Finance Trust Bank Posts Strongest Performance in Years as Profit Jumps 74% in 2025

Finance Trust Bank posted a 74.4% increase in profit after tax to UGX 18.1 billion in 2025, supported by strong deposit growth, higher interest income and steady balance sheet expansion.

Finance Trust Bank 2025 performance shows profit before tax rose 79.2% to UGX 24.3 billion, while total income increased 10.4% to UGX 134.1 billion. Expenditure grew 1.8% to UGX 109.8 billion.

The improvement in earnings was driven by growth in core banking activity and controlled cost expansion across the year.

Customer funding remained the main source of balance sheet strength. The Finance Trust Bank customer deposits rose 32.6% to UGX 451.7 billion from UGX 340.7 billion in 2024, driven by institutional, escrow, retail and SME inflows.

Total assets increased 21.2% to UGX 668.0 billion from UGX 551.0 billion. Net loans and advances rose 11.4% to UGX 397 billion. Investment securities increased 30.2% to UGX 46.0 billion.

The Finance Trust Bank total income growth was anchored by interest earnings, which rose 12.8% to UGX 100.2 billion. Fees and commissions increased 8.1% to UGX 21.6 billion.

Management said the results were achieved in a tight liquidity environment characterised by elevated interest rates.

“The operating environment during the year was characterised by tight liquidity conditions and relatively high interest rates, which continued to shape the cost of funds and access to credit across the financial sector,” Managing Director Annet Nakawunde said.

She added that balance sheet growth was supported by both funding and lending expansion.

“Despite this environment, the Bank delivered strong financial results, with total assets growing by 21.2% from UGX 551.0 billion to UGX 668.0 billion,” she said.

Nakawunde said performance was driven by deposit mobilisation, SME lending growth and investment portfolio expansion.

“The strong performance recorded during the year was driven by growth in customer deposits, particularly institutional and escrow deposits, growth in the SME and business loan portfolio, and expansion of the Bank’s investment portfolio,” she said.

Asset quality improved over the period. Non-performing loans declined 14.4% to UGX 11.2 billion from UGX 13.1 billion in 2024. At the same time, provisions for bad and doubtful debts rose 15.4% to UGX 4.98 billion.

“The Bank also continued to focus on mobilising lower-cost deposits and maintaining disciplined cost management. Operating expenses grew marginally during the year, while bad debt expenses were reduced because of strengthened credit monitoring and loan recovery efforts,” Nakawunde said.

Capital levels remained strong. Core capital rose to UGX 88.3 billion, while total qualifying capital increased to UGX 92.3 billion. The core capital adequacy ratio stood at 17.29%, while total capital ratio was 18.07%, both above regulatory minimums.

Liquidity also improved, supported by deposit inflows and reduced reliance on banking institutions. Borrowings from other financial institutions declined to UGX 8.5 billion from UGX 21.9 billion in 2024.