• 15.4% growth in revenue to UGX365bn
• 2.7% growth in customer deposits to UGX2.421 trillion, maintaining a Cumulative Annual Growth Rate (CAGR) average of 10.6% for the third year
• UGX110 billion in profit after tax, 169% growth in profitability from the previous year 2020, and 43% against 2019
• 77.8% drop in impairment compared to the previous year
• Customer gross loans stand at UGX1.437 trillion
• Total balance sheet growth of 13.1% to UGX4 trillion

Absa Bank Uganda has announced a profit after tax of UGX110 billion for the year ended December 2021, representing a 169% growth in profitability from the previous year.

“Despite a tough operating environment, economic recovery was faster than anticipated evidenced by the remarkably resilient performance and expansion of the economy by an estimated 5.3%. Private sector business growth was underpinned by a rebound in activity in agriculture, construction, and public administration.

We registered a significant drop in impairment of 77.8% as a result of increased improvement in the construct of our loan book indicating a faster than anticipated recovery from the adverse economic impact of the various Covid-19 containment measures,” said Mumba Kalifungwa, Managing Director, Absa Bank Uganda.

The bank also delivered a 15.4% growth in revenue to UGX365 billion indicating a UGX21 billion growth from 2020 attributed to sustained customer deposit performance throughout the year, coupled with market liquidity.

“Our net customer assets stand at Ushs 1.308 trillion, marginally up by 0.1% which can be attributed to weak credit demand caused by the adverse effects of the pandemic. We continued to extend financing to key sectors that drive the economy including manufacturing, trade, and agriculture. Considering the full reopening of the economy and projected economic growth of 5.5% for 2022, we expect a rebound in business activity across all sectors and anticipate that we will lend more to the private sector,” Michael Segwaya, Executive Director and CFO said.

The bank’s customer deposits grew by 2.7% to 2.421 trillion, maintaining a 10.6% cumulative annual growth rate for the third year running. There was also a 21.6% rise in total equity from 2020.

“We managed to grow our customer deposits despite a challenging year reflecting increased customer trust in the Absa brand. Our position in the market is stronger and we are even more well poised to support economic growth across all key sectors as the economy expands. We are well-capitalized with our total capital ratio at 24.3%, well above the 15% regulatory limit,” Mumba added.

Total costs remained flat year-on-year as a result of improved cost management and reduction in brand separation costs.
“Our commitment to being a strong force for good is unwavering as we look to deliver shared value within the communities that we operate. Our people are our greatest asset and we invested significantly in human capital development and enhanced staff productivity to drive business growth. Whereas our costs went up, they remain under control and in line with inflation,” Mumba stated.

Absa Uganda intends to continue to leverage digital technology to deliver seamless customer experiences and drive business growth as innovation remains key to the realization of its ambition to be a digitally-led bank.
“We remain cautiously optimistic in our outlook for 2022. Full reopening bodes well for an economic rebound and monetary policy remains supportive of the recovery of the economy. We remain committed to providing