Top 5 Best Performing Banks in Uganda (2020-2024)

Uganda’s economic trajectory during the period 2020-2024 has been marked by both challenges and resilience. The nation experienced a slowdown in GDP growth in 2023, registering 4.6% compared to the 6.3% growth in 2022. This deceleration was primarily due to lower manufacturing output and contractions in food production and public administration, despite strong performances in sectors like mining, construction, and hospitality.

However, projections indicate a recovery, with the economy expected to expand by 6.0% in 2024 and 7.0% in 2025, buoyed by stronger regional growth and investments in the oil sector. Based on the comprehensive analysis of financial performance indicators, the following banks have consistently demonstrated strong performance over the past five years:

1 Stanbic Bank Uganda

Stanbic Bank Uganda has consistently been the leading bank in Uganda by several measures, including profitability and asset size. Its net profit remained the highest in the sector, reaching Shs411.53 billion in 2023. The bank also demonstrated strong asset growth, reaching Shs9.3 trillion in 2023. Customer deposits saw significant growth, reaching UShs 7.1 trillion by 2024. The bank maintained good asset quality with a low impaired loans ratio. Stanbic Bank’s strong profitability is supported by a wide net interest margin and high non-interest income. Strategic initiatives, including becoming a platform organization and investing in digital transformation, have contributed to its sustained success.  

2 Centenary Bank

Centenary Bank has consistently ranked among the top performers, particularly in profitability and asset growth. Its focus on rural development and financial inclusion has supported sustained growth, with assets reaching Shs6.33 trillion in 2023. The bank recorded a significant profit after tax of UGX 297.1 billion in 2023. Centenary Bank has also shown improvement in loan portfolio quality, with its NPL ratio decreasing in 2023. Its strong performance is underpinned by a focus on customer satisfaction and technology-driven service delivery.  

Absa Bank Uganda has consistently demonstrated strong financial performance, particularly in asset quality and profitability. It boasted the lowest NPL ratio in the sector at 0.41% in 2023. The bank’s profit after tax reached UGX 146 billion in 2023. Absa Bank has focused on digital initiatives and a diversified portfolio, contributing to its growth. Its strong revenue growth, particularly in corporate and investment banking, has been a key driver of its success.  

Bank of Baroda Uganda has shown remarkable performance in capital adequacy and profitability. It had one of the highest capital adequacy ratios at 33.97% in 2023. The bank’s profit before tax increased to UGX 172.6 billion in 2024. Its asset base also grew steadily, reaching Shs2.8 trillion in 2023. The bank has focused on technological advancements and customer experience, contributing to its strong financial results.  

Housing Finance Bank has shown consistent improvement and growth, particularly in profitability and asset growth. Its profits reached a record UGX58.5 billion in 2022, ranking it among the top 5 most profitable banks. The bank’s assets grew significantly by 32.92% to Shs2.14 trillion in 2023. Its focus on digital transformation and revenue diversification efforts has contributed to its positive performance.  

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