Gov’t commits to recapitalising Pearl Bank

The government has committed to recapitalising Pearl Bank as part of broader efforts to accelerate Uganda’s economic transformation.

The commitment was made by Finance minister Matia Kasaijja during the release of the bank’s financial year results. Formerly known as PostBank Uganda Limited, Pearl Bank is a fully government-owned Tier One commercial bank focused on promoting financial inclusion, entrepreneurship and economic growth across the country.

Speaking during the release of the bank’s financial results, Kasaijja said government would continue injecting more capital into the bank whenever necessary.

“There will be no hesitation. If we discover that management needs more funding, we shall either provide or lend it. For sure, we shall support them,” Kasaijja said.

He revealed that shareholders had approved the retention of Shs 47 billion in profits as part of the ongoing recapitalisation programme.

“We agreed that the bank retains the profits instead of paying dividends, so we are still capitalising it,” he added.

Kasaijja likened the bank’s growth to that of a well-nurtured child, saying institutions perform well when consistently supported and properly managed.

“When you take good care of a baby and feed it well, it grows. In the same way, this bank has been nurtured over the years. We transformed its name and operations, and it is now performing very well,” he said.

According to the minister, Pearl Bank registered a 34 per cent increase in profitability, with profits rising to Shs 47.3 billion from Shs 35.4 billion in 2024. Total income increased to Shs 298 billion, while customer deposits reached Shs 1.4 trillion.

Kasaijja attributed the growth to rising customer confidence and the growing uptake of the bank’s digital platform, Wendi.

“Banks do not grow in isolation; they grow alongside the economy. We are seeing expansion in agriculture, industry and services, as well as greater integration into regional and global markets,” he noted.

He added that government investments in infrastructure and programmes such as the Parish Development Model (PDM) are creating an enabling environment for growth within the financial sector.

“If we are to bring more Ugandans into the formal financial system, we must meet them where they are — on their phones, in their communities and in their daily transactions,” he said.

The minister also urged the bank to invest further in digital innovation and emerging technologies such as artificial intelligence to reduce operational costs, improve financial access and strengthen risk management systems.

“We will continue to provide a stable macroeconomic environment, invest in infrastructure and implement policies that support private sector growth,” he added.

State minister for Investment and Privatisation Evelyn Anite praised the bank’s transformation, noting that it had successfully transitioned from a Tier Two institution to a Tier One commercial bank.

“On behalf of the citizens of Uganda, we have been shareholders of Pearl Bank for a decade. It has grown from strength to strength, and one of its key achievements is its elevation to a Tier One bank,” Anite said.

She also highlighted the success of the Wendi platform, which has extended financial services to more than 6,000 parishes, with plans to expand coverage to 10,000 parishes by the end of the year.

“This has made it easier to disburse Parish Development Model funds to low-income earners across the country,” she said.

Anite added that the bank is witnessing strong uptake of its products and services, which is expected to further strengthen its financial performance. Pearl Bank managing director and chief executive officer Julius Kakeeto said the institution remains focused on delivering both economic and social impact.

“As an indigenous bank, we want to remain relevant by fostering prosperity for Ugandans. We want customers who stay within the formal financial system. It’s not just about bringing people in, but ensuring they remain and grow,” Kakeeto said.

He added that the bank is prioritising support for agriculture and related value chains as part of its long-term growth strategy.

“We aim to stimulate entrepreneurship, particularly in agriculture value addition, production, marketing and everything around it. That is the story behind the numbers,” he said.

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