Business
EADB profit jumps 51% to $16.9m
The 51% jump in profitability was driven by a growing loan book, higher recoveries on previously written-off loans and lower operating costs, the report shows.
EADB profit jumps 51% to $16.9m
By: Ali Twaha, Journalist @New Vision
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The East African Development Bank (EADB) posted a profit of $16.9m for the year ended December 31, 2025, up from $11.2m the previous year, according to the bank’s released annual report.
The 51% jump in profitability was driven by a growing loan book, higher recoveries on previously written-off loans and lower operating costs, the report shows.
Return on equity rose to 4.63% from 3.21%, while return on assets improved to 3.25% from 2.21%. The bank’s cost-to-income ratio, a measure of operating efficiency, fell to 28.44% from 34.31%, which EADB attributed to tighter cost management during the year.
Total assets grew 2.8% to $520.2m, while the loan book expanded 51.6% to $194.8m from $128.5m. New loan approvals rose 37.7% to $152.9m, and disbursements to borrowers more than doubled, up 139.7% to $91.6m from $38.2m.
Loan quality remained strong, with non-performing loans falling to 0.51% of the total portfolio from 0.89% in 2024, a ratio the bank said reflects sound credit management even as lending expanded rapidly.
EADB’s capital adequacy ratio, which measures the capital held against the bank’s risk-weighted assets, stood at 87% at the end of 2025, down from 120% the previous year but still well above the 15% minimum the bank says regulators typically require. The decline came as risk-weighted assets grew 31.2% to $381.6m, outpacing a 5.5% rise in Tier 1 capital to $322m.
Acting Director General Benard Mono said EADB maintained a strong financial position and solid capital adequacy throughout the year.
Loan quality remained strong, with non-performing loans falling to 0.51% of the total portfolio from 0.89% in 2024, a ratio the bank said reflects sound credit management even as lending expanded rapidly.
EADB’s capital adequacy ratio, which measures the capital held against the bank’s risk-weighted assets, stood at 87% at the end of 2025, down from 120% the previous year but still well above the 15% minimum the bank says regulators typically require. The decline came as risk-weighted assets grew 31.2% to $381.6m, outpacing a 5.5% rise in Tier 1 capital to $322m.
Acting Director General Benard Mono said EADB maintained a strong financial position and solid capital adequacy throughout the year.
“EADB maintained a strong financial position, solid capital adequacy and high liquidity throughout 2025. Performance across all strategic areas was robust, with both Moody’s and S&P reaffirming the investment-grade credit ratings at “Baa3” and “A” respectively, with stable outlooks. Looking ahead, the Bank is well positioned to build on this strong performance in 2026. With committed shareholders, a promising operating environment and a solid credit rating, the future has never been brighter,” he said.
Loan growth was uneven across EADB’s four member states. Disbursements to Rwanda grew 520%, Uganda’s rose 97%, and Tanzania’s climbed 83%, while Kenya recorded the slowest growth at 4%.
No dividend was paid for the year, consistent with the shareholders' strategy of retaining profit to build up the bank’s capital base.
EADB is owned by the governments of Kenya, Uganda, Tanzania and Rwanda, each holding Class A shares, alongside the African Development Bank and a number of commercial banks holding Class B shares.
The bank is implementing its 2024-2028 ‘Let's Do It’ strategic plan, under which it says it supported 774 small and medium enterprises and an estimated 40,550 jobs during the year, 40% of them for women.
Loan growth was uneven across EADB’s four member states. Disbursements to Rwanda grew 520%, Uganda’s rose 97%, and Tanzania’s climbed 83%, while Kenya recorded the slowest growth at 4%.
No dividend was paid for the year, consistent with the shareholders' strategy of retaining profit to build up the bank’s capital base.
EADB is owned by the governments of Kenya, Uganda, Tanzania and Rwanda, each holding Class A shares, alongside the African Development Bank and a number of commercial banks holding Class B shares.
The bank is implementing its 2024-2028 ‘Let's Do It’ strategic plan, under which it says it supported 774 small and medium enterprises and an estimated 40,550 jobs during the year, 40% of them for women.