. The indigenous bank that is headed by Michael K. Mugabi as Managing Director saw its loans extended to customers grow by 8.46% to Shs1.08 trillion in 2024, up from Shs995.74bn in 2023. This gives the ever-growing lender a market share of 5.03 under the loans category.
It’s followed by Standard Chartered Bank in 8th position. Its loans advanced to customers reduced by 11.06% to Shs996.13bn in the year under review, down from Shs1.12 trillion in 2023. Its market share under the loans category is 4.64%.
This is after the lender announced it was divesting its Wealth and Retail business. Sanjay Rughani, the StanChart Chief Executive Officer says the divestment process has since been initiated and is expected to be completed within 18-24 months subject to regulatory approvals.
“The bank will ensure that we have a smooth transition to the identified buyer for both our clients and colleagues,” the bank said in a statement.
KCB Bank is Uganda’s 9th largest bank by loans as of December 2024. KCB that is headed by Edgar Byamah as Managing Director saw its loans grow by 18.49% to Shs903.45bn in 2024, up from Shs762.46bn in 2023. Its market share under this category is 4.21%.
Diamond Trust Bank (DTB) that is headed by Godfrey Sebaana as Managing Director completes the top 10 largest banks by loans in Uganda. DTB’s loans advanced to customers grew by 3.2% to Shs902.21bn in 2024, up from Shs874.22bn recorded a year earlier. This gives the lender a market share of 4.2% under the loans category.
Check for more details about banks with largest and smallest loans in the table below;
Smallest banks by loans
12 banks share a paltry 16.96% of the industry loans. Only two banks in the bottom table have a market share above 2%.
PostBank that is headed by Julius Kakeeto as MD/ CEO has a market share of 3.35% under the loans category. This is after its loans advanced to customers grew by 19.26% to Shs718.65bn in the year under review, up from Shs602.59bn in 2023.
It’s followed by Bank of Africa in 12th position with a market share of 2.24%. This is after its loans to customers grew by 12.7% to Shs480.9bn in 2024, up from Shs426.7bn in 2023.
Five banks have a market share above 1% under the loans category. These include I&M Bank (1.9), Finance Trust Bank (1.66%), Citibank (1.49%), NCBA (1.39%) and Bank of India (1%).
Leading from the bottom of the table is Tropical Bank with a market share of 0.54%. Its loans advanced to customers grew to 115.43bn in 2024, up from Shs111.11bn in 2023. This means Tropical is Uganda’s smallest bank by loans. It’s followed by United Bank for Africa (UBA) with a market share of 0.69% under the loans category.
Other banks whose market share under the loans category is below 1% include Cairo Bank Uganda (0.83%), Exim Bank (0.93%) and Ecobank (0.94%).
We’ll continue giving you unmatched analysis about the performance of banks in 2024 and beyond. For tips, opinions and advertising, Tel: 0775170346/0703828741/staddewo@gmail.com. Follow us on Twitter: @TaddewoS @BusinessFocusug
