KAMPALA, Uganda — Equity Bank Uganda Limited reported a pretax profit of UGX 13.1 billion for 2024, a significant turnaround from a UGX 36.6 billion loss in the previous year.

The 136% increase in pretax profit followed what the bank described as an “aggressive course correction.” This included writing off UGX 207.4 billion in bad loans and making an UGX 88.5 billion provision for bad and doubtful debts. These heavy write-offs may indicate increased regulatory pressure regarding pandemic-related bad loans that have affected the banking sector.

The bank adopted a more cautious lending approach, resulting in a 19% decrease in net loans, from UGX 1,610 billion to UGX 1,309 billion. Overall, deposits declined by 6% to UGX 2,802 billion from UGX 2,974 billion, and assets also shrank by 10% to UGX 3,389 billion from UGX 3,748 billion. The bank’s bottom line, however, showed improvement with the reported profit.

The dip in deposits may be partly attributed to negative publicity surrounding cyber-fraud incidents in the local banking industry starting in 2023, which led to some depositors moving their funds to other institutions.

Despite the financial adjustments, Equity Bank continued its social programs, sponsoring 13 Ugandan students to international universities through its Equity Leaders Program. Managing Director Gift Shoko emphasized the program’s role in “investing in the next generation of leaders.”

The bank also launched the second phase of a tree-planting campaign aiming to plant 43,000 indigenous trees on Busoga College Mwiri hill, as part of its broader goal to plant 35 million trees.

Shoko noted the bank’s expanded strategic framework, which now includes “Sustainability” as a key pillar alongside its commercial and social engines. He stated that Equity Bank recognizes its responsibility to contribute to Uganda’s progress and remained committed to creating shared value for stakeholders in 2024.