Suhl Annual Report 2021 - Final

FINANCIAL STATEMENTS
Financial Statements for the year ended 31 December 2021 i
Stanbic Uganda Holdings Limited
ANNUAL REPORT
AND FINANCIAL
STATEMENTS 2021
Stanbic Uganda
STANBIC UGANDA HOLDINGS LIMITED
A member
Annual report and of Standard
financial statements Bank31Group
year ended December 2021
ANNUAL REPORT
ii
Contents
ABOUT STANBIC UGANDA HOLDINGS LIMITED
(SUHL)
6 About This Report
Introduces Stanbic Uganda Holdings Limited and its
7 Organisation Structure Overview
subsidiaries (together ‘the Group’ or ‘Stanbic Uganda
9 Who We Are Group’). Our competitive advantages which frames our
value story .
10 Standard Bank Group Footprint
11 Stanbic Bank Footprint in Uganda
LEADERSHIP INSIGHT
Our leaders discuss the dynamics in our markets and
14 Chairman’s Statement how these are influencing our strategic priorities and our
progress is achieving them.
18-21 Chief Executives Statements
HOW WE CREATE VALUE
Connects the emerging of trends affecting our business
24 How We Create Value and our continent, and the issues that matter most to our
stakeholders, to how we are accelerating our strategy and
26 Our Strategy organising the Group to deliver sustainable shared value.
28 Our Strategic Progress
BUSINESS REVIEW
32 2021 at a Glance
33 2021 Awards
33 Stanbic Bank’s Credit Rating
34 Operating and Financial Review
37 5 Year Performance Looks at our performance for the year and prospects for
the year ahead in relation to our strategic value drivers.
38 Key Performance Indicators
39 Business Unit Reviews
• Corporate and Investment banking
• Business and Commercial Clients
• Consumer High Net Worth Clients
RISK MANAGEMENT AND CONTROL
46 Chief Risk Officer’s Statement
46 Risk Governance and Oversight
49 Risk types in Banking Activities Our risk universe and approach to risk management and
control.
54 Risk Appetite and Stress Testing
55 Emerging Enterprise Risks
SUSTAINABILITY REPORT
60 Introduction
67 Our Sustainability Impact
Assessment of Stanbic Uganda Holding Limited's Social,
83 Building a Responsible Business Economic and Environmental (SEE) impacts.
97 Coyporate Social Responsibility
102 Reporting Practices

Annual report and financial statements year ended 31 December 2021
ANNUAL REPORT
iii
CORPORATE GOVERNANCE
108 Board of Directors
110 SBUL Executive Committee
111 SUHL Executive Committee
112 Corporate Governance Statement
123 Remuneration Report
124 Report of the Audit and Risk Committee
127 Directors’ Report
128 Statement of Directors’ Responsibilities
INDEPENDENT AUDITOR’S REPORT
129 Independent Auditor’s Report
136 Consolidated and Separate Income Statement
137 Consolidated and Separate Statement of
Comprehensive Income
Financial Position
Changes in Equity
Cash Flows
142 Notes to the Consolidated and Separate
Financial Statements
SUPPLEMENTARY INFORMATION
214 Shareholder Analysis
214 Key Shareholder Information
215 SUHL Notice of Annual General Meeting
216 Proxy Form This section provides information on our shareholding
structure and shareholder relevant documents such as
218 Our Products and Services the AGM Notice, the Proxy Form and the company contact
information.
220 Our Branches Countrywide
221 Customer Service Points
222 Company Information and Contact Details

ANNUAL REORT
2 List of acronyms
List of acronyms
ABC Agent Banking Corporation IESBA International Ethics Standards Board for
ACCA Association of Chartered Certified Accountants Accountants
AGM Annual General Meeting IFRS International Financial Reporting Standards
ADF Africa Development Fund IIS Interest in Suspense
AFS Annual Financial Statements IMF International Monetary Fund
ALCO Asset and Liability Committee IRB Internal Ratings-Based approach
AML/CFT Anti Money Laundering /Combatting the Financing ISAs International Standards on Auditing
of Terrorism JSE Johannesburg Stock Exchange
ATM Automated Teller Machines KPMG Klynveld Peat Marwick Goerdeler
BCP Business Continuity Plan KYC Know Your Customer
BAC Board Audit Committee L&D Learning and Development
BALCO Board Asset and Liability Committee LGD Loss Given Default
BCC Board Credit Committee LPO Local Purchase Order
BCM Business Continuity Management MFC Manufactured Capital
BN billion MDI Microfinance Deposit Accepting Institution
BNA Bulk Note Acceptor MFID Markets in Financial Instruments Directive
BOD Board of Directors MPC Monitory Policy Committee
BOU Bank of Uganda MSME Micro, Small and Medium Enterprises
BRMC Board Risk Management Committee NBI National Bank of India
BUBU Buy Uganda Build Uganda NC Natural Capital
CAR Capital Adequacy Ratio NED Non-Executive Director
CBR Central Bank Rate NIM Net Interest Margin
CCAEA Climate Change Climate East Africa NIRA National Identification and Registration Authority
CBS Core Banking System NPS Net Promoter Score
CCC Customer Care Centre OCI Other Comprehensive Income
CDE Customer Decisioning Engine OHS Occupational Health and Safety
CDM Cash Deposit Machine PAT Profit After Tax
CIB Corporate and Investment Banking PAYE Pay as You Earn
CLR Credit Loss Ratio PBB Personal and Business Banking
CMA Capital Markets Authority PBT Profit Before Income Tax
CRMC Credit Risk Management Committee PD Probability of Default
CSP Customer Service Point PFIs Participating Financial Institutions
CSI Corporate Social Investment PSC Private Sector Credit
CTI Cost to Income Ratio PMI Purchase Manager’s Index
CSR Corporate Social Responsibility PPE Personal Protective Equipment
C&R Custody and Registry PWC PricewaterhouseCoopers
DBS Deferred Bonus Scheme RAS Risk Appetite Statement
EAD Exposure at Default REPO Repurchase Loan Agreement
EACOP East Africa Crude Oil Pipeline RET Regrettable Employee Turnover rate
EAR Earnings at Risk ROA Return on Assets
ECI Employee Community Involvement ROE Return on Equity
ECL Expected Credit Loss RSL Interest Rate Sensitive Liabilities
EERF Economic Enterprise Restart Fund SACCOs Savings and Credit Cooperatives
EIR Effective Interest Rate SAHL Stanbic Africa Holdings Limited
ESG Environment Social and Governance SBUL Stanbic Bank Uganda Limited
EPS Earnings per Share SEE Social Economic and Environment
ETR Employee Turnover Rate SFIs Supervised Financial Institutions
ERM Enterprise Risk Management SME Small and Medium Enterprises
FDI Foreign Direct Investments SOFP Statement of Financial Position
FIA Financial Institutions Act SBGS Standard Bank Group Securities
FID Final Investment Decision SPL Stanbic Properties Limited
FVOCI Fair Value through Other Comprehensive Income SBIL Stanbic Business Incubator Limited
FVTPL Fair Value Through Profit and Loss SUHL Stanbic Uganda Holdings Limited
GRI Global Reporting Initiatives SRC Social and Relational Capital
GDP Gross Domestic Product SEE Social Economic Environmental
GSIS Group Share Incentive Scheme TED Technology Entertainment and Design
GoU Government of Uganda UCBL Uganda Commercial Bank Limited
GRS Global Remuneration Services URA Uganda Revenue Authority
HC Human Capital USE Uganda Securities Exchange
AS International Accounting Standards UNBS Uganda National Bureau of Standards
IA Internal Audit UNDP United Nations Development Programme
IASB International Accounting Standards Board VAF Vehicle and Asset Finance
IC Intellectual Capital VSLA Village Savings and Credit Associations
ICAAP Internal Capital Adequacy Assessment Process WEF With Effect From
ICPAU Institute of Certified Public Accountants of Uganda WFH Working from Home
ICT Information and Communication Technology WFO Work from Office
IDG International Development Groups YELP Young and Emerging Leaders Project

ANNUAL REPORT
Financial definitions 3
Financial definitions
COMPOUND ANNUAL GROWTH RATE - CAGR The average year-on-year growth rate of an investment over several
years.
PROFIT FOR THE YEAR (UShs) Annual Income statement profit attributable to ordinary shareholders
stated in Uganda Shillings.
EARNINGS PER SHARE (UShs) - EPS Earnings attributable to ordinary shareholders divided by the weighted
average number of ordinary shares in issue stated in Uganda Shillings..
RETURN ON AVERAGE EQUITY (%) - ROE Earnings as a percentage of average ordinary shareholders’ funds.
RETURN ON AVERAGE ASSETS (%) - ROA Earnings as a percentage of average total assets.
NET INTEREST MARGIN (%) - NIM Net interest income as a percentage of average total assets.
CREDIT LOSS RATIO (%) Provision for credit losses per the Statement of Comprehensive Income
as a percentage of gross loans and advances.
COST-TO-INCOME RATIO (%) Total operating expenses as a percentage of total income before deduct-
ing the provision for credit losses.
EFFECTIVE TAX RATE (%) The income tax charge as a percentage of income before tax, excluding
income from associates.
DIVIDEND PER SHARE ( UShs) Total ordinary dividends declared per share with respect to the year.
DIVIDEND COVER (TIMES) Earnings per share divided by total dividends per share.
PRICE EARNINGS RATIO (%) Closing share price divided by earnings per share.
DIVIDENDS YIELD (%) Dividends per share as a percentage of the closing share price.
CORE CAPITAL Permanent shareholder’s equity in the form of issued and fully paid-up
shares plus all disclosed reserves, less goodwill or any intangible assets.
SUPPLEMENTARY CAPITAL General provisions which are held against future and current unidentified
losses that are freely available to meet losses which subsequently mate-
rialize, and revaluation reserves on banking premises, and any other form
of capital as may be determined from time to time, by the Central Bank.
TOTAL CAPITAL The sum of core capital and supplementary capital.
TOTAL CAPITAL ADEQUACY Total capital divided by the sum of total risk weighted assets and total risk
weighted contingent claims.
CREDIT IMPAIRMENT CHARGE (SHS) The amount by which the period profits are reduced to cater for the effect
of credit impairment.
LENDING RATIO Net loans and advances divided by total deposits.
PERCENTAGE CHANGE IN CREDIT LOSS Ratio of change in the rate of credit loss impairment between time peri-
RATIO (%) ods.
PERCENTAGE CHANGE IN THE IMPAIRMENT Ratio of change in the rate of impairment charge between time periods.
CHARGE (%)
SOFP CREDIT IMPAIRMENT AS A % OF Ratio of the Statement of Financial Position credit impairment to gross
GROSS LOANS AND ADVANCES (%) loans and advances.

FINANCIAL
ABOUT SUHLSTATEMENTS
4 Financial Statements for the year ended 31 December 2021

ABOUT SUHL
Financial Statements for the year ended 31 December 2021 5
ABOUT
STANBIC UGANDA
HOLDINGS LIMITED
6 About This Report
7 Organisation Structure Overview
9 Who We Are
10 Standard Bank Group Footprint
11 Stanbic Bank Footprint in Uganda

FINANCIAL
ABOUT SUHLSTATEMENTS
6 Financial
About thisStatements
Report for the year ended 31 December 2021
About this report

This is the Stanbic Uganda Holdings Limited (SUHL) Annual Report that covers the
period 1 January to 31 December 2021. It includes both financial and non-financial
information pertaining to all entities over which we have control or significant
influence over. The largest proportion of the information relates to Stanbic
Bank Uganda limited (SBUL) which is still the largest and main operating
entity throughout the period under review.
This report also includes additional information up to the date of Board of Directors approval on
28 March 2022. The scope of the information presented is largely medium term and assesses the
opportunities, risks and impacts influencing our ability to create sustainable shared value as we
begin to realise our midterm vision, while delivering on our purpose. This report is prepared for
SUHL’s different stakeholders with detailed information about who we are, our strategy, our
performance, governance and expectations for the future in context of the environment we
operate in.
Stanbic Uganda Holdings Limited is part of the Standard Bank Group, Africa’s largest Bank
measured by footprint and assets. Standard Bank Group has on-the-ground representation
in 20 African countries. In Uganda SBUL has a wide network of branches that have been
and continue offering a wide spectrum of financial services and products to the retail
and corporate segments for the past 30 years.
Our Purpose
Uganda is our home and we drive her growth
Our Vision
To be the leading financial services
organization in for and and across
Uganda, delivering exceptional client
experiences and superior value.

ABOUT SUHL
Our Organisation structure
Our Organisation structure

STANDARD
BANK GROUP*
Minority Stanbic Africa

Shareholders Holdings Limited
(Ownership) (Ownership)
20% 80%
Stanbic Uganda
Holdings Limited
(SUHL)**
100%
Stanbic
Stanbic Bank Stanbic Properties SBG Securities FLYHUB Uganda
Business Incubator
Uganda Limited Limited Uganda Limited Limited
Limited
SME training and Digital

Commercial Banking Real Estate Business Securities Trading
development transformation
Business (Incorporated 2020) (Incorporated 2020)
(Incorporated 2020) (Incorporated 2020)
Our listings and shareholders

* Listed on the Johannesburg Stock Exchange
** Listed on the Uganda Securities Exchange

ABOUT SUHL
8 Who We Are
Uganda is our home,

we drive her growth

ABOUT SUHL
Who We Are 9
Who We Are
A brief history of Stanbic Uganda Holdings Limited (SUHL)
Stanbic Uganda Holdings Limited In November 2007, the the bank into a holding company
traces it’s history in Uganda as Government of Uganda divested its followed by a hive down of the
a commercial bank called the ownership in Stanbic Bank Uganda banking business from the bank (at
National Bank of India (NBI) in Limited by listing its shares on the time) to a newly incorporated
1906. After several name changes, the Uganda Securities Exchange. banking subsidiary.
NBI rebranded to Grindlays Bank. Standard Bank Group also floated
In 1991, Standard Bank Group 10% of its shareholding at the The reorganisation process
(SBG) acquired Grindlays Bank. same time, retaining an ownership was finally completed when the
The new owners renamed the stake of 80%. transfer of the banking business
Ugandan subsidiary, Stanbic Bank was effected on 1 April 2019 with a
Uganda Limited (SBUL). In 2018, SBUL started the process holding company, Stanbic Uganda
of reorganising its corporate Holdings Limited (SUHL or the
In February 2002, SBG acquired structure to include a holding Company) and one wholly owned
90% of the shareholding in Uganda company. The rationale for the subsidiary Stanbic Bank Uganda
Commercial Bank Limited, a reorganisation was to enable the Limited (SBUL or "the Bank").
Government-owned bank with entity to undertake other non- As of 31st December 2021 , SUHL
sixty-five branches. SBG merged banking financial and non-financial had four additional subsidiaries i.e
their new acquisition with the services that would be established Stanbic Properties Limited, Stanbic
existing SBUL, to form Uganda’s through the holding company. The Business Incubator Limited,
largest commercial bank by assets reorganisation was to be effected FLYHUB Uganda Limited and SBG
and branch network. through the transformation of Securities Uganda Limited.
Facts about Stanbic Uganda Holding Limited

as at 31 December 2021
Balance Sheet Number of Branches
UShs 8.7 trillion 69

Total number of Employees Number of CSPs
1,756 11
Market Capitalisation Bank Agents
UShs 1.33 trillion 4,683

Shareholders Number of Customers
22,470 572,168
Headquarters Cash dispensers
Crested Towers, Plot 17 Hannington 122
ATMs
Road, Kampala
175 Intelligent ATMs
Point of Sale machines
32
989
Cash Deposit Machines
21

ABOUT SUHL
10 Standard Bank Footprint
Standard Bank Group

Footprint
West Africa
1 Côte d’Ivoire South & Central Africa
2 Ghana 11 Namibia
3 Nigeria 12 Botswana
4 Democratic
Republic of 13 Zambia
Congo (DRC) 14 Zimbabwe
5 Angola 15 Malawi
We are Africa focused,
16 Mozambique
East Africa client led and digitally
17 Mauritius
6 South Sudan enabled. We provide
18 Lesotho
7 Ethiopia

comprehensive
19 eSwatini
(representative office) and integrated financial
20 South Africa
8 Uganda and related solutions
9 Kenya to our clients.
10 Tanzania We drive inclusive
growth and sustainable
development.
3
1 7
2
6
8
9
10
159 years
of serving our clients
5 15
in Africa
13
16 17
Market Capitalisation
14 Billion
14
11 12 USD
19
On the ground presence in
Presence in International Markets
Beijing • Dubai • London • New York • Sao Paulo 20
18
20 countries
in sub-saharan Africa with
International Financial Services modernised banking platiforms
supported by a footprint of 1,143
Isle of man • Jersey •Mauritius branches and 6,600 ATMs
Standard Bank Group on-the-ground presence in

20 countries in sub-Saharan Africa Strategic partnership
with the largest bank in the world

ABOUT SUHL
Stanbic Bank Uganda Limited Footprint 11
North
East
Greater
Kampala
West
Metro
Murchision Falls National Park, Nothern Uganda
Stanbic Bank presence in Uganda

East Mulago Branch North Kabale Branch
Busia Branch Nakivubo Branch Adjumani Branch Kalangala Branch
Iganga Branch Nateete Branch Apac Branch Kisoro Branch
Jinja Branch Wandegeya Branch Arua Branch Kyotera Branch
Kamuli Branch William Street Branch Gulu Branch Lyantonde Branch
Kapchorwa Branch Kigumba Branch Masaka Branch
Metro
Kotido Branch Kitgum Branch Masindi Branch
Acacia Mall Branch
Lugazi Branch Lira Branch Mbarara Branch
Bugolobi Branch
Mbale Branch Moyo Branch Mubende Branch
Entebbe Main Branch
Moroto Branch Nebbi Branch Rukungiri Branch
Freedom City Branch
Soroti Branch
Forest Mall Branch West Customer Service Points
Tororo Branch
Garden City Branch Buliisa Branch Bwera
Greater Kampala Kabalagala Branch Bundibugyo Branch Jinja town CSP
Aponye Mall Kampala Branch(Corporate) Bwamiramira Branch Kaabong
Kawempe Branch Lugogo Branch Hoima Branch Kayunga
Kiboga Branch Makerere Branch Ishaka Branch Kagadi
Kireka Branch Metro Branch Kabwohe Branch Kumi
Kyambogo Branch Nakasero Branch Kasese Branch Pakwach
Luwero Branch Nakawa Branch Kihihi Branch Kakira
Mityana Branch Ntinda Branch Ntungamo Branch Kinyara
Mpigi Branch FortPortal Branch Mayuge
Mukono Branch Ibanda Branch Wobulenzi

LEADERSHIP INSIGHTS
12

LEADERSHIP INSIGHTS
13
LEADERSHIP
INSIGHTS
14 Chairman's Statement
18-21 Chief Executive's Statement

LEADERSHIP INSIGHTS
14 Chairman’s Statement
Chairman’s
Statement
Japheth Katto
Board Chairman
Overview I commend the Management and all Domestic Systemically Important

the key parties for their contributions Banks (D-SIBS). Our Bank subsidiary
Stanbic Uganda continued to grow in
in ensuring this landmark transaction completed the Basel II and Libor
2021, posting commendable results
was completed. transition and was designated as
and demonstrating market leadership
Domestic Systemically Important
in the financial services sector, and Following the full operationalisation Bank (DSIB) through the year 2022.
in the non-financial services beyond of the subsidiaries, the focus shifted The Central Bank also issued draft
banking. Stanbic Uganda now boasts to the journey of transitioning to a Corporate Governance guidelines, and
of a footprint across several key platform services organisation in line the process of reviewing the guidelines
industries in the economy, including with our Future Ready Transformation is ongoing. The National Payment
real estate, brokerage, technology, strategy. This will ensure that we can Systems Regulations of 2021, central
financial services and the not-for- serve our clients in an integrated, to our Bank subsidiary's work, were
profit sector. This has been achieved innovative and comprehensive way by also enacted.
notwithstanding the challenges of unlocking more value from the Stanbic
the second wave of the Coronavirus Uganda eco-system. The Uganda Securities Exchange
pandemic (COVID-19). (USE) Listing Rules of 2021, applicable
The Board is confident of the to Stanbic Uganda Holdings, our
Performance competitive advantage this transition listed entity, were amended. The
I am pleased to report that Stanbic will offer Stanbic Uganda. It will propel legal and regulatory framework for
Uganda delivered a solid financial us to achieve the reality of change Collective Investments Schemes and
performance driven by a strong focus to a one-stop financial services the Securities Central Depositories
on our strategic value drivers. Profit business. We will continue to support Rules and Procedures applicable to
after Tax stood at UGX 269 billion, Management on this transformation our Brokerage subsidiary business are
up 11% in comparison to 2020, and innovation journey as we continue under review by the Capital Markets
while Return on Equity closed at to drive Uganda's growth. Authority and the USE.
19.4%. We are optimistic that all the
businesses, including the beyond-bank During the year, the Board continued On a sad note, during the year, we lost
subsidiaries, will continue to grow to focus on practical, proactive the Governor of the Central Bank,
and leverage emerging opportunities management of risk and providing Professor Emmanuel Tumusiime
in their respective sectors. The Chief sufficient oversight to ensure risk and - Mutebile, one of the architects
Executive's Statement highlights return were well aligned to strategy. of Uganda's post-independence
further details on our performance The details of risk management are economy. Throughout his service in
metrics. contained in the Risk statement on various roles, he was committed to
Page 46. developing and maintaining a deep,
Strategy and Risk well-regulated and robust banking
Regulatory Landscape and financial services sector, a goal he
We continue to implement our
I am pleased to report that all our achieved amidst multiple challenges.
diversification strategy, which we
subsidiaries received the necessary Notably, we shall remember him
embarked on in 2018. The strategy
regulatory approvals and licenses for his immense role in establishing
has started yielding great results
required to conduct their businesses. the Capital Markets Authority of
and will create more value for our
Stanbic Uganda remained compliant Uganda and the Uganda Securities
shareholders. Notably, our Brokerage
with all the different regulatory Exchange. We shall forever treasure his
and Banking subsidiaries supported
requirements. contribution to the financial services
the MTN Initial Public Offering (IPO),
sectors and economies of Uganda
the largest IPO in Uganda's financial
The Central Bank issued Guidelines and other countries in the region. In
markets, as Lead Sponsoring broker,
on the Basel II and Libor transition honour of his legacy, Stanbic Uganda
Lead Retail broker, Transaction Advisor
and the Framework for Identification, undertook a tree-planting exercise
and Lead Receiving Bank.
Regulation and Supervision of across its branches, planting 72

LEADERSHIP INSIGHTS
Chairman’s Statement 15
Stanbic Uganda Holdings continued to grow in 2021,

posting commendable results and demonstrating market
leadership in the financial services sector. Stanbic Uganda
now boasts of a footprint across several key industries in
the economy, including real estate, brokerage, technology,
financial services and the not-for-profit sector.
We remain mindful of fruit trees to symbolise his 72 years of Reporting. The Banking subsidiary
worthwhile contribution. May his soul rest received several awards for its excellent
our duty to achieve a in peace. performance, notably, the Digital Impact
net positive Social, Awards Africa, including the Digital Brand
Economic and Corporate Governance of the Year (Gold), Digital Banking

We remain committed to upholding the Excellence (Silver), the Financial Services
Environmental (SEE) highest standards of corporate Digital Excellence (Gold) and Best Digital
Campaign Excellence (Gold) for the year
impact for all the governance to drive business across
2021. Our Directors, Josepha T. Ndamira
Stanbic Uganda. In addition to fulfilling its
activities conducted mandate, the Board focused on and I, also received the Non-Executive
for present and future sustainability, risk and conduct, board Director Awards from the League of East
succession planning and director African Directors for exceptional
generations. To development to ensure fitness for performance. It also gives me pleasure to
support this, the leadership and effectiveness in the rapidly report that the Standard Bank Group,
which we are a member of, was ranked as
Board has put in changing business environment. The
the most valuable banking brand in Africa.
Board undertook its annual assessment
place a robust and maintained an excellent score for its
Environmental, Social effectiveness. For details, please refer to Sustainability
the corporate governance section of this The Board prioritized sustainability with
and Governance report. relentless focus, in the execution of its
(ESG) framework and mandate. This focus is premised on our
During the year, there were key leadership shared value of doing business the right
structures changes across Stanbic Uganda. Ms. Sola way. To that end, we closely collaborated
David-Borha was appointed as a director with our regulators, the Government of
of the Bank subsidiary in January 2021, Uganda, and our partners to support our
and Prof. Patrick Mangheni was appointed customers and communities during the
as the Board Chairman of the Bank challenging period that we were faced
subsidiary in March 2021. Prof. with, and to contribute to the efforts
Mangheni's appointment followed my aimed at rebuilding the economy.
resignation from the Board of the Bank
subsidiary as part of the process of We remain mindful of our duty to achieve
separating the Stanbic Uganda Holdings a net positive Social, Economic and
and Bank subsidiary Boards, to enhance Environmental (SEE) impact for all the
the independence and objectivity between activities conducted for present and
the two boards while conducting their future generations. To support this,
responsibilities. Chief Executives, who also the Board has put in place a robust
serve as Executive Directors for their Environmental, Social and Governance
entities, were appointed for the Brokerage (ESG) framework and structures,
and Fintech subsidiaries. including the appointment of a Head
of Sustainability, to ensure appropriate
I am pleased to report that Stanbic oversight and management of ESG risks
Uganda continued to be recognised for its and opportunities. This framework will
excellent performance and market facilitate monitoring and tracking of both
leadership. We received several Financial progress and impact.
Reporting Awards for outstanding
achievement in Sustainability Reporting, Our flagship sustainability programs
Listed Entity Reporting, Integrated that include the National Schools
Reporting and Corporate Governance Championship (NSC) and the Stanbic

LEADERSHIP INSIGHTS
16 Chairman’s Statement
Business Incubator program Board through a virtual Annual In that vein, I would like to thank my
continued to be implemented. The General Meeting (AGM). The trend for fellow directors with whom we have
NSC focuses on skilling students increased participation with extended worked to steer Stanbic Uganda in
on entrepreneurship, and it has time for questions and answers before the right direction. I would also like
now impacted over 100 schools and at the AGM was provided. Over to thank the Chief Executives and
and 150,000 students. The Stanbic 2,000 shareholders participated in the Management for their hard work and
Business Incubator program was set virtual AGM, triple the participation dedication. I commend Management
up to provide business development from physical meetings. for proactively promoting the welfare
support to local small and medium and wellness of our staff through
enterprises, was expanded across Shareholders also had the opportunity programs such as vaccination drives,
various regions in the country to to participate in the World Investor which were aimed at protecting the
support local small and medium Week in October 2021, organised in health and lives of our staff during the
enterprises. conjunction with our regulator, USE, pandemic.
and other sector stakeholders under
Other equally impactful programs the theme 'Leveraging Technology to In a unique way, I would like
included raising support and Promote Financial Awareness and to recognize our staff for their
awareness for maternal health, Literacy in Uganda'. We continue to unwavering resilience in the midst
providing hospital equipment to explore opportunities for continued of continued disruption. They
select health facilities, donating engagement with our shareholders demonstranted commitment in such
mama kits for the welfare of mothers and encourage you to participate a volatile, uncertain, complex and
in underserved hospitals and when called upon. ambiguous period. Sadly, we lost one
environmental conservation programs such committed senior member of
that include tree planting initiatives 2020 and 2021 Dividend staff, Mr. Henry Rucwere Kamuntu,
and a plastic recycling awareness In April 2020, Bank of Uganda (BOU) who was the Sector Head Oil & Gas for
campaign. announced enhanced guidelines for our Bank subsidiary at the time of his
Supervised Financial Institutions passing. He left behind a great legacy
In light of the second wave of and we honour his life and the lives of
(SFIs), including our Bank subsidiary.
COVID-19, we also continued to all other Ugandans that lost their lives
These guidelines required SFIs to
support our staff and customers, during the pandemic.
defer discretionary payments, which
especially small businesses, to build
include dividends, for purposes of
back better from the effects of the I must also thank our shareholders,
capital preservation. As such, the
pandemic. Some of these initiatives regulators, customers, partners,
Bank's proposed dividends for 2020,
included credit relief programs for our and other stakeholders for their
which form the pool of dividends
customers and vaccination drives for unwavering support, which has been
for payment to the Stanbic Uganda
our staff. invaluable in enabling us to realise
Holdings’ shareholders, remain
our objectives and to deliver on our
Further details on our sustainability under review by BOU, the results of
promises.
initiatives are contained in the which will inform the 2021 dividend
Sustainability Report. recommendation of the directors The lessons learned in 2021 will be
to the Stanbic Uganda Holdings’ important in harnessing the emerging
Shareholder and shareholders. opportunities as we strive to achieve
Stakeholder Engagement our purpose. Despite the challenging
Appreciation and Looking geopolitical and geo-economic
Our focus on shareholder
engagement, to provide opportunities
Forward environment impacting the globe, we
remain confident in our prospects
for shareholder participation and The journey towards full recovery
and are committed to attaining our
learning continued during the year. from the pandemic is on course, with
strategic goals for the prosperity of
Despite the restrictions imposed on the economy now fully re-opened.
our stakeholders and our country.
physical gathering because of I am optimistic that in 2022, we
Uganda is our home; we drive her
COVID-19, we took steps to provide shall register even more growth and
growth. IT CAN BE.
the platform and opportunity for more achieve the goals we have set for
shareholders to engage with the ourselves.

17
Even the
started small.
With us you’re

Stanbic Bank Uganda Limited. A Financial Institution regulated by the Bank of Uganda and Customer @stanbicug
Deposits are protected by the Deposit Protection Fund of Uganda. License Number A1. 030
LEADERSHIP INSIGHTS
18 SUHL Chief Executive's Statement
SUHL
Chief Executive's
Statement
Andrew Mashanda
The year 2021 presented us with income statement. A deep dive into business. Notably they released the
an unusual and unprecedented set this performance and the drivers is first baseline report on the state of
of permutations in our operating shared by Anne Juuko Chief Executive real estate business in the capital
environment, especially with the of Stanbic Bank Uganda Limited city Kampala. We believe this is a
emergence of new variants of on page 20 and in the financial and fundamental step in the formalisation
Covid-19 and the attendant need to operational review on page 34. of the real estate sector in Uganda.
take appropriate steps to prevent the
spread of the virus. We remain mindful Progress on the beyond SBG Securities is a stock brokerage
business that only obtained its
and stand with the families that have bank subsidiaries brokerag license in April of 2021
lost loved ones and livelihoods. It is our
hope that as the economy continues As mentioned in previous reports, but was able to win a mandate to
to reopen and recover from the we have expanded our business and be the transaction advisor and lead
pandemic that new opportunities will ventured into sectors beyond financial retail broker for the largest IPO in
emerge for the country. services. We have started to witness Uganda and Africa for 2021. SBG
green shoots of hope from the new Securities also obtained a collective
In spite of the attendant challenges, subsidiaries. Stanbic Uganda, in a investment scheme licence which will
we have remained resilient, our staff strategic initiative to diversify our diversify and transform our wealth
have demonstrated their mettle business and create new pools of management offerings to our different
during this period and the results revenue beyond banking, we took stakeholders.
forStanbic Uganda Holdings Limited the decision to create a corporate
bear testimony to this. In our 2021 As Stanbic we believe that for us to
structure with a holding company grow, the communities around us
performance we generated revenues and four additional businesses. Core
of UShs 903 billion, a 13% increase should grow alongside us. This is
to this transformational journey is enshrined in our purpose statement,
from UShs 831 billion in 2020, and development and strengthening of
Return on Equity of 19.4%, a slight Uganda is our home, we drive her
our digital capabilities which resulted growth. Stanbic Business Incubator
decline from 20.5% in 2020. This in the creation of Flyhub Uganda
decline was largely on the account Limited (SBIL) is our transformation
Limited, a digital finance technology entity responsible for enhancing
of increased equity base, as we transformation business.
continued to wait regulatory approval sustainability of small and medium
for the anchor subsidiary to pay We are delighted to report that enterprises (SMEs) through training
dividends for 2020. Our capital base two of the four new businesses are them. Notably SBIL has five regional
remained strong at 21.9% from 18% already profitable in their second training centres across this nation.
in 2020, sufficient to cover our growth year of existence. Stanbic Properties SBIL has become a strategic partner
aspirations and any shocks in the Limited which is our real estate to different players in the different
foreseeable future. Over 95% of this business initially started off with key sectors of this nation that drive
performance is driven by Stanbic facilities management, we have GDP growth like agriculture, oil and
Bank which continues to maintain its added valuation, advisory and gas, manufacturing etc. In 2021
number one position in most of the project management services in our it started reviewing its strategy
key metrics of the balance sheet and efforts to transform into a platform to ensure there is progressive

LEADERSHIP INSIGHTS
SUHL Chief Executive's Statement ( continued) 19
The year 2021 presented us with an unusual and

unprecedented set of permutations in our operating
environment, especially with the emergence of new variants
of Covid-19 and the attendant need to take appropriate
steps to prevent the spread of the virus. We remain mindful
and stand with the families that have lost loved ones and
livelihoods. It is our hope that as the economy continues to
reopen and emerge from the pandemic that new
opportunities will emerge for the country.
As Stanbic, we learning and development of the SMEs. Our staff remain central to the
Implementation of this strategy will strengthening of this pillar therefore, we
believe that for us to start in 2022. More details about the will continue to invest and adequately
grow, the transformational work being done by the equip them to deliver.
SBIL are found on pages 77 to 79 of the
communities around sustainability report. 2. Executing With Excellence
us should grow It is very important that we do business
Looking ahead the right way to maintain credibility
alongside us. This is with all our stakeholders. Continuously
2022 presents us with fresh winds of
enshrined in our opportunity, through the economy having
improving the way we operate through
the use of technology and data analytics
purpose statement, fully opened here at home and across
will help us become more effective and
the globe, and the resultant increase in
Uganda is our home, aggregate demand. GDP is projected to
efficient. This plus enhancing our Risk
Management and control structures
we drive her growth. grow at 5.5% by 2023 from a projected
across the entire organisation will see us
3.5% in 2022. The positive developments
achieve this goal.
in the oil and gas sector with final
investment decision (FID) signed have
increased confidence in the prospects for
3. Driving Sustainable Growth and
the economy. As a franchise, we are well Value
positioned for the future and the strategic It is our duty to do business responsibly
drivers are as follows: in the communities that we live in to
ensure that we drive Uganda’s growth
1. Improving our Client sustainably. We do this through our Social
Economic and Environment framework
Experience:
with specific details in the sustainability
Clients remain the centre of everything report on page 60.
we do because they are the reason we
exist. Our intention is to consistently Highlights of the 2021 performance on
provide excellent client experiences these three priority areas can be found
through an expanded range of innovative pages 28-29 (our strategic outcomes) of
solutions which will help us grow and this Annual report.
scale. Additionally, we will build strategic We express our sincere gratitude to all
partnerships with experts, who will help us our stakeholders for your belief in us and
achieve this goal. continue to partner with us on the journey
to achieving our vision of making progress
real. Uganda is our home and we drive her
growth.

LEADERSHIP INSIGHTS
20 SBUL Chief Executive's Statement
SBUL
Chief Executive's
Statement
Anne Juuko
The Pandemic tested our bespoke and curated solutions, in cost in the market. This reaffirms
resilience—we survived a form that is appropriate for the our commitment to delivering
operational environment and relevant relevant and curated solutions for all
and thrived. to our clients. Ugandans.
2021 provided us with an opportunity
One such solution is our SACCO The pandemic has highlighted the
to demonstrate our commitment
Capacity Building Programme, which value of health workers and our
to our Purpose — “Uganda is our
is designed to afford unbanked and dependency on their critical life-saving
home, and we drive her growth”.
underbanked Ugandan’s access to skills and capabilities. We thought
The juxtaposition of the impact of
low-cost financing. Our client insights it appropriate to give back to these
the pandemic on the economy, and
affirm the notion that Ugandans have critical members of our community
the need for a catalyst for recovery,
a cultural inclination to save, invest by developing a bespoke solution to
presented us with the impetus to
and lend within the communities that address their unique needs, which
progress our socio-economic value
they operate, implying the trajectory includes access to affordable health
preposition. I am pleased to report
for growth in SACCOs is very positive. insurance and subsidized credit
that our efforts to be responsive and
We currently bank over 3700 SACCOs, facilities. This offering was developed
relevant to the communities in which
representing approximately 2.9 million in partnership with the Government of
we operate have yielded tangible
members. We have availed these Uganda and anchored by the Ministry
results and delivered value for our
SACCO’s a multitude of value additive of Health.
shareholders.
services which include financial/
The education sector experienced the
“Every crisis has both its dangers Governance capacity building, access
most acute impact of the pandemic in
and its opportunities. Each can spell to digital solutions, and affordable/
2021, with schools remaining closed
either salvation or doom.” - a quote low-cost financing that is priced
for an inordinate amount of time.
from Martin Luther King Jr. The significantly below market interest
Consequently, a substantive number
impact of the pandemic was broad rates (as low as 10% p.a.).
of schools have faced challenges
and substantive, reshaping how we
We are cognizant of the structural in sustaining their credit facilities
work, educate, access services, and
barriers to deepening financial with banks and sourcing financing
manage healthcare systems. These
inclusion in Uganda and accordingly, to prepare for the back-to-school
momentous shifts necessitated
we elected to develop a convenient, transition. Hence, we deemed it
a reorientation of our strategic
comprehensive, and affordable state appropriate to support the FlexiPay
direction, with a pivot to enhancing
of the art digital banking solution — education sector by actively leading
our digital channels, using our
FlexiPay is a digital wallet that enables a symposium that solicited support
deep client insights to understand
Ugandans to send money, pay bills to facilitate the re-opening of schools
evolving needs, and leveraging wide
and manage accounts conveniently and waiving all interest on loans
geographical footprint. This pivot
transparently, and at the lowest accumulated in 2021.
enabled us to develop and deliver

LEADERSHIP INSIGHTS
SBUL Chief Executive's Statement (continued) 21
2021 provided us with an opportunity to demonstrate

our commitment to our Purpose — “Uganda is our home,
and we drive her growth”. The juxtaposition of the
impact of the pandemic on the economy, and the need
for a catalyst for recovery, presented us with the impetus
to progress our socio-economic value preposition.
We are cognizant of the It is important to note that our We intend to lead and shape the digital
ability to timeously pivot in 2021 transition of the traditional banking
structural barriers to was facilitated by a material internal sector in Uganda, with a key focus
deepening financial reorganization, that was designed on simplification, iterative innovation
to put clients at the center of what and strategic partnerships. Our digital
Inclusion in Uganda and we do. The reorganization involved journey is anchored in developing
accordingly, we elected the establishment of three distinct artificial intelligence and machine
but integrated business segments; learning capabilities. This process
to develop a convenient, Corporate and Investment Banking has commenced, with substantive
comprehensive, and (CIB), Business and Commercial progress made in enhancing our
affordable state of the Clients (BCC) and Consumer, technology platform and setting the
High Net Worth and Wealth Clients foundation for our future readiness.
art digital banking (CNHW). This segmentation has
The new digital and dynamic path we
solution, FlexiPay is a already facilitated the delivery of fit for
have embarked on may introduce new
purposes, client-oriented solutions in
digital wallet that 2021.
and unprecedented technology risks.
Consequently, as we innovate, we are
enables Ugandans to The various initiatives and solutions committed to simultaneously enhance
send money, pay bills highlighted above resulted in the our monitoring and controls capability.
and manage accounts deepening of our relevance to our This will provide a strong foundation
clients, and delivery of value to our for sustainable innovation.
conveniently shareholders, with record Profit after
Finally, considering the socioeconomic,
transparently, and at the Tax of UShs 275 billion, representing a
environmental and climate realities
13% growth year-on-year. Essentially,
lowest cost in the the decision to pivot and reorient our
in Uganda, we are committed to
delivering our business mandate
market. strategic focus has allowed us convert
in the most sustainable manner.
the crisis into an opportunity.
Accordingly, we have rolled out our
Looking ahead new Sustainability Programme that
that consists of Six Pillars; Education
Excellent service, efficient solutions, and Youth empowerment, Health,
and relevance in the communities Job creation, Enterprise growth,
we serve will continue to be provide Financial Inclusion, and Protection of
the pillars on which we develop and Natural Resources and Environmental
execute our strategy. Customer, Awareness. This program provides
centricity will continue to inform our a comprehensive basis on which to
organizational structure, product deliver on our brand promise IT CAN
development and investments. BE, as a responsible Corporate Citizen.

22 HOW WE CREATE VALUE

HOW WE CREATE VALUE 23
HOW WE
CREATE VALUE
24 How We Create Value
26 Our Strategy
28 Our Strategic Outcomes

24 HOW WE CREATE VALUE
How We
Create Value
Our clients are at the centre of everything we do. This is the central organising principle in the work we are doing to build a digital bank,
redesign our operating models, and to develop our people and change our culture – which together will create long-term sustainable
competitive advantage.
Our strategy is focused on creating sustainable growth

Strategy and value for all our stakeholders.
More details in the Strategy Report on pages 26 to 29
Our business units and corporate functions have aligned

Business their operating strategies to our strategy, to ensure effective
units and and coordinated execution within and across our operations for
corporate the benefit of our clients.
functions
More details in the Business Unit Report on pages 40 to 43
Our strategy represents an effective approach to the

structural shifts in our industry. Global megatrends such as the
OUR CLIENTS technological revolution, increasing stakeholder pressure, and
socioeconomic and environmental challenges are imposing the
need for wide-reaching transformation in the way we do business.
As the Covid-19 pandemic and its social effects ease, key trends
Operating
provide the opportunity for growth and development in Uganda
context
that justify the optimism of our strategy.
More details in the Operating and Financial Review on pages 34 to 37
Our strategy is achieved within the parameters of our risk

appetite, which implies conscious risk taking. We regularly align
Risk our risk appetite to changes in our operating context, and are
appetite instilling a risk-aware culture throughout the organisation as well
as continually enhancing our risk management capabilities.
More details in the Risk Magement Report on pages 56 to 57
Our governance Performance linked to Remuneration that drives

approach value creation value over time
GOVERNANCE promotes strategic

decision-making
We are embedding a
high-performance culture
Our reward philosophy is being
evolved to reflect our strategy.
APPROACH TO that combines
long-term and
and creating an environment We combine reward elements that
in which our people are link directly to strategic and
VALUE shorter-term
outcomes, to
empowered and motivated to financial performance criteria and
CREATION reconcile the
deliver exceptional client
experiences, and are
thresholds.
OVER TIME interests of Stanbic

Uganda and society
rewarded for their
contribution towards
in our pursuit of realising our purpose and
sustainable value. vision.
Our stakeholders are the providers of the capital we need

RESPONDING to create value. Stakeholder inclusivity and responsiveness
TO OUR enable us to secure and maintain these inputs, and to
identify opportunities and challenges. Details of how we
STAKEHOLDERS respond to our stakeholders has been included in the
Sustainability Report on pages 60 to 105.

