Loan recoveries push Stanbic profits up to Shs68 billion
Posted Friday, August 29 2014 at 01:00
Customer deposits also grew by 13 per cent
Improved loan recoveries and pick up in deposits has helped Stanbic Bank Uganda register profit after tax of Shs68.34 billion in the first half of 2014, representing a growth rate of 19.23 per cent.
This is compared to the same time last year when the bank registered profit after tax of Shs57.3 billion due to hard economic conditions that had hit the country’s economy.
The bank’s financial results also indicate total assets increased by 15.72 per cent to Shs3.41 trillion from Shs2.95 trillion in the same period last year.
Loans and advances to customers rose by 15.83 per cent to Shs1.58 trillion, while net interest income appreciated by 14.24 per cent to Shs135.86 billion.
The results also show cash flows from operating activities were also up 16.62 per cent to Shs90.53 billion.
Presenting the half year financial results on Wednesday, the bank’s chief executive officer, Mr Philip Odera, described the new development as business coming back to normality unlike last year when they faced difficult times.
“Credit quality of our loan book has been tightly managed and good recoveries from previously written off asset have also been made,” he said.
Mr Odera added: “Prudent management of costs has kept total operating cost expense below inflation and headcount growth. The ongoing activities focused on driving down the cost of operations of the bank continued to result in good savings to the bank.”
Reflecting on the past challenges, Mr Odera said service issues during the financial implementation resulted into loss of about 20,000 transactional accounts in 2013; account dominance reached a high of 9 per cent in 2012.