MTN Mobile Money Uganda (MoMo) delivered a strong set of results for 2025, with profit after tax rising 23.5% to sh308.9 billion, up from sh250.2 billion in 2024, but the real story lies beneath the headline numbers — in the rapid expansion of its lending business, which is beginning to redefine the platform’s economics.
At the heart of MoMo’s growth is a sharp surge in its loan book. Loans disbursed through the platform jumped 86.2% to sh2.7 trillion, reflecting accelerating uptake of digital credit products under its Pay, Borrow, Invest ecosystem.
This matters because lending changes everything.
For years, mobile money has largely been a transaction-driven business — dependent on fees from transfers, withdrawals, and payments. That model, while scalable, is inherently limited by pricing pressure and the cost of maintaining agent networks. Lending, by contrast, introduces a high-margin revenue stream that is less dependent on transaction volume and more on balance sheet utilisation and risk pricing.
In simple terms:
Payments bring volume. Lending brings margins.
The significance of the sh2.7 trillion in loans disbursed is not just its size, but what it signals — that MoMo is successfully leveraging its data, distribution, and customer base to move into financial intermediation. With over 14.7 million active wallets, the platform has a unique advantage in assessing creditworthiness through transaction histories, enabling it to scale credit faster than traditional banks.
Over time, this could become the single most important driver of profitability.
Revenue growth anchored on scale and service diversification
Against this backdrop, total revenue grew 20.2% to sh1.2 trillion, up from sh981.9 billion, supported by increased usage across the ecosystem.
Transaction activity remained robust:
Transaction volumes rose 16.8% to 5.0 billion
Transaction value increased 23.3% to sh195.5 trillion
Active wallets grew 6.5% to 14.7 million
More importantly, MoMo is beginning to shift its revenue mix. Advanced services — including payments, lending, and savings — now contribute 30.6% of total revenue, up from 28.7% in 2024.
This shift is subtle but critical. It signals a move away from reliance on basic transfer fees toward a more diversified, and potentially more profitable, fintech model.
Operating leverage begins to emerge
Operating profit rose 26.2% to sh454.1 billion, outpacing revenue growth and indicating early signs of operating leverage.
However, the cost base remains heavy:
Selling and distribution costs climbed to sh502.7 billion from sh425.5 billion
Agent commissions and marketing expenses continue to absorb a significant portion of revenue
This reflects the structural reality of mobile money — scale comes at a cost. But as lending and other digital services grow, they offer a pathway to decouple revenue growth from distribution costs, improving margins over time.
Deposits grow to sh1.47 trillion, strengthening funding base
MoMo’s balance sheet tells an equally important story.
Customer deposits — the mobile wallet balances — rose to sh1.47 trillion, up from sh1.37 trillion, a 7.4% increase.
This growth provides the foundation for its lending ambitions.
In traditional banking, deposits fund loans. In MoMo’s case, while regulatory structures differ, the accumulation of customer balances creates a stable liquidity base and opens opportunities for partnerships in credit provision.
The implication is clear:
As deposits grow, the capacity to support lending — directly or through partners — expands.
At the same time, cash and bank balances surged to sh214.2 billion, up from sh78.4 billion, reflecting strong liquidity and improved cash generation.
Assets expand as platform deepens
Total assets increased 14.6% to sh1.87 trillion, driven largely by higher trust balances and cash holdings.
The balance sheet remains highly liquid, but its composition increasingly reflects a financial services platform rather than a pure payments business.
Equity and cash flows signal maturity
Equity rose sharply to sh152.2 billion, up from sh42.2 billion, despite dividend payments of sh198.9 billion during the year.
Meanwhile, operating cash flow rebounded strongly to sh190.9 billion, from a negative sh9.9 billion in 2024 — a clear sign that the business is now generating sustainable cash from its operations.
Why lending is the future of MoMo
The surge in digital lending is not just another growth metric — it is the pivot point for MoMo’s next phase.
If sustained, it could:
Lift margins, as credit products typically yield higher returns than transaction fees
Increase customer stickiness, as borrowers are more likely to remain active users
Unlock cross-selling opportunities, including savings and investment products
Position MoMo as a financial intermediary, not just a payments platform
But it also introduces new risks:
Credit risk and potential defaults
Regulatory scrutiny as the business moves closer to banking
The need for more sophisticated risk management systems
The bigger picture
The 2025 results show a business at an inflection point.
MoMo is still driven by transaction growth — sh195.5 trillion in annual value processed — but it is increasingly being defined by what sits on top of that infrastructure: lending, savings, and digital financial services.
The expansion of the loan book to sh2.7 trillion in disbursements is the clearest indication yet of that shift.
Summary of Key Financial Results
| Metric | 2025 (Ushs) | 2024 (Ushs) | Change (%) |
|---|---|---|---|
| Total Revenue | 1.2 trillion | 981.9 billion | +20.2% |
| Operating Profit | 454.1 billion | 359.8 billion | +26.2% |
| Profit After Tax | 308.9 billion | 250.2 billion | +23.5% |
| Total Assets | 1.87 trillion | 1.63 trillion | +14.6% |
| Customer Deposits (Float) | 1.47 trillion | 1.37 trillion | +7.4% |
| Cash & Bank Balances | 214.2 billion | 78.4 billion | +173% |
| Total Equity | 152.2 billion | 42.2 billion | +260%+ |
| Net Operating Cash Flow | 190.9 billion | (9.9 billion) | Turnaround |
| Loans Disbursed | 2.7 trillion | ~1.45 trillion | +86.2% |
Bottom line:
MoMo’s 2025 results are not just about profit growth — they mark the emergence of a new business model. The surge in digital lending, backed by a growing deposit base and vast transaction data, positions MoMo to evolve into a high-margin financial platform. If executed well, lending could become the engine that transforms scale into sustained profitability.