HOW WE CREATE VALUE
25
CREATING CREATING DRIVING UGANDA’S

VALUE FOR VALUE GROWTH OVER THE
STANBIC UGANDA FOR SOCIETY LONG TERM
Our strategic value drivers align Social relevance is fundamental Our multi-generational purpose
our allocation of resources to our to our survival and success, and recognises the mutual
strategy. We have identified five is implied in our purpose and interdependency in the wellbeing
key value drivers, shown below, vision. of Uganda and of Stanbic. It is the
and continue to work on selecting ultimate expression of our
the appropriate metrics for each, We are moving towards commitment to Ugandan growth
which support more effective measuring our social return, and that is inclusive and sustainable,
resource allocation and to obtaining a truer picture of our and in turn secures viable
appropriate trade-off decisions. broader value outcomes. This markets for our long-term
involves identifying the social, profitability and value creation.
• Client focus. economic and environmental
• Employee engagement. risks and opportunities that
• Risk and conduct. Uganda presents and how our
business activities can respond
• Culture of continuous
to these.
improvement.
• Social, economic and
environmental outcome.
Ethical and effective Corporate citizenship Sustainable development

leadership Corporate citizenship relates to Sustainable development
Ethical and effective leadership the integral role we play in the commits us to enhancing the
relates to uniting purpose and socioeconomic wellbeing of resources and relationships we
performance. Embedding an Uganda. It commits us to using our rely on today, for the future.
ethical culture recognises that the resources responsibly as inputs to Our plans to measure social,
trust of our stakeholders is the basis our business model, and balances environmental and economic
on which we compete and win. our needs with those of society. returns, will enable us account
for the total returns we deliver
in line with our purpose.
CLIENTS EMPLOYEES GOVERNMENTS AND REGULATORS SHAREHOLDERS COMMUNITIES AND

Business and AND THEIR Bank Of Uganda AND INVESTMENT CIVIL SOCIETY
Commercial Clients REPRESENTATIVES ANALYSTS Suppliers
Uganda Securities Exchange
Consumer Hight Net Permanent Investors Media
Capital Markets Authority
Worth Clients Temporary Shareholders Advocacy Groups
Financial Intelligence Authority
Corporate & Contract Analysts Public
Investment Banking Deposit Protection Fund
National Information Technology
Authority
National Bureau for Non - Governmental
Organisations

HOW WE CREATE VALUE
26 Our Strategy
Our strategy
Our strategy is centred on our commitment to Uganda and directs our growth and
evolution to the shared benefit of our clients, our people and all our stakeholders. It allows
us to lead with purpose, to build a better business, and to position our footprint and
platform for the future.
Our purpose Uganda is our home, we drive her growth
Our strategic priorities
Transform client experience Execute with excellence Drive sustainable growth

and value
Our client segments will: Our Client Solutions, Engineering We will be purposeful in:
DEFEND our current client and Innovation capabilities will: Diligently ALLOCATING
franchise and market positions DELIVER innovative and cost- RESOURCES
GROW as we capture effective client solutions Delivering ATTRACTIVE
opportunities, with specific focus ENABLE the group’s platform SHAREHOLDER RETURNS
on our ten prioritised PARTNER to drive value Having a POSITIVE IMPACT
ecosystems
We will transform client experience We will execute with excellence, We will drive long-term,
using digital technology, amplified delivering innovative and cost- environmental and socially
by the human touch. effective products and services sustainable growth and value.
ourselves and in partnership with
We aim to understand our clients others. We will responsibly allocate our
as deeply and empathetically as resources and strive to deliver
we can, and then use our human positive impact.
skill and digital capabilities to help
meet their needs and enable them
to achieve their goals.
Our success measures and value drivers
FINANCIAL SEE
CLIENT EMPLOYEE RISK AND OPERATIONAL
OUTCOME IMPACT
FOCUS ENGAGEMENT CONDUCT EXCELLENCE
Our values
Serving our customers together, we can achieve much greater Being proactive
things than as individuals. We value
We do everything within our power to We strive to stay ahead by anticipating
teams within and across business units,
ensure that we provide our customers rather than reacting, but our actions are
divisions and countries.
with the products, services and solutions always carefully considered.
to suit their needs, provided that Respecting each other
everything we do for them is based on
Constantly raising the bar
sound business principles. We have the highest regard for the We have confidence in our ability to
dignity of all people. We respect each achieve ambitious goals and we celebrate
Delivering to our shareholders other and what Stanbic Uganda stands success, but we must never allow
for. We recognise that there are ourselves to become arrogant.
We understand that we earn the right to
corresponding obligations associated
exist by providing appropriate long-term
returns to our shareholders. We work
with our individual rights. Upholding the highest levels of
hard to meet our various targets and integrity
Growing our people
deliver on our commitments. Our entire business model is based on
We encourage and help our people to trust and integrity as perceived by our
Working in teams develop to their full potential and stakeholders, and especially our
measure our leaders on how well they customers.
We, and all aspects of our work, are
grow and challenge the people they lead.
interdependent. We appreciate that

HOW WE CREATE VALUE
Our Strategy (continued) 27
Our 2022 aspirations
Our strategic priorities create the framework within which we work. Everything we do will further these three priorities
and we have set targets against which we will track our progress.
OUR
STRATEGIC Transform client experience Execute with excellence Drive sustainable growth and value
PRIORITIES
OUR
SUCCESS
MEASURES FINANCIAL SEE
AND VALUE CLIENT EMPLOYEE RISK AND OPERATIONAL
OUTCOME IMPACT
FOCUS ENGAGEMENT CONDUCT EXCELLENCE
DRIVERS
Client Focus Employees Risk & Operational Financial SEE Impact

• Real Impact in Conduct Excellence Outcome
• Employee NPS • Financial
focus sectors improvement • Managing • Increase • cost to income inclusion
by 10% Credit risk digital ratio below
• Deepening transactions > 50% • Uganda is
Ecosystems • Regrettable • Keep Young: Youth
OUR 90%
attrition Operational • Loans and CVP
TARGETS • Partnership losses < 1% of • Digital On- Advances
with <5% ,Talent • Green
management revenue boarding > growth
Government 80% energy drive
• Leader • Leveraging • Deposit book participation
development Data, Artificial • Collaborative growth
Intelligence teams • Focus on
• ROE >20% Sustainability
(A.I) to through
• Diversity and manage risk the Shared Development
inclusion services Goals
• Automation
of Backoffice model
and front
office
OUR
TARGET Growth and scale Efficiency and resilience Legitimacy
OUTCOMES
Our different business functions
CORPORATE FUNCTIONS BUSINESS LEGAL

UNITS ENTITY
• Client Solutions • Governance • Compliance Risk • CHNW • SUHL

• Engineering • Finance • Internal Audit • BCC • SBUL
• Service Quality • Human Capital • Legal • CIB • SPL
CLIENT
• Credit • Marketing and • SBIL
CENTRICITY
• Risk Communication • SBGS
• FLYHUB
These are the different functions through which we will deliver our aspirationss for 2022.

HOW WE CREATE VALUE
28 Our Strategic Outcomes
Our Strategic Outcomes

Our strategic value drivers measure our strategic progress and allow us to focus on the
value we aspire to create for all our stakeholders.
We continue to improve the coverage, accuracy, depth and consistency of the metrics we use to measure our strategic progress
against our defined targets for the medium term. Below we set out the key perfomance indicators associated with each of our
Strategic Value Drivers.
We provide consistently exceptional client experiences in all the markets in which we operate.
Actual
Measure Metric 2021 2020 2019
Client Net Promoter Score (NPS) +19 +16 +24
CLIENT
+ FOCUS
experience Customer Satisfaction Index (CSI) 8.8 8.2 8.3
Our focus is to consistently create excellent client experiences, by understanding our clients and by offering the
products, services and solutions they need. The lower values in 2020 and 2021 were as a result of the services
disruptions due to the covid-19 pandemic and the resultant containment measures i.e lock-downs.
CLIENT EXPERIENCE
We ensure our people feel deeply connected with our purpose and are empowered and recognised.
Actual
Employee eNPS 72 61 44
engagement
EMPLOYEE Employee Turnover Rate 6.4% 4.2% 8.8%
+ ENGAGEMENT
Employee retention
Employee diversity Employee diversity (% of female managers) 42% 41% 45%
To determine engagement levels, we consider the following:
• Employee net promoter score (eNPS), determined through Internal Service Score
• Employee turnover rate (ETR)
• Employee diversity
To inform and enhance the effectiveness of our employee engagement, the Internal Service Score is conducted
annually and the ETR will continue to be tracked monthly.
EXECUTING WITH EXCELLENCE
We ensure we do the right business, the right way by adhering to our risk appetite metrics.
Actual
Responsible Liquid Assets to Deposit Ratio 58.7% 60.0% 50.0%
RISK & risk taking Capital Adequacy 21.9% 18.0% 18.3%
CONDUCT Bank of Uganda CAMELS* risk rating. Acceptable Fair Fair
Government, CMA and the central bank create and enforce regulatory frameworks to ensure a safe financial
system, conducive to economic development, while protecting our clients. We undertake to ensure compliance
with all regulatory requirements, relevant to different parts of our business.
*CAMELS:
Bank of Uganda Supervisory Rating System:
Capital Adequacy
Asset Quality
Management
Earnings
Liquidity
Sensitivity to Market Risk

HOW WE CREATE VALUE
Our Strategic Outcomes (continued) 29
We aim to deliver superior value to shareholders.
Actual
Shareholder Return on Equity (ROE) 19.4% 20.5% 25.0%
value Cost to Income Ratio (CTI) 51.3% 48.3% 49.0%
FINANCIAL
OUTCOME Credit Loss Ratio(CLR) 1.8% 2.4% 1.5%
Dividend Per Share (DPS)* 0.98* 1.86 2.15
The financial outcomes remain key measures to assess our value creation for our shareholders. Our focus is
= to maintain the CTI at acceptable levels and the CLR within the Bank’s risk appetite, and to continuously drive
growth in PAT and ultimately, our ROE to deliver superior returns to our shareholders.
*Approval for payment of dividends(2020 & 2021) has not yet been received from the Bank of Uganda hence no payment made.
DRIVE SUSTAINABLE GROWTH AND VALUE
We drive Uganda’s growth through delivering shared value.
Our SEE management approach is guided by our purpose, drivers that support Uganda’s growth, our core business and the
needs of our societies. We continue to work on identifying metrics to measure our direct contribution to society. 2020 and
2021 were unprecedented years with a global pandemic that affected all sectors in the economy. As Stanbic, we identified
with our different stakeholders through our CSI in both the education and health sectors that were heavily impacted.
SEE IMPACT Additionally, we provided support to our clients through loan restructures, awareness campaigns etc. Further details of our
initiatives can be found in the Sustainability Report on page 60.
Actual
Social: CSI Investments (UShs bn) 3.5 3.9 2.9
Economic: Loans disbursed (UShs bn) 3.0 3.2 2.1
Delivering shared Procurement percentage spent on local suppliers 81 87% 87%
value Enviromental:
Water consumed (kilolitres) 21,205 20,820 26,073
Fuel consumed (litres) 378,235 403,662 450,431
Paper consumed (tonnes) 40 59 64
Relevant UN SDGs
re v
Financial Job creation Infrastructure

inclusion and enterprise
growth
Climate change Education Health

and sustainable
finance
The premise for our shared value strategy is the need to connect commercial and social realities in a dynamic
environment of competing stakeholder expectations, complex competitive forces and fluid regulatory changes. Our
ability to deliver sustainable returns to our shareholders is contingent on this holistic view of value creation and
includes defining and measuring the key strategic value drivers required to generate a suitable financial outcome,
as well as positive broader social outcomes.

30 BUSINESS REVIEW

BUSINESS REVIEW 31
BUSINESS
REVIEW
32 2021 at a Glance
33 2021 Awards
33 Stanbic Bank’s Credit Rating
37 5 Year Performance
38 Key Performance Indicators
39 Business Unit Reviews
• Corporate and Investment Banking
• Business and Commercial Clients
• Consumer and High Net Worth Clients

BUSINESS REVIEW
32 2021 at a Glance
2021 at a Glance
6.! Total revenue (NII/NIR)

PROFIT RETURN EARNINGS
BEFORE ON EQUITY PER SHARE
TAX 405
358 341
UShs 351.2bn 19.4% UShs 5.3

283 UShs 291
2020: 318.6bnCAGR 2020: 4.7
2020: 20.5%
9.4%
449 491 498
371 CAGR
353 TOTAL 9.0% NON- COST TO
CAPITAL PERFORMING INCOME
2017 ADEQUACY
2018 2019 2020 2021
LOAN RATIO RATIO
Net Interest Income Net Interest Revenue
21.9% 4.7% 51.3%
2020: 18.0% 2020: 4.5% 2020: 48.3%
7.! Costs
8.!
OFF
CUSTOMER CUSTOMER
BALANCE
DEPOSITS LOANS
SHEET
482
UShs 5.7
414 421
341
tn
362 UShs 3.7tn UShs 1.9tn
2020: UShs 5.5tn
2020: UShs 3.6tn 2020: UShs 1.8tn
CAGR
9.0%
2017 2018 2019 2020 2021

4.! Total assets
SHAREHOLDER’S EQUITY TOTAL ASSETS
8,579 8,720
1,533
9.! SHARE
HOLDER’S 1,243 6,651
EQUITY 1,117 5,404 5,393
956
872
CAGR
15.1% CAGR
12.7%
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
!
$%%&'&()!$%!*+,(-+$#!.%(!/+#0
!
269
259
242
BUSINESS REVIEW
Awards 33
Awards
Financial Reporting (FiRe

Awards)
Bronze for Integrated Report of
the Year Award
Commercial Banks category
(winner)
Best Listed Entity (winner),
Sustainability Reporting Award
(winner)
Corporate Governance Award
(winner).
Best Woman CEO

Banking Sector - Uganda 2021
Ms Anne Juuko, Global Brands
Magazine (GBM)
Best Banking Brand, Uganda 2021
Most Trusted Banking Brand,
Uganda 2021
Stanbic
Stanbic Bank
Bank Credit Ratings
Ratings (2021) 2021
Local Rating = AAA (Uga) Stable

International Rating = B+ (Negative Outlook)
Deposit Rating = B1 (Stable)

Counter-party Credit Risk Rating = Ba3

BUSINESS REVIEW
Operating and
Financial Review
Ronald Makata –
Ag. Chief Financial Officer
Operating Environment closed and the level of aggregate million crucial and vulnerable groups to
demand remained low hence both global be vaccinated against Covid-19.
The 2021 operating environment
and local economies were closed for a
started with optimism on economic Parliament passed the National Social
period of time the supply outweighed
growth recovering from the contraction Security Fund (Amendment) Bill, 2021
demand for dollars. Most of supply came
experienced in 2020 and renewed and the President assented to this law
from exporter flows (coffee and cocoa),
hope of an end to the pandemic. The in January 2022. The law allows workers
as well as NGO inflows. The currency
rebound in the first half of the year was who have saved for over 10 years and
is expected to remain range-bound in
dampened by a second Covid-19 wave have reached the age of 45 mid-term
2022 with activity picking up once the
that triggered a 42-day nationwide access of 20% of their savings. It further
economy fully reopens after all Covid-19
lockdown in June 2021. A rebound was streamlined the supervision of the Shs
containment measures are lifted.
noted later in the year as the economy 15 trillion fund between the ministries of
partially reopened, reflected in the The interest rate environment followed Gender and Finance.
improving Purchasing Managers’ Index a similar trend as as the CBR with
(PMI) from a low of 34.9% in June 2021 Treasury Bill rates printing lower across The Central Bank started a consultative
to 51.5% at close of the year. However, all tenors in 2021, the primary auctions process to increase the paid-up capital
Tourism and Education sectors remained for December closed with treasury requirement for commercial banks
subdued. Bank of Uganda maintained bill yields for the 91-day, 182-day and from UShs 25 billion to UShs 150 billion,
its Credit Relief Measures (CRM) and 364-day tenors at 6.5%, 8.5% & 10.4% credit institutions from UShs1bn to
Covid-19 Liquidity Assistance Program respectively from 8.0%, 10.71% & 13.2% UShs 25 billion and micro deposit taking
(CLAP) towards Supervised Financial at end of January 2021. This was largely institutions from UShs 0.5 billion to UShs
Institutions into September 2021. The attributed to continued offshore interest 10 billion. This might see some banks
CLAP remained available to ensure in local paper and increased market getting capital injections or mergers and
viability of solvent Supervised Financial liquidity. acquisitions.
Institutions that might have come under
liquidity stress during the pandemic. Annual Headline Inflation was largely The Central Bank used 2021 as the
benign having closed at levels of transition year from Basel I to Basel
The central bank through, its 2.2% in December 2021 compared to II capital accord. Basel II requires
Monetary Policy Committee (MPC) 2.0% in January 2021. Annual Core banks to hold capital for operational
took the decision to continue with an Inflation printed 2.9% in December risk in addition to credit risk and
accommodative monetary stance in a 2021 as compared to 5.5% recorded market risk which banks were already
bid to support recovery of the economy. in January 2021. Inflation is forecast holding capital for. Basel II recognises
The central bank rate (CBR) was to rise but stabilize around the 5% collateral in computing credit risk as
dropped by 50 basis points from 7% target, contingent on the evolution of well as international credit ratings of the
to 6.5% the lowest level ever since its the pandemic and the efficacy of the borrowers.
inception and maintained for the rest vaccines.
of the year. This was on account of the
Other key developments
outlook and balance of risks with the Regulatory updates
most significant being the duration of • The International Monetary Fund
The National budget of UShs 44.8 (IMF) approved a 36-month
disruptions to the global production
trillion for the Financial Year 2021/2022
chain and related stronger inflation arrangement under the Extended
was passed. This was lower than the
pressures globally. Credit Facility (ECF) for Uganda
2020/2021 budget of UShs 45.5 trillion.
in an amount equivalent to US$1
In the budget UShs 7.6 trillion was
The Uganda shilling appreciated against billion to support the post-Covid-19
allocated for human capital development
the US dollar during the year to close the recovery and the authorities’ plan
expected to see an increase in the
month of December 2021 at 3,450/3,570 to increase households’ incomes
number of teachers and health workers,
levels compared to 3,665/3,720 and inclusive growth by fostering
UShs 6.9 trillion for peace and security,
in January 2021. Given that most
UShs 5.1 trillion for infrastructure private sector development.
economies across the globe remained
development and UShs 560 billion for six

BUSINESS REVIEW
Operating and Financial Review (continued) 35
SUHL demonstrated resilience and was

adequately capitalised in the face of considerable
stress attributable to the economic impact of
Covid-19 response measures and presidential and
parliamentary elections.
• The United Kingdom extended will apply to highly capitalised environment and increased credit
an offer to lend Uganda £ 2 investment and complex mining. risk due to the impact of covid 19.
billion (about Ush 9.5 trillion) for Owing to a recovering economy,
The Government of Uganda and World
industrial park development. The our continued focus on supporting
Bank signed an agreement of $ 180.3
£ 2 billion is in addition to the £ our clients during this difficult time
million (more than Shs 633 billion) for
500 million that had earlier been with innovative solutions, enabling
additional financing for the Uganda
earmarked by UK Export Finance our employees remain healthy and
Covid-19 Response and Emergency
(UKEF) for the Kampala Industrial continue to operate seamlessly and
Preparedness Project (UCREPP).
and Business Park (KIBP) which prudently addressing risk lead to our
Project financing in the amount of
covers an area of approximately consolidated results closing at a profit
$ 15.2 million (U Shs 53.3 billion)
890 hectares (8.9 km2) that the after tax (PAT) of Ushs 269 billion.
will be directed towards preventing,
Government has earmarked to
detecting and responding to The performance was attributed to
become a model industrial park for
Covid-19 and strengthening national strong double digit trading revenue,
the rest of the country.
systems for public health emergency well managed credit impairment and
preparedness in Uganda continued investment in technology.
Outlook for the 2022
We remain very optimistic about 2022 The Government of Uganda presented Key highlights were:
with full reopening of the economy to parliament the budget estimates
and key developments in oil and gas for the 2022/2023 financial year
albeit partial dampening by world totalling Shs 47.2 trillion with over Strong growth in
events and local developments. UShs 1 trillion allocated to the full trading revenue
operationalization of the Parish
Uganda, Tanzania governments Development Model, a Government
and France’s Total Energies and strategy or approach for organizing
partner China National Offshore Oil and delivering public and private
Corporation reached an Investment sector interventions for wealth
Decision (FID) agreement to kick We managed credit
creation and employment generation
start crude oil production. The $10 at the parish level as the lowest
impairement
billion investment will pave the way economic planning unit. Government
for the export of millions of barrels of also tabled nine tax amendment
black gold that was first discovered bills to streamline tax administration
in 2006 in Uganda, one of the world’s in the 2022/2023 financial year
most biodiverse regions. The oil to smoothen the administration of Continued investment
will be pumped from Uganda in a existing taxes. in technology
1,443-kilometre (900-mile) heated
pipeline one of the longest of its type Financial Review
when completed, through Tanzania to
We remained resilient in 2021, this
the Indian Ocean port of Tanga.
saw a rebound to a positive growth Financial Performance
Parliament passed the Mining and trend in profitability year-on-year, Review
Minerals Bill, 2021 which will see the having dipped in 2020 due to the A brief review of the major assets
establishment of the Uganda National impact of Covid 19. The Group's and liabilities, how they affected the
Mining Company that will manage the earnings closed at Ushs 269 billion consolidated results and the drivers
Government’s commercial holding which was 11.4% above the previous behind the variances year on year is as
and participating interests in mineral year, demonstrating the diversity in follows.
agreements. The mineral agreements the revenue model, overcoming the
and production sharing agreements continued disruption of business

BUSINESS REVIEW
36 Operating and Financial Review continued
Note: Given that Stanbic Bank Brief reviews of other key 2021. The prudent approach taken
Uganda Limited is the major towards impairment at the start of
subsidiary of Stanbic Uganda
factors impacting the the pandemic started to payoff in
Holdings Limited (SUHL) for the performance of Stanbic 2021, shown by the reduced credit
year ended December 2021, the Bank are reflected below: loss ratio largely from the CIB and
commentary below will largely BCC portfolio supported by the
Margins
focus on the banking subsidiary. It is reopening of the economy.
This represents the profit margin
however important to highlight that
between the interest rate earned
two of our new subsidiaries have
from earning assets and interest Below is an analysis of
already broken even before their
second anniversary.
rate paid on deposits and other the major revenue lines
sources of funding. The key generated by Bank and
Cash and Balances with Banks drivers of this ratio are the CBR,
the proportion of interest earning the costs incurred in the
These are made up of mainly the cash
we hold in our network, statutory assets and deposits to the bank process:
cash reserves with Bank of Uganda, total assets and funding base
Net Interest Income
balances with other commercial respectively, the portfolio mix of
Net interest income is the
banks and repos held with the Bank the assets by tenure and currency
difference between interest
of Uganda for short periods awaiting and the credit quality of assets on
received on lending products and
suitable investment opportunities. the book.
financial investments, and the
The net interest margins (NIMs) interest paid on deposits and debt
The cash and balances with banks
registered a decline following a funding and subordinated debt.
edged up by 14.5% against prior year,
resulting from timing of significant reduction in the CBR and a general
The net interest income for the year
settlements of nostros, repo and decline across the yield curve for
increased by 1.5% to UShs 498.0
placements with other Banks, In government securities. The CBR
billion from UShs 490.8 billion
addition to the growth in customer remained relatively stable decreasing
recorded in 2020. The upward trend
deposits as well as maturing financial by only 50 bps around June 2021 to
was as a result of the marginal
investments. close at 6.5%. This resulted in lower
increase in investment in interest-
yields on the assets leading to NIMs
bearing assets, notably customers
Securities Investments dropping by 59bps from 6.8% in 2020
loans and advances together
Government securities holdings to 6.3% in 2021.
with increased investments in
dropped year on year largely on the Credit Loss government securities held at fair
trading books by 27.5% but slightly The credit-loss ratio (CLR) is the value through other comprehensive
edged up under financial investment impairment charge expressed as a income (FVOCI).
by 1.9%. The continued uncertainty in percentage of the closing loans and
interest rate outlook led to a cautious Non-interest Income
advances book. It represents the
position held focusing on the trading Non-interest revenue comprises
loss the Bank incurs as a result of
instruments. net fee and commission revenue,
delinquencies from customers and
trading revenue and other revenue.
also general credit provisioning for
Loans and Advances to Customers Non-interest revenue edged up
un-identified credit losses.
Loans and advances grew by 2.8% by 19.0% closing at UShs 405.5
(UShs 104 billion) in 2021. The The Covid-19 outbreak continued billion from UShs 340.6 billion
growth was supported by the partial to evolve in 2021 with a significant recorded in 2020. The increase was
reopening of the economy and mid-year increase in cases driven by registered under trading revenue
increased Government investment the Delta variant. During the year, and fees and commission income,
in power & infrastructure, counter Bank of Uganda extended the Credit but a decrease registered under
balances largely under the BCC and Relief period by six months to the the other operating income as
CHNW portfolio, while CIB portfolio end of September 2021 in response highlighted below:
growth was restrained by transfer to the disruption triggered by the
of part of the facility externed to the Net Fees and Commission
global pandemic. Following the expiry
Government of Uganda. Net fees and commission income
of the relief period on 30 September
increased by UShs 7.5 billion (4.8%)
2021, Bank of Uganda granted an
Customer Deposits to close at UShs 164.8 billion from
additional one-year window within
Customer deposits maintained a the UShs 157.3 billion recorded in
which supervised financial institutions
growth trajectory up by Ushs 248 2020. The performance of fees and
may at their discretion grant credit
billion representing a growth rate commissions was attributable to
relief to borrowers in the education
of 5%. The growth was largely from increased activity from short term
and hospitality sectors. The credit
the SME following the reopening of facility fees, trade finance and a
relief measures are aimed at helping
the economy offset by a reduction in general increase across transactional
commercial banks and other
the CIB business segment following lines.
supervised financial institutions to
increased capital investments in continue restructuring loans and Trading Revenue
expansion projects. support these targeted sectors. Trading revenue was up by UShs 56.4
billion (31.8%) closing at UShs 233.7
The Bank focused on early
billion from the UShs 177.3 billion
engagement of borrowers in high-
recorded in 2020. The trading revenue
risk segments and applied Bank of
growth against the prior year was
Uganda credit relief measures where
attributed to good performance under
appropriate.
the trading desks, where both the
The credit loss ratio dropped from money market desk and fixed income
2.4% recorded in 2020 to 1.8% in desk were positively impacted by the

BUSINESS REVIEW
Operating and Financial Review continued 37
drop in interest rates. In addition to UShs 91.7 billion in 2020, with the infrastructure.
an uptick in foreign exchange trading credit loss ratio closing the year at
Total operating cost was up (14.4%)
revenue resulting from volatility of the 1.8% in 2021 compared to 2.4%
closing the year at UShs 481.9 billion
rates, increased transaction volumes in 2020. This resulted from drop
compared to UShs 421.0 billion in
and positive margins from trades in provisions in the CIB space by
2020.
done during the year. UShs 22.7 billion largely against
key names like; Mogas coupled Staff costs reflected a growth of 5.3%
Credit Impairment Charges
with improvement in probably of from UShs 169.5 billion in 2020 to
Credit impairments represent the
different and decreased exposure UShs 178.5 billion. The increment was
losses incurred as a result of the
at default partially offset by as a result of annual inflation-related
inability of our customers and clients
increased risk under exposures. increment and deliberate efforts to
to repay their debt obligations
to the Bank. The credit loss ratio Operating Expenses develop a future ready work force.
expresses these impairment charges Operating expenses represent the Other operating costs were up
as a percentage of average loans and costs that were incurred to support by 20.6%, closing at UShs 303.3
advances and indicates how much, on current and future revenues. Inflation billion from UShs 251.5 billion in
average, of each Shilling lent by the and foreign exchange rates are key 2020. The increase was largely
Bank results in credit impairments. external indicators that contribute to under the Information technology
the increase in such expenses. Many spend following a deliberate effort
The impairment charge dropped
internal factors also affect the growth to increase investment in innovative
by UShs 21.3 billion year on year to
in operating expenses, such as our solutions to improve our client
UShs 70.4 billion from
staff and investments in branch and IT experience.
5 Year Performance
2021 2020 2019 2018 2017
Income statement (UShs’m)
Profit before income tax 351,210 318,613 349,634 296,678 265,666
Profit after tax 269,312 241,686 259,094 215,140 200,468
Financial position (UShs’m)
Shareholders’ equity 1,533,303 1,243,439 1,116,866 956,352 872,280
Total assets 8,720,096 8,578,898 6,650,825 5,393,059 5,420,531
Loans and advances to customers 3,722,073 3,618,353 2,852,647 2,508,828 2,133,986
Property and equipment 75,545 81,418 86,438 51,527 75,267
Customer deposits 5,741,043 5,493,480 4,722,204 3,892,295 3,620,946
Returns and ratios
Return on average equity 19.4% 20.5% 25.0% 23.5% 25.3%
Return on average assets 3.1% 3.2% 4.3% 4.0% 4.0%
Loan to deposit ratio 64.8% 65.9% 60.4% 64.5% 58.9%
Cost to income 51.3% 48.3% 49.0% 51.5% 50.5%
Capital adequacy
Tier 1 capital ratio 19.9% 15.8% 15.8% 16.2% 21.3%
Tier 1 + Tier 2 capital ratio 21.9% 18.0% 18.3% 18.9% 24.2%
Risk weighted assets (UShs’m) 6,415,439 5,825,212 4,917,214 4,425,055 3,650,214
Share statistics (UShs)
Closing number of shares in issue (in millions) 51,189 51,189 51,189 51,189 51,189
Earnings per share - basic and diluted 5.26 4.72 5.06 4.20 3.92
Dividends per share - proposed and/or paid 0.98 1.86 2.15 1.90 1.76
Other information
Number of employees 1,756 1,612 1,667 1,664 1,740

BUSINESS REVIEW
38 Key Perfomance Indicators
Key Profitability
Perfomance
RETURN ON EQUITY
Indicators 25.3%
23.5%
25.0%
returns (RoE)
5.1
Objective: To deliver consistent
4.7
4.2 with a target
5.3
4.0% 4.0%
20.5%
19.4% 3.9
minimum threshold set at 25%.
Results: RoE was 0.9% down up

from 2020 given the impact of
the pandemic especially during
the first three quarters when it
worsened forcing the deterioting
state of the economy.
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018
24.2%
21.9% 50.5% 51.3% 49.0% 51.3%

48.3% 21.3%
18.9% 18.3%
18.0%
25.3% 25.0% 5.1
5.3 EARNINGS PER SHARE
4.3%
23.5% 4.7 4.0% 4.0%
Objective: To deliver consistent 16
20.5% 4.2 1.4%
19.4% 3.9 earnings per share growth with
3.2% 3.1%
12% 12% 12% 12% 12% a minimum threshold set at GDP
growth plus inflation
Results: EPS was up by 0.6 % 8%

from previous year in line with the 0.2%
rise in profits by 11 %.
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2
24.2% RETURN
21.3% ON ASSETS
5.3 19.9%
25.0% 5.1 21.9% 50.5% 51.3% 4.3% 51.3% Objective: To effectively deploy
2.4%
.5% 4.7 4.0% 4.0% 49.0% 48.3%
the Bank’s liquidity into the15.8%
16.2% 15.8%
20.5% 18.9% 18.3%
4.2
19.4% 3.9 18.0% optimal balance of assets that
3.2% 3.1% generates consistent returns 1.8%
above the internal benchmark
1.5%
1.4%
of 4%
8% 10% 10% 10% 10%
12% 12% 12% 12% 12%
Results: RoA closed 2021 at 0.1%
down up from prior year. The
slow growth was mainly driven
by muted growth on loans and
0.2%
advances for the year.
18 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

21.9% 50.5% 51.3% 49.0% 51.3% 2.4%

48.3%
BUSINESS REVIEW
Key Perfomance Indicators continued 39
25.3% 5.3
25.0% 5.1 4.3%
23.5% 4.7 4.0% 4.0%
20.5% 4.2
19.4% 3.9
3.2% 3.1%
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Capital Adequacy Efficiency
21.3% 24.2% CORE CAPITAL COST TO INCOME

19.9% ADEQUACY RATIO (CTI)
21.9% 50.5% 51.3% 49.0% 51.3% 2.4%
Objective: To maintain Objective: 21.3%
16.2% 15.8% 15.8%
48.3% 21.3% To attain a
18.9%
adequate
18.3%levels of target cost to income
25.3% 18.0% 5.3 19.9%
25.3% 25.0% capital 5.3
5.1 4.3%
2% 3.1% 25.0%23.5% 5.1 required to cover 4.7 4.3% 4.0%
4.0%
ratio of 50% target in 1.8%
23.5% for regulatory
4.7capital 4.0% 2021.
20.5% 4.2
4.0% 1.5% 16.2% 15.8% 15
16.2% 15.8% 15.8%
20.5% 19.4% 4.2 adequacy
3.9 requirements, 1.4%
19.4% 3.9 3.2%
10% 10% 10% 10%
business growth and 3.2% 3.1%
Results:
3.1% Our cost-to-
8% 12% 12% 12% 12% 12%
investment prospects income ratio declined to
and for assessed stress 51.3%, missing the set
events. target of below 50% by
8% 10% 10%
1.3% as at8%202110%
due to
10% 10% 10%
Results: Tier 1 Capital 0.2%

continued investment
closed at 19.9% in IT to enhance our
020 2021 2017 2018 2019 2020 2021 compared
2017 2018 2019 to2020
10% 2021 2017 2018 2019 2020 2021 digital capabilities
2017 2018 and 2019 2020 2021
regulatory requirement. other operational loss
Capital position remains provisions.
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2
2017 2018 2019 2020 2021 2017 2018 strong
2019to meet
2020any2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
growth aspirations.
4% 24.2%
24.2%
1.8% 21.9%
21.9% TOTAL
50.5% CAPITAL
51.3% 51.3%
51.3% CREDIT LOSS
2.4% RATIO
50.5% 51.3% 49.0% 49.0% 48.3% 2.4%
18.9% 18.3% ADEQUACY 48.3% (CLR)
18.9% 18.3% 18.0%
18.0% 1.8%
Results: Total Capital 1.8% Objective: To maintain a
Closed at 21.9% 1.5%
1.5% strong quality customer
1.4%
compared to 12% 1.4% lending portfolio, with
12% 12% 12% 12% 12% regulatory requirement. credit loss ratio below
12% 12% 12% 12% 12% The capital position 2.5%
remains strong and
sufficient to cover the Results: The CLR of 1.8%
020 2021 Bank growth aspirations. 0.2%
lower than the 2.4%
0.2% recorded in the previous
year ,maintaining below
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 risk appetite
the target
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
level of 2.5%.

BUSINESS REVIEW
40 Corporate and Investment Banking Review
Corporate and
Investment
Banking Review
Paul Muganwa
Head CIB
2021 overview: People and Culture: Financial outcome:

Going into 2021, we were confident Our people are core to the execution 2021 was another year of record
in the resilience of our business, of our strategy and ensuring talent performance for the CIB business
its ability to withstand shocks and retention, growth, and experience earmarked by a careful balance
facilitate growth in our clients’ within the organisation is critical. In between driving revenue growth and
businesses and their respective spite of the persistent adverse impact managing credit risk. Total revenues
ecosystems. This confidence was of the pandemic in 2021, the employee grew by 10% in 2021 with client
affirmed by the double-digit growth engagement indicator (eNPS) revenues holding firm and credit
of 15% in profitability for 2021. increased by 11 points from 61 in 2020 impairment charges reducing by
to 72 in 2021. The key consideration 88% in a sector which saw credit
Client focus: supporting this improved level of impairment charges increase by
engagement is over 95% of CIB staff UShs 114 billion or 26% year on year.
Our objective in 2021 was to support
understanding how their work and
our clients in the“Post-Covid”
efforts contribute to the Purpose of the Sustainable financial performance in
recovery initiatives, benchmarked
bank (Uganda is our Home, We drive the CIB business is hinged on the agility
on projected GDP growth and the
her Growth). to switch revenue drivers as and when
positive sentiments as captured
the operating environment evolves.
in the Purchasing Managers Index
(PMI) which reverted to above 50% Risk and conduct: The CIB business grew market share in
Trading revenues from 44.2% in 2020
in February 2021. Key to note is Our business risk appetite in 2021 was
to 45.7% in 2021 and market share for
that substantive credit facilities congruent with the broader economic
Trade contingents remained well above
were granted to critical sectors environment in which supporting
40%.
including Manufacturing (UShs business recovery was critical. We
630 billion - 39%), Transport and ensured that our operations continued
Communication (UShs 321 billion - to be guided by the embedded risk Looking ahead:
20%), and Trade (18%)were granted appetite parameters and a prudent risk Like many of the clients we serve, we
to the sector, The core client management culture. Our expertise in are optimistic about the future, the
portfolio (excluding Government of financial risk management enabled us recovery of the economy to the 5-6%
Uganda budget support loan) grew to navigate the macroeconomic risks GDP growth levels over the medium
by 9.8% in 2021 and well above total and accelerate returns in the trading term, the emerging opportunities in the
sector growth of 8.5%. portfolio. We experienced significant Oil and Gas sector and the ripple effect
pressures under operational risk on the overall economy.
We continued to support key largely orchestrated by third party risk
initiatives of mobilising affordable which slowed down our momentum in Our focus in 2022 entails accelerating
financing for the wider population the second half of 2021, but that did investments in capital structures to
through the Enterprise Economic not deter us from delivering strong support our clients’ short, medium,
Restart Fund (EERF) and these profits. We have put in place enhanced and long-term goals, deepening
trickled down to SACCOs and VSLAs risk mitigating factors which include the talent pool, deploying new risk
through the bank’s Business and application of data models with mitigants leveraging data, driving
Commercial Clients (BCC) segment. the ability of detecting transaction new innovations within the payments
We have established structures to anomalies and identifying behaviour and collections space supported by
increase utilisation of this affordable that is not consistent with normal strategic partnerships, and keeping
offering by inviting other Financial client behaviour. These measures will the promises to our shareholders of
Institutions and Non-Banking continue to support our sustainability delivering a decent return on their
Financial Institutions to participate in 2022 and beyond. investment.
in the initiative.

