Stanbic Uganda has announced its 2019 annual posting 20% growth in profits, to a record Shs 259bn compared to Shs 215bn posted in 2018.
The Chief Executive of Stanbic Uganda Holdings Limited, Patrick Mweheire said the bank delivered another great performance and was able to improve on all our key performance goals.
In the year under review, Stanbic which is the biggest commercial bank in Uganda grew its deposits by 21%. Loans and advances grew by 14% as the bank availed Shs 344bn of new credit to key sectors of the economy such as manufacturing, agriculture and personal lending.
More than 40% of new lending was provided.
“Our revenues grew 20% year-on-year to exceed Shs 800bn and were well diversified between lending and non-lending revenue. As a result, our profit after tax grew 20% to a record Shs 259bn over Shs 215 bn posted in 2018,” Mweheire said.
Sam Mwogeza, Chief Finance Officer Stanbic Bank Uganda said the bank’s total assets also grew by Shs 1.2 trillion which was a 23.2% increase.
Total assets rose to Shs 6.6 trillion in 2019 from Shs 5.4 trillion in 2018. He said the increase was enabled by strong deposit growth (21%) with the incremental liquidity being adequately deployed.
The bank also recorded double digit growth in the loan book.
Loans and advances grew by 14% (Shs 344bn) registering Shs 2.8 trillion in 2019 up from Shs 2.5 trillion in 2018.
This also resulted in a market share gain for the bank to 20% from 19% in 2018, Mwogeza said.
He said the lending supported the key sectors including manufacturing, agriculture, household expenses and trade finance highlighting the bank’s continued transformational role in Uganda’s economic growth.
The ratio of Net Interest to income stood dropped from 56% to 44%, which reflected a significant income diversification.
Commenting on the bank’s future outlook, the new Chief Executive of Stanbic Bank Uganda, Anne Juuko said, “We shall continue to build on the successes achieved. Our customers are the reason we are here, and our aim is to continue to provide the right solutions for them by listening to their needs and ensuring we create what is required to help them grow.”
Commenting on the Coronavirus pandemic which has significantly affected economic activity globally, Juuko emphasized that Stanbic recognizes the impact this will have on the lives of many Ugandans and the economy.
“We are looking at several interventions that can support our customers and work closely with the Government of Uganda to ensure a minimised impact on the economy,” she said.
“As Uganda’s leading bank, we are at the heart of the economy and it is our duty to ensure we support our clients”.
In the interim, the bank has waived all charges on its digital channels, and is offering customer credit relief programmes to its business customers that will be tailored to their circumstances.
Juuko said the aim is to ensure these businesses are sustained and the impact on the economy is minimized.