Wednesday, February 28, 2024
HomeBusinessStanbic Bank Holdings hit...

Stanbic Bank Holdings hit shs9bn profits, offers dividend record

Kampala Uganda| Stanbic Holdings has increased dividend payouts by 40 percent after the net profit for the year ended December 2022 grew 26 percent to hit the highest level in the lender’s history.

According to Daily Business Africa, The net earnings hit Sh9.06 billion from Sh7.21 billion posted in the preceding year as the interest income grew on increased lending and non-funded income rebounded.

The Stanbic board has, as a result, raised the dividend per share from Sh9 to Sh12.60 in what will mark its highest-ever playout.

Standard Bank Group East Africa regional chief executive Patrick Mweheire attributed the “exceptional” performance to improved growth across the five financial segments that Stanbic operates.

“We are extremely excited to be paying such a level of dividend. The operating environment remains challenging, but we are happy to see growth come back,” said Mr Mweheire.

The raised dividend per share will see shareholders pocket a total of Sh4.98 billion — an equivalent of 55 percent of the net earnings —compared with Sh3.56 billion paid in the previous year.

Stanbic, which has traditionally paid an interim dividend, skipped the payout when announcing half-year results and lumped it together instead.

Shareholders are expected to endorse the proposed payout during the annual general meeting.

During the review period, net interest income grew from Sh14.4 billion to Sh18.9 billion as loans and advances to customers rose by Sh37.5 billion to hit Sh266.83 billion at the end of December.

Non-interest income — mainly drawn from fees and commissions — rose from Sh10.62 billion to Sh13.14 billion to support the net earnings.

The group’s operating expenses, however, rose from Sh12.7 billion to Sh14.97 billion, partly on near doubling of provisioning for non-performing loans from Sh2.5 billion to Sh4.98 billion.

“We had some headwinds in some of our portfolios, which we continue to manage, but in line with IFRS 9, we had to make that provision,” said Dennis Musau, chief financial and value officer at Stanbic Holdings.

Follow us on Twitter. Send us a secure tip

- A word from our sponsors -

Most Popular

More from Author

Microsoft’s Strategic Acquisition of OpenAI’s Sam Altman Sends Stocks Soaring to Record High

Microsoft, a leading tech giant, has propelled its stocks to unprecedented...

Dating Services Industry to Hit 600 Million Users, $8B in Revenue Next Year

The dating services industry has seen impressive growth over the past...

Citi Launches Securities Lending Access™ In Sweden

LONDON – Citi Securities Services announced Nordnet AB (Nordnet), the leading...

- A word from our sponsors -

Bridging Cultures, Building Futures: The Kiige and Emmanuel Initiative for Immigrant Empowerment in Canada

In the heart of Canada's multicultural landscape, Duncan Kiige and Emmanuel, both celebrated public speakers with immigrant backgrounds, have become symbols of hope and transformation for new immigrants. Their recent conference on career and personal development marked a significant milestone in their mission to empower newcomers with...


The NRM government is very proud to see the example of our young people begin to build Uganda by putting up projects such as this one. We congratulate Ham Kiggundu for this excellent jobKAMPALA UGANDA| As sports lovers countdown to 2027 when the Nakivubo-based Hamz Stadium will...

Raila’s search for a post with the AU Commission could be a suitable trapdoor or departure.

In Kenyan politics, Raila Odinga has long been a mystery. His international performance? Even when the African Union designated him, he remained debatable.But he said on Thursday that he would run for the position of Chairperson of the African Union Commission. One diplomat tampered with his first...

Court Finds Jowie Irungu Guilty of Monica Kimani’s Murder

In a landmark ruling, Justice Grace Nzioka declared Jowie Irungu guilty of the murder of Monica Kimani. According to Justice Nzioka, the evidence presented convincingly establishes Jowie's culpability in the crime beyond a reasonable doubt.Highlighting the sequence of events, Justice Nzioka outlined how Jowie, armed with a...

KUPPET Questions Government Directive For Parents To Pay Schools Fees E-Citizen Platform

KUPPET opposes the Government directive for parents to use eCitizen platform to pay school fees calls for clear public participation, legislation and policy framework.KUPPET national officials have opposed the move by Government to force parents to use eCitizen platform to pay school fees saying it will be difficult for...

List of best Audiology Services in Nairobi, Kenya

List of best Audiology Services in Nairobi, Kenya. The word audiology is made up of two roots: Audio and Logy. ‘Audio’ refers to ‘hear’ and ‘logy’ to ‘the study of’. In essence, audiology is the study of hearing - as the inner ear is also required...