Housing Finance Bank Posts Record Profits, Surpasses 2 Trillion Shillings in Deposits

After 58 years in operation, Uganda’s specialist housing lender delivered its strongest financial performance yet growing profits by 20%, expanding its branch network, and reaching over 8 million Ugandans through digital finance.

After 58 years in operation, Uganda’s specialist housing lender delivered its strongest financial performance yet growing profits by 20%, expanding its branch network, and reaching over 8 million Ugandans through digital finance.

Housing Finance Bank (HFB) closed 2025 with its most impressive set of numbers in its 58-year history, reporting a profit after tax of UGX 85.4 billion, up 20% from 71.1 billion the previous year.

The bank was founded in 1967 as a mortgage and savings institution, became a fully licensed commercial bank in 2007, and has since grown into one of Uganda’s ten largest banks. These results suggest that transformation is well and truly complete.

Think of profit after tax as what the bank actually keeps after paying staff, running branches, settling loans that go bad, and handing government its share in taxes. A 20% increase in that figure is not routine it reflects disciplined lending, improved efficiency, and a business model that is generating real momentum.

The numbers that matter
Total income surged from UGX 402 billion to UGX 499 billion in a single year a jump of nearly 100 billion shillings. Interest earned on loans drove most of that growth, rising from 227 billion to 303 billion shillings as HFB’s loan book expanded.
Fee and commission income, what the bank earns from services and transactions also climbed sharply, from 30 billion to 40 billion shillings, reflecting a wider and more active customer base.

Total assets rose 15% to UGX 2.69 trillion. Assets are the financial firepower a bank deploys the loans it writes, the government securities it holds, the infrastructure it owns.

A growing asset base, managed responsibly, means more lending capacity for homebuyers and businesses. Customer deposits crossed the two-trillion-shilling mark for the first time, hitting UGX 1.95 trillion. Net loans and advances climbed 11% to UGX 1.20 trillion the bank is putting those deposits to work.

The 2025 financial year reflects strong execution and continued progress in advancing our purpose. Our performance was driven by portfolio growth, improved operational efficiency, and deepened customer engagement.

These results highlight the growing relevance of our solutions in supporting individuals, households, and businesses across Uganda.
– Michael K. Mugabi, Managing Director

Purpose at the centre of performance
What distinguishes HFB’s 2025 story is how it interweaves commercial success with social impact. Through its Zimba Mpola Mpola programme which translates loosely as “build gradually” more than 2,500 customers were enabled to build homes progressively, in line with their income cycles rather than on a lump-sum basis.
This is an important innovation for a country where formal mortgage finance remains out of reach for most households.

Innovation in affordable housing also took centre stage in 2025 through the launch of the Zimba Housing Challenge, a nationwide competition that invites architects, engineers, developers, and innovators to design practical, cost-effective solutions to Uganda’s 2.4-million-unit housing deficit.
Finalists went under incubation, received hands-on support through bootcamps covering financial management, technical guidance, and site demonstration training, alongside dedicated construction clinics that promote incremental building models suited to low-income and informal earners.
The winner stands to receive up to UGX 100 million in seed capital to scale their solution.
By putting prize capital and institutional mentorship behind homegrown housing ideas, HFB has positioned itself not just as a lender, but as an active convener of the innovation ecosystem, a signal that the bank sees Uganda’s housing gap as both a development challenge and a long-term business opportunity worth investing in from the ground up.

Enterprise financing also gained ground.
The bank advanced UGX 56 billion towards agro-industrialisation, supported over 4,200 businesses, and disbursed funds to more than 2,000 SACCOs through the government’s Parish Development Model a community-based savings and investment scheme. Over 8 million Ugandans were reached through digital lending channels, a figure that speaks to HFB’s growing footprint beyond its branch walls.

