Absa’s David Wandera and Michael Segwaya address questions from the media
By Our Reporter
Absa Bank Uganda is positioning for its next phase of expansion following a strong financial performance in 2025, with profit after tax rising by 25.1 percent to Shs 222 billion and customer deposits climbing 46.4 percent to Shs 4.6 trillion.
The growth in deposits, alongside a 29.4 percent increase in total assets, has strengthened the bank’s balance sheet and enhanced its capacity to extend credit as demand for financial services continues to rise.
“Our performance in 2025 reflects the deliberate choices we have made to strengthen the foundations of the business,” said David Wandera, Managing Director of Absa Bank Uganda. “This is evident in the growth of our balance sheet and a 25.1 percent increase in profit after tax to Shs 222 billion, driven by both funded and non-funded income streams.”
Wandera said the bank’s strategy has focused on deepening customer understanding, investing in digital capabilities and deploying capital more efficiently, positioning Absa to capture emerging opportunities in a growing economy.
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Absa’s David Wandera and Michael Segwaya address questions from the media
By Our Reporter
Absa Bank Uganda is positioning for its next phase of expansion following a strong financial performance in 2025, with profit after tax rising by 25.1 percent to Shs 222 billion and customer deposits climbing 46.4 percent to Shs 4.6 trillion.
The growth in deposits, alongside a 29.4 percent increase in total assets, has strengthened the bank’s balance sheet and enhanced its capacity to extend credit as demand for financial services continues to rise.
“Our performance in 2025 reflects the deliberate choices we have made to strengthen the foundations of the business,” said David Wandera, Managing Director of Absa Bank Uganda. “This is evident in the growth of our balance sheet and a 25.1 percent increase in profit after tax to Shs 222 billion, driven by both funded and non-funded income streams.”
Wandera said the bank’s strategy has focused on deepening customer understanding, investing in digital capabilities and deploying capital more efficiently, positioning Absa to capture emerging opportunities in a growing economy.
The lender’s performance reflects the rollout of a refreshed strategy anchored on customer-centricity, strengthened Pan-African integration, disciplined execution and innovation-led growth. These pillars have translated into improved customer experience, stronger balance sheet fundamentals and increased participation in regional and global transactions.
Michael Segwaya, Chief Financial Officer and Executive Director, said the growth in deposits and assets has reinforced the bank’s liquidity position and funding base. “The growth in customer deposits and total assets has enhanced our funding base and liquidity, positioning us to support increased credit demand as economic activity expands, while maintaining disciplined capital allocation,” he said.
Operational efficiency and risk management also remained central, with the bank maintaining a resilient cost-to-income ratio supported by a strong control environment.
At the same time, Absa is advancing strategic growth opportunities, including the proposed acquisition of Standard Chartered’s Retail and Wealth Management business in Uganda, as well as continued investment in digital innovation.
Uganda’s macroeconomic outlook remains supportive, with growth projected at between 6 and 7 percent by the World Bank and International Monetary Fund, driven by strong domestic demand, infrastructure investments and the anticipated start of oil production.
Absa’s performance has also been reflected in its contribution to key sectors of the economy. The bank extended a USD 50 million facility to Uganda Electricity Distribution Company Limited to support electricity distribution and participated in a USD 100 million syndicated facility to MTN Uganda to accelerate digital connectivity. It has also partnered with Tata to support affordable student mobility solutions.
Digital banking continues to be a major growth driver. Payment volumes rose by 18.5 percent, outperforming the market average of 11 percent, while mobile banking transaction values increased by 39.4 percent to Shs 15.5 trillion. The growth signals a structural shift toward digital channels, supported by enhanced platforms that allow customers to open accounts in under 10 minutes and access services such as multi-currency virtual cards, Pay by Link and mobile-based loans.
Wandera said the anticipated start of oil production is expected to unlock a new phase of economic activity. “This creates a clear opportunity to expand our capacity and support growth at scale,” he said, citing expectations of increased foreign direct investment, stronger regional trade and expansion across sectors such as agriculture and manufacturing.
The bank’s market performance has also drawn regulatory recognition, with the Bank of Uganda naming Absa the Best Performing Primary Dealer Market Maker in government securities for the period October 2024 to September 2025.
The results point to a bank strengthening its core while preparing for expansion, leveraging capital growth, digital transformation and regional integration to position itself for the next wave of economic activity.
