The study aimed at credit management and financial performance of financial institutions in uganda with a case study of centenary bank, Gulu branch and it was guided by the following objectives; To examine the effect of credit terms on financial performance of Centenary Bank, Gulu Branch, to analyse the effect of credit assessment on financial performance of Centenary Bank, Gulu Branch and to investigate the relationship between credit control and financial performance of Centenary Bank, Gulu Branch. A descriptive research design was adopted for the study since it focuses on the people as well as their attributes which enable the investigator to understand and examine the influence of credit management on the performance of financial institutions in Uganda. The method was used to collect data from middle-level staff and other lower-level staff within the bank because they were directly involved in the operations of the SMEs. Self-Administered Questionnaires (SAQ) was employed to gather data from the study elements in a structured manner. SAQs with one open ended question per section was designed for SME employees to give additional or express their mind while the rest was close-ended aimed at testing perception using a five-point likert scale measuring from Strongly Disagree as response 1, Disagree as response 2, Not sure as response 3 Agree as response 4 and Strongly Agree as response 5 for easy measurements of variables. From the findings, it shown that there was a strong relationship between credit financing andthe growth of bank. At Pearson correlation coefficient r =0.669. The results as depicted from the table above (r2=0.669, P=0.035) suggested a positive and significant effect on credit financing on the growth of bank in Centenary bank. The positive relationship meant that when credit financing increases, bank also grow. Banks should devise means they deliver credit financing facilities, improve terms and conditions under which financial institutions offer various credit facilities to bank.