Stanbic Bank's profitability dips in 2020 due to Covid-19
Stanbic Bank Uganda's profitability declined by Shs 17 billion in 2020 largely due to the economic impact of Covid-19.
According to results released this week, the bank posted profits of Shs 242 billion in 2020 down from Shs 259 billion registered in 2019.
Keep Reading
- > Absa Bank Uganda Reports Robust Revenue Growth Amidst Economic Resurgence
- > Stanbic appoints Mwogeza, Dokoria as interim Chief Executive, Executive Director
- > Stanbic basks in earns Shs412bn profit after tax
- > Stanbic Bank's national schools championship hailed for role in improving learners' performance
Speaking at the press conference, Anne Juuko, the chief executive for Stanbic Bank Uganda said 2020 was an incredibly difficult year for the entire economy, but Stanbic had shown that it remains a strong and well capitalised bank which is committed to contributing to economic growth and transformation.
Juuko said: "Our aim is to ensure our customers can benefit from more affordable lending rates. We also offered credit relief programmes to our customers in response Covid-19 challenges with over Shs 800 billion worth of loans restructured in 2020."
Juuko said the bank increased support to the community and invested over Shs 3.9 billion through their corporate social responsibility programmes.
She said: "We made donations to frontline health works in collaboration with the ministry of Health, contributed food and supplies to local communities where we operate and continued to provide support in the areas of education, environment and maternal health."
According to the results, customer deposits grow year on year from Shs 4.7 trillion to Shs 5.4 trillion.
Loans and advances increased by 27% year on year from Shs 2.8 trillion to Shs 3.6 trillion as more clients acquired loans to sustain their businesses.
Juuko said the emergence of oil and gas will create vast opportunities for the local economy and their role as a bank is to provide financial solutions to clients across the entire value chain especially for local companies looking to participate in the sector.
She said Stanbic remains committed to its purpose.
"Uganda is our home and we drive her growth by contributing to economic growth and transformation. We shall continue to deliver the right solutions for our clients, as we conduct our business in a responsible and sustainable manner to deliver shared prosperity for all our stakeholders," she said.
