KAMPALA, Uganda–Stanbic BanK has released its 2017 full year financial results with the bank registering a solid performance driven by the banks strategic contribution to the Ugandan economy.
Announcing the results at a press briefing today Patrick Mweheire the Chief Executive said, “The bank played a key role in supporting Uganda’s continued economic recovery and this was reflected in our overall performance. Our balance sheet grew by over Ushs 800 billion to Ushs 5.4 trillion. This allowed us to support much larger national priority projects including the spread of much needed infrastructure across the country. In 2017 alone, we provided financial instruments worth One trillion Shillings, to contractors, suppliers and executing government agencies. These included Bank Guarantees, Letters of Credit, bid Bonds among others.”
He continued, “As a sign of confidence in the banks resilience, our customer deposits grew by approximately 18% from Ushs 3.06 trillion to Ushs 3.62 trillion representing 20% of all bank deposits in the country. In fact, of the Ushs 168 Billion in net industry credit growth, Stanbic’s growth represented over 80% (Ushs 157 Billion) which meant the bank played a significant role in providing credit to individuals and businesses.
He noted the banks policy of tracking adjustments to CBR with equal revisions to their Prime Lending Rate as playing a big part in promoting credit growth with the bank reducing its PLR by over 7.5 basis points over the past 18 months, “At just 17.5% Stanbic now has one of the lowest lending rates of all banks active in the Ugandan credit market.” Stanbic Banks overall loan book grew by 8% to Ushs 2.13 trillion up from Ushs 1.98 trillion.
Looking at the bank’s profitability for the year, Patrick noted that the bank managed to achieve much improved efficiencies in both its control environment and management processes helping reduce operating expenses by approximately Ushs 15 Billion year on year. This ensured that despite a reduction in the banks overall income, our net profit for the year actually increased from Ushs 191 Billion to a record Ushs200 Billion. “This outcome confirms our customer centric approach is working. Our Investments in the further integration of digital technology within our product and service offering also contributed to a reduction in our cost to serve while giving our customers greater access and flexibility to bank if, when and whichever way they wanted.”
Analysing the banks key performance indicators Sam Mwogeza the Chief Financial Officer revealed the bank reported improvement across all key financial metrics, “Our credit loss ratio was just 1.3% compared to 1.8% registered in 2016 and continues to be well below the industry average. In addition, we managed to reduce our cost to income ratio by 1.6% to 50.5% while our earning per share climbed to Ushs 3.92 per share from Ushs 3.73 in 2016.”
“Our Shareholders will be pleased to hear that based off the banks strong performance the board has approved a dividend pay-out of 90 Billion shillings, an increase of 50% over 2016.” Sam added.