Stanbic shareholders to get Shs235bn as profits surge to record high

However, SBG Securities Ltd.’s revenues were impacted largely by a drop in capital markets activities

Kampala, Uganda | THE INDEPENDENT | Stanbic shareholders will get Shs 6.98 per share totalling Shs 235bn following a 33% growth in profits for the year ended December 31, 2022.

This is 1.7% higher than the dividends paid last year in which shareholders earned Shs 5.26 per share totalling Shs 50 billion.

“The directors have resolved to recommend to shareholders at the forthcoming annual general meeting, a final dividend for the year ended 31 December 2022 of Shs 3.61 per share amounting to Shs 185 billion, in addition to Shs 50 billion that was paid last year. This final dividend will be paid upon receipt of regulatory approval,” the lender said.

Financial results released on March.29 shows that the country’s largest lender recorded a surge in net profit from Shs 269bn in 2021 to Shs 357bn in 2022 driven by both interest and non-interest income.

However, the lender’s costs of operation increased by 3% to Shs 495bn citing inflation during the period under review.

“I am pleased with the bank’s robust performance in 2022, a year in which we registered notable progress on enabling the aspirations of our various stakeholders, including customers, shareholders, staff, government, and the community in which we live and work,” said Ann Juuko, the chief executive officer at Stanbic Bank.

Juuko said the lender recorded a 9.8% growth in demand for new credit in 2022 with the volume of disbursed loans increasing from 63,639 worth Shs 3.7trillion to 77,819 worth Shs 4.0trillion as a result of economic recovery.

The lender’s loans and advances surged from Shs 3.7 trillion in 2021 to Shs 4.0 trillion as deposits from customers grew by 7% to Shs 6.1 trillion.

Retail consumers took the lion’s share of the loans accounting for Shs 1 trillion, followed up by trade at Shs 663 billion, real estate at Shs 573 billion and transport and telecommunications at Shs 417 billion.

Agriculture, the backbone of the country’s economy, received Stanbic’s loans worth Shs 437 billion during the period under review.

Meanwhile, Stanbic Bank’s assets grew by 4% to Shs 9 trillion supported by huge customer deposits during the period under review.

Commenting on the new performance, Andrew Mashanda, the CEO of Stanbic Uganda Holdings Ltd, last year’s good performance is a testament to the resilience of the business.

“Despite the prolonged uncertainty of the global and local economy, we closed the year with a strong performance and delivered a return on equity of 22%, well above our target of 20% and an improvement from 19% in 2021,” he said.

Mashanda said Stanbic’s performance is underpinned by its banking subsidiaries that posted impressive results.

He said Stanbic subsidiaries which have been in operation for 2 years now, continued to make significant strides toward substantiality.

Mashanda revealed that Stanbic Properties remains profitable and is executing various projects toward revamping the real estate portfolio.

He said Flybub received its first revenue during the year and continues to pursue more opportunities as businesses explore ways to become more efficient through automation.

However, SBG Securities Ltd.’s revenues were impacted largely by a drop in capital markets activities.

“We remain optimistic about potential as the diversification into asset management is implemented,” Mashanda said.”

“Stanbic Business Incubator continued to execute on its mandate, as a beacon of SME capacity development in Uganda by directing supporting over 3000 small businesses for the period under review.”

Shs 272 billion paid in tax

Ronald Makata, Stanbic Bank’s Interim Chief Finance Officer said the bank supported the government’s efforts to mobilise tax revenues in line with the lender’s purpose of driving the country’s growth.

“In 2022, we paid a total of Shs272 billion in taxes, making us the biggest taxpayer in the country’s banking sector. We collected another Shs 7.5 trillion on behalf of the government by enabling taxpayers to remit through our expansive channels network, representing 33 per cent of total remittances to the government by the entire banking industry,” he said.