Stanbic holdings half year return on average assets (ROaA) remained flat at 3.60% for the first six months of the year 2022 while the its return on average equity (ROaE) declined to 21.6% from 23.20% according to its most recent data release.
ROaE is a financial ratio that measures the performance of a company based on its average shareholders’ equity outstanding. A rising ROaE indicates that management is deploying shareholder capital more efficiently.
It indicates that management is increasing profit generation without needing as much capital. The lower figure is likely due to challenging economic conditions as Uganda’s economy contracted in the quarter to March 2022.
Despite that, pre-tax earnings increased 7.48% to Ugx218.35billion, after tax earnings improved 4.66% to Ugx162.07 billion and total incomes slightly increased to Ugx474.56 billion from Ugx464.99 billion.
Furthermore, net interest incomes were up 7.31% to Ugx264.05 billion and Cost to income (CTI) ratio came in at 49.91%, slightly below 50.43% in June 2021 indicating greater efficiency internally.
Stanbic’s total assets grew 6.40% to Ugx9.32 trillion, while total liabilities advanced by 5.49% to Ugx7.74 trillion.
