Stanbic saw one of its key income earners, the Non-Interest Revenue (NIR), that is money earned from Non-Sufficient Funds (NSF) charge, monthly account service charges, inactivity fees, check and deposit slip fees, and advice fees, drop due to business disruptions occasioned by the Covid-19 pandemic.
In the financial results, published on Thursday, Stanbic said the money it lent to customers grew to 2.9 trillion Shillings in 2019 from 2.5 trillion Shillings, a year before - a growth of 14 per cent. Outgoing Chief Executive Patrick Mweheire described the results as a “great performance.
Juuko will replace Patrick Mweheire that has been the chief executive since 2015 but is now heading to Nairobi Kenya to be the regional chief executive for Stanbic operations for Kenya, Uganda, South Sudan, Ethiopia, and Tanzania.
Proscovia Nabbanja, the CEO of UNOC told reporters in Kampala on Wednesday that the money will be needed in a phased manner in five years. This means each year, the company should be receiving at least $168m (UGX 618bn).
Mweheire informed a gathering at Sheraton in Kampala that the entire value of cryptocurrencies around the world was just USD 1trillion, the same size as one company like Apple. He said cryptos are not backed by any assets and that the lack of regulation anywhere around the world makes them a no go zone.
The reorganization will see the formation of a holding company where the banking business will be transferred as a subsidiary. The company will then invest in non-banking ventures. A holding company refers to a corporation that owns enough voting stock in another company to control its management and policies.
A Bank of Uganda lending survey report for the fourth quarter of 2017/18 budget has shown that commercial banks expect an increase in loan default by enterprise but improvement in payment of loans to households in the first quarter of 2018/19 financial year.