A photo montage of Uganda’s bank CEOs in 2024
The banking industry remained safe and sound over the year to June 2025, reveals the recently released Bank of Uganda Integrated Annual Report 30 JUNE 2025.
“Growth remained strong, supported by BOU’s accommodative policy stance and targeted measures aimed at reinforcing the stability of the financial sector,” the report reveals.
A summary of key performance highlights for the banking sector is indicated below:
According to the report, total assets increased by 13.7% to UGX 61.3 trillion in Juned 2025, up from UGX 53.9 trillion in June 2024.
“This was driven largely by a 16 percent increase in government securities holdings to UGX 17.4 trillion, reflecting strategic liquidity management,” the report says.
It adds that customer deposits grew by 14.2% to 41.6 trillion in 2025, up from UGX 36.4tn in 2024.
According to BoU, this was supported by increased foreign currency purchases by BoU.
“Liquid assets rose by 33.4 percent to UGX 23.1 trillion, increasing the liquid assets to deposits ratio to 56.4 percent. The sector maintained robust liquidity ratios with LCR at 498.7 percent and NSFR at 184 percent, well above regulatory thresholds,” the report says.
It adds that loans and advances to the private sector grew by 9.2% in 2025 compared to 6.8% in 2024.
According to BoU, this is the highest growth in three (3) years, signaling cautious but positive credit expansion despite remaining below the long-term target of 13.5 percent.
The report indicates that Non-performing loans declined in 2025, with the NPL ratio standing at 3.7% compared to 4.9% in 2024.
This was “supported by a reduction in NPL stock to UGX 881.6 billion. Expected Credit Losses (ECLs) also decreased to UGX 761.2 billion, reflecting enhanced borrower repayment and risk management,” BoU says.
The Central Bank says Aggregate Net Profit after Tax (NPAT) grew by 36% to UGX 1.9 trillion in 2024/25, from UGX 1.4tn in 2023/24.
This is after Return on Assets (ROA) improved to 3.3 percent.
“This was supported by a 10.7 percent rise in interest income, alongside significant reductions in expected credit losses,” BoU says.
It adds that the sectoral Core Capital to Risk-Weighted Assets Ratio (Core CAR) improved to 25 percent, with all subsectors exceeding regulatory minimums.
“Notably, all Domestic Systemically Important Banks (DSIBs) met systemic risk buffer requirements,” BoU says, adding that the reliance on the BOU Standing Lending Facility (SLF) which banks can tap into to meet overnight liquidity demand reduced during the year, indicating stronger self-sufficiency in liquidity management across the banking sector.
