Absa Uganda generates Sh146billion in profit after taxes.

According to financial results for the year ended December 2023, Absa Bank Uganda has recorded a revenue increase of Sh64 billion, marking a growth of 15.6% compared to the previous year. This growth has led to a profit after tax of Sh146 billion. The surge in revenue is mainly attributed to a 42% increase in transactional banking and trading income.

The Managing Director of Absa Bank Uganda, Mumba Kalifungwa, stated that the bank is still witnessing a rise in customer confidence, as seen by the 30% annual growth in customer banking transactions and the 36% annual growth in the use of trade instruments.

“We observed a rise in the use of our working capital and trade solutions by customers seeking to meet their business finance needs as a result of the economic recovery”

At Sh1.76 trillion at the end of 2023, the bank’s customer loan portfolio increased by 12.9%, or a 10.6% average growth rate over the previous three years.

Absa Bank Uganda’s Executive Director and Chief Financial Officer, Michael Segwaya, stated that the 5.2% economic growth in 2023 despite a number of macroeconomic obstacles, such as underlying inflationary pressures, is what drives this performance.

He continues, saying that the primary reason they disbursed more loans was because customers were requesting more working capital, and there trade loans and overdraft utilization yielded growth rates of 19% and 29%, respectively.

“This is in line with our drive to support business growth by extending financing to key sectors including trade, manufacturing, agriculture, SME’s, ultimately contributing to economic growth,” Segwaya says.

He additionally highlighted that a stronger customer value proposition led to notable increases in the uptake of personal mortgages, credit cards, and asset financing, with record growth rates of 40%, 38%, and 188%, respectively.

The amount of customer deposits increased by 16.3% to UGX2.9 trillion, primarily due to higher usage of digital and alternative channels and a rise in the number of active customers brought about by New to Bank acquisitions.

Absa Bank Uganda Limited is a part of Absa Group Limited and its one of the biggest and most diverse financial services groups in Africa, which is listed on the Johannesburg Stock Exchange. It has 79 ATMs and 39 branches across the country.