Housing Finance reports sh85b in net profits

KAMPALA - Housing Finance Bank posted a rise in annual net profit to sh85.4b for the year ending December 2025 from sh71.1b a year earlier.

The lender’s earnings were lifted by a strong expansion in income, with total revenue climbing to sh499.9b from sh402.8b.

According to the financial statement released on April 27, interest income remained the backbone of the business, supported by growth in loans and investment securities, while fees and commissions also added a steady stream of income.

On the balance sheet, the bank’s total assets grew to sh2.7 trillion, up from sh2.34 trillion the previous year.

“This performance was driven by growth in our loan portfolio, improved operational efficiency, and sustained customer engagement. Beyond these results, our performance underscores the growing relevance of our solutions in supporting individuals, households, and businesses across Uganda,” Micheal Mugabi, managing director, Housing Finance, said.

Loans and advances rose to sh1.2 trillion from sh1.08 trillion. The growth reflects continued demand for credit in housing and related segments where the bank has built its niche.

But that growth came with a cost. Impairment charges on financial assets nearly doubled to sh66.2b, suggesting pressure on some borrowers.

Customer deposits increased to sh1.7 trillion from sh1.61 trillion.

Total liabilities climbed to sh2.25 trillion, largely in line with deposit growth and higher borrowed funds, while shareholders’ equity rose to sh442.9b from sh393b supported by retained earnings.