Stanbic Bank shareholders approved a 60 billion shilling payout as dividends at their Annual General Meeting held on Wednesday, 10th May 2017 in Kampala. It represents a 50% increment from the 40 billion UGX paid in 2015 and is equivalent to 1.17 billion UGX dividend per share up from 0.78 1.17 billion UGX the previous year.
Opening the AGM with over 400 shareholders which was one of the best attended since the bank went public just over 11 years ago, the Board Chairman Japheth Katto said, “When arriving at the proposed pay-out figure of 60 Billion UGX the board took 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 of the Bank to ensure there are no adverse effects on capital requirements over the foreseeable future. The dividend was passed unanimously by all the members.
Presenting an overview of the operating environment and the banks key performance highlights Patrick Mweheire Stanbic Chief Executive revealed that their record profit after tax of 191 billion UGX was achieved despite the challenging market environment with rapidly deteriorating asset quality across the sector.
“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 3.1 trillion UGX for 2016, up a record 25% from the prior year in an industry that grew an average of 9.5%,” he said.
Total customer loans and advances completed the year at 2.0 trillion UGX just up 3% from 2015 which was a deliberate part of our strategy in a high-interest rate environment.”
Informing shareholders about proposed changes to the board’s composition Stanbic corporation secretary Candy Wekesa Okoboi announced the nomination of three new non-executive directors Mr. Greg Brackenridge, Ms. Eva Kavuma and Mr. Clive Tasker.
The trio were unanimously approved by show of hands following presentation of their credentials. Mrs Okoboi also announced the voluntary retirement of long serving board member Dr. Samuel Sejjaka after more than ten years of distinguished service to the bank.
Commending Stanbic for its performance NSSF MD Richard Byarugaba stated, “As the largest institutional shareholder in Stanbic, NSSF is extremely pleased with the banks 2016 performance which despite the challenging economic environment registered significant growth. This confirms the bank is being soundly managed and the funds we invested are in safe hands.”
Shareholders were informed that dividend payouts would be effected on or around the 12 June 2017 in accordance with individual shareholders payment instructions.