Uganda Development Bank (UDB) posted a Shs63.4 billion profit after tax in 2025, as the development finance institution expanded lending and continued to focus on financing productive businesses.
The results were presented during UDB’s Annual General Meeting held at the Ministry of Finance, Planning and Economic Development.
UDB Managing Director Dr Patricia Ojangole said the performance reflects the bank’s growing capacity to mobilise and deploy long-term capital to businesses across the country.
“UDB’s sustained institutional growth further reinforces our ability to mobilise and provide the long-term capital required to accelerate Uganda’s transformation and support businesses that generate employment, increase exports and expand domestic production,” Ojangole said.
During the year, UDB approved Shs518.4 billion in new financing for 120 projects, with nearly two-thirds of the funding directed towards agriculture, agro-industrialisation and manufacturing.
The bank’s total assets grew by 27%, from Shs1.78 trillion in 2024 to Shs2.26 trillion in 2025, while net loans and advances increased by 6.6% to Shs1.63 trillion.
Ojangole said the bank’s financial performance should be assessed alongside the economic and social impact of the businesses it finances.
Enterprises supported by UDB created and sustained 69,202 jobs during the year, while the number of direct borrowers increased to 112,392.
“Behind every number is a livelihood, a family, and an opportunity,” she said.
UDB Board Chairman Geoffrey Kihuguru said the results demonstrate that the bank can maintain financial soundness while pursuing its development mandate.
“The Bank’s 2025 results demonstrate that strong governance and prudent stewardship can go hand in hand with development impact,” Kihuguru said.
He added that UDB is working to build an institution capable of sustainably financing Uganda’s productive sectors over the long term.
Finance Minister Henry Musasizi welcomed the Shs63.4 billion profit, describing it as evidence of prudent management.
“I note with satisfaction that the Bank registered a net profit of Shs63.4 billion, reflecting prudent financial management and a continued commitment to supporting Uganda’s development agenda,” Musasizi said.
However, Musasizi said UDB must ensure that its growth is backed by a sustainable funding model.
He urged the bank to diversify its sources of capital through domestic and international mobilisation, strategic partnerships and appropriate capital market instruments.
“We expect the Bank to progressively build a diversified and sustainable funding model that enhances its resilience and reduces dependence on Government capitalisation and external credit lines,” Musasizi said.
The minister reaffirmed government’s commitment to supporting UDB as it expands financing to sectors considered critical to Uganda’s economic transformation.
