Stanbic posts Shs95bn profits in frail economy

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Patrick Mweheire the Chief Executive of Stanbic Uganda

Stanbic Bank Uganda has announced its 2017 Half Year Results reporting a solid performance in a challenging but improving economic environment.

“We have reported a solid performance despite a subdued economic environment due to our diversified businesses and relentless focus on the customer,” Patrick Mweheire the Chief Executive of Stanbic Uganda explained.

“Supporting Trade and Infrastructure played a key role in our performance as we grew our off balance sheet exposure to an excess of UGX 1 trillion in support of the development of our nation.  This provided a much needed buffer from a challenging economic environment characterised by low private sector credit growth and low aggregate demand.”

He said the bank is optimistic of the second half as the downward revisions of the Central Bank Rate CBR, four times in the first half of the year begin to stimulate borrowing and much-needed private sector credit growth necessary to jump-start the economy.”

The Bank reported growth in customer deposits by Ushs 388 Billion, its loan portfolio by Ushs 140 Billion, off-Balance sheet items by Ushs 271 Billion and registered profitability of Ushs 95 Billion.

Analysing how the banks performance impacted the wider economy Patrick revealed, “Stanbic collected tax in excess of UGX 1.75 trillion on behalf of the Government of Uganda, through our large branch network. The bank and its employees on its own – contributed a total of Ushs 68.3 billion for the first six months of 2017.”

Looking towards the second half of the year Patrick remarked, “We are optimistic that the economy will grow faster as individual and commercial borrowers take advantage of much lower interest rates.  We have reduced our prime lending rate by 5% over the last twelve months and will continue to support our customers by introducing new products and services that make a difference.”

He added: “We will continue to invest in the communities where we operate and spend a meaningful portion of our Corporate Social Investment budget supporting Early Childhood, Primary and Secondary education initiatives.”

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