Stanbic records UGX478 billion profit in 2024

Stanbic Uganda Holdings Limited (SUHL), the parent company of Stanbic Bank Uganda, has reported a strong financial performance for 2024, recording a profit after tax (PAT) of UGX 478 billion. Speaking at a briefing in Kampala, Francis Karuhanga, the SUHL Chief Executive Officer, attributed the impressive performance to strategic resilience and adaptability. “We are pleased with the results achieved in 2024, especially considering the challenging global environment. Key drivers of the local economy were stable, supported by prudent fiscal and monetary policies. Despite an evolving competitive landscape, including the rise of fintechs, we stayed focused on our strategic goals, executing with discipline and adaptability,” Karuhanga stated. Stanbic Uganda’s total revenue topped UGX1.3 trillion, reflecting an 11.8% Compound Annual Growth Rate (CAGR). Customer deposits grew by 12.2% to UGX7.1 trillion, while loans and advances increased by 3.5%, maintaining a solid 19.5% market share, totalling UGX 4.4 trillion. Non-interest revenue grew by 10.8%, driven by higher transaction volumes. The bank’s contribution to Uganda’s economy is evident in its tax payments, which rose to UGX427.8 billion in 2024 from UGX 355 billion in 2023. This makes Stanbic the leading taxpayer in the financial sector. The Uganda Revenue Authority (URA) collected over UGX10 trillion in 2024, up from UGX 8 trillion in 2023, with a significant portion coming from the banking sector. The Board has recommended a total dividend pay-out of UGX300 billion for 2024, demonstrating its commitment to shareholders. With UGX140 billion already paid as interim dividends, the remaining UGX160 billion, which awaits AGM approval, represents a 7.1% annual growth in dividends. SUHL comprises five companies, which include; Stanbic Bank Uganda Limited, Stanbic Business Incubator, SBG Securities Ltd, an investment house and stock brokerage firm; Stanbic Properties Ltd, and Flyhub Uganda Ltd, as a digital innovation and solutions enterprise. The Group of companies is owned by the South Africa based Standard Bank Group, Africa’s largest bank by assets, which operates in 20 African countries. Looking ahead, Karuhanga emphasized the bank’s dedication to sustaining its growth trajectory while serving as a catalyst for economic development. “As we look to the future, our focus remains on supporting key sectors that drive Uganda’s economy, enhancing financial inclusion, and ensuring sustainable economic growth.” Stanbic Uganda’s performance in 2024 underscores the banking sector’s vital role in Uganda’s economic development. By facilitating access to credit, paying significant taxes, and investing in key sectors, the bank continues to contribute to the nation’s progress. With a strong strategy and commitment to innovation, Stanbic is well-positioned to drive further economic growth in the coming years. For example, the Stanbic Business Incubator is playing a significant role in supporting SMEs. In 2024, it facilitated UGX76 billion in credit, up from UGX 51 billion in 2023. More than 3,000 enterprises benefited, creating an average of seven new jobs per business. Stanbic Uganda’s Economic Enterprise Restart Fund (EERF) has been a key driver of financial inclusion, providing UGX 454 billion in agricultural financing. Of this, UGX 170 billion was channelled to farmers’ SACCOs at low interest rates, benefiting over 2.6 million members. The initiative has helped farmers access affordable loans, boosting productivity and food security. Similarly, the Stanbic4Her program, aimed at empowering women entrepreneurs, disbursed UGX94 billion in 2024, bringing the total to UGX 173 billion since its inception in 2022. Over 6,700 women entrepreneurs accessed credit, marking a 54.5% increase from the previous year. Additionally, 3,400 women received business management and financial literacy training, fostering sustainable business growth. These developments reflect the Group’s crucial role in driving Uganda’s economic growth through financial inclusion, tax contributions, and support for key sectors such as agriculture and small enterprises.