BUSINESS REVIEW
Business and Commercial Clients Review 41
Business and
Commercial
Clients Review
Emma Mugisha
Head BCC
Our business from data and customer insights, we Financial Performance

successfully rolled out our Education
Business and Commercial Clients Continued growth on Balance Sheet
value proposition in which we revised
(BCC) provides banking and other with Customer Deposits at UShs 1.93
our lending parameters (pricing,
financial services to commercial trillion, up year-on-year by 10%. Loans
interest concessions, prequalification
businesses, medium and small and Advances growing 8% year-on
criteria etc.) This allowed our
enterprises, educational institutions, -year to UShs 1 trillion, driven by uptick
customers to start the year strong
public sector and Non-Government in Trade on the back of economic
after 2 years of closure. Similarly, we
Organisations across the country. recovery from 2020. Revenue growth
refreshed our commitment to SACCOS
2021 proved to be quite the year-on-year of 4% mainly from
and VSLAs in cognisance of their
challenging year for our customers, Non-interest Revenue on the back
criticality in driving financial inclusion.
with several of their businesses of continued economic recovery
We revised our overall risk appetite and
taking significant strain on account supporting growth in business activity.
acceptance criteria and put in place the
of the second COVID-19 Lockdown. Double-digit drop in impairments
internal structures and resources to
The impact continued to be felt in year-on-year despite risk remaining
support growth in this space. Strategic
the lower base (SACCOs, SMEs) elevated. Profit After Tax up 59% year-
partnerships formed a critical part of
and more so in the education on-year to UShs 28 billion.
our delivery; we onboarded key FinTech
sector that remained on prolonged
partners and risk share partners with Looking ahead
lockdown until early this year.
similar impact goals to serve the new
Our commitment, in this context We will continue to deepen our
and growing client base. Digitalisation
remains; to be a partner with customer relationships by delivering
remained a key priority with notable
our customers even through the value throughout their ecosystems, via
progress made in decentralising
economic troughs, to deepen our simplified, tailored value propositions.
processes as far as possible (e.g.
client relationships, deliver value, Continued focus on digitisation and
trade services) to improve customer
and partner with our clients for ensuring stability, accessibility and
experience.
growth post the pandemic. convenience in our channel capabilities
People and Culture and system availability to provide a
Client Focus Our culture journey continued to take
frictionless client experience. Capacity
In line with our purpose, we building and training for SMEs, through
centre stage in line with our future-
completed our Corporate the Stanbic Business Incubator, will
ready transformation. The hybrid
reorganisation, splitting what was be critical in supporting their business
work environment that we rolled out
formerly known as Personal and recovery. We remain confident that
in 2020, at the start of the COVID
Business Banking (PBB) into two the opportunities created by the
pandemic, provided the requisite
i.e., Consumer and High Net Worth announcement of the Final Investment
support to maintain productivity. The
Clients (CHNW) and Business and Decision (FID) on Oil and Gas will boost
concurrent corporate reorganisation
Commercial Clients (BCC). This growth across the various sectors
created growth opportunities within
refreshed structure has allowed us and that we will play a critical role in
the team resulting in an overall rise in
the depth required to solution for championing thought leadership to
engagement levels (eNPS up to +60
our customers in their respective deliver client growth.
from +52 prior year).
sectors. In response to insights

BUSINESS REVIEW
42 Consumer & High Networth Review
Consumer & High

Networth Review
Samuel F. Mwogeza
Head CHNW
During the past year under review, 4. Uganda is Connected. We are a lowest rates possible and within the
as part of the Group’s broader future connected society with relationships shortest timeframe through leveraging
ready transformation (FRT) journey, inter-woven in the business, our investment in our data and digital
the Consumer and high networth social and many other facets. Our capabilities.
client segment (CHNW) spun off as a customers live integrated lives and we
separate client segment from the prior must solve for them with that in mind. Our non-interest revenue growth was
Personal and Business Banking business a strong reflection of the benefit of
segment. Our segment serves consumer Following from these themes, we defined enabling improved convenience for our
clients ranging from high net worth to our strategic priorities as; leading in customers through our digital platforms
inconsistent income earners, based off customer experience, enabling scalability and also diversifying our offering based
their unique needs. CHNW also provides through low cost platforms (Flexipay, of our customers lifestyles. In particular,
oversight for all the bank channels. digital and Agent banking) and right our digital based fees grew by strong
partnerships, deepening our client double digits and we also recorded very
As we bedded down the change from relationships through personalized strong fee growth from Bancassurance,
this reorganization, we still needed to solutioning, enabling and empowering currency trading, investment products
navigate the challenges of the continued our employees to make the right and short term financing.
disruption occasioned by the Covid-19 decisions quickly and last but not least,
pandemic and meaningfully enable doing the right business the right way. Our credit impairment did register an
our clients and our employees as a I am happy to report that we achieved increase of approximately 55% with the
commitment to our bank purpose; good progress on these priorities with bulk of this increase concentrated in
Uganda is our Home and we Drive her our active client base registering good our “self-employed” housing portfolio.
Growth. We reflected deeply on this growth, achieving record employee Notably the largest proportion of our
purpose and defined that for us, bringing engagement scores and generally well lending portfolio remained well within
this purpose to life meant a commitment managed risk within the appetite levels risk appetite supported by strong client
to enable better lives for our customers. across most of the enterprise risk engagement through our ecosystem
Everything we do as a team is centred categories. approach that supports de-risking of the
on how effectively we listen and respond bulk of our lending in the “employed”
to the needs of our customers and help Notably our financial results were a space. We maintained our commitment
them solve the important things that reflection of the progress on these to partnering with our clients through
actually help them advance towards strategic priorities. Our top line revenue managing the impact of the pandemic
a better life. And in responding to this increased by 9% with good growth noted on their livelihoods and maintained an
commitment, we have centred on four on both the Net Interest Income (7%) accommodative stance to supporting
themes that shape our strategic focus; and also Non-Interest revenues (12%). clients with debt restructuring in line with
Loans to our customers increased the guidelines issued by Bank of Uganda.
1. Uganda is Young. With over half by a strong 15% as we deliberately It is important to note that the Covid-19
the national population below the extended affordable financing across a restructured portfolio has responded well
age of 18 we must solve for what is broad spectrum of our customer base through out the period.
meaningful for the youth by enabling with notable growth came under our
their preparation and transition into home loan portfolio as we identified We also continue to drive focus on
productive society opportunities to responsibly grow enabling cost efficiencies and lowering
within our risk appetite parameters. It the cost to serve our clients. We have
2. Uganda is Rising. All Ugandans is important to emphasize that we were notably registered significant gains on
are on a personal wealth journey keen to support our customers through our physical channel transformation
and the emerging opportunities the strained economic time and we journey and also continued to strengthen
present real possibilities to improve leveraged our strong liquidity base and our alternative channel capabilities on
their disposable incomes, increase our digital platforms to avail the most our digital and agent banking platforms.
their portfolio of investments and affordable financing and in the shortest The outcome of this journey is that we
safeguard their wealth for future time possible under our “NOWNOW” now have less than 10% of our total
generations campaign. Under this campaign, loans transactional activity being processed
were disbursed in as low as under two at our branches. In addition, excluding
3. Financial Inclusion is critical. A the impact of a one-off exceptional
large portion of the population are minutes for customers who took-up the
lending accommodation availed on our operational loss event our cost to income
still excluded from the financial (CTI) ratio would have dropped to
ecosystem and there’s a central role digital platforms. It continues to be a
priority for us to empower our customers approximately 51% compared to 53% at
to play in enabling every Ugandan prior year. As we continue to transform
have a chance at financial freedom to access required financing at the

BUSINESS REVIEW
Consumer & High Networth Review (continued) 43
Our segment serves consumer clients ranging from high net worth to
inconsistent income earners, based off their unique needs. CHNW
also provides oversight for all the bank channels.
Our strategic priorities; leading in customer experience, enabling

scalability through low cost platforms and right partnerships,
deepening our client relationships through personalized solutioning,
enabling and empowering our employees to make the right decisions
quickly and last but not least, doing the right business the right way.
and re-purpose our physical channels, banking channels. Summary of key off enabling simplified, low-cost and
the intent will be to see all our branches actions as below; convenient customer interactions that
attain fit for purpose size and capacity are supported by an ecosystem of value
and to enable more value-add activities • Enhanced credit monitoring and (merchants, agents, broad base of
in the branch as we migrate the bulk of risk appetite review on self- active users). I’m happy to report that
the transactional and enquiry activity to employed proposition. we have registered good gains on this
our alternative channels. • Strengthened operational journey with customers now able to
risk monitoring capabilities self-onboard without any engagement
Despite the strong progress highlighted with the Bank in under two minutes as
above, we did however note two areas of with interventions scoped
on leveraging enhanced data long as they have a national identity
concern that we have defined actions in card. We closed 2021 with over 115,000
place to turnaround; capabilities, decentralized and
regular risk and control self- wallets and almost 25,000 merchants
a) Decline in our client Net Promoter assessments, strengthening the and we continue to see improvement
Score from +22 to +19. We have risk governance operating model in the activity rates of both the wallets
reviewed deeply the feedback and continually improving staff and merchants. We continue to identify
received from our customers and awareness to emerging risks. other solution providers we can integrate
have identified four key actions with to create a more valuable financial
we need to address to improve the Our focus in 2022 remains rooted in ecosystem for our Flexipay customers.
experience of our customers. doing valuable things for our customers
quickly. We are committed to partnering Developing personalized customer value
• Always On: Accelerate actions to with our customers and the next propositions (CVPs) that meet the needs
improve the uptime of all client generation have a better life through of our customers continues to be a
facing systems. These closed the availing relevant and affordable financial priority. We have seen good early impact
year at 96% against out target of and “beyond financial” solutions. We of some of the new CVPs developed over
99%. have set an ambitious but achievable the last year. Notably, we launched a
target to directly enable the lives of government health workers CVP as an
• Strengthen the timeliness and over three million clients by 2025. Our initiative jointly developed with Ministry
quality of response to all our most important strategic priorities to of Health to support government
customer queries and concerns. enable this continue to be on leading health workers with access to low-cost
This is being enabled by our in customer experience, enabling tailored financial intermediation and
investment in the Salesforce scalability through low cost platforms free financial fitness/literacy training.
platform that has fundamentally (Flexipay/digital/agent) and right This CVP has already directly impacted
improved our resolution partnerships, deepening our client approximately 4,000 government health
management of client queries. relationships through personalized workers and availed free embedded
solutioning, enabling and empowering medical insurance cover and affordable
• Strengthen digital and alternative financing in excess UShs 40 billion
channel capabilities to reduce our employees to make the right
decisions quickly and lastly, doing the among many other benefits. We have
need to serve in branch also launched women in business value
right business the right way.
• Enrich the value propositions proposition and are refreshing the value
of our solution offerings to our Our customers continue to embrace propositions for our Affluent clients,
clients. Notably we have launched digital and agent banking as preferred farmers along defined value chains and
two very impactful propositions channels for fulfilling their financial other target groups, and we expect to
for our government health requirements and we remain relentless see positive value metrics from these
workers and also for women in on ensuring we strengthen our capacity CVPs in 2022.
business and we are on track to solve for more client needs on
these channels. The Flexipay journey We remain committed to driving
to launch more impactful value Uganda’s growth and to continue to
propositions within 2022. is particularly an exciting one for us
where we see a unique opportunity to explore opportunities to support the
b) Heightening pressure on our credit significantly lower the cost of accessing social and economic priorities that are
risk and operational loss ratios. These financial services to a wide spectrum required to enable this.
were impacted by Covid-19 strains of Ugandans while also providing a
on our self employed portfolio and an broad base of micro finance solutions.
exceptional loss incident on our agent Flexipay’s value statement is based

44 RISK MANAGEMENT AND CONTROL

RISK MANAGEMENT AND CONTROL 45
RISK
MANAGEMENT
AND CONTROL
46 Chief Risk Officer’s Statement
46 Risk Governance and Oversight
49 Risk types in Banking Activities
54 Risk Appetite and Stress Testing
55 Emerging Enterprise Risks

46 Chief Risk Officer’s Review
Chief Risk
Officer’s review
Martin Sekaziga –
Chief Risk Officer
SUHL demonstrated resilience and was consistent with Bank of Uganda Digital transformation remained at the
adequately capitalised in the face of guidelines and averted asset quality heart of key strategic initiatives designed
considerable stress attributable to the deterioration, ensuring that our clients to meet the continuously evolving client
economic impact of Covid 19 response remained a going concern during the needs and preferences. The adoption of
measures and presidential and unprecedented crisis. This also ensured digital innovation has provided
parliamentary elections. Our steadfast we maintained a strong capital position. considerable benefit to SUHL and its
risk management principles are pivotal clients while at the same time
The bank experienced a material
to ensuring we consistently underwrite exacerbated existing risks. We have
operational incident where some of its
the right business the right way in invested significant time to ensuring that
agents defrauded the bank by exploiting
pursuit of our strategic objectives. our risk management capabilities are in
a process flow impacting some agent
lockstep with the innovation strategies.
SUHL maintained financial discipline banking transactions. The incident had
This includes digitizing key risk
throughout the year and built a strong no adverse impact on customer
processes and deploying risk tools to
balance sheet underpinned by a robust transactions or balances and enhanced
provide data designed to anticipate and
risk management framework, resulting in operational safeguards were introduced
respond timely to risks.
solid liquidity and capital ratios. to the agency banking services to
prevent future recurrences. SUHL continued to rely on third parties
SUHL remains committed to continually
to perform critical services needed to
improving risk, governance, and controls In liaison with law enforcement agencies,
offer products and services to our
as we strive to build an enduring the bank undertook measures to recover
clients. We enhanced the third-party risk
franchise that exceeds stakeholder from the implicated agents who sought
management framework and tools to
expectations. This includes our to benefit from the error by retaining
adequately assess the risk posed by the
commitment to acting on the significant funds that should have been remitted to
different third parties commensurate to
societal challenges posed by climate the bank.
the criticality of the service being
change. Our Social Economic and
Currently, the bank has a network of over consumed.
Environmental (SEE) framework
3500 agents who account for nearly
articulates the principles that guide us
as we mitigate Environmental, Social and
40% of the bank’s total transactions. Risk Governance and
The model has proven to be beneficial in
Governance risks.
many ways including deepening financial
Oversight
We are actively monitoring the war in inclusion, providing business Risk Governance is an integral part of the
Ukraine including cyber security threats, opportunities to qualifying Ugandans, overall corporate governance framework.
food inflation and sanctions compliance creating jobs, taking banking services Our governance structures are informed
to ensure our risk mitigation strategies closer to customers while reducing the by Ugandan and South African
can withstand any adverse conditions. reliance on the limited number of regulatory regimes and the Standard
Furthermore, the uncertainty related to branches for basic financial services. Group enterprise-wide risk management
the upcoming Kenya elections framework. Our risk governance
In response to the significance and rapid framework is key to the identification,
exacerbates the geopolitical risk posture
growth of agent banking, the bank has measurement, monitoring and
of our operations. We remain vigilant
consciously employed a continuous controlling of risks. The framework
against these risks and are constantly
improvement approach to the provides a basis for the board and senior
assessing the effectiveness of our
operational aspects of this channel. management to establish the
response measures.
appropriate guiderails so that risk
The risk and conduct agenda remained a
This report is focused on SUHL as the creating activities are performed with
top priority during the year and we
operating entity during the year. the right mindset and are within risk
remain resolute in our commitment to
appetite that’s aligned to the broader
addressing any vulnerabilities that led to
Reflections on the Year operational risk events during the year
strategic objectives.
SUHL proactively engaged clients who and driving a culture that exhibits the All employees are responsible for the
were adversely impacted by the highest level of ethical conduct and management of risk, with the ultimate
pandemic. The interventions were done integrity responsibility residing with the Board. We

Chief Risk Officer’s Review (continued) 47
SUHL demonstrated resilience and was adequately

capitalised in the face of considerable stress attributable to
the economic impact of Covid 19 response measures and
presidential and parliamentary elections.
have a strong risk culture which is risk management governance standards,

embedded through clear and consistent risk management frameworks, and risk
communication and appropriate training management policies. The committees
for employees. Our risk management also escalate material matters that
function is independent of the core adversely impact SUHL’s risk posture to
business, including the product design, the Board.
sales, and trading functions and provides
credible challenge, appropriate oversight, Board Audit Committee
and balance in risk/reward decisions.
The BAC reviews SUHL’s financial
SUHL’s approach to risk management is statements and makes recommendations
We are actively based on set governance frameworks,
standards and processes and relies on
to the Board on matters related to the
integrity of financial reporting and the
monitoring the war in both individual responsibility and effectiveness of controls designed to
collective oversight, supported by protect assets.
Ukraine including comprehensive reporting.
cyber-security Internal Audit

Board of Directors Internal Audit is mandated by the BAC to
threats, food inflation The Board of Directors plays a pivotal role provide independent and objective
in ensuring that SUHL has an effective assurance and advisory services
and sanctions risk management system. This mandate designed to add value and improve
operations. Internal Audit provides
compliance to ensure includes evaluating key risk areas and
ensuring the process for risk assurance to the Board and Executive
our risk mitigation management and systems of internal
control are implemented. The Board has
Management on the effectiveness of
governance practices, risk management
strategies can delegated its risk-related responsibilities and controls designed to mitigate risks.
primarily to the following committees:
withstand any The Board Risk Management Committee Management Committees
(BRMC), Board Audit Committee (BAC)
adverse conditions. Board Asset and Liability Committee
Executive Management is responsible for
the daily oversight of all principal risks
We remain vigilant (BALCO) and Board Credit Committee
(BCC) with each committee focusing on
impacting SUHL and have delegated
authority from either the BRMC, BCC,
against these risks different aspects of risk management.
BALCO, or BAC to assist the
subcommittees effectively fulfill their risk
and are constantly Board Risk Management oversight mandates. The Risk
assessing the Committee, Board Credit Management Committee (RMC), Asset
and Liability Committee (ALCO) and
Committee and Board
effectiveness of our Asset and Liability
Credit Risk Management Committee
(CRMC) are management committees
response measures. Committee. responsible for risk management within
These committees provide independent the bank.
oversight of operational, compliance, The ALCO is responsible for the ongoing
information technology, legal, funding, assessment of the demand for capital
and capital risks. The committees are and the updating of the bank’s capital
responsible for setting the overall and liquidity plan. The capital and liquidity
direction on risk related matters including plans take into account the following:
approving the risk appetite statement,

48 Chief Risk Officer’s Review (continued)
1. Current regulatory capital and using regulatory formulae, the amount embedded in our capital planning and
liquidity requirements and our of capital required to cushion the impact assessment methodology.
assessment of future standards. of the losses.
2. Demand for capital and liquidity due In addition, the models enable SUHL to Business Units
to business growth forecasts, loan gain an enhanced understanding of its Business units own and manage the
impairment outlook and market risk profile, for example, by identifying principal risks inherent in the activities
shocks. potential concentrations and assessing they perform and are also responsible
3. Available supply of capital and the impact of portfolio management for deploying the appropriate controls to
liquidity, and the funding options. actions. Stress testing and scenario ensure risks are within acceptable
analysis are an integral part of capital tolerances
The ALCO formulates a capital and
planning and are used to ensure that
liquidity plan with the help of internal
models and other quantitative
ICAAP considers the impact of extreme Governance Documents
but plausible scenarios on its risk profile
techniques. These documents set out the
and capital position. It provides insight
requirements for identification,
The bank uses a model to assess the into the potential impact of significant
assessment, measurement, monitoring,
capital and liquidity demand for material adverse events and how these could be
management and reporting of risks for
risks and supports this with our internal mitigated through appropriate
effective oversight of compliance and
capital adequacy assessment process management actions. The capital
effective management of capital.
(ICAAP). Other internal models help to modelling process is a key part of our
Governance policies are approved by the
estimate potential future losses arising management discipline. A strong
relevant Board Committee.
from credit, market, and other risks, and, governance and process framework is
Three lines of defence

ENTERPRISE RISK
MANAGEMENT
1. First line of defence PROCESS
OUR CLIENTS
This is made up of business units that create risk and has responsibility for
identifying, assessing, and controlling risks through the daily activities of
the business within the governance framework.
RISK APPETITE
2. Second line of defence OPERATING CONTEXT
BUSINESS UNITS &

This includes finance, risk management, legal, compliance and
CORPORATE
governance. These units implement governance standards,
FUNCTIONS
frameworks, and policies for each material risk type and report
to management and Board governance committees. This
function also provides an independent assessment of the risks
OUR STRATEGY
created by the front line and oversees compliance with the
defined risk appetite.
The Bank’s risk appetite statement sets out the

3. Third line of defence aggregate level and types of risk that the Bank is willing
to accept to meet its strategic objectives. Enterprise risk
management processes enable the Bank to measure,
monitor, actively manage and mitigate of defence risks
Internal audit promotes assurance on the
to ensure it remains within risk appetite.
adequacy and effectiveness of the risk
management programme.
CONTROL FRAMEWORK
Risk standards, frameworks, policies,and internal controls

Risk types in Banking activities
RISK STRATEGIC CREDIT

UNIVERSE RISK RISK
The principal risks impacting The risk to current or projected The risk of loss arising out of the
SUHL are continuously assessed financial condition and resilience failure of obligors to meet their
to ascertain whether appropriate arising from adverse business financial or contractual obligations
mitigants are in place to ensure decisions, poor implementation of when due. It is composed of
the residual exposures are within business decisions, or lack of obligor risk, concentration risk and
appetite. responsiveness to changes in the country risk.
industry and operating
environment
NON-FINANCIAL FUNDING AND COMPLIANCE

RISK LIQUIDITY RISK RISK
The risk of loss incurred as a result The risk that an entity, although The risk of legal or regulatory
of the inadequacy of, or failure in, solvent, cannot maintain or sanction, financial loss or damage
internal processes, people and/or generate sufficient cash resources to reputation that SUHL may
systems or from external events. to meet its payment obligations in suffer as a result of its failure to
full as they fall due, or can only do comply with laws, regulations,
so at materially disadvantageous codes of conduct, internal policies,
terms. and standards of good practice
applicable to its financial activities.
ESG RISK COUNTRY LEGAL

RISK RISK
The risk to SUHL’s ability to achieve Also referred to as cross-border The risk of financial or reputational
its strategy arising from direct and country risk is the uncertainty that loss that can result from lack of
indirect impacts on the obligors (including the relevant awareness or misunderstanding of,
environment, society, and sovereign) will be able to fulfil ambiguity in, or reckless
governance. obligations due to SUHL given indifference to, the way law and
political or economic conditions in regulation apply to SUHL’s
the host country. business, its relationships,
processes, products, and services
MARKET INSURANCE REPUTATIONAL

RISK RISK RISK
The risk of a change in the market The risk that actual future The risk of potential or actual
value, actual or effective earnings, underwriting, policyholder damage to the SUHL’s image which
or future cash flows of a portfolio of behaviour and expense experience may impair the profitability and/or
financial instruments, including will differ from that assumed in sustainability of its business.
commodities, caused by adverse measuring policyholder contract
movements in market variables values and in pricing products.
such as equity, bond and Insurance risk arises due to
commodity prices, currency uncertainty regarding the timing
exchange and interest rates, credit and amount of future cash flows
spreads, recovery rates, from insurance contracts.
correlations, and implied volatilities
in all of these variables.

CREDIT RISK
YEAR IN BRIEF 2021

The impact of Covid-19 and the associated lockdown As the effects of the lockdown continued to reverberate
measures to contain the spread of the pandemic resulted in the economy, the Bank continued to extend credit relief
into challenges across the economy. Although there was to qualifying customers to mitigate adverse effects of the
gradual easing of lockdown measures as the year progressed, pandemic on customers. The Bank deepened interventions
the global and domestic supply chain disruptions led to a to transform client experience and drive sustainable growth.
contraction in economic activity and a steady decline in There are active programs to support agriculture, SACCOs,
consumer demand. This was particularly pronounced in real traders, manufacturing and the education and health sectors.
estate, hospitality and the public sector (in particular schools).
Gross loans were up slightly by 2.7% year-on-year given the
The manufacturing and service sectors registered below improvement in economic conditions during the year. The
average growth rates of only 2.1% and 2.5% while the credit loss ratio closed at 1.8% down from 2.6% reported in
agricultural sector grew by 3.5%, which was below the 4.8% December 2020. Credit provisions were down year-on-year off
growth rate registered in the previous year. Consequently, pickup in business activity and a prudent approach taken at
gross domestic product increased marginally to 3.3% from the start of the pandemic. From an industry perspective, asset
3.0% registered in FY 2019/20. quality of the commercial banking sector improved over the
year and it should be noted that BoU credit relief measures
have moderated potential deterioration in asset quality.
FOCUS AREAS FOR 2022

With the full opening of the economy in January 2022 and the in agro and gold-processing. Furthermore, full reopening
subsequent announcement of the Final Investment Decision, of the economy is accelerating activity in Households,
the outlook remains cautiously optimistic given the nascent Manufacturing, Construction, Trade, Agriculture and Transport.
nature of oil and gas and sector specific risks, regional political
risks plus the secondary risks from Covid-19. The Bank has also commenced initiatives to support women
and youth in line with the demographic structure of Uganda.
The outlook is that a start of activities leading to domestic The Bank is also actively driving the digitization agenda to
oil production, the construction of flagship oil projects and ensure that services are convenient, inclusive and affordable.
associated supporting infrastructure (such as roads and
other public utility facilities) will generate strong sectoral The spike in global geopolitical tensions and supply chain
growth. Inward investment and construction are set to receive disruptions to commodities like oil and wheat are likely to
a significant boost in 2022-25 from the development of the hinder the stability and growth of the economy. Although
Kingfisher and Tilenga oil projects and the East African Crude inflation has been on an upward trend, it nevertheless remains
Oil Pipeline. below the Bank of Uganda target of 5% partly because the
spike in prices of some commodities carry a relatively smaller
Alongside these developments, the industry will also benefit share of household budgets. In addition, the strong shilling
from other ongoing and planned multi-year construction exchange rate helped to dampen price pressures.
activities in energy and transport, as well as expansion
COUNTRY RISK
YEAR IN BRIEF 2021

The macro environment remained relatively stable through the measures, and the Liquidity Assistance Program (CLAP)
year despite the shocks caused by Covid-19 and the related towards Supervised Financial Institutions. The Liquidity
lockdown measures. The financial system largely coped well to Assistance Program remained available to ensure viability
the pandemic, backed by an accommodative Bank of Uganda of solvent Supervised Financial Institutions that could come
(BOU) monetary policy stance, Covid-19 policy support under liquidity stress during the pandemic.

The economy continues to recover from the Covid-19 related be sustained by an acceleration in private consumption, a
downturn. With the full reopening of the economy, economic gradual return of tourism, and foreign and domestic private
activity is expected to pick up through 2022, especially for investment in the oil sector following the Final Investment
sectors hard hit by the pandemic such as education, real Decision (FID).
estate and hospitality. Economic activity is expected to

FUNDING AND LIQUIDITY RISK
YEAR IN BRIEF
Sufficient liquidity was maintained to fund business requirements within regulatory and internal appetite limits.

Dynamic forecasting of funding and liquidity requirements tenures in the right amount, in the right currency at the right
considering the evolving macro and micro economic cost to support the bank’s strategy.
landscape to ensure liquidity risk remains well managed.
Leverage data science expertise to support a more efficient
Continued balance sheet optimization to ensure the right liquidity risk management.
INSURANCE RISK
YEAR IN BRIEF 2021

SUHL judiciously utilized an array of relevant insurance complementing the various insurance covers by ensuring a
policies to hedge and transfer risk in accordance with prudent robust internal control environment. The bulk of the Covid-19
risk management practice. The benefit of the Group Insurance impact was felt during the year and much benefit was derived
Program proved invaluable in securing covers for risks such from our various staff policies in the form of group personal
as Cyber-crime which are becoming an increasing cause for accident, staff medical cover and group funeral cover. Our
concern in the current operating environment. Our premiums insurance programme played a key role in providing relief
remained relatively flat on a year-to-year comparison with and respite from the pandemic for those affected as well as
benefits being realized from the improved loss experience on impacted members of staff.
our portfolio. Management continues to play a leading role in

In the year 2022 the focus areas include inter alia – ensuring the past to not only ensure adequate cover is in place going
that our insurance programme keeps abreast of a constantly forward but also inform management action in ensuring a
evolving risk landscape. For example, the increasing usage of robust internal control environment. Insurance risk mitigation
alternate channels to the traditional branch network means will also be incorporated in our new product approval
the risk is also diversifying into these emerging channels processes and existing products and services will be reviewed
and our programme must take this into account. We will also for adequacy of the insurance cover attached or existence of
focus on gleaning learnings from risk events that occurred in the cover where none was obtained previously.
MARKET RISK
YEAR IN BRIEF 2021

The restrictive measures undertaken by the Government election cycle. The market closed the year trading the Uganda
to minimize the spread of the pandemic had a significant shilling at 3550 against the US dollar.
impact on the economy, particularly trade and services and
this spilled into the financial markets resulting into high In the interest rate environment, we saw a decrease in rates
volatility in both the currency markets as well as interest in both short- and long-term rates following a successfully
rates. The Uganda shilling opened the year trading as high stable election cycle. The large excess liquidity in the market,
as 3715 against the US dollar, but gradually strengthened as resulting from lower credit absorption also provided further
confidence in the markets returned with a relatively stable cushion on interest rates, forcing longer duration yields lower
by almost 1.50%.

The Bank will continue to focus on monitoring and managing associated hedges in the context of current market volatility,
the trading book and banking book market risk, equity risk, including monetary policy decisions and rate changes.
own equity-linked transactions, foreign currency risk and

COMPLIANCE RISK
As regulation becomes more complex and compliance costs grow, SUHL’s focus is on making efficient regulatory compliance a
competitive advantage and embedding a strong culture of compliance across the organization.
YEAR IN BRIEF 2021

The compliance framework is guided by the motto “Doing pandemic. and this called for strengthening the AML/CFT
the right business, the right way”, a tenet which ensures control framework including revising the Know Your Customer
adherence to the regulatory framework and ethical conduct. (KYC) requirements and upgrading the AML surveillance
In 2021, SUHL continued to experience the effects of Covid-19 system to a more robust solution currently ongoing. In the
but showed resilience in terms of meeting regulatory and second half of 2021, SUHL enhanced its monitoring and
compliance obligations. SUHL actively tracked adherence to surveillance techniques with the use of data analytics and
the directives with regular updates to the Board. machine learning. Conduct risk also continued to be a
main-stay in 2021 into 2022 as strive to continue doing the
The AML/CFT Trends and typologies we witnessed in 2021 right business, the right way.
remained consistent with those seen in 2020 due to the

The role that our regulators play in the way we do business, more robust solution will be concluded in 2022. Similarly,
especially as we transition into a platform business, will remain continuously automating and digitizing our previously
a major focus for 2022. We look to further strengthen our mundane tasks with feature prominently in 2022 as we
relationships with these key regulators and journey together transition into a platform business.
as we transform the bank.
Above all, we serve our clients by putting them at the heart
Strengthening the AML/CFT control framework including of what we do, we strive for professionalism and discipline in
revising the Know Your Customer (KYC) requirements and everything we do, and we conduct our business ethically to
especially upgrading the AML surveillance system to a ensure the Bank’s sustainability.
CAPITAL MANAGEMENT
Our approach to capital management is to maintain a strong ensures that adequate levels of capital and an optimum mix of
capital base to support the growth of our business and to meet the different components of capital are maintained to support
regulatory capital requirements at all times. Strategic business the SBU’s strategy. SBU is prepared and holds enough capital
and capital plans are drawn up annually covering a three- buffers to absorb shocks arising from adverse economic
year horizon and are approved by the Board. The capital plan downturns.
YEAR IN BRIEF 2021

The Bank manages its capital levels to support business A three-year financial forecast is used to come up with a
growth, maintain depositor and creditors’ confidence and capital plan which is tested under a range of scenarios as part
create value for its shareholders strictly within regulatory of the appetite limit setting process.
requirements and risk appetite limits as approved by the
board. This function is managed under oversight of the Asset Following a second lock down as a result of a spike in Covid-19
and Liability Committee (ALCO). cases, SBU continued to support the clients while preserving
its financial position. This was testimony to the bank’s
operational resilience.

There are developments in the regulatory environment such as the transition to Basel II Capital Accord including holding capital
for Non-Financial risk. This will be a key influence in capital management while supporting business growth within regulatory and
internal appetite limits.

NON-FINANCIAL RISK
YEAR IN BRIEF 2021

The year was characterized by a continued challenging were made to ensure operational resilience is continually
operating environment largely driven by the continued impact demonstrated through successful disaster recovery tests.
of Covid-19. SUHL however weathered the pandemic related
disruptions with resilience. Major changes to the organizational architecture in readiness
for the transition to the platform model were implemented in
Nevertheless, Non-Financial risk was heightened in the period. 2021 with a material number of resultant people movements.
The variety and volume of fraud presented an evolving and There were no significant risks that could be attributable to
ever-present challenge for SUHL. As noted earlier, there this indicating the changes were appropriately managed.
was an event related to our agent banking channel that
adversely impacted our Non-Financial Risk environment. Our While new digital initiatives were rolled out as part of the
preventative and detective controls have been enhanced to transition to a platform business the need for improvements
ensure there is a reasonable expectation that risks have been in IT change processes, reconciliation, and transaction
sufficiently mitigated within acceptable tolerances. monitoring to minimize risks and loss incidents through these
channels was a major focus in the year.
While IT systems were relatively stable through the year, the
focus continued to be on ensuring minimal disruption to The three lines of defense continued to work in concert to
customers from outage on incidents. Improvements address risk and conduct matters and embed the desired
culture that’s consistent with our values.

For the year ahead, SUHL will focus on embedding the right space for faster and more accurate matching of transactional
risk culture through driving ownership and accountability items.
for risk and control at all levels of the organization. The
strengthening of the first line of control assurance capability Automating the onboarding of third parties and managing the
and resource capacity will also be key throughout the year. relationship life cycle will be critical as we partner with service
providers to meet client needs.
SUHL will also pay deliberate attention to the development
of real time fraud monitoring capability to ensure enhanced Strengthening of the cyber security posture of SUHL will
safety of transaction processing especially in the digital continue to receive attention through the requisite investment.
channels. Investment in building back-end capability to In addition, focus will be given to the management of risks
support growing transactional volumes will continue. A key introduced by increased reliance on third parties to serve.
focus area in this regard, will be in the auto-reconciliation clients
ESG RISK
YEAR IN BRIEF 2021

Effective ESG risk management plays a critical role in Among the key highlights in 2021:
achieving our Social, Economic and Environmental (SEE)
priorities. We recognized ESG risks as one of the material risks • Approval of the Environmental and Social Policy and
in 2021 and begun a comprehensive review of our governance Standard: We successfully put in place the Stanbic
systems and processes to ensure we’re aligned with global Uganda E&S policy and standard that were approved
good practice. by the Board and are currently implemented across the
business.
To support this, the Board has put in place a robust
Environmental, Social and Governance (ESG) framework and • Embedding ESG risk management tools: We also
structures including the appointment of Head Sustainability introdcued a new ESG risk management process by
to ensure appropriate oversight and management of ESG embedding a digital E&S risk assessment tool within our
risks. This framework will facilitate monitoring and tracking of credit approval processes and business operations.
both progress and impact.

As part of 2022 SEE impact strategy, ESG will remain a Another key area of focus will also include our approach to
priority focus area. The business will continue to ensure that Sustainable Finance with the aim to ensure that our financing
the E&S risk management process is effectively highlighting supports socioeconomic development and access to
key risks as we support our client’s growth as well as how we affordable energy and particularly renewable energy.
continue to conduct business within our operations.

RISK APPETITE AND STRESS TESTING
RISK APPETITE AND STRESS TESTING framework.

Risk appetite and stress testing comprise of the following key SUHL’s risk appetite governance framework provides guidance
components: on the following:
1. Risk appetite is an expression of the amount or type of risk 1. The approach to setting risk appetite triggers and risk
that SUHL is generally willing to take in pursuit of its financial tolerance limits.
and strategic objectives, reflecting its capacity to sustain 2. Responsibilities for monitoring risk profile.
losses and continue to meet its obligations as they fall due, 3. The escalation and resolution process where breaches occur.
under both normal and a range of stress conditions. The
metric is referred to as the risk appetite trigger. Risk appetite Executive Management is responsible for recommending the
could be exceeded either as a result of an adverse economic Risk Appetite Statement (RAS), which is ultimately approved by
event more severe than that envisaged under the range of the Board.
stress conditions (passive), or as a result of a decision to
increase the risk appetite to accommodate market, customer, Stress testing is a management tool and is used to assess the
or portfolio requirements. vulnerability of SBU’s key resources, namely, profitability, capital,
liquidity, and reputation, to a range of adverse events.
2. Risk tolerance is the maximum amount or type of risk SBU is
prepared to tolerate above risk appetite for short periods of Stress testing provides a forward-looking assessment of risk.
time on the understanding that management action is taken It assists in the proactive detection of vulnerabilities, so that
to get back within risk appetite. The metric is referred to as mitigating actions can be assessed and implemented timely.
the risk tolerance limit. Tabulated below are some of the key metrics, extracted out of
3. Risk capacity is the maximum amount of risk the SBU can our Risk Appetite Statement that we were tracking against, with
support within its available financial resources. indication of where we closed the year against each.
Risk profile is the amount or type of risk SBU is currently Table 1

exposed to (current risk profile) or will be exposed to under Risk
both expected and stressed economic conditions (forward risk Component Measure Appetite 2021
profile). limit
Capital Total regulatory <15.0% 21.9%
capital
Liquidity Loan to deposit >75% 53.8%
ratio (FCY)
Loan impairment Non-performing >7.5% 4.7%
loans ratio
Portfolio Metrics Liquid assets to <25% 58.7%
total deposits
Operational ≤1.0% 2.7%
losses to gross
revenue
Risk appetite setting and management

Embedding the use of stress testing results to benefit risk Further integration of stress testing and risk appetite with
management and decision-making at various levels in the strategic planning, as well as financial planning.
Bank. Monitoring the consequences of a number of events.
Continue monitoring the set Risk Appetite Limits month on
Continual refinement of internal models to determine the month for resolution of any breaches.
impact of stress scenarios.

Emerging Enterprise Risks
TECHNOLOGY
RISK DRIVERS MITIGANTS

• A multi-channel digital experience Dedicated simultaneous development,
The inability to manage,develop means more technology to keep security and operational teams focus
and maintain secure,agile relevant, up-to-date and safe from on speeding up implementation of
fraud attacks. projects and changes.
technology assets to support
• New types of devices span an Continual testing of technology and
strategic objectives extremely wide range of security applications to identify and rectify
requirements and have very different potential weaknesses that can be
security postures. exploited.
CYBER
• Remote presence technologies may
The risk of financial loss, increase the avenues for attack.
Use of adaptive cyber security which
uses a combination of artificial
disruption or damage to • Increasing number and sophistication intelligence and other methods to
reputation from breaches or of cybercrime incidents globally. dynamically shift tactics and detect
and remove threats as quickly as
attacks on transaction sites, possible.
systems or networks Multi-factor authentication integrated
into all critical payment applications
and end-user devices.
The 24/7 cyber security operation
centres are enabled with improved
monitoring capabilities for evolving
cyber vulnerabilities and attacks.
REGULATORY IMPACT
• Changing regulatory and supervisory
The risk of reputational and requirements often come at a high
Ongoing engagement with government
and regulators to support evidence-
financial losses due to the cost and are human resource based policymaking and dialogue
intensive. between public and private sectors.
inability to comply with or
• Public interest, social drivers and
keep abreast of regulatory consumerism may initiate legislative
Monitoring of international
developments, learnings and
requirements change, requiring appropriate
benchmarks to identify future
response strategies.
supervisory focus areas.
FRAUD

• Increasingly advanced cyber and Enhanced digital detection capability
The risk of regulatory sanction malware attacks are expected, which covering people, processes and
and reputational and financial may result in fraud being perpetrated. technology.
losses due to fraud, crime • Aggressive advancements in Development of predictive fraud
technology may cause unforeseeable detection and prevention capabilities
and misconduct from staff or fraud threats. using agile methodologies.
syndicates

INFORMATION

• Inadvertent or intentional disclosure • Ongoing awareness encourages a
The risk of regulatory sanction of protected information by Bank consistent information protection
and reputational and financial personnel. culture.
losses due to fraud, crime • Compromise of systems used to store • Ongoing research and threat
privileged data. intelligence to stay abreast of
and misconduct from staff or developments and to ensure the
syndicates protection of information assets.
PEOPLE

• Personnel not having requisite skills • A range of learning and development
The risk of failure of the to execute and provide service Solutions for future skills to ensure
workforce to adequately and offerings. the employees remain relevant in the
changing work environment.
efficiently serve clients, support • A rise in digitisation and automation
will deliver efficiencies and reduce • Revamp the risk culture of the bank
operations and deliver business demand for certain skillsets. • Recognition programmes that
strategy. support a culture where success is
celebrated, and employees feel
valued.
BUSINESS
RESILIENCE
• Failure to perform adequate due • Proper due diligence in selecting a
The risk of infrastructure/ diligence and ongoing monitoring of • third party and ongoing monitoring
change failure or environmental third-party relationships of their activities and performance.
impacts disrupting the services • Lack of a written contract that • Written contracts that outline the
outlines the rights and responsibilities rights and responsibilities of all
to and from the group. of all parties. parties.
CONDUCT
The risk of harm being caused • Cultural misalignment due to • By driving a culture of doing the right
inappropriate ethics, behaviours and business the right way, the Bank will
to the bank, it’s clients and and values being applied that result in continue to embed the desired
poor business practices. values, ethics and behaviours.
markets due to inappropriate
• External or internal pressures on staff • Continuing to refine the approach to
excecution of business to perform during challenging times. training through the rollout of more
activities. interactive and digital methods of
training
• Develop and implement the conduct
Risk Framework / risk culture
Journey
• Embedding and monitoring conduct-
related metrics in business units and
corporate functions across the Bank.

ESG
• A lack of dedicated resources to lead • The ESG policy and standard have
The inability to achieve our the management of ESG risks been put in place and were signed
strategy arising from our combined with limited client data off by the Board. The policy and
sources limits our ability to standard are being implemented
direct and indirect impact on demonstrate our commitment to within the business with clear
the environment, society, and sustainable financing. This may oversight and accountability from
increase the cost or limit the the sustainability unit.
governance. availability of capital in international • We introduced the digital E&S risk
markets assessment tool that ensures all
clients are assessed for any ESG risk
prior to deal closure and financing.
The E&S assessment are mandatory
and has been embedded as part of
the credit approval process

58

59
SUSTAINABILITY
REPORT
60 Introduction
67 Our Sustainability Impact
83 Building a Responsible Business
97 Corporate Social Responsibility
102 Reporting Practices

60 Sustainability of our Organisation
Sustainability of
our Organisation
Cathy Adengo
Head of Sustainability
Sustainability remains at the core of how Social Impact 905 local small businesses with
we do business. By delivering on our indirect impact reaching over a one
Stanbic plays a key role in supporting the
Social, Economic and Environment (SEE) million people supported by a total
country’s national development agenda
strategy, we are committed to creating of Ushs 3.5 billion which we invested
and through its sustainability strategy
in the community through the Bank
a sustainable path that benefits both contributes to the realization of key
and our business incubator enterprise
current and future generations. Sustainable Development Goals (SDGs)
capacity building trainings. Our priority
in critical areas of the economy.
Through our efforts to drive sustainable in 2021 responded to the community
and inclusive economic growth, our
activities continue to support the growth
of Ugandan businesses, spur job creation
and encourage clients to save and invest
for future wealth generation.
We also partner with the government

and the private sector to enable critical
infrastructure development and support
the growth of critical sectors like
education, health, agriculture and trade.
We are also enhancing our support to
environmental conservation and social
development to help make life better for
Ugandans and support the realisation of
shared societal goals.
In 2021, the business took the significant

step to establish a Sustainability
Unit with the aim to focus on the
development of the long term
Social, Economic and Environment
(SEE) impact Framework and the
implementation of the ESG risk strategy.
As a result, we are firmly embedding
considerations of social, economic and Through our Corporate Social needs brought about by the Covid-19
environmental (SEE) impacts into our Investments (CSI), we remain Pandemic, while staying within the three
committed to transforming the lives of pillars that drive our CSI—Education,
business strategy and decision-making
people in our communities through our Health and Environmental conservation
processes.
focus on promoting access to quality encompassed in our SEE strategy.
Our 2021 sustainability report education, improved health care with Despite the challenges of the pandemic
highlights our major interventions in specific interventions in Maternal Health over the last two years, our flagship CSI
and enhancing our support to Covid-19 programme, the Stanbic National
line with our commitment to our Social,
interventions. Schools Championship exhibited
Economic and Environment (SEE) and resilience, giving students and schools
Environment, Social and Governance In 2021, Our CSI initiatives directly access to knowledge and education in 24
(ESG) priorities. benefited 331,684 Ugandans and months of minimal activity.

Sustainability of our Organisation (continued) 61
Sustainability remains at the core of how we do business.

By delivering on our Social, Economic and Environment
(SEE) strategy, we are committed to creating a sustainable
path that benefits both current and future generations.
With a budget of over Ushs1.2 billion, the We extended credit to sectors that have
programme reached 100 schools, 400 the highest value contribution to economic
Through our efforts to
teachers and 60,000 students. growth. For instance, we lent Ushs 290 drive sustainable and
billion to the trade sector, which is the
We have seen the number of school second highest employer in Uganda, Ushs
inclusive economic
participation increase every year, from 36 in
2016 to 100 last year and so has the impact
225 billion in household lending, Ushs 223 growth, our activities
billion to building and construction, Ushs 218
and reach, with the number of students skilled billion to manufacturing, Ushs 150 billion to continue to support
increasing from 96 to 2, 300 this year. agriculture–the highest employer in Uganda the growth of
with agricultural SACCOs being a top factor,
Economic impact and UShs 122 billion lent to the transport and Ugandan businesses,
Stanbic Uganda continued to play a critical
role in driving economic recovery in 2021.
communication. spur job creation and
In a year that saw the economy slow down In total, our loans and advances increased encourage clients to
significantly due to effects of the Covid-19 from UShs 3.6 trillion to UShs 3.7 trillion,
pandemic, we played our role by making providing the much needed financial support save and invest for
credit available to critical drivers of growth for clients to sustain their businesses and for future wealth
hence supporting businesses create new individual to meet their day-to-day needs.
employment opportunities and keep
generation.
Ugandans in their jobs.

62 Sustainability of our Organisation
Environmental Impact
In line with our sustainability priorities, Stanbic Uganda con-
tinues to drive the environmental conservation programmes
through ensuring use of adequate infrastructure, tools and
methods for environmental sustainability.
As part of our drive to manage our direct impacts, our electricity
consumption reduced by 4% in 2021 and this is attributed to vari-
ous initiatives undertaken to reduce our total energy consumption.
Our fuel consumption also reduced by 6.3% in 2021, largely attributed
to the Logistical team’s sensitisation to the network on efficient usage.
Paper consumption also reduced by 17% as we deployed our paperless
and digital agenda.
Through our CSI environmental initiatives, we planted at least 150, 000 trees
in a bid to redevelop Uganda’s receding forest cover under the ROOT(Running
Out Of Trees) campaign in partnership with National Environment Management
Authority (NEMA) and various private sector players. We also launched a plastics
recycling awareness campaign themed “Taasa Obutonde” (Save the environment)
campaign, which was implemented in partnership with NBS, Vivo Energy, NEMA,
UBL and NBS.
Highlights
SOCIAL
INVESTMENTS
Our CSI initiatives

UShs 3.5 Billion directly benefited
331,684 Ugandans and
905 local small
businesses
ENVIRONMENT
In a bid to redevelop
150,000 Uganda’s receding forest
cover under the “Running
trees planted Out Of Trees (ROOT)
campaign.
SME CAPACITY
BUILDING
Total number of
1,967 entrepreneurs trained at
the Stanbic Business
Entrepreneurs Incubator to date.

