Kampala – Shareholders of Stanbic Uganda Holdings Limited are poised to receive a substantial Ushs 360 billion dividend payout following a year of strong financial performance in 2025. The announcement underscores the bank’s sustained growth, disciplined financial management, and resilience in a steadily improving Ugandan economy. This significant return to investors comes at a pivotal moment for the financial institution, marking a leadership transition and continued confidence in Uganda’s economic prospects.
The positive results reflect a broader trend of economic expansion within Uganda. The country’s economy grew by 6.3% in 2025, an increase from the 6.0% recorded the previous year, fueled by easing monetary conditions and renewed investor optimism. This growth is further supported by anticipation surrounding the nation’s emerging oil production capabilities, which are expected to contribute significantly to long-term economic stability. The favorable macroeconomic climate, coupled with Stanbic Uganda’s strategic execution, has positioned the bank for continued success in the financial sector.
The dividend payout represents a significant return for Stanbic Uganda shareholders, demonstrating the bank’s commitment to delivering value. The bank’s performance is particularly notable given the ongoing fiscal pressures within the country, highlighting its ability to navigate challenges and maintain profitability. The Ugandan shilling also experienced strengthening against the US dollar, averaging Ushs 3,600 compared to Ushs 3,755 in 2024, a positive indicator of improved foreign exchange inflows and reserve buffers, according to data from the Bank of Uganda. Bank of Uganda
Leadership Transition and Strategic Execution
The strong financial results coincide with a significant leadership shift at Stanbic Uganda. Francis Karuhanga, the outgoing Franchise Chief Executive, concluded his tenure on a high note, overseeing a period of sustained growth. Simultaneously, Mumba Kalifungwa delivered a confident first year leading Stanbic Bank Uganda, the Group’s primary business unit. This seamless transition underscores the strength of the bank’s leadership pipeline and its commitment to continuity.
Kalifungwa’s first year saw strong balance sheet growth, driven by increased customer trust and enhanced operational efficiency. Customer deposits grew by 13% to Ushs 8.0 trillion, up from Ushs 7.1 trillion, demonstrating continued confidence in the bank’s stability and service offerings. Net loans and advances also increased by 16.4% to Ushs 5.1 trillion, reflecting improved credit turnaround times and disciplined risk assessment, supporting economic activity across key sectors.
Financial Highlights and Performance Metrics
Stanbic Uganda’s revenue increased by 11%, aligning with the Group’s medium-term targets. Crucially, the bank maintained tight cost control, improving its cost-to-income ratio to 47.1%, comfortably below the 50% threshold. This efficiency contributed to a 23.6% increase in net profit, reaching Ushs 591 billion, up from Ushs 478 billion in 2024. The return on equity also strengthened to 26.8%, exceeding the Group’s 20% benchmark and reinforcing its ability to generate superior shareholder returns.
Shareholder value creation was further evidenced by a steady 89% rise in the share price over a three-year period, closing at Ushs 60 as of December 31, 2025. “Our robust earnings of Ushs 591 billion and a return on equity of 26.8% reflect the strength of our strategy, the resilience of our franchise, and our unwavering focus on delivering long-term shareholder value,” said Francis Karuhanga, Chief Executive of Stanbic Uganda Holdings Limited.
Strong Fundamentals and Future Outlook
The bank’s robust financial position is underpinned by strong capital adequacy, with a total capital ratio of 23%, nearly double the regulatory minimum of 12%. This provides a substantial buffer to absorb potential shocks and support future growth. Asset quality remains high, with a non-performing loans ratio of 1.7%, significantly below the Group’s risk appetite of 7.5%, and a credit loss ratio of 0.4%. Liquidity levels are also exceptionally strong, with a liquidity coverage ratio of 354% and a net stable funding ratio of 176%, ensuring the bank is well-positioned to meet its obligations.
“Our balance sheet strength and disciplined risk management continue to position us for sustainable growth, while providing resilience in an evolving operating environment,” stated Ronald Makata, Chief Financial Officer.
Looking ahead, Stanbic Uganda has reaffirmed its commitment to inclusive and sustainable growth through its “Positive Impact” agenda, approved by the Board in 2025. This agenda focuses on financial inclusion, enterprise development, infrastructure financing, climate resilience, and corporate social investment in areas such as youth entrepreneurship, maternal health, and environmental conservation. “Our Positive Impact agenda is a clear expression of our purpose—Uganda is our home, and we are committed to driving her growth in a way that is inclusive, sustainable, and far-reaching,” said Mumba Kalifungwa.
The bank’s strategic direction is closely aligned with Uganda’s national development agenda 2025–2040, signaling a long-term commitment to the country’s economic progress. Stanbic Uganda will continue to monitor macroeconomic conditions and adapt its strategies to ensure continued success and value creation for its stakeholders.
Disclaimer: This article provides information regarding financial performance and should not be considered financial advice. Investors should consult with a qualified financial advisor before making any investment decisions.
Share your thoughts on Stanbic Uganda’s performance and its impact on the Ugandan economy in the comments below. Please also share this article with your network to spread awareness of this important economic development.
Related reading
