Stanbic Uganda’s Record Year Signals Bright Future for Ugandan Banking
Stanbic Uganda Holdings Limited has announced a stellar financial performance for the year ending December 31, 2025, with shareholders poised to receive Ushs 360 billion in dividends. This success story isn’t just about impressive numbers; it marks a pivotal moment of leadership transition and underscores the bank’s resilience in a dynamic economic landscape.
A Smooth Transition: Karuhanga Hands the Reins to Kalifungwa
The results represent a high note for outgoing Franchise Chief Executive Francis Karuhanga, and a confident debut year for Mumba Kalifungwa at the helm of the banking subsidiary – the Group’s core business. Karuhanga’s leadership steered the Group through significant growth, setting the stage for Kalifungwa to build upon this momentum.
Uganda’s Economic Upswing Fuels Growth
Stanbic’s performance was bolstered by a strengthening Ugandan economy, which expanded by 6.3% in 2025. Easing monetary conditions, with inflation contained at 3.6% and the Central Bank Rate moderating to 9.75%, created a favorable environment for investment and growth. The Ugandan shilling also saw strengthening, averaging Ushs 3,600 against the US dollar, a positive sign for the economy.
Key Financial Highlights: A Deep Dive
Stanbic Uganda delivered an 11% increase in revenue, staying within its medium-term target range. Crucially, the bank maintained tight cost control, improving its cost-to-income ratio to 47.1%, comfortably below the 50% benchmark. This efficiency translated into a net profit of Ushs 591 billion, a substantial 23.6% increase from the Ushs 478 billion reported in 2024.
Return on equity also saw a significant boost, reaching 26.8%, exceeding the Group’s 20% benchmark. Shareholder value creation was evident in the share price, which rose by 89% over three years, closing at Ushs 60 on December 31, 2025.
Kalifungwa’s First Year: Building on a Strong Foundation
In his inaugural year as Chief Executive, Mumba Kalifungwa focused on balance sheet growth, deepening customer trust, and enhancing operational efficiency. Customer deposits grew by 13% to Ushs 8.0 trillion, while net loans and advances increased by 16.4% to Ushs 5.1 trillion, demonstrating the bank’s continued support for economic activity.
Revenue also strengthened, rising 11% to Ushs 1.4 trillion, driven by both interest income and diversified non-interest revenue streams.
Prudent Risk Management and Financial Strength
Chief Financial Officer Ronald Makata emphasized the Group’s robust financial position, highlighting key prudential metrics well above regulatory requirements. Capital adequacy remained strong at 23%, nearly double the regulatory minimum of 12%. Asset quality was also best-in-class, with a non-performing loans ratio of just 1.7%, significantly below the Group’s 7.5% risk appetite. Liquidity levels were exceptionally strong, with a liquidity coverage ratio of 354%.
Positive Impact Agenda: A Commitment to Sustainable Growth
Looking ahead, Stanbic Uganda 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 like youth entrepreneurship and maternal health.
This strategic direction aligns with Uganda’s national development agenda 2025–2040.
FAQ
Q: What was Stanbic Uganda’s profit after tax for 2025?
A: Ushs 591 billion.
Q: What is Stanbic Uganda’s current cost-to-income ratio?
A: 47.1%.
Q: What is the key focus of Stanbic Uganda’s “Positive Impact” agenda?
A: Driving inclusive and sustainable growth through financial inclusion, enterprise development, and social investment.
Q: How much in dividends will shareholders receive?
A: Ushs 360 billion.
Did you understand? Stanbic Bank Uganda is the nation’s largest lender by assets, revenue, and deposits.
Explore more insights into Uganda’s financial sector here.
