Stanbic Bank Uganda has today released its 2016 Annual Financial Results, showing an increase in profit after tax and a strong return on equity.
"Our 2016 financial performance was impressive, especially in light of the economic headwinds faced for the most part of the year. Profit after tax was up by 27% to 191.2 Billion Ushs from 150.8 Billion Ushs in 2015 and we also posted a strong Return on Equity (RoE) performance of 30.3%,” revealed Samuel Mwogeza, Chief Finance Officer, Stanbic Bank Uganda.
This growth was supported by the maturity of our diversified business model, a client focused approach to execution and a well embedded risk management framework that enabled strong growth in our earnings and balance sheet. Mwogeza added.
“2016 was another record year for the bank; reflecting our intense client focus and solid performance across our businesses. We had double digit growth in deposits and showed expense discipline while continuing to invest for the future,” disclosed Patrick Mweheire, Chief Executive, Stanbic Bank Uganda.
Building upon the strength and depth of our platform, Mweheire added, we continued to deepen relationships with personal and institutional clients and achieved higher customer satisfaction scores during the year.
Profit after tax was up by 27% to 191.2 Billion Ushs from 150.8 Billion Ushs in 2015
Stanbic Bank Uganda is a member of Standard Bank Group
The financial institution is a key contributor to the Uganda Economy, with 26 years of dedication and growing. It is listed on the Uganda Stock Exchange, we have 22, 535, with an average of 43% of profits paid in dividends over the last 5 years.
“The key to our performance was meticulous planning for the cycle; the Ugandan economy does work in cycles closely aligned to the election calendar and 2016 reflected the pressures we tend to see around election time - high inflation expectations, a heightened interest rate environment and ultimately subdued credit growth,” Mweheire added.
“As a bank, we understand the opportunities and risks embedded in these cycles and have been very deliberate in fortifying our revenues by building a diversified business model that appropriately positions us to withstand the shocks associated with adverse changes in economic performance.
This is the major reason why our revenues and earnings have grown consistently in recent years notwithstanding the industry-wide spike in Non Performance Loans driven by the high-interest rate environment.
Non-interest revenue which is not susceptible to interest rate fluctuations represents over 40% of the bank’s total revenues.
The bank has 1802 employees, offering employment opportunities to a large section of talent in the industry.
As a part community responsibility, the institution has invested over UGX 1 Billion in communities with a specific focus on Education. The Stanbic Financial Literacy Programme has touched 3,805 vulnerable households by doubling average incomes.