The Independent Uganda: You get the Truth we Pay the Price
The lender has proposed a total dividend payout of Shs 300 billion to its shareholders reflecting a 7.1% annual increase compared to the previous year
Kampala, Uganda | THE INDEPENDENT | Stanbic Uganda Holdings Limited (SUHL), the parent company of Stanbic Bank Uganda and its subsidiaries, has posted a 16.2% growth in profit after tax (PAT) to Shs 478 billion for 2024, driven by growth in interest and non-interest income, coupled with prudent cost management.
The lender’s net income grew by 7.18% to Shs 759 billion, while non-interest income rose by 10.78% to Shs 537.56 billion during the same period. Speaking at a press briefing attended by senior management and stakeholders, including Chief Executive, Francis Karuhanga, and Chief Finance and Value Management Officer, Ronald Makata, the bank highlighted its revenue growth, which reached Shs 1.3 trillion, representing an 11.8% compound annual growth rate.
Stanbic Uganda also maintained its resilience, containing operating expenses at Shs 612 billion, resulting in a cost-to-income ratio of 47.2%. Customer deposits expanded by 12.2% to reach Shs 7.1 trillion, while loans and advances increased by 3.5%, maintaining a 19.5% market share at Shs 4.4 trillion. Non-interest revenue saw a significant 10.8% increase, supported by higher transaction volumes and diversified revenue streams.
In line with its performance, Stanbic Uganda has proposed a total dividend payout of Shs 300 billion, reflecting a 7.1% annual increase. This includes Shs 140 billion in interim dividends, with the remaining Shs 160 billion subject to shareholder approval.
Tax contributions for the year rose to Shs 427.8 billion, reinforcing Stanbic Uganda’s position as a leading taxpayer in the financial sector. This contribution supported the Uganda Revenue Authority (URA) in surpassing Shs 10 trillion in domestic revenue collection, up from Shs 8 trillion in 2023.
Sectoral Support
Beyond its financial performance, Stanbic Uganda intensified its support for key economic sectors, particularly agriculture and small business growth. The bank allocated Shs 454 billion to agriculture, with Shs 170 billion specifically designated for smallholder farmer SACCOs under its Economic Enterprise Restart Fund. Launched during the COVID-19 pandemic, this initiative provides low-interest credit at 10% for agricultural borrowers, benefiting over 2.6 million farmers since 2022.
Similarly, the Stanbic4Her initiative extended Shs 94 billion in credit to 6,700 women-led enterprises in 2024, marking a 54.5% increase from the previous year. Since its inception, the program has disbursed Shs 173 billion and provided financial literacy training to more than 3,400 women, enhancing their ability to manage and expand their businesses effectively.
Small and medium-sized enterprises (SMEs) also received substantial support through the Stanbic Business Incubator. In 2024, the incubator enabled over 3,000 businesses to access Shs 76 billion in credit, up from Shs 51 billion in 2023. Nearly half of these businesses formalized their operations through registration with the Uganda Registration Services Bureau (URSB), improving their financial inclusion and long-term growth prospects.
Looking ahead, Stanbic Uganda’s executives emphasized their commitment to innovation, financial inclusion, and sustainable growth.
“We are committed to delivering value to our stakeholders and navigating evolving market conditions with agility,” Karuhanga stated. The bank remains focused on maintaining its trajectory while supporting economic growth and financial accessibility in Uganda.
Bank of Baroda too had good returns
Meanwhile, Bank of Baroda Uganda reported a 15% rise in profit after tax to Shs 133.95 billion for 2024, driven by an increase in loans and advances as well as interest earned on government securities.
The lender’s total income surged from Shs 297.5billion in 2023 to Shs 347.8 billion in 2024, reflecting a positive growth trend. As a result, Bank of Baroda has recommended a dividend payout of Shs 4 per share, amounting to Shs 60 billion for the year ended December 31, 2024. This proposal is subject to approval from both the Bank of Uganda and the shareholders at the upcoming Annual General Meeting (AGM).
