Stanbic remains Uganda's largest bank by assets and profitability. Photo / File
Stanbic Uganda is proposing to pay a final dividend of Shs300 billion for the 2024 financial year on the back of yet another robust set of results released last week. The lender has already paid out an interim dividend of Shs140 billion and the additional Shs160 billion proposed would represent a 7.1 percent increase on the Shs280 billion paid out in 2023.
The lender, which is listed on the Uganda Securities Exchange, registered profit after tax of Shs478 billion in 2024, representing a 16.2 percent growth on the back of a 7.2 percent and 10.8 per cent increase in interest and non-interest income from the previous year. The country’s biggest lender generated Shs1.3 trillion in revenue (up 11.8 percent year-on-year), 80 percent of which, it says, was reinvested in the economy.
This reinvestment included Shs428 billion in direct and indirect taxes, up from Shs355 billion in 2023. It also includes about Shs200 billion in staff costs and compensation for the lender’s more than 2,000 employees,99 percent of whom are Ugandans. Stanbic Bank also paid out Shs177 billion to local suppliers in 2024, about 80 percent of the lender’s total procurement budget of Shs211 billion.
A lot of this went to big-name suppliers of goods and services, but beneficiaries also include smaller home-grown businesses, some of which have received handholding through the Stanbic Business Incubator.
“For more than 12 years, we have had the privilege of working with Stanbic Uganda as an events vendor—first as an employee with a previous company and now as a co-owner of my own business, says Ms Barbara Yata, the co-owner of TAP Uganda, an events management firm. “This experience has been transformative for our business—given Stanbic’s strict compliance, we are required to operate with the same level of compliance to obligations such as tax clearance and other requirements.
This high expectation means we have built competitiveness to deliver high-quality services to clients both in Uganda and beyond,” she adds. Women rising Female entrepreneurs make up a growing segment of Stanbic’s suppliers and clients.
In 2024 cumulative lending to women-run businesses reached Shs173 billion, just two years after the launch of the Stanbic4Her programme. This initiative provides qualifying women with credit at 15.5 percent interest per year, which is lower than the market rate, and helps them scale their businesses and link to new markets through networking and innovative marketing.
In 2024 the initiative lent Shs94 billion to 6,700 women entrepreneurs, up 55 percent from the previous year. In addition, more than 3,400 female entrepreneurs received business management and financial literacy training. One of the beneficiaries is Ms Esther Muwanguzi, the managing director of Genesis Global Supplies, an agricultural commodity supplier.
“I first accessed Shs7 million unsecured which I used to expand my supplies to different restaurants in Kampala and Mukono. My banking improved and my next loan was Shs100 million, which was later enhanced to Shs200 million at a fixed interest rate of 15.5 percent per annum,” Ms Muwanguzi says.
“I was able to get more suppliers such as Nile Breweries, Mukwano, Pan Africa, Exim limited Wingreen, UGAChick and others. My business turnover has since more than tripled and this would not have been possible without Stanbic4Her. My business has grown from local trade to export because of the support of Stanbic Bank to women with a vision,” she adds. In 2024 Stanbic also extended financing worth Shs96 billion to nearly 7,000 Savings and Credit Cooperative Organisations (Saccos), part of Shs454 billion in overall lending to the agricultural sector.
As part of the post-pandemic recovery effort, Stanbic Uganda’s Economic Enterprise Restart Fund provides capacity-building support to smallholder farmers through their Saccos and lends to them at low interest rates of 10 percent for those in agriculture, and 12.5 percent for those in general economic activities. A total of Shs170 billion has been lent since 2022 benefiting an estimated 2.6 million farmers. Among them is Masindi Farmers Development Association (MADFA)— Sacco has 15 groups each with up to 150 members.
The Sacco borrows from Stanbic Bank at 10 percent and lends to its members. In 2024 this arrangement was worth Shs800 million, which significantly boosted the members’ production, according to Mr Bob Muzoora, the MADFA Sacco manager. Small businesses Through the Business Incubator programme, Stanbic strengthens the capacity and competitiveness of local enterprises through tailored training.
In 2024, the programme supported over 3,000 enterprises, enabling them to access Shs76 billion in credit, up from Shs51 billion in 2023. Officials at the Incubator estimate that on average, each supported business created seven new jobs, many of which are increasingly formal; in 2024, 43 percent of supported businesses received assistance to register onto the Uganda Registration Services Bureau database.
Veqtaq Uganda, a construction firm in Kampala, went through the business incubator programme. After graduating, the firm has expanded its operations and balance sheet, and currently has a Shs1 billion credit portfolio with the bank.
“The experience has been transformative, equipping us with a broad range of skills from oil and gas to diverse business strategies,” says Mr Allan Namara, the founder.
“The insights and strategies gained from the Stanbic Business Incubator have driven significant growth, boosting our operations and long-term business potential. We were also supported through credit facilities that enabled us to kick-start our oil and gas journey in 2023,” Mr Namara adds.
Participating firms are also assisted in building their environmental, social and governance muscle, including green finance, and ensuring sustainable operations with support from the International Climate Fund.
