The ability to keep operating costs below the belt is critical to the success of financial institutions. The cost to income ratio is such critical measure in assessing profitability. Being a listed company, Stanbic is under pressure to perform. While Stanbic Bank remains the biggest bank, it is struggling with high opex (operating costs) which are eating into their profits. For example, cost to income ratio hit an all-time high 67% in 2010, 47.2% in 2011 and 40% in 2012.
Japheth Katto is the new Chairman of the Board of Stanbic Bank Uganda Limited. Mr. Katto is a consultant in corporate governance, capital markets, pensions and leadership development. He was until the end of 2013 the CEO of Capital Markets Authority (CMA) Uganda for 16 years.
“If brick and mortar model was a huge success factor for bank operations, Crane Bank wouldn’t have collapsed so suddenly,” noted one bank analysts.
On February 13th the Central Bank of Uganda (BoU) cut its key policy rate by 5 basis points, to 9%.
Crane bank has got into partnership with the European Investment Bank (EIB) to make accessibility for affordable credit for expansion available to the small and medium sized firms. Through this partnership, the EIB released Euros 28m (Shs 94bn) to Crane bank for onward lending to local businesses.
Accacia Mall in Kamwokya boasts of banks with a 24/7 working time schedule.
Resilient gusts blow the streets of Kampala early in the morning as pedestrians trod across the pavements of Jinja Road towards the prominent Kampala Road, a business hub in the capital.
Ring. Ring. You are woken up by early morning call from your IT manager with the dreaded news that the bank was robbed during the night.