Stanbic Bank
Stanbic Bank
Stanbic Bank
Stanbic Bank
22.5 C
Kampala
Stanbic Bank
Stanbic Bank
Stanbic Bank
Stanbic Bank

Reduced interest rates boost Stanbic Bank’s credit to private sector

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Stanbic Bank’s latest financial report shows that it gave Shs157b as loans, which was 80 percent of the net industry credit.

The bank in its report says the periodical reduction of its prime lending rate over the past few years helped boost the loan figures upwards, with the bank’s overall loan book growing by 8 percent to Shs 2.13 trillion up from Shs1.98 trillion.

Stanbic Bank CEO Patrick Mweheire said in Kampala two days ago that the 17.5 prime lending rate pegged on the CBR is one of the lowest that customers can enjoy in the country.

He said the bank had played a key role in supporting Uganda’s continued economic recovery. “Our balance sheet grew by over Shs 800b to Ushs 5.4trn,” he said, adding that that allowed it to support projects like infrastructure across the country.

The report shows Stanbic provided financial instruments worth one trillion shillings including Bank Guarantees, Letters of Credit and Bid Bonds to contractors, suppliers and executing government agencies.

According to the bank, customer deposits also grew by approximately 18 percent to Shs3.62 trillion from Shs 3.06trillion, representing 20 percent of all bank deposits in the country.

Net profit for the bank rose to Shs200b from Shs191b realised in 2016. That was reached at with the help of the reduction of operating expenses that fell to Shs15b year-on-year. Investments in the further integration of digital technology within product and services also contributed to a reduction in costs, the bank said.

Analysing the bank’s key performance indicators Sam Mwogeza the Chief Financial Officer said the bank improved across all key financial indicators during the period. “Our credit loss ratio was just 1.3 percent compared to 1.8 percent registered in 2016 and continues to be well below the industry average,” he said.

Meanwhile, the board has approved a dividend pay-out of Shs90b, an increase of 50 percent when compared to dividend shareholders received in 2016. Earnings per share climbed to Shs3.92 from Shs3.73 in 2016.
 

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