Thursday August 9 2018

Stanbic commits Shs700 billion to lending in second half of 2018

Stanbic commits Shs700 billion lending second half 2018

Mr Patrick Mweheire, the Stanbic chief executive officer. PHOTO CREDIT: newz.ug 

By MARTIN LUTHER OKETCH

Stanbic Bank has committed Shs700b to be lent out in the second half of 2018.
The announcement was made yesterday at a function where the bank said it had posted Shs96.1b in profit after tax for the period ended June 30, 2018.

The bank, according to details from its financial results released yesterday, lent out Shs263b, mainly in the second quarter of 2018 after it registered flat activities in the first quarter of the period under review.

Mr Patrick Mweheire, the Stanbic chief executive officer, yesterday said “Over Shs700b in client committed line is awaiting utilisation,” adding that the bank has been a key enabler in driving growth by funding key sectors of the economy.

In the second half, he said, the bank will give priority to key sectors of the economy, among which include agriculture, manufacturing, construction, personal loans and trade.

Lending activities, Mr Mweheire indicated, are expected to improve due to enhanced economic growth which has improved to 6.4 per cent.

Customer deposits grew by 16.2 per cent translating into Shs3.75 trillion up from Shs3.22 trillion recorded in the same period last year.

Total assets grew by 7.4 per cent representing Shs5.1 trillion up from Shs4.8 trillion in the same period under review.
The bank has also projected the shilling to remain stable fending off a volatile half year period that has seen the unit depreciate by an average of 7 per cent against the dollar.

However, Mr Mweheire indicates that interest rates could edge upwards in second half of 2018 following volatilities in the macro development and government policy.

Data released by Uganda Bureau of Statistics last week indicated growth in inflation to 3.1 per cent which will be a key consideration for the Central Bank macro-economic stability.

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