• Stanbic Bank Uganda
  • XUGA:SBU KAMPALA/Uganda
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  • About the Company
  • Stanbic Bank Uganda is part of Africa's leading banking and financial services group Standard Bank. Stanbic Bank is the largest financial institution in Uganda with over 71 branches across the country

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Name Title Officer Since
Mr Moses Dhizaala Chairman 2015
Mr B.S Dhaka Managing Director 2015

KEY STOCK DATA

  • Profits
  • $63.11M
  • P/E Ratio
  • 6.1
  • Return on Equity
  • 17.10%
  • Dividend Yield
  • 2.37%
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Revenue per year in US $
Revenue is the money a company recieves for selling its goods or providing services. The higher the revenue, the better the company is performing.

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Kenya is set to benefit from the adherence to the Supreme Court ruling that nullified the Presidential results.

According to economic experts, the decision will enhance political predictability for investors boosting Kenya’s attractiveness as an investment destination.

Cytonn Investments Chief Executive Edwin Dande says the decision has raised the country profile with regard to constitutionalism, the rule of law and has reduced the country’s political risk.

“One of the best outcomes about this election petition is that it shall increase the size of ugalis on our tables. Raila having now gone to all courts – high court, court of appeal and Supreme Court and accepted their rulings, I think the probability of or room for ever going to the streets again is radically reduced. In short risk perception goes down, asset prices go up, which means more ugalis on our tables. We are all winners,” he said.

President Kenyatta expressed dissatisfaction with the ruling but said he respects the decision of the court that ordered the Independent Electoral and Boundaries Commission to conduct a fresh presidential election within 60 days.

Stanbic’s Bank Purchasing Managers Index for August is of the view that despite the immediate losses that were experienced after the supreme court decision, the response by the political class will likely attract foreign investors.

“The decision by the court is indeed a reflection of Kenya’s strengthening institutions and will certainly appease the foreign investor community,” the survey said.The decision, which caught many by surprise, saw investors’ wealth at the Nairobi Securities Exchange […]

Full article at allafrica.com

Nakumatt is in talks with banks to restructure a Sh8 billion loan including lengthening the repayment period to offer relief to the ailing retailer.

The retail chain’s management and the lenders on Tuesday met Trade Principal Secretary Chris Kiptoo to brief him on the talks.

“The meeting was just to brief us about the progress. We are hoping that by next week they will have reached an agreement,” said Dr Kiptoo.

He added that the Government would not be giving the retailer any money but would continue to act as a mediator, not an active party in the talks.

The 10 banks in the list include major players Standard Chartered, Kenya Commercial Bank, Stanbic Bank, NIC bank, Barclays Bank and Diamond Trust Bank.

Others who may suffer losses if the retailer does not survive are Bank of Africa, Oriental, Habib Bank and Guaranty Trust Bank.KCB and DTB, which host the retailer’s Nakumatt Global card, declined to comment on the talks. Solid plan Nakumatt also said they would not like to comment on the restructuring until a solid plan was agreed upon. It, however, admitted on social media that the redemption of shopping loyalty points had been suspended.“The redemption is temporarily unavailable. We will inform you once it resumes,” Nakumatt said on its twitter account in response to a Mr Tsisaga Jumba.The restructuring process came as Central Bank of Kenya Governor Patrick Njoroge fired a warning shot at banks over loans that would go into default.

The quality of Chase Bank’s books is now a crucial make or break factor as the Central Bank of Kenya tries to play matchmaker between a buyer and the lender’s shareholders.

Weekend Business has learned that some of the bidders have opted to withdraw their bids, while some investors are holding back over the Small and Medium Enterprise bank.

SBM Holdings of Mauritius, which recently concluded the acquisition of Fidelity Commercial Bank, has withdrawn its bid for Chase Bank. “We looked at it and did not see the immediate value,” Moses Harding, advisor to the Board of Directors SBM Holdings, said.

