Stanbic Bank Uganda (SBU) has paid out a total of UGX 110 billion to its shareholders for the 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, the 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 dividends for 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.”
“ 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 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 with Stanbic dropping its average prime lending rate from 18% to 16.6% (1.4%) thus saving customers borrowing in local currency at least Ugx 26bn in interest payments off a local currency book […]
