Bank of Baroda (Uganda) Limited has released its Annual Report and Audited Financial Statements for the year ended December 31, 2024, showcasing robust financial health and strategic growth. The report highlights the bank’s resilience in a dynamic economic environment, marked by prudent risk management, enhanced corporate governance, and a commitment to innovation.
“I am pleased to present the Annual Financial Statement for Bank of Baroda (Uganda) Limited for the year 2024. Despite global and local challenges, Bank of Baroda (Uganda) Limited has demonstrated strong financial stability and growth,” reads the statement from Shashi Dhar, the Managing Director, Bank of Baroda (Uganda) Limited.
“The Bank’s financial results for 2024 reflect its strength and disciplined execution of our strategies, coupled with a customer-centric approach that has driven growth across our core lines of business. The Bank has witnessed improvement in nearly all major financial metrics. Overall, 2024 has been a positive year for the Bank, marked by growth across multiple financial parameters. I am pleased to share the key financial highlights for the year ended 31st December 2024,” the statement continued.
The bank reported a profit before tax of UGX 172.6 billion, up from UGX 153.7 billion in 2023, reflecting a 12.3% increase year-on-year. A key driver of profitability, net interest income rose to UGX 196.4 billion, compared to UGX 177.5 billion in the previous year.
The bank’s total assets grew to UGX 3.08 trillion, up from UGX 2.80 trillion in 2023, demonstrating strong balance sheet expansion. The Board recommended a dividend of UGX 60 billion, or UGX 4 per share, doubling the previous year’s payout of UGX 30 billion.
The bank maintained a strong capital position, with Tier 1 and Total Capital ratios at 30.22% and 31.38%, respectively, well above the regulatory minimums of 10% and 12%. This was supported by a bonus share issuance that bolstered the capital base to UGX 150 billion, complying with new regulatory requirements.
Loans and advances to customers increased to UGX 1.48 trillion, with a prudent allowance for expected credit losses of UGX 22.2 billion. The bank’s collateral coverage remained robust, with 52.1% of loans secured by tangible assets.
The bank’s liquidity coverage ratio (LCR) stood at an impressive 1,972.87%, far exceeding the 100% regulatory requirement, ensuring ample liquidity to meet obligations. Investments in digital banking, including mobile cash withdrawals and multi-channel integrations, enhanced customer convenience and operational efficiency.
The bank emphasized its commitment to strong corporate governance, with a well-structured Board and committees overseeing risk, audit, and compliance. Key leadership changes included the appointment of Rebecca Isabella Kiconco as Chairperson in January 2025, succeeding Odoch Charles Langoya. The Board’s diversity and expertise were highlighted as strengths in navigating regulatory and market challenges.
While the bank performed well, it faced challenges such as increased credit risk in a tightening monetary environment and the need to adapt to evolving regulatory requirements. Looking ahead, Bank of Baroda Uganda aims to leverage Uganda’s projected economic growth of 6-8% in the medium term, driven by sectors like oil and gas, tourism, and remittances.
“As we move forward, we remain committed to innovation, operational excellence, and delivering value to our customers, shareholders, and communities. I extend my sincere gratitude to the Government of the Republic of Uganda, Bank of Uganda, Capital Market Authority, Deposit Protection Fund (DPF) and Uganda Securities Exchange for their valuable guidance and continued support in strengthening the operations of the Bank. I express my deepest gratitude to all the employees, esteemed customers and shareholders of the Bank for continuous support and patronage.” reads the statement from Shashi Dhar, the Managing Director, Bank of Baroda (Uganda) Limited.
Bank of Baroda Uganda’s 2024 financial results reflect a resilient and growing institution, underpinned by sound risk management, strategic investments, and a customer-centric approach. With a strong capital base and liquidity position, the bank is well-positioned to capitalize on future opportunities while maintaining stability in a competitive market.