ABC Capital Bank Limited has reported a sharp turnaround in its 2025 financial performance, posting a significant rise in profitability as the lender consolidates its recovery strategy anchored on digital innovation, product diversification and improved governance.
The bank’s profit after tax surged by 285 percent to Shs520.4 million, up from Shs135.1 million in 2024. This marks a sustained recovery from a Shs515 million loss recorded in 2023, underscoring a steady return to profitability.
Profit before tax rose to Shs702.8 million from Shs404.5 million, supported by tighter cost management and stronger performance across key business segments.
Net operating income grew to Shs7.59 billion, driven largely by increased interest income alongside stable non-interest revenue streams—signalling a more balanced and resilient earnings base.
The bank’s balance sheet recorded modest but steady growth, with total assets rising to Shs60.8 billion from Shs59.2 billion in 2024. Shareholders’ equity also improved to Shs32.4 billion, reinforcing the institution’s capital base and overall financial stability.
Loans and advances expanded slightly to Shs21.2 billion, reflecting cautious credit growth in line with the bank’s risk management approach.
Executive Director Christopher Kabagambe said the results reflect disciplined execution of a long-term turnaround plan.
“This performance points to the progress we are making in repositioning the bank for sustainable growth. It reflects deliberate strategic choices, stronger governance structures and a clear focus on innovation,” he said.
Kabagambe noted that investments in digital systems and new products are beginning to yield tangible results, improving operational efficiency while widening access to financial services.
He added that beyond headline profitability, the bank has focused on improving the quality of earnings through prudent risk management and efficient capital deployment.
Key Milestones
During the year, the bank registered several institutional developments aimed at strengthening its market position.
It transitioned to a Tier II (Class 5) licence issued by the Bank of Uganda effective July 1, 2024, enhancing its regulatory standing and operational scope.
The lender also relocated to newly designed premises to improve customer experience and reinforce its corporate identity.
As part of its digital transformation agenda, the bank rolled out a mobile lending platform to expand access to credit for individuals and small businesses, while improving turnaround times.
In addition, it introduced financing under the Agricultural Credit Facility to support the farming sector and align with national priorities under the government’s ATMS framework.
Looking ahead, ABC Capital Bank says it will maintain focus on digital innovation, targeted lending and product expansion to deepen its presence in the market.
Management expressed confidence that the bank is now firmly on a recovery path, with a strategy geared towards delivering sustainable growth and long-term value for customers, shareholders and other stakeholders.
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