Stanbic Bank Uganda delivers robust performance despite pandemic

Despite the expected effects of the Covid-19 pandemic, Stanbic Bank Uganda has posted a robust first-year performance. The bank's profit after tax saw a significant increase of 21.5 percent, showcasing its resilience in the face of economic adversities. In a recent CNBC Africa interview, Ronald Makata, the Chief Financial Officer of Stanbic Bank Uganda, discussed various strategies and initiatives that contributed to the bank's success during the challenging times. Makata highlighted the importance of supporting small businesses and implementing measures to provide affordable credit to the most affected entities. Through partnerships with organizations like UNDP, the bank launched the economic enterprise restart fund to aid struggling businesses. This initiative aimed to help these enterprises survive, recover, and thrive in the midst of the pandemic. Stanbic Bank Uganda's proactive approach to credit risk management and close monitoring of customer relationships played pivotal roles in maintaining a healthy loan book during the crisis. The bank's commitment to supporting its clients and the local community has been evident in its efforts to provide relief measures such as interest payment holidays and loan restructuring. Makata also addressed the issue of paying dividends amidst the pandemic, highlighting the bank's confidence in its liquidity position and the positive outlook for economic recovery in the region. Despite cautious sentiments from some stakeholders, Stanbic Bank Uganda's decision to pay dividends worth 110 billion shillings reflects its strong financial position and commitment to shareholders. Makata emphasized that the bank's capital and liquidity positions are robust, exceeding regulatory requirements and positioning it well for future growth. In response to questions about interest rates and trade revenues, Makata reiterated the bank's ongoing efforts to align interest rates with market trends and support businesses through innovative solutions. The bank's focus on diversifying revenue streams, particularly in trade finance, has been instrumental in driving profitability and sustaining growth. Stanbic Bank Uganda's performance amidst the challenges of the pandemic underscores its resilience and commitment to providing sustainable financial solutions to its customers and the broader community.