Business
Gov't waives Pride Bank dividends to fund growth
Veronicah Gladys Namagembe, Pride Bank’s managing director, said the retained earnings will support the bank’s push to become a digital-first institution, even as it continues serving the ordinary Ugandans it was set up for.
The Minister of Finance, Planning and Economic Development, Henry Musasizi, represented the government as the bank's main shareholder. (Photo by Ali Twaha)
By: Ali Twaha, Journalist @New Vision
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The government will allow Pride Bank Limited to retain its earnings for about five years instead of paying dividends. This is to support the bank in strengthening its position in the market for future growth.
The resolution was passed at the bank’s Annual General Meeting (AGM), where results for the year ended December 2025 were also presented. The Minister of Finance, Planning and Economic Development, Henry Musasizi, represented government as the bank's main shareholder. The government holds 100% stake in the bank.
Veronicah Gladys Namagembe, Pride Bank’s managing director, said the retained earnings will support the bank’s push to become a digital-first institution, even as it continues serving the ordinary Ugandans it was set up for.
“Even after the transformation to Pride Bank from Pride Microfinance, we are not forgetting the ordinary Ugandan this institution was started to serve,” she said.
Namagembe said the bank’s loan book grew by 15%, from sh233b to sh268.2b, while customer deposits rose 58%, from sh178.2b to sh281.9b.
Total assets grew by 28%, from sh448.3b to sh574.4b. She said that over the years, the bank has disbursed more than 1.2 million loans worth over 3.1 trillion to Ugandans.
“Even after the transformation to Pride Bank from Pride Microfinance, we are not forgetting the ordinary Ugandan this institution was started to serve,” she said.
Namagembe said the bank’s loan book grew by 15%, from sh233b to sh268.2b, while customer deposits rose 58%, from sh178.2b to sh281.9b.
Total assets grew by 28%, from sh448.3b to sh574.4b. She said that over the years, the bank has disbursed more than 1.2 million loans worth over 3.1 trillion to Ugandans.
Profit for the year rose from sh8.2b to sh11.5b, a growth of 41%, while the bank's capital, which it must maintain under central bank regulations, grew by 7%.
Musasizi said government's decision to have the bank retain its dividends was meant to let Pride Bank grow organically, alongside additional financial support from government going forward.
“We have allowed them to retain dividends so that they can grow. These dividends can help them grow organically as we also consider giving them additional financial aid,” he said.
He said the bank had grown steadily since its days as a microfinance deposit-taking institution, and has now become a tier 2 bank, just below the country's big commercial banks.
Musasizi said government's decision to have the bank retain its dividends was meant to let Pride Bank grow organically, alongside additional financial support from government going forward.
“We have allowed them to retain dividends so that they can grow. These dividends can help them grow organically as we also consider giving them additional financial aid,” he said.
He said the bank had grown steadily since its days as a microfinance deposit-taking institution, and has now become a tier 2 bank, just below the country's big commercial banks.