Stanbic Uganda Holdings, the country’s largest bank, has reported a profit of Shs 278 billion for the first half of 2025, an 18 percent increase from last year, underscoring its position as a key driver of economic growth and financial stability.
The results pushed the bank’s return on equity to 27 percent, surpassing the group’s 20 percent target. Loan growth and strong customer deposits supported the performance, but analysts point to Stanbic’s diversified income streams and cost discipline as the real story behind its resilience.
The loan book expanded by 12.9 percent to Shs 4.9 trillion, while customer deposits rose nearly 29 percent to Shs 8.4 trillion. Non-interest revenue climbed 14 percent to Shs 313.7 billion, fueled by fee income and trading gains. Credit losses remained negligible at 0.2 percent, while the cost-to-income ratio stayed below 50 percent.
In a move welcomed by investors, the bank declared an interim dividend of Shs 140 billion, translating to 2.73 shillings per share.
Stanbic also demonstrated its impact beyond the balance sheet. It paid Shs 273 billion in taxes 37 percent higher than last year and facilitated an additional Shs 5.8 trillion in collections for the Uganda Revenue Authority.
The bank extended Shs 968 billion in loans to small and medium enterprises and Shs 398 billion to agriculture, including Shs 65 billion channeled through farmer cooperatives. Its investment arm saw assets under management soar more than threefold to Shs 216 billion, reflecting growing interest among retail investors in unit trusts.
Through initiatives in financial literacy, youth and women entrepreneurship, and partnerships with schools and farmer groups, Stanbic is deepening its footprint in underserved communities. Chief Executive Mumba Kalifungwa said the bank’s strength lies not only in its numbers but also in its “measurable impact on communities and sectors.”
Uganda’s macroeconomic backdrop remains favorable, with GDP growth at 6.5 percent in the first half of the year, inflation easing to 5.4 percent, and foreign direct investment rising to $1.5 billion.
While risks remain from property market oversupply to stiffening competition in digital banking, Stanbic’s strategy, according to Group CEO Francis Karuhanga, is aligned with Uganda’s long-term development goals.