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Stanbic bank profit up by 12%

KAMPALA – Uganda’s biggest bank by assets Stanbic saw its profit before tax rise up by 12% to Shs 359.6 billion in 2021 from Shs 320.7 billion previously.

The lender said in a report published in newspapers customer deposits were up mildly to Shs 5.7 trillion from Shs 5.5 trillion in 2020 – a 5% rise.

The season for banks to report for the financial year just ended as Ugandan banks report for the calendar year that ends on December 31. The deadline for the country’s commercial banks to report is April 31, 2022.

Stanbic Bank wrote off bad debts worth Shs 63 billion in 2021, up by 31% from the Shs 48 billion written off in 2020.

“In a year that saw the economy slow down significantly due to effects of the Covid-19 pandemic, we played our part, making credit available to critical drivers of growth hence supporting businesses, new employment opportunities and keep Ugandans in their jobs,” the bank’s Chief Executive, Anne Juuko said in a statement.

They saw a marked reduction in non-performing loans. These came down to Shs 151.2 billion in 2021 from Shs 219 billion in the year before.

The bank said it lent out Shs 3.7 trillion in 2021, slightly better than the Shs 3.6 trillion taken by borrowers in 2020.

In a direct boost to the economy, the bank said it had lent Shs 290 billions to the trade sector; Shs 225 billions to households; Shs 223 billions to building and construction, while Shs 218 billion went to the manufacturing sector.

Agriculture, which employs more than 60% of the rural population and contributes more than 25% of the country’s economy got Shs 150 billion from Stanbic Bank, as rural cooperatives sought cash to lend to their members at low rates.

Transport and communication got Shs 122 billion as the country finally reopened its economy after two rolling lockdowns.

Assets at Stanbic Bank, which was once state-owned before being finally sold to South Africa-based Standard Group, grew to reach Shs 8.7 trillion in 2021 from 2020’s Shs 8.6 trillion.

The bank expects to perform even better in the current year.

“Looking ahead, 2022 presents a mixed bag of expectations especially on the external front mostly informed by the Russia-Ukraine conflict and rising fuel prices. However, prospects are brightening with more countries across the globe opening up their economies as the pandemic subsides,” Stanbic Uganda Holding Chief Executive  Officer Andrew Mashanda said in printed remarks accompanying the report.

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