Equity Bank Uganda returns to profit after a year of consolidation

April 30 2025: It was a year of cleaning up and consolidation at socially inclined lender Equity Bank Uganda Limited, as the business clawed back lost territory to post a UGX 13.1bn profit before tax for 2024, from a UGX 36.6 billion loss the previous year.

The figure, representing a 136pc expansion in pretax profit came off aggressive course correction that saw UGX 207.4bn in bad loans cleaned off the book and another UGX 88.5 billion provision made for bad and doubtful debts.

The heavy write-offs could be indicative of the exhaustion of regulatory patience with pandemic associated bad loans, that were weighing down the entire industry as a whole.

A more cautious posture to lending resulted in a 19pc drop in net loans from UGX 1,610 billion to UGX 1,309 billion.

Overall, deposits were down 6pc from UGX 2,974 billion to UGX 2,802 billion while assets also shrank 10pc from UGX 3,748 billion to UGX 3,389 billion.

But the clinical surgery appeared to be yielding results as the bottom line once again pointed north with a UGX13.1bn profit.

The lender also suffered a 6pc dip in deposits from UGX 2,974 billion to UGX 2,802 billion, which might reflect the fallout from a season of bad publicity emanating from incidents of cyber-fraud that rocked the local baking industry from 2023. The resulting flight to safety saw cross-movement of depositors between financial institutions, impacting brands at varying degrees.

Despite the hiccups, the lender continued to fund its social programme sponsoring 13 Ugandan students to top global universities under the Equity Leaders Program (ELP).

“Through the ELP, we’re investing in the next generation of leaders—opening doors to opportunity, growth, and lasting impact,” says Managing Director Gift Shoko.

The bank also launched the second phase of a tree-planting campaign, that aims to plant some 43,000 indigenous trees on the slopes of the mostly denuded Busoga College Mwiri hill. This initiative forms part of the bank’s target to plant 35 million trees.

“In 2024, we expanded our strategic framework from a twin engine to a tri-engine model, introducing Sustainability as the third engine, alongside the existing Commercial and

Social engines. These three engines now work in tandem, reinforcing one another to drive the success of our overarching Bank strategy. As Equity Bank, we recognise that we are not only part of the Ugandan society but also responsible contributors to its progress. With this

understanding, in 2024 we remained committed to creating shared values for our customers, shareholders and the wider population” Shoko said in remarks about the year’s performance.