Board Chairperson Josephine N. Mukumbya framed the results within the bank’s broader governance mandate. He said –

On behalf of the Board, we are pleased with the Bank’s performance in 2025, which underscores the resilience of our business model and our commitment to financing a sustainable future for all. The Board has ensured that this growth is delivered responsibly, within a robust governance and risk management framework, and aligned to our High Impact Goals.

Her statement from an independent standpoint is backed up by the numbers: a 25.25% capital adequacy ratio well above regulatory minimums, and a clean audit opinion from Deloitte and Touche.

Expanding reach and building resilience
The bank expanded its physical network to 21 branches, opening new locations in Masaka, Soroti, and Nansana communities where access to formal banking has historically been limited.
Digital investment ran alongside this, improving service delivery speeds and customer convenience. ISO 27001:2022 certification a global standard for information security was also attained, offering customers concrete assurance that their data is protected.

One area worth monitoring is the near-doubling of loan impairment charges, from UGX 34 billion to 66 billion shillings.
This is the money set aside for loans that may not be repaid a number that reflects both the growth in lending and a prudent, cautious stance by management. It is not a red flag at this stage, but it warrants attention as the portfolio continues to expand.

For investors, a 20% return on equity in a single year is a compelling signal. For customers, a stronger, better-capitalised HFB means more mortgages written, more businesses funded, and more Ugandans with a credible path to owning a home.
After 58 years, the bank appears to be hitting its stride.

Sustainability, Financial Inclusion, and Strategic Partnerships
Beyond financial performance, one of the more compelling dimensions of HFB’s 2025 story is how deliberately the bank has woven sustainability into its core operations. This is not a footnote or a public relations exercise it is an embedded strategic priority with measurable outcomes, and the results bear that out.

In 2025, the bank was represented at the Global Sustainable Finance Conference in Karlsruhe, Germany a significant milestone in its pursuit of Sustainable Finance Certification.
This international engagement signals HFB’s ambition to align with global best practice in environmental, social, and governance (ESG) standards, not merely to satisfy a checklist, but to unlock new categories of concessional financing and green capital that can deepen its development impact at home.

On the environmental front, HFB planted 10 tiny forests across Uganda in 2025 as part of a commitment to plant one million trees by 2027. Tree-planting activities at Kazo Primary School Kazo COU Nursery & Primary School, Kazo Mixed Day & Boarding P.S , Jinja Kalooli Parish P.S in Nansana , Soroti City Mayor`s gardens, Kako Senior Secondary school and Kitovu cathedral in Masaka are visible examples of this initiative. These efforts are not symbolic they reflect a bank that understands its footprint extends well beyond balance sheets.

In partnership with WaterQuip Uganda, HFB also provided clean drinking water access to over 1,000 students at St. Joseph Nursery and Primary School in Nansana, linking its community investment directly to the livelihoods it seeks to improve.

Strategic partnerships have been equally central to the bank’s inclusion agenda.
HFB’s collaboration with the Uganda Green Enterprise Finance Accelerator (UGEFA) is particularly noteworthy eligible small and medium enterprises in manufacturing, eco-friendly tourism, waste management, and green mobility can now access loans at HFB with UGEFA covering up to 33% of the loan principal.

This effectively lowers the cost and risk of borrowing for businesses that might otherwise struggle to qualify, directing capital towards sectors with long-term environmental and economic value.

Through a UGX 100 million sponsorship of the NSSF Kampala Hills Run, HFB helped raise UGX 1.5 billion to refurbish 10 public schools, directly impacting over 1,000 pupils. These are not vanity initiatives they reflect a coherent theory of change: that stable, healthy, educated communities are ultimately the bank’s most important long-term customers.

From an independent analytical standpoint, what is striking is the coherence between HFB’s sustainability commitments and its commercial trajectory. Banks that embed ESG principles early, build genuine community trust, and attract development finance partnerships tend to enjoy more resilient growth over time.
HFB’s 2025 record suggests it understands this equation well and is executing on it.