Why Stanbic Bank Uganda had a good 2016


Stanbic Bank Uganda, a member of the Standard Bank of South Africa is reporting 24.9% jump in its 2016 full year pretax profit.

The bank is reporting such successful trading year on the back of intense diversification which increased its non-interest income.

On a year on year basis, profit before tax rose to UGX53.9 billion (Ugandan shillings) which is approximately USD70.33 million in 2016, up from USGX203.3 billion in the year 2015.

Stanbic Bank Uganda said it has diversified its business model which helped to absorb economic shocks and underpin growth.

“This is the major reason why our revenues and earnings have grown,” the bank said in results published in local media adding that non-performing loans in the industry caused by weak economic activity.

According to Reuters News Agency, Uganda’s banking sector non-performing loans stood at 10.5 percent in December, up from 7.7 percent in September, according to central bank data.

The results showed the bank’s income from trading in foreign exchange, government debt and other trading activities climbed 28 percent last year from 2015.

A dividend of UGX1.172 has been recommended for the year. Stanbic Bank Uganda is the largest bank in the country with a primary listing on the Uganda Stock Exchange.

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