Strong results spur climb in share prices
The company intends to invest $300m (Ugx. 776b) in prepaid meter system; When complete the system will cut back on bill payments time and increase amounts collected. The utility’s share price hit highs of Ugx. 320 immediately after the results were released. Its share price later returned to Ugx. 303 per share and is currently selling at Ugx. 305 each. The company sold 633 shares for Ugx. 193,065 on April 2nd with outstanding offers of 51,477 shares yet to find ready demand.
Power sales were boosted when the 250MW Bujagali dam went online late last year, decreasing the instance of power black outs.
There is a marked increase in activity on the Uganda Clays counter. 57,500 shares were traded for Ugx. 2m at the Ugx. 35 per share level. Uganda Clays is yet to release its audited 2012 financial results. At the same time, Bank of Kigali announced its audited accounts for the year 2012. The Kigali listed counter announced an interim dividend of Rf 8.83 per share. The dividend will be paid on or about Friday 28th June 2013.
Stanbic bank to pay Ugx. 70b in dividends
Stanbic bank’s profits before tax increased by 9%, hitting Ugx. 178b at the end of 2012. This was largely due to higher interest on deposits, placements, loans, advances, and gains on trading securities. The bank’s share price has hit Ugx. 25 this month, rising from Ugx. 20 per share last month as the banks’ profits grew from Ugx. 164b, a year before.
There were trades for over 151,500 shares by the close of business on April 2nd, with outstanding bids for 2.9m shares unable to net outstanding offers of 2m shares due to a price mismatch. Stanbic recorded a sevenfold increase in fair value gains as the value of its marketable securities hit Ugx. 45.6b from a mere Ugx. 6b the previous year.
Further gains in net foreign exchange income, and net fees and commissions income ramped up profits. Phillip Odera, the Stanbic Bank Uganda boss earlier indicated that the banks operational costs declined after the bank installed a new Finacle banking system the previous year. The new system allows the bank to expand its digital capabilities. Provisions for bad and doubtful debts have increased fourfold to Ugx. 115b in line with the high lending rates that borrowers are currently facing. The industry bad loans ratio has grown to 4.9% from 2.1% in the year 2010. Shareholders are set for a Ugx. 4.88 dividend per share, with a total payout of Ugx. 70b.
DFCU profits drop.
DFCU bank released its financial results for the year ended 2012, showing a 4.8% fall in profit before tax to Ugx. 39.3 b and 5.2% fall in net profit to Ugx.
29.89b.The fall in profit was driven by a 163% increase in provision for bad and doubtful debts during a tough economic environment which saw huge interest rates amid falling inflation. DFCU managed to post a modest 6.7% increase in interest income.
The bank’s total assets grew 4% to Ugx. 981b as net loans and advances grew 12% to Ugx. 554b. Customer deposits grew 12.5% to Ugx. 591b which led to 3% growth in total liabilities as shareholder’s equity increased 17% to Ugx. 121b. The Board of directors have recommended dividend of Ugx. 37.1 per share same as the year 2010, which, if approved at the AGM on 6th June 2013, will be paid to shareholders who appear on the company register as at end of July. By the close of business on the 2nd of April, the DFCU counter was trading steadily at the Ugx. 1,030 per share level with demand and supply equally matched.
Ecobank group results indicate that after tax profits have jumped 39% to $287m (sh742b) at the end of the year 2012 for the groups 33 branch network with revenues hitting the $1.8b mark.
However, the report also shows a negative 10% reduction in East African revenues, despite a 31% growth in the loan book, 26% growth in customer deposits, 23% growth in assets, an 18% growth in operating expenses and a 124% growth in net provision for impairment losses.
“Successful integration of our landmark acquisitions in Ghana and Nigeria, resulting in significantly increased market share in both countries in terms of total assets including investments of $74 million in one-off restructuring costs that will enable us to benefit fully from the enlarged platform,” the Eco bank report reads in part.
KCB bank profits hit by high income taxes
Eco bank results show Uganda loss KCB bank after tax profit for the year ended 31st December showed 89% reduction due to higher operating expenses, income tax charges and losses on bad loans.
The banks financial statements indicate higher interest incomes of sh32b up from the previous year’s sh21.2b; however, after tax profits suffered under a sh2.7b impairment loss on loans and advances. Total operating expenses rose to sh32b up from sh26b made worse by a sh514mtax charge. The diluted and basic earnings per share of the company has dropped massively to sh3.85 per share from a previous sh31.63.