Stanbic Uganda posts Ush127b half-year profit despite COVID 19 effects

Stanbic Uganda posts Ush127b half-year profit despite COVID 19 effects

Stanbic Bank Uganda (SBU) demonstrated resilience during the first half of 2020, despite a difficult operating environment brought on by the Covid-19 pandemic and the resulting global economic downturn.

Patrick Mweheire, the Chief Executive, Stanbic Uganda Holdings Limited (SUHL) to which SBU is a subsidiary said, “Despite a challenging first half, Stanbic Uganda has demonstrated resilience as highlighted by the first six months performance.

“We have also made significant strides towards achieving the strategic objectives as set out in 2018 of creating the opportunity for Stanbic to venture into other non-banking services that would enhance the value of products and services provided to our different stakeholders and ultimately increased shareholder value.”

“Among the key achievements, SUHL successfully established two new subsidiaries: Stanbic Properties Uganda Limited, that will hold and manage the real estate portfolio and Stanbic Business Incubator Limited, which will manage enterprise development on behalf of the holding company and its subsidiaries.

“This brings the total of subsidiaries under the holding company to three, in addition to the Bank which was its first subsidiary,” he said.

Speaking to the Bank’s performance as the largest subsidiary of Stanbic Uganda Holdings Ltd, Anne Juuko, Stanbic Bank Uganda’s Chief Executive said, “Stanbic’s performance in this first half has shown the banks resilience and commitment to implementing a robust strategy in the current economic conditions. Customer deposits grew by UGX 1.1 Trillion a 27.3% year on year growth.

“This growth was enabled by our strong client ecosystem engagement and simplifying client on-boarding. Loans and advances increased by UGX 661 billion, 24% year on year growth registered across our varied client segments on working capital and term financing.

“We reported Profit After Tax of UGX 127.7 Billion 4.9% down from UGX 134.1 Billion the previous year, due to the impact of Covid-19 Pandemic on client business.”

The first Covid-19 case was reported in Uganda towards the end of March. The government subsequently announced a series of national lockdowns and other countermeasures to limit the spread of the disease. The economy was adversely affected by the restrictions on movement and closure of businesses up until the end of May when the most recent lockdown was lifted.

Referring to Stanbic’s response to the situation, Juuko said, “Amongst our priorities, we offered credit relief programmes to business and personal customers tailored to meet their needs and their businesses are sustained and the impact on the economy is minimized.

In addition, we waived all charges on our […]

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