NCBA Bank Uganda has announced a 40% increase in its profit before tax earnings, reaching UGX 46 billion in 2024. This significant growth, up from UGX 33 billion in 2023, underscores the bank’s strategic execution and ongoing commitment to digital transformation, the CEO Mark Muyobo told journalists at a press briefing in Kampala yesterday. The bank’s 2024 financial results reveal a strong trajectory across key performance indicators. Net Loans and Advances experienced a notable expansion of 18%, climbing to UGX 298 billion. Concurrently, customer deposits demonstrated robust growth, rising by 15% to UGX654 billion from UGX 567 billion in the preceding year. This surge in deposits reflects increasing customer confidence and the bank’s growing market penetration. The bank’s total assets also witnessed significant expansion, reaching about UGX960 billion. This growth is further evidenced by a 20% increase in total Income, which rose from UGX114 billion in 2023 to UGX 137 billion in 2024. The bank’s gross loans and advances also saw an upward trend, increasing by 11% from UGX 283 billion in 2023 to UGX 314 billion in 2024. CEO Muyobo reflected on the institution’s journey since its inception in 2020 through the merger of NIC and CBA, and growing to become East Africa’s third-largest commercial bank, with assets totalling UGX742 billion. James Mulandi, the chief financial officer, highlighted the drivers behind the bank’s performance during a media briefing at the bank’s headquarters. “Our strong 2024 performance, marked by a 40% growth in profit before tax and double-digit asset growth, is a testament to our disciplined execution, prudent risk management practices, and our unwavering commitment to delivering sustainable value to our stakeholders,” Mulandi stated. He further emphasized that the strong results are underpinned by strategic investments that position NCBA for even greater impact in the upcoming fiscal year. The financial report also indicated a strengthening of the bank’s balance sheet, which grew by 13% to close at UGX 963 billion. This expansion was primarily fuelled by the growth in customer deposits and a significant 90% increase in recoveries during the year. Furthermore, NCBA Bank Uganda demonstrated improved asset quality, leading to a reduction in credit impairment charges. The Non-Performing Loan (NPL) ratio decreased from 6.4% in December 2023 to 3.8% in 2024, signalling enhanced risk management and a healthier loan portfolio. The financial results underscore NCBA Bank Uganda’s strong operational efficiency and its ability to navigate the dynamic economic landscape, positioning it for continued growth and contribution to the Ugandan financial sector.
