Bank of Baroda Uganda has registered a 17 percent increase in annual profit, driven by steady growth in lending and customer deposits, reflecting continued momentum in Uganda’s banking sector.
The bank reported a profit after tax of Shs156.8 billion in 2025, up from Shs133.95 billion recorded in 2024. Total assets also grew by 13.5 percent to Shs3.49 trillion, supported by expansion in loans and deposits.
Net loans rose by 11.5 percent to Shs1.6 trillion, while customer deposits increased by 14.3 percent to Shs2.5 trillion, strengthening the bank’s balance sheet and supporting business growth.
The results come at a time when Uganda’s banking industry is benefiting from relatively stable macroeconomic conditions, easing inflation and improved customer activity, despite rising operational costs and growing competition among lenders.
Managing Director Shashi Dhar said the bank’s performance reflects strong execution of its strategic priorities and a continued focus on customers.
“The financial performance for 2025 reflects the bank’s resilience and disciplined execution of its strategic priorities, supported by a customer-centric approach that has driven growth across our core business segments,” he said.
The bank noted that it continues to invest in digital platforms to improve service delivery and enhance operational efficiency. It also emphasized strong risk management and compliance with regulatory requirements as key pillars supporting sustainable growth.
Sector records strong performance
Bank of Baroda’s results come amid strong performance by other major banks, signaling broader growth across the sector.
Stanbic Bank Uganda, the country’s largest lender, reported a 20.4 percent rise in profit after tax to Shs586.2 billion in 2025, supported by strong loan growth and increased trading income.
The bank’s loan portfolio grew to Shs5.1 trillion, while income from trading and marketable securities rose significantly, highlighting the increasing role of treasury operations alongside traditional lending. Fees and commissions also improved due to higher transaction volumes and increased customer engagement.
However, higher revenues across the sector have been accompanied by rising costs, particularly interest expenses on deposits as competition for funding intensifies. Banks are also facing increased spending on technology, regulatory compliance and customer acquisition.
A stable exchange rate environment has helped maintain macroeconomic stability, although it has reduced foreign exchange trading gains for some banks, pushing institutions to diversify income sources.
For Bank of Baroda, the focus remains on steady growth, operational efficiency and maintaining a conservative risk approach to remain competitive in the evolving banking landscape.
Focus on sustainability
Beyond financial performance, the bank is also advancing its sustainability agenda through initiatives aimed at reducing environmental impact and supporting communities.
These include promoting digital banking to reduce paper usage, distributing solar lamps in underserved communities, and cutting down on single-use plastics in its operations.
Looking ahead to 2026, the bank plans to increase investment in technology, enhance customer experience and strengthen staff capacity as competition in the banking sector continues to grow.
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