The banking sector in Uganda remains robust and highly resilient despite prevailing global economic volatility, according to Mr. Michael Atingi-Ego, Governor of the Bank of Uganda (BoU).
Following an engagement this week with the Uganda Bankers’ Association (UBA), the Governor emphasised that the financial system’s strong performance is a testament to sound governance and prudent risk management across supervised institutions. The Governor’s reflections focused on the sector’s current strength, its rapid evolution, and the strategic focus areas required to drive national economic progress.
He revealed that between December 2024 and September 2025, Uganda’s banking sector demonstrated significant growth across key indicators, underscoring public confidence in the financial system. “For the period December 2024 – September 2025, we recorded Total Assets of UGX 4.93 trillion, while customer deposits saw a UGX 4.56 trillion rise,” Atingi-Ego said. “Loans and Advances increased by UGX 1.51 trillion, while Net Profits rose by 46.23% and Non-Performing Loans (NPLs) showed a declining trend,” he added.
He also revealed that “the stability required for this growth was supported by successful policy coordination, with headline inflation averaging $3.6\%$ and core inflation $3.9\%$, both safely below the $5\%$ target set by the BoU.”
While celebrating the sector’s resilience, Governor Atingi-Ego acknowledged that the operating environment is changing rapidly due to slower global growth, tighter financing conditions, and geopolitical uncertainty. He stressed that integrity and adaptation are now non-negotiable, particularly as Uganda sheds high-risk listings and seeks deeper capital financing.
The Governor outlined three core focus areas for the BoU to guide the sector’s evolution, which include:
- Reinforcing resilience and governance, strengthening regulatory capital frameworks and governance standards to ensure reliable institutional stability.
- Driving Purposeful Evolution by embedding inclusion, climate-aligned finance, and integrity into operational practices.
- Channeling Capital Strategically by directing financing toward transformative sectors that are key to unlocking national progress and sustainable development.
“If Uganda’s future will be financed increasingly from within, the decisions we take now will define our trajectory,” the Governor stated, emphasising the urgency of strategic action.
The Governor also affirmed that the work of the financial sector is about serving the people: farmers, SMEs, entrepreneurs, innovators, and households, who depend on a stable, trustworthy, and responsive system. He stressed that the Bank of Uganda’s commitment remains centered on maintaining stability and modern supervision, transforming financial markets and instruments, and fostering strong partnerships with industry players.
He concluded with an optimistic view, saying he believes the collective ambition within Uganda’s banking community can build a financial system that is stable, innovative, adaptive, inclusive, and future-ready.