Anne Juuko (left), CE Stanbic Bank having a light moment with a customer shortly before unveiling the 2022 financial results at Serena Hotel on March 29.
Stanbic Uganda paid Ush. 272 billion in tax as it announced robust performance for 2022 with gross revenue of one trillion shillings and Profit After Tax of Ush. 366 billion representing year-on-year growth of 33 per cent.
According to the company’s financial statements, 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 UShs 3.61 per share amounting to UShs 185 billion, in addition to UShs 50 billion that was paid last yaer. This final dividend will be paid upon receipt of regulatory approval.
The lender also collected Ush. 7.5 trillion on behalf of government representing 33 per cent of total remittances by banks. Customer deposits grew by 6.8 percent year on year to Ush 6.1 trillion from Ush 5.7 trillion; net loans and advances rose to Ush. 4.1 trillion from Ush.3.7 trillion while total assets grew by 3.9 percent to Ush. 9.0 trillion.
Andrew Mashanda, Chief Executive of Stanbic Uganda Holdings Limited (SUHL) said, “This performance shows the resilience of our business and should reinforce the confidence of our shareholders in our ability to continue growing their value. Despite the prolonged uncertainty of the global and local economy, we closed the year with robust performance, and grew our shareholder value with a Return on Equity of 21.6 per cent well above our 20 per cent target—an improvement from 19.4 percent in 202.”
This growth, he added was mainly driven by SUHL’s anchor subsidiary, Stanbic Bank Uganda and noted that the newer subsidiaries which have been in operation for two years made significant strides towards breaking even, the challenging operating environment notwithstanding.
“Stanbic Properties Limited remains profitable and is executing various projects geared towards revamping our real estate portfolio. FlyHub received its first revenues during the year and continues to pursue more opportunities as businesses explore ways to become more efficient through automation while our SBG Securities revenues were impacted largely by a drop-in capital markets activity, we remain optimistic about its potential as the diversification into asset management is implemented. 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,” added Mashanda.
2 million Ugandans reached through SACCOs
Anne Juuko, Chief Executive of Stanbic Bank Uganda said the lender manifested its purpose of driving Uganda’s growth in ways that directly and indirectly benefited millions of Ugandans and engineered the economic recovery of customers from effects of the Covid-19.
She added that despite the emerging challenges in the economy, the bank is pleased with its contribution towards economic recovery success stories of its customers registered in 2022, most of which are a result of sustained dividends of Covid-19 interventions implemented between 2020 and 2021.
“As a result of the economic recovery of our customers, we saw a 9.8 per cent growth in demand for new credit in 2022 with the volume of disbursed loans increasing to 77,819 worth Ush. 4.0trillion from 63,639 approved applications worth Ush. 3.7 trillion disbursed in 2021,” said Juuko.
The bank saw a 30 per cent increase in the volume of transactions 2022 and grew customer base to over a million through its combined traditional bank accounts and FlexiPay, this, attributed to its investment in financial inclusion efforts.
Through its Savings and Credit Cooperatives (SACCO) finance and capacity building programme, Stanbic Bank has partnered with over 6100 SACCOs with a combined membership of nearly 2 million Ugandans across the country.
“We are happy to note that these SACCOs have accessed affordable credit through our multi- stakeholder Economic Enterprise Restart Fund (EERF) to the tune of Ush. 40 billion at as low as 10 per cent per annum for those involved in the agricultural space. We have also invested in their digitalisation as well as governance capacity to ensure that they serve their members, efficiently, like ‘micro Stanbic banks’ in their respective areas,” said Juuko.
The bank further reported that through its Stanbic for Her programme launched in 2022 with support from the International Finance Corporation (IFC), over 18,500 women received training in the fundamentals of bookkeeping, tax reporting, and accounting, giving them the confidence to run their businesses.
“It gives us great pleasure to also report that over 11,000 small businesses have opened accounts with us in the past year, and that over 1,800 of them have already benefited from access to affordable credit at rates as low as 15.5 per cent, to the tune of over Ush. 30 billion,” said Juuko.
272 billion paid in tax, 7.5 trillion collected for government
Ronald Makata, Stanbic Bank’s Interim Chief Finance Officer said in the 2022 the bank significantly supported the government’s efforts to mobilise tax revenues in line with thelender’s purpose of driving Uganda’s growth.
“In 2022, we paid a total of Ush. 272 billion in taxes, making us the biggest taxpayer in the country’s banking sector. We collected another Ush. 7.5 trillion on behalf of government by enabling taxpayers to remit through our expansive channels network, representing 33 per cent of total remittances to government by the entire banking industry,” said Makata.
In terms of lending, Stanbic reported that the agriculture sector remained in the top five recipient sectors of the bank’s credit in 2022, accounting for Ush. 437 billion, and this is in line with the country’s key growth drivers.
The other top recipients of Stanbic Bank’s lending in 2022 were households (retail customers) accounting for Ush. 1.04 trillion, trade at Ush. 663 billion, real estate at Ush. 573 billion and transport/telecommunications at Ush. 417 billion.
“As a result of the economic recovery of our customers, we saw a 9.8 per cent growth in demand for new credit in 2022 with the volume of disbursed loans increasing to 77,819 worth Ush. 4.0trillion from 63,639 approved applications worth Ush. 3.7 trillion disbursed in 2021,” said Juuko.
The bank saw a 30 per cent increase in the volume of transactions 2022 and grew customer base to over a million through its combined traditional bank accounts and FlexiPay, this, attributed to its investment in financial inclusion efforts.
Through its Savings and Credit Cooperatives (SACCO) finance and capacity building programme, Stanbic Bank has partnered with over 6100 SACCOs with a combined membership of nearly 2 million Ugandans across the country.
“We are happy to note that these SACCOs have accessed affordable credit through our multi- stakeholder Economic Enterprise Restart Fund (EERF) to the tune of Ush. 40 billion at as low as 10 per cent per annum for those involved in the agricultural space. We have also invested in their digitalisation as well as governance capacity to ensure that they serve their members, efficiently, like ‘micro Stanbic banks’ in their respective areas,” said Juuko.
The bank further reported that through its Stanbic for Her programme launched in 2022 with support from the International Finance Corporation (IFC), over 18,500 women received training in the fundamentals of bookkeeping, tax reporting, and accounting, giving them the confidence to run their businesses.
“It gives us great pleasure to also report that over 11,000 small businesses have opened accounts with us in the past year, and that over 1,800 of them have already benefited from access to affordable credit at rates as low as 15.5 per cent, to the tune of over Ush. 30 billion,” said Juuko.
272 billion paid in tax, 7.5 trillion collected for government
Ronald Makata, Stanbic Bank’s Interim Chief Finance Officer said in the 2022 the bank significantly supported the government’s efforts to mobilise tax revenues in line with the lender’s purpose of driving Uganda’s growth.
“In 2022, we paid a total of Ush. 272 billion in taxes, making us the biggest taxpayer in the country’s banking sector. We collected another Ush. 7.5 trillion on behalf of government by enabling taxpayers to remit through our expansive channels network, representing 33 per cent of total remittances to government by the entire banking industry,” said Makata.
In terms of lending, Stanbic reported that the agriculture sector remained in the top five recipient sectors of the bank’s credit in 2022, accounting for Ush. 437 billion, and this is in line with the country’s key growth drivers.
The other top recipients of Stanbic Bank’s lending in 2022 were households (retail customers) accounting for Ush. 1.04 trillion, trade at Ush. 663 billion, real estate at Ush. 573 billion and transport/telecommunications at Ush. 417 billion.
