The Bank of Uganda (BoU) recorded a net surplus of UGX 658.9 billion for the financial year ended June 30, 2025, according to its audited IFRS financial statements. While this represents a decrease from the UGX 1,142.4 billion surplus recorded in the previous year, it occurred against a backdrop of significant growth in the Bank’s total assets, which increased by 21.5% to UGX 31,870.9 billion.
The Bank’s total operating income before unrealized foreign exchange losses decreased marginally by 0.5% to UGX 1,531 billion. A key contributor to the bottom line was total interest income, which saw a robust 15% growth, reaching UGX 1,648 billion, driven largely by interest from Government Advances and Securities.
However, this was offset by several factors. Interest expenses rose to UGX 209 billion, up from UGX 125 billion in the prior year, attributed to interest costs on cross-currency repurchase agreements used for monetary policy operations. The Bank also recognized an expected credit loss expense of UGX 226 billion on its financial assets, a significant increase from UGX 1.2 billion in FY 2023/24.
Furthermore, the Bank recorded an unrealized foreign exchange translation loss of UGX 212 billion, a stark contrast to the UGX 226 billion gain in the previous year. This loss resulted from the appreciation of the Uganda Shilling against major foreign currencies in which the Bank’s reserves are held.
On the operational front, annual operating expenditure increased by 6% to UGX 660 billion but remained 3% below the total budget of UGX 705 billion. The cost-to-income ratio stood at 44%, well within the strategic target of 75%, demonstrating efficient cost management.
The Bank’s financial position strengthened considerably, with total assets growing to UGX 31.87 trillion. The net worth (equity) of the Bank also grew by 12.4%, reaching UGX 6,165 billion, up from UGX 5,487 billion a year earlier. The Directors did not recommend the payment of a dividend to the Government for the year, consistent with the previous year’s practice.
The Auditor General, through delegated auditors KPMG, issued an unmodified (clean) audit opinion on the financial statements, affirming their accuracy and compliance with International Financial Reporting Standards (IFRS).
