By Mulengera Reporters
As Uganda prepares for the start of commercial oil production and a new wave of investment-led growth, Equity Bank Uganda has expanded its balance sheet to UGX 3.8 trillion, positioning itself to support businesses and households expected to drive the country’s next phase of economic transformation.
The lender recorded strong growth in the first quarter of 2026, reflecting rising economic activity, increasing demand for credit and growing confidence among customers ahead of what analysts expect to be a significant shift in Uganda’s economic landscape.
According to Equity Group Holdings Plc’s Q1 2026 financial results released on Tuesday, Equity Bank Uganda’s total assets grew by 16 percent year-on-year to UGX 3,817,418,600,000 (KSh131.1 billion). Customer deposits rose by 6 percent to UGX 2,802,595,200,000 (KSh96.2 billion), underlining continued trust from both retail and corporate customers.
The bank’s loan book expanded by 5 percent to KSh49.6 billion, reflecting sustained lending to businesses, households and productive sectors of the economy at a time when demand for financing is expected to increase as major infrastructure and oil-related investments gather pace.
Equity Bank Uganda also strengthened its capital position, with shareholders’ funds rising to UGX 588.4 billion (KSh20.2 billion). The stronger capital base gives the lender greater capacity to finance emerging opportunities linked to economic expansion, regional trade and industrial development.
The performance comes as Uganda’s banking sector benefits from improving private sector credit growth, easing inflationary pressures and heightened investor interest ahead of the country’s anticipated first oil production later this year.
The bank further enhanced its resilience during the quarter, with IFRS coverage rising to 82 percent, indicating stronger provisioning buffers against potential risks in an evolving macroeconomic environment.
Despite continued investments in digital banking capabilities, customer acquisition and service delivery infrastructure, Equity Bank Uganda posted Profit Before Tax of UGX 32 billion (KSh1.1 billion), maintaining profitability while laying the groundwork for future growth.
The results also highlight Uganda’s growing importance within Equity Group’s regional strategy. Regional subsidiaries have become increasingly central to the Group’s operations, accounting for 52 percent of total banking assets and contributing half of total banking profitability.
This reflects the success of Equity Group’s transformation from a Kenya-focused lender into a diversified regional financial institution with operations across East and Central Africa.
At the Group level, Equity reported a 24 percent increase in Profit After Tax to KSh19.1 billion during the first quarter. Total assets grew 16 percent to KSh2.04 trillion, while customer deposits rose 13 percent to KSh1.48 trillion and net loans increased 9 percent to KSh873.5 billion.
The Group now serves 22.7 million customers through 409 branches, 86,910 agency outlets and more than 1.4 million merchants across Africa.
Regional subsidiaries also posted strong performances. Equity Bank Tanzania recorded 150 percent growth in profit after tax, while Equity Bank Rwanda and Equity BCDC in the Democratic Republic of Congo posted growth of 36 percent and 32 percent respectively.
Digital transformation continued to reshape the Group’s operations, with 98.3 percent of all transactions taking place outside physical branches and nearly 90 percent processed through digital platforms. Improved efficiency also saw the Group’s cost-to-income ratio decline to 50.6 percent from 54.2 percent a year earlier.
Commenting on the results, Group Chief Executive James Mwangi said the performance demonstrated the success of the institution’s long-term transformation strategy.
“Our Q1 performance reflects the success of our deliberate transformation into a diversified, regional, technology-led financial services Group. We are building a future-ready institution; scalable, secure and impact-led,” he said.
Mwangi added that the Group is increasingly positioning itself beyond traditional banking through its vision of becoming a “Transformation Finance Institution” focused on mobilizing capital and accelerating inclusive prosperity across Africa.
Beyond financial services, Equity Bank Uganda continued investing in leadership development and youth empowerment through the Equity Leaders Program, commissioning its fifth cohort and celebrating graduates from the inaugural intake.
Analysts say the bank’s expanding balance sheet and strengthened capital position leave it well placed to benefit from rising infrastructure spending, oil-sector activity and growing regional trade flows expected to reshape Uganda and the wider East African economy over the coming decade. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
