By Simon Abaho
Stanbic Uganda Holdings Limited (SUHL), a member of the Standard Bank Group, has demonstrated business resilience, weathering through the effects of the Covid-19 pandemic to post a robust performance in the first half of 2021 with strong growth across all key metrics.
The strong performance has largely been driven by Stanbic Bank Uganda Limited, the anchor subsidiary.
According to Stanbic’s half-year financial results released on Friday, August 6, 2021, customer deposits increased to UGX5.7trn in June 2021 compared to UGX5.2trn in June 2020, indicating a 9.5% growth.
Its assets also grew by 9.8% driven by an increase in loans and advances amounting to UGX 3.8 trillion compared to UGX 3.4 trillion in June 2020.
SUHL earned UGX154.9 billion in Profit after tax (PAT) representing an impressive 21.5% growth from the same period last year.
Growth in PAT was mainly driven by strong growth in trade revenue which accounted for UGX 37.5 billion as well as better management of loan impairments, which was reduced by UGX 11.7 billion as compared to the same period last year.
The company remains well-capitalized above the minimum regulatory requirement, ensuring that it is in a strong position to continue financing the private sector through the second half of the year.
Apart from Stanbic Bank Uganda Limited, other SUHL subsidiaries are Stanbic Properties Limited; Stanbic Business Incubator Limited; FlyHub Uganda Limited, and SBG Securities Uganda Limited. The creation of the holding company corporate structure started in 2018 and was completed in 2020.
Andrew Mashanda, the Chief Executive for Stanbic Uganda Holdings Limited said, “The first six months of 2021 have been quite challenging especially with the second wave of Covid-19. Businesses and individuals have felt the impact of the pandemic and as an institution, we have done much to support our customers, our staff, and communities through this unprecedented period.
“Despite the attendant challenges, we waded through, to post what our shareholders will appreciate as resilient performance, with good growth across all key performance indicators. Our Return on Equity stood at 23.2% up 1.6% year on year. This strong performance was led by our anchor and largest subsidiary, Stanbic Bank Uganda Limited (SBUL).”
Commenting on the Bank’s performance, Anne Juuko, Chief Executive Stanbic Bank Uganda said, “We saw significant growth in our small and medium enterprises segment as we continued to support them through this challenging period. Overall, through our financing to boost private sector growth, we saw loans and advances grow by 9.8% to UGX 3.8 trillion from UGX 3.4 trillion in June 2020.
“We made deliberate interventions to drive economic recovery in a number of ways including the creation of the Enterprise Economic Restart fund (EERF) that aims to raise and provide up to UGX 350 Billion ($100 Million) in low-cost financing to sectors and groups impacted by the pandemic. We also launched a new value proposition aimed at revitalizing the operations for SACCO’s and VSLA’s across Uganda. The bank has so far provided UGX 5.1 billion in financing that has reached over 261,497 members.
“In continuing to honour our commitment to support communities, we invested over UGX 2.1 billion into Corporate Social Investment initiatives. We made tangible contributions to education through the National Schools Championship programme reaching over 60,000 students; promoted better access to Health Care through the Maternal Health drive; and joined the fight against COVID-19 with a donation of over UGX 200 million to the Ministry of Health providing oxygen cylinders and PPE for front line workers.”
The bank’s focus in the first half of the year was on how to achieve a fine balance between growing shareholder value while supporting customers to remain resilient through the pandemic.
“This performance shows that we were successful in growing shareholder value while supporting our customers to remain resilient; we achieved this through a number of innovative initiatives which we intend to sustain through the second half of the year and beyond,” CE Anne Juuko said.
Andrew Mashanda said, “our priority for the next half is to focus on investing in technology and digital solutions to enhance our service offerings and customer experience. We shall also focus on continuously managing our risks across all areas of operations to ensure business continuity and implement the sustainability priorities as a true testament to our purpose-Uganda is our home, and we drive her growth.”