Anne Juuko, Chief Executive of Stanbic Bank Uganda (PHOTO/Courtesy). KAMPALA – Stanbic Bank Uganda (SBU) has paid out a total of UGX 110 billion to its shareholders for financial year 2019 as it continues to mitigate the economic challenges brought about by the Covid-19 Pandemic.
At the peak of the pandemic last year, Bank of Uganda (BoU) directed supervised financial institutions to defer all discretionary payments, including dividends, until they can demonstrate a solid financial base.
After confirmation by BoU that the Stanbic bank was adequately capitalized, it was given a go ahead to pay dividend for the year 2019.
On December 29th, 2020 the Board of Directors Stanbic Uganda Holdings Limited, the parent company of Stanbic Bank Uganda Limited approved a final dividend payout of UGX 2.15 per share.
Speaking at a media briefing held at Kampala Serena Hotel, Anne Juuko, the Chief Executive of Stanbic Bank Uganda said that despite a very challenging season, the bank was able to wade through and ensure it keeps its promise to pay its shareholders of ensuring they consistently receive a return on their investment.
She explained that in 2018, their shareholders received UGX 97.5 billion in dividends. Juuko emphasized that despite the slowdown in business activities, raising trade deficits and increased Non-Performing Loans, they have decided to increase the dividends pay-out by 13% to give back the trust placed in them by their shareholders.
“Bank of Uganda projections show the economy will grow by three to 3.5 percent in 2021 and 6% to 10% by 2023. This will be as a direct result of the rollout of Covid-19 vaccines; implementation of the African Continental Free Trade Agreement (AfCTFA); an expected rebound in tourism; improvement in global investment and the continued recovery in exports due to a revived strength in foreign demand,” Juuko said.
Juuko added that; “However, on a cautionary note, commodity and tourism dependent economies remain vulnerable over the next 12 to 18 months. Uganda also has the highest number of active cases of Covid-19 in the region and an outbreak of a second wave cannot be ruled out.”
The BoU’s Central Bank Rate has remained fixed at 7% for the ninth month in a row into February 2021 and this trend is projected to continue in 2021.
Consequently, commercial bank lending rates have also fallen from 13.8% in January 2021 to 12.3% in February with Stanbic dropping its average prime lending rate from 18% to 16.6% (1.4%) […]