Digital banking drives Stanbic Bank Uganda to realize Ush 134 billion in first half year

Stanbic Bank Uganda on Tuesday, posted Ushs 134 billion in profit for the first half of the year 2019, a development the Bank Chief Executive, Patrick Mweheire attributed to digital Banking. This was during the release of 2019 half year results at Protea Hotel, in Kampala.

“Stanbic Bank Uganda recorded exceptional half year results, posting a 39.5 per cent year-on-year increase in its Profit after Tax which grew from UGX 96.1 billion in June 2018 to UGX 134 billion at the end of June 2019”, he said.

Mweheire said customer access to Agency Banking, Automated Teller Machines (ATMs), introduction of Credit Cards, digital migration, and ease access to internet compatible gadgets; 24hrs/7days open access to their accounts, were the dominant determinant of customer digital banking adoption in Stanbic bank Uganda.

“We’ve had a remarkable performance over the past six months underpinned by our customer centric approach and the strength of our diversified businesses. Our Profits after Tax grew almost 40 per cent year-on-year from UGX 96.1 Billion in June 2018 to UGX 134.1 Billion at the end of June 2019; Customer deposits grew approximately 10 per cent to exceed UGX 4.1 trillion up from UGX 3.75 trillion in June 2018. We continued to extend the most new credit in the sector – approximately UGX 400 billion in new credit – which grew our loan portfolio by 21.6 per cent to UGX 2.7 trillion from UGX 2.3 trillion in June 2018”, he added.

On advantages of digital Banking, Mweheire said; its pillar to deposit mobilization, improved customer experience by decongesting branches and reduced on number of low value cash transaction in branches among others.

He further added: “The growth has been largely due to improved economic activity as credit growth across all customer segments improved.  We remain a key enabler in major sectors of Uganda’s economy such as agriculture, manufacturing, construction, on top of also helping to underpin small medium enterprises (SMEs).”

The Stanbic Bank Chief Financial Officer Sam Mwogeza, said: “The bank’s total assets increased by 17.9 per cent to UGX 6.1 trillion up from UGX 5.1 trillion the previous year. This means the bank is in a better position to support major development projects and further facilitate economic growth. This strong growth was supported by increased customer deposits. This excess liquidity was appropriately deployed across the different asset classes, mainly customer loans, government securities and inter bank lending.”  

According to Mweherire, the Bank’s digital shift for 2019 includes; the use of robotic automation to reduce on manual/repetitive tasks, to refresh core banking infrastructure and value partnerships with Fin Techs. “This will streamline customer relationship management tool with 360 degrees customer view. It will in addition improve system stability through proactive monitoring”, he added.