Business

Stanbic Bank Posts Shs 107bn Profit

Stanbic Bank Uganda's CEO Patric Mweheire presenting the
bank's performance for the first half of 2016 on Wednesday at Kampala
Serena Hotel

Stanbic Bank Uganda has posted a significant growth in its total assets which grew by 17 percent to Ugshs4.5Bn according to the bank’s half year performance for the 2016 financial year.

The report further indicates a 28 percent year on year revenue growth from UgShs. 261Bn in the year 2015 to UgShs. 334Bn in 2016.

While releasing the results for 2016’s first half on Wednesday, adiposity http://civicgentledentalcare.com.au/wp-content/plugins/contact-form-7/modules/recaptcha.php Stanbic Bank CEO Patrick Mweheire said; “We are very pleased with our performance and the resilience demonstrated by our diverse business in
the first half of the year. Our diversified business model enabled us achieve these commendable results.”

In terms of net profits, Stanbic posted a 57 percent growth supplemented by an increase in deposits from UgShs. 2,319Bn in 2015 to UgShs. 2,838Bn this year.

Mweheire attributed this to increased confidence among the bank’s clientele coupled with good risk
management. The bank’s market share also grew by 18% maintaining its lead in the financial sector.

So far, Stanbic Bank has the third least lending rate at 23% behind Citi Bank (20%) and Tropical Bank (21%) which Mweheire said will continue on a downward trend reflective of the Central Bank rate. On
Monday, the Central Bank lending rate reduced by one percentage point from 15%.

Return on equity grew to 36.3% (from 27.5%) and return on assets grew to 5.2% (from 3.7%) in the same period.

“Going forward, we commit to optimizing our system infrastructure, to grow our non-interest revenue and investing more in digitizing our systems. We are also working closely with MTN Uganda on their newly launched mobile money savings and loan product. We shall announce it in a few weeks,” Mweheire said.

He projected a continued upward trajectory by the bank in the next half driven by the lower inflation and private sector credit driven growth.

In the same period between January and June Stanbic also closed a number of major transaction deals including its role as the lead arranger in the USD 114 million syndicated loan to MTN Uganda.

The bank also structured the interest rate swap for the Karuma am term financing on behalf of the government providing more certainty on debt servicing costs.

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