BY BANKERS REPORTER
How has Stanbic performed during this period considering the challenging economic environment?
The first half of 2021 was rather challenging given the tough macro-economic environment especially as the nation continues to battle the impact of the COVID-19 pandemic.
Despite that, Stanbic remained resilient managing to post a good performance in this first half while implementing a robust strategy to support economic recovery.
Customer deposits increased by 9.5% from sh5.2 trillion in June 2020 to sh5.7 trillion in June 2021. We saw significant growth in our Small and Medium Sized Enterprises (SME) segment as we continue to support small business through this challenging period.
We also continued to finance the private sector through the pandemic which saw loans and advances growing by 9.8% to sh3.8 trillion from sh3.4 trillion in June 2020.
The consolidated profit after tax during the period was sh154.9 billion, representing a 21.5% growth above a similar period in 2020.
This increase was supported by growth in our trading revenue recorded at sh37.5 billion compared to a similar period in 2020; better management of our impairment charge for credit losses, which reduced by sh11.7billion as compared to 2020.
We continued to provide credit relief solutions to support our clients to withstand the COVID-19 tough economic environment. Overall, the Bank remains well capitalized to continue supporting clients’ needs and revive economic activity.
What interventions has Stanbic extended to support economic recovery and communities?
During the period under review, we extended a number of interventions including: Enterprise Economic Restart fund (EERF), as a measure to also support the worst hit sectors which include; urban trading, tourism, transport, export-oriented agriculture, SME’s as well as Savings and Credit Cooperative Organizations (SACCOs) and Village Savings and Loans Associations (VSLAs).
Stanbic created the EERF to raise sh350 billion ($100 million) to provide low-cost financing that will enable their recovery from the impact of the Covid-19 pandemic.
Provision of affordable financing
Stanbic also launched a new value proposition aimed at revitalizing the operations for SACCO’s and VSLA’s across Uganda. The bank has so far provided sh5.1 billion in financing that is reaching over 261,497 members.
Corporate Social investments
Stanbic has invested over sh2.1 billion into CSI community initiatives. We made tangible contributions to education through the National Schools Championship programme reaching over 60,000 students; promoted better access to Health Care through the Maternal Health drive; and Joined the fight against COVID 19 with a donation of over sh200 million to the Ministry of Health.
We continued to provide necessary support to protect our staff and their wellbeing. Our people are the heart of our organisation, and our aim is to ensure that during this period they are provided the required health care support and counsel.
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Looking ahead, what should customers and the stakeholders expect over the next 6 months?
Our priority for the next half is to focus on investing in technology and digital solutions to enhance our service offerings and customer experience.
We shall also focus on continuously managing our risks across all areas of operations to ensure business continuity and implement the Social, Economic and Environmental (SEE) priorities as a true testament to our purpose, Uganda is our Home and we drive her growth.
