KAMPALA, June 20, 2025 –– Uganda Development Bank Ltd [ UDB ] has reported a net profit after tax of Shs 57.8 billion for the year ended December 31, 2024, representing a 16 percent increase from Shs 49.8 billion in 2023. The profit growth was driven by continued strategic investment in interest-earning assets, coupled with prudent cost management and operational efficiency.
The results were announced on Wednesday during UDB’s Annual General Meeting held at the Ministry of Finance, Planning and Economic Development in Kampala. The Bank reaffirmed its commitment to fostering economic growth, supporting community development, and delivering sustainable value for its stakeholders.
Continued growth
In her remarks, UDB Managing Director Patricia Ojangole highlighted the Bank’s consistent growth and profitability, underpinned by its transformation agenda and strategic investment in development projects across the country.
She noted that total assets increased by 7 percent, rising from Shs 1.67 trillion in 2023 to Shs 1.78 trillion in 2024. This was largely supported by capital injections from the Government of Uganda and the accumulation of retained earnings.
The Bank’s loan book also expanded, with net loans and advances increasing by 9 percent, from Shs 1.47 trillion to Shs 1.53 trillion – demonstrating UDB’s commitment to financing impactful and inclusive development initiatives.
“Throughout 2024, UDB remained a steadfast partner in advancing the Government’s economic development agenda. We provided targeted financial support to eligible enterprises and enabled productive investments across priority growth sectors, particularly agriculture, manufacturing, and services,” said Ojangole.
To support the growth in assets, UDB strategically reinvested Shs 437 billion from loan repayments, alongside Shs 80.7 billion in fresh capital from the Government. This raised the Bank’s total capital base from Shs 1.32 trillion to Shs 1.46 trillion.
Stimulating private sector growth
In 2024, UDB approved Shs 454 billion in new loans to over 170 enterprises across 67 districts. These investments are projected to generate wide-ranging development outcomes, including: 17,832 new jobs; Shs 9.7 trillion in additional output; Shs 1.8 trillion in foreign exchange earnings; Shs 1.7 trillion in profits; Shs 455 billion in tax contributions
Additionally, the Bank disbursed Shs 388 billion to new projects, bringing its total support to 770 active projects across 103 districts by the end of the year.
“The industrial sector continued to dominate our investment portfolio, accounting for 50 percent of total funding. Of the Shs 822 billion allocated to the sector, 46.8 percent supported agro-industrialisation, 50 percent was channelled to manufacturing, and 3.2 percent to mineral-based industries, aligning with UDB’s strategy to drive value addition and industrial transformation,” said Ojangole.
Supporting SMEs and early-stage businesses
The Bank implemented a series of institutional initiatives to address structural constraints in the economy. Under the Business Accelerator for Successful Entrepreneurs [BASE], UDB provided advisory and capacity-building services to SMEs, with a focus on youth and women-led businesses. In 2024, 450 entities received training under this programme.
UDB also operationalised an incubation service to support early-stage businesses in formalising and strengthening their operations, incubating a first cohort of 71 businesses during the year.
Through its Project Preparation Facility, UDB tackled technical and financial barriers faced by high-potential projects, especially those requiring significant early-stage investment.
In 2024, the Bank committed Shs 5.1 billion to prepare projects, including research into high-yielding, high-oil-content sunflower seed varieties in the agriculture sector.
The Bank further implemented the Hybrid Electricity Connections Programme, which benefitted over 42,000 households and small enterprises, and introduced a special funding initiative for Ugandan contractors to improve their access to affordable capital.
Creating sustainable impact
Employment:
In 2024, UDB-supported enterprises created and sustained 55,553 jobs, up 7.2 percent from 51,841 in 2023. Youth accounted for 59.9 percent of these jobs, while women filled 31.3 percent.
Economic Impact:
Annual output from UDB-financed enterprises rose by 3.2 percent, from Shs 5.86 trillion to Shs 6.05 trillion. Tax contributions improved to Shs 316 billion from Shs 236 billion in the previous year. Net profits of supported businesses surpassed Shs 1 trillion in 2024, up from Shs 869 billion in 2023.
Foreign exchange earnings reached the equivalent of Shs 1.1 trillion – a 17 percent increase from the Shs 953 billion reported in 2023. Key contributors to this growth included the agro-processing and manufacturing sectors.
Operational efficiency:
UDB maintained a stable cost-to-income ratio [excluding impairment] at 31 percent, consistent with 2023 levels. Return on assets improved to 3.26 percent, while return on equity increased slightly to 3.89 percent, reflecting the Bank’s efficiency and value creation for shareholders.
“As we aim for even greater impact, UDB is focused on maximising efficiency across financial, human, technological, and institutional resources. We will also explore innovative and diversified funding mechanisms to scale our interventions and enhance long-term development outcomes,” Ojangole stated.
Government and board remarks
Minister of Finance, Planning and Economic Development, Matia Kasaija, praised UDB for its vital role in advancing Uganda’s National Development Plan and Vision 2040.
“I am pleased that UDB’s 2024 achievements align with the country’s strategic development objectives. A strong national development financing institution like UDB is essential for providing long-term and patient capital to Uganda’s private sector,” he said.
Board Chairman Geoffrey Kihuguru reaffirmed the Bank’s commitment to long-term sustainability through prudent asset creation, responsible deployment, and continued operational efficiency.
https://thecooperator.news/udb-md-patricia-ojangole-nominated-for-african-banker-awards-2025/
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