Samuel Mwogeza, Chief Financial Officer Stanbic continues to support clients as the economy recovers Kampala, Uganda | THE INDEPENDENT | Stanbic Bank Uganda (SBU) has paid out a total of Sh110 billion to its shareholders for financial year 2019, continuing a long track record of returning consistently positive earnings despite prevailing challenges.
At the peak of the Covid-19 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 bank was adequately capitalized, it gave the bank a go ahead to pay dividend for the 2019. On December 29 th , 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 said, “In 2018, our shareholders received UGX 97.5 billion in dividends. Despite the slowdown in business activities, raising trade deficits and increased Non-Performing Loans, we have decided to increase the dividends pay-out by 13% to give back the trust placed in us by our shareholders.” Anne Juuko, Chief Executive of Stanbic Bank Uganda.J “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.
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 […]
