Stanbic Bank Uganda Chief Executive, Anne Juuko
Stanbic Uganda has announced 11% growth in 2021.
Announcing 2021 figures at Sheraton Hotel in Kampala on Wednesday, Ronald Mataka, the Ag. Chief Finance Officer, said that despite the tough business environment, Stanbic managed to post a “decent profit after tax which grew by 11% to close the year at Shs 269 billion from Shs 242 billion the previous year”
Last year, Stanbic Bank Uganda paid Shs 84 billion in taxes compared to Shs 77 billion the previous year.
Bataka said the growth was largely influenced by trading revenue.
However, he also revealed that the average return on assets declined to 3.1% in 2021 from 3.2% the previous year, compared to the pre-covid19 growth of 4.3%.
Mataka noted that Sustained engagement of clients saw non-performing loans drop to 4.6% from 4.7% the previous year and saw our provision for the same, reduce to Shs 70 billion from Shs 92 billion in 2020.
Spencer Sabiiti, Chief Executive Stanbic Properties Uganda, said that in 2021, Stanbic Properties’ revenue grew by about 36%.
He added that “We are now developing our real estate platform which will be one of its kind in Uganda which will help us further this revenue growth.”
With our real estate platform, he noted that users will be able to sell properties across the country.
“The diaspora community will be able to know what’s happening in the country and purchase real estate with ease,” Sabiiti said.
Tony Otoa, the Chief Executive, Stanbic Incubator, says that “2021 showed us that growth is possible and that we can do so many things in unprecedented times like the pandemic that happened.”
“When we set up the incubator in 2018, people wondered what the bank was thinking. But as many people are jumping onto the oil & gas opportunity right now, we are happy to be part it the story that made it possible,” Otoa said.
Some of the achievements, the bank attributes to the digitization of services.
According to Joel Muhumuza, Chief Executive, Flyhub, “We are peculiar and for a reason.”
Muhumuza said: “We want to think beyond what the current status is. We are trying to see what the future is meant to be. Flyhub is looking to digitize by automating the businesses and the different sectors which the bank is providing financial services.”
SBG Securities Uganda Limited Chief Executive Joram Ongura said thatin 2021, SBG led the largest digitalized IPO in Africa.
Therefore, he said: “digitalization is very key to us as it enables us to tap into Ugandans across the country in a cost-efficient way of doing business.”
Commenting on the 2021 performance, Stanbic Bank Uganda Chief Executive Anne Juuko said that the bank “stayed true to our purpose in 2021.”
“Uganda is home. We drive her growth,” Juuko said.
According to Juuko, Stanbic Bank Uganda made credit available to critical drivers of growth hence supporting businesses create new employment opportunities and keep Ugandans in their job.
Business Focus understands that these drivers included trade, manufacturing and agriculture.
For instance, Stanbic Bank made credit available through Savings and Credit facilities (SACCOs) at 10% interest with members of the SACCO borrowing at not more than 12% interest.
In 2021, Stanbic Bank Uganda lent Shs 290 billion to the trade sector, the second-highest employer in Uganda, Shs 225 billion in individual lending, Shs 223 billion to building and construction and Shs 218 billion to manufacturing.
According to Juuko, in 2021 the bank lent Shs 150 billion to agriculture sector, the highest employer in Uganda with agricultural SACCOs being a top factor, helping drive affordable access to credit by Ugandan farmers.
“We are very excited to be going back to our roots of being the people’s bank. Providing affordable financing to SACCOs means providing affordable financing to a majority Ugandans, and that’s part of being the people’s bank,” Juuko said adding that, “We sustained efforts to manage asset quality through proactive engagement of customers, restructured loan repayments and waived or suspended interest repayment on loans to client businesses in sectors most hit by the Covid-19 pandemic.”
Looking ahead, Andrew Mashanda, the Chief Executive Stanbic Holdings says that 2022 presents mixed expectations but that “prospects are brightening with more countries across the globe opening up their economies as the pandemic subsides.”
