Stanbic Posts 21.5% Growth in Profit in Show of Pandemic Resilience

Stanbic Uganda Holdings Limited’s business performance remains resilient despite the effects of the Covid-19 pandemic and its first-half financial results show that customer deposits increased to Shs5.7 trillion in June 2021 compared to Shs5.2trn in June 2020, indicating a 9.5% growth.

Officials say the strong performance was largely driven by Stanbic Bank Uganda Limited, the anchor subsidiary.

Assets grew by 9.8% driven by an increase in loans and advances amounting to Shs3.8 trillion compared to Shs3.4 trillion in June 2020, reads the results statement.

The financial institution earned Shs154.9 billion in Profit after tax (PAT) representing an impressive 21.5% growth from the same period last year.

Growth in PAT was mainly driven by strong growth in trade revenue which accounted for Shs37.5 billion as well as better management of loan impairments, which reduced by Shs11.7 billion as compared to the same period last year.

The company remains well-capitalized above the minimum regulatory requirement, ensuring that it is in a strong position to continue financing the private sector through the second half of the year.

Stanbic Uganda Holdings Limited (SUHL) chief executive Andrew Mashanda says their Return on Equity stands at 23.2% up 1.6% year on year.

The Chief Executive of Stanbic Bank Uganda Anne Juuko, says the bank’s loans and advances grew by 9.8% to Shs3.8 trillion from Shs3.4 trillion in June 2020.

“We made deliberate interventions to drive economic recovery in a number of ways including the creation of the Enterprise Economic Restart fund (EERF) that aims to raise and provide up to Shs350 billion ($100 Million) in low-cost financing to sectors and groups impacted by the pandemic. We also launched a new value proposition aimed at revitalizing the operations for SACCOs and VSLA’s across Uganda. The bank has so far provided Shs5.1 billion in financing that has reached over 261,497 members,” she said.

“In continuing to honour our commitment to support communities, we invested over Shs2.1 billion into Corporate Social Investment initiatives. We made tangible contributions to education through the National Schools Championship programme reaching over 60,000 students; promoted better access to Health Care through the Maternal Health drive; and joined the fight against COVID-19 with a donation of over Shs200 million to the Ministry of Health providing oxygen cylinders and PPE for front line workers.”

Mashanda said SUHL’s priority for the next half is to focus on investing in technology and digital solutions to enhance our service offerings and customer experience.

“We shall also focus on continuously managing our risks across all areas of operations to ensure business continuity and implement the sustainability priorities as a true testament to our purpose-Uganda is our home, and we drive her growth,” he said.

Apart from Stanbic Bank Uganda Limited, other subsidiaries in the Holding are Stanbic Properties Limited; Stanbic Business Incubator Limited; FlyHub Uganda Limited, and SBG Securities Uganda Limited.