Stanbic lifts dividend to sh360b as profit jumps 23%

KAMPALA - Stanbic Uganda Holdings raised its dividend payout to sh360b for 2025, supported by stronger earnings and balance sheet growth.

The proposed dividend is up 20% from sh300b in 2024, combining an interim payout of sh140b and a final dividend of sh220b, subject to approvals, the bank said in its annual results released this week.

“The Board has proposed a total dividend of sh360b, balancing the delivery of sustainable returns to shareholders with the maintenance of capital strength to support future growth,” Francis Karuhanga, chief executive at Stanbic Holdings, said.

“The resilience demonstrated in 2025 positions the Group to create lasting value for shareholders, clients, and the broader economy.”

The results saw Stanbic's share price at the Uganda Securities Exchange (USE) increase by about 1.3% to sh80 per share.

Stanbic’s profit after tax rose 23.6% to sh591b, building on steady growth across both interest and non-interest income lines. The lender’s return on equity climbed to 26.8% from 24.3%.

The lender’s topline performance held firm, with total income increasing to about sh1.44 trillion from sh1.30 trillion.

The growth was driven largely by non-interest revenue, which jumped to sh651b from sh538b, supported by higher trading income and fees as transaction volumes expanded.

Loans and advances to customers rose to sh5.1 trillion from sh4.37 trillion. Customer deposits also grew 12.9% to sh8 trillion. The non-performing loan ratio ticked up to 1.7% from 1.5%, though credit loss charges fell sharply to sh18.6b from sh34b.

Costs rose as the bank invested in operations and growth. Operating expenses increased, but the cost-to-income ratio improved slightly to 47.1% from 47.2%.