Equity Bank Uganda Limited has reported a pretax profit of Shs13.1 billion for 2024, marking a strong recovery from a Shs36.6 billion loss in 2023. The turnaround reflects the impact of what the bank termed an “aggressive course correction.”
To stabilize its financial position, the bank wrote off Shs207.4 billion in non-performing loans and made an Shs88.5 billion provision for bad and doubtful debts. These substantial adjustments suggest heightened regulatory scrutiny of pandemic-era loans, which have weighed heavily on the banking sector.
In a shift toward more prudent risk management, Equity Bank tightened its lending strategy. As a result, net loans declined by 19%, falling from Shs1,610 billion to Shs1,309 billion. Deposits also dropped by 6%, from Shs2,974 billion to Shs2,802 billion, while total assets decreased by 10%, from Shs3,748 billion to Shs3,389 billion.
Part of the decline in deposits may be linked to growing concerns over cyber-fraud in Uganda’s banking sector, which gained public attention in 2023 and led some customers to move their funds to perceived safer institutions.
Despite the financial recalibration, the bank maintained its commitment to social impact. Through its Equity Leaders Program, it sponsored 13 Ugandan students to attend top international universities. Managing Director Gift Shoko highlighted the initiative as a long-term investment in Uganda’s future leadership.
In line with its sustainability agenda, the bank also launched the second phase of a tree-planting campaign, targeting 43,000 indigenous trees on Busoga College Mwiri Hill, as part of a broader goal to plant 35 million trees.
Shoko emphasized that the bank’s revised strategic framework now includes “Sustainability” as a core pillar, alongside its commercial and social objectives.
“We recognize our role in advancing Uganda’s development and remain committed to creating shared value for all stakeholders,” he said.
