Stanbic six-month profit rises to sh278b

_______________

Listed Stanbic Uganda Holdings Limited posted a profit after tax of sh278.4b for the six months to June 2025, an 18% increase from sh235.5b a year earlier.

The growth in profitability was driven by higher revenues and a sharp reduction in credit impairments, according to its unaudited financial statements. 

The group’s total income rose to sh685.2b from sh637.4b in the same period last year, helped by growth in both interest and non-interest earnings. Net interest income increased 2.6% to sh371.5b. The growth reflects stronger lending activity on the books, while non-interest revenue jumped 14% to sh313.7b on the back of higher fees, commissions, and trading income.

Operating costs rose more moderately, up 5.9% to sh322.7b, which kept the cost-to-income ratio at 47.1%, slightly better than last year’s 47.8%. At the same time, provisions for credit losses nearly halved to sh7.3b from sh14.4b in the first half of 2024, as asset quality continued to improve. Non-performing loans stood at 1.3% of total lending, down from 1.6% last year.

The board approved an interim dividend of sh140b, equivalent to sh2.73 per share, pending regulatory clearance.

On the balance sheet, Stanbic reported total assets of sh11.8 trillion at the end of June, up 21% from sh9.8 trillion a year earlier. Customer deposits grew 29% to sh8.4 trillion, while loans and advances to customers expanded by 13% to sh4.9 trillion.

Shareholders’ equity climbed to sh2.18 trillion from sh1.96 trillion over the same period, underpinned by retained earnings. Stanbic’s return on equity reached 26.9%, up from 25.1% a year ago, while return on assets edged up to 5.2%.