Fitch gives Stanbic Bank AAA for stellar performance
Fitch, an international credit rating agency rated Stanbic Bank Uganda AAA for its credit worthiness and credibility as a financial institution.
The rating is the highest possible on Uganda's national scale and considers potential support available from Standard Bank Group.
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SBU is Uganda’s largest bank accounting for 22% of banking sector assets as at the end of December 2021.
Fitch states that SBU's regulatory capital ratios have healthy buffers above the new minimum requirements.
"We welcome the positive rating by Fitch which speaks to the stability of our business and ability to support Uganda’s economic growth in a challenging operating environment," said Anne Juuko, Stanbic Bank chief executive.
However, Fitch cautioned that this projection could be partially offset by a rise in write offs of non-performing loans and the expiry of debt relief measures first announced by Bank of Uganda during 2020 to help soften the impact of the Covid-19 pandemic on both borrowers and the banks.
Fitch said SBU's balance sheet is structurally liquid, helping to mitigate high single-depositor concentration.
