Higher deposits, lending, propel Stanbic Uganda to a stellar 2019 finish line

March 27, 2020 in Business, Companies, Financial Services by Editor

As he takes the final bow out of the Ugandan unit, Patrick Mweheire leaves an enviable record

Stanbic’s Uganda unit earned an industry leading UGX259 billion in profit for 2019 trading period on the back of a surge in deposits and lending. As a result the board has approved a payout of UGX129 billion in dividends.

Outgoing Chief Executive Patrick Mweheire, reported a 21pc increase in deposits and a 14pc expansion in the loan book. “We delivered another great performance and were able to improve on all our key performance goals,” Mweheire said during an earnings call.

“We grew our deposits by 21pc as more customers trusted us with their money, our loans and advances grew by 14pc equating to UGX 344 billion of new credit to key sectors of the economy such as manufacturing, agriculture and personal lending,” he added. He revealed that the bank accounted for 40pc of new lending by the industry during 2019.

Revenues expanded 20pc YoY, sprinting past UGX 800 billion. The income was evenly distributed between lending and non-lending streams.  Profit after tax grew 20pc to UGX 259 billion compared to UGX 215 billion posted for 2018.

Chief Finance Officer Sam Mwogeza, said the bank’s total assets expanded by UGX 1.2 trillion or 23.2pc to reach UGX 6.6 trillion. That compares with UGX 5.4 trillion in 2018. The bank also went a rung up in market share.

“Loans and advances grew by 14pc or UGX 344 billion registering UGX 2.8 trillion in 2019 up from UGX 2.5 trillion in 2018. This also resulted in a market share gain for the bank to 20pc from 19pc in 2018,” Mwogeza said.

The ratio of Net Interest to income improved from 56pc to 44pc, reflecting significant income diversification, he explained.

Commenting on the future outlook, Anne Juuko, the new Captain at Stanbic Bank Uganda, pledged continuity. “We shall continue to build on the successes achieved. Our customers are the reason we are here, and our aim is to continue to provide the right solutions for them by listening to their needs and ensuring we create what is required to help them grow,” she said.