Standard Chartered Uganda Achieves 503% Profit Surge Amid Strategic Shifts

Standard Chartered Bank Uganda posted profits after tax of Shs115.1 billion for the year ended 2025, up from Shs19.1 billion the previous year—a remarkable 503% jump that caught attention in a sector where double-digit gains are the norm.

Bank chairperson Maria Kiwanuka described 2025 as a year of ‘transition and transformational growth,’ while CEO Sanjay Rughani highlighted ‘demonstrable progress.’ This performance stood out against Uganda’s banking industry’s record Shs1.9 trillion net profit, a 36% rise, with assets growing 13.7% to Shs61.3 trillion per Bank of Uganda figures.

Competitors like Stanbic, Centenary, and Absa saw profit growths of 23-25%, making Standard Chartered’s results exceptional. The 2024 dip to Shs19 billion was largely due to an 80.8% effective tax rate, which dropped to 21.4% in 2025, boosting the bottom line by about Shs25 billion. Experts cite possible deferred tax adjustments or reduced transfer pricing fees to the London parent amid URA’s tighter scrutiny.

A key move was selling the wealth and retail banking units to Absa last October, allowing a focus on corporate and investment banking. This enabled Shs2.7 trillion in infrastructure financing for power, water, and roads. Deposits fell to Shs1.31 trillion and loans to Shs583 billion, but operating costs dropped 24% to Shs112.7 billion via a ‘fit for growth’ program emphasizing digitization and efficiency.

Additional factors included a Shs20.1 billion gain from discontinued operations, profits from continuing operations rising to Shs94.9 billion, lower loan loss provisions at Shs4.6 billion, and stronger capital ratios at 26.62%.

Source: Daily Monitor (Uganda)