About this Report 63
About this report

The 2021 Stanbic Uganda Holdings Limited (SUHL) The report has been developed to provide a holistic view of our
Sustainability Report presents a comprehensive analysis of our sustainability performance to a broad base of stakeholders,
sustainability performance for the year ended 31 December specifically those with whom we have direct relationships and
2021. This report provides information on how we manage regularly communicate, including our shareholders, clients,
environmental, social and governance (ESG) risks, and how we employees, government and regulatory authorities, industry
are embedding a culture of responsible banking in SUHL. It bodies and service providers. Furthermore, other stakeholders
includes an overview of our SEE framework, our material issues also include those who may be impacted by our business
and information about how we embed a strong ethical culture activities as such communities we operate in, business
and appropriate conduct. associations, civil society groups as well as our natural
environment, community development and non-governmental
organisations.
Sustainability Performance
The sustainability Performance Indicators focus attention on the
impact that SUHL has on the communities in which we operate
and discloses how the risks that may arise from interactions
with our stakeholders and other institutions, are managed and Environmental
mediated. A viable Natural environment
We recognise that we have a diverse set of stakeholders with

Sustainable
different information needs. We seek to balance these needs with Sustainable
Natural and Built Economic
our regulatory requirements by preparing several reports. Our Environment Development
annual integrated report, our primary report for our shareholders, Sustainable
provides a holistic assessment of how our strategy, governance, development
performance and prospects create value over time. Social Economic
Nurturing
Sufficient
Comminity
Economy
This report, our report to society, is for a broader set of Equitable Social
stakeholders. It aims to communicate, in a concise and Environment
accessible way, how we create shared value for you. Our focus
is on the material issues that affect you, our stakeholders, and
our ability to deliver on our purpose – Uganda is our home, we
drive her growth.
Scope and boundary

This report covers SUHL’s operations in
Uganda and the terms we use describe
the geographic regions in which we operate
across Uganda. The report focuses on the
most material aspects of our business in
relation to our strategy. We consider an issue
to be material if it is likely to impact our ability to
achieve our strategy, and to remain commercially
sustainable and socially relevant. In particular,
material issues are those that have a strong bearing on
our stakeholders’ assessments of the extent to which we
fulfil their needs over the long term. We also consider the
factors that affect the economic growth and social stability
of the communities in which we do business. The material
issues identified in 2021 have been reaffirmed as being the
most relevant to SUHL for the period ending 2021. These issues
are detailed in the reporting practices section.
The report has been developed to provide a holistic view of our

sustainability performance to a broad base of stakeholders, specifically
those with whom we have direct relationships and regularly communicate,
including our shareholders, clients, employees, government and
regulatory authorities, industry bodies and service providers

64 About this Report
Sustainability approach
Given our purpose of driving Uganda’s growth and
that our strategy focuses on sectors rated as high
ESG risk, best practice ESG risk management is
the foundation for delivering SEE impact. ESG
performance is one of our metrics for measuring
our SEE impact.
SEE ESG
We aim to maximise positive social, economic We have robust governance frameworks and controls
and environmental (SEE) impacts of our in place to manage the environmental, social and
business activities and minimise negative impact governance risks associated with our business
Our adoption of SEE as a strategic value • An expression of our values We recognise effective ESG risk management as a
driver reflects the commercial opportunity to • Informs our code of ethics competitive and strategic differentiator
grow earnings and market share by providing and conduct
products and services that meet the • Supports responsible
development needs of Africa and Africa’s people corporate citizenship ESG risk management helps us to minimise and
• Creates shared value for mitigate potential negative impacts to society and
the group and society the environment arising from our operations, who we
Our SEE commitments align with the UN do business with and what we finance
• Enables diverse stakeholders
Principles for Responsible Banking (PRB), to hold us to account
Paris Agreement, UN Sustainable
Development Goals (SDGs), South Africa Our ESG risk management is informed by regulatory
NDP, Agenda 2063, Nationally Determined requirements in our countries of operation, and voluntary
Contributions in our countries of operation frameworks such as the UN Guiding Principles on
Business and Human Rights, and global standards
governing environmental and social (E&S) risk
management including the IFC Performance Standards
and Equator Principles (EP).
EFFECTIVE GOVERNANCE AND

MAXIMISE POSITIVE IMPACT
RISK MANAGEMENT
Frameworks applied
Various benchmarks and international frameworks inform
our reporting. The issues raised by our internal and external
stakeholders in our day-to-day interactions are also considered.
We report in reference to the Global Reporting Initiatives (GRI)
guidelines supported by the G4 Financial Services Sector
Supplement.
Our ability to create value depends on our use and impact
on certain resources and relationships (capitals). We
apply the capitals model, adopted by the International
Integrated Reporting Council in the International (IR)
Framework, in managing and accessing our ability
to create value over time and our sustainability
performance. The following six capitals are
fundamental to the long-term viability of our
business: natural, social, human, intellectual,
manufactured (or manmade) and financial.
The capitals are considered in commentary
in this report.

Our Social, Economic and Environmental (SEE) Impact 65
Our Social, Economic and

Environmental (SEE) Impact
We create value by living our purpose and achieving
our vision through the diligent execution of our
strategy. Our strategic value drivers measure our
strategic progress, allowing us to focus on the value
we aspire to create for all our stakeholders.
OUR
PURPOSE Africa is our home, we drive her growth
OUR
STRATEGIC Transform Execute Drive sustainable
PRIORITIES client experience with excellence growth and value
OUR SUCCESS
MEASURES AND FINANCIAL SEE
CLIENT EMPLOYEE RISK AND OPERATIONAL
VALUE DRIVERS FOCUS ENGAGEMENT CONDUCT EXCELLENCE
OUTCOME IMPACT
OUR TARGET
OUTCOMES Growth and scale Efficiency and resilience Legitimacy
We understand shared value quite simply: In order for us to continue

as a successful and sustainable business we must measure value
beyond financial outcomes. We determined that our progress on our
strategy is measured with strategic value drivers.

66 ESG Management
ESG Management
In 2021, the business took the significant step
to establish a Sustainability Unit with the aim The key strategic frameworks have
to focus on the development of the business
Social, Economic and Environment (SEE) impact enabled the business to implement
Framework and the implementation of the ESG the necessary ESG processes that help
risk framework.
address and mitigate any potential
Effective ESG risk management plays a critical
role in this. We recognised ESG risk as one of the risks arising from our direct operations
material risks in 2021 and began a comprehensive
review of our governance systems and processes
of indirect activities with our clients.
to ensure we’re aligned with global good practice.
E&S Policy and Standard

To achieve the effective management of ESG
risk, we put the Environmental and Social risk
management policy and standard that were
approved by the Board of Directors. These key
strategic frameworks have enabled the business
to implement the necessary ESG processes that
help address and mitigate any potential risks
arising from our direct operations of indirect
activities with our clients.
Introduced the digital E&S risk

assesment tool.
We also introdcued a new ESG risk management
process by embedding a digital E&S risk Environmental
assessment tool within our credit approval
processes and business operations. The tool Lorem ipsum
provides an assesment of the level risk arising

from potential clients we finance and this
provides guidance on our approach to financing
with the aim to ensure E&S risks are minimised
as well promote more green and sustainable
businesses that we shall partner with.
How we
create value Social
The success of our customers and clients, and
the trust and support of all our stakeholders,
underpin our commercial sustainability. This
interdependence requires that we conduct our
business ethically and responsibly to create
value in the long-term interest of society. We
intermediate between providers of capital and
employers of capital, providing the former
with competitive returns on their investments,
and the latter with access to the liquidity and
capital they need to realize their objectives.
These functions of our core business can in no
way be separated from our developing social
and environmental context. We believe that a
Governance
community-minded worldview is integral to
our legitimacy and represents a consistent and
considered level of integrated thinking, which
in effect corresponds to the capitals model of
value creation.

Our Sustainability Impact 67
OUR
SUSTAINABILITY
IMPACT

68 Contribution and payments into the economy and stakeholders
Contribution and payments into

the economy and stakeholders
As the largest financial institution in the market, we continue to honour our
commitment to driving Uganda’s growth. Through our financing activities, we
support financial inclusion and promote the growth of critical sectors of the
economy in line with Government’s national development plan. Below, the
numbers highlighted demonstrated our social, economic and environment
impact in all areas that touch and influence our clients, government,
shareholders, employees and communities:
1 Value Added Statement
Value added statement % of

for year ended 31st % of wealth % of wealth wealth
December 2021 2021 created 2020 created 2019 created
Ushs ‘000 Ushs ‘000 Ushs ‘000
Value added
Interest Income 543,994,626 99% 536,233,586 105% 484,410,301 90%
Commission fee income 164,759,392 30% 157,281,369 31% 160,970,448 30%

Other revenues 240,696,978 44% 183,316,638 36% 197,196,438 37%
Interest paid to
(45,968,548) -8% (45,441,437) -9% (35,469,336) -7%
depositors
Other operating expenses
(354,086,987) -64% (320,985,403) -63% (270,886,094) -51%
& impairments
Wealth Created 549,395,461 100% 510,404,753 100% 536,221,757 100%
Distribution of wealth
Employees 178,547,838 32% 169,512,134 33% 164,999,991 31%
Government 100,195,692 18% 96,227,594 19% 109,149,008 20%
Ordinary shareholders -
40,000,000 7% 76,000,000 15% 88,000,000 16%
(Dividends)
Non Controlling Interests 10,000,000 2% 19,000,000 4% 22,000,000 4%
Corporate Social
3,507,765 -0.4% 3,914,938 1% 2,978,700 1%
Investment (CSI) spend
Retentions to support
219,312,092 40% 146,686,325 29% 149,094,058 28%
future business growth
Wealth Distributed 549,395,461 100% 510,404,753 100% 536,221,757 100%
Through our financing activities, we

support financial inclusion and promote
the growth of critical sectors of the
economy in line with Government’s
national development plan.

Contribution and payments into the economy and stakeholders continued 69
2 Loan Disbursement per Category
2021 2020 2019 2018

Ushs Ushs Ushs Ushs
Corporate and Investment Banking 1,613,128,094,465 2,041,784,969,158 1,027,545,014,699 767,628,910,828
Business banking 1,111,788,553,466 1,014,893,707,726 708,026,337,164 583,324,858,133
Personal banking 249,785,268,020 154,007,448,965 318,327,253,263 320,949,148,169
Total 2,974,701,915,951 3,210,686,125,849 2,053,898,605,126 1,671,902,917,130
3 Financial Intermediation by Sector and Focus Factions
Loan Balances per Sector 2021 2020 2019 2018

Economic Sector UShs ‘000 UShs ‘000 UShs ‘000 UShs ‘000
Agriculture, Fishing & Forestry 467,077,303 484,530,596 518,095,700 393,327,313
Mining and Quarrying 3,528 201,152 339,301 373,398
Manufacturing 434,937,299 345,510,386 403,857,150 266,660,578
Trade 482,955,167 504,355,116 486,217,126 457,707,118
Transport and Communication 301,297,043 285,968,005 199,229,277 297,265,960
Electricity and Water 125,581,718 127,378,090 110,114,662 80,255,963
Building, Mortgage, Construction and Real Estate 506,712,319 445,350,107 399,542,064 376,641,507
Business Services 81,192,158 62,197,173 41,203,844 28,025,803
Community, Social & Other Services 561,986,036 733,599,019 74,462,504 70,816,944
Personal Loans and Household Loans 962,523,742 809,109,664 722,286,154 641,549,831
Total* 3,924,266,315 3,798,199,308 2,955,347,782 2,612,624,415
4 Financial Enablement for Our Employees
2021 2020 2019 2018

No. of No.of- No.of- No.of-
Staff UShs Staff UShs Staff UShs Staff UShs
Staff Home Loans 35 8,872,554,218 9 952,005,645 61 7,829,785,410 62 8,825,493,929
Staff Personal
1025 18,806,910,954 768 10,527,719,517 1,837 18,492,746,234 1,480 16,273,176,224
Loans
Total 1060 27,679,465,172 777 11,479,725,162 1,898 26,322,531,644 1,542 25,098,670,153

70 Creating Meaningful Impact – Sustainable Economic Growth
Creating Meaningful Impact –

Sustainable Economic Growth
Overview - Economic Contribution

By delivering on our sustainability priorities, we create a
meaningful impact in our communities and stakeholders we
serve. We remain pivotal to facilitating Uganda’s economic
growth and SUHL through Stanbic Bank, lends to a wide
range of growth sectors ranging from primary growth
sectors including, Agriculture, Infrastructure, Trade, Health
Care, Education and much more.
With over 1,600 staff members, we continue to provide

employment opportunities for Ugandans. This directly
enables on our contribution to improve the standards of
living of several citizens as well as contributing to the growth
of a middle class within the country which is a key ingredient
for sustainable economic development.
Our aim is to ensure that through deepening financial

inclusion, more Ugandan’s and Ugandan businesses will have
access to financial services to meet their needs and growth
requirements. We therefore provide a wide range of financial
products and services with the aim to reach the last mile in
order to support every Ugandan.
We continue to pioneer innovation in digital financial

solutions to ease access to financial services for all our
customers. In 2021, a range of new solutions including:
FlexiPay, Banassurance, Cash Advance loans and many
more have provided the necessary support for our clients to
meet their financial needs.
We also provide several channels through which financial

services can be accessed. These include ATMs in some
of the remote areas, agent banking, several point-of-sale
terminals as well as through several digital channels and
Mobile banking.
With over 1,600 staff members, we continue to provide

employment opportunities for Ugandans. This directly
enables on our contribution to improve the standards
of living of several citizens as well as contributing to the
growth of a middle class within the country which is a key
ingredient for sustainable economic development.

Economic Transformation 71
Economic transformation
Providing affordable Financing advancing affordable financing to drive financial inclusion

through the digital banking process and build economic
The Economic Enterprise Restart Fund (EERF) which is activity sustainability that will help create employment
a private sector led Covid-19 response to provide affordable opportunities, increase consumption, and avert poverty in the
funding for key sectors and groups that were adversely rural and peri-urban areas.
impacted the Covid-19 pandemic has celebrated 1 year in
existence since its inception in November 2020. The Fund has As at end of 2021, the bank had directly impacted 1,953
partnered with several development partners to support the SACCOs/VSLAs with a total membership of 1,034,769
restart of the economy by providing both financial and non- members, digitized 31 SACCOs from the digitization grant
financial interventions to the worst hit sectors including urban and extended training to 45 SACCOs in Eastern and Western
trading, tourism, transport, and export-oriented agriculture. Uganda.
In addition, the fund has reached out to the bottom of the Stanbic Bank Uganda also continued to revitalize the
pyramid which includes medium enterprises (MSMEs), savings operations of SACCOs and VSLAs across Uganda, disbursing
and credit cooperatives (SACCOs) and village savings and over UShs 19.2bn to 128 SACCOs/VSLAs and reaching over
credit associations (VSLAs) including smallholder farmer. 50,000 members.
This intervention has seen the bank launch the SACCO value We remain committed to our mission to provide financial
proposition in Central and Eastern Uganda and are preparing services to every Uganda especially the under served groups
to cover the rest of the country to ensure grass root support in rural areas. This will go a long way in deepening financial
to the vulnerable groups. The proposition seeks to enhance inclusion across the country.
their productivity, provide both digital & technical support
in capacity building and institutional development as well as

72 Economic Transformation continued
The bank has also partnered with

various fintech companies to
digitize 15 Cooperatives at no cost.
Number
Customer name Branch Digitized by of days
Bundikakembe Growers Coop.society Ltd Bundibugyo Quest Digital
Nabhanjingiri Cocoa Farmers Co-Op Scty Bundibugyo Kanzu Code
Bundibugyo
Kilhubo Thukolerehaghuma Organic Farmers Saving And Credit Coop Kanzu Code
Simbya Farmers Sacco Bundibugyo Quest Digital
Bwamba Cooperative Union(Cocoa) Bundibugyo Quest Digital 2
Kigezi Dairy Cooperative Society Limited KabaleW Quest Digital
Kasese Ibanda Kyanya Sacco(Coffe) Kasese Ensibuuko

Kasana Sacco Kasese Quest Digital 1
Kanungu Coffee Sacco Kihihi Ensibuuko 1
Kaboneracoffee Farmers Sacco Masaka Quest Digital
Mijwala Sacco(Coffee) Masaka Quest Digital
Kalangala Kizira Oil Palm Growers Sacco Masaka Quest Digital
Karushonshomezi Bull Fattening Sacco Masaka Ensibuuko
Mubende
Kibiito Kabale Parish Banana Farmers Sacco Kanzu Code
Lugushuru Dairy Sacco Sembabule Quest Digital 1

Enhancing access to financial services
73
through digital innovation
Enhancing access to Financial inclusion supports
financial services economic and human development

and reduces inequality. Stanbic
Bank Uganda enables individuals,
through digital entrepreneurs and small enterprises to
access relevant and affordable financial
innovation products and services that will meet their

needs. We aim to ensure that the services are
delivered to clients with dignity, in a responsible,
convenient and sustainable way.
SUHL supports the Bank of Uganda Strategy on
Financial inclusion and implemented the following
innovations and interventions toward improved
financial inclusion:
Flexi-Pay Wallet
FlexiPay Uganda - Apps on Google Play
FlexiPay is a Digital wallet solution accessible to both the banked and unbanked customers,
individuals to large organizations. The solution provides access to a wide range of financial services
through feature (kapiisa), smart phones and the web for the larger organizations.
Innovations like the end-to-end self-onboarding capability both on the APP and USSD (*291#) allows
the customer to transact conveniently and securely, thus promoting Financial Inclusion. The App can
be downloaded from the Google Play Store and the APP Store for Android IOS users respectively.
Customers can deposit and withdraw money directly from/to their Stanbic Bank account, Mobile
money, and deposit cash at an Agent at no charge. More services available to customers include
transfers between FlexiPay wallets, Airtime & Data purchases, payment of goods and services for
Allied Health, bill Payments for Electricity, Water, Taxes, TV, School Fees, Tuition for Uganda Christian
University, Merchant Payments which is enhanced with a solution to purchase tickets for events. Key
to note is that all payments are FREE except Cash-out at Agent, and transfers to Mobile Money
FlexiPay Business customers can receive payments from both FlexiPay and mobile money
customers, make bill payments, make payments to FlexiPay and mobile money wallets to multiple
recipients at once. This has contributed to household incomes, extension of cashless services
to customers achieving wider coverage and financial inclusion. To further accelerate Financial
inclusions for Business customers, focus has been geared towards developing the capability to
onboard unbanked Business customers. These will be able to utilize a wide range of services that
FlexiPay offers.
FlexiPay customers also get rewarded when they refer others to onboard on FlexiPay. The points
earned can be utilized for bills, merchant payments, Data & Airtime purchases.
The FlexiPay APP is enhanced with the capability to digitally locate the nearest Stanbic Agents,
Branches and ATMs thus increasing convenience for the customers.
FlexiPay has multiple channels through which customers can rely feedback and insights. These
include a 24/7 toll free helpline, an interactive Chat, Email as well as submitting feedback via USSD
(*291#) and the APP.
Contactless card
Contactless Payment FAQs | HallmarkThe card solutions are designed to increase convenience
for our customers as they go about banking as a lifestyle. With emphasis of creating ease and
guarantee of access to service in a secure manner, the bank working with our partners spread
the contactless transaction trend through the issuance of contactless cards and contactless
POS. Contactless transacting allows customers to simply initiate a payment by taping their
Stanbic VISA card onto a POS device.
Having equipped our customers with contactless cards from September 2020 and distribution
of our new POS devices through 2021, the bank did drive awareness and reward for our
customers transacting visa “Tap and Go”.
The impact was positive, and we have seen a surge in Card transactions spinning into 2022 and
still going.

74 Enhancing access to financial services through digital innovations (continued)
Agent Banking Services:
At the end of 2021, the Stanbic Agent banking network had grown to over 4,800 outlets
strategically located in the urban, peri urban and rural areas to provide banking services to the
banked, under banked as well as the unbanked. This has given customers the much-needed
convenience as the bank is within their areas of operation and also accelerated financial
inclusion in rural areas catering for the unbanked and under banked.
In the year 2021, we have been deliberate to add capability to the platform for customers to
enjoy full banking services. The full scope of services includes cash in and cash out services, tax
payments, bill payments, school fees, Flexipay wallet top up and cash out, mobile money float
purchase and liquidation among others. Looking at where we are today compared to the year
2018 when Agent banking was rolled out, there is over 400% growth in customer transactional
signifying the strategic importance of this channel to the bank. This growth has translated into
over 40% of the total banks transactional activity migrate to this channel.
Looking into the future, we are committed to enhancing this channel with capability that
resolves what matters to the customer. A lot of work has been done to serve the youth, women
in business, savings and credit co-operatives, persons of interest in refugee camps among the
areas of focus.
Leveraging Technology to Improve customer experience

Leveraging Technology to Improve customer experience
The advancement of technology has brought about rapid changes in the way businesses and
operations are being conducted in the financial industry. The delivery of exceptional digital client
experience and driving the desired outcomes has never been more critical.
Some of the highlights on how we have leveraged digital technology and human insights to support
customer experience include:
• Refreshed the Vehicle and Asset Financing solution to a more robust customer centric version
that has greatly reduced the turnaround time due to:
- 3600-customer information view.
- Automated processing of payments.
- Simplified reconciliation of transactions.
• Improved customer interactions with the bank through activating Salesforce (Customer
Engagement tool) that offers a 360-degree customer view enabling more personalized and
meaningful engagements and experience.
• Borderless banking: Enabled more customers in East Africa (Tanzania and South Sudan) benefit
from the regional trade opportunities through activating intra and inter account operations in real
time regardless of their domicile country. Capabilities include:
- Cash deposit and cash withdraw from any of the countries.
- Inter-account transfer between the countries.
• Adoption of Cloud services: Commenced on a journey of leveraging the elasticity and flexibility
that Cloud Computing presents to improve the customer experience across our bank digital
products.
• WhatsApp Chat Bot: Enhanced customer engagement capabilities by introducing a new,

automated, and convenient bank customer self-service channel through WhatsApp.
• Direct Integration: Improved reliability and availability of services to transfer funds from the bank
to Mobile money and vice versa including making bill payments through integrating services
directly with the respective service providers.
• Flexipay: Enabled an electronic wallet that enables under-banked, unbanked, multi-banked

customers to access basic financial services on both feature (USSD) and smart phones (App)
and transact at Agents, Merchants and ATMs with benefits below:
- No requirement of bank account. The solution is bank agonist registering users on a mobile
network operator.
- Affordable financial service – Free funds transfer services within the Stanbic ecosystem,
cheaper charges on bill payments and Fund Transfers from Mobile Network Operators.
- Digitisation of services through online/self-registration, customer validation checks,
Enhanced Due Diligence, Merchant onboarding process through the Field Agent App

Enhancing access to financial services through digital innovations (continued) 75
Cyber Security
The advancement of technology

Cyber Security
has brought about rapid
As technology is both the source of future
opportunities and potential disruption, the need for changes in the way businesses
adequate and effective cyber security controls is
imperative. To this end, the capabilities below were
and operations are being
implemented as we strive to be both secure by design conducted in the financial
and cyber resilient.
• Successfully carried out a refreshed review of

industry. The delivery
our Privileged Access Management across our of exceptional digital
critical banking systems to mitigate risk from
unauthorised access. client experience and
• Enhanced protection for mobile banking driving the desired
customers using MTN against fraud through
enabling capability to detect swapped SIM card
outcomes has never
attempts on Mobile Banking (USSD) within been more critical.
72 hours of the SIM being swapped. Work is
in progress to activate the capability for Airtel
customers.
• Finalized execution on the Third-party Cyber

Risk Management Framework aimed at ensuring
that our Third-Party partners / vendors have
the appropriate controls in place to protect our
customers from any cyber-attacks.
• Acquired certification against the ISO 27001:2013

Information Security Management Standard ISMS
ensuring compliance and business resilience for
the bank thereby safeguarding our customers.

76 SME Capacity
Financial Statements
Development
for the year ended 31 December 2021
SME Capacity Development

The Stanbic Business Incubator
Established on 04th February 2018, Stanbic to subject matter experts, mentoring and
Business Incubator Limited (SBIL), a coaching of entrepreneurs and provides
subsidiary of Stanbic Uganda Holdings avenues for accessing both markets and
Limited (SUHL), is Uganda’s leading partner funds.
in enterprise development.
SBIL partners with other like-minded
Typical business incubators offer business companies to be able to deliver on its
trainings and crown the same with mandate. All our partners including SBU, 667 MSMEs
certificate-awarding ceremonies. However, GIZ, NSSF, UNDP,e continued to work with
SBIL mentors and facilitates MSMEs from a us even during the COVID 19 pandemic, and over 2,000
point of mere existence until they become which indicates their confidence in the
thriving and sustainable enterprises. company. We are happy to mention that the
Individuals were
SBIL’s work is anchored on three core
French Embassy also became one of SBIL reached in 2021
partners in 2021.
pillars: access to market, access to finance, 2020: 516 companies and
and business operational skilling. 667 MSMEs and over 2,000 Individuals 617 Individuals
were reached in 2021 compared to 516
The programme is largely structured to
companies and 617 Individuals in 2020.
provide business development training
Utilisation for all 4 centres across the
programmes and follow-up on support
country under 8 different programmes i.e
interventions, a learning environment
Kampala EDP, Regional EDP, SACCOs, Youth
through workshops and panel group
for Business(Y4B), NISAT, Albertine, and
discussions, networking events and access
Hi-innovator.
Impact survey done Dec 2021
60% construction and 15% SMEs

fabrication, 16% Agriculture,
27% of the unbanked accessing credit facilities
SMEs have opened from Stanbic Bank, 80%
11% in ICT, 7% transport accounts with Stanbic. expressed interest.
and logistics, 16% others.
9% increase 35% Improved Tax

Joint ventures had the in Sales with a 5%
highest impact among SMEs. compliance among
Revenue growth
SMEs.
(New bids winning).
33% of staff are

51% growth in staff youth (aged between
46% of companies had
expanded into markets
18-24)

SME Capacity Development (continued) 77
Business Incubator - Realised Impact 2021
1 Programme Perfomance 2021
Program
NO name Description Y3 Target 2020 Actual 2021 Actual
Capacity development for 150 SMEs

1 Kampala business growth (3/4 months) trained per 371 individuals 328 enrolled, 231 SMEs
EDP (GIZ & training program, followed by intake trained completed
SBU) Mentorship and coaching 300 SMEs per 186 Companies
year
Support extends to Micro

2 Regional SMEs in our regional locations 400 MSMEs 166 SMEs 562 recruited, 433
EDP (GIZ) focusing on 246 Individuals completed
entry level business
development and skilling
Support farmer groups 46 farmer Program commenced

3 Albertine towards standardized 200 Farmers groups were in October 2021 – 45
EDP production and supply for the trained and farmers trained so far
(SBU) Oil and Gas sector followed up post & runs into 2022
and off takers for the local 2019
market
Grantees from this program Conducted

4 Youth4 are taken through the EDP 35 Grantees (1st mobilization and 10 successfully
Biz -UNDP capacity building cohort) reached 1,000 completed training
applicants
2 New Programs 2021
NO Program name Description Y3 Target Actual
Build a network of Agroecology and Recruited 120

5 NISAT –Embassy of Ecotourism internationally through 100 SMES On course in
France in Uganda exposing SMEs to other markets and progress into 2022
sectors
402 SMEs
6 Hi innovator Program Capacity building offered to beneficiaries 100 SMEs recruited, 46
(NSSF & Outbox) of the program as one of the trained, 7
implementing hubs completed, 6
awarded grants
Capacity building aimed at digitizing

7 SACCO-EERF (SBU) SACCOs operations with an element of 50 SACCOS 26 trained & to run
financial training support and into 2022
formalization.
Expert led online sessions provided to

8 Alumni Master classes participants of alumni programs and the 3 classes to reach 9 Classes, reaching
general public to prepare them for 300 1107
application into work streams. SMEs

78 SME Capacity Development (continued)
Typical business incubators

offer business trainings
and crown the same with Supporting Uganda’s growth
certificate-awarding
ceremonies. However,
SBIL mentors and
626 companies
facilitates MSMEs graduate
from a point of mere 1967 SMEs trained 2020-21 Purpose
To develop strong and resellient SMEs and
existence until they business leaders through custom tailored
become thriving programs for business growth
and sustainable
121 companies Focus Sectors
enterprises. graduate
420 people 2019 Oil and Gas
trained
Agriculture
Construction & fabrication
34 companies Transport and logistics

Logistics
graduate
94 people trained 2018 Others
Programs
Rebranded the Enterprise Development Trainings
to customise for several entrepreneurial stages to
Business Incubator include micro EDP, Stanbic accelerator Program
launched & Supplier development Program
40 companies 2017 2022 Focus
boarded
Investor ready business, Access to finance &
markets and sustainability
Concept approved for
implemantation Partners
Location identified
and renovations
2016 GIZ, French Embassy, UNDF, NSSF, SBU, Key
training partner for PAU and Oil & Gas entities
begin

SME Capacity Development (continued) 79
WESLEY MUSINGA,
Head of Operations, GCC “My biggest benefit (from the EDP) was
business to business interaction, which
helped us know our competitors, who we
can do Joint Ventures with, and how other
people run their businesses. Another thing
you take for granted is that there are many
companies in Uganda, which do each and
everything. We met them at the Incubator.
We did not know that they existed.”
PRIMA K. SHIMBA,
Founder, Harvest Hills Ltd
“With the help of the knowledge got from

the Incubator training, I can testify and let
you know that I should be able to get my
business to greater heights because it’s
easier to manage and it’s growing every
single month.”
DIANA NAKIWALA,
Co-founder, TAN ENERGY
“I remember when we had just started our
company, after a few months, it was all
gone. With the knowledge we attained from
the incubator training where we learned
business planning, bid management,
corporate governance and many more, we
practically used this knowledge, and our
business is now running smoothly.”
NICK MUGIRA,
Managing Director,
Inspecta Africa “By the time I joined the Stanbic Business
Incubator, our company had been reduced
to just me. But after three months at the
Incubator, Inspecta Africa life changed and
became a different story. Today we are in
Zambia, we are in Tanzania. We are working
with Sogea Satom in Mwanza building a water
plant. We were recently in Mozambique. In
Uganda we are in Buliisa, all the equipment
in oil and gas in Buliisa we have got to certify
it. We do inspections for CNOOC, Mota Engil,
Sogea Satom. Anyone who matters in oil and
gas, we do the inspections.”

80 Economic thought leadership interventions
Economic thought
leadership interventions
Economic Restart Fund Launch

Stanbic Bank Uganda hosted the inaugural “Uganda Economic Restart Breakfast
Meeting” under the theme ‘working together to drive Uganda’s Post-Pandemic
Economic Recovery.’ Similar meetings would later be held with the aim of
promoting regular engagement between the bank and government, to foster
and strengthen strategic B2G partnership to drive Uganda’s development.
The meeting was hosted by Anne Juuko, the Stanbic Bank Chief Executive, alongside other
Executive Members and Managers from Stanbic Uganda Holdings Limited. This particular
meeting discussed ways in which the bank and government would work together to drive
Uganda’s post-pandemic economic recovery.
The Bank of Uganda Director in Charge of Banks Supervision Tumubweine Twinemanzi

applauded Stanbic for the initiative and urged players to implement the credit
relief measures that the central bank had issued, key among them being loan
restructuring. He also said, the central bank had allowed the market to have
several players to enable borrowers choose a partner of their choice. The former
Government Chief Whip and current Deputy Speaker of Parliament Hon. Thomas
Tayebwa was the Chief Guest. He commended Stanbic for not only thinking of
making money through loan facilities but also for thinking beyond to start a
youth advisory board and supporting communities through its corporate
social responsibility function.
Seeds of Gold – supporting the

agriculture sector through farm clinics
Agriculture is the backbone of Uganda’s other stakeholders to share knowhow climate smart agriculture (CSA).
economy, employing over 70% of and practical methods towards The Seeds of Gold clinics offer an
the population, and contributing half improving Uganda’s agricultural opportunity for Stanbic Bank to
of Uganda’s export earnings and a productivity. show how it can help to bridge the
quarter of the country’s gross domestic information gap on financing while also
The theme for this year is ‘Climate
product. A vibrant agricultural sector unveiling other related products in line
smart farming’. It is a continuation
is what Uganda’s economy needs to with farmers’ current needs. Due to
of the big idea of solving farmer
thrive especially in the exigencies of the the Covid-19 pandemic, a mix of virtual
constraints by addressing the
Covid-19 pandemic. and non-virtual clinics were held in
challenges of the adverse effects
Mukono, Arua, Fort Portal, Namulonge
The annual Seeds of Gold farm clinics of climate change. Engagements
(in Kampala) and Mayuge. This was the
organized by the Nation Media Group, with farmers on such platforms as
third time Stanbic Bank was partnering
have become a popular event for farm clinics, is also in line with the
with NMG for this annual event.
farmers, suppliers, policy makers and government’s objective to encourage
Due to the Covid-19

pandemic, a mix of
virtual and non-virtual
clinics were held in
Mukono, Arua, Fort
Portal, Namulonge (in
Kampala) and Mayuge.

Economic thought leadership interventions (continued) 81
Stanbic Bank Launches Partnership

with Ministry of Health
In line with its commitment to support Ugandans

who have been most adversely affected by the
Covid-19 pandemic, Stanbic Bank launched a
partnership with the Ministry of Health in which
customized financial services products would benefit
all government health workers across the country.
This event was held in October at the Ministry of
Health Headquarters and was graced by the Permanent
Secretary Diana Atwine alongside other senior members
of her ministry. The other officials were, Stanbic Bank CE,
Anne Juuko, Stanbic staff and representatives of professional
bodies.
The partnership sought to offer a range of low interest loans to
government health workers across the country. The loans range
from personal unsecured salary loans to secured loans, mortgages,
vehicle and asset financing loans (VAF). Under this arrangement,
government health workers are entitled to open an everyday banking
account which attracts no monthly charges. However, workers with
existing and different accounts in the bank would have the option to
change their accounts to the everyday banking account at no cost. The bank
would charge zero/ no arrangement/processing fees for all health workers
seeking to top up or take new loans with Stanbic Bank. The interest rate was
announced as the bank’s prime lending minus 0.5% or 15.5% p.a. on reducing
balance. Under the same partnership, the bank would offer a range of insurance
products to the beneficiaries.
Compassionate leadership
series unveiled
In a bid to drive the country’s demonstration of corporate help share their experiences on
economic restart from the ruins leadership by Stanbic Bank. how they have effectively led
of the Covid-19 pandemic, Stanbic Panelists included Emma Mugisha, their organizations and provided
Bank launched Compassionate the Executive Director at Stanbic practical tools in overcoming the
Leadership Series under the theme, Bank Uganda, Peter Kimbowa, the challenges brought by the Covid-19
‘Leading with A Heart – Adapting to Chairman Board for National Social pandemic. The pandemic had
a new normal in a tough business Security Fund, Thadeus Nagenda, opened a window for the bank to
environment’, the virtual engagement the Acting Chairman for Kampala experiment with innovations that
was held in Kampala and attended City Traders Association and Isaac enabled it to be more agile as the
by over 100 participants from a Nsereko, the Managing Director for business environment changed.
cross-section of Uganda’s private RI Distributors. In line with the theme, the bank
sector. The panel was moderated had restructured loans worth
The compassionate series
by Maurice Mugisha, the Deputy over UShs900billion, benefitting
would consist of three webinars
Managing Director of UBC who in hundreds of economically distressed
featuring business leaders and
his introductory remarks noted customers in various sectors of the
technical persons that would
that the initiative was an important economy.

82 Economic thought leadership interventions (continued)
Stanbic Bank launches partnership

with KACITA
Stanbic Bank Uganda Limited and Kampala

City Traders Association (KACITA), went into a
partnership that would significantly ease traders’
ability to source for goods from Asian markets as well The partnership
as pay the stipulated taxes on the imported items. would see Stanbic
This partnership aimed to improve compliance and help transform Uganda’s small Bank provide tax
and medium enterprises (SMEs). It was launched in line with the bank’s purpose
‘Uganda is our home; we drive her growth’ and bearing in mind that SMEs are the loans to qualifying
heartbeat of the country employing over 2.5million Ugandans. The launch came customers in line with
at a time the SMEs, like any other business had been hit hard by the pandemic.
In addition, the partnership would provide some relief to traders as a result of
its lending criteria. The
disruptions in the global supply routes and their ability to source for goods. already existing bank
Under the partnership, Stanbic Bank agreed to facilitate importation of goods customers that would
from China and other Asian countries through its Subula Express proposition. be recommended
On top of that, the bank would create special trade accounts at various branches
to cater for the traders’ requirements and at lower transaction charges. The
by KACITA would
bank also agreed to scale-up lending to bankable enterprises which previously qualify for unsecured
was not possible since they did not meet certain internal lending thresholds. loans not exceeding
Most importantly, the partnership would see Stanbic Bank provide tax loans to
qualifying customers in line with its lending criteria. The already existing bank UShs200million.
customers that would be recommended by KACITA would qualify for unsecured
loans not exceeding UShs200million. On its part, KACITA would ensure free flow
of information between itself, the bank, and the Uganda Revenue Authority to give
effect to the intended project.
Under the partnership,

Stanbic Bank agreed to
facilitate importation of goods
from China and other Asian
countries through its Subula
Express proposition.

Building a Responsible Business 83
BUILDING
A RESPONSIBLE
BUSINESS

84 Building a responsible Business
Building a responsible
Business
Stakeholder Engagement
OUR STAKEHOLDERS
Service providers Government
STANBIC
Regulators, Industry UGANDA
bodies, associaitons Employers
Customers Shareholders
How we engage with Stakeholders

Our relationships with all our stakeholders impact directly
and indirectly on our business activities and reputation. We
proactively engage with stakeholders to inform our business
strategy and operations, shape our products and services,
manage and respond to social expectations, minimise
reputational risk and influence the environment in which we do
business. The ways in which we engage with our stakeholders,
and the frequency with which we do so, vary according to each
stakeholder group as shown below.

2021 Awards 85
2021 Awards
- Accolades
from our
Stakeholders
In 2021, Stanbic Uganda
continued to be recognised
in various areas of excellence
2021 Accolades
by our stakeholders. 1. Bronze for Integrated Report of
The organisation was the year award
commended for its 2. Winner, Commercial Banks
Category
contribution to society,
3. Winner, Best Listed Entity
economy, environment 4. Winner, Sustainability Reporting
and good governance. The Award
summary below highlights 5. Winner, Corporate Governance
Award
the notable accolades
6. Most trusted banking Brand-
received: Uganda
7. Best Banking Brand- Uganda
8. Leadership Award- Best Woman
CEO – Banking sector (Stanbic
Bank Uganda) – Ms Anne Juuko
Global Brands Magazine (GBM) is one of the leading brand

publications and each year, they develop a series of awards for
companies that have stood out, among them industry leaders,
demonstrating exceptional service and unique vision. The
Banking & Leadership Awards were the 9th Edition of Awards at
GBM in 2021, established to honour excellence in performance
across industries, and Stanbic Bank Uganda emerged the winner
of three awards.
STANBIC
STANBIC UGANDA
UGANDA HOLDINGS
HOLDINGS LIMITED
LIMITED
Annual
Annual report
report andand financial
financial statements
statements year
year ended
ended 31 31 December
December 2021
2021
86 Procurement Practices
Procurement Practices
The Bank continued to apply practices
aligned to the principles of transparency,
integrity and equality on a consistent
basis across all its Procurement activities
throughout 2021.
Extending opportunities to local suppliers remained a key focus.
RFx processes are structured in a manner that draws as many local
suppliers as possible to participate in available Procurement &
Supply opportunities. This is aligned to the Government’s policy on
promotion of local content through the Buy Uganda Build Uganda
(BUBU) initiative. As a result, we continue to drive and maintain a high
percentage of Procurement spend allocation to local suppliers (81%
for 2021) as demonstrated by the Bank’s third party/external supplier
spend trends (between local & foreign suppliers) over the past three-
year period (2019 to 2021).
2021 2020 2019

UShs (millions) UShs (millions) UShs (millions)
Total Procurement Spend 144 937 180 968 178 224
Amount Spent on Local Suppliers 117 750 156 842 154 452
Amount Spent on Foreign Suppliers 27 187 24 125 23 772
%age Spent on Local Suppliers 81% 87% 87%
Sustainable Procurement minimize the impact of credit on their operations

and support continuity.
The Bank’s Procurement policy supports initiation
and development of supply relationships with These approaches have enhanced the delivery of
partners that observe the principles of ethical mutually beneficial and sustainable commercial
procurement such as; workforce diversity, advantage from the Bank’s external supplier
human rights, equal opportunities and practices relationships.
that protect the environment, among other
sustainable procurement practices. Our vendor Supplier Development
selection and award processes are structured to
Over the years, the Bank has progressively
establish supplier compliance to these standards/
nurtured partnerships with its service providers
expectations at onboarding. For its long-term
through focus on application of various initiatives
partnerships, the Bank continues to monitor
including; extension of Financial support to SME
Our SEE shared value…. Supplier commitment to these ethical standards
Suppliers to aid the satisfactory performance of
throughout the relationship lifecycle through
EDWARD CHARLES their contractual obligations, supporting supplier
related contract clauses and ongoing compliance
MUTEBI, Head, risk management initiatives through focussed
monitoring.
Procurement: Supplier Control Assurance activities related to
Specifically, in support of environmental Business Continuity Management, Information
To me, SEE represents protection, the Bank has deployed technologies Security, Occupational Health & Safety, among
the need to uphold the (COUPA P2P & Adobe sign) that facilitate end to others for strategic suppliers.
practice of nurturing end digital Procurement engagements (Proposal
In addition to consistent dissemination of project
the competencies Submission, PO Dispatch, Contract Execution,
performance feedback, the Bank has embraced
needed to drive socially Invoicing, etc) with its supply partners, thereby
deliberate and continuous application of supplier
eliminating the need for paper/printing and
and environmentally performance improvement strategies through
guarding against the would be impact on the
responsible Procurement, focussing and jointly working towards remedying
environment.
thereby contributing to project performance failures, thus enhancing
the consistent application These technologies have also reduced the supplier capabilities.
of structured & risk aware supplier cost to bid and enhanced the RFx
Similar to prior years, the Bank organized and
practices throughout all the process audit trail & transparency, which in turn
conducted a supplier forum/event in October
boosts confidence in the Bank’s Procurement
stages of the procurement 2021 that focussed on enhancing understanding
activities. The COUPA P2P platform was also a
process, to deliver of the Role of Digital Transformation in
key contributor towards driving continuous RFx
sustainable growth and Procurement & Supply Chain.
participation and sustained fair competition
commercial advantage for among the Bank’s suppliers during the Covid-19 All these initiatives are critical for sustainable
both the Bank and its supply induced lockdown periods. business growth and equip the Bank’s
partners. supply partners with the resources, skills and
Additionally, the Bank endeavours and commits to
competencies required to drive sustainable
settlement of undisputed supplier invoices within
organizational growth.
10 business days to enable its supply partners

Compliance framework and practices 87
Compliance framework
and practices
SUHL’s compliance framework is guided developments and potential compliance times brought about by the pandemic.
by a motto “Do the right business, the gaps within SUHL as well as making use The bank remained complaint with all its
right way”, a principal which is intended of data analytics, machine learning and regulatory obligations as well as fulfilling
to drive the right compliance culture in artificial intelligence. These are initiatives its planned compliance activities in the
SUHL and across all its subsidiaries. To to proactively manage compliance risk. years.
drive good compliance practices across Additionally, the regulatory universe is
SUHL, the Board and Management have often amended to monitor imminent In order to safeguard the economy
embedded a Compliance framework that compliance trends and obligations. This and continuously monitor any adverse
ensures that we, operate in accordance is to proverbially stay ahead of the curve. effects that came with the measures put
with applicable laws and regulations, This has proven especially relevant in place to combat the pandemic, Bank
create a culture of honesty and integrity, for SUHL as it grows and continues to of Uganda continued to issue operational
build employee trust, confidence and diversify its portfolio. directives throughout the course of the
promote a culture of high ethical and year which, the bank fully complied with.
professional standards. The Executive At Stanbic, we appreciate the vital role Management actively tracked adherence
Board is firmly committed to “zero that our regulators play in the way we to the directives with regular updates
tolerance” to non-compliance. do business especially as we transition to the Board. With Covid-19 restrictions
into a platform business. It is thus vital still prevalent during the year, SUHL
As a line of defence, the Compliance that we work closely with our regulators continued to adopt a dynamic and agile
function has taken strides to ensure to keep them abreast of our business approach that allowed us to serve our
that SUHL not only meets its reporting strategy and most especially get their customers conveniently while remaining
obligations but does so timely which has support. complaint.
been through harnessing the power of
digital transformation to track various In the second half of 2021, SUHL saw the
2021 through the Compliance lens easing of the Covid-19 restrictions and
reporting obligations.
The year 2021 saw SUHL consolidate its opening up of the economy. The focus
Annually, Compliance risk assessments strategic initiatives following the onset from a compliance perspective remained
are performed, Key Risk Indicators are of the Covid-19 pandemic in 2020. The on managing our conduct risk as well as
re-defined, and the respective units’ focus remained on ensuring regulatory exploiting the use of data analytics to
regulatory universes are refreshed compliance particularly for Stanbic improve and digitize our compliance risk
to ensure close monitoring of any Bank even during the unprecedented monitoring capability.
REGULATORY DEVELOPMENTS
The key developments in 2021 were the enactment of the Data Protection and
Privacy regulations and National Payments Systems Regulations that enforced the
Data Protection and Privacy Act, 2019 and National Payment Systems Act, 2020
respectively. The data privacy regulations provide a framework and standard for
the managing and upholding the rights of data subjects while the National Payments
Systems Regulations and Act regulate the efficient and safe use of payment systems.
2021 In 2022, the regulatory focus will look at developments around capital requirements for
Compliance Supervised Financial Institutions as well as compliance with the new regulations introduced
in 2021. As the bank drives its aspiration to become a platform business and explore cloud
highlights migration opportunities, the journey and engagements with our various regulators will be very
key in 2022.
ANTI-MONEY LAUNDERING
SUHL largely operates within the financial services sector, as such, Money Laundering is one of the
major risks it faces. Cognisant of the risk posed, SUHL has, across the entire group, implemented a
robust AML/CFT framework to ensure adequate knowledge of the parties that we enter relationships
with. The money laundering trends and typologies observed in 2021 remained consistent with those we
witnessed in 2020 with the changing face of financial crime brought on by the pandemic. To remain astute
to the risk, besides the surveillance system in place, the Bank has, premised on the trends observed, stepped
up its training and awareness for its staff to help them understand the emerging threats and risks the bank is
faced with to be able to curb money laundering and terrorist financing. In 2021, Compliance also leveraged on
the use of data analytics to further enhance its AML surveillance and adjust to the continually changing trends in
financial crime.w
In order to safeguard the economy and continuously monitor any adverse

effects that came with the measures put in place to combat the pandemic,
Bank of Uganda continued to issue operational directives throughout the
course of the year which, the bank fully complied with.

