Local Banks Report Strong Half-Year Profits Despite Economic Headwinds

Several of Uganda's largest commercial banks reported double-digit profit growth for the first half of the year, according to financial statements released this week, defying concerns about a broader economic slowdown.

Bank executives pointed to growing loan books, particularly in agriculture and small business lending, along with strong returns on government securities, as the main drivers of the improved earnings.

"We are seeing more businesses come to us for working capital as trade activity picks up," said one bank's chief finance officer during an investor briefing.

Non-performing loans remained broadly stable across the sector, though analysts cautioned that asset quality should be watched closely if interest rates stay elevated for an extended period.