KAMPALA, March 28 Stanbic Bank Uganda's
2016 pretax profit rose 24.9 percent, helped by business
diversification that spurred a increase in non-interest revenue,
the east African nation's largest lender by assets said on
The bank, part of South Africa's Standard Bank and
listed on the Uganda Stock Exchange, said pre-tax profit rose to
253.9 billion Ugandan shillings ($70.33 million) in 2016, up
from 203.3 billion the previous year.
The bank said a diversified business model had helped them
absorb economic shocks and underpin growth.
"This is the major reason why our revenues and earnings have
grown," the bank said in results published in local media adding
that non-performing loans in the industry caused by weak
Uganda's banking sector non-performing loans stood at 10.5
percent in December, up from 7.7 percent in September, according
to central bank data.
The results showed the bank's income from trading in foreign
exchange, government debt and other trading activities climbed
28 percent last year from 2015.
A dividend of 1.172 shillings has been recommended for the
year, the bank said.
($1 = 3,610.0000 Ugandan shillings)
(Reporting by Elias Biryabarema, editing by Clement
Uwiringiyimana and Louise Heavens)