VANILLA BEANS  SOYBEAN OIL  SOYA CAKE   |  COCOA BEANS   |  COFFEE BEANS


Stanbic Reports 121 billion in profit

10-April-2012

Stanbic bank Uganda, a unit of South Africa’s Standard bank, made Shs 121bn in profit after tax for 2011 compared to Shs 73bn the previous year, representing a 68% growth. The profit was largely on account of the growth in the non-core banking activities such as fees and commissions which registered 29% growth. The bank made Shs 94bn in fees and commissions compared to Shs 73bn during the same period the previous year. The bank has recommended a dividend payout of Shs 4.88 per share.

Arthur Oginga, Stanbic bank Uganda’s finance director, said the central bank’s tightening of the monetary policy by inducing high interest rates in the market through its Central Bank Rate resulted into less appetite for loans, which hurt the bank’s loan book. Nevertheless, loans and advances went up to Shs 1.5 trillion, up from Shs 1.1 trillion.

“There could be fewer people borrowing but taking significant amounts,” Oginga explained. “And remember we also lend dollars. This gives us some mileage,” he added.

Philip Odera, the bank’s managing director, however, said the outlook is not so rosy. He warned that inflation coupled with further depreciation of the shilling, high fuel prices as well as food shortages could undermine the returns in the second half of the year.

“Pressure on the shilling will continue, fuel prices will remain high due to civil unrest in major oil supplying countries and potential food shortages are expected to persist. So, the financial outlook for the year doesn’t look good,” Odera said.

by Milly kibombo: The Observer Newspaper

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Banking Guide Questions and Comments.





Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page

then...

feel free to ask our business travel consultants.



Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.