Stanbic poised to announce 12 digit half-year profit

July 22, 2016 in Business, Companies, Finance, Financial Services by Editor

Kampala, July 22 – When Stanbic bank announces its half year result mid-August, the numbers will not just reaffirm its position as Uganda’s largest lender but also herald a positive turn for an industry, that in 2015 endured one of its most difficult years.

According to sources familiar with the lender’s performance, profit for the first six months is expected to be around 73 percent of the full year figure for 2015, while non-performing loans are also in decline.

Stanbic topped industry performance when it announced an Ushs 150.8 billion profit for 2015, although stockholders earned a modest dividend payout as the bank stocked up its war chest to meet new capital reserve requirements for systematically important banks.

Shareholders will this time round be happy to learn that the initiatives the bank undertook have borne fruit on key metrics such as the cost to income ratio which has moved further south to around 52percent.

Stanbic’s performance is likely a mirror of improved performance across the board as lenders previously weighed down by negative loan books move to clean up toxic assets and credit uptake picks up on the back of a 200basis point reduction in the CBR since April.