Absa Bank Uganda Achieves Shs146 Billion Profit After Tax in 2023

Absa Bank Uganda reported an impressive Shs146 billion profit after tax for the year ending December 2023. The bank also recorded significant growth across key financial metrics, indicating strong customer confidence and robust financial performance.

The bank’s financial results, released on Tuesday, show a 16.3% increase in customer deposits to Shs2.9 trillion and a 12.9% rise in loan disbursements. Additionally, Absa Bank Uganda’s revenue grew by 15.6% to Shs474 billion, largely driven by a 42% surge in transactional banking and trading income.

Mumba Kalifungwa, Managing Director of Absa Bank Uganda, highlighted the bank’s increased customer confidence, noting a 30% year-on-year increase in customer banking transactions and a 36% rise in trade instrument utilization.

The bank also reported a 12.9% increase in customer loans, ending the year at Shs1.76 trillion, reflecting a 10.6% three-year cumulative average growth rate. This performance was driven by the 5.2% growth in Uganda’s economy in 2023, despite macro-economic challenges.

Michael Ssegwaya, Executive Director and CFO of Absa Bank Uganda, noted that the bank disbursed more loans due to heightened customer demand for working capital. Personal mortgages, credit card, and asset finance uptake also experienced record growth of 40%, 38%, and 188%, respectively.

Customer deposits grew by 16.3% to Shs2.9 trillion, driven by increased active customer base and higher digital channel usage. Absa Bank’s strategic focus on people and customer experience has contributed to its operational success, with a 23% rise in operating expenses.

The bank’s strategy prioritizes delivering strong returns, developing people, and maintaining a sustainable risk and control environment. With total equity growth of 14.6%, Absa Bank Uganda is poised to support economic expansion across key sectors.

Looking ahead to 2024, the bank anticipates continued economic growth driven by increased investment in the oil and gas sector and regional trade expansion. Mumba Kalifungwa expressed confidence in the bank’s ability to support this growth, stating, “We are financially stable and growing.”

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