88 People and culture
People and
Culture
David Mutaka
Head, People and Culture
Whereas we thought 2021 would be the year we survived

Covid, it proved to be more challenging than we could have
ever imagined. I thank my colleagues and customers who
showed even greater resilience just when you thought you
could put the foot off the pedal.
Whereas we thought 2021 would technology and shape is led by one of something we lived. Whereas we
be the year we survived Covid, it our very own a testament that staff provide insurance for our staff and their
proved to be more challenging than were upskilling and reskilling to meet families we had to find creative ways
we could have ever imagined. I thank the challenges of the future. to help them support their broader
my colleagues and customers who families, where majority are primary
showed even greater resilience just Resilience required that we relook bread winners.
when you thought you could put the how we do things, and our culture was
foot off the pedal. In the year we lost tested in terms of the risk environment A structured approach to Coordinating
three of our colleagues, Ruth, Henry we were in and how we needed the testing, tracking, counselling,
and Doreen, with Henry succumbing to respond through even stricter monitoring of our cases that more
to covid. They are missed and we disciplines and conduct. Ethics are than tripled at the height of the second
continue to celebrate and honor more pronounced in our business, wave to over 300 COVID19 cases in
them and their families, the loss inclusiveness, accountability were collaboration with the government
brought us together and showed the words that gained prominence in the Ministry of Health officials ensured
strength of the human spirit, year as we serve our customers. limited inconvenience to staff. The
team arranged for emotional impact
our values and our LOVE culture, Continuing to learn, unlearn and sessions, social and financial support
being human first. relearn was the spirit of agility. This for teams through prevention,
Uganda being our home we were not was enabled by our firm belief in our diagnosis and management of covid.
insulated from the pain our country purpose of Uganda is our home we Who can forget recommendations of
experienced as the pandemic’s dive her growth, a growth that is both Christmas trees and all sorts of herbal
second wave ravaged through. sustainable and inclusive. concoctions to treat the disease?
We honour the communities and Ensuring that facts and expert help
families that support us as we try to was readily available throughout was
make a difference. Employee Wellbeing – and critical. This was while continuing to
in the wake of COVID 19 I serve our customers. The death of
In 2021, the bank began the year am certain there are some Henry Kamuntu in the middle of all
reshaping to what we called our this was a huge blow for us. We pray
critical updates here
Future Ready, client first journey. that God continues to Rest his soul
This was done without any loss of 2021, the country engagement score in eternal peace. He was a true brand
jobs and indeed 650 people found hit a staggering +71 over a set target ambassador looking forward to getting
new opportunities to be the best of +65. Care for our staff went beyond the Oil & gas journey jumpstarted with
version of themselves. We were them and their families to extended the signing of the FID.
proud to get momentum on some families, household helpers among
key initiatives like the Flexipay Wallet others. Leave no one behind was
which even though being a new

People and culture (continued) 89
Investing in our Employees (Highlights)

Women and Diversity
Update 2021 2020 2019 2018
Our flagship Women Total Employees 1,762 1,612 1,664 1,665

development program – Ignite Staff Costs (UShs millions) 149,000 169,512 164,999 148,609
continues to flourish, and in Female Employees 928 839 865 857
2021 we expanded our efforts Interns 20 15 72 47
to create holistic interventions
for all staff and introduced the Employee Turn Over 6.4% 4.2% 8.8% 9.6%
barbershop for men. This was No of Temporary Staff 215 80 125 112
aimed at promoting positive Revenue Per Staff(UShs millions) 514.5 521.6 484.1 398.2
masculinity that inherently
respects and promotes women Cost Per Staff(UShs millions) 274.4 250.1 237.1 206.4
and humanity. Our Gender Males trained 571 761 561 805
statistics continue to improve
Females trained 927 777 589 851
year on year.
Total no of staff trained 1,759 1,480 1,150 1,656
The bank had a total Headcount Training Spend (UShs millions) 1,703 1,733 4,476 3,581
of 1762 staff in 2021, of which
majority are female (52.2%)
compared to 52% 2020. Female
employees also held 220 of
the Managerial roles in 2021,
Diversity Figures
up from 169 in 2020. The bank
provides equal opportunities to
all Ugandans and hre is based
on merit.
52.2% 33.3%
Women in Women in
leadership Executive level
Productivity Analysis
H3 Workforce Productivity Metrics

We recognise that diversity
and inclusion are the
ingredients for innovation and
being a human organisation
that is representative of the Total Operating Revenue -
communities that support us. (Total Operating Expenses - Total cost of Workforce)
Total Cost of Workforce
Entity Workforce ROI Cost to Income Staff Cost % of

Ratio Operating Expenses
2019 2020 2021 2019 2020 2021 2019 2020 2021
SBG 2.39 2.32 2.31 56% 58% 58% 55% 54% 56%
AR 2.91 3.0 2.95 52% 51% 53% 49% 48% 46%
3.49 3.54 3.47 49% 48% 51% 42% 42% 38%

90 Employee engagement
Employee Engagement
Finding Pockets of opportunity
for Productivity
Employee Net Promoter Score
(eNPS) 72+ ARE YOU A FAN? Significant improvement in
Innovation and Empowerment dimension Scores
eNPS Trend 72
Engagement Dimensions 92% Organisational Alignment
Employee survey events eNPS Trend Trend 98%
72 61 % favorbale % favorbale
92% 89% 96% 96%

44
96%
35 86% 96%
86%
27 85% 86%
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Learning and Development

Creating a learning Culture that can Sustain Continuous Transformation.
2021 Learning Trends

The year 2021 presented a rise in the Embracing Digital Learning DRIVE TO WIN…JOURNEY TO A
utilization of the e-Learning platforms With the pandemic, there was a need FUTURE FIT WORKFORCE
with exposure to a wider range of to shift how we think about learning Drive to win is our mindset and skillset
curated content for the learners. with an accelerated focus on having shift tool to a future ready workforce.
Preferences of our learners moved a future ready, agile and resilient Over 680 staff are on the Drive to Win
from classroom to self-directed workforce. programme. The journey is towards
learning, especially micro learning to creating an empowered workforce in
meet their needs. (popular sources, a digital world focused on impact and
You tube videos, podcasts, TED talks solving problems for the customer.
etc.)

Employee engagement (continued) 91
Outcome
ness on authentic masculinity. We have Meaningful Conversations
identified specific topics to focus on Meaningful Conversations training.
Performance Improvement reflects based on what we are solving for. 352 This is aimed at equipping line
in the Enterprise~ meeting Targets men signed up for Barbershop. The managers with the skills needed to
More focus on Learning sessions are happening in two-fold; have the right conversations with
Opportunity growth Webinars for the full team and smaller their team. With the view that human
circles with the mentors, providing interaction is a core business process.
safe spaces to regenerate, share Alignment and managing aspiration is
Application of Learning:
reflections and how they are applying a continuous activity.
Practice Labs their learning.
In getting future ready, one of the key
Barbershop; 2 cohorts in. The
focus areas was teams getting into The Book Club second cohort is being run by the
the practice labs as the members are
We have the Book Club that is aimed men in the Bank. They were trained
looking to explore what they can do in
at developing capability by challenging on how to facilitate the sessions. The
the business to immerse themselves.
our thinking. We recognise that goal is to create a community and have
280 active learners and 15 active Labs
learning takes on different forms men carry their lessons forward. This
so the Book club creates space for approach improves engagement and
Partnerships: Girls for Girls, Digital
employees to deliberate on the books reduces on the delivery costs.
Lending, SACCO, Salesforce, Women
they have read, ideas they got and
CVP, Flexi pay, Fly HUB, CSI, Client
how this can be applied in the work The goal is to have every man g
Solutions, Properties and Learning
environment. The books selected through the program. 25 leaders have
& Development. Hence 93% of the
have a future ready theme to help been through the program so far. The
population participated in Are You A
with the mindset shift required for the goal is to have all leaders complete the
Fun survey agree that there is growth
new world. The books reviewed were training this year.
opportunities
"Future now by John Sanei and The
Amazon Management System by Ram Leadership Circles and speaker
Leveraging Diversity to improve Charan, The Black Swan by Nasim series are active. All the leaders
Business effectiveness Nicholas Taleb and currently Switch - were assigned circles and identified
As part of our culture journey, we how to change things when change is moderators upskilled and given
focused on signature diversity hard by Chip Heath & Dan Heath. the tools needed to guide the
leadership programs i.e. Ignite & conversations within the circles. The
Barbershop. We have had 109 employees attend circles are a safe space for leaders to
at least one session. As a result, pause, share best practices, speak
Ignite is a women’s program these eager beavers are now part about challenges and help each other
focusing on elevating women in of the strategic multi-disciplinary to show up as their best selves.
leadership, challenging limitations workstreams as a way of applying the
and empowering women to fulfil their new learning. Creating agile & Feature Teams
potential. The 2020-2021 program As an outcome of the Culture work,
is being run by the alumni from the Partnering our leaders to collaboration and curiosity are key
program to further embed the learning accelerate growth and lead our pillars. There were several multi-
and pay it forward. The alumni are culture disciplinary workstreams that
also mentors to at least 9 ladies in the presented opportunities to employees
Bank. So far 350 female employees Leadership is key for the growth of
any organization and more so for to do more and different from their
have been through the program. current roles. Multidisciplinary work
transformation and sustaining change.
To enable effectiveness of our leaders, streams are a great avenue for blended
We launched the Barbershop program learning.
which is a men’s program focusing learning programs included:
Future ready
Transformation
Data Flexipay
Wallet
In getting future ready, one of the key
focus areas was teams getting into
the practice labs as the members are
Drive in to
win future
looking to explore what they can do in
Ignite
ready CULTURE Barber Shop the business to immerse themselves.
workforce
280 active learners and
15 active Labs
Innovation L.O.V.E
hub Behaviours
Salesforce
Trailhead

92 Customer Experience
Customer Customer Centricity is one of the

main strategic priorities of the Bank
Experience and Stanbic bank strives to inspire its
employees to connect and deliver the
customer promise. As the bank strengthens
its customer-centric culture one of the banks
key strategic value drivers is to Lead with
Customer Experience.
Customer Appreciation opportunities to bank / solution from +16 in 2020 in the first wave.
value chains and drive increase Customer Satisfaction has seen a
As a financial services organization, in transactional accounts for slight improvement with 8 out of 10. It
we continue to listen to our customers sustainability is also noted that Overall Satisfaction is
to deliver services and solutions that improving year-on-year
are meaningful to them and we are We also recognized 2000 customers
committed to finding new ways to who actively transacted on our digital In November 2021, we also conducted
make their dreams possible. In line channels at least 20 times a week. This a Mystery shopping exercise where 35
with the strategic focus, we embarked is in line with our drive to onboard 95% of our branch and ATM channels were
on proactive customer engagements, of our customer on digital solutions. surveyed across the country with the
driving customer growth, and improving aim to identify service gaps and areas of
the overall customer experience, we Customer Satisfaction excellence.
introduced a Client Appreciation day
We embarked on a journey to become Overall, our service index stands at 68%
initiative for both our personal and
a future ready business that delivers against an 80% average rating for each
business customers.
great experiences to our customers. In touch point.
This initiative is intended to: March 2021, we launched Sales Force
and we laid the foundation to enable The Voice of the customer is an
Reignite a passion in colleagues to opportunity for us to connect better with
world class level of sales service digitally.
serve customers and to appreciate the customers as well as improve the
them A 360-degree view of the customer to
solution better for them and continue way we serve them. The bank continues
Drive customer growth and to drive timely resolution and quality of to encourage customer feedback and
acquisitions in our targeted segments resolution. every month a customer is welcomed
and sectors into the banks customer executive
As a result of the adoption of Salesforce, management meetings to share their
Drive and embed a culture of proactive SLA resolution improved from 14% in
and fruitful customer engagements experiences with us.
March to 84.7% in December 2021.
Aims to increase Non-Interest Revenue
Stanbic Bank Uganda’s overall NPS
through deepening entrenchment,
for 2021 improved by +3 points to +19

Customer Experience continued 93
2021 MoM Churning Trend

35 000
30 000
25 000
Customer
Retention 20 000
Churn customers
reduced from 12,867 15 000
in Jan 2021 to 869 in
November 2021.
10 000
5 000
-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
% churned 43% 51% 38% 14% 16% 13% 13% 64% 34% 20% 12%
Onboarded 1,706 7,108 8,268 8,292 6,810 7,246 6,033 7,316 6,798 6,175 6, 302
Churned 1,286 7,444 5,098 1,297 1,330 1,072 862 1,291 3,455 1,582 869
Uptime- 2021 YTD Average %
100.00%
100.00%
Channel
99.78%
99.81%
99.48%
99.51%
99.6%
98.97%
98.75%
98.73%
Efficiency
98.73%
Over 80 percent of
97.31%
the bank’s services 96.46%
96.10%
96.21%
are delivered to
95.72%
customers through
digital channels
in line with the
organization’s
future readiness
aspirations. Stanbic
bank aims at
ensuring stability
and reliability of
its digital service
channels at 100%.
EOL
BOL
OTP
Finacle
GPOD
Online Banking
USSD
BOL app
ATMs
POS
Pegpay
School pay
FlexiPay
Agent Banking
In 2021 several of
our systems were
relatively stable.
Managing complaints
Overall bank complaints have greatly
reduced from 51,367 in the first half of the
year(January to June) to 29,716 in the
second half of the year(July to December)
The complaint management process
is supported through the salesforce
complaint resolution tracking and
monitoring.
We continue to focus the teams
and ensure that the customer
resolution is timely and within
the service level agreements
in place.

94 Occupational Health and Safety
Occupational Health
and Safety
Occupation healthy and safety was a main focus for the
bank in 2021. The unit supported staff with PPEs gears
during the second COVID -19 lock down, which included,
face mask, gloves for tellers, sanitizer and liquid soap
usage, Temperature guns, desk shield for tellers, daily
staffing numbers per floor and branch to monitor social
distancing adherence and area sitting capacity across all
point of business representations. Unfortunately, the
bank lost one staff due to COVID-19 pandemic. A big
number of staff recovered.
We got 50 car accidents of which 2 were fatal. Affected staff
recovered from Hospital and are back to work. Measures have been
put in place to control and reduce car accidents. Speed governs
planted into bank cars, refresher course on defensive driving
given to all staff permitted to drive bank cars and plan is under
way to replace old fleet of cars.
Over 200 staff were offered first aid and fire marshal
refresher course to comply with the OHS act of 2006 and
also a bid by the OHS policy of the bank. Ergonomic and
heavy weightlifting trainings were offered to staff. 20 staff
members were reported to have been diagnosed with
back pain. They were given Orthopaedic chairs.
Environmental Responsibility
Stanbic bank Uganda is committed to the support of the Stanbic Bank Uganda’s goal is to reduce environmental emissions
environmental conservation programmes through ensuring use through green technologies and processes. We subscribe to
of adequate infrastructure, tools and methods for environmental the same Environmental Policies of Standard Bank Group. The
sustainability. The bank’s employees’ awareness and training bank continuously tracks the consumption trends for its energy
programmes are designed to address environmental requirements. resources including water, diesel and electricity and implements any
Bank operations are governed by standard processes and observed/recommended requirements for dealing any deviations
procedures that promote varied aspects of environmental from the desired trends.
sustainability.

Environmental Highlights 95
Environmental Highlights
2021 2020 2019

Electricity purchased kilowatt hours 3,457,641 3,581,455 4,009,723
Fuel consumed liters 378,235 403,662 460,438
Water consumed kiloliters 21,205 20,820 26,073
Paper consumed (Copier) tons 32 38 54
Paper consumed (Other) tons 40 59 64
Carbon Emissions tons 4,885 5,172 6,151
Energy consumption has a direct effect on operational costs and exposure to fluctuations
in energy supply and prices. Our environmental footprint is shaped in part by our choice
of energy sources. Energy utilized at Stanbic bank is basically in the form of hydro-electric
ENERGY power that is required to power up our machines and at the same time provide lighting
CONSUMPTION amongst other uses. Hydroelectric power is regarded as clean energy and thus doesn’t
pose any negative material impact to the environment. The Bank however runs diesel
powered generators as back up supply for instances where the hydroelectric power is
unavailable. There are two locations in the network (Kotido and Kaabong) which are off
4,009,723
grid, however solar power supply was installed at these locations three years ago after
3,581,455
a successful proof of concept as a primary source with a generator being used at each
3,457,641
site as a backup. Alternative sources of power that are robust enough to run full branch
infrastructure with No/ minimal impact to the environment are being explored and
once confirmed to be suitable, a proof of concept will be carried out before adopting the
solution.
Electricity 2021 2020 2019

Electricity purchased kilowatt hours 3,457,641 3,581,455 4,009,723
The Banks Electricity consumption reduced by 4% in 2021 and this is attributed to various
2021 2020 2019 initiatives undertaken to reduce our total energy consumption such as replacement of
desktops which required powering two equipment with laptops, space reduction (Umoja
and Muyenga records centre) and hybrid working model.
It’s important to note that there was a general stable grid power supply which resulted in
corresponding drop in generator usage.
The energy efficiency initiatives like deployment of LED lights and automation of air
conditioners is still being implemented for Branches which are being set up/ revamped.
Sensitisation was carried out across the network on energy usage, and this has also
greatly contributed to reduction of energy usage as well as reduction in the size of some
branches. Automation of lights is currently being explored for head office and a proof of
concept is scheduled for Q2 2021.
Fuel Consumption has a direct impact on emissions released to the environment. At

Stanbic, our fuel usage usually comes in the form of Motor Vehicle and Generator Fuel
FUEL usage. Stanbic utilises electronic tracking & monitoring of fuel technology for both
CONSUMPTION Vehicles and generators in order to check efficiency and total consumption by the bank.
Fuel 2021 2020 2019

Fuel consumed liters 378,235 403,662 460,438
460,438
403,662
378,235
Our fuel consumption reduced by 6.3% in 2021.This is attributed to the Logistical team’s
sensitisation to the network on efficient usage, timely engagements with UMEME to
restore power which increased on grid power uptime and replacement of old and high fuel
consuming cars with more efficient new cars, reduction in movements majorly attributed
to Covid 19 Impact and restrictions imposed by the Government to control the spread.
2021 2020 2019

96 Environmental Highlights
Our value creation process requires marginal input of materials and as such our major
input is paper which is used in form of stationery of varied nature. This is used to print
MATERIALS necessary source documents as well as various reports.
Stationery 2021 2020 2019

54 Paper consumed (Copier) tons 32 38 54
Paper consumed (Other) tons 40 59 64
38
32
Paper consumption reduced by 17% in 2021 compared to the consumption in 2020. This
is attributed to a couple of initiatives adopted to reduce on paper usage, which include
process automation and digitisation of some processes e.g. procurement and payment
process which are currently run through Coupa. Furthermore, the introduction of digital
engagements like Teams for meetings as well as customer transactions which were
digitised also discouraged the usage of paper. Key to note was the impact of Covid-19 on
2021 2020 2019 business where business slowed down for a period of six months.
64
This is expected to drop further once the paperless initiatives in place are fully adopted.
59
40
Consumption of other stationery in this area also reduced by 33% compared to 2020
due to increased sensitisation on stationery usage across the network as well publication
of costs incurred by different teams on stationery which has greatly impacted on the
behaviour in stationery usage.
2021 2020 2019
Clean freshwater is becoming increasingly scarce and can impact production processes
that rely on large volumes of water. Our value chain at Stanbic Bank does not require
WATER USAGE significant volumes of water and as such much of the water used is for basic laundry and
sanitary services. The levels of water consumption do not pose a systemic risk to the
environment.
Water 2021 2020 2019

26,073
Water consumed kiloliters 21,205 20,820 26,073

21,205
20,820
The increasing trend in water usage in 2021 was attributed to the Covid-19 impact which
required an increased frequency of cleaning and return of some staff members who were
initial working remotely in response to customer demands.
2021 2020 2019
Greenhouse gas emissions are the main cause of climate change. In July 2015 Uganda
signed to the ratifications of the Kyoto Protocol an initiative of the United Nations
GREEN HOUSE Framework Convention on Climate Change. Under the Protocol, countries’ actual
GAS EMISSIONS emissions have to be monitored and precise records have to be kept of the trades
carried out. Much of our value chain doesn’t result into significant emissions into the
environment, our operational practices however, cause emissions to the environment
which arise in form of motor vehicle and generator diesel combustion, flight, air-
conditioning and Fluorescent emissions. Various initiatives are currently in place to reduce
6,151
5,172
4,885
our emissions to the environment as indicated further on.
Gas Emission 2021 2020 2019

Carbon emissions tons 4,885 5,172 6,151
Our carbon footprint decreased by 6% in 2021 driven majorly by our lower reliance on
diesel due to power stability and equipment rationalisation.
2021 2020 2019 The Covid-19 impact spread throughout the year 2021 and hence affecting majority of
business operations such as commercial flights, head office and the branch network
mobility.
STRATEGIC ENVIRONMENTAL INITIATIVES • Tree planting imitative in partnership with other cooperate
The Bank continues to take deliberate steps to cut down its entities
energy consumption and optimize the spend on energy. To this • Digitization and process automation of Process to reduce on
end the following initiatives are being driven. demand for paper.
• Power automation, equipment rationalization and deploy- • Adopt equipment’s (Generators, vehicles etc.) with smart
ment of environmentally friendly alternative power solutions technology which have minimal impact to the environment.
like solar and inverters. • Office and Branch Space rationalization.
• Waste management (adopt usage of waste segregation bins
at all PoR’s)

Corporate Social Investments 97
CORPORATE
SOCIAL
INVESTMENTS

98 Committed to transforming lives in our communities
Committed to transforming
lives in our communities
Stanbic Uganda remains committed to delivering on its Social,
Economic and Environmental priorities through our Corporate
Social Investment initiatives that transform the lives of people in our
communities. Stanbic Invested over UShs 3.5 Billion in community
initiatives. This section highlights our key initiatives in 2021:
Education – National Schools

Championship
Despite the hurdles presented by the pandemic, the
Stanbic National Schools Championship kept raising
the bar through innovative educational programs that
continued to support students while at home for the
2nd year running. With a budget of over UShs 800m,
the program reached 100 schools, 400 teachers
and 60,000 students. The number of schools
participating has increased over the years to 100
schools in 2021, with the number of students skilled
jumping from 96 at the start in 2016 to 2, 300 in 2021
and the number of teachers skilled increasing from 32
to 100 in 2016 and 2021.
over UShs 800m, 100 schools, 400 teachers

and 60,000 students reached.
Health - Maternal Health Initiative

The health of mothers in our country impacts us all and to
promote improved maternal health care, Stanbic Uganda
partnered with various players in the public and private
sector to raise support and greater awareness of the
issues mothers face.
The partners included: ATC Uganda, Huawei, Vivo
energy, Liberty Life, UNOC, MTN, Umeme, Uganda
Communication Commission, Trademark East Africa,
Total, NSSF, Crown Beverages, Uganda Breweries
Limited, AFREXIM and United Nations Development
Program.
We also started an awareness campaign under the theme
‘Every Mother Counts’, in which we intend to ensure that
government hospitals have proper lifesaving equipment,
individual mothers receive proper care during their
pregnancy period and ensure that doctors, midwives and
nurses are appreciated, comfortable and enjoy delivering
quality services to these mothers.
Stanbic also donated 100m worth of equipment and
over UShs130 million worth of mamakits in 3 batches
contributed towards by staff and matched by the CSI
department in 2021 and this supported over 4,000
The Bank donated 100m worth of equipment and mothers that came through the hospital.
over UShs130 million worth of mamakits

Committed to transforming lives in our communities continued 99
Environment - Taasa
Obutonde Campaign
In 2021, Stanbic Partnered with Vivo
Energy, NEMA, UBL and NBS in the
Taasa Obutonde campaign with a partner
contribution of 30m. The campaign was
started to support the UN SDGs 3 (Good
Health and Well Being), 13 (Climate
Action) and 17 (Partnerships for the
goals) while encouraging environmental
conservation and recycling of plastic
waste.
The Bank contibuted UShs 30m

in Taasa Obutonde campaign
Employee Community initiatives

29 staff projects were supported and implemented
under our employee community initiatives. Matching
our staffs contributions, the bank spent UShs73m on
staff chosen initiatives that were focused on solving
the issues faced by the members of the communities
in which we serve and impact over 6,300 people.
CSI Intervention Reach (Number of. Beneficiaries) 2021 2020 2019

Employee Community Involvement (ECI) 7,656 12,884 20,000
Philanthropy and Commitment to Humanitarian projects 135,670 312,504 247,000
CSI Special Projects and Strategic Partnerships 157,727 133,750 141,000
Total 301,053 459,138 408 000
CSI Investment 2021 2020 2019

CSI Investment (UShs) 3,507,765,110 3,914,938,416 2 906 362 595
Stanbic Invested over UShs 3.5 Billion

in community initiatives. This section
highlights our key initiatives in 2021

100 Key Projects and partnerships
Key Projects and

partnerships
Social Interventions during second wave of Covid-19
pandemic:
In the second wave of the Covid 19 pandemic in 2021, Stanbic bank once again
took the frontline to respond to the pressing needs of communities and health
workers. Among the many interventions, we made donations to frontline health
works in collaboration with the Ministry of Health. We donated 100 oxygen
cylinders and Personal protective gear.
we donated 100
oxygen cylinders
and Personal
protective gear.
Tree planting initiatives

We continue to promote environmental conservation
through various initiatives that deliver on our SEE
and ESG priorities which align to the sustainability
development goals on climate change action.
In 2021, Stanbic Bank Uganda partnered with Roofings
LTD and Total energies to plant fruit trees across the
country.
Stanbic engaged both staff and partners in a green
campaign where 19,279 fruit trees were distributed
countrywide to schools and other locations. 12,448
trees were planted in schools and 6831 distributed
to Staff members for both personal projects and
employee community initiatives.
The Bank engaged both staff and partners

in a green campaign where 19,279 fruit
trees were distributed countrywide.

SUSTAINABILITY REPORT 101
Key Projects and partnerships continued
Philanthropy and Commitment to

Humanitarian projects
In addition to our key projects, Stanbic Uganda has been
instrumental in providing support to various communities facing
diverse challenges that require specific interventions to support
their needs.
We provided both financial and in-kind support to our communities
and below are some of the key initiatives we supported:
Other philanthropy and sponsorship projects:

Project Name Our Involvement Support in UShs Impact
Rutooma PS Construction of a classroom block 10,000,000 589
Ramadhan Donation Donation towards Ramadhan 35,000,000 15,000
Ngora District local Donation towards refurbishing and
20,000,000 1,000
government equipping district health units
MUBS Sponsorship for youth conference 5,000,000 20
Procurement of oxygen cylinders
Covid-19 relief, wave 2 to support MoH, Protective gear for 212,878,520 12,600
frontline workers
Nyaka project Nyaka marathon sponsorship 3,000,000 1,000
PPEIAU vaccination
Multi-media based campaign 4,010,000 372
drive
Boundless minds Donation towards the initiative 30,000,000 500

Women in technology Donation towards the initiative 20,000,000 360
Bakash foundation Donation towards the initiative 15,000,000 5,000
Heroes in health Donation towards the awards 30,000,000 1,000
SOS Donation towards the initiative 30,000,000 29,000
Wakisa ministries Donation towards the initiative 20,000,000 104
CSI computer donation Donation towards youth centers 13,000,000 20,000

102 Repoting practices
Reporting Practices
The 2021 Sustainability Report was compiled in reference to the Global Reporting Initiative (GRI) guidelines and supported by the G4
Financial Services Sector Supplement.
Disclosure Required Page

Description Cross Reference/ Heading
Number for CORE Reference
102-1 Name of the organisation Core Who we are 9
102-2 Activities, brands, products, and services Core 218-219
102-2 Activities, brands, products, and services Core products and servicesw 218-219
102-3 Location of headquarters Core Supplementary information 9 & 222
102-4 Location of operations Core Stanbic Footprint in Uganda 220 & 221
102-5 Ownership and legal form Core Organisation Structure 7
Who we are and supplementary
102-6 Markets served Core 10 & 11
information
102-7 Scale of the organisation Core 10 & 11
102-8 Information on employees and other workers Core Investing in our employees 88-91
102-9 Supply chain Core Our products and services 218-219
102-10 Significant changes to the organisation and its supply chain Core N/A
102-11 Precautionary Principle or approach Core N/A
102-12 External initiatives Core Direct benefits to society 97-101
102-13 Membership of associations Core N/A
Strategy
102-14 Statement from senior decision-maker Core Chairman’s Statement 14
102-15 Key impacts, risks, and opportunities Compliance practices 87
Ethics and Integrity
102-16 Values, principles, standards, and norms of behavior Core Covered in our values 26
102-17 Mechanisms for advice and concerns about ethics Risk management and control 46-57
Governance
102-18 Governance structure Core Corporate governance 108-109
102-19 Delegating authority Corporate governance 113
Executive-level responsibility for economic, environmental,
102-20 Corporate governance N/A
and social topics
Consulting stakeholders on economic, environmental, and
102-21 Corporate governance 113-117
social topics
Composition of the highest governance body and its
102-22 Corporate governance 108-109
committees
102-23 Chair of the highest governance body Corporate governance 108
102-24 Nominating and selecting the highest governance body Corporate governance 114
102-25 Conflicts of interest Corporate governance 121
Role of highest governance body in setting purpose, values,
102-26 Corporate governance 113
and strategy
102-27 Collective knowledge of highest governance body N/A
102-28 Evaluating the highest governance body’s performance Corporate governance 115
Identifying and managing economic, environmental, and
102-129 Risk management and control 46-57
social impacts
102-30 Effectiveness of risk management processes Risk management and control 46-57
Financial and Operational
102-31 Review of economic, environmental, and social topics 34-37
Review
102-32 Highest governance body’s role in sustainability reporting Corporate governance 118
102-33 Communicating critical concerns N/A
102-34 Nature and total number of critical concerns N/A
102-35 Remuneration policies Remuneration report 123-124
102-36 Process for determining remuneration Remuneration report 123-124
102-37 Stakeholders’ involvement in remuneration Remuneration report 123-124
102-38 Annual total compensation ratio Remuneration report 123-124
102-39 Percentage increase in annual total compensation ratio Remuneration report 123-124
Stakeholder Engagement
102-40 List of stakeholder groups Core Stakeholder engagement 78
102-41 Collective bargaining agreements Core Investing in our employees 88-91
102-42 Identifying and selecting stakeholders Core N/A
102-43 Approach to stakeholder engagement Core Stakeholder engagement 88-91
102-43 Approach to stakeholder engagement
Core Stakeholder engagement 88-91
102-44 Key topics and concerns raised
102-45 Entities included in the consolidated financial statements Core N/A

Repoting practices (continued) 103
Reporting Practice
102-46 Defining report content and topic Boundaries Core About this report 63
102-47 List of material topics Core About this report 63
102-48 Restatements of information Core N/A
102-49 Changes in reporting Core N/A
102-50 Reporting period Core Our Report 63
102-51 Date of most recent report Core Our Report 63
102-52 Reporting cycle Core Our Report 63
102-53 Contact point for questions regarding the report Core Supplementary information 212
102-54 Claims of reporting in accordance with the GRI Standards Core GRI Index 102-105
102-55 GRI content index Core GRI Index 102-105
102-56 External assurance Core N/A
Management Approach
103-1 Explanation of the material topic and its Boundary Core N/A
103-3 Evaluation of the management approach Core Chairman’s Statement 64
Economic Approach
201-1 Direct economic value generated and distributed 68
Financial implications and other risks and opportunities
201-2 Environmental responsibility 94-96
due to climate change
201-3 Defined benefit plan obligations and other retirement plans N/A
201-4 Financial assistance received from government N/A
Market Presence
Ratios of standard entry level wage by gender compared to
202-1 N/A
local minimum wage
Proportion of senior management hired from the local
202-2 N/A
community
Indirect Economic Impacts
203-1 Infrastructure investments and services supported N/A
Covered in environmental
203-2 Significant indirect economic impacts 94-96
responsibility
Procurement Practices
Covered in building a
204-1 Proportion of spending on local suppliers 82
responsible business.
88-91
Anti-Corruption
205-1 Operations assessed for risks related to corruption N/A
Communication and training about anti-corruption policies
205-2 Compliance practices 86
and procedures
205-3 Confirmed incidents of corruption and actions taken N/A
Anti-Competitive Behavior
Legal actions for anti-competitive behavior, anti-trust, and
206-1 Compliance practices 87
monopoly practices
Materials
301-1 Materials used by weight or volume Environmental responsibility 94-96
301-2 Recycled input materials used N/A
301-3 Reclaimed products and their packaging materials N/A
Energy
302-1 Energy consumption within the organisation Environmental responsibility 95
302-2 Energy consumption outside of the organisation Environmental responsibility 95
302-3 Energy intensity Environmental responsibility 95
302-4 Reduction of energy consumption Environmental responsibility 95
Reductions in energy requirements of products and
302-5 Environmental responsibility 95
services
Water
303-1 Water withdrawal by source Environmental responsibility 96
303-2 Water sources significantly affected by withdrawal of water Environmental responsibility 96
303-3 Water recycled and reused Environmental responsibility 96
Bio-Diversity
Operational sites owned, leased, managed in, or adjacent
304-1 to, protected areas and areas of high biodiversity value N/A
outside protected areas
Significant impacts of activities, products, and services on
304-2 N/A
biodiversity
304-3 Habitats protected or restored N/A

104 Repoting practices
IUCN Red List species and national conservation list

304-4 N/A
species with habitats in areas affected by operations
Emissions
305-1 Direct (Scope 1) GHG emissions Environmental responsibility 96
305-2 Energy indirect (Scope 2) GHG emissions Environmental responsibility 96
305-3 Other indirect (Scope 3) GHG emissions Environmental responsibility 96
305-4 GHG emissions intensity Environmental responsibility 96
305-5 Reduction of GHG emissions Environmental responsibility 96
305-6 Emissions of ozone-depleting substances (ODS) Environmental responsibility 96
Nitrogen oxides (NOX), sulfur oxides (SOX), and other
305-7 N/A
significant air emissions
Effluents and Waste
306-1 Water discharge by quality and destination Environmental responsibility 96
306-2 Waste by type and disposal method N/A
306-3 Significant spills N/A
306-4 Transport of hazardous waste N/A
306-5 Water bodies affected by water discharges and/or runoff N/A
Environmental Compliance
307-1 Non-compliance with environmental laws and regulations N/A
Supplier Environmental Assessment
New suppliers that were screened using environmental
308-1 N/A
criteria
Negative environmental impacts in the supply chain and
308-2 N/A
actions taken
Employment
401-1 New employee hires and employee turnover Investing in our employees 88-91
Benefits provided to full-time employees that are not
401-2 Investing in our employees 88-91
provided to temporary or part-time employees
401-3 Parental leave Investing in our employees 88-91
Labour / Management Relations
402-1 Minimum notice periods regarding operational changes N/A
Occupational Health and Safety
Workers representation in formal joint management–
worker health and safety committees
Types of injury and rates of injury, occupational diseases,
403-2 lost days, and absenteeism, and number of work-related Investing in our employees 88-91
fatalities
Workers with high incidence or high risk of diseases related
to their occupation
Health and safety topics covered in formal agreements with
trade unions
Training and Education
404-1 Average hours of training per year per employee Investing in our employees 88-91
Programmes for upgrading employee skills and transition
assistance programmes
Percentage of employees receiving regular performance
and career development reviews
Diversity and Equal Opportunity
405-1 Diversity of governance bodies and employees Investing in our employees 88-91
405-2 Ratio of basic salary and remuneration of women to men N/A
Non-Discrimination
406-1 Incidents of discrimination and corrective actions taken N/A
Freedom of Association and Collective Bargaining
Operations and suppliers in which the right to freedom of
407-1 N/A
association and collective bargaining may be at risk
Child Labour
Operations and suppliers at significant risk for incidents of
408-1 N/A
child labor
Forced and Compulsory Labour
Operations and suppliers at significant risk for incidents of
409-1 N/A
forced or compulsory labor
Security Practices
Security personnel trained in human rights policies or
410-1 N/A
procedures

Repoting practices (continued) 105
Rights of Indigenous People

Incidents of violations involving rights of indigenous
411-1 N/A
peoples
Human Rights Assessment
Operations that have been subject to human rights reviews
412-1 N/A
or impact assessments
412-2 Employee training on human rights policies or procedures Investing in our employees 88-91
Significant investment agreements and contracts that
412-3 include human rights clauses or that underwent human N/A
rights screening
Local Communities
Operations with local community engagement, impact
413-1 Direct Contributions to society 93-98
assessments, and development programmes
Operations with significant actual and potential negative
413-2 Direct Contributions to society 93-98
impacts on local communities
Supplier Socio Assessment
414-1 New suppliers that were screened using social criteria N/A
Negative social impacts in the supply chain and actions
414-2 N/A
taken
Public Policy
415-1 Political contributions N/A
Customer health and Safety
Assessment of the health and safety impacts of product
416-1 N/A
and service categories
Incidents of non-compliance concerning the health and
416-2 N/A
safety impacts of products and services
Marketing and Labeling
Requirements for product and service information and
417-1 N/A
labeling
Incidents of non-compliance concerning product and
417-2 N/A
service information and labeling
Incidents of non-compliance concerning marketing
417-3 N/A
communications
Customer Privacy
Substantiated complaints concerning breaches of
418-1 N/A
customer privacy and losses of customer data
Socioeconomic Compliance
Non-compliance with laws and regulations in the social and
419-1 N/A
economic area


CORPORATE
GOVERNANCE
111 SBUL Executive Committee
111 SUHL Executive Committee
123 Remuneration Report
125 Report of the Audit and Risk Committee
127 Directors’ Report

Board of Directors
Japheth Kato 70 Olusola Adejoke 61 Patrick Mweheire 51

INED David-Borha NED
NED
Board Chairman SUHL Non- Executive Director Non-Executive Director BSc (Econ, Daemen)
APPOINTED 2014 Advanced Management Program, Harvard MBA (Harvard)
BCom Honours, FCCA CPA - Uganda Business School; Global CEO Program of APPOINTED 2012
Committee: Nomination and CEIBS, Wharton and IESE Committee: SBU Credit (C/M), Asset and Liability
Remuneration APPOINTED 2019 (C/M), People and Culture
Committee: SBUL Risk Management SUHL-Nomination and Remuneration
(C/M)
Asset and Liability
Andrew Mashanda 51 Prof. Patrick 69 Anne Juuko 40

ED SUHL Mangheni ED SBUL
INED
Chief Executive SUHL Board Chairman, SBUL Chief Executive, SBUL

BSc Accounting PhD Functional Analysis (Oxford) BCom MUK, MBA. Strategic Planning
Univ. of South Africa PGD Global APPOINTED 2015 Edinburgh Business School
Management Committee: None APPOINTED 2020
APPOINTED 2020 Committee: Credit, Risk, Asset and Liability
Committee: None
Emma Mugisha 48 Damoni Kitabire 63 Eva Grace Kavuma 59

ED INED INED
B.SWASA, MUK M.Sc. degree (Finance) from Strathclyde BSc Business Administration
MBA, Rotterdam University, Glasgow (UK), Diploma (National (Ithaca, New York), MA Interntional
APPOINTED: 2020 Economic Planning) from Central School Management (Thunderbird, Arizona)
Committee: Risk and Asset and of Planning Warsaw (Poland) and Bachelor APPOINTED: 2016
Liability of Arts degree (Economics) from Makerere Committee: Audit, People and Culture (C/M)
University.
APPOINTED: 2021
Committee: Audit and Risk
Samuel Zimbe 69 Josepha T. Ndamira 41 Elizabeth K. 52

