Stanbic Bank, one of Uganda’s leading financial institutions, has released its annual results for the 2015 financial year.
According to the results, the bank registered record earnings for the second year in a row, consolidating its position as Uganda’s largest and most profitable bank.
Making the announcement in a media release today Mr. Patrick Mweheire the Chief Executive of the bank said, “The bank has demonstrated remarkable resilience in a challenging macro-economic environment.
“Our strong earnings, of 532.5 billion Ushs in 2015, were generated through a balanced mix of net interest income and non-interest revenue. This was reflective of the strength of our diversified business model and the success of our customer centric approach, which focuses on delivering relevant and convenient products and services to our clients.” He added.
According to the CEO, Stanbic Bank’s overall deposits averaged a record 3.1 trillion Ushs up by 12% from the previous year.
“While we grew our total loan book by a healthy 20%, with an end year closing balance of 2.2 trillion Ushs up 377 Billion from 2014. In addition we registered significant progress in strengthening the quality of our loan book.”
Asset quality markedly improved with the credit loss ratio falling to 1.5% from 2.3% in the previous year. This continued improvement in the credit quality was driven by deliberate actions to improve the underwriting process and strengthening of client engagement.
- Total assets grew by 6% to 3.7 Trillion Ushs
- Revenues up 8% to 532 Billion Ushs
- Net Profits up 12% to a record 150.8m Billion Ushs
- Proposed dividend of 40 Billion Ushs
Talking about the return the bank proposes to pay their shareholders in terms of dividends Mr. Sam Mwogeza Stanbic Bank’s Chief Financial Officer said, “The bank has posted a strong Return on Equity of 29% and a 12% increase in Earnings per Share to 2.95 Ushs.”
“We value our shareholders and the contribution they make towards our continued success, as such the board has recommended a dividend of 0.78 Ushs per share this year, which though lower than last year, still represents a solid dividend pay-out”.
Mwogeza further explained that the reduction in the proposed dividend to the prior year was driven by the need to hold more capital in light of emerging regulation from Bank of Uganda, requiring Domestic Systemically Important Banks, of which Stanbic is one, to hold more capital.
Looking towards the future and talking about the bank’s plans for taking the customer experience to the next level Mr Mwogeza explained “The bank has been very deliberate about investing in building the capabilities it needs to ensure sustainable earnings growth in the future.
“A big part of this re-investment has been focused on broadening the bank’s customer touch points to provide lower cost, more convenient and more widely distributed banking services to our client base.”
This, he further explained would be largely through the bank’s digital platforms were the bank has already launched exciting new solutions to improve the bank’s customers banking experience.
In addition, “We plan to take advantage of legislative developments such as the passage into law of the Financial Institutions (Amendment) Bill 2015 which provides for Agency Banking and as such represents a great opportunity for us to reach the broader unbanked population by opening up new multiple client access points through representative agents in places which are currently not viable using the traditional banking model.”