Equity Bank Uganda expands balance sheet as parent group posts strong Q1 growth

May 19, 2026 in Business, Companies, Financial Services by Editor

L-R: Equity Bank Uganda Executive Director, Claver Serumaga, Equity Group Managing Director and CEO, Dr. James Mwangi, and Equity Bank Uganda Managing Director, Gift Shoko, during the Q1 2026 Investor Briefing event. on May 19

Equity Bank Uganda grew assets to UGX3.8 trillion in Q1 2026 as parent company Equity Group posted strong regional growth driven by digital banking, customer expansion and rising regional profitability.

 

Equity Bank Uganda has strengthened its balance sheet and reinforced its role within the regional operations of Equity Group Holdings Plc after the pan-African lender posted strong first quarter 2026 growth driven by regional expansion, digital banking and customer growth across East and Central Africa.

The Ugandan subsidiary emerged as one of the Group’s key regional anchors, posting sustained asset growth and continued lending expansion despite what the bank described as a cautious operating environment.

According to the Group’s Q1 2026 financial results released Tuesday, Equity Bank Uganda’s total assets grew 16 percent year-on-year to UGX 3,817,418,600,000 (KSh131.1 billion), while customer deposits rose 6 percent to UGX 2,802,595,200,000 (KSh96.2 billion.)

The lender’s loan book also expanded by 5 percent to KSh49.6 billion, reflecting continued financing to businesses, households and productive sectors of Uganda’s economy.

Shareholders’ funds strengthened to UGX 588.4 billion (KSh20.2 billion), further boosting the bank’s capital position ahead of anticipated growth opportunities linked to Uganda’s broader economic expansion and regional trade integration.

The performance comes at a time when Uganda’s banking sector is benefiting from improving private sector credit growth, easing inflationary pressures and heightened investor activity ahead of the country’s expected first oil production later this year.

Equity Bank Uganda also improved its risk resilience during the quarter, with IFRS coverage rising to 82 percent, signaling stronger provisioning buffers amid evolving regional macroeconomic conditions.

Although profitability moderated during the period, the bank still delivered Profit Before Tax of  UGX 32 billion (KSh1.1 billion) as it continued investing in digital capability, customer acquisition and service delivery infrastructure.

The results mirror the growing strategic importance of regional subsidiaries within Equity Group’s long-term transformation agenda.

Across the Group, regional subsidiaries now account for 52 percent of total banking assets and contributed half of total banking profitability, underlining the success of the lender’s shift from a Kenya-focused bank into a diversified regional financial institution.

Group-wide, Equity posted a 24 percent jump in Profit After Tax to KSh19.1 billion during the first quarter, while total assets grew 16 percent to KSh2.04 trillion.

Customer deposits rose 13 percent to KSh1.48 trillion and net loans increased 9 percent to KSh873.5 billion, reflecting continued customer confidence and economic activity across its markets.

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 delivered robust performances beyond Uganda, with Equity Bank Tanzania recording 150 percent growth in profit after tax, Equity Bank Rwanda posting 36 percent growth and Equity BCDC in the Democratic Republic of Congo delivering 32 percent growth.

The lender said its digital transformation strategy continued to reshape operations, with 98.3 percent of all transactions now occurring outside physical branches and nearly 90 percent processed through digital platforms.

Operational efficiency also improved significantly, with the Group’s cost-to-income ratio declining to 50.6 percent from 54.2 percent a year earlier.

Speaking on the results, Group Chief Executive James Mwangi said the Group’s performance reflected the success of its transition into a regional, technology-driven financial services institution.

“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 was increasingly positioning itself beyond traditional banking toward what he described as a “Transformation Finance Institution” aimed at mobilizing capital and accelerating inclusive prosperity across Africa.

Beyond banking, Equity Bank Uganda also continued investing in leadership development and youth empowerment through the Equity Leaders Program, commissioning its fifth cohort while celebrating graduates from the inaugural intake.

Analysts say the Ugandan subsidiary’s continued balance sheet expansion positions it strongly to benefit from rising infrastructure investment, oil-sector activity and regional trade flows expected to reshape East Africa’s economic landscape over the next decade.