KAMPALA – NCBA Bank Uganda has announced its Audited Financial Results for the year ended December 31, 2024, showcasing impressive growth and improved asset quality. The bank’s balance sheet grew 13% to Shs 963 billion, primarily fueled by a 15% increase in customer deposits. Net loans and advances also saw an 18% increase, despite a Shs 12 billion write-off.

According to Mr. James Mulandi, Head of Finance at NCBA Bank Uganda, “Our balance sheet growth is a testament to our focus on customer deposits and prudent lending practices. We’re pleased to see our customers trusting us with their deposits, and we’re committed to providing them with innovative financial solutions.”

The bank’s proactive approach to portfolio management and optimal investment of funds led to a significant improvement in asset quality. Stage 3 (NPL) names contributed to only 3.8% of the overall portfolio, down from 6.4% in 2023. Coverage of individually impaired names increased from 63% in 2023 to 66% in 2024. This improvement in asset quality resulted in a reduction in credit impairment charge, from Shs 12.0 billion in 2023 to Shs 9.6 billion in 2024.

Mr. Mark Muyobo, CEO of NCBA Bank Uganda, attributed the improved asset quality to the bank’s enhanced risk management framework. “In 2024, we implemented an improved risk management framework by reviewing the Credit Risk Management structure, credit management process, and building the resources bench strength of the department,” he said.

“This resulted in a Non-Performing Loan (NPL) ratio of 3.8%, below the industry average of 5.2%, as we continued to register improved asset quality year on year.”

The bank’s digital lending and savings product, Mokash, has been a game-changer in the industry. With over 14 million customers registered on the platform, Mokash has disbursed over Shs 2.8 trillion in loans.

Ms. Philippa Muzahura, Head of Digital Lending and Saving, highlighted the product’s impact. “In the past, banking required a physical visit to a branch, where customers would answer security questions and provide collateral.”

“Today, we’ve revolutionized this process. With our mobile banking platform, customers can access financial services without meeting in person. We use transactional data to make lending decisions, allowing us to provide loans of up to 1.5 million Uganda shillings with Mokash.”

The bank’s corporate banking services prioritize presence and collaboration with clients, supporting them in their planning and budgeting processes. Mr. Malik Isabirye, Head of Corporate Banking, emphasized the importance of building strong relationships with clients. “To become a trusted partner, we prioritize presence and collaboration.”

“When our clients are planning for the next year, we’re there to support them in their budgeting and direction-setting. This approach has earned us a reputation for being proactive and trustworthy, allowing us to secure a significant share of their business.”

With a strong focus on innovation, process improvement, and customer-centricity, NCBA Bank Uganda is well-positioned to continue its growth trajectory and provide customers with the best possible solutions. The bank’s commitment to sustainability is evident in its efforts to minimize its direct impact on climate and climate-related risks, transitioning customers to low-carbon operations, community engagement, and optimizing corporate governance.

As the bank looks to the future, it remains committed to its customers and the community. With a growing customer base and a strong financial position, NCBA Bank Uganda is poised for continued success in the financial industry.