Stanbic Bank has released its full year financial results for 2018 indicating strong and solid performance.
The bank recorded Shs215bn net profit in 2018, up from Shs200bn in 2017. This represents a growth of 7.3%.
Announcing the results at Serena Hotel, Kampala on Thursday morning, Patrick Mweheire (in featured photo), the Stanbic Bank Chief Executive attributed the record profit to the growth in the bank’s revenues, efficiencies under cost control and credit risk.
The bank’s total income grew to Shs661bn in 2018, up from Shs636bn in 2017.
Loans advanced to customers grew by 17.6% to Shs2.50 trillion in 2018, up from Shs2.13 trillion a year earlier. This is attributed to private sector credit growth around sectors like manufacturing, trade, agriculture and real estate.
Customer deposits also grew by 7.5% to Shs3.89 trillion in 2018, up from Shs3.62 trillion recorded a year earlier.
“This led to a strong market share position of approximately 20%,” Mweheire said.
The bank’s total assets almost remained unchanged, reducing slightly to Shs5.31 trillion from Shs5.40 trillion in 2017.
Mweheire explained that the bank heavily invested in a customer centric model of operation. This, he said, enabled the bank to create innovative solutions and channels which have helped improve convenience for the customers while bringing down transaction costs.
“Digital channels have enabled us to see overall transaction growth of over 25% year on year basis with transactions on these alternate channels growing by over 40%. At the end of 2018, approximately 80% of our transactions were being done on our alternate digital channels,” he explained.
Commenting on the bank’s key performance indicators, Sam Mwogeza, the Stanbic Chief Financial Officer revealed that the bank reported improvement across all key financial metrics.
“Our shareholders will be pleased to hear that based on bank’s strong performance, the dividend increased by 8% to Shs97.5bn with the dividend pay-out ratio increasing to 45% supported by strong profitability and capital position,” Mwogeza said.
