What you need to know:
Currently, Stanbic Bank has the largest reach in Uganda. In 2002, the bank took over Uganda Commercial Bank following its privatisation and has since listed on the Uganda Securities Exchange.
Kampala. Fitch Rating Agency has assigned Stanbic Bank a long term rating of AAA, giving Uganda’s largest bank a stable outlook.
The rating, according to Fitch, one of the world’s top credit rating agencies, affirms the quality of the bank’s financial position that has steered it to strong and sustainable results in the last three years.
A statement issued last week by Fitch said the rating was consistent with Stanbic’s solid financial metrics and limited probability of needing support from its parent company - Standard Bank Group - the South Africa-based parent company, which holds a stake of 80 per cent.
Stanbic Bank is the first company in Uganda in the financial sector to be rated by an international credit rating firm.
Mr Patrick Mweheire, the Stanbic chief executive officer told Daily Monitor at the weekend that rating was a “validation of the bank’s strength”, which “should further entrench stakeholders’ trust and the renewed sense of optimism.”
In its results for the year ending December 31, 2017 released recently, Stanbic posted a healthy profit of Shs200b and registered growth in its assets that grew by 18 per cent, representing Shs5.4 trillion.
Customer loans and advances grew by 8 per cent taking up a market share gain of 19 per cent from 17.8 per cent.
Customer deposits grew by 18 per cent to Shs3.62 trillion from Shs3.06 trillion propelling a market share gain of about 20 per cent up from 18.7 per cent in by close of 2016.