Banking operations lifts Stanbic Uganda’s annual net profit by 15%
TLDR
- Stanbic Uganda Holdings reports a 15.2% increase in annual net profit driven by Stanbic Bank Uganda's performance
- Net profit reaches Sh411.5 billion ($106 million) due to higher net interest income from loans and advances
- Preprovision income expands by 15.1% to Sh1.2tn with growth in operating expenses impacting profit growth rate
Stanbic Uganda Holdings reported a 15.2% increase in annual net profit, primarily attributed to the performance of its subsidiary, Stanbic Bank Uganda.
The net profit for the 12 months ending December 2023 amounted to Sh411.5 billion ($106 million), driven by higher net interest income, particularly from interest on loans and advances, which experienced its fastest growth rate in four years.
Preprovision income, inclusive of operating expenses, expanded by 15.1% to Sh1.2tn, outpacing the 14.9% growth seen in 2022. However, the growth in both loan loss provisions and operating expenses, in contrast to a decline in these areas in 2022, resulted in a slower profit growth rate. In the previous year, net profit surged by 32.7% year-on-year.
Points clés à retenir
Despite the sustained investment in people and technology aimed at enhancing efficiency and transforming client experience, Stanbic's operating expenses remained high. However, this investment contributed to the achievement of the group's strategic objectives. Total income at Stanbic Bank, SUHL’s largest subsidiary and Uganda’s largest bank by assets, surged by 16.8% to Shs1.3tn, marking the fastest growth rate since 2019. This growth was primarily driven by increases in interest on loans and advances, which rose by 20.6% to Shs597bn, as well as interest on investment securities and net fees and commissions income, which grew by 26.3% to Shs163.2bn and 15% to Shs202.7bn, respectively.
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