INED INED Ntege
INED
MA Finance and Investment, ACCA B. Comm (Accounting). Makerere BSc.Eng (Hons),

University De-Montfort University UK. Business Incubation
APPOINTED 2017
MBA Edinburgh Business School (Heriot Management, African Business Incubation Institute, SA,
Committee: C/M, Audit and Risk
Watt University). Bullet Proof Management and Leadership, Crestcom
Fellow of the ACCA(UK) International USA Certified Network Associate and
Professional, Cisco Systems Inc-UK
APPOINTED 2019 APPOINTED 2019
Committee: C/M, Audit Committee: Credit, People and Culture, Risk

Board of Directors continued 109
Agnes Konde 49 Candy Wekesa 51 Tony Okao Otoa 40

NED Okoboi ED STANBIC
NED INCUBATOR
Board Chairman SBGS Board Chairman Stanbic Business Incubator Chief Executive Stanbic Business
Non-Executive Director SUHL Non-Executive Director, SBG Securities Limited Incubator
BA(SS), MUK L.L.B MUK; PGD.L.P, LDC LLM Oxford Brookes, BSc International
MBA Univ of Liverpool MBA, Edinburgh Business School Relations and Communication and Media,
APPOINTED 2020 APPOINTED: 2020 Oxford Brookes
Committee: SUHL Audit and Risk, and APPOINTED: 2020
Board Nominations and Remuneration
Catherine Poran 51 Samuel Fredrick 40 Patricia N. 42

NED Mwogeza Musiime
NED NED
Stanbic Business Incubator, Board Chairman Stanbic Properties Limited

Ongoing MBA (Heriot-Watt University Stanbic Properties Limited BA(SS), MUK, MBA Nkozi
Edinburgh) B.Comm (Acc.) MUK, MBA, Edinburgh APPOINTED: 2020
PGD Business Management, LLM, Business School, CPA - Uganda FCCA
Buckingham University APPOINTED: 2020
APPOINTED: 2020
Spencer Sabiiti 37 Joram Ongura 35 Dr. Haruna 46

ED STANBIC ED SBG Securities Mawanda
PROPERTIES Uganda NED
Chief Executive Stanbic Properties Limited Chief Executive SBG Securities Flyhub Uganda Limited (C/M)
Ongoing MBA (Edinburgh Business School), Uganda Limited PhD IT, Capella University,
PGD Construction Project Management SITI East Africa Minneapolis, MN, USA Certified
MUK, BSc. Quantity Survey MUK Professional APPOINTED 2021 Information Systems Auditor
Member, Institute of Surveyors of Uganda, APPOINTED: 2020
Member of the International Organisation of
Health and Safety, UK
APPOINTED 2020
Stanbic Uganda Holdings Limited Male Female

Stanbic Bank Uganda Limited
Stanbic Properties Limited
12 9
Stanbic Business Incubator Limited
Joel Muhumuza 36
ED FlyHub SBG Securities Uganda Limited
FlyHub
C/M Committee Chairman
Chief Executive, Flyhub Uganda Limited
Master of Business Administration (Hons),
Bachelor of Commerce (Hons)
APPOINTED: 2021

110 SBU Executive Committee
SBU Executive Committee
Anne Juuko Emma Mugisha Samuel Mwogeza
Chief Executive Head Business and Commer- Head Consumer & High
Joined the Bank: 2012 cial (BCC) Networth (CHNW)
Joined EXCO: 2020 Joined the Bank: 2013 Joined the Bank:2010
Joined Exco:2018 Joined Exco: 2015
Paul Muganwa David Mutaka Candy Wekesa

Okoboi
Head Corporate and Head, People and Culture Head, Legal

Investment Banking(CIB ) (P&C) Joined the Bank: 2016
Joined Bank: 2014 Joined the Bank: 2010 Joined Exco: 2016
Joined EXCO: 2021 Joined EXCO: 2020
Gladys Muchae Martin Sekaziga Barbara Dokoria
Country Head, Credit & Chief Risk Officer Head, Compliance

CIB Uganda Joined the Bank: 2019 Joined the Bank: 2003
Joined the Bank: 2017 Joined Exco: 2019 Joined Exco: 2018
Joined Exco: 2017
Miriam Naigembe Ronald Makata Rita Kabatunzi
Head Client Solutions Ag. Chief Financial Officer Company Secretary

Joined the Bank: 2013 Joined the Bank: 2012 Joined the Bank: 2018
Joined EXCO: 2021 Joined EXCO: 2021 Joined EXCO: 2018
Elijah Kitaka Howard Edaffe Daniel Ogong
Head Engineering Ag. Head Audit Head Marketing &

Joined the Bank: 2021 Joined the Bank 2021 Communications
Joined EXCO: 2021 Joined EXCO 2021 Joined the Bank: 2017
Yvonne Wamukota
Samuel Isiko Bulenzi
Namutosi
Head Data Enterprise Office Country Head, Salesforce

Joined the Bank: 2020 Joined the Bank: 2017

SUHL Executive Committee 111
SUHL Executive Committee
Andrew Mashanda Rita Kabatunzi Sophie Achak
Chief Executive SUHL Company Secretary Investor Relations and

Joined SUHL: 2020 Joined SUHL: 2020 Strategy
Joined SUHL: 2020
Spencer Sabiiti Tony Okao Otoa Joel Muhumuza
Chief Executive Stanbic Chief Executive Stanbic Chief Executive,

Properties Limited Business Incubator Flyhub Uganda
Joined SUHL: 2020 Sophie Achak Joined SUHL: 2020 Joined SUHL: 2021
Investor Relations
and Strategy
Joram Ongura
Chief Executive SBG

Securities Uganda Limited
Joined SUHL: 2021
Joel Muhumuza
CE FlyHub

Corporate Governance Statement

2021 continued to test the resilience, responsiveness and robustness of our
governance practices given the effects of the Covid-19 pandemic. Through it all, the
Board upheld the highest corporate governance standards. It effectively provided
oversight to management to assist our clients and the economy through the ongoing
recovery process. The Corporate Governance Statement sets out the governance
framework adopted by Stanbic Uganda Holdings Limited, Stanbic Bank Uganda
Limited, which remains the largest subsidiary and the beyond-banking subsidiaries,
jointly referred to as Stanbic Uganda. The framework ensures that Stanbic Uganda
operates a sustainable business to benefit all stakeholders. This statement highlights
how the key elements of good governance were applied during the 2021 financial year.
Corporate Structure transparency, accountability, adequate the different ‘future-ready’ workstreams,

controls, good performance, integrity, which were then considered, debated,
Stanbic Uganda Holdings Limited and sound ethical culture. The Board and challenged to balance the FRT
(SUHL/the Company) is a non-operating is guided by the articles of association, strategy and the current business
holding company listed on the Uganda subsidiary governance framework, and priorities.
Securities Exchange (USE) with 22,469 board mandate, which articulate matters
shareholders as of December 31st, reserved for the Board. Additionally, the Board provided
2021. 80% of the shares are owned by effective oversight of the change
Stanbic Africa Holdings Limited (SAHL), The approach to the fulfilment of the management process, which included:
a private limited liability company Board’s role in ensuring short and Close monitoring and driving of
incorporated in the United Kingdom long-term success of the company organisation culture changes to
which is wholly owned by Standard evolved into a greater collaboration with align with the strategic changes,
Bank Group (SBG), a South African management to resolve the immediate filling vacant executive management
financial services company listed on the challenges caused by the second wave positions essential in the delivery of the
Johannesburg Stock Exchange (JSE). of the pandemic, such as ensuring FRT strategy. Additionally, there was
Institutional and retail shareholders hold employee health and safety, review and increased attention to the emerging
20%. Key shareholder information is approval of credit terms for the worst-hit risks arising from the change. To
covered on page 218. SUHL wholly owns businesses. The Board demonstrated its further strengthen this oversight role,
five subsidiaries spread across various leadership in its availability, accessibility, considerations have been made for the
industries in banking, real estate, stock agility and courage to make critical creation of an Engineering committee
brokerage, software development and decisions and devote more time to which will support the Board in setting
non-profit. The corporate structure oversight and timely approvals. and achieving its strategic objectives
aligns with SUHL’s vision to be the from a digital transformation perspective
leading digital platform services From a beyond-banking subsidiary
organisation in, for and across Uganda perspective, the Board focused on The traditional key responsibilities of the
through leveraging the eco-systems ensuring that all subsidiaries were fully Board remained as follows:
across the different subsidiaries to operational and that the respective · Sets the strategic direction and
create strategic partnerships, digitise strategies were aligned to the SUHL provides entrepreneurial leadership.
processes, and diversify our services, vision to create and leverage the
synergies across all entities. This was · Sets organisational values to drive
thereby guaranteeing superior quality culture and ethics and oversee the
customer experience and operational achieved by including a standing agenda
item in the quarterly board meetings implementation of the company
excellence. vision, mission, strategic objectives
on the key milestones and activities
The different subsidiaries include related to the subsidiaries. The Board and corporate values.
Stanbic Bank Uganda Limited (the ensured that the same standard of · Approves and reviews policies for
Bank/SBU), Stanbic Properties Limited board practices and quality of reporting appropriateness to the business.
(SPL), Stanbic Business Incubator was adopted and implemented across · Approves budgets and financial
Limited (SBIL), Flyhub Uganda Limited the different subsidiaries to the extent statements considering best practices
(Flyhub) and SBG Securities Uganda applicable and per the subsidiary on integrity and accuracy. Ensures an
Limited (SBGs). The SUHL corporate governance framework. In performing its effective risk management system and
structure is shown on page 7, while our role, the Board, through the Nomination a robust internal control environment.
governance approach to value creation is and Remuneration Committee, was
shown on page 24. · Appoints and sets the remuneration
central in identifying and recruiting
for executive management.
the SBGS Uganda and Flyhub Chief
Evolving Role and Culture Executives. · Ensures requisite financial and
human resources are in place for the
The operationalising of the beyond In support of the future-ready company to meet its obligations.
banking subsidiaries and the continued transformation (FRT) journey, the
effects of the Covid-19 crisis emphasised · Recommends to the shareholders
Board approved the operational model
the importance of corporate governance director appointments and
and organisational structure changes
in ensuring the delivery of our strategy remuneration. The Board monitors the
critical to converting to a platform
in the fast-evolving environment. The implementation of strategy and tracks
business. The approved changes would
Board of directors, in carrying out its performance against agreed strategic
accelerate the digital transformation
oversight responsibility, continued to value drivers.
journey and unlock value by creating new
ensure that the highest standards of opportunities within Stanbic Uganda’s The details of the strategic focus for
corporate governance were maintained eco-system. Every quarter the Board the year are articulated in the Chief
by emphasising the importance of was updated on the progress made by Executive statement on page 18.

Corporate Governance Statement continued 113
good governance at a company and non- adapted to the unique circumstances

executive director level. of each subsidiary, ensuring disciplined
Delegation of Authority The company abides by the USE
execution of the organisational purpose
The Board has overall responsibility for and strategy
Continuing Listing Obligations which are
the organisation and is accountable essential in ensuring transparency and
for its performance. The Companies fairness through timely, simultaneous
Board Size and
Act provides that the directors must access to information, thereby guarding Composition
promote the company’s success, against insider trading and promoting
exercise independent judgment, The Board composition is reviewed
investor confidence. In 2021, SUHL
reasonable care, skill and diligence, act in annually for appropriateness of skillset,
and the Bank reviewed selected CMA
the company’s best interests, and avoid/ experience, tenure independence and
regulations and draft Bank of Uganda
declare any conflicts of interests. diversity of members to ensure that
Corporate Governance Guidelines
the respective boards under Stanbic
To assist the Board in effectively with input provided by the Board of
Uganda operate effectively. Both the
discharging its duties, the Board, through directors. The proposed amendments
Stanbic Uganda Holdings and Stanbic
the board mandate and delegation aimed to bring the regulations and
Bank Boards are comprised of Executive
of authority framework, delegates its guidelines up to speed with the financial
and Non-Executive Directors (NED),
authority to the board committees services industry developments. The
the majority of whom are Independent
and management respectively with USE enacted amended rules related to
NEDs, including the Board Chairpersons.
clearly defined terms of reference the listing, trading, fees, charges, and
The board size is appropriate to facilitate
while ensuring accountability through penalties during the same period.
effective discharge of responsibilities
quarterly reports to the Board and via Beyond the regulatory framework, the and mandates, including at the
digital means in between quarterly Stanbic Uganda governance culture committee level, to ensure productive
meetings. is grounded in the fundamental meetings. This composition provides a
tenets of good corporate governance: balance of power so that no individual or
The day-to-day business and affairs of group dominates discussion or decision
the company have been delegated to the accountability, transparency, ethics,
disclosure, fairness, and social making.
Chief Executive through the delegation
of authority framework, which guides responsibility, which have been
In 2021, the director appointments
management in the exercise of powers embedded through the subsidiary
aimed to enhance board effectiveness by
and provides thresholds for the exercise governance and policy framework.
ensuring a diversity of skills, experience,
of authority. This framework determines thought, and perspective. The directors
the levels of delegation across the Subsidiary Governance have a wealth of knowledge, experience
different levels of management and Framework and Policy and diverse skills in international
is reviewed annually to ensure that banking, risk management, accounting/
it is fit for its purpose. A culture of Framework audit, digital/IT, entrepreneurship and
operating within the authority granted is Across SUHL and its subsidiaries, the leadership of large organisations/
emphasised with oversight on approval highest standards of good corporate regulated entities required to enable
limits performed by the Chief Financial governance have been set, standardised the Board to discharge its duties and
Officer and the Company Secretary. and articulated in the subsidiary responsibilities effectively.
An Executive Committee Mandate is governance framework, board and
in place to ensure operation with the The Non-Executive Directors bring
committee mandates and policies.
delegated authority. their independent judgement to
The subsidiary governance framework
bear on issues of performance and
considers the requirements of the
Delegation of authority at a board delivery of strategy across the different
King IV Code, the Basel Corporate
committee and management level has business units hence constructively
Governance Principles for Banks and
facilitated the utilisation of expertise and challenging the executive directors’
developments in corporate governance.
ensured that critical functional areas delivery of strategy within the risk and
This framework guides the relationship
are adequately resourced and headed governance structure agreed by the
and exercise of power between SUHL
by competent individuals allowing the Board. Gender diversity on the Board
and its subsidiaries, and the powers of
Board to focus on matters reserved for is demonstrated with 67% and 33%
the Board and Management articulated
decision making. Additionally, it has female representation at SBU and SUHL,
in the mandates for each subsidiary
successfully aided succession planning respectively. This diversity in skills
board, hence providing a yardstick for
through the Board, granting Executive and gender has facilitated strategic
effective subsidiary governance.
Management the opportunity to develop innovation and the development
the required technical and leadership Through the subsidiary governance of sustainable solutions for the
skills and experience. framework and board mandate, the organisation.
SUHL board has provided stewardship
Stanbic Uganda continued separating
Regulatory and on the governance of the recently
the board members of Stanbic Uganda
created subsidiaries to the extent that it
governance framework doesn’t contravene any specific industry
Holdings Limited and Stanbic Bank
The SUHL corporate governance Uganda, with only two non-executive
regulations. This includes guiding the
approach is guided by the Capital directors (common directors) double-
subsidiaries’ organisational culture,
Markets Authority (CMA) Corporate hatting by the end of 2021. This also
structure, and strategies while reserving
Governance Guidelines, USE Listing included the separation of the board
certain powers for the holding company.
Rules, 2021, Companies Act 2012, the chairpersons of the two entities. The
This has offered adequate oversight over
Financial Institutions Act (Corporate separation of the boards has enhanced
the subsidiaries while maintaining the
Governance) Regulations, 2005, King IV the independence and objectivity
subsidiary boards and management’s
Report on Corporate Governance (King of the two boards and enabled the
independent legal and governance
IV Code) as adopted by the Standard respective directors to commit adequate
responsibilities.
Bank Group, the articles of association time and focus on conducting their
of each entity and other recognised best The governance framework is supported responsibilities. On the other hand,
practices in Corporate Governance. This by a policy framework comprised of the common/double-hatting directors
comprehensive framework facilitates policies adopted by the subsidiaries as provide a helpful connection between the
adherence to good governance practices relevant and applied according to the boards by facilitating information flow
across SUHL and its subsidiaries. It articles of association of the respective and offering perspective and context
enables the Board to effectively fulfil its subsidiaries. As a practice, the subsidiary to board discussion and decision-
mandate, as evidenced by the numerous governance and policy framework making, therefore, contributing to the
accolades and recognitions received for is adopted by all subsidiaries but effectiveness of the different boards.

The beyond-banking subsidiaries of Mr Damoni’s appointment will be supported initiatives that strengthen the
are still in their infancy stages; sought at the Bank AGM scheduled for pipeline of executive talent and provided
therefore, the boards have been June 3rd, 2022. development opportunities to drive
structured to effectively discharge the quality of talent through selected
their responsibilities by utilising the Succession Planning and executive committee members serving
specialised skills and experience on the boards of the beyond banking
of selected Executive Management Director Recruitment subsidiaries as directors.
members appointed as NEDs in Per the director succession policy,
the short term to provide strategic the Board has adopted a continual Director Induction and
leadership and oversight. This approach approach to reviewing and refreshing
to board structuring continues to be its succession plan to ensure alignment Board Development
reviewed for fitness of purpose as the with the organisation’s strategy and Continuing board development
different businesses mature and in line identify candidates with the skills, remains an area of focus to ensure that
with regulatory guidance. Management experience, and knowledge required to the directors possess the skills and
has, however, put in place a conflict-of- further the vision and strategic direction knowledge necessary to respond to
interest framework to mitigate against of the organisation. The Director changes in the business environment.
any actual or potential conflicts of recruitment process is a formal, rigorous The professional development program
interest that may arise associated with and transparent procedure that involves is tailored to the company’s and
the loss of objectivity required in making both the internal and external vetting of individual board members’ needs.
decisions in the best interests of the candidates. A director pool of suitable It seeks diverse views from internal
subsidiaries. A phased approach has also board candidates is developed, and and external industry experts and
been adopted to facilitate the smooth candidates are selected to fill identified international expertise available within
transition of the beyond-banking boards actual and potential gaps informed Standard Bank Group. The trainings
to independent boards. This approach by the skills matrix, updated annually. were focused on risk culture, ESG
will minimise disruption across the Selected candidates are interviewed cyber risk resilience, leadership, Board
subsidiaries as the respective boards and recommended to the Board for effectiveness, client focus, crisis and
become independent. approval by the Board Nomination, change management, innovation,
and Remuneration Committee and the creativity, and leveraging networks.
Table 1: Board composition of Stanbic
appointments are confirmed at the AGM. Joint board training sessions were
Uganda Holdings and its Subsidiaries
From a bank perspective, the selection, held for topics applied to the different
as of December 31st, 2021
subsidiaries. This facilitated peer-to-peer
learning and sharing of information,
Classification SUHL SBU SPL SBIL SBGS Flyhub which broadened the Directors’
Non-Executive Directors 2 2 2 2 1 1 knowledge of various matters across the
Independent Non-Executive holding company and its subsidiaries.
3 5 - - 1 -
directors
Executive Director 1 2 1 1 1 1
The Board maintained Director
reverse mentorship to enhance board
development, which aims to build the
Board Changes recruitment and recommendation of directors’ capability and equip the Board
(Director Appointments, directors are conducted by an ad-hoc with the in-depth knowledge required
committee of 3 directors comprised to drive critical technical matters. The
Resignations and of the Board Chairman, Regional Chief reverse mentorship sessions continued
Executive and Chief Executive. The
Rotation) Financial Institutions Act requires that
to bridge information gaps in reporting
by providing a platform for the directors
In line with our articles of association directors nominated for appointment to interact with technical and front-
and best practice, the Board has to the bank board are subjected to a facing teams who can be a valuable
adopted a staggered approach to board ‘fit and proper test’ to assess their source of information beyond the
rotation to invigorate its capabilities by competence and capacity to fulfil their boardroom. This has fostered a culture
introducing members with new expertise responsibilities. of agility and willingness to learn and
and perspectives while retaining valuable
In 2021, the succession plan was increased effectiveness in the oversight
knowledge, skills and experience and
pivotal in identifying Prof. Mangheni as role for the Board as a whole, equipping
maintaining continuity. The articles of
a suitable replacement for Mr J. Katto the Board with greater confidence to
association stipulate that one-third of
as board chairman of the Bank and the constructively challenge and make
the non-executive directors are required
appointments of Mr Damoni Kitabire informed decisions.
to retire annually and, if available and
eligible, stand for re-election at the AGM. and Ms Sola David-Borha to the Bank Topics covered in the 2021 board
Directors who have been in office the board based on the identified skills development program included, among
longest are calculated from the last re- required. The Succession planning others: cyber resilience, emerging risks
election or appointment date and must process to appoint additional directors from oil and gas opportunity, ESG,
stand for re-election. to the boards of SUHL and the different Climate change, fintech regulatory
subsidiaries based on the leadership developments, asset, liability and capital
Changes to the Board in 2021 were needs of each of the entities is underway management, anti-money laundering
as follows: Mr Patrick Mweheire was and on track. and counter-terrorism financing. The
appointed to the boards of SUHL and
Through the SUHL Board Nomination directors were also kept abreast of
the Bank as a Non-Executive Director,
and Remuneration Committee, the applicable legislation and regulations,
while Ms Sola David-Borha and Mr
Board monitors the succession planning changes to rules, standards, codes, and
Damoni Kitabire were appointed to the
across the SUHL structure to the extent relevant sector trends.
Bank board. As part of the transitionary
process of separating the SUHL and applicable. It makes the necessary The newly appointed directors
Bank board, Ms Eva G. Kavuma and Prof. recommendations to the respective underwent an induction programme
Patrick Mangheni resigned from the Boards. The Committee has continued which involved meetings with the
SUHL Board, while Mr Japheth Katto to promote diversity and inclusion in Board Chairman, Regional Chief
resigned as the Chairperson and Director the succession plan, resulting in various Executive, Chief Executive and executive
of the Bank. Prof. Patrick Mangheni was initiatives to nurture the next women management to understand the
subsequently appointed as the Bank leaders in the organisation. As part of company operations. The directors also
Board Chairman. Shareholder approval succession planning, the Board has received induction packs that contained

relevant governance information related policies, adoption of integrated as a member. The Committee assists
such as memorandum and articles of risk reporting, creation of Environmental, the Board with discharging its
association, governance framework, Social and Governance (ESG) unit to responsibility to develop and maintain
Board and Committee mandates, focus on ESG matters. effective internal control systems,
organisational structures, significant safeguard the company’s assets
reports and essential legislation and and maintain adequate accounting
policies. The remainder of the induction Following the presentation of the board records. The Committee reviews the
programme was tailored to each new evaluation results at the board meeting, company’s financial position and makes
director’s specific requirements. the Board Chairperson met with all recommendations to the Board on all
directors and the company secretary financial matters, internal financial
Board Evaluation to discuss individual assessments controls and risks relevant to the holding
as a critical step to improving their company. This includes assessing the
The Board continued the practice of
effectiveness. The assessment integrity and effectiveness of accounting,
an annual assessment of the Board,
findings informed the 2022 training financial compliance, and control
committees, individual Non-Executive
and development plan and the annual systems.
directors, Chairpersons, the Chief
Executive, Executive Director, and the review of the Board and committee In discharging its responsibilities during
Company Secretary. Board evaluation composition. The Board is satisfied the year, the Committee’s activities
strengthens board effectiveness by that it fulfilled its responsibilities per its focused not only on the common areas
identifying areas that require a change mandate for the year 2021. of responsibility but also on continued
to steward the company into the future monitoring of the impact of the Covid-19
effectively. The company facilitated the Board Committees pandemic on the financial performance.
process under the board chairman’s The Board delegates some of its The Committee, every quarter, reviewed
guidance. responsibilities to the Board committees the internal audit findings in response
in line with the Board mandate but to the increased inherent risk profile
In line with recommended best practices,
remains ultimately accountable to and reviewed the measures taken to
the focus was on strategy, risk, people,
shareholders. The Board committees ensure the internal financial control
process, and culture in recognition that
allow the Board to divide its work into environment remained resilient despite
governance relates both to process and
manageable sections and facilities the impact of the pandemic on the
behavioural aspects. The evaluation
in-depth, considering specific issues operating environment.
covered a broad range of topics such as:
that require specialised areas of
· Strategy oversight and risk From an interim and financial year-end
expertise. Therefore, the Board can tap
management reporting perspective, the Committee
into the particular skills, knowledge,
reviewed the accounting approach
· Board composition and succession and experience of the directors,
adopted to determine the forward-
planning hence contributing to the Board’s
looking impact of the pandemic on credit
· Board dynamics and stakeholder overall effectiveness. It is also a means
provisions and considered the external
management to enhance board objectivity and
audit’s findings of managements
independent judgement in critical
· Board processes and practices estimation of the effects of the pandemic
areas such as oversight controls,
on the consolidated annual financial
· Effectiveness of the Board, remuneration, people and culture, and
statements. The Committee also
committees, and individual Directors. director nomination.
reviewed the quality and integrity of
The overall average rating was excellent. Each of the committees has a the financial statements. It satisfied
The areas of high satisfaction included: mandate, approved by the Board and itself that the appropriate accounting
the Board’s understanding of the reviewed annually for relevance and principles had been adopted per the
strategy, its duties and responsibilities, appropriateness, considering changes International Financial Reporting
the depth and diversity of the skills in the legal, regulatory framework, Standards and that the disclosures in
and experience of the Board and its governance best practices and trends the financial statements were clear,
relationship with management and the in the business environment. These complete and well contextualised as
continuous director development. The mandates set out roles, responsibilities, per the provisions of the Financial
directors were also satisfied that the the scope of authority, composition, and Institutions Act and the Uganda
Board had the appropriate structures procedures. Securities Exchange Limited. This
and processes to respond to the Committee closely worked with
The committees meet at least once the Head of finance to consider the
challenges arising from the covid-19 every quarter to consider, discuss,
pandemic. robustness of internal financial and
and challenge management reports. operational controls and systems in
Identified areas of improvement At each board meeting, the committee light of the pandemic, including internal
included: the need for more focus on chairpersons then report to the controls over financial reporting to
effective management of emerging Board on committee activities with ensure the integrity of the qualitative
risks, organisational culture and recommendations to consider and and quantitative financial information
succession planning. Creation of approve where required. presented in the financial statements.
a Board Engineering Committee
to drive the digital transformation
A. Stanbic Uganda Holdings The Committee oversees the
journey and enhance internal Limited relationship between the External
controls and timely consequence Due to the non-operating nature Auditor and the rest of the company,
management. The director’s findings of the holding company, the SUHL including annual reporting to the
and recommendations inform the board Board operates with only two board Board, recommendations to the Board
evaluation action plan, which the Board committees: The Audit and Risk on the appointment/re-appointment
reviews quarterly to monitor progress in Committee and the Board Nomination of external auditors, annually
addressing the identified areas. and Remuneration Committee, in line assessing and reporting to the Board
with the Capital Markets Authority on the qualification, expertise and
Areas arising from the previous Corporate Governance Guidelines. independence of the external auditors
evaluation that were resolved included: and the effectiveness of the audit
alignment of the strategy with the Board Audit and Risk Committee process with a recommendation on
future-ready transformation ready, The Committee is comprised solely of whether to propose to shareholders that
the introduction of quarterly NED independent Non- Executive Directors. the external auditors be re-appointed
closed door sessions, enhancement To safeguard the independence of
of the board development program on the Audit Committee chairperson, he
emerging matters, review of conduct does not sit on any other committee

Nomination and Remuneration the Committee considered management The Committee is responsible for the
Committee. updates and reports on events that were internal control framework, which
expected to impact the company’s risk combines the Bank’s three lines of
This Committee was established at the
profile and management’s mitigating defence model with the corporate
end of 2020 and held its first meeting
actions, which guided the Committee’s governance framework. As part of the
in Q1 2021. It comprises of mainly
decision-making process. Key risks three lines of defence, the audit, risk and
independent Non- Executive Directors
considered by the Committee included: compliance functions provide reports
and is chaired by the Board Chairperson.
strategic, operational, credit, liquidity, for review and discussion as part of
The Committee is responsible for
cybersecurity, and reputational risks. monitoring effectiveness. More detail
proposing new nominees to the Board,
on the approach to risk management
reviewing the board composition The BRMC recommended that the is provided in the risk and capital
and recommending to the Board for Board approve the risk appetite management section on page 46.
approval the remuneration of non- statement, ensuring that the risks the
executive directors and executive/ Bank is willing to take are aligned to the In discharging its responsibilities as
senior management. Its mandate Bank’s strategy and consistent with the set out in the Committee’s terms of
applies to the SUHL and all subsidiaries fiduciary responsibility to the different reference, the Committee’s activities
to the extent that it is aligned with any stakeholders, ensuring transparency and in 2021 did not only focus on common
subsidiary-specific regulatory/statutory consistency. areas of responsibility but also
requirements. the continued focus on areas that
The Board Risk Management and Audit emerged as a result of the covid-19
In discharging its responsibilities in committees work in partnership with pandemic, which included: A review
the committees’ terms of reference, an expected overlap in duties; however, of measures taken to ensure the
key focus areas of the Committee the committee chairs work closely to internal financial control environment
for the year under review included avoid duplication. The Committee, like remained resilient, approval of internal
providing oversight in the selection and the Audit Committee, is reliant on the audit plan, the quarterly review of the
nomination of the Chief Executives for three lines of the defence model for enhanced combined assurance aimed
SBG Securities and Flyhub Uganda. assurance of effective risk management. at strengthening the risk and control
Reviewing the fees paid to non-executive The first/front line functions determine oversight of the business processes. The
directors to ensure it was proportional and advise on risk impact on clients, Committee also reviewed the internal
to director expertise, required time operational processes and strategies, audit reports related to satisfactory and
commitments and responsibilities. existing and/possible vulnerabilities, unsatisfactory audits completed, the
and threats. The second line, risk and status of outstanding audit items and,
B. Stanbic Bank compliance function, ensures policies
In the reporting year, the Bank Board where necessary, the respective heads of
and standards are in place to meet the unit were invited to attend meetings
comprised five standing committees: regulatory requirements and effectively
Audit, Risk management, Credit, People to present an update on the closure of
operate first-line processes and controls. overdue audit findings.
and Culture (formerly Human capital) The internal audit function and external
and the Asset and liability committee. auditors are the third lines that assess As part of the interim and financial year-
Following the different board changes the overall effectiveness of the activities end reporting process, the Committee
during the year, the composition of the of the other two lines in managing and reviewed the accounting approach
board committees was reviewed based mitigating risks. adopted to determine the forward-
on the skills and expertise of the various looking impact of the pandemic from
directors. The Committee is comprised of a an IFRS 9 perspective on the Bank’s
majority of independent Non-Executive credit provisions and considered the
Board Risk and Management Directors. Attendees of the BRMC
Committee results of the external audit’s review of
meetings include The Chief Risk Officer, managements estimation of the impact
The Board has ultimate responsibility Head Compliance, Head Legal and Chief of covid-19 on the Bank’s annual financial
for risk management. The Board Risk Information Officer. The Committee statements.
Management Committee (BRMC) complied with its mandate for the year
assists the Board in discharging this under review and its legal and regulatory The Committee also ensures effective
responsibility by ensuring that the Banks responsibilities. A comprehensive risk communication between the Board,
risk management system is robust, management report is provided on page internal auditors, external auditors,
reliable and constantly up to date to 46, which sets out the risk and capital management, and regulators. The
identify emerging and principal risks. The management framework. Committee has a constructive
Committee provides independent and relationship with the Head Internal Audit,
objective oversight of risk management Board Audit Committee who reports directly to this Committee
and makes relevant recommendations The Committee is comprised of a which ensures the independence of
for the Board’s improvement. BRMC majority of Independent Non-Executive the Internal Audit function. The Head
reviews and assesses the integrity of Directors. The Audit Committee Internal Audit compiles quarterly reports
the risk control systems and ensures Chairperson does not sit on any other on gaps and weaknesses in controls
that risk policies and strategies are committee as a member to safeguard that have been identified, including
effectively-identified, managed, and her independence; however, she attends financial controls. The Head Internal
monitored to contribute to a climate of the BRMC meetings as an observer for Audit interacts with the Committee
discipline and control, which will reduce a holistic understanding of the different Chairperson outside of the meetings
the risks faced by the Bank in all areas of risks faced by the Bank. to discuss audit matters and briefs the
operation. Chairperson on critical issues ahead of
The Committee assists the Board with Committee meetings.
Consistent with the above principles, discharging its responsibility to develop
the Committee continued to play a and maintain effective internal control Following the Financial Institutions Act
significant role in assessing the impact systems, safeguard the company’s provisions, the Committee recommends
of the pandemic and the emerging assets and maintain adequate for approval the appointment of external
risks to the Banks’ financial and non- accounting records. The Committee auditors taking into consideration the
financial risk profile. Risk reporting to reviews the Bank’s financial position and auditor firm profile and the quality of
the Board was enhanced by adopting makes recommendations to the Board expertise on core aspects of its business
an integrated risk reporting approach, on all financial matters, internal financial and overseeing their relationship with
which enabled the Committee to controls, fraud, and IT risks relevant the shareholders, including annual
satisfy itself with the adequacy, to financial reporting. This includes financial reporting.
robustness, and resilience of the risk assessing the integrity and effectiveness
of accounting, financial compliance, and This Committee considers whether
management frameworks and the
control systems. internal financial and operational
business continuity plans in place.
controls and systems are robust,
Every quarter and in between meetings,

including internal control over financial on expected credit impairment, credit contributing to succession planning
reporting to ensure the integrity of risk and capital and liquidity metrics. across the Bank.
qualitative and quantitative financial The Committee reviewed and approved
information. The Chief Financial the approach used to offer credit relief The Committee supported the Board
Officer is ultimately responsible for loan restructures to clients whose in exercising oversight on the steps
implementing and maintaining internal businesses were most impacted by the taken to foster a culture of ethics
financial controls. The Board relies on pandemic and monitored performing and appropriate conduct and held
this Committee to satisfy itself with and non-performing loan portfolios. The management accountable in situations
the accuracy and integrity of financial Committee also reviewed the business of conduct risk lapses.
information, including the annual models and credit risk appetite to The Committee comprises solely of Non-
audited and half year unaudited financial reflect the changes in the operating Executive Directors. The Chief Executive
accounts. environment and closely monitored and Head of People and Culture
credit performance across different attend the meetings by invitation. The
The Audit Committee meetings are sectors to identify areas of potential
attended by the Head Internal Audit, Committee complied with its mandate
distress and mitigate identified credit for the year under review and its legal
Chief Financial Officer, Chief Executive risks.
and External Auditors. The other and regulatory responsibilities. Four
Executive and Non-Executive Directors Further detail on the management scheduled board calendar meetings
and members of executive management of credit risk is set out in the were held during the year; however
participate by invitation. comprehensive risk management report additional special meetings were held
on page 46. to conduct interviews for the executive
The Audit Committee complied management positions.
with its mandate in the year under Board People and Culture
review, as well as its legal and Further details on the people and
Committee
regulatory responsibilities, which cultural practices are contained in the
The Committee is responsible for the sustainability report on page 60.
among others, included assessment
people and culture function and related
and recommendation to the Board Board Asset Liability Management
policies. The Committee ensures that
for approval; the re-appointment of Committee
the people and culture strategy aligns
Pricewaterhouse Coopers as External
with the overall strategy by ensuring The Committee is responsible for
Auditors, including negotiating fees
that talent management plans and the board capital and asset-liability
payable, approval and monitoring
succession planning strategies are management function. It establishes
progress of the 2021 Internal audit plan
robust and up to date. guidelines on the Bank’s tolerance for
and assessment of the performance of
the Head Internal Audit. The Committee The Committee oversees the risk and expectations from investments,
also reviewed and recommended to recruitment and compensation of including, among others, limits on loan to
the Board for approval the interim executive and senior management deposit ratio and capital ratio and limits
unaudited and final audited financial and other key personnel to ensure on maximum and minimum maturities
statements per the provisions of the that compensation is consistent with for newly acquired and existing
Financial Institutions Act. Four scheduled the company’s culture, objectives, categories of assets. The Committee also
meetings were held in the year with total strategy and control environment. reviews and approves the bank policies,
attendance by the committee members. The Committee also ensures that the procedures and holding portfolio to
company develops and maintains ensure that goals for diversification,
Board Credit Committee compensation policies that will attract credit quality, profitability, liquidity,
The role of this Committee is to ensure and retain the highest quality executives community investment, pledging
that effective frameworks for credit and senior managers and reward them requirements and regulatory compliance
governance are in place to provide for for their progress and enhancement of are met and sets the guidelines on the
adequate management, measurement, shareholder value. capital position of the Bank and the
monitoring and control of credit risk, capital management plans undertaken to
including country risk. It exercises The primary focus of the Committee ensure that capital levels are maintained
oversight on behalf of the Board on all throughout 2021 was oversight on following the risk appetite, business
matters incidental to the company’s implementing the organisational strategy and regulatory requirements.
credit and loan approvals, applications, restructure changes that created
new client segments under the new The Committee’s activities in 2021 were
and advances. focused on ensuring that the Bank’s
operating model. This included filling
The Committee has the authority to the vacant executive management capital and liquidity risk management
approve all in house credit applications positions to enable the shift to a frameworks were strengthened to
of directors, senior management and platform organisation. The Committee mitigate the increased liquidity and
commercial credit applications up to every quarter reviewed, constructively capital risks associated with the
the Bank’s in-house lending limits. All challenged, and provided guidance on impact of the pandemic, the transition
commercial credits over the Bank in implementing the change management to Basel II capital accord and from
house limit are presented to the full strategy from a people and culture LIBOR. The Committee, every quarter,
Board of Directors for approval. The perspective. monitored and evaluated the Bank’s
Committee reviews the strategies liquidity and capital adequacy positions
developed to achieve the credit and The Committee continued to consider using scenario forecasts to ensure
lending goals of the Bank and approves the appropriateness of Management’s compliance with both internal and
the Bank credit policies taking into Covid-19 employee wellness plans. It regulatory ratios and, where required,
account charges in applicable laws ensured that sufficient safety measures made recommendations to the Board
or regulations or as warranted by the and support were provided to employees on planned foreign currency funding
changing economic and/or banking working at the premises and at home initiatives. The Committee also reviewed
conditions. to ensure that the business continuity the internal capital and Liquidity
needs were met. adequacy assessment processes.
In discharging its responsibilities as
set out in the Committee’s terms of The Committee supported employee- The Committee comprises of both Non-
reference, the Committee’s activities in focused engagements such as staff Executive and Executive Directors and
2021 focused on continued oversight townhalls, Leadership Speaker complied with its mandate for the year
of the impact of the covid-19 pandemic series and knowledge café series, under review and its legal and regulatory
on the credit portfolio, which involved: and online courses intended to responsibilities. Three meetings were
Review of forward-looking assessments enhance talent growth in alignment held during the year.
of the macroeconomic outlook in the with the organisational changes and
context of the effects of the pandemic professionally develop the employees
to take up more leadership positions

Board Meetings Management was required, where previous meeting are approved and
necessary, to submit additional signed as an accurate record of the
In 2021, most of the quarterly board information to the Board that informed proceedings, while the minutes of the
meetings were conducted in a hybrid and guided the decision-making process. different subsidiaries are noted. A minute
manner following the easing of the book is maintained and safely stored
Covid-19 travel restrictions. The Also included in the agenda of the both physically and virtually.
Board, however, continued to adhere holding company meetings were
to the Covid-19 standard operating reports on key activities of the different The quality of discussions is sufficient to
procedures to ensure the safety of the subsidiaries during the quarter evaluate and interrogate Management
board members and employees. Secure presented by the Chief Executive. The thinking on the company’s strategy,
electronic meeting platforms were used banking subsidiary’s Chief Executive is ensuring long-term success and
to host the meetings and access the a permanent attendee of the meetings, sustainability. Board decisions are
board papers. In addition to the quarterly while the Chief Executives of the beyond reached by consensus following
meetings, two special meetings were subsidiaries are periodically invited discussion and debate. If the Board
held to discuss and approve the changes to provide updates on ongoing vital requires further consultation by
in board leadership and strategic projects. This approach to subsidiary management, decisions are deferred.
direction. At a committee level, the reporting has facilitated information Management is kept accountable
People and Culture Committee met more flow and adequate oversight of the for agreed actions arising from the
regularly to conduct interviews to fill subsidiaries by the holding company. meetings through an action log updated
critical executive management positions with progress discussed at the board
as part of the organisational structure meetings.
changes to align with the future-ready In line with best practice, management
transformation strategy. The Board Chairperson and
reports are circulated to the directors Chairpersons at the committee level
To ensure that the Board continued at least five days before the scheduled create a boardroom climate that fosters
to focus on matters that required its meeting to facilitate director discussion through encouraging open
attention, the agendas for the Board preparedness. To achieve clarity and debates, which allow the directors to
and committee meetings were quarterly enhance board reporting, management challenge assumptions constructively.
reviewed while still ensuring that must submit concise and focused Attendance of meetings remained very
the Board kept sight of the longer- reports on the required decisions. This good with the well-reasoned absence of
term issues that would impact the enables the directors to internalise directors. This ensured that the quorum
company. Standing items included the main items for interrogation and was met and that the discussions and
in the agenda included: Updates on ensures that the board decisions remain decisions were of high quality.
the implementation of the strategy, strategic and not operational. At the
ESG framework and emerging risks. board meetings, the minutes of the
Table 1: Stanbic Uganda Holdings Limited Board and Committee Meetings and attendance in 2021
Q1 Q2 Q3 Q4 Strategy
February August October December
10th & 11th May 25th & 26th 03rd & 04th 27th 4th
Name of Director BARC BNRC Board BARC BNRC Board BARC Board Board Board
Japheth B. Katto
N/A A A N/A ✓ ✓ N/A ✓ ✓ ✓
(Chairman)
Patrick Mweheire N/A ✓ N/A ✓ ✓ N/A ✓ ✓ ✓
Patrick J. Mangheni ✓ ✓ N/A N/A N/A N/A N/A N/A N/A
Samuel Zimbe ✓ N/A ✓ ✓ N/A ✓ ✓ ✓ ✓ ✓
Sola David-Borha N/A N/A ✓ N/A N/A ✓ N/A ✓ ✓ ✓
Agnes Asiimwe Konde ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Andrew Mashanda ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Attendance A = Apology NA = Not Applicable BARC-Board Audit & Risk Committee BNRC – Board Nomination and
Remuneration Committee

Table 2: Stanbic Bank Uganda Limited Board and Committee meetings and attendance in 2021
Q1 Q2
March
February 10th & May
Name of Director 09th & 10th 19th 25th & 26th
Special
BPCC BAC BCC BRMC BOARD meetings BPCC BAC BCC BRMC BALCO Board
Japheth B. Katto N/A N/A N/A N/A ✓ ✓ N/A N/A N/A N/A N/A N/A
Patrick Mweheire ✓ N/A ✓ ✓ ✓ ✓ ✓ N/A ✓ ✓ ✓ ✓
Sola David-Borha N/A N/A N/A N/A ✓ ✓ N/A N/A N/A N/A N/A ✓
Patrick J. Mangheni N/A ✓ N/A ✓ ✓ ✓ N/A N/A N/A N/A N/A ✓
Eva G. Kavuma ✓ ✓ N/A N/A ✓ ✓ ✓ ✓ N/A N/A ✓ ✓
Josepha T. Ndamira N/A ✓ N/A ✓ ✓ ✓ N/A ✓ N/A ✓ N/A ✓
Elizabeth K. Ntege ✓ N/A ✓ ✓ ✓ ✓ ✓ N/A ✓ ✓ N/A ✓
Anne Juuko N/A ✓ ✓ ✓ ✓ ✓ N/A ✓ ✓ ✓ ✓ ✓
Emma Mugisha N/A N/A N/A ✓ ✓ ✓ N/A N/A N/A ✓ ✓ ✓
Q3 Q4
Board
Strategy
Retreat
August October December
03rd & 04th 26th & 27th 4th
BPCC BAC BCC BRMC BALCO Board BPCC BAC BCC BRMC BALCO Board
Patrick J. Mangheni N/A N/A N/A N/A N/A ✓ N/A N/A N/A N/A N/A ✓ ✓
(Chairman)
Patrick Mweheire ✓ N/A ✓ N/A ✓ ✓ ✓ N/A ✓ N/A ✓ ✓ ✓
Sola David-Borha N/A N/A N/A ✓ ✓ ✓ N/A N/A N/A ✓ ✓ ✓ ✓
Eva G. Kavuma ✓ ✓ N/A N/A N/A ✓ ✓ ✓ N/A N/A N/A ✓ ✓
Josepha T. Ndamira N/A ✓ N/A ✓ N/A ✓ N/A ✓ N/A ✓ N/A ✓ ✓
Elizabeth K. Ntege ✓ N/A ✓ ✓ N/A ✓ ✓ N/A ✓ ✓ N/A ✓ ✓
Anne Juuko ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Emma Mugisha N/A N/A N/A ✓ ✓ ✓ N/A N/A N/A ✓ ✓ ✓ ✓
Damoni Kitabire N/A ✓ N/A ✓ N/A ✓ N/A ✓ N/A ✓ N/A ✓ ✓
= Attendance: A = Apology: NA = Not Applicable: BAC-Board Audit Committee BRMC-Board Risk Management Com-
mittee BPCC-Board People and Capital Committee BCC-Board Credit Committee BALCO- Board Asset and Liability
Management Committee
Stakeholder centricity establishment of a sustainability unit to planted across the country in a bid to
focus on the development of the long redevelop Uganda’s receding forest cover
Our approach to corporate governance term SEE impact framework, which in partnership with National Environment
enables integrated thinking and decision would be embedded into the business Management Authority (NEMA) and
making that balances the achievement of strategy and decision-making processes. various private sector players.
our strategic priorities and reconciles the The sustainability report on page 60.
interests of the company, stakeholders highlights the significant interventions The Board also visited the Stanbic
and the society in which we operate to in line with our commitment to our SEE Business Incubator model farm in the
create and maintain sustainable shared and Environment, Social and Governance Bunyoro region, built in partnership with
value. As an integral part of the society (ESG) priorities. Pure Grow Africa to train farmers on
on which we depend for our licence improving the standards and quality of
to operate, we recognise our duty as The offering of support to communities foodstuff supplied to companies in the oil
responsible corporate citizens to act in worst hit by the pandemic and ensuring and oil gas sector. The visit allowed the
a manner that benefits the community. the safety of employees remained a Board to experience firsthand how the
Therefore, the Board has adopted an priority of the Board in 2021 while still different subsidiaries partner with various
inclusive stakeholder approach that staying within the three pillars that drive stakeholders in their spheres to create
balances the different stakeholders’ our Corporate Social and Investment sustainable value.
needs, interests, and expectations. (CSI) initiatives in education, health
and environmental conservation The different initiatives are informed by
The Board, throughout the year, encompassed in our SEE strategy. The the United Nations global sustainable
remained committed to creating a Board actively took part in these different Development Goals and focus on the
sustainable path that would benefit initiatives which, included among others: following goals: No poverty, quality
both the current and future generations our flagship CSI programme, the Stanbic education, affordable and clean energy,
by taking significant steps in delivering National Schools Championship, planting decent work and economic growth,
our Social, Economic and Environment of trees with at least 150,000 trees industry innovation and infrastructure,
(SEE) strategy. The Board approved the climate action and partnership.