SBM Holdings is among other investors such as Societe Generale of France, KCB Group, I&M Bank, Stanbic Bank and South Africa’s First Rand that recently made a bid to buy Chase Bank and its subsidiary, Rafiki Microfinance Bank.

The Port Louis headquartered bank has, however, said it had evaluated its position in Kenya and decided to withdraw the bid, opting to instead focus on growing Fidelity, which it has rebranded to SBM Kenya.

Mr Harding said while SBM was looking to grow both organically and through acquisitions in Kenya, it would in the initial period focus on building systems in the Kenyan operation.

A law capping interest rates continues to pile pressure on Kenyan banks, with at least three banks posting a drop in earnings in the first quarter of this year.

NIC Bank, Stanbic Bank and Kenya Commercial Bank (KCB) posted 3.9 percent, 9.3 percent and 1.9 percent decline in profit, with the performance attributed to the capping of loan rates.

Kenya introduced the law to cap interest rates in the third quarter of 2016, with the move aimed at deepening access to credit especially among small borrowers.

The rates were capped at 4 percent above the Central Bank Rate which currently stands at 10 percent. Banks, therefore, are currently charging borrowers a maximum of 14 percent, down from between 18 and 28 percent.

The result, however, is that commercial banks are reeling from the effects of the reduced earnings as the law leads to unintended outcomes, including layoffs and slow credit growth.

Financial results of the three banks released last week indicated the squeeze the banks are facing following the implementation of the law. KCB posted a 1.9 decline in core earnings per share to 14.4 billion U.S. dollars from 15 billion dollars.

Stanbic and NIC Bank have kicked off what is likely to be a “new normal” for banking industry, underpinned by reduced profitability.

The industry is grappling with a growing rate of loan defaults which started in 2015, amid interest controls to protect borrowers from high loan charges and tight regulations to enhance sound corporate governance.

Stanbic Bank on Friday became the second medium-sized lender to report a drop in net profit for three months through March 31, largely on rising bad debt and reduced interest earnings.

Stanbic’s profit after taxation slowed by 9.24 per cent to Sh1.08 billion from Sh1.19 billion it posted 12 months earlier.

Net interest earnings contracted by 12.23 per cent to Sh2.44 billion, the country’s eighth largest lender by market share said in a financial statement. The bank, however, advanced Sh11.81 billion, or 11.40 per cent, more loans to hit Sh115.37 billion in the first quarter of the year compared to the year before.

Non-performing loans over the period jumped by nearly a third, rising 29.73 per cent to Sh5.76 billion resulting in a 32.80 per cent rise in provisions to Sh1.66 billion. 

STANDARD Bank Group subsidiary, Stanbic has been named visa card champion for 2016 after nurturing a steady growth of its market share in the past year.

The bank claimed a market share of over 30 percent in the visa acquiring category resulting in their being named and awarded Visa Card Champion for 2016 by Visa International.

This comes on the back of the bank launching Point of Sale (POS) machines in the market in the last quarter of 2014 backed by innovative consumer campaigns to drive usage and ensure seamless convenience for customers.

The financial institution says it has made great strides in becoming a key player in the card acquiring market in just two years of market representation. Leaked Video Will Ruin Obama – Watch His Guilty Face At 0:33 Exclusive new video proves Obama’s presidency was totally invalid. See why here. pro.advanced-health.org

Jacqueline Malaba, the business development director for Visa International explained that two indicators were evaluated for them to come to the decision on choosing the visa card champion. “We considered card growth and payment volume growth in this category and Stanbic Bank was the market leader in both categories surpassing expected average growth rates. This made the Stanbic portfolio the best performing in the market,” she said.

Patson Mahatchi, the bank’s head of distribution and customer channels, said that the growth was testimony to the financial services institution’s quest to adhere to its core values.

Tanzania has asked Kenya to extradite former Stanbic Bank CEO Bashir Awale to face charges in the $600 million government bond bribery scandal, it has emerged.

Attorney General George Masaju has reportedly sought help from his Kenyan counterpart, Mr Githu Muigai, to bring back Mr Awale for questioning over the bribery scandal that rocked the final years of Jakaya President Kikwete’s government.

