NCBA Bank Uganda Records Impressive Growth and Improved Asset Quality in 2024

NCBA Bank Uganda has announced a robust financial performance for the year ending December 31, 2024, demonstrating significant growth in key areas and a marked improvement in the quality of its assets. The bank’s audited financial results reveal a 13% expansion of its balance sheet, reaching Shs 963 billion, primarily driven by a substantial 15% surge in customer deposits.

The bank also reported an 18% increase in its net loans and advances, showcasing a commitment to lending despite a Shs 12 billion write-off during the period. Mr. James Mulandi, Head of Finance at NCBA Bank Uganda, commented on the positive results, stating, “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.”

A key highlight of the financial results is the significant improvement in asset quality. The proportion of Stage 3 (Non-Performing Loans – NPLs) in the overall portfolio decreased considerably from 6.4% in 2023 to just 3.8% in 2024. Furthermore, the coverage of individually impaired loans strengthened from 63% to 66% over the same period. This enhanced asset quality directly contributed to a reduction in the bank’s credit impairment charge, which fell from Shs 12.0 billion in 2023 to Shs 9.6 billion in 2024.

Mr. Mark Muyobo, CEO of NCBA Bank Uganda, attributed this positive trend to the bank’s strengthened 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 explained. He further noted that the bank’s NPL ratio of 3.8% is now below the industry average of 5.2%, underscoring their consistent year-on-year improvement in asset quality.

Innovation in digital financial services has also played a crucial role in NCBA Bank Uganda’s success. Their mobile-based lending and savings product, Mokash, has emerged as a significant player in the market, registering over 14 million customers and disbursing over Shs 2.8 trillion in loans to date. Ms. Philippa Muzahura, Head of Digital Lending and Saving, emphasised the transformative impact of the platform. “In the past, banking required a physical visit to a branch,” she said, “Today, we’ve revolutionised 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.”

In the corporate banking sector, NCBA Bank Uganda is focusing on building strong, collaborative relationships with its clients. Mr. Malik Isabirye, Head of Corporate Banking, highlighted the importance of this approach. “To become a trusted partner, we prioritise 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.”

Looking ahead, NCBA Bank Uganda remains committed to innovation, continuous process improvement, and a customer-centric approach. The bank is also prioritising sustainability, focusing on minimising its environmental impact, supporting customers in transitioning to low-carbon operations, engaging with the community, and optimising corporate governance. With a growing customer base and a solid financial foundation, NCBA Bank Uganda appears well-positioned for continued growth and success in the Ugandan financial landscape.