By Our Reporter
Stanbic Bank shareholders approved a Ushs 60 billion payout as dividends at their Annual General Meeting held on 10th May in Kampala. It represents a 50% increment from the Ushs 40 billion paid in 2015 and is equivalent to Ushs 1.17 dividend per share up from Ushs 0.78 the previous year.
Opening the AGM with over 400 shareholders the Board Chairman Japheth Katto said, “2016 was yet another profound year for Stanbic Bank where we continued to ensure the sustainable growth of the bank and post impressive results despite the global and local economic headwinds. A central factor to our sustainability is our commitment to support and enable the transformation of the lives and businesses in the communities where we operate. To that end Stanbic invested more than Ushs 1.1 billion on CSR initiatives in 2016 a 15% increment from 2015.”
He explained the board agreed on the dividend by taking into account projected business growth and investment prospects and regulatory capital adequacy requirements.
“This is having considered the current and projected future financial position of the bank and impact of stress testing of the capital adequacy position to ensure there are no adverse effects on capital requirements over the foreseeable future,” he added.
Patrick Mweheire the Stanbic CEO revealed, “Our record profit after tax of Ushs 191 billion was achieved despite the challenging market environment with rapidly deteriorating asset quality across the sector. Our 2016 revenue of Ushs 643 billion was a balanced mix of net-interest income and non-interest revenue, reflecting the strength of our diversified business model. Our focus on customers paid off as more of them entrusted us with their deposits and opportunities to serve more of their financial needs, as a result, customer deposits reached a record Ushs 3.1 trillion for 2016, up a record 25% from the prior year in an industry that grew an average of 9.5%. Total customer loans and advances completed the year at Ushs 2 trillion just up 3% from 2015 which was a deliberate part of our strategy in a high-interest rate environment.”
During the meeting, shareholders also approved the appointmentn of three new non-executive directors including Greg Brackenridge, Eva Kavuma and Clive Tasker.
Nyambura is a senior journalist based in Kampala