Stanbic Uganda Holdings half-year profits exceeded Ush100 billion ($26.9 million) for the first time since it listed on the local bourse in 2007, an achievement driven by strong growth in revenues and low expenses.
The country’s biggest lender’s full-year results, however, reveal a cautious approach towards exploiting big opportunities offered by its new ownership structure amid restrained lending activity.
The company’s profit after tax rose from Ush96 billion ($25.7 million) at the end of June 2018 to Ush134 billion ($36 million) by end of June 2019, while total assets increased from Ush5.1 trillion ($1.4 billion) to Ush6.1 trillion ($1.6 billion) during the same period according to latest financial results.
Interest income grew by 23 per cent to Ush232 billion ($62 million) by end of June 2019 while non-interest income — a revenue source derived from bank charges and commission fees — expanded by 21 per cent to Ush183 billion ($49 million) during the first six months of 2019.
As a result, total revenues jumped by 24.1 per cent to Ush399 billion ($107 million) at the end of June 2019.
The credit life cycle usually takes 7-9 years to complete its course and it is punctuated by high growth rates, knock on effects on the economy and temporary spikes in credit default rates.