By KT Reporter
Stanbic Uganda Holdings Limited shareholders are set to receive a 140 billion shillings payout. This is the company directors’ proposed dividend payout for the first half of 2025, pending regulatory approval.
The proposed payout is a notable increase compared to the 120 billion shillings distributed to shareholders in the same period last year. According to the company managers, this increment is a result of the increased profitability as indicated in the bank’s mid-term performance report.
According to the half-year report, the Group posted 278 billion shillings in profit after tax for the six months ending June 2025, an 18 percent increase compared to the same period last year. “This strong profitability provided the cushion for the directors’ decision to recommend the 140 billion shillings pay-out.”
At the same time, the bank’s contribution to government revenues was significant, with up to 273 billion shillings in taxes during the first half of 2025, a 37 percent increase from 2024. In addition, through its banking platforms, the bank facilitated over 5.8 trillion shillings in tax collections on behalf of the Uganda Revenue Authority (URA).
“This dual achievement, rewarding shareholders and supporting national revenue mobilisation, illustrates the balance we seek to achieve as an institution. We believe in creating value not only for investors but also for the country’s development,” said Francis Karuhanga, SUHL CEO.
For many Ugandan investors, dividends represent more than just financial returns; they are a critical source of income. With inflationary pressures eating into household budgets, reliable dividend payouts provide much-needed relief to families and institutions alike. Pension funds, insurance companies, and savings cooperatives, which collectively hold large stakes in Stanbic, will particularly benefit from this year’s interim distribution.
The proposed dividend also comes at a time of global economic uncertainties from geopolitical tensions to commodity price fluctuations, which are affecting financial institutions worldwide, and this is also seen as reinforcement to Uganda’s banking industry.
Mumba Kalifungwa, CEO of Stanbic Bank Uganda, noted that the bank’s strategy of balancing corporate and retail operations continues to pay off.
“In the first half of the year, we saw a 17 percent rise in corporate lending and a 52 percent increase in deposits. Our retail and commercial banking units also posted significant growth. This broad-based performance means we can remain profitable while reducing reliance on a single revenue stream,” Kalifungwa said.
According to Ronald Makata, Chief Financial and Value Management Officer, the Group maintained a cost-to-income ratio below 50 percent and kept credit losses at just 0.2 percent. He said that such discipline ensured profitability was not eroded by overhead costs or risky lending.
In the first half of 2025 alone, the bank injected 288 billion shillings in new loans to small and medium enterprises (SMEs), bringing its total SME loan book to 968 billion shillings. These investments are particularly targeted at youth- and women-led businesses, sectors seen as vital for inclusive growth. This approach reflects the broader purpose of Stanbic Uganda Holdings Limited, a diversified financial services group that also runs a business incubator to nurture local entrepreneurs.
Looking ahead, bank officials say it remains committed to maintaining its dual mandate, rewarding shareholders while supporting Uganda’s national development agenda.
As a subsidiary of the Standard Bank Group, Africa’s largest lender by assets, Stanbic is expected to continue leveraging regional expertise, scale, and technology to maintain market leadership.
For shareholders, the 140 billion shillings dividend is more than just a financial payout; it is proof that a strong and profitable banking sector can be a key pillar of both fiscal stability, inclusive growth and personal financial development.
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