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Kampala, Uganda | JULIUS BUSINGE | ABC Capital Bank Limited has reported a sharp recovery in profitability, posting a 285% increase in net profit (profit after tax) to Shs 520 million in 2025, up from Shs 135 million in 2024, marking a strong turnaround driven by digital investment, governance reforms, and product expansion.
The improved performance comes after a difficult period for the lender, which recorded a loss of Shs 515 million in 2023. Management says the latest results confirm that its turnaround strategy is gaining traction.
Profit before tax rose to Shs 702.8 million, compared to Shs 404.5 million in the previous year, reflecting stronger operational efficiency and improved earnings momentum.
Net operating income increased to Shs 7.59 billion, supported by growth in interest income and stable non-interest income streams, signaling a more balanced and resilient revenue base.
Total assets grew to Shs 60.8 billion from Shs 59.2 billion in 2024, while total equity strengthened to Shs 32.4 billion, further reinforcing the bank’s capital position and financial stability.
According to ABC Capital Bank Executive Director Christopher Kabagambe, the results reflect disciplined execution of the institution’s recovery plan.
“This performance demonstrates the strength of our recovery path and the deliberate choices we have made to reposition the Bank for sustainable growth. We are seeing the impact of focused execution, stronger governance and a clear commitment to innovation,” Kabagambe said.
Digital drive
A key driver of the improved performance has been the Bank’s accelerated digital transformation agenda, including the rollout of a mobile lending platform aimed at expanding credit access and improving market reach.
“Our focus on digital transformation and product diversification is not only improving efficiency but also expanding access to financial services for our customers. We remain committed to building a more resilient and future-ready institution,” Kabagambe said.
He added that improved cost discipline and balance sheet optimisation also played a critical role in the profit rebound.
“Beyond the growth in profitability, what stands out is the quality of earnings and the strengthening of our financial position,” he noted.
Strategy execution
During the year, ABC Capital Bank implemented several strategic initiatives, including relocation to modern premises to enhance customer experience and reinforce its corporate identity.
The Bank also introduced the Agricultural Credit Facility (ACF) to support Uganda’s agricultural sector, deepen financial inclusion, and align with national development priorities.
Governance was further strengthened through the appointment of additional independent non- executive directors, improving oversight and risk management.
The lender maintained capital adequacy levels well above regulatory requirements, underscoring what management described as a strong and conservative financial foundation.
Looking ahead, ABC Capital Bank says it will continue prioritising digital innovation, product expansion, and financing of key economic sectors as it consolidates its recovery.
“The focus now is sustaining this momentum while delivering long-term value to customers, shareholders, and stakeholders,” Kabagambe said.
With net profit firmly back on a growth path, the Bank says its turnaround phase is transitioning into a sustained expansion cycle anchored on technology and disciplined execution.
