Stanbic Uganda Holdings Limited has reported a strong set of financial results for the year ended 31 December 2025, with shareholders set to receive Ushs360 billion in dividends, underscoring the Group’s sustained growth, disciplined execution, and resilient business model.
The results mark a significant leadership transition moment, with outgoing Franchise Chief
Executive Francis Karuhanga closing his final year at the helm on a high, and Mumba Kalifungwa
delivering a confident first year leading the banking subsidiary—the Group’s anchor business.
Stanbic’s performance was delivered against a steadily improving macroeconomic environment.
Uganda’s economy expanded by 6.3% in 2025, up from 6.0% the previous year, supported by
easing monetary conditions and renewed investor confidence.
Inflation remained well contained at an average of 3.6%, while the Central Bank Rate moderated
to 9.75%. The Ugandan shilling strengthened to an average of Ushs 3,600 against the US dollar,
compared to Ushs 3,755 in 2024, reflecting improved foreign exchange inflows and reserve
buffers.
Despite ongoing fiscal pressures, market sentiment was buoyed by progress toward first oil
production, reinforcing confidence in Uganda’s medium-term growth trajectory.
Delivering consistent, high-quality growth
Stanbic Uganda delivered a well-balanced financial performance, reflecting both growth and
operational discipline. Revenue increased by 11%, within the Group’s medium-term target range,
while cost efficiency remained tightly managed, with the cost-to-income ratio improving to 47.1%,
comfortably below the 50% threshold.
Return on equity strengthened to 26.8%, significantly exceeding the Group’s 20% benchmark
and reinforcing the business’s ability to generate superior shareholder returns. This performance
translated into net profit of Ushs 591 billion, a 23.6% increase from Ushs 478 billion in 2024.
Shareholder value creation remained evident in the Group’s market performance, with the share
price recording a steady 89% rise over a 3-year period, closing at Ushs 60 as of December 31,
2025, reflecting sustained investor confidence and strong earnings momentum.
“Our robust earnings of Ushs 591 billion and a return on equity of 26.8% reflect the strength of
our strategy, the resilience of our franchise, and our unwavering focus on delivering long-term
shareholder value,” said Francis Karuhanga, Chief Executive of Stanbic Uganda Holdings
Limited.
Banking subsidiary anchors performance
The Group’s strong results were underpinned by the performance of Stanbic Bank Uganda,
which continues to be the primary driver of the franchise.
In his first year as Chief Executive, Mumba Kalifungwa oversaw strong balance sheet growth,
supported by deepening customer trust and enhanced operational efficiency.
Customer deposits grew by 13% to Ushs 8.0 trillion, up from Ushs 7.1 trillion,
reflecting sustained confidence in the bank’s stability and service offering.
Net loans and advances increased by 16.4% to Ushs 5.1 trillion, driven by improved credit
turnaround times and disciplined risk assessment. This growth underscores the bank’s continued
role in supporting economic activity across key sectors.
Revenue growth also strengthened, rising 11% to Ushs 1.4 trillion, supported by solid interest
income and diversified non-interest revenue streams.
“This performance reflects the collective effort of our people, the trust of our clients, and the
strength of our partnerships. I am encouraged by the momentum we have built and confident in
our ability to sustain it,” said Mumba Kalifungwa, Chief Executive of Stanbic Bank Uganda.
Strong fundamentals signal a healthy, resilient business
Chief Financial Officer Ronald Makata highlighted the Group’s robust financial position, with all
key prudential metrics remaining well above regulatory requirements.
Capital adequacy remained strong, with a total capital ratio of 23%, nearly double the regulatory
minimum of 12%, providing a substantial buffer to absorb shocks while supporting future growth.
Asset quality remained best-in-class, with the non-performing loans ratio at 1.7%, significantly
below the Group’s risk appetite of 7.5%. The credit loss ratio improved further to 0.4%, reflecting
prudent risk management and a high-quality loan book.
Liquidity levels remained exceptionally strong, with the liquidity coverage ratio at 354%, more
than three times the regulatory requirement, ensuring the bank is well-positioned to meet short-
term obligations even under stressed conditions. The net stable funding ratio of 176% further
underscores a stable and well-diversified long-term funding base.
“Our balance sheet strength and disciplined risk management continue to position us for
sustainable growth, while providing resilience in an evolving operating environment,” said Ronald
Makata, Chief Financial Officer.
Kampala
Committed to Uganda’s long-term growth Looking ahead, Stanbic Uganda reaffirmed its commitment to driving inclusive and sustainable growth through its Positive Impact agenda, approved by the Board in 2025, as the Group
approaches 35 years of operations in Uganda in 2026.
The agenda reflects a deliberate focus on advancing financial inclusion and access, supporting
enterprise development and job creation, financing integrated infrastructure, enabling climate
resilience, and deepening corporate social investment across youth entrepreneurship, maternal
health, and environmental conservation.
“Our Positive Impact agenda is a clear expression of our purpose—Uganda is our home, and we
are committed to driving her growth in a way that is inclusive, sustainable, and far-reaching,” said
Mumba Kalifungwa.
This strategic direction is closely aligned to support the national development agenda
2025–2040.