Stanbic Bank To Payout Shs60bn In Dividends

Stanbic Bank shareholders have approved a Shs60bn payout as dividends at their Annual General Meeting held on 10th May in Kampala.
This represents a 50% increment from the Shs40bn paid in 2015 and is equivalent to Shs 1.17 dividend per share, up from Shs0.78 the previous year.
Opening the AGM with over 400 shareholders which was one of the best attended since the bank went public over 11 years ago, the Board Chairman Japheth Katto said, “2016 was yet another profound year for Stanbic Bank where we continued to ensure the sustainable growth of the Bank and post impressive results despite the global and local economic headwinds. A central factor to our sustainability is our commitment to support and enable the transformation of the lives and businesses in the communities where we operate. To that end Stanbic invested more than 1.1 billion shillings on CSI initiatives in 2016 a 15% increment from 2015.”
He added: “When arriving at the proposed pay-out figure of 60 Billion UGX the board took into account projected business growth and investment prospects and regulatory capital adequacy requirements. This is having considered the current and projected future financial position of the Bank and impact of stress testing of the capital adequacy position of the Bank to ensure there are no adverse effects on capital requirements over the foreseeable future.” The dividend was passed unanimously by all the members.
Presenting an overview of the operating environment and the banks key performance, Patrick Mweheire, the Stanbic Chief Executive revealed, “Our record profit after tax of Shs191 billion was achieved despite the challenging market environment with rapidly deteriorating asset quality across the sector. Our 2016 revenue of Shs 643 billion was a balanced mix of net-interest income and non-interest revenue, reflecting the strength of our diversified business model. Our focus on customers paid off as more of them entrusted us with their deposits and opportunities to serve more of their financial needs, as a result, customer deposits reached a record UShs 3.1 trillion for 2016, up a record 25% from the prior year in an industry that grew an average of 9.5%. Total customer loans and advances completed the year at UShs 2.0 trillion just up 3% from 2015 which was a deliberate part of our strategy in a high-interest rate environment.”