The Board also visited the

Stanbic Business Incubator
model farm in the Bunyoro
region, built in partnership
with Pure Grow Africa to
train farmers on improving
the standards and quality of
foodstuff supplied to companies
in the oil and oil gas sector.
The visit allowed the Board to
experience firsthand how the
different subsidiaries partner
with various stakeholders
in their spheres to create
sustainable value.
at ensuring disclosure
and transparency of the
company’s activities
and performance
Dividend
Following the outbreak
of the Covid-19
pandemic, the Bank
of Uganda in April
2020 announced
enhanced guidelines
A sequence of investor briefings was for purposes of capital
held before the AGM following the preservation applicable to all Supervised
Relationship with shareholders 2021 audited financial statements Financial Institutions, including our
An essential part of our approach to announcement. The Chief Executive and Bank subsidiary. These are related
governing our stakeholder relationships Senior Management provided a deep to discretionary payments, including
is to ensure that our shareholder views dive into the company’s performance dividends. Therefore, the Bank’s
are heard and fully considered. Stanbic and strategic outlook for the following proposed dividends for 2020, which form
Uganda continued to do this by holding year. Participants were also allowed the pool of dividends for payment to the
the 2021 Annual General Meeting to share their views on the company’s Holding company shareholders, remain
(AGM) virtually in light of the continued performance. under review by BOU, which will inform
restrictions on public gatherings
As part of the continuous shareholder the 2021 dividend recommendation
The virtual AGM ensured continued engagement, the Board participated of the directors to the company’s
timely accountability and shareholder in the 2021 World Investor Week in shareholders.
engagement in times of uncertainty, with partnership with the Uganda Securities Shareholders who still hold shares
over 2,000 shareholders participating. Exchange to promote investor education in hard copy certificate form are
In the lead-up to the AGM, the company and protection. The week-long campaign encouraged to migrate to the USE
proactively conducted shareholder was climaxed with a panel discussion electronic system and encouraged to
data clean-up exercises to validate and on the topic and the ringing of the USE notify the Company’s Share Registrars,
update shareholder details to support trading bell for financial literacy. The C&R, in writing of any change in their
full shareholder participation and event was held virtually and attended postal or email addresses or Bank
resolve any unpaid dividend claims. by our shareholders and different account details to keep the share
The AGM enabled the shareholders to stakeholders in the capital markets. register current, as well as help, claim
make critical decisions that ensured the
The different shareholder engagements outstanding dividend payments. Details
company’s governance, management,
highlighted above facilitated consistent of the share registrar are included in the
and operations continued to be
interaction and communication with company information on page 222.
implemented.
shareholders throughout the year aimed
Board participates in world investor week.

Access to information and

resources SUHL and its subsidiaries have strong
Executive Management and the Board whistleblowing policies and procedures in
interact regularly. Executive Management place. Staff are periodically trained on ethics
is invited to attend Board meetings where and conduct matters as part of induction
necessary. In addition, directors have and ongoing development. Staff are tested
unrestricted access to management and on knowledge and required to undertake
information required to carry out their roles further tests should they fail. The duties
and responsibilities. This includes external and responsibilities of all staff towards an
legal and other professional advice at the ethical culture, responsibility to whistleblow,
company’s expense where necessary. The assurance of protection and the hotlines
directors also have unlimited access to available are well publicised on the intranet
the advice and services of the Company and by the internal communications by the
Secretary, who assists in providing any compliance teams.
information or documentation that may
be required to facilitate the discharge of Ethical incidents are reported via the
their duties and responsibilities. A resource ethics and fraud hotlines, line managers,
centre containing comprehensive reference people and culture department, and risk
materials is also made available to board and compliance departments. Reported
As part of the members incidents for the period related to fraud and
continuous people and culture related issues which
Digital Technology were well managed as part of the company’s
shareholder risk management process. The company’s
Aligned to the company’s digital strategy,
policies on conduct related matters and
engagement, the the Board has adopted online processes
disciplinary measures are under review
in its operations through the Diligent
Board participated Board software, through which reports are
to prevent re-occurrences. The Board
focuses on driving risk and conducting
in the 2021 World circulated and decisions are made using
culture change to ensure alignment with
the highest grade of security encryption.
the principles and values espoused in the
Investor Week in This has enabled the Board to operate
code of ethics and our commitment to
effectively by exploiting available digital
partnership with the solutions and furthered the corporate
doing the right business the right way. The
management risk and conduct reporting
Uganda Securities Social Environment Economic (SEE) goals
parameters have been reviewed and
on waste management to safeguard the
enhanced to facilitate effective oversight.
Exchange to environment. Online circulation of board
papers is an example of reduced paper
promote investor use, and this culture, as set at the top, Conflict of interest
education and has cascaded to operations across the The subsidiary framework and board
mandate enumerate in detail the
company. This has contributed to a drop in
protection. The the paper consumed. management of conflict-of-interest
procedure, which includes: a standard
week-long campaign Ethics and Organisational agenda item for disclosure of conflicts of
was climaxed with Integrity
interest at all board meetings, requirements
to declare any actual or potential conflict
a panel discussion The Board is responsible for ensuring that of interest before an appointment, as and
the conduct of the Board, Management when it arises and annual declaration of
on the topic and and employees is aligned with the company interests.
the ringing of the values and code of ethics. The Board
All declared interests are recorded in a
exercises oversight of the steps taken by
USE trading bell for executive management to foster a culture of
register of interests maintained by the
company secretary. Directors are required
ethics and appropriate conduct. The code of
financial literacy. ethics is designed to empower employees
not to place themselves in positions
that would interfere with the exercise
and enable effective decision making at all
of their object judgement or prevent
levels of the business according to defined
them from acting in the best interest of
ethical principles. It also aims to ensure
Stanbic Uganda. Directors are excluded
that, as a significant player in the financial
from participation in discussions and
services industry, we adhere to the highest
decisions on any matter they are actually
standards of responsible business practice
or potentially conflicted. In exceptional
as we interact with our stakeholders. The
circumstances, where a conflicted director
code interprets and defines Standard Bank
is the sole expert on the subject under
Group and the company’s values in greater
discussion, the Board may allow for the
detail and provides value-based decision-
presentation of their expert input; however,
making principles to guide our conduct.
the director will not participate in the
It is aligned with other company policies
deliberation and voting on the matter.
and procedures and supports the relevant
Direct and indirect interests include but
industry regulations and laws.
are not limited to outside directorships,
The code specifies acceptable and other fiduciary positions, investments or
unacceptable practices and assists in shareholdings in other companies. Should
making ethical infringement easy to a declared conflict be to such an extent
identify. It also promotes awareness of that it interferes with the director’s ability
and sensitivity to ethical issues. The Chief to fulfil their fiduciary duties or cause
Executive is ultimately responsible for its reputational damage to Stanbic Uganda,
implementation. the director may be required to resign.
The Board was satisfied that the directors
allocated sufficient time to discharge their
responsibilities effectively during the year.

Dealing in Securities management and monitors this through Company Secretary

the compliance and risk function. The
The personal account trading policy and compliance function and governance The Governance function, headed by the
an insider trading policy are frequently standards are subject to review by an Company Secretary, is a shared service
reviewed to prohibit employees and internal audit. between SUHL and all its subsidiaries.
directors from trading in securities This has facilitated information flow,
during closed periods, which are in The company, throughout 2021, standardising corporate governance
effect from June 1st to the publication of continued to nurture a strong culture practices, and integrated processes
the interim results and from December of governance and responsible risk within the holding company structure
1st to the publication of results. During management in line with Standard Bank per the subsidiary governance
other periods, where employees Group’s risk appetite and governance framework. The company secretary
have price-sensitive information, framework. The company constantly ensures that the respective Boards
closed periods are imposed on these monitors its practices to ensure that remain mindful of their duties and
employees. Compliance with the policies we are well suited for it and served responsibilities. In addition to guiding
is monitored on an ongoing basis. to enhance business and community the Board on discharging its duties, the
objectives. In the financial year 2020, Company secretary keeps the Board
Codes and regulations SUHL and all its subsidiaries complied abreast of relevant changes in legislation
with all legislation, regulations and codes and governance best practices and
The holding company operates in a
of best practice. ensures that the directors have full and
highly regulated environment as a
timely access to pertinent information.
listed entity. The regulatory scope
has further been widened with the Going Concern The company secretary also oversees
the director’s continuous professional
setup of the non-banking subsidiaries The Directors have sufficient reason to
development and induction of new
that report to various regulatory believe that the company has adequate
directors to enable the Board to function
bodies. Compliance with all applicable resources to continue operating as a
effectively. All directors have access to
legislation, regulations, standards, going concern.
the services of the company secretary.
codes and policies is integral to the
company’s culture. The Board delegates
responsibility for compliance to

Remuneration Report
Where considered appropriate, the Board initiates modifications to
remuneration designs to ensure that regulatory requirements are met and
that the remuneration policies are progressive, consistent with, and promote
effective risk management.
Remuneration Philosophy to participate. Participation rights under
the EGS and share options under the
and Policy Benefits GSIS are granted to qualifying employees.
Stanbic Uganda Holdings Limited and its Benefits are provided in line with market Grants of rights or options are typically
subsidiaries are committed to attracting practice and regulatory requirements. made annually as part of the annual
and retaining world-class people. The company provides medical cover and reward
Consequently, we work to develop a depth death benefits for staff and dependents. review: however, grants are also made
and calibre of human resource capable In addition, retirement benefits are to new employees on appointment or as
of delivering sustainable growth across provided on a deferred contribution basis ad hoc awards for retention purposes.
multiple geographies, products and linked to fixed pay. EGS and GSIS long term incentives are
regulatory regimes, and always within our awarded to key talent and are motivated
by an individual’s current performance
agreed risk tolerance. Variable Pay and future potential. No awards are
At the heart of this commitment lies Annual Incentive made to Non- Executive Directors. No
the value we place on our people. participation rights or options are issued
Annual incentives are provided to ensure
Therefore, effective management and at a pricing discount, nor can they be
appropriate reward for performance.
remuneration of our talent is a core re-priced, except as provided for in terms
Incentive pools are allocated to teams
competency of the company. As an of the scheme in relation to a reduction or
shaped by a combination of the overall
integral part of growing and fortifying re-organisation of the issued share capital
company and team performance
our human capital skills, the Board of Standard Bank Group.
within the set risk tolerance levels.
continually reviews the remuneration Individual awards are based on personal
philosophies, structures and practices. The table below sets out the general
performance, both financial and non-
In determining the remuneration of vesting conditions of the various options
financial. In some cases, a portion of the
employees, the Board reviews market or participating rights issued. The
annual incentive above a certain threshold
and competitive data and considers the Standard Bank Group Directors have the
is deferred.
company’s performance against financial discretion to vary the vesting
objectives and individual performance. A Vesting
key step in this development was taken Deferral Schemes Vesting Year Cumulative Expiry
by the Committee and Management to Category Vesting %
seek benchmarking guidance from the
Deferred Bonus Scheme
A 3, 4, 5 50, 75, 100 10 years
Group and Global Remuneration Services (DBS) B 5, 6, 7 50, 75, 100 10 years
(GRS). Certain specialist departments, The company has implemented a DBS to C 2, 3, 4 50, 75, 100 10 years
for example, people and culture and compulsorily defer a portion of incentives
finance, provide supporting information over a minimum threshold for some
and documentation relating to matters senior managers and executives. This
Terms of Employment
considered by the Board improves the alignment of shareholder Retention agreements
and management interests and enables
Retention agreements are only entered
Structure of remuneration clawback under certain conditions,
into in exceptional circumstances, and
supporting risk management. All
for managerial and employees who are awarded an incentive
retention payments have to be repaid
should the individual concerned leave
general employees over a certain threshold are subject
within a stipulated period.
to a mandatory deferral of a certain
Terms of Service percentage of their bonus into the DBS
for up to 42 months. To enhance the Severance payments
The terms and conditions of employment
of all managers and general employees retention component of Severance payments are determined by
are guided by local legislation and the scheme, additional increments of legislation, market practice and, where
are aligned to Standard Bank Group the deferred bonus become payable at applicable, agreement with recognised
practices. Notice periods are stipulated by vesting and one year thereafter. trade unions to employee forums. It is not
legislation and can go up to three months. the practice of Stanbic Uganda to make
substantial severance awards.
Claw-back Provision
Structure of the A claw-back provision was introduced on
the deferred remuneration plan. A key
Restrictive Covenants
Remuneration provision in the plans is that unvested Some executive employment contracts
Fixed Pay awards may be reduced or forfeited, in include restrictive covenants on the
whole or in part, at the Board’s discretion, poaching of employees or customers.
Fixed pay is intended to attract and retain No other restrictions are included in
subject to prescribed conditions.
employees by ensuring competitive contracts at present.
positioning in the local market and in
some instances, globally. Fixed pay is Long Term Incentives Sign on Payments
normally reviewed annually, in the first
quarter of the year, and market data is Share Incentive Schemes In attracting key employees, it may be
used for benchmarking this. In the longer The Standard Bank Group (parent necessary to compensate for the loss
term, the Board aims to move from a company) runs a Standard Bank Equity of unvested awards with their prior
fixed salary and benefits to a ‘cost-to- Growth Scheme (EGS) and Group Share employer. In such cases, we would
company’ philosophy whereby a cash Incentive Scheme (GSIS) to which certain consider compensating such new
sum is delivered from which all benefits employees of Stanbic Uganda are eligible employees in the appropriate share
are deducted.

incentive scheme or in certain situations; Non-Executive Directors Fees

a cash sign-on payment may be made
on joining, subject to repayment should Remuneration and Terms Non-Executive Directors receive a fee for
their service on the Board and a meeting
the employee leave the company within of Engagement attendance fee for Board committee
a certain period.
Terms of Service meetings. Fees are paid quarterly
in arrears. There are no contractual
Directors’ remuneration All Non-Executive Directors are provided arrangements for compensation for loss
with a letter of appointment setting out of office. Non- Executive Directors do not
Remuneration of Executive the terms of engagement. Shareholders receive shortterm incentives, nor do they
Directors appoint directors at the AGM. Between participate in any long-term incentive
AGMs, interim appointments may be schemes. The Board Nomination and
The remuneration packages and
made by the Board. These interim Remuneration Committee reviews the
longterm incentives for Executive
appointees are required to retire at fees paid to Non-Executive Directors
Directors are determined along with
the following AGM, where they then annually and makes recommendations
other employees on the same basis and
offer themselves for re-election by to the Board for consideration. In
using the same qualifying criteria. The
shareholders. In addition, one -third of determining the remuneration of the
compensation of the Chief Executive
Non-Executive Directors are required Non- Executive Directors, the Board
is subject to an annual review process
to retire at each AGM and may offer considers the extent and nature of
that includes the Board. The disclosure
themselves for re-election. If supported their responsibilities and reviews of
of the remuneration of the highest-paid
by the Board, the Board then proposes comparative remuneration offered by
employees who are not Directors is
their re-election to shareholders. There other similar companies in Uganda.
considered competitor sensitive, and
is no limitation on the number of times
after due consideration, the Board has
a Non-Executive Director may stand for
resolved not to publish this information.
reelection. Proposals for re-election are
based on individual performance and
contribution.
Directors Emoluments 2021

Category Services Board Cash performance Other Pensions Total
as committee portion of incentives benefits contributions
directors fees package
Ushs ‹000 Ushs ‹000 Ushs ‹000 Ushs ‹000 Ushs ‹000 Ushs ‹000 Ushs ‹000
Executive Directors - - 3,474,876 1,647,306 645,641 638,500 6,406,324
Non executive directors 663,018 335,161 - - - - 998,180
Former non executive directors - - - - - - -
Total 663,018 335,161 3,474,876 1,647,306 645,641 638,500 7,404,503
Directors Emoluments 2020

Category Services Board Cash performance Other Pensions Total
as committee portion of incentives benefits contributions
directors fees package
Ushs ‹000 Ushs ‹000 Ushs ‹000 Ushs ‹000 Ushs ‹000 Ushs ‹000 Ushs ‹000
Executive Directors - - 1,796,583 2,258,144 960,397 118,645 5,133,769
Non executive directors 610,969 316,205 - - - - 927,174
Former non executive directors - - - - - - -
Total 610,969 316,205 1,796,583 2,258,144 960,397 118,645 6,060,943

Report of the Board Audit and Risk Committee 125
Report of the Board Audit

and Risk Committee
This report is provided by the Board Audit and Risk • Ensured that the consolidated annual financial
Committee (the “Committee”) in respect of the 2021 statements fairly present the financial position of the
financial year of Stanbic Uganda Holdings Limited (the company, as at the end of the financial year and the
“Company”) and its subsidiaries. The Committee’s results of operations and cash flows for the financial
operation is guided by a Board Committee Mandate (the year and considered the basis on which the company is
“mandate”), which is informed by the Companies Act determined to be a going concern.
2012, and the Financial Institutions Act 2004 as amended,
impacting the banking subsidiary, the Uganda Securities • Ensured that the consolidated annual financial
Exchange (USE) Listing Rules 2021 and is approved by the statements conform with IFRS.
Board. The Committee composition is annually reviewed by • Considered accounting treatments, significant unusual
the Board. The details on the membership and composition transactions and accounting judgements.
of the Committee, its terms of reference and its activities
are provided in the Corporate Governance Statement on • Considered the appropriateness of the accounting
Page 112. policies adopted and changes thereto.
• Reviewed and discussed the external auditor’s audit
Execution of Functions report.
The Committee has executed its duties and responsibilities
during the financial year in accordance with its mandate, in • Considered and made recommendations to the Board on
relation to Stanbic Uganda’s accounting, internal auditing, the consolidated interim and final dividend payments to
internal control and financial reporting practices. the shareholder.
During the year under review, the Committee, among other • Recommended the consolidated financial statements to
matters, considered the following: the Board for approval.
• Noted that there were no material reports or complaints
In respect of the External Auditors and received concerning accounting practices, internal audit,
the External Audit: internal financial controls, content of the consolidated
annual financial statements, internal controls and related
• Recommended to the Board for an approval of the matters.
re-appointment of PricewaterhouseCoopers (PWC),
Certified Public Accountants Uganda, as external
auditors for the financial year ended 31 December 2021,
In respect of risk management and
in accordance with all applicable legal requirements. information technology:
• Approved the external auditor’s terms of engagement, • Considered risks as they pertained to the control
the audit plan and budgeted audit fees payable. environment, financial reporting and the going concern
assessment.
• Reviewed the audit process and evaluated the
effectiveness of the audits. • Considered and reviewed reports from Management
on risk management, including reports on fraud and its
• Obtained assurance from the external auditors that their bearing on financial reporting and the going concern
independence was not impaired. assessment.
• Considered the nature and extent of all non-audit • Considered updates on key internal and external audit
services provided by the external auditors. findings in relation to the IT (Information Technology)
control environment, significant IT programmes and IT
• Through the Chairman, approved proposed contracts
intangible assets.
with the external auditors for the provision of non-audit
services and pre-approved proposed contracts with the
external auditors for the provision of non-audit services
In respect of financial accounting and
above an agreed threshold amount. reporting developments:
• Confirmed that no reportable irregularities were • Reviewed Management’s process and progress with
identified and reported by the external auditors. respect to new financial accounting and reporting
developments.
In respect of the Financial Statements:
In respect of the Coordination of
• Confirmed the going concern principle as the basis
of preparation of the consolidated annual financial Assurance Activities:
statements. • Reviewed the plans and work outputs of the external
and internal auditors as well as compliance and financial
• Examined and reviewed the consolidated interim and
crime control and concluded that these were adequate
annual financial statements prior to submission and
to address all significant financial risks facing the
approval by the Board.
business.
• Reviewed reports on the adequacy of the provisions for
• Considered the expertise, resources and experience
performing and non- performing loans and impairment
of the finance function and the members of Senior
of other assets, and the formulae applied by the
Management responsible for this function and
company in determining charges for and levels of
concluded that these were appropriate.
impairment of performing loans.

126 Report of the Board Audit and Risk Committee continued
In respect of the Annual Report: In respect of legal, regulatory and

• Evaluated Management’s judgments and reporting compliance requirements:
decisions in relation to the Annual Report and ensured
• Reviewed, together with Management, matters that
that all material disclosures are included.
could have a material impact on the Company.
• Reviewed forward-looking statements, financial and
• Monitored compliance with the Companies Act of
sustainability information in respect of internal control,
Uganda, the Financial Institutions Act, the USE Listing
internal audit and financial crime control.
Rules, all other applicable legislation and governance
• Reviewed and approved the annual internal audit codes and reviewed reports from internal audit,
charter and audit plan and evaluated the independence, external auditors and compliance detailing the extent of
effectiveness and performance of the internal audit compliance.
department and compliance with its charter.
• Noted that no complaints were received through
• Considered reports of the internal and external auditors the Company’s Ethics and Fraud Hotline concerning
on the Company’s internal control systems, including accounting matters, internal audit, internal financial
internal financial controls and maintenance of effective controls, contents of financial statements, potential
internal control systems. violations of the law and questionable accounting or
auditing matters.
• Reviewed significant issues raised by the internal audit
processes and the adequacy of corrective action in • Reviewed reports from management on risk
response to such findings. management, including fraud and its risks as they
pertain to financial reporting and the going concern
• Noted that there were no significant differences assessment.
of opinion between the internal audit function and
Management. Independence of the External Auditors
• Assessed the adequacy of the performance of the The Committee is satisfied that the External Auditors, PWC,
internal audit function and adequacy of the available are independent of the Company. This conclusion was
internal audit resources and found them to be arrived at, inter alia, after taking into account the following
satisfactory. factors:
• Received assurance that proper and adequate • The representations made by PWC to the Committee.
accounting records were maintained and that the
systems safeguarded the assets against unauthorised • The Auditors do not, except as external auditors or in
use or disposal. rendering permitted non-audit services, receive any
remuneration or other benefits from the Company.
• Based on the above, the Committee formed the opinion
that there were no material breakdowns in internal • The Auditors’ independence was not impaired by any
control at the date of this report, including internal consultancy, advisory or other work undertaken by them.
financial controls, resulting in any material loss to the • The Auditors’ independence was not prejudiced as a
Company. result of any previous appointment as the Company’s
• Reviewed any significant tax matters that could have a Auditors.
material impact on the financial statements. • The criteria specified for independence by the
• Considered quarterly reports from the Company’s independent regulatory Board for Auditors and
internal financial controls departments. international regulatory bodies were met.
• Considered the independent assessment of the In conclusion, the Board Audit and Risk Committee
effectiveness of the internal audit function. has complied with its legal, regulatory and governance
responsibilities as set out in its mandate.
On behalf of the Board Audit and Risk Committee
Chairperson, Board Audit and Risk Committee

28 March 2022

Director's Report 127
Directors’ Report
The Directors submit their report together with the audited Dividends
financial statements for the year ended 31 December
In 2020, the Bank of Uganda (BOU) directed all Supervised
2021, which disclose the state of affairs of Stanbic Uganda
Financial Institutions (SFIs), including Stanbic Bank
Holdings Limited (“the Company” or “SUHL”) and its
Uganda, the bank subsidiary of Stanbic Uganda Holdings
subsidiaries (collectively referred to as Stanbic Uganda).
Limited (SUHL) to defer all discretionary payments
including dividends unless explicitly authorised for purposes
Principal Activities of capital preservation. The Bank dividend forms the pool
SUHL is a non-operating holding company that wholly owns of dividends to SUHL shareholders therefore at the 2021
with 5 (five) subsidiaries; Stanbic Bank Uganda Limited AGM, the shareholders authorised the Board of directors to
(the Bank/SBU), Stanbic Properties Limited (SPL), Stanbic take the necessary steps required to obtain the regulatory
Business Incubator Limited (SBIL), Flyhub Uganda Limited approval and effect the payment of the final dividend for the
(Flyhub) and SBG Securities Uganda Limited (SBGS). year ended December 31st, 2020. To date, the proposed final
dividend for 2020 remains under review by BOU which will
SBU is a financial institution regulated by the Bank of inform the 2021 dividend recommendation.
Uganda (BOU) and licensed under the Financial Institutions
Act, to conduct commercial banking business. SPL Share Capital
primarily holds and manages the real estate portfolio
The total number of issued ordinary shares as at the end of
of Stanbic Uganda and offers other services such as,
December 31st, 2021 was 51,188,669,700 ordinary shares of
valuation services, site acquisition, property consultancy,
UShs 1 each.
and execution of real estate projects. SBIL is a licensed
Non-Governmental Organisation (NGO) under the NGO
Act, set up to support the sustainability of Small and Directors and Company Secretary
Medium Enterprises in Uganda through capacity building The Directors and Company Secretary who held office
programs on best business practices. Flyhub is a software during the year and to the date of this report are as shown
development company that provides digital integration and on pages 108-109 of this report.
innovative services as part of our digital transformation
journey. SBGS is a stockbrokerage company licensed by Directors’ interest in shares
the Capital Markets Authority and admitted by the Uganda The following directors as of 31st December 2021, held direct
Securities Exchange as a trading participant that provides interest in SUHL’s ordinary issued share capital as reflected
securities trading, brokerage, dealing and management in the table below:
services,
Director Number of Shares
Results Josepha T. Ndamira 30,000
The consolidated profit for the year ended 31st December
2021 of UShs 269 billion (2020: Ushs 242 billion) has been Insurance
added to retained earnings. The detailed results of Stanbic Directors’ and Officers’ liability insurance was maintained
Uganda are shown on page 134-211. during the year.
Management by Third Parties

None of the business of Stanbic Uganda Holdings Limited
has been managed by a third person or a company in which
a director has had an interest during the year.
By Order of the Board
_______________________
Rita Kabatunzi
Company Secretary,
Board of Directors
28 March 2022

Statement of Directors’
Responsibilities
The Companies Act, 2012 of Uganda (the “Act”) requires In preparing the financial statements, the Directors have
Directors to prepare financial statements for each financial assessed SUHL’s ability to continue as a going concern. In
year that give a true and fair view of the state of affairs of a performing this assessment, the directors have considered
Group of Companies as at the end of the financial year and the results of SUHL’s assessment of the possible impact
of its profit or loss. It also requires the Directors to ensure on its cash flows and operations as a result of the macro-
that such a Group keeps proper accounting records that economic impact of Covid-19 on the local Ugandan market
disclose, with reasonable accuracy, the financial position of and wider international economy that is disclosed inNote
the Group. They are also responsible for safeguarding the 2(ii) of the financial statements.
assets of the Group.
The Directors hereby report that nothing has come to their
The Directors of Stanbic Uganda Holdings Limited (SUHL) attention to indicate that SUHL will not remain a going
accept responsibility for the consolidated annual financial concern for at least twelve months from the date of this
statements, which have been prepared using appropriate statement.
accounting policies supported by reasonable estimates, in
conformity with International Financial Reporting Standards Approval of the financial statements
and in the manner required by the Act.
The financial statements of Stanbic Uganda Holdings
The Directors are of the opinion that the financial Limited were approved by the Board of Directors on
statements give a true and fair view of the state of the 28 March 2022 and were signed on its behalf by:
financial affairs of SUHL. The Directors further accept
responsibility for the maintenance of accounting records
that may be relied upon in the preparation of financial ___________________ ____________________
statements and for such internal controls as they determine
are necessary to enable the preparation of financial Japheth Katto Andrew Mashanda
statements that are free from material misstatements, Board Chairman Chief Executive
whether due to fraud or error.
28 March 2022 28 March 2022

129
REPORT OF THE INDEPENDENT AUDITOR

to the members of Stanbic Uganda Holdings Limited
Report on the audit of the financial statements

Our opinion Basis for opinion
In our opinion, the financial statements give a true and fair view We conducted our audit in accordance with International
of the state of the financial affairs of Stanbic Uganda Holdings Standards on Auditing (“ISAs”). Our responsibilities under those
Limited (“the Company”) and its subsidiaries (together, the standards are further described in the Auditor’s responsibilities
Group) as at 31 December 2021, and of its consolidated and for the audit of the financial statements section of our report.
separate profit and cash flows for the year then ended, in We believe that the audit evidence we have obtained is sufficient
accordance with International Financial Reporting Standards and appropriate to provide a basis for our opinion.
and have been prepared in the manner required by the Ugandan
Companies Act. Independence
We are independent of the Group in accordance with the
What we have audited International Code of Ethics for Professional Accountants
The financial statements of Stanbic Uganda Holdings Limited (including International Independence Standards) issued by
set out on pages 134 to 211 comprise: the International Ethics Standards Board for Accountants (“the
IESBA Code”) together with the ethical requirements that are
• the consolidated and separate statement of financial relevant to our audit of financial statements in Uganda, and
position as at 31 December 2021; we have fulfilled our ethical responsibilities in accordance with
• the consolidated and separate income statement for the these requirements and the IESBA Code.
year ended;
Key audit matters
• the consolidated and separate statement of other
Key audit matters are those matters that, in our professional
comprehensive income for the year then ended;
judgment, were of most significance in our audit of the
• the consolidated and separate statement of changes in financial statements of the current period. These matters were
equity for the year then ended; addressed in the context of our audit of the financial statements
as a whole, and in forming our opinion thereon, and we do not
• the consolidated and separate statement of cash flows for provide a separate opinion on these matters.
the year then ended; and
• the notes to the consolidated and separate financial
statements, which include a summary of significant
accounting policies and other explanatory information.
PricewaterhouseCoopers Certified Public Accountants, Communications House, 1 Colville Street, P. O. Box 882, Kampala, Uganda.
Registration Number 113042
T: +256 (414) 236018, +256 (312) 354400, F: +256 (414) 230153, E: ug_general@pwc.com,www.pwc.com/ug
Partners: C Mpobusingye D Kalemba F Kamulegeya P Natamba U Mayanja
PricewaterhouseCoopers CPA is regulated by the Institute of Certified Public Accountants of Uganda
130
Report of the independent auditor to the members of

Stanbic Uganda Holdings Limited (continued)
Report on the audit of the financial statements (continued)
Key audit matters How our audit addressed the key audit matters
Impairment of loans and advances to customers Our audit procedures are summarised as follows:
As disclosed in Notes 2, 3(c) and 19 of the financial statements, We evaluated the appropriateness of the methodology, and the
the Directors have estimated provisions for expected credit mathematical accuracy of the models, applied by the Directors
losses (“ECL”) on loans and advances of Shs 169,372 million as in the estimation of expected credit losses for consistency with
at 31 December 2021 (2020: Shs 165,089 million). IFRS 9;
We considered this a key audit matter in view of the complex We validated controls implemented by the Group over the
and subjective judgment exercised by the Directors in staging of loans and advances between default (Stage 3),
estimating the above provisions. In addressing this area, we significant increase in credit risk (Stage 2) and others (Stage 1)
focused on the following: and tested, on a sample basis, the staging of loans and advances
with additional emphasis on loans that were restructured during
• the appropriateness of models used by the Directors in the year;
estimation of impairment;
We evaluated the appropriateness of segmentation of the
• the assumptions and estimates applied to the probability of Group’s loan portfolio for purposes of estimation of PDs;
default (“PD”), exposure at default (“EAD”) and loss given
default (“LGD”) within the expected credit loss (“ECL”) We tested, on a sample basis, the PDs used by the Directors
measurement; and ] in comparison to the history of default and exernal indicators
where made use of. We also tested the accuracy of the underlying
• Evaluation of Significant Increase in Credit Risk (“SICR”); historical data applied by the Directors in deriving PDs;
• determination of the forwardlooking parameters to be We evaluated the overall reasonableness of the adjustments
incorporated in the estimation of expected credit losses; made to impairment in response to the added uncertainty
introduced by the effects of the Covid-19 pandemic in
• the overlays applied to the impairment calculation in comparison to data and assumptions on which such adjustments
response to the additional uncertainty to the estimate were based;
arising from the effects of the Corona Virus 2019 (COVID-
19) pandemic. We assessed the extent to which forward-looking data applied in
the estimation of expected credit losses is correlated with default
history and corroborated the data and assumptions therein using
publicly available information, where applicable;
We tested, on a sample basis the reasonableness of the EAD for
on and off-balance sheet items based on historical experience of
the Group;
We tested, on a sample basis, the reasonableness of the loss
given default estimated by the Directors using present values of
expected future cashflows of loans and advances derived from
the estimated recoverable value of collateral held and historical
loss experience;
We assessed the adequacy of the disclosures in the financial
statements in accordance with IFRS 9; and
We performed an independent recomputation of provisions for
expected credit losses, separately on the Group’s consumer
and high net worth and business and commercial portfolio and
corporate and investment banking portfolio, using independently
recomputed PDs and independent forward looking information
and compared our results to those obtained by the Directors to
evaluate the reasonableness of provisions for expected credit
losses in these financial statements.
Our audit procedures are summarised as follows:
We obtained evidence that selected manual and computer
controls applied by the Directors that are relevant to the
completeness, existence, accuracy and fair valuation of derivative
assets and liabilities were designed and operated effectively
during the year;
We obtained evidence of the appropriateness of the methodology
and computational accuracy of the model used by the Directors
in the fair valuation of derivative assets and liabilities;
We tested the accuracy of data inputs used by the Directors in
the fair valuation of derivative assets and liabilities; and
We evaluated the completeness and accuracy of disclosures
made by the Directors in respect of derivative assets and
liabilities.
131

Fair valuation of derivative assets and liabilities Our audit procedures are summarised as follows:
The Group is the holder and issuer of derivative financial We obtained evidence that selected manual and computer
instruments in the normal course of business. In line with IFRS controls applied by the Directors that are relevant to the
9: Financial Instruments, these derivatives are measured at fair completeness, existence, accuracy and fair valuation of derivative
value at each reporting date. The Directors employed valuation assets and liabilities were designed and operated effectively
techniques in estimating the fair values of outstanding during the year;
derivatives as at 31 December 2021 at UShs 129 billion (2020:
UShs 161 billion) for derivative assets and UShs 205 billion We obtained evidence of the appropriateness of the methodology
(2020: UShs 230 billion ) for derivative liabilities, as disclosed and computational accuracy of the model used by the Directors
in Note 27 of the financial statements. in the fair valuation of derivative assets and liabilities;
This was considered a key audit matter for our audit in view We tested the accuracy of data inputs used by the Directors in
of the significant judgments exercised by the Directors in the fair valuation of derivative assets and liabilities; and
estimating the fair value of derivatives, the materiality of We reviewed the completeness and accuracy of disclosures
outstanding derivatives, and the additional complexity and made by the Directors in respect of derivative assets and
long-dated nature of currency swap derivatives which are liabilities.
predominantly over 5 years in duration.
In particular, we focused on the fair valuation methodology
applied by the Directors; the estimation of inputs into the fair
valuation in view of the limitations on available market data/
prices; and the overall reasonableness of prices applied in the
valuation.
Other information
The Directors are responsible for the other information. The In preparing the financial statements, the Directors are
other information comprises the Directors’ Report and the responsible for assessing the Group’s ability to continue as a
Statement of Directors’ Responsibilities which we obtained going concern, disclosing, as applicable, matters related to going
prior to the date of this auditor’s report, and additional sections concern and using the going concern basis of accounting unless
of the Group’s annual report which are expected to be made the Directors either intend to liquidate the Group or to cease
available to us after that date, but does not include the financial operations, or have no realistic alternative but to do so.
statements and our auditor’s report thereon.
The Directors are responsible for overseeing the Group’s
Our opinion on the financial statements does not cover the financial reporting process.
other information and we do not and will not express any form of
assurance conclusion thereon. Auditor’s responsibilities for the audit of the
In connection with our audit of the financial statements, our
responsibility is to read the other information identified above Our objectives are to obtain reasonable assurance about
and, in doing so, consider whether the other information is whether the financial statements as a whole are free from
materially inconsistent with the financial statements or our material misstatement, whether due to fraud or error, and to
knowledge obtained in the audit, or otherwise appears to be issue an auditor’s report that includes our opinion. Reasonable
materially misstated. assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always
If, based on the work we have performed on the other detect a material misstatement when it exists. Misstatements
information that we obtained prior to the date of this auditor’s can arise from fraud or error and are considered material
report, we conclude that there is a material misstatement of this if, individually or in the aggregate, they could reasonably be
other information, we are required to report that fact. We have expected to influence the economic decisions of users taken on
nothing to report in this regard. the basis of the financial statements.
When we read the additional sections of the Group’s annual • Identify and assess the risks of material misstatement of the
report, if we conclude that there is a material misstatement financial statements, whether due to fraud or error, design
therein, we are required to communicate the matter to those and perform audit procedures responsive to those risks,
charged with governance. and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting
Responsibilities of the Directors for the financial a material misstatement resulting from fraud is higher than
statements for one resulting from error, as fraud may involve collusion,
The Directors are responsible for the preparation of the financial forgery, intentional omissions, misrepresentations, or the
statements that give a true and fair view in accordance with override of internal control.
International Financial Reporting Standards and in the manner • Obtain an understanding of internal control relevant to the
required by the Ugandan Companies Act, and, for such internal audit in order to design audit procedures that are appropriate
control as the Directors determine is necessary to enable the in the circumstances, but not for the purpose of expressing
preparation of financial statements that are free from material an opinion on the effectiveness of the Group’s internal
misstatement, whether due to fraud or error. control.
132

• Evaluate the appropriateness of accounting policies used From the matters communicated with the Directors, we
and the reasonableness of accounting estimates and related determine those matters that were of most significance in
disclosures made by the Directors. the audit of the Group’s financial statements of the current
period and are therefore the key audit matters. We describe
• Conclude on the appropriateness of the Directors’ use of the these matters in our auditors’ report unless law or regulation
going concern basis of accounting and, based on the audit precludes public disclosure about the matter or when, in
evidence obtained, whether a material uncertainty exists extremely rare circumstances, we determine that a matter
related to events or conditions that may cast significant should not be communicated in our report because the adverse
doubt on the Group’s ability to continue as a going concern. consequences of doing so would reasonably be expected to
If we conclude that a material uncertainty exists, we are outweigh the public interest benefits of such communication.
required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
Report on other legal and regulatory
conclusions are based on the audit evidence obtained up to requirements
the date of our auditor’s report. However, future events or The Ugandan Companies Act requires that in carrying out our
conditions may cause the Group to cease to continue as a audit we consider and report to you on the following matters. We
going concern. confirm that:
• Evaluate the overall presentation, structure and content of i) we have obtained all the information and explanations which
the Group financial statements, including the disclosures, to the best of our knowledge and belief were necessary for
and whether the financial statements represent the the purposes of our audit;
underlying transactions and events in a manner that
achieves fair presentation. ii) in our opinion proper books of account have been kept by
the Group, so far as appears from our examination of those
• Obtain sufficient appropriate audit evidence regarding the books; and
financial information of the entities or business activities
within the Group to express an opinion on the Group’s iii) the consolidated and separate statement of financial position
financial statements. We are responsible for the direction, and the consolidated and separate income statement are in
supervision and performance of the Group audit. We remain agreement with the books of account.
solely responsible for our audit opinion. The engagement partner on the audit resulting in this
We communicate with the Directors regarding, among other independent auditor’s report is CPA Uthman Mayanja – P0181.
matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the Directors with a statement that we
have complied with relevant ethical requirements regarding Certified Public Accountants CPA Uthman Mayanja
independence, and to communicate with them all relationships Kampala
and other matters that may reasonably be thought to bear on 28 March 2022
our independence, and where applicable, related safeguards.
Even the
started small.
With us you’re

Stanbic Bank Uganda Limited. A Financial Institution regulated by the Bank of Uganda and Customer @stanbicug

FINANCIAL
STATEMENTS
136 Consolidated and separate income statement
137 Consolidated and separate statement of
comprehensive income
financial position
changes in equity
cash flows
142 Notes to the consolidated & separate

136 CONSOLIDATED AND SEPARATE INCOME STATEMENT
Consolidated and separate income statement

For the year ended 31 December 2021
GROUP COMPANY
2021 2020 2021 2020
Notes UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Interest income 5 543,994,626 536,233,586 - -
Interest expense 6 (45,968,548) (45,441,437) (75,253) (37,816)
Net interest income 498,026,078 490,792,149 (75,253) (37,816)
Fee and commission income 7 173,617,048 165,731,160 - -
Fee and commission expenses 7 (8,857,656) (8,449,791) - -
Net fees and commission income 164,759,392 157,281,369 - -
Net trading income 8 233,701,721 177,344,278 - -
Other losses on financial instruments 9 (3,295) (132,234) - -
Other operating income 10 6,998,552 6,104,594 - 129,583,471
Non interest revenue 405,456,370 340,598,007 - 129,583,471
Total income before credit impairment charge 903,482,448 831,390,156 (75,253) 129,545,655
Impairment charge for credit losses 11 (70,407,666) (91,734,105) - -
Total income after credit impairment charge 833,074,782 739,656,051 (75,253) 129,545,655
Employee benefits expense 12 (178,547,838) (169,512,134) (7,415,205) (2,197,538)
Depreciation and amortisation 22&23 (48,059,045) (48,424,389) (568,659) (266,824)
Other operating expenses 13 (255,257,740) (203,106,739) (1,680,990) (978,892)
Profit before income tax 351,210,159 318,612,789 (9,740,107) 126,102,401
Income tax expense 14 (81,898,067) (76,926,464) 2,748,127 864,030
Profit for the year attributable to the equity
holders of the group 269,312,092 241,686,325 (6,991,980) 126,966,431

Earnings per share for profit attributable to
the equity holders of the Group during the
year (expressed In UShs per share):
Basic and diluted earnings per share 15 5.26 4.72 (0.14) 2.48
The notes set out on pages 142 to 211 form an integral part of these financial statements.

