Stanbic Uganda Holdings Limited (SUHL) has reported a 28.2% increase in net profit for the first half of 2026, reflecting strong revenue growth, improved asset quality and tighter cost management amid continued expansion of its lending and investment activities.
The group’s Profit after Tax rose to Shs 356.8 billion for the six months ended June 30, 2026, from Shs 278.4 billion recorded in the same period last year.
The strong performance has also translated into higher returns for shareholders, with the Board approving an interim dividend of Shs 220 billion, representing a 57.1% increase from the previous payout. The dividend amounts to Shs 4.30 per share.
The results position Stanbic among Uganda’s leading financial institutions as the economy continues to expand, with banks playing an increasingly important role in financing private-sector investment, trade and national development.
Revenue growth
Stanbic’s total income increased by 21.2% to Shs 830.3 billion, supported by growth in both interest and non-interest income. Net interest income rose by 16.7% to Shs 433.6 billion, while non-interest revenue grew by 26.4% to Shs 396.6 billion, largely supported by stronger trading activity.
Non-interest income now accounts for 47.8% of the group’s total income, highlighting the growing importance of diversified revenue streams beyond traditional lending.
The group also maintained a firm grip on operating costs, which increased by 14%, significantly slower than the 21.2% growth in income. This created a positive 7.2% “jaws” effect and helped reduce the cost-to-income ratio to 44.3%.
Improved asset quality also supported profitability during the period through a net release in credit impairments and recoveries from loans previously written off.
The stronger earnings lifted Stanbic’s return on average equity to 30.4%, up from 26.9% in June 2025.
Balance sheet expands
The group’s balance sheet continued to strengthen during the period, with total assets increasing by 13.9% year-on-year to Shs 13.4 trillion. Customer deposits rose by 9.4% to Shs 9.2 trillion, providing a stronger funding base for the group’s lending activities.
Net loans and advances to customers increased by 8.2% to Shs 5.35 trillion, reflecting continued demand for financing from households and businesses.
Mark Ocitti Ongom, the chief executive of Stanbic Uganda Holdings Limited, said the group’s commercial strategy remains closely aligned with Uganda’s broader economic ambitions.
“Our commercial strategy is aligned with national aspirations; over Shs 1 trillion of current lending supporting the tenfold growth ambition,” Ongom said. He said Stanbic’s strategy is linked to Uganda’s ambition of growing the economy from about US$50 billion to US$500 billion by 2040.
Stanbic Bank Uganda performance
SUHL’s anchor subsidiary, Stanbic Bank, officials said, is increasingly directing capital towards sectors identified as critical to this transformation. About 20% of its Shs 5.3 trillion loan book is currently invested in agro-industrialisation, tourism, mining, and science and technology, collectively referred to as the ATMS sectors.
The approach reflects a shift in the banking sector towards financing activities that can expand production, create employment and deepen Uganda’s productive capacity.
Mumba Kenneth Kalifungwa, the chief executive of Stanbic Bank Uganda, said the financial performance must ultimately translate into wider economic and social value.
“As we release our financial results for the first half of 2026—highlighted by a robust Profit After Tax of Shs 357 billion, a 28.2% growth year-on-year, and total assets expanding to Shs 13.4 trillion—our commitment is to ensure that every shilling of commercial strength translates directly into societal value,” Kalifungwa said.
During the first half of the year, the group secured nearly half a trillion shillings in global funding partnerships to support various development initiatives.
These included a Shs 20 billion grant from the Gates Foundation targeting women entrepreneurs and a Shs 420 billion climate-resilience credit line from the European Investment Bank.
The funding is expected to strengthen Stanbic’s ability to support businesses and projects addressing some of Uganda’s key development priorities, including climate resilience and women’s economic participation. The group also deployed Shs 64 billion in youth loans and invested Shs 60 billion in renewable energy during the six months.
The financing forms part of a broader effort to direct commercial capital towards emerging businesses, young entrepreneurs and sustainable economic activities.
Stanbic’s financial performance has also been accompanied by increased support for small and medium enterprises, which remain central to employment and private-sector growth in Uganda.
Through the Stanbic Business Incubator, the group supported 33,850 SMEs during the first half of 2026, while 220 businesses were helped to formalise their operations. The incubator also facilitated Shs 40 billion in loans to small businesses that had undergone capacity-building programmes.
Catherine Poran, Chief Executive of Stanbic Business Incubator, said building the competitiveness of businesses is essential for unlocking access to capital and markets.
“When businesses become competitive, they become investable. When they become investable, they create economic and commercial value,” Poran said.
The support comes at a time when access to affordable finance, business skills and formal markets remains a major constraint for many small enterprises.
By combining financing with business development support, Stanbic is seeking to improve the ability of SMEs to survive, scale and attract investment.
The group’s operating structure brings together five businesses: Stanbic Bank Uganda, the commercial banking arm; Stanbic Business Incubator, which focuses on enterprise development; SBG Securities Uganda, which provides brokerage and asset management services; Stanbic Properties, which manages real estate interests; and FlyHub Uganda, the group’s digital technology transformation entity.
The strong first-half performance therefore comes as Stanbic continues to position itself not only as a financial services provider, but also as a source of capital for businesses and sectors expected to drive Uganda’s next phase of economic growth.
With profitability, deposits, assets and lending all registering growth, the group enters the second half of 2026 from a position of stronger financial capacity while facing the wider challenge of ensuring that increased commercial activity translates into sustainable investment, jobs and productivity across the economy.
