Commercial banks have revealed that they will also hike interest rates after the Central Bank hiked the lending rate. Over the past couple of months, Bank of Uganda has increased the CBR to 8.5%.
Anne Juuko, the chief executive officer of Stanbic Uganda said this move by Bank of Uganda is apparently the only solution to inflation. However, it also undermines growth since commercial banks are forced to adjust their interest rates upward.
Juuko made these remarks at Stanbic Uganda Holdings Limited’s half-year performance results. It apparently recorded a profit after tax of Shs 162 billion.
This is up from Shs 158 billion recorded during the same period last year, indicating a 4.7% improvement.
Reports have shown that the first half of 2022 presented a complex combination of ‘head’ and ‘tail’ winds. These substantially affected both the global and the local economies.
“We resolved to focus on delivering products and solutions that are attuned to these extraordinary times, keeping the customer at the center of all we do, and being relevant in the community in which we serve,” she said.
Juuko explained that Stanbic Uganda Holdings managed to deliver acceptable value for both customers and shareholders. Andrew Mashanda, from Stanbic Bank said their anchor subsidiary, Stanbic Bank Uganda Limited largely gave their performance drive.
Other subsidiaries of Stanbic Uganda Holdings Limited are: Stanbic Properties, SBG Securities, FlyHub and Stanbic Business Incubator.
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