Stanbic Bank Uganda unveiled a remarkable 23.5% surge in its profit after tax for the first half of the fiscal year, amounting to Shs 200 billion. This impressive growth has been propelled by substantial increases in both interest and non-interest income, coupled with a reduction in operational expenses.
Stanbic Bank, a subsidiary of Stanbic Bank Uganda Holdings Ltd and part of South Africa’s Standard Bank Group, has reported robust revenue expansion across all key metrics. Notably, revenue exhibited a substantial upswing of 24.2% during the initial half of the year, reaching Shs 590 billion. This growth was fueled by a remarkable 34.3% increase in net interest income, totaling Shs 355 billion, and a commendable 11.6% rise in non-interest revenue, accounting for Shs 235 billion. Notably, these achievements occurred despite the presence of inflationary pressures, as highlighted by Stanbic Bank CEO Anne Juuko.
In terms of financial metrics, the bank has experienced healthy growth in key areas. Net loans and advances extended to customers have expanded by 4.2%, reaching Shs 4.0 trillion, while customer deposits witnessed a 1.1% increase, amounting to Shs 6.2 trillion. The bank’s overall assets have also demonstrated growth, surging from Shs 9.3 trillion in the previous year to Shs 9.4 trillion.
Anne Juuko, CEO of Stanbic Bank, emphasized the bank’s commitment beyond the purely financial realm. She highlighted the bank’s dedication to supporting the Buy Uganda, Build Uganda (BUBU) initiative, with over 85% of procurement directed toward local suppliers, indirectly contributing to employment generation. Furthermore, Stanbic Bank’s role as a significant employer in the banking sector was underscored, employing nearly 2000 individuals, 99% of whom are of Ugandan origin.
Juuko underscored the bank’s steadfast support for Small and Medium Enterprises (SMEs), along with its provision of specialized solutions for crucial sectors such as agriculture and education. She acknowledged the challenges educational institutions face at the beginning of the academic year and detailed the bank’s revamped value proposition. The bank has increased unsecured financing to up to Shs 500 million, expedited access within 24 hours, and enabled repayment schedules over two academic terms. These actions, Juuko highlighted, exemplify the bank’s adaptability to diverse client needs.
This notable progress takes place against the backdrop of the Ugandan economy’s ongoing recovery from the repercussions of the Covid-19 pandemic, the Russia-Ukraine conflict, and global financing constraints. Last year, Stanbic Bank achieved a 33% growth in profit after tax, amounting to Shs 366 billion, driven by strategic diversification of revenue streams across various sectors.
Anne Juuko also discussed the bank’s financial inclusion agenda, citing the remarkable success of the FlexiPay service. With over 700,000 users as of June 2023, this platform offers an accessible and affordable business solution. The service has experienced over 400% growth in transactional volumes, handling a transaction value exceeding Shs 1 trillion during the first half of the year. Stanbic Bank’s FlexiPay empowers individuals without bank accounts to create wallets, facilitating money transfers and deposits via mobile money and phone numbers.
Andrew Mashanda, Chief Executive at Stanbic Uganda Holdings Limited, noted the holistic growth across the bank’s enterprises, driven primarily by its anchor subsidiary. He highlighted commendable progress by SBG Securities Uganda Limited, the bank’s brokerage and asset management subsidiary. Similarly, Stanbic Properties Limited, the real estate arm, remains profitable and continues to enhance its portfolio. Stanbic Business Incubator Limited plays a pivotal role in supporting SME growth, and FLYHUB, a technology subsidiary, leads the digital transformation and innovation agenda.
Mashanda reaffirmed the bank’s commitment to collaboration across all subsidiaries, harnessing the strength of ecosystems to sustain growth momentum and innovation. The bank’s outlook remains focused on leveraging its integrated strengths to accelerate growth and innovation.
