By Silvia Nyambura
Stanbic Bank has posted a 12% growth in profits to record Ushs 150.8 billion for the year ending December 2015. The bank also recorded Ushs 532.5 billion in revenues with overall deposits averaging at Ushs 3.1 trillion up by 12% from the previous year. The total loan book grew by 20%, with an end year closing balance of Ushs 2.2 trillion up from Ushs 377 billion in 2014. The credit loss ratio fell to 1.5% from 2.3% in the previous year.
“Our results 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. We are pleased that our customers and the businesses we are financing are operating successfully and contributing positively to the wider economy,” said Stanbic CEO Patrick Mweheire.
Talking about the return the bank proposes to pay their shareholders in terms of dividends Sam Mwogeza the Chief Financial Officer said, “The bank has posted a strong Return on Equity (RoE) of 29% and a 12% increase in Earnings per Share (EPS) to Ushs 2.95. We value our shareholders and the contribution they make towards our continued success. As such the board has recommended a dividend of Ushs 0.78 per share this year which though lower than last year still represents a solid dividend pay-out.”
He 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 (DSIBs), of which Stanbic is one, to hold more capital.
“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 our customer touch points to provide lower cost, more convenient and more widely distributed banking services to our client base. This will be largely through the bank’s digital platforms where we have already launched exciting new solutions to improve our customer banking experience,” he added.
Going forward, Stanbic plans on taking advantage of the recently passed Financial Institutions (Amendment) Bill 2015 which provides for Agency Banking.
“This 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,” Mwogeza concluded.
