Pearl Bank Executive Direct Marting Mugisha

By: News Editor

Pearl Bank’s loan portfolio has surpassed UGX 1 trillion, marking a significant expansion in the bank’s lending business as it steps up financing to agriculture, businesses, households and other productive sectors of Uganda’s economy.

The milestone represents a substantial increase from the UGX 749 billion loan portfolio recorded at the end of December 2025, reflecting the bank’s continued efforts to grow its market share and increase lending to sectors considered critical to Uganda’s economic transformation.

Agriculture and agro-industrialisation have been the biggest contributors to the growth, accounting for about 35 percent of Pearl Bank’s loan book. The bank says nearly half of its lending portfolio is directed towards activities aligned with Uganda’s priority growth sectors under the Fourth National Development Plan (NDP IV) and the government’s Tenfold Growth Strategy.

Martin Mugisha, Pearl Bank’s Executive Director for Operations, said the bank’s growth follows a strategy aimed at doubling its market share through products designed to increase access to finance. “We set ourselves the ambition of doubling our market share and then developed products that could help us scale quickly. Agriculture and agro-industrialisation have been particularly important, supported by disciplined execution across the Bank,” Mugisha said.

The bank has expanded financing along agricultural value chains, including production and processing, while increasing lending to micro, small and medium enterprises (MSMEs), trade, logistics, construction and other sectors supporting economic activity.

Pearl Bank says partnerships with government and development finance institutions have also helped it expand lending by providing affordable funding and reducing lending risks. Its partners include the Government of Uganda, Bank of Uganda’s Agricultural Credit Facility, Aceli Africa, aBi Finance and the Agence Française de Développement (AFD).

Mugisha said the high cost of borrowing remains one of the major barriers to private-sector credit, particularly for agriculture and small businesses.“Partnerships allow us either to reduce the cost of funds or share some of the lending risk. That enables us to lend more affordably and sustainably, particularly to agriculture and SMEs where financing gaps remain significant,” he said.

The UGX 1 trillion milestone is part of Pearl Bank’s 2024–2028 strategic plan, which focuses on sustainable financial inclusion and stimulating entrepreneurship and enterprise development.

Going forward, the bank plans to deepen its lending to agriculture while expanding financing to tourism, construction, minerals and other long-term productive investments supporting the government’s ATMS agenda.

Mugisha said achieving the bank’s next phase of growth will require stronger local and international partnerships, as well as increased access to long-term capital to match the financing needs of long-term investments.“We are still on the journey towards doubling our market share. The next phase will require stronger local and international partnerships and, critically, more long-term capital,” Mugisha said.

Pearl Bank is also pursuing financial inclusion through its digital platforms and agency network, reducing reliance on opening additional physical branches.

The bank currently operates 59 branches countrywide and more than 8,000 agents, supported by the Pearl Bank App, Pearl Online and smart ATMs.

Pearl Bank traces its history to 1926, when it operated as the Post Office Savings Department, before evolving into PostBank Uganda Limited. The institution was incorporated as a limited liability company in 1998 and is wholly owned by the Government of Uganda.

In 2023, the bank embarked on a five-year strategic plan under the tagline “Grow. Prosper,” derived from its purpose of fostering prosperity for Ugandans.

The strategy focuses on driving sustainable financial inclusion and stimulating entrepreneurship and enterprise development.