Uganda Development Bank (UDB) recorded a Shs63.4 billion post-tax profit in 2025, as total assets grew by 27% to Shs2.26 trillion, strengthening the bank’s capacity to provide long-term financing to businesses and productive sectors across Uganda.
The performance was highlighted during UDB’s Annual General Meeting held at the Ministry of Finance, Planning and Economic Development, where the bank reviewed its 2025 financial and development performance.
UDB Managing Director Dr Patricia Ojangole said the bank’s sustained growth has strengthened its ability to mobilise and provide long-term capital to businesses that create jobs, increase exports and expand domestic production.
“UDB’s sustained institutional growth further reinforces our ability to mobilise and provide the long-term capital required to accelerate Uganda’s transformation and support businesses that generate employment, increase exports and expand domestic production,” she said.
In 2025, UDB’s total assets increased from Shs1.78 trillion in 2024 to Shs2.26 trillion, representing 27% growth.
Total equity increased by 24.8% to Shs1.89 trillion, while net loans and advances grew by 6.6% to Shs1.63 trillion.
Ojangole said the bank is deliberately directing capital towards sectors with the greatest potential to drive Uganda’s productive capacity.
Nearly two-thirds of UDB financing went into agriculture, agro-industrialisation and manufacturing, sectors critical to productivity, value addition, food security and reducing dependence on imported goods.
The bank’s financing also translated into employment, with enterprises financed by UDB creating and sustaining 69,202 jobs in 2025.
“Behind every number is a livelihood, a family, and an opportunity.”
UDB’s direct borrower base also increased to 112,392, reflecting the bank’s expanding reach to businesses and communities across Uganda.
During the year, UDB approved Shs518.4 billion in new funding for 120 projects across the country.
The financing is supporting enterprises to expand production, modernise operations, adopt new technologies and strengthen their competitiveness in domestic and export markets.
Ojangole said UDB’s role extends beyond simply providing finance. “At UDB, our commitment goes beyond providing finance. We are strengthening our role as a reliable development partner; helping to prepare and structure viable investments, mobilise the right capital and create pathways for businesses to grow,” she noted.
UDB Board Chairman Geoffrey Kihuguru said the 2025 results demonstrate that strong governance and development impact can be achieved together.
“The Bank’s 2025 results demonstrate that strong governance and prudent stewardship can go hand in hand with development impact, Kuhuguru said.
Kihuguru said UDB is building a stronger institution capable of sustainably financing Uganda’s productive sectors.
“We are building a resilient institution capable of sustainably financing Uganda’s productive sectors for generations to come,” he noted.
The bank’s performance came against a positive macroeconomic backdrop, with Uganda’s economy growing by 6.3% while inflation declined to 3.3%, creating a more favourable environment for business investment.
UDB also strengthened its institutional standing during the year, securing an AA+ (Uga) national rating from Fitch Ratings, the highest available on Uganda’s national scale, while maintaining an A+ rating from AADFI.
The bank was also recognised with the Outstanding Business Sustainability Achievement Award at the 2025 Karlsruhe Sustainable Finance Awards in Germany and retained Level 5 SSCI certification, the highest level of sustainability excellence.
In 2025, UDB hosted the inaugural Uganda Development Finance Summit, bringing together more than 500 policymakers, industry leaders and local and international development partners.
The bank also launched RISE — Reshaping Industry for Sustainable Economy, a platform designed to turn development challenges into viable, investment-ready and fundable projects.
Kihuguru said UDB will continue focusing on responsible deployment of capital.
“As we grow, we remain committed to ensuring every shilling entrusted to UDB works towards productive investment, enterprise growth and Uganda’s transformation.”
Musasizi Urges UDB to Diversify Funding
Minister of Finance, Planning and Economic Development Henry Musasizi commended UDB for its 2025 performance, particularly the Shs63.4 billion net profit, which he said reflected prudent financial management.
“I note with satisfaction that the Bank registered a net profit of UGX 63,417,156,000, reflecting prudent financial management and a continued commitment to supporting Uganda’s development agenda,” he said.
Musasizi said government recognises UDB’s strategic role in financing priority sectors including agriculture, manufacturing, tourism and infrastructure.
He reaffirmed government’s commitment to supporting the bank through capital injections and facilitating access to concessional financing from development partners.
However, he urged UDB to strengthen its long-term financial resilience by reducing dependence on government capitalisation and external credit lines.
“I encourage the Board and Management to develop a clear strategy for alternative capital formation, diversifying the Bank’s funding sources through domestic and international resource mobilisation, strategic partnerships, capital market instruments where appropriate, and other innovative financing mechanisms consistent with the Bank’s mandate.”
Musasizi said government expects UDB to maintain a balance between fulfilling its development mandate and maintaining sound commercial and financial discipline.
“We expect the Bank to progressively build a diversified and sustainable funding model that enhances its resilience and reduces dependence on Government capitalisation and external credit lines,” he noted.
He reaffirmed government’s commitment to supporting UDB as it expands its role in Uganda’s economic transformation.
“Government remains committed to supporting Uganda Development Bank as it advances its development mandate in a financially sustainable manner.”
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