Stanbic Uganda Holdings Limited has reported strong financial results for the year ended December 31, 2025, with shareholders set to receive Shs360 billion in dividends.
The performance underscores the Group’s sustained growth, disciplined execution and resilient business model, while also marking a leadership transition at the top of the organisation.
Outgoing Chief Executive Francis Karuhanga closed his final year at the helm on a high, as Mumba Kalifungwa completed his first year leading Stanbic Bank Uganda, the Group’s main operating subsidiary.
Strong Financial Performance
Stanbic reported net profit of Shs591 billion, representing a 23.6 per cent increase from Shs478 billion in 2024.
Revenue grew by 11 per cent, while cost efficiency improved, with the cost-to-income ratio declining to 47.1 per cent—below the Group’s 50 per cent target.
Return on equity rose to 26.8 per cent, surpassing the Group’s benchmark of 20 per cent and highlighting strong value creation for shareholders.
The Group’s share price has also recorded significant growth, rising by 89 per cent over three years to close at Shs60 as of December 31, 2025.
“Our robust earnings and strong return on equity reflect the resilience of our business and our continued focus on delivering long-term shareholder value,” Karuhanga said.
Banking Unit Drives Growth
The Group’s performance was largely driven by Stanbic Bank Uganda, which recorded strong growth across key indicators.
Customer deposits increased by 13 per cent to Shs8.0 trillion, up from Shs7.1 trillion, reflecting sustained confidence in the bank.
Net loans and advances grew by 16.4 per cent to Shs5.1 trillion, supported by improved credit processing and disciplined risk management.
Total revenue rose to Shs1.4 trillion, driven by growth in both interest and non-interest income streams.
“This performance reflects the collective effort of our people, the trust of our clients and the strength of our partnerships,” Kalifungwa said.
Strong Capital and Liquidity Position
Chief Financial Officer Ronald Makata said the Group maintained strong capital and liquidity levels, with all key prudential indicators remaining well above regulatory requirements.
The total capital adequacy ratio stood at 23 per cent, nearly double the regulatory minimum of 12 per cent.
Asset quality remained strong, with the non-performing loans ratio at 1.7 per cent, significantly below the Group’s risk threshold of 7.5 per cent.
Liquidity levels were also robust, with a liquidity coverage ratio of 354 per cent—more than three times the regulatory requirement—while the net stable funding ratio stood at 176 per cent.
“Our balance sheet strength and disciplined risk management position us for sustainable growth,” Makata said.
Outlook and Growth Agenda
The Group said its performance was supported by a stable macroeconomic environment, with Uganda’s economy growing by 6.3 per cent in 2025, alongside controlled inflation and improved investor confidence.
Looking ahead, Stanbic reaffirmed its commitment to inclusive and sustainable growth through its “Positive Impact” agenda, which focuses on financial inclusion, enterprise development, infrastructure financing, climate resilience and social investment.
The strategy aligns with Uganda’s long-term development priorities as the Group approaches 35 years of operations in 2026.
