Stanbic’s profit after tax up 7.4%

By Julius Businge

Stanbic Bank Uganda Limited, Uganda’s largest commercial bank has recorded sh130bn profit after tax for the year ended December 2012 up from sh121bn a year earlier, the Bank’s financial results released on March 18 reads.

The Bank’s expenditure however, increased from sh267bn for the year ended December 2011 to sh383bn for the year ended December 2012. The Bank’s bad debts written off increased to sh93bn from 18bn in 2012 and 2011 respectively. Interest on loans and advances somewhat increased to sh312bn in 2012 from sh266bn.

The Bank’s managing director Phillip Odera said at the media and analyst briefing on March 18 in Kampala that they are proposing sh70bn this year as dividends up from sh50bn a year earlier.  Odera said going forward; a favorable economic environment in 2013 will position the bank in a very sound position to remain profitable.

“The bank is very, very sound,” he said.

In the past two years commercial banks in Uganda have been threatened by reports that traders would quit their services due to the high interest rates that went up to over 30% for some banks.

The rates went up following the central bank’s tight monetary policy aimed at battling inflation that was recorded at over 30% at the end of 2011.