East Africa market watch

Stanbic Bank Uganda has reported a 16.2% increase in net profit, setting a positive tone for the earnings season in East Africa. Pamela Akidi, Retail Sales Manager Global Markets at Stanbic Uganda, highlighted the key factors contributing to this growth in a recent CNBC Africa interview. Revenue growth was a pivotal driver, with net interest income and trading revenue showing significant increases. Operating costs were tightly managed, and disciplined risk management led to lower impairment numbers. Looking ahead, Stanbic Uganda aims to sustain this momentum by focusing on client experience and business growth across all segments. The bank expects loans to grow by 10% and deposits by 15% in 2025. Efforts will also be made to support sectors impacted by COVID, such as SACOs, through tailored product offerings. Furthermore, the currency outlook remains stable, supported by strong inflows from manufacturers and oil companies, as well as robust commodity and remittances flow. Despite the positive outlook, there may be slight pressure on the Ugandan shilling in the coming months due to factors such as reduced coffee season and dividend payments. However, overall stability is expected to be maintained. Stanbic Uganda's robust performance reflects a resilient banking sector in East Africa, with a strategic focus on sustainable growth and risk management practices. As the region navigates through economic challenges, Stanbic Uganda's success serves as a beacon of hope for the industry.