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Stanbic Bank Posts Shs242bn Profit, Provisions For NPLs Increase By 110% on COVID-19 Impact

Anne Juuko, the Chief Executive at Stanbic Bank Uganda Ltd

Stanbic Bank net profit fell by 6.8% in 2020 to Shs241.68bn, down from Shs259.094bn recorded in 2019. The decline in profit has been attributed to COVID-19 that affected several companies and the economy at large.

According to the bank’s financial results for the year ended 31st December 2020 released today, Stanbic saw its customer deposits grow from Shs4.7 trillion in 2019  to Shs5.5 trillion in 2020, which the bank says  further supported new credit to key sectors in much need of support especially during the peak of the pandemic.

Net loans and advances increased by 26.8% year on year from Shs2.9 trillion to Shs3.6 trillion in 2020 as more clients acquired loans to sustain their businesses.

 However, total asset quality deteriorated year on year due to the impact of covid-19 pandemic on client businesses. The bank’s provisions for non- performing loans (NPLs) grew by 110% from Shs43.5 billion  in 2019 to Shs91.8 billion in 2020.

The bank’s total assets increase3d to Shs8.57 trillion in 2020 from Shs6.65 trillion recorded a year earlier.

Commenting on the results, Anne Juuko, the Chief Executive at Stanbic Bank Uganda Ltd said Stanbic Bank’s performance has been commendable despite a difficult year riddled with challenges brought on by the pandemic.

“The Bank has shown resilience and sustained momentum as it executed on its strategy,” Juuko said in a statement.

The bank has proposed dividends of Shs95bn, down from Shs110bn in 2019.

2021 Priorities

“Our aim this year is to continue to deliver on our promise to make dreams possible for our clients,” Juuko said, adding that the bank’s priorities will include transforming client experience.

“One of the ways  we are improving the client experience is through our digital loan offering, where  customers can now apply for a loan online  or on their mobile phones and get the loan  in under five minutes. By creating greater  efficiency, our customers save time and  we make it easier for them to access the  financial support they need,”  she said.

The bank will also prioritize managing its risks.

“Ensuring that the  business has a robust risk management framework that ensure we are doing  business the right way to enhance the value our client experience and enjoy,” Juuko said.

Sustainability will be another key priority for the bank.

“The Bank is committed  to the implementation of the Social, Economic and Environmental (SEE) priorities which aim to deliver inclusive,  enduring and environmentally sustainable  value to our shareholders and to the  societies and economies we serve,” she said.

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Taddewo William Senyonyi
https://www.facebook.com/senyonyi.taddewo
William is a seasoned business and finance journalist. He is also an agripreneur and a coffee enthusiast.

One thought on “Stanbic Bank Posts Shs242bn Profit, Provisions For NPLs Increase By 110% on COVID-19 Impact

  1. Mubiru derick

    More partnership

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