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Stanbic Bank assets, net profits surge

Peter 16th Aug, 2024 Financial Services Edward Kayiwa
Stanbic Bank assets, net profits surge

Stanbic Uganda headquarters in Kampala.


Stanbic Uganda Holdings Limited has announced a significant improvement in its financial performance, with total assets reaching UGX9.7 trillion, a 3.8% increase from UGX9.4 trillion the previous year.

According to the company’s income statement, which was published today covering the first half of 2024, the company registered a 8.1% growth in revenue compared to the previous year. Profit after tax increased by 17.6% to more than UGX235.5 billion, up from UGX200 billion, driven by a 17.2% rise in non-interest revenue and a 2.1% growth in net interest income.

In addition, the financial statement indicated that the Board has approved an interim dividend of UGX2.73 per share, totaling UGX140 billion for the period ended June 30, 2024, reflecting Stanbic’s commitment to delivering value to its shareholders. In July 2023, shareholders were paid an interim dividend worth UGX125 billion and a final dividend of UGX3.03 per ordinary share totaling UGX155 billion.

  • The notable growth reinforces the bank's position as a key player in Uganda's economic development, particularly in funding major infrastructure and development projects.

Francis Karuhanga, CEO of Stanbic Uganda Holdings Ltd (SUHL), expressed confidence in the bank's ability to support economic growth, attributing the strong results to the bank's diversified business model and a steadfast focus on innovation and risk management.

"We have posted strong results on both the income statement and balance sheet, underpinned by our diversified business model and a strong focus on providing innovative solutions to our clients. Our bank subsidiary continues to be the anchor of our performance, as our beyond-bank subsidiaries gain momentum on their growth trajectory," Karuhanga stated.

  • Despite a challenging operating environment characterized by rising inflation and increasing lending rates, Stanbic has managed to maintain a strong financial position. Inflation rose to 3.9% by June 2024, up from 2.6% in December 2023, while the Central Bank Rate (CBR) increased to 10.25% from 9.5% over the same period.
Stanbic Bank assets, net profits surge Stanbic Uganda Holdings CEO Francis Karuhanga is optimistic about the company's involvement in Uganda's development agenda.

Regardless of these challenges, Stanbic’s customer loan book grew by 9.5%, representing over 21% of the market share, while its off-balance sheet book surged by 17.5% to UGX2.2 trillion, maintaining its market dominance with over 40% share.

"Our leadership in key sectors such as construction, energy, health, and trade demonstrates our commitment as a key enabler of growth in our economy," said Karuhanga.

He said the company has placed a strong emphasis on supporting the growth of small and medium enterprises (SMEs), recognizing their critical role in Uganda's economy. SMEs contribute 70% of the country's manufacturing output and are responsible for creating 90% of new jobs.

"Our deliberate focus on the SME segment is part of our strategy to drive economic growth and create jobs. We believe in empowering this sector to unlock its full potential," Karuhanga added.

  • Central to Stanbic's growth strategy is the continuous improvement of client experience through digital innovation, Karuhanga said, adding that the bank's low-cost payment solution, Flexipay, now boasts over 900,000 clients and continues to grow in both transaction volume and value. This digital shift has significantly reduced traffic to physical branches, allowing customers to bank conveniently from anywhere, at any time.
  • "Our investment in digitizing services not only improves customer experience but also enhances our operational efficiency, ultimately reducing our costs to serve," he noted.

With its robust financial performance and strategic focus on innovation and customer satisfaction, Karuhanga said Stanbic Bank is well-positioned to continue its pivotal role in driving Uganda’s economic development.

"We will continue to invest in the communities where we operate and support the economy’s growth. Our transparent pricing and commitment to low prime lending rates will remain a priority," Karuhanga said.

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