Stanbic Bank Uganda this morning published their half year to June 2016 unaudited accounts that show an improved and impressive performance. This comes at a time when their major competition such as Barclays Bank have taken a huge hit and were on the verge of exiting the market. Stanbic bank in the late 90’s offered shareholding to the public with many enthusiastic Ugandans who bought into the IPO now reaping big
Profit after tax grew by 56.9% to Ugx107.3Bn ($31.8Mn) from Ugx68.4Bn ($20.3Mn) in the first half of 2015 while Operating income was up 28% to Ugx334.4Bn ($99.21Mn) owing to a 49.6% rise in trading income.
Interest income also improved to Ugx207.5Bn ($77.5Mn) while fees and commission incomes advanced marginally by 2.5% to Ugx56.7Bn ($16.8Mn) compared to Ugx55.4Bn ($16.4Mn) previously.
Higher expenses
Just like any other business in these times, Stanbic bank’s Operating expenses rose by 14.2% to Ugx175.4Bn ($52Mn) from Ugx153.5Bn ($45.5Mn) while Impairment charge for credit losses fell to Ugx14.9Bn ($44.2Mn) from Ugx15.8Bn ($46.87Mn).
Stanbic posted a loan book growth of 1% in the first half of this year to Ugx1.9Bn ($563,630) in contrast to Ugx1.8Bn ($533,966) in the 1H2015. Non-performing loans increased to Ugx37Bn ($10.98Mn) from Ugx30Bn (48.9Mn) in the first 6 months of 2015. The bank’s assets accelerated to Ugx4.5Tn ($1.33Bn) from Ugx3.8Tn (1.13Bn) in the same period last year
Increased customer deposits
Customer confidence in the bank increased gauging from the deposits which rose to Ugx2.8Bn ($830,614) from Ugx2.3Bn ($628,290) in the 1H2015. Total liabilities improved by 14.7% to Ugx3.9Tn ($1.16Bn).Retained earnings were up 35.2% to Ugx561.4Bn ($166.54Mn).
Shareholders eat big
As a result, shareholders’ equity advanced to Ugx627.3Bn ($186.09Mn) from Ugx466.3Bn ($138.33Mn). Net cash from operating activities accelerated to Ugx391.7Bn ($116.19Mn). Cash and cash equivalents at the end of June 2016 stood at Ugx1.3Tn ($385.64Mn) from Ugx934.4Bn ($277.19Mn) at the beginning of the year.
Earnings per share extended to Ugx2.1 ($0.0006) in the 1H2016 from Ugx1.34 ($0.0004) reflecting the improved profitability. Return on equity and return on assets improved to 17.1% and 2.38% respectively. Net asset value per share for the first six months of this year stands at Ugx12.26 ($0.0036) which at the current share price Ugx27 ($0.008) translates to a price to book value of Ugx2.2 ($0.0007). Stanbic bank is partly owned by South African based Standard Bank with the other shareholding being held by Ugandan and East African nationals.