Pearl Bank loan book crosses Shs1 trillion as agriculture lending grows

Pearl Bank’s loan portfolio has crossed Shs1 trillion, driven by increased financing for agriculture, businesses and households.

The bank announced the milestone on September 1, 2026. Its loan book stood at Shs749 billion at the end of December 2025. This represents growth of more than 33 per cent in about eight months.

Agriculture and agro-industrialisation account for about 35 per cent of the portfolio. Pearl Bank said almost half of its lending supports sectors prioritised under Uganda’s Fourth National Development Plan and tenfold growth strategy.

Pearl Bank executive director for operations Martin Mugisha said the institution had developed products to support its plan to double its market share.

“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 government-owned bank has increased financing for agricultural production, processing and related value chains. It has also expanded lending to micro, small and medium-sized enterprises, trade, logistics and construction.

Pearl Bank attributed part of the growth to partnerships that provide cheaper capital or reduce lending risks. Its partners include the government, the Bank of Uganda’s Agricultural Credit Facility, Aceli Africa, aBi Finance and the French Development Agency.

Mugisha said high borrowing costs remain the largest obstacle to expanding private sector credit.

“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 bank plans to deepen its involvement in agriculture and increase lending to tourism, construction and minerals. These sectors fall under the government’s agro-industrialisation, tourism, minerals and science agenda.

Pearl Bank said it needs more long-term capital to finance projects in these sectors without creating liquidity problems.

The bank is also using digital platforms and more than 8,000 agents to extend services instead of relying on new physical branches. It currently operates 59 branches across Uganda.

Pearl Bank, formerly PostBank Uganda, is wholly owned by the government.