If extradited, Mr Awale will likely be joined in the case that has seen former Tanzania Revenue Authority (TRA) boss Harry Kitilya and two other prominent individuals charged and remanded since April, last year. Mr Kitilya, former Miss Tanzania Shose Sinare and Mr Sioi Sumari, all former officials of Stanbic bank, are languishing in jail awaiting hearing of their application for bail.

The three have been charged with money laundering, forgery, abuse of position, corruption, obtaining advantage and transfer of proceeds.

Yesterday, Kenyan media reported that President John Magufuli’s government wants Mr Awale to answer questions over the transaction of the deal in which he is said to have played a key role.

Kenya’s top 10 banks registered a 10.8 per cent growth in net earnings to Sh93.81 billion for the financial year ended December 31, 2016.

The growth was despite four of the lenders – Equity Bank, Barclays Bank of Kenya (BBK), Stanbic Bank and NIC Bank – registering a drop in profits after tax.

Kenya Commercial Bank (KCB), Equity Bank and Co-operative Bank remained the top three most profitable lenders respectively and also the only ones with double-digit-billions profits.

However, for the first time in over 10 years, Equity recorded a drop (5.9 per cent) in profits. Despite KCB Group recording a 0.5 per cent growth in profits, the slowest pace in seven years, KCB Bank saw its after-tax profit soar by 19.9 per cent to Sh19.78 billion.

At the same time, Co-operative Bank registered a 24.6 per cent growth in profit to Sh13.05 billion.

For the sixth consecutive year Stanbic Bank Uganda has won the best ‘ Primary Dealer Award ‘ beating off stiff competition from six other commercial banks.

The accolade is given on an annual basis to the financial institution that has excelled in executing its primary dealer mandate and is the culmination of a very rigorous annual appraisal process by Bank of Uganda.

Presenting the award at a ceremony held at the Central Bank of Uganda , Governor Prof. Emmanuel Mutebile acknowledged the key role Stanbic had played in the market especially for its participation in the primary auctions, market making capabilities, consistent pricing as well as timely market intelligence.

He also recognized the role played by all the other banks who are part of the primary dealer system. “I applaud the contribution of all the primary dealer banks towards the development of the government securities market and by extension the financial markets in Uganda.” Mutebile said in a press statement.

Accepting the award on behalf of Stanbic Bank, the Board Chairman Mr. Japheth Katto thanked the entire bank and in particular the global markets team for their sacrifice and dedication.

The Uganda Securities Exchange has rolled out an online trading window — Easy Portal — that offers investors opportunities for faster transactions at no fee to spur trading activity.

But a scarcity of equity listings and limited investor participation could work against the initiative.

Easy Portal directly helps investors to trade shares without hiring stockbrokers.

Stocks traded on the USE are charged a commission of 2.1 per cent that is shared between the stockbrokers, the bourse, the Capital Markets Authority and the Investor Compensation Fund, among other agencies.

To trade, investors will log in their Central Depository System account numbers, their national identification card numbers and view the prevailing stock prices before choosing trading options.

The trading window also contains an initial public offering (IPO) application, a critical aid for handling investor documents usually submitted during public equity offerings.Investor statements issued by this facility will be saved for a maximum of six years, the bourse said. However, investment costs tied to this trading portal could not be confirmed by press time.

Low IPO growth

IPO growth usually attracts more investors to stockmarkets and in turn, boosts trading activity as new investors seek to exploit fresh opportunities available at the bourse.

The low IPO growth at the USE can be traced back to 2012. While DFCU Ltd and New Vision Ltd were listed in and also recorded oversubscription of about 50 per cent, Stanbic Bank Uganda was listed in 2007 following a successful IPO that was oversubscribed three times, according to industry data.

Nevertheless, the bourse is exploring IPO opportunities among some government-owned financial institutions that possess reasonable growth forecasts.

However, sluggish growth evidenced in IPO subscriptions in recent times could impact investor uptake on the Easy Portal window, observers say.