Stanbic bank Uganda is expected to have a much better year after the country's biggest bank recorded a 19.2 per cent jump in profit for the first half of 2014. The bank announced a profit of Shs 68bn for the first six months of this year.
"The results will look a lot better from what we saw in 2013," Philip Odera, the managing director of Stanbic, said. He was announcing the bank's results at Sheraton hotel last week.
The improvement in the numbers is largely attributed to a drop in the amount of bad loans within the bank's books.
"We did anticipate this [recovery] soon. We have decided not to lend in a way that led to these NPLs [non-performing loans]. We are conscious and prudent in the way we lend trying to clean the balance sheets," Odera said.
Bank of Uganda said recently that there was growth in the amount of loans the private sector was signing up for, with a percentage increase to 14.1 per cent as of August, up from 7.8 per cent early in the year.
Between January and June, 2014, Stanbic saw its loans and advances to customers increase to Shs 1.6tn, from Shs 1.4tn during the same period in 2013. Odera pointed to the mortgage industry as one sector that had recovered.
Copyright The Observer. Distributed by AllAfrica Global Media (allAfrica.com).