2022 financial report: Stanbic Bank Uganda records Shs360b profit

Stanbic Bank Uganda Limited has released its financial results for the year 2022, indicating that they made a gross revenue of more than Shs1 trillion and Shs360 billion profit after tax.

Stanbic Bank Uganda Chief Executive Anne Juuko said the strong performance was underpinned by increased growth in credit demand as the economy recovered from the effects of the Coronavirus pandemic.

“As a result of the economic recovery of our customers, we saw a 9.8% growth in demand for new credit in 2022 with the volume of disbursed loans increasing to 77,819 worth Shs4.0 trillion from 63,639 approved applications worth Shs3.7 trillion disbursed in 2021,” Juuko said.

She added that the company’s innovations aimed at helping small businesses also paid off’

“It gives us great pleasure to also report that over 11,000 small businesses have opened accounts with us in the past year and that over 1,800 of them have already benefited from access to affordable credit at rates as low as 15.5%, to the tune of over Shs30 billion,” the CEO said.

Ronald Mataka, Acting Chief Finance Officer at Stanbic Bank Uganda, said in 2022, they paid a total of Shs272 billion in taxes, making the entity the biggest taxpayer in the country’s banking sector.

“We collected another Shs7.5 trillion on behalf of the government by enabling taxpayers to remit through our expansive channels network, representing 33% of total remittances to the government by the entire banking industry,” he said.

Juuko added that through the StanbicForHer programme launched in 2022 with support from the International Finance Corporation (IFC), over 18,500 women received training in the fundamentals of bookkeeping, tax reporting, and accounting, giving them the confidence to run their businesses.

“We are happy to note that these SACCOs have accessed affordable credit through our multi-stakeholder Economic Enterprise Restart Fund (EERF) to the tune of Shs40 billion at as low as 10% per annum for those involved in the agricultural space,”Juuko said.

“We have also invested in their digitalisation as well as governance capacity to ensure that they serve their members, efficiently, like ‘micro Stanbic banks’ in their respective areas. We manifested our purpose of driving Uganda’s growth in ways that directly and indirectly benefited millions of Ugandans and engineered the economic recovery of customers from effects of the Covid-19,” she added.

Despite the emerging challenges in the economy, Juuko said they are pleased with our contribution towards economic recovery success stories of our customers registered in 2022, most of which are a result of sustained dividends of Covid-19 interventions implemented between 2020 and 2021.

Japheth Katto, Board Chairman Stanbic Uganda, speaks at the function.
Andrew Mashanda, Chief Executive Stanbic Uganda Holdings Limited, said Stanbic Properties Limited remains profitable and is executing various projects geared towards revamping our real estate portfolio.

‘FlyHub received its first revenues during the year and continues to pursue more opportunities as businesses explore ways to become more efficient through automation while our SBG Securities revenues were impacted largely by a drop-in capital markets activity, we remain optimistic about its potential as the diversification into asset management is implemented. Stanbic Business Incubator continued to execute its mandate, as a beacon of SME capacity development in Uganda by directing and supporting over 3000 small businesses for the period under review,’ Mashanda said.

Japheth Katto, Board Chairman Stanbic Uganda, said their performance is commendable given the challenges they have gone through.

“We are coming through a period which has had its challenges, coming from #Covid-19 then Ebola, and an increase in the CBR rate. However, notwithstanding all those challenges, the team at Stanbic Bank with the support of the regulators, we have performed well,” he said.

“We have done a lot to support the businesses that are recovering from #Covid-19. We do not only look at the number of customers we have. We look at the impact that we create in society, and how many people we are touching. This is really seen in the support we extend to SACCOs,” he added.