International Journal of Academic Management Science Research (IJAMSR)   Year: 2022 | Volume: 6 | Issue: 8 | Page No.: 207-216 Agency Banking and Financial Performance of Commercial Banks in Uganda. A Case Study of Equity Bank in Kawempe Division Download PDF Gumoshabe Saviour, Rutaro Abas Abstract: This research studied the effect of agency banking on financial performance of equity bank in Uganda. In obtaining the information regarding the current status of the phenomenon descriptive research design was used with respect to the variables. The study targeted Equity bank in Kawempe Division. Secondary data was used in obtaining data from bank supervision reports, audited financial statements of Equity bank. Data analysis focused on the agency banking and financial performance indicators for the period of 3years. Research findings established that agent charges, transaction volume and agent commission have a statistical significant effect on financial performance of Equity Bank in Kawempe Division. The study findings established that there is a relationship between transaction volume and agent charges through agency deposits and withdrawals and financial performance of Equity Bank. The research findings revealed that 40% of volume of transactions by agents was for withdrawals, 36%for cash deposits, 16% was for account opening, 6%was for fund transfer and 2%for loan payment. From the findings, the study concluded that agency transaction volume has a significant effect on financial performance of Equity Bank. The findings showed a significant positive relationship between agent commission and banking performance of Equity. The study concluded that agent commission and agent charges have a significant effect on the financial performance of Equity Bank in Kawempe Division. The study recommended that Equity Bank should adopt a cost friendly and effective agency banking systems in order to attract more customers and agents to increase bank services accessibility.