Kampala – The country’s leading commercial banks announced a combined net profit of Shs2.17 trillion for the fiscal year ending June 2024, a record high driven by a sharp decline in non‑performing loans. The Bank of Uganda’s latest financial stability report shows the sector’s bad loan ratio falling from 7.8% to 5.2% over the past twelve months, thanks to stricter credit underwriting and aggressive loan recovery efforts. Analysts attribute the profit surge to higher interest margins, increased fee‑based services, and a rebound in corporate lending as the economy recovers from pandemic‑related slowdowns. The banks also highlighted improved capital adequacy ratios, positioning the sector for further expansion into digital banking and regional trade financing.
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