Stanbic bank profit up 12 percent
KAMPALA-Uganda’s biggest bank by assets Stanbic saw its profit before tax rise 12 percent to Shs 359.6 billion in calendar 2021, up from Shs 320.7 bln previously.
The lender said in a report published in newspapers customer deposits were up mildly to Shs 5.7 trillion from Shs 5.5 trillion in 2020 – a five percent rise.
The season is now for banks to report for the financial year just ended. Ugandan banks report for the calendar year that ends on December 31. The deadline is all the country’s 25 commercial banks must report by April 30.
Stanbic wrote off bad debts worth Shs 63 bln in 2021, up by 31 percent from the Shs 48 bln written off in 2020.
“In a year that saw the economy slow down significantly due to effects of the Covid-19 pandemic, we played our part, making credit available to critical drivers of growth hence supporting businesses create new employment opportunities and keep Ugandans in their jobs,” the bank’s Chief Executive, Anne Juuko said in a statement.
They saw a marked reduction in non-performing loans. These came down to Shs 151.2 bln in 2021 from Shs 219 bln the year before.
The bank said it lent out Shs 3.7 trn in 2021, slightly better than the Shs 3.6 trn taken by borrowers in 2020.
In a direct boost to the economy, the bank said it had lent Shs 290 bln to the trade sector; Shs 225 bln to households; Shs 223 bln to building and construction, while Shs 218 bln went to the manufacturing sector.
Agriculture, which employs more than 60 percent of the rural population and contributes more than 25 percent of the country’s economy got Shs 150 bln from Stanbic, as rural cooperatives sought cash to lend to their members at low rates.
Transport and communication got Shs 122 bln as the country finally reopened its economy after two rolling lockdowns.
Assets at Stanbic, which was once state-owned before being finally sold to South Africa-based Standard Group, grew to reach Shs 8.7 trn in 2021, up slightly from 2020’s Shs 8.6 trn.
The bank expects to perform even better in the current year.
“Looking ahead, 2022 presents a mixed bag of expectations especially on the external front mostly informed by the Russia-Ukraine conflict and rising fuel prices. However, prospects are brightening with more countries across the globe opening up their economies as the pandemic subsides,” Stanbic Uganda Holding Chief Executive Officer Andrew Mashanda said in printed remarks accompanying the report.
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