KAMPALA — Stanbic Uganda Holdings Limited (SUHL), a member of the Standard Bank Group, has demonstrated business resilience, weathering through the effects of the Covid-19 pandemic to post a robust performance in the first half of 2021 with strong growth across all key metrics.
The strong performance has largely been driven by Stanbic Bank Uganda Limited, the anchor subsidiary.
According to Stanbic’s half year financial results released on Friday August 6, 2021, customer deposits increased to UGX5.7trn in June 2021 compared to UGX5.2trn in June 2020, indicating an 9.5% growth.
Its assets also grew by 9.8% driven by an increase in loans and advances amounting to UGX 3.8 trillion compared to UGX 3.4 trillion in June 2020.
SUHL earned UGX154.9 billion in Profit after tax (PAT) representing an impressive 21.5% growth from the same period last year.
Growth in PAT was mainly driven by strong growth in trade revenue which accounted for UGX 37.5 billion as well as better management of loan impairments, which reduced by UGX 11.7 billion as compared to the same period last year.
The company remains well capitalised above the minimum regulatory requirement, ensuring that it is in a strong position to continue financing the private sector through the second half of the year.
Apart from Stanbic Bank Uganda Limited, other SUHL subsidiaries are: Stanbic Properties Limited; Stanbic Business Incubator Limited; FlyHub Uganda Limited, and SBG Securities Uganda Limited. The creation of the holding company corporate structure started in 2018 and was completed in 2020.
Delicate balance
Andrew Mashanda, the Chief Executive for Stanbic Uganda Holdings Limited said, “The first six months of 2021 have been quite challenging especially with the second wave of Covid-19.Businesses and individuals have felt the impact of the pandemic and as an institution we have done much to support our customers, our staff, and communities through this unprecedented period.
“Despite the attendant challenges, we waded through, to post what our shareholders will appreciate as resilient performance, with good growth across all key performance indicators. Our Return on Equity stood at 23.2% up 1.6% year on year. This strong performance was led by our anchor and largest subsidiary, Stanbic Bank Uganda limited (SBUL).”
Commenting on the Bank’s performance, Anne Juuko, Chief Executive Stanbic Bank Uganda said, “We saw significant growth in our small and medium enterprises segment as we continued to support them through this challenging period. Overall, through our financing to boost private sector growth, we saw loans and advances […]
