Stanbic half year profits drop by 4 %
Posted Friday, August 27 2010 at 00:00
Stanbic Bank Uganda has posted a Shs44.77 billion after tax profit for the first six months ending June 30, indicating a 4 per cent reduction.
In the same period under review in 2009, the bank registered growth of about Shs46.86 billion.
Releasing the results in Kampala yesterday, Mr Philip Odera, the bank’s managing director, attributed the reduction to the huge investments the bank has done in the period under review, that seek to cover the market and bring onboard the unbanked.
Finding alternatives
He said: “We needed to find alternatives to ensure that we build the required infrastructure to reach our targeted customers.”
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The bank invested in information technology, branch networks, ATM points and people as it gears up for the expected economic expansion and hopes to bring between 2-3 million unbanked people on board.
The bank increased its ATM network by 23 per cent, bringing it to 194 ATMs during the first half of 2010.
Mr Odera said benefits from all the investments are expected in the future.
The bank’s total assets, however, appreciated by 39 per cent to Shs2.25 trillion compared to Shs1.62 trillion in 2009, while customer deposits went up by 45 per cent to Shs1.79 trillion.
Strong asset growth
The growth in the bank’s total assets is the strongest in three years, which Mr Odera said enabled the bank to support 31 per cent growth in customer lending. Customer loans and advances stood at Shs1.03 trillion.
Mr