Stanbic, Uganda’s leading bank recorded slow growth in the first half of 2018, according to the results released by the financial institution at Serena Hotel on Wednesday morning.
The bank’s profit after tax increased by Shs1bn to Shs96bn in June 2018, slightly up from Shs95bn in June 2017. The bank’s total revenue grew by about 2% to Shs321bn in June 2018, up from Shs314bn in June 2017.
Patrick Mweheire, the Chief Executive Officer at Stanbic Bank Uganda said the bank had a ‘tough’ first quarter, but picked up in the second quarter. He added that the bank has momentum for growth going into the second part of the year.
The bank’s loans advanced to customers increased to Shs2.6 trillion in June 2018, up from Shs2 trillion the previous year.
Customer deposits also increased by 16.2% to Shs3.75 trillion, up from Shs3.22 trillion the previous year, while total assets grew to Shs5.1 trillion, up from Shs4.8 trillion the previous year.
“This means we are in a much position to support major development projects and further facilitate economic growth,” said Mweheire.
He revealed how banking industry is fast-changing. He noted that activity at the bank’s branches has greatly reduced as internet and other innovations like agency banking take centre stage.
For example, only 23% of the bank’s transactions were carried out at its 70 branches spread across the country in the first six months of 2018, while 7.8% of the transactions were carried out through agency banking which the bank launched three months ago.
The bank has so far signed 800 agents. 9% of the transactions were carried out through internet banking.
“Branches will continue to handle high value or complex transactions,” Mweheire said.
He added that they are optimistic the economy will continue to grow due to expansionary policies of the Central Bank and improved private sector activity.
