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‘We are going to pay your dividends’

‘We are going to pay your dividends’

Anne Juuko, Stanbic Bank Uganda Chief Executive speaks at the AGM on June 02 at Serena Hotel. The meeting was held virtually for shareholders in line with COVID-19 prevention measures. Stanbic Bank top executives tell shareholders as it rolls out offerings for women, targets oil and gas opportunities Kampala, Uganda | JULIUS BUSINGE | Whereas many businesses reported reduced earnings for the year 2020, others like Stanbic Bank Uganda Ltd, have assured their shareholders that they will earn their profits (dividends) for the year once Bank of Uganda allows them to do so.

Speaking at the Bank’s Annual General Meeting held virtually in Kampala on June 02, its Board Chairman, Japheth Kato, said: “We have been seeking approvals; we will continue to visit and talk to the regulator until we pay your dividends.”

The amount in question is Shs95bn. The AGM was attended by 3, 029 shareholders, that account for approx.84% shareholding of Stanbic Uganda Holdings Limited.

Many experts have agreed that the year 2020 was challenging following the outbreak of the coronavirus pandemic that affected multi-sectoral operations and economies worldwide.

As a result, Bank of Uganda directed commercial banks to differ payment of dividends until such a time it is convinced that such payments would not jeopardise the overall capital base and operations of banks.

Uganda’s economy shrank to GDP growth rate of 2.9% compared to 6.8% in FY2018/19, spurred by the impact of lockdown measures to prevent the spread of COVID-19.

BoU kept its policy interest rate, the Central Bank Rate at around 7% to manage interest rates in addition to waiving limitations on the restructuring of credit facilities and providing exceptional liquidity assistance to financial institutions that required it.

“Despite the challenges, I am pleased to report that Stanbic Uganda demonstrated its resilience by delivering a solid financial performance driven by a strong focus on our strategic value drivers,” Kato said.

Appointed in March 2020 as Stanbic Bank Uganda Ltd Chief Executive, Anne Juuko said, through-out 2020, Stanbic Bank Uganda re-designed its business priorities and processes to meet clients’ needs thereby ensuring continuity of both their businesses as well as the economy at large.

“…as a direct result, the customers continued to trust us with their businesses,” Juuko said, leading to a 16.3% growth in client deposits.

Meanwhile, net loans and advances equally saw an increase of 26.8% year on year, closing at Shs3.6 trillion, despite the drastic drop in business activity during the second and […]

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