2024 was a watershed year for NCBA Bank Uganda, marking a period of remarkable growth, digital innovation, and a leap in profitability that positions the bank as a formidable force in Uganda’s financial sector. For anyone keen on the evolution of banking in Uganda, NCBA’s latest financial results are a compelling story of strategic focus and digital transformation.
Let’s take an in-depth look at the numbers, the strategies behind them, and the broader context that makes NCBA Bank Uganda’s 2024 journey so captivating.
A year of exceptional growth
NCBA Bank Uganda’s financial results for the year ending December 31, 2024, are a testament to the bank’s robust operational health and strategic clarity. The bank reported a pre-tax profit of Shs 46 billion, representing a dramatic 40% increase from the Shs 33 billion recorded in 2023. This surge in profitability is not merely a statistical achievement; it reflects a bank that has successfully aligned its business model with market opportunities and operational efficiencies.
The bank’s balance sheet also expanded impressively, growing by 13% to close the year at Shs 963 billion. This growth was largely fueled by a significant uptick in customer deposits, which rose by 15% to reach Shs 654 billion. Such an increase is a clear indicator of growing customer trust and confidence in NCBA’s services, suggesting that the bank’s efforts to enhance customer experience and product offerings are resonating with the Ugandan public.
On the lending front, NCBA Bank Uganda’s net loans and advances experienced an 18% jump, reaching Shs 298 billion. This growth was achieved even after the bank prudently wrote off Shs 12 billion in non-performing loans, demonstrating a commitment to maintaining a healthy loan book and prioritizing quality over quantity. This approach ensures that the bank’s growth is sustainable and not undermined by risky lending practices.
The bank’s total income also saw a robust increase, climbing by 20% to Shs 137 billion from Shs 114 billion in the previous year. This growth in income underscores NCBA’s ability to generate revenue across its core banking activities, reflecting both increased business volumes and improved operational efficiency.
Perhaps most notably, NCBA Bank Uganda made significant strides in improving its asset quality. The Non-Performing Loan (NPL) ratio fell sharply from 6.4% to 3.8%, now comfortably below the industry average of 5.2%. This improvement was further supported by a reduction in credit impairment charges, which dropped from Shs 12.0 billion to Shs 9.6 billion. These numbers signal a bank that is not only growing but doing so with a keen eye on risk management and long-term stability.
James Mulandi, the bank’s Chief Financial Officer, summed up the year’s achievements by highlighting that the exceptional performance was a direct result of disciplined strategic execution, prudent risk management, and an unwavering commitment to creating sustainable value for all stakeholders within Uganda’s economy.
The forces behind the growth
Digital Transformation
At the core of NCBA Bank Uganda’s success story is its relentless pursuit of digital transformation. The bank has invested heavily in digital banking solutions, fundamentally changing how Ugandans access and interact with financial services. One of the standout innovations is Mokash, a digital platform that has revolutionized access to credit and savings for millions of Ugandans. Mokash’s impact is staggering, with over 14 million customers registered and more than Shs 2.8 trillion in loans disbursed to date.
Through Mokash and similar platforms, NCBA has made it possible for customers to access instant loans of up to 1.5 million Uganda shillings directly from their mobile phones. This eliminates the need for time-consuming branch visits and paperwork, making banking more accessible and inclusive, especially for those in remote or underserved areas. The bank’s digital-first approach is not just about convenience; it’s about democratizing access to financial services and driving financial inclusion on a national scale.
NCBA Bank Uganda’s digital journey is further strengthened by its position within the larger NCBA Group, which operates across Kenya, Tanzania, Rwanda, and Ivory Coast. This regional network provides access to cutting-edge technology, expertise, and capital, enabling the Ugandan subsidiary to leapfrog traditional banking limitations and offer world-class digital services.
Customer-Centric Growth
The impressive 15% growth in customer deposits is a direct result of NCBA’s unwavering focus on customer satisfaction. The bank has prioritized developing competitive, customer-friendly products that address the real needs of Ugandans. Whether it’s through innovative savings accounts, tailored loan products, or responsive customer service, NCBA has built a reputation for reliability and value.
This customer-centric approach not only attracts new clients but also deepens relationships with existing ones, creating a virtuous cycle of trust and loyalty. As more Ugandans choose NCBA as their banking partner, the bank’s deposit base grows, providing a stable foundation for further lending and investment.
Risk Management
NCBA Bank Uganda’s sharp reduction in non-performing loans is a testament to its proactive and disciplined approach to risk management. In 2024, the bank undertook a comprehensive overhaul of its credit risk management framework, introducing stricter lending criteria, enhanced loan monitoring systems, and more robust recovery processes. These measures have resulted in a healthier loan portfolio, with fewer defaults and lower credit impairment charges.
By prioritizing asset quality and maintaining a conservative approach to risk, NCBA is not only protecting itself from potential economic shocks but also ensuring that its growth is sustainable. This prudent risk management philosophy has become a cornerstone of the bank’s operational strategy, setting it apart in a competitive marketplace.
Sustainability and governance
Beyond financial performance, NCBA Bank Uganda is committed to responsible banking practices that prioritize sustainability and good governance. The bank has taken concrete steps to minimize its environmental footprint, support low-carbon operations, and engage in community initiatives that promote social and economic development.
These efforts are not just about corporate social responsibility; they are integral to the bank’s brand and business model. By aligning its operations with global sustainability standards, NCBA attracts socially conscious customers and investors, further strengthening its competitive position in the market.
Thriving amid economic recovery
NCBA Bank Uganda’s achievements in 2024 must be viewed within the broader context of Uganda’s economic recovery. The year saw headline inflation drop to 3.3%, creating a more stable environment for both businesses and consumers. Private sector credit also expanded, reflecting renewed confidence and rising demand for financial services.
This favorable macroeconomic backdrop provided fertile ground for banks willing to innovate and lend. NCBA’s 18% growth in loans and advances perfectly matched this rising demand, allowing the bank to capture new opportunities and expand its market share.
At the industry level, Uganda’s banking sector posted a record net profit of Shs 1.6 trillion in 2024, up 16% year-on-year. Digital transformation and improved asset quality were key drivers of this growth, with NCBA Bank Uganda emerging as a standout performer.
Mokash and the Digital Revolution
NCBA’s digital platforms are not just about convenience-they are about impact. Mokash, developed in partnership with MTN, has brought millions of previously unbanked Ugandans into the formal financial system. By offering easily accessible loans and savings products through mobile phones, Mokash has broken down traditional barriers to banking and empowered individuals and small businesses across the country.
This focus on financial inclusion is a game-changer for Uganda, where access to formal banking services remains a challenge for many. By leveraging technology, NCBA is not only expanding its customer base but also driving revenue diversification and long-term growth.
Regional strength
NCBA Bank Uganda’s success is further amplified by its integration into the larger NCBA Group, a regional powerhouse with operations in Kenya, Tanzania, Rwanda, and Ivory Coast. This affiliation provides access to a wealth of resources, including advanced digital infrastructure, regional expertise, and capital support.
For instance, the group’s digital prowess was on full display in 2024, with over KES 1 trillion in digital loans disbursed across the region. This regional strength enables NCBA Bank Uganda to stay ahead of the curve, adopting best practices and innovations that set it apart in the local market.
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