CONSOLIDATED AND SEPARATE STATEMENT OF OTHER COMPREHENSIVE INCOME 137
Consolidated and separate statement of other comprehensive income

GROUP COMPANY
2021 2020 2021 2020
Profit for the year 269,312,092 241,686,325 (6,991,980) 126,966,431
Other comprehensive income for the year after
tax:
Items that may be subsequently
reclassified to profit or loss
Net change in debt financial assets measured at
fair value through other comprehensive income
(OCI) 25 20,551,757 (5,113,372) - -
Total comprehensive income for the year
289,863,849 236,572,953 (6,991,980) 126,966,431
Income tax relating to each component of other comprehensive income is disclosed in note 25.

138 CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION
Consolidated and separate statement of financial position

As at 31 December 2021
GROUP COMPANY
2021 2020 2021 2020
Cash and balances with Bank of Uganda 16 984,530,697 1,155,333,607 - 1,000
Derivative assets 27 129,164,041 160,917,126 - -
Trading assets 17 1,057,416,156 1,101,949,038 - -
Pledged assets 17 3,840,314 460,527,242 -
Financial investments 17 844,345,030 721,772,782 - -
Current income tax recoverable 14 - 5,066,711 11,545,375 11,720,417
Loans and advances to banks 18 1,106,122,016 683,929,488 - -
Loans and advances to customers 19 3,722,073,070 3,618,353,321 - -
Amounts due from group companies 36 401,399,239 354,851,856 35,757,732 154,995,286
Investment in subsidiaries 38 - - 896,504,489 893,504,489
Other assets 21 267,011,390 96,788,730 506,189 227,504
Property, equipment and right of use assets 23 75,544,628 81,417,930 1,599,759 861,851
Goodwill and other intangible assets 22 82,293,413 93,447,576 - -
Deferred tax assets 20 46,355,807 44,542,719 3,773,211 850,042
Total assets 8,720,095,801 8,578,898,126 949,686,755 1,062,160,589
Shareholders’ equity and liabilities
Shareholders’ equity
Ordinary share capital 24 51,188,670 51,188,670 51,188,670 51,188,670
Fair value through other comprehensive
income reserve 25 18,038,214 (2,513,543) - -
Retained earnings 38 1,414,076,353 1,099,764,261 828,307,189 790,299,169
Proposed dividends 33 50,000,000 95,000,000 50,000,000 95,000,000
1,533,303,237 1,243,439,388 929,495,859 936,487,839

Liabilities
Derivative liabilities 27 205,061,504 229,733,411 - -
Current tax liabilities 14 3,817,466 - - -
Deposits from customers 28 5,741,043,166 5,493,479,534 - -
Deposits from banks 29 155,075,114 785,477,443 - -
Amounts due to group companies 36 260,392,702 351,607,479 562,112 88,295,740
Borrowed funds 30 165,196,485 43,346,567 - -
Subordinated debt 32 71,753,914 73,022,525 - -
Other liabilities 31 584,452,213 358,791,779 19,628,784 37,377,010
7,186,792,564 7,335,458,738 20,190,896 125,672,750
Total equity and liabilities 8,720,095,801 8,578,898,126 949,686,755 1,062,160,589
…………………………………………………………………………. ………………………………………………………………………….
Chairman Chief Executive
…………………………………………………………………………. ………………………………………………………………………….
Director Company Secretary
The financial statements on pages 134 to 211 were approved for issue by the Board of Directors on 28 March 2022.

Consolidated and separate statement of changes in equity
Fair value Statutory
Share through OCI Credit Risk Proposed Retained
GROUP Notes capital reserve Reserve dividends earnings Total
UShs’000 UShs’000 UShs’000 UShs’000 UShs’000 UShs’000
Balance at 1 January 2021 51,188,670 (2,513,543) - 95,000,000 1,099,764,261 1,243,439,388
Profit for the year - - - - 269,312,092 269,312,092
Other comprehensive income after tax for the year 25 - 20,551,757 - - - 20,551,757
Transactions with owners recorded directly in equity
Proposed dividends transferred back to retained earnings 33 - - - (95,000,000) 95,000,000 -
Proposed dividends 33 - - - 50,000,000 (50,000,000) -
Balanceat 31 December 2021 51,188,670 18,038,214 - 50,000,000 1,414,076,353 1,533,303,237

Share through OC Credit Risk Proposed Retained
Notes capital Ireserve Reserve dividends earnings Total
Balance at 1 January 2020 51,188,670 2,599,829 8,466,533 110,000,000 944,611,403 1,116,866,435

Profit for the year 241,686,325 241,686,325
Other comprehensive loss after tax for the year 25 - (5,113,372) - - - (5,113,372)
Transactions with owners recorded directly inequity
Dividends paid 33 - - - (110,000,000) - (110,000,000)
Transfer from statutory credit risk reserve 26 - - (8,466,533) - 8,466,533 -
Balance at 31 December 2020 51,188,670 (2,513,543) - 95,000,000 1,099,764,261 1,243,439,388
The fair value through OCI reserve relates to debt financial investments measured at fair value through OCI.

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

139
140
Consolidated and separate statement of changes in equity

For the year ended 31 December 2021 (continued)
Share through OCI Credit Risk Proposed Retained
Notes capital reserve Reserve dividends earnings Total
COMPANY UShs’000 UShs’000 UShs’000 UShs’000 UShs’000 UShs’000
Balance at 1 January 2021 51,188,670 - - 95,000,000 790,299,169 936,487,839
Profit for the year - - - - (6,991,980) (6,991,980)

Other comprehensive income after tax for the year 25 - - - - - -
Transactions with owners recorded directly in equity

Proposed dividends transferred back to retained earnings 33 - - - (95,000,000) 95,000,000 -
Balanceat 31 December 2021 51,188,670 - - 50,000,000 828,307,189 929,495,859

Share through OC Credit Risk Proposed Retained
Notes capital Ireserve Reserve dividends earnings Total

Balance at 1 January 2020 51,188,670 - - 110,000,000 758,332,738 919,521,408

Profit for the year - - - - 126,966,431 126,966,431
Other comprehensive loss after tax for the year 25 - - - - - -
CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY (CONTINUED)
Transactions with owners recorded directly inequity

Dividends paid 33 - - - (110,000,000) - (110,000,000)
Transfer from statutory credit risk reserve 26 - - - - - -
Balance at 31 December 2020 51,188,670 - - 95,000,000 790,299,169 936,487,839
The fair value through OCI reserve relates to debt financial investments measured at fair value through OCI.
CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS 141
Consolidated and separate statement of cash flows

GROUP COMPANY
2021 2020 2021 2020
Notes UShs’000 UShs’000 UShs’000 UShs’000
Cash flows from operating
activities
Interest received 5 543,521,114 514,409,124 - -
Interest paid 6 (45,616,592) (46,511,654) (75,253) (37,816)
Net fees and commissions received 7 160,583,904 162,228,254 - 129,583,471
Net trading and other Income/recoveries 248,832,500 192,349,594 - -
Cash payment to employees and suppliers (477,337,194) (389,839,999) (10,804,587) (3,777,911)
Cash flows from operating activities before
changes in operating assets and Liabilities 429,983,732 432,635,319 (10,879,840) 125,767,744
Changes in operating assets and
liabilities
Income tax paid 14 (83,593,142) (91,394,617) - 4,171,663
(Decrease)/increase in derivative assets 27 31,753,085 (78,419,817) - -
(Increase)/decrease in financial investments 17 (744,556,343) 277,021,578 -
Decrease/(increase) in trading assets 17 501,219,810 (841,973,214) - -
Increase in cash reserve requirement (60,350,000) (81,630,000) - -
Increase in loans and advances to customers 19 (181,875,005) (842,235,712) - -
Increase in other assets 21 (166,047,172) (49,095,263) (278,685) 1,552,584
Increase in customer deposits 28 247,211,676 772,346,181 - -
(Decrease)/increase in deposits and balances
due to other banks 29 (630,402,329) 583,777,645 - -
(Decrease)/increase in deposits from group
companies 36 (91,214,777) 319,687,129 - -
(Decrease)/increase in derivative liabilities 27 (24,671,907) 103,757,279 - -
Increase/(decrease) in other liabilities 272,258,680 5,933,466 (103,152,411) (17,494,559)
Net cash (used in)/from operating
activities (500,283,692) 510,409,974 (114,310,936) 113,997,432
Cash flows from investing activities

Purchase of property an equipment 23 (8,952,743) (17,761,017) (1,306,567) (943,945)
Purchase of computer software 23 (3,887,241) (11,081,968) - -
Proceeds from sale of property and equipment 23 73,898 376,858 - -
Net cash used in investing activities (12,766,086) (28,466,127) (1,306,567) (943,945)
Cash flows from financing activities

Principal Lease payments 23 (21,133,035) (11,391,314) (621,051) (421,930)
Dividends paid to shareholders 33 - (110,000,000) - (110,000,000)
Dividends received from subsidiary - - 129,000,000
Investment in subsidiary - (3,000,000) (10,600,000)
Increase in borrowed funds 30 121,849,918 32,264,784 - -
Decrease in subordinated debt (1,268,611) (257,941) - -
Net cash from/(used) in financing
activities 99,448,272 (89,384,471) (3,621,051) 7,978,070
Net(decrease)/increase in cash and cash
equivalents (413,601,506) 392,559,376 (119,238,554) 121,031,557
Cash and cash equivalents at beginning of the
year 2,450,544,793 2,057,985,417 154,996,286 33,964,729
Cash and cash equivalents at end
of the year 35 2,036,943,287 2,450,544,793 35,757,732 154,996,286
The notes set out on pages 142 to 211form an integral part of these financial statements.

NOTES
Notes
Foreign currency translation
Functional and presentation currency
Items included in the Group’s financial statements are
measured using the currency of the primary economic
1. General Information environment in which the Group operates Uganda Shillings;
Stanbic Uganda Holdings Limited (the “Company”) is a limited UShs (“the functional currency”). The financial statements are
liability company, incorporated and domiciled in Uganda. The presented in UShs and figures are stated in thousands of UShs
address of its registered office is: Plot 17 Hannington Road 11th (UShs’000) unless otherwise stated.
floor Short Tower - Crested Towers, PO Box 7395, Kampala,
Uganda. Transactions and balances
Foreign currency transactions are translated into the functional
The Company’s shares are listed on the Uganda Securities currency using the exchange rates prevailing at the dates of the
Exchange (USE) and it has five subsidiaries which are; Stanbic transactions.
Bank Uganda Limited, FLYHUB Uganda Limited, Stanbic
Properties Limited, Stanbic Business Incubator Limited and Monetary items denominated in foreign currency are translated
SBG Securities Uganda Limited. with the closing rate as at the reporting date. Non-monetary
items measured at historical cost denominated in a foreign
For purposes of reporting under the Companies Act of Uganda currency are translated with the exchange rate as at the date
2012 (herein referred to as the Ugandan Companies Act) the of initial recognition: non-monetary items in a foreign currency
balance sheet is represented by the statement of financial that are measured at fair value are translated using the
position and the profit or loss account is represented by the exchange rates at the date when the fair value was determined.
income statement in these financial statements.
Foreign exchange gains and losses resulting from the
settlement of foreign currency transactions and from the
2.1 Accounting policy elections translation at year- end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in
(i) Summary of significant accounting profit or loss.
policies Changes in the fair value of monetary assets denominated
The principal accounting policies adopted in the preparation in foreign currency classified as fair value through OCI are
of these financial statements are set out below. These policies analyzed between translation differences resulting from
have been consistently applied to all years presented for both changes in the amortized cost of the security and other
group and company, unless otherwise stated. changes in the carrying amount of the security. Translation
differences related to changes in the amortized cost are
a) Basis of preparation recognised in profit or loss, and other changes in the carrying
The annual financial statements are prepared in compliance amount, are recognised in other comprehensive income.
with International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board Translation differences on non-monetary financial instruments,
(IASB) and in the manner required by the Ugandan Companies such as equities held at fair value through profit or loss, are
Act. The financial statements are presented in the functional reported as part of the fair value gain or loss. Translation
currency, Uganda Shillings (UShs), rounded to the nearest differences on non- monetary financial instruments, such as
thousand, and prepared under the historical cost convention equities classified as fair value through other comprehensive
except where otherwise stated below: income are included in other comprehensive income.
The preparation of the financial statements in conformity with The accounting policies are consistent with those reported
IFRS requires management to make judgements, estimates and in the previous year except as required in terms of the
assumptions that affect the application of accounting policies adoption of the following:
and the reported amounts of assets, liabilities, income and
Adoption of new and amended standards effective
expenses. Actual results may differ from these estimates.
for the current financial year.
The following principal accounting policy elections in terms of
IFRS have been made, with reference to the detailed accounting IFRS 7 Financial Instruments: Disclosures (IFRS 7), IFRS 9
policies shown in brackets: Financial Instruments (IFRS 9), IFRS 16 Leases (IFRS 16),
IAS 39 Financial Instruments: Recognition and Measurement
• purchases and sales of financial assets under a contract (IAS 39) (amendments). The second phase of Interest Rate
whose terms require delivery of the asset within the time Benchmark Reform (IBOR) resulted in amendments to IFRS
frame established generally by regulation or convention 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 requirements to enable
in the marketplace concerned are recognised and companies to deal with its effect on financial instruments
derecognised using trade date accounting (accounting and to continue providing useful information to investors.
policy f ) The amendments require the Group to update the effective
interest rate to reflect the change to the alternative risk-free
• the portfolio exception is applied to measure the fair value rates (ARRs), instead of derecognising or adjusting the carrying
of certain groups of financial assets and financial liabilities amount of financial instruments, for changes required by the
on a net basis (accounting policy a) reform if the transition from the IBOR rate to the ARR is as
• intangible assets, property, equipment and right of a direct consequence of the reform and on an economically
use assets are accounted for at cost less accumulated equivalent basis. The amendment also provides specific hedge
amortisation/depreciation and impairment (accounting accounting relief, including that the Group will not have to
policy c) discontinue hedge accounting solely because it makes changes
required by the reform to hedge designations and hedge
Estimates and underlying assumptions are reviewed on documentation, if the hedge meets the other hedge accounting
an ongoing basis. Revisions to accounting estimates are criteria. The amendments also require companies to provide
recognised in the period in which the estimate is revised and in additional information about new risks arising from the reform
any future periods affected. and how it manages the transition to ARRs. The Group will
transition to ARRs as each interest rate benchmark is replaced.
Information about significant areas of estimation uncertainty
and critical judgements in applying accounting policies that IFRS 16 (amendment). In light of the recent Covid-19
have the most significant effect on the amounts recognised in pandemic and resultant rent concessions to be granted
the financial statements are described in note 2. by lessors, the amendment permits lessees, as a practical

NOTES 143
2.1 ) Accounting policy elections (continued)
(i) Summary of significant accounting policies (continued)
expedient, not to assess whether particular Covid-19 related The 5 March 2021 Financial Conduct Authority (FCA)
rent concessions are lease modifications and instead statement around the timing for the cessation or loss of
account for those rent concessions as if they were not lease representativeness of all LIBOR settings represented an index
modifications. The amendment permits lessees to apply the cessation event under the IBOR Fallbacks Supplement and
practical expedient as an accounting policy choice to rent protocol, triggering a fixing of the fallback spread adjustment
concessions for which any reduction in lease payments affects at the point of the announcement. This spread adjustment is an
payments originally due on or before 30 June 2021. The Group important part of the overall fallback rate, and reflects a portion
elected not to apply this practical expedient. of the structural differences between IBORs and the ARRs used
as a basis for the fallbacks – IBORs incorporate a credit risk
Interest rate benchmarks and reference interest premium and other factors, while ARRs are risk free or nearly
rate reform risk free. Following multiple industry consultations by ISDA, it
was determined that the fallback for each IBOR setting will be
The Financial Stability Board has initiated a fundamental review based on the relevant ARR compounded in arrears to address
and reform of the major interest rate benchmarks used globally differences in tenor, plus a spread adjustment to account for
by financial market participants. This review seeks to replace the credit risk premium and other factors, calculated using a
existing interbank offered rates (IBORs) with alternative risk- historical median approach over a five-year lookback period
free rates (ARRs) to improve market efficiency and mitigate from the announcement date.
systemic risk across financial markets.
This spread has now been fixed for all euro, sterling, Swiss franc,
During the 2021 financial year, the (London Interbank Offer US dollar and yen LIBOR tenors, giving firms more information
Rate) LIBOR’s administrator, the Intercontinental Exchange about the exact fallback rate that will be used in the event they
Benchmark Administration Limited, announced it would no do not complete their transition efforts before cessation or non-
longer publish EUR, CHF, JPY and GBP related LIBOR rates for representativeness occurs.
all tenors after 31 December 2021. The IBA has adopted a two-
stage approach for the cession of the USD LIBOR rates with the The above introduces a number of risks to the Group including,
1 week and 2 month USD LIBOR rates no longer being published but not limited to:
after 31 December 2021 and the remaining being the overnight,
1 month, 3 month, 6 month and 12 month rates no longer being market risk – risk of not aligning to market regulations such
published after 30 June 2023. The LIBOR rates which the Group as the ISDA, not meeting the market transition timelines and
is exposed to will be replaced by Secured Overnight Financing liquidity risk associated with the ARR.
Rate (SOFR), Sterling Overnight Index Average (SONIA), and model risk – risk of the valuation models used within the Group
Euro Short Term Rate (ESTR). not being able to cater for the changes in the intended manner.
Given that the LIBOR rates and ARRs are calculated on a legal risk – risk of being non-compliant to the agreements
different basis, adjustments may be made to contracts that previously agreed with clients.
are transitioned from LIBOR to ARRs, to ensure economic
equivalence. operational risk – risk of the Group’s systems not being able to
accommodate for the changes to the interest rates as agreed
The Group has several LIBOR linked contracts that extend with the clients.
beyond 2021. The Group ceased booking new LIBOR linked
exposures from 1 October 2021, apart from very limited financial risk – risk of not appropriately pricing the deals which
circumstances to align with industry guidance and best will result in a transfer of value between the Group and clients.
practice. From this date, new exposure are booked using the
compliance/regulatory risk – risk that the Group is exposed
ARRs being SOFR, SONIA, and ESTR. In certain instances, other
regulatory sanctions due to failing to meet the regulatory
suitable rates may be used, such as Central Bank Policy Rates.
expectations in relation to the transition.
The Group has established a steering committee and working
reputational risk – the risk to the Group’s reputation from
group to manage the transition to ARRs. The objectives of the
failing to adequately prepare for the transition.
committee and working group include evaluating the extent
to which loans advanced and liabilities reference IBOR cash conduct risk – risk that arises when transitioning existing
flows, whether such contracts need to be amended as a result contracts linked to IBORs as value-transfer may occur, or clients
of IBOR reform and how to manage communication about IBOR may be transitioned to inferior rates or on unfair contractual
reform with counterparties. The committee and working group terms, or in circumstances where they do not fully appreciate
are working closely with business teams across the Group to the impact of the transition or the alternatives available to them.
establish pricing for new lending products indexed to ARRs.
The steering committee has set up a risk management
The Group’s derivative instruments are governed by transition plan which details the transition process for each
International Swaps and Derivatives Association (ISDA) 2006 product in the relevant Business Units (BUs).
definitions. ISDA published its IBOR fallback protocol, which
will apply following a permanent cessation of an IBOR and By way of policy, all new contracts or exposures referencing
ensures an orderly transition for IBOR linked contracts in IBORs include robust fallback language, and work is underway
the event that renegotiated contracts are not in place at the in some areas to actively transition legacy exposures away from
time of the cessation of LIBOR. Following a series of public LIBOR. Changes in impacted systems are being implemented
consultations, ISDA launched its IBOR Fallbacks Protocol (the and ready to book at new rates. Communications to clients
Protocol) and IBOR Fallbacks Supplement (the Supplement) in are underway via multiple platforms along with one-to-one
October 2020. Together, they focus on strengthening existing conversations. The Group is also ensuring that the staff have
and new derivatives contracts with durable fallback language. attended educational webinars and received the required
The Protocol and Supplement both took effect in January 2021. updates and communication.
The Protocol going into effect means that existing derivatives
contracts will now incorporate ISDA’s new fallbacks if both
counterparties have adhered to the Protocol or otherwise
bilaterally agreed to include the new fallbacks in their contracts.
The Supplement going into effect means that new derivatives
contracts that incorporate the 2006 ISDA Definitions and
reference a relevant IBOR will also incorporate the new
fallbacks.

144 NOTES
(i) Summary of significant accounting policies (continued)
Financial instruments impacted by the reform which are yet to transition

GBP Other
LIBOR USD LIBOR EUR IBOR IBORs
2021 2021 2021 2021
Ushs’000 Ushs’000 Ushs’000 Ushs’000
Derivative assets - 70,852,477 - -
Financial investments - - - -
Loans and advances - 1,348,217,698 503,289,483 -
Trading assets - - - -
Total assets recognized on the balance sheet subject to IBOR
reform - 1,419,070,175 503,289,483 -
Derivative liabilities - (70,271,574) - -
Deposits and debt funding - (200,727,889) (100,358,094) -
Trading liabilities - - - -
Subordinated debt - (71,753,914) - -
Total liabilities recognized on the balance sheet subject to IBOR reform - (342,753,377) (100,358,094) -
Off balance sheet items1 - 3,836,147,683 - -
Total off balance sheet exposures subject to IBOR reform - 3,836,147,683 - -
1
These balances represent the notional amount directly impacted by the IBOR reform.
Early adoption of revised standards: current or prior reporting periods apart from those mentioned
below. The following represents the most material key
▪ IFRS 16 (amendment), the amendment extends the management assumptions applied in preparing these financial
availability of the practical expedient so that it applies to statements.
rent concessions for which any reduction in lease payments
affects only payments originally due on or before 30 June Expected credit loss (ECL)
2022, provided the other conditions for applying the practical
expedient are met. The Group elected not to apply this During the current reporting period models have been
practical expedient. enhanced but no material changes to assumptions have
occurred. Covid-19 placed considerable strain on our operations
▪ IAS 1 Presentation of Financial Statements (IAS 1) specifically retail, business and corporate clients, however, the
(amendments), IAS 8 Accounting Policies, Changes in Group’s risk appetite remained unchanged.
Accounting Estimates and Errors (IAS 8) (amendments).
In response to the IASB’s Disclosure Initiative – Principles ECL on financial assets – drivers
of Disclosure, the amendments introduce a requirement
on entities to disclose their material accounting policy For the purpose of determining the ECL:
information rather than significant accounting policies. To
support this amendment the IASB also amended its IFRS • The home services, vehicle and asset finance (VAF), card,
Materiality Practice Statement to explain and demonstrate personal, business and other lending products portfolios
the application of the materiality process to accounting are based on the product categories or subsets of the
policy disclosures. The amendments have been applied product categories, with tailored ECL models per portfolio.
prospectively. The impairment provision calculation excludes post-write-
off recoveries (PWOR) from the loss given default (LGD) in
▪ IAS 8 (amendment). The amendments introduce the
calculating the ECL. These LGD parameters are aligned to
definition of accounting estimates and include amendments
market practice.
to assist entities to distinguish changes in accounting
estimates from changes in accounting policies. The • Corporate, sovereign and bank exposures are calculated
amendments have been applied prospectively. separately based on rating models for each of the asset
classes.
▪ IAS 12 Income Taxes (IAS 12) (amendment). The
amendments narrow the scope of the initial recognition ECL measurement period
exemption of deferred tax assets and liabilities. The
exemption no longer applies to transactions that, at initial • The ECL measurement period for stage 1 exposures is 12
recognition, give rise to equal taxable and deductible months (or the remaining tenor of the financial asset relating
temporary differences. The amendments have been applied to corporate, sovereign and bank exposures, including
retrospectively. certain home services, VAF, card, personal, business and
other lending product exposures, if the remaining lifetime is
The adoption of the above amended standards on 1 January less than 12 months).
2021 did not affect the Group’s previously reported financial
results, and did not impact the Group’s results upon transition, • A loss allowance over the full lifetime of the financial asset
unless otherwise specified. Disclosures and accounting policies is required if the credit risk of that financial instrument has
have been amended as relevant. increased significantly since initial recognition (stage 2).
• A lifetime measurement period is applied to all credit impaired
ii) Key management assumptions (stage 3) exposures.
In preparing the financial statements, estimates and
assumptions are made that could materially affect the reported • Lifetime includes consideration for multiple default events,
amounts of assets and liabilities within the next financial year. i.e. where defaulted exposures cure and then subsequently
Estimates and judgements are continually evaluated and are re-default. This consideration increases the lifetime and the
based on factors such as historical experience and current best potential ECL.
estimates of future events. While models have been enhanced,
no material changes to assumptions have occurred during • The measurement period for unutilised loan commitments
utilise the same approach as on-balance sheet exposures

NOTES 145
ii) Key management assumptions (continued)
SICR and low credit risk Master rating scale band SICR trigger
Home services, vehicle and asset finance, card, (from origination)
personal, business and other lending products SB 1 - 12 Low credit risk
All exposures are assessed to determine whether there has SB 13 - 20 3 rating or more
been SICR at the reporting date, in which case an impairment
provision equivalent to the lifetime expected loss is recognised. SB 21 - 25 1 rating or more
SICR thresholds, which are behaviour score based, are
derived for each portfolio vintage of exposures with similar
credit risk and are calibrated over time to determine which Incorporation of forward looking information in
exposures reflect deterioration relative to the originated ECL measurement
population and consequently reflect an increase in credit
risk. Behaviour scorecards are based on a combination of The Group determines the macroeconomic outlook, over a
factors which include the information relating to customers, planning horizon of at least three years, based on the Group’s
transactions and delinquency behaviour (including the global outlook and its global view of the economy.
backstop when contractual payments are more than 30 days
past due) to provide a quantitative assessment (score), and For Business and Commercial Clients (BCC)and Consumer
more specifically, a ranking of customer creditworthiness. and High Net Worth Clients (CHNW) these forward looking
The creditworthiness of a customer is summarised by a score, economic expectations are included in the ECL where
with high scores corresponding to low-risk customers, and adjustments are made based on the Group’s macroeconomic
conversely, low scores corresponding to high-risk customers. outlook, using models that correlate these parameters with
These scores are often taken into account in determining the macro-economic variables. Where modelled correlations are not
probability of default (PD) including relative changes in PD. viable or predictive, adjustments are based on expert judgement
Credit risk has increased since initial recognition when these to predict the outcomes based on the Group’s macro-
criterion are met. economic outlook expectations. In addition to forward-looking
macroeconomic information, other types of FLI (Forward
The Group determines the SICR threshold by utilising an Looking Information), such as specific event risk, have been
appropriate transfer rate of exposures that are less than 30 taken into account in ECL estimates when required, through the
days past due (DPD) to stage 2. This transfer rate is such that application of out-of-model adjustment.
the proportion of the 0-29 DPD book transferred into stage 2
is no less than the observed 12-month roll rate of 0-29 days The Group’s macroeconomic outlooks are incorporated in
accounts into 30 or more days in arrears. The SICR thresholds corporate, sovereign and bank clients rating and include specific
are reviewed regularly to ensure that they are appropriately forward-looking economic considerations for the individual
calibrated to identify SICR by portfolio vintage and to client. The client rating thus reflects the expected client risk
consequently facilitate appropriate impairment coverage. for the Group’s expectation of future economic and business
conditions. Further adjustments, based on point-in-time
Where behaviour scores are not available, historical levels of market data, are made to the PDs assigned to each risk grade
delinquency are applied in determining whether there has been to produce PDs and ECL representative of existing market
SICR. For all exposures, the rebuttable presumption of 30 days conditions.
past due as well as exposures classified as either debt review or
as ‘watch-list’ are used to classify exposures within stage 2. Ugandan economic expectations
The base case is the forecast showing the most likely trend
Corporate, sovereign and bank lending products in which key economic indicators will evolve. It is assigned a
(including certain business banking exposures) 65% probability. In this instance, the CBR is expected hold at
6% through 2022. as the Monetary Policy Committee (MPC)
The Group uses a 25-point master rating scale to quantify
maintains an accommodative stance to support economic
the credit risk for each exposure. On origination, each client is
recovery and spur private sector growth through affordable
assigned a credit risk grade within the Group’s 25-point master
credit from Financial Institutions. GDP growth recovers in
rating scale.
FY2021/22 largely due to positive base effects and an increase
Ratings are mapped to PDs by means of calibration formulae in oil related investments in H1:22.
that use historical default rates and other data for the applicable
The bear case on the other hand shows the possible pessimistic
portfolio. These credit ratings are evaluated at least annually or
trend in which key economic indicators may evolve and is
more frequently as appropriate.
assigned a probability of 25%. For instance, the CBR is hiked
CIB exposures are evaluated for SICR by comparing the in early 2022 to counter rising inflation expectations occurring
credit risk grade at the reporting date to the origination credit from largely supply side factors. Also, in this bearish scenario,
risk grade. Where the relative change in the credit risk grade owing to the variants of Covid 19 that are resistant to current
exceeds certain pre- defined ratings’ migration thresholds or, vaccinations and slow vaccine roll out, new Covid 19 cases spike
when a contractual payment becomes more than 30 days in Uganda which overwhelms the health system. This forces the
overdue (IFRS 9’s rebuttable presumption), the exposure is government to retain some public health measures and also
classified within stage 2. These pre- defined ratings’ migration increase their stringency until 2023.
thresholds have been determined based on historic default
The bull case shows the possible optimistic trend in which key
experience which indicate that higher rated risk exposures are
economic indicators may evolve and is assigned a probability
more sensitive to SICR than lower risk exposures. Based on
of 10%. For instance, the CBR is reduced much earlier as the
an analysis of historic default experience, exposures that are
Monetary Policy Committee (MPC) looks beyond positive
classified by the Group’s master rating scale as investment
headline GDP growth numbers being spurred by unwinding base
grade are assessed for SICR at each reporting date but are
effects and looks to revive tepid private sector credit growth.
considered to be of a low credit risk. To determine whether a
The UShs continues to remain range bound underpinned by
client’s credit risk has increased significantly since origination,
rising FDI and foreign portfolio investments in government
the Group would need to determine the extent of the change in
securities. The relatively stable UShs also helps spur private
credit risk using the table below.
consumption expenditure, thereby improving asset quality for
commercial banks and lowering NPLs.

146 NOTES
The following table shows the main macroeconomic factors used to estimate the forward-looking impact on the IFRS9 provision on
financial assets. For each scenario, namely, the base case, bullish and bearish scenario, the average values of the factors over the next
12 months, and over the remaining forecast period, are presented.
2021 Base scenario Bearish scenario Bullish scenario

Remaining Remaining
Next 12 Remaining Next 12 forecast Next 12 forecast
2 2 2
Macroeconomic factors months3 forecast period months3 period months3 period
Uganda
Inflation (%) 5.5 3.7 5.8 4.5 3.6 2.5
Real GDP1 (%) 6.0 7.3 4.5 6.0 7.5 7.9
Policy Rate (%) 6.5 6.0 8.0 8.0 6.0 5.5
91-Day T-Bill (%) 7.5 6.7 10.4 10.1 6.4 5.9
Exchange rate USD/UShs 3,600 3,650 3,800 4,027 3,500 3,480
Prime lending rate (%) 16.0 15.5 17.5 17.5 15.5 15.0
2020
Inflation (%) 4.8 4.2 6.4 5.6 4.1 2.9
Real GDP1 (%) 5.0 6.7 3.9 6.0 6.4 7.5
Policy Rate (%) 7.0 6.5 9.0 8.0 6.5 5.5
91-Day T-Bill (%) 8.3 8.4 11.0 10.5 7.5 7.6
Exchange rate USD/UShs 3,808 3,961 4,240 4,271 3,719 3,796
Prime lending rate (%) 16.0 14.5 18.0 16.0 15.5 13.5
1 Gross domestic product

2 The remaining forecast period is 2023 to 2025
3 Next 12 months following 31 December 2021 is 1 January 2022 to 31 December 2022
2020 - The scenario weighted average is: Base at 55%, Bull at 25% and Bear at 20%.
Sensitivity analysis of CIB forward looking impact on IFRS 9 provision

Management assessed and considered the sensitivity of the IFRS 9 provision against the forward looking economic conditions at a
client level. The reviews and ratings of each client are performed at least annually. This process entails credit analysts completing a
credit scorecard and incorporating forward looking information. The weighting is reflected in both the determination of significant
increase in credit risk as well as the measurement of the resulting IFRS 9 provision for the individual client. Therefore the impact
of forward looking economic conditions is embedded into the total IFRS 9 provision for each CIB client and cannot be stressed or
separated out of the overall CIB IFRS 9 provision.
Sensitivity analysis of BCC and CHNW forward looking impact on IFRS 9 provision
The following table shows a comparison of the forward-looking impact on the IFRS 9 provision as at 31 December 2021 based on the
probability weightings of the above three scenarios resulting from recalculating each of the scenarios using a 100% weighing of the
above factors.
Macro economic factors

2021 2020
Forward looking Forward looking
component of ECL Income statement component of ECL Income statement
provision (release)/charge provision (release)/charge
Allowances for credit losses UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Scenarios
100% Base 3,068,074 723,727 2,344,346 (3,870,455)
100% Bear 14,353,920 1,933,940 12,419,980 317,540
100% Bull 377,783 (1,537,989) 1,915,772 (1,870,374)
Total ECL impact 17,799,777 1,119,678 16,680,098 (5,423,289)
BCC and CHNW Impairment Model The corporate model

Overlays: Counterparty specific review of the population was undertaken
to determine counterparties with indicators of elevated risk. To
The portfolio model these counterparties, we applied downgrades, thus the linked
For the portfolio model the Group applied an enhanced Probability of Default (PD) and higher impairments for any
Significant Increase in Credit Risk (SICR) rule that includes counterparties with elevated risk. The overlay was applied to
downgrading customers who demostrate reduced ability to identified increased credit risk and thus transfer accounts from
make loan repayments as evidenced by turnover on their Stage 1 to Stage 2. The overlay proactively resulted into transfer
operational accounts. These transfers are done in addition to of counterparties to Stage 2 in account of additional stress.
the other SICR components of historical delinquency and any The provisions are therefore accounted for under this stage 2
other qualitative factors. resulting into additional provisions of Ushs 4,888 Million. This
amount is derived by comparing the total ECL position after
including these transfers and the total ECL position without
these transfers as at 31 December 2021 (2020: UShs 1,676
million).

NOTES 147
The forward-looking model Post- realisation of the collateral, the shortfall amount can
be written off if it meets the second requirement listed
Adoption of a minimum forward-looking for loans under stage
above. CIB products, write-off are assessed on a case-by-
3 percentage (PD equivalent). This is obtained by comparing
case basis, and approved by credit governance committee
the statistically derived Forward Looking loans under stage
based on the individual facts and circumstances.
3 ratio based on most recent trends and comparing it to the
actual under stage 3 ratio and in instances where the latter is For unsecured exposures, post write-off collection and
greater, the parameter is adopted after applying an incremental enforcement activities include outsourcing to external
percentage based on information available at the time. This debt collection agents as well as, collection/settlement
model overlay has been adopted to cater for any uncertainty arrangements to assist clients to settle their outstanding debt.
that comes with the impact of Covid 19 on the BCC and CHNW
portfolio at large. The Group continuously monitors and reviews when exposures
are written off, the levels post write of recoveries as well as the
key factors causing post write-off recoveries. which ensure that
Approach to stage 3 impairment the Group’s point of write-off remains appropriate and that post
Overlay applied on inputs to the provisions of loans under write-off recoveries are within expectable levels after time.
stage 3 counterparties in terms of the timing of the cashflows
expected to be realised from the recovery and rehabilitation; we Curing
maintained cashflows in the initial projection period irrespective Continuous assessment is required to determine whether the
of passing of time and drawing closer to the realisation date conditions that led to a financial asset being considered to be
thus maintaining the provisions as we monitor the Covid credit impaired (i.e. stage 3) still exist. Distressed restructured
environment. financial assets that no longer qualify as credit impaired
remain within stage 3 for a minimum period of six months
Default (i.e. six full consecutive monthly payments per the terms and
The definition of default, which triggers the credit impaired conditions). In the case of financial assets with quarterly or
classification (stage 3), is based on the Group’s internal credit longer dated repayment terms, the classification of a financial
risk management approach and definitions. Whilst the specific asset out of stage 3 may be made subsequent to an evaluation
determination of default varies according to the nature of the by the Group’s CIB or BCC and CHNW Credit Governance
product, it is compliant to the Basel definition of default, and Committee (as appropriate), such evaluation will take into
generally determined as occurring at the earlier of: account qualitative factors in addition to compliance with
payment terms and conditions of the agreement. Qualitative
• where, in the Group’s view, the counterparty is considered factors include compliance with covenants and compliance
to be unlikely to pay amounts due on the due date or with existing financial asset. Where it has been determined
shortly thereafter without recourse to actions such as the that a financial asset no longer meets the criteria for significant
realisation of security; or increase in credit risk, the financial asset will be moved from
stage 2 (lifetime expected credit loss model) back to stage 1
• when the counterparty is past due for more than 90 days
(12-month expected credit loss model) prospectively.
(or, in the case of overdraft facilities in excess of the current
limit). Stanbic Uganda’s forward-looking economic
The Group has not rebutted the 90 days past due rebuttable expectations were applied in the determination
presumption. of the ECL at the reporting date
Write off policy A range of base, bullish and bearish forward- looking economic
expectations were determined, as at 31 December 2021, for
An impaired loan is written off once all reasonable attempts at
inclusion in Stanbic Bank Uganda Limited's forward-looking
collection have been made and there is no material economic
process and ECL calculation.
benefit expected from attempting to recover the balance
outstanding (i.e. no reasonable expectation of recovery). The Group’s response to Covid 19
This assessment considers both qualitative and quantitative
information, such as past performance, behaviour and Background
recoveries. The Group assesses whether there is a reasonable
expectation of recovery at an exposure level. As such once the Following the global novel corona virus (Covid-19) outbreak
below criteria are met at an exposure level, the exposure is in March 2020, the Government announced that in a bid to
written off. curb the spread of the Covid-19 virus, specific measures would
take effect, and this resulted in a hard lockdown that impacted
The following criteria must be met before a financial asset can majority of the sectors in the economy, with only minimal
be written off: operations limited to the essential service sectors.
• the financial asset has been in default for the period
In April 2020, Bank of Uganda (BOU) put in place credit relief
defined for the specific product (i.e. vehicle and asset
measures aimed at maintaining financial stability and reducing
finance, mortgage loans, etc.) which is deemed sufficient
the economic impact of Covid-19. Guidelines were also issued
to determine whether the Group is able to receive any
to Commercial Banks, Credit Institutions and Microfinance
further economic benefit from the impaired loan. The
Deposit-taking Institutions (MDIs) on how to apply the
period defined for unsecured BCC and CHNW products
measures. BOU allowed supervised financial institutions to
are determined with reference to post-default payment
restructure any loan affected by the Covid-19 pandemic as long
behaviour such as cumulative delinquency, as well as
as this was done within one-year effective 1 April 2020. Within
an analysis of post write-off re-coveries. Factors that are
this period, eligible borrowers can have their loans restructured
within the Group’s control are assessed and considered in
for up to two (2) times, and any further restructuring can be
the determination of the period defined for each product.
applied for and approved by BOU. In response to the pandemic,
The post-default payment period is generally once the
the Group initiated a Rapid Risk Review exercise to assess the
rehabilitation probability (repayment of arrear instal-
credit risk profile of all the exposures on the book given the
ments) is considered low to zero, and a period of 180 days
unfolding disruption triggered by the pandemic.
post default with no payments; and
Counterparties with perceived high risk were placed under
• at the point of write-off, the financial asset is fully impaired
close monitoring as the pandemic evolved. Regular sector
(i.e. 100% ECL allowance) with no reasonable expectation of
focused reviews were instituted and sectors under increased
recovery of the asset, or a portion thereof. As an exception
risk were identified. The risk appetite for the affected sectors
to the above requirements: where the exposure is secured
was moderated accordingly. Furthermore, a framework to
(or for collateralised structures), the impaired exposure can
consider credit accommodations directly linked to Covid-19 was
only be written off once the collateral has been realised.

148 NOTES
established to expedite credit relief with due consideration of The portfolio is reviewed on an ongoing basis to assess direct
the risk assumed and in accordance with BOU guidelines. vulnerabilities and secondary contagion resulting from Covid-19.
The Group conducts monthly sectoral reviews of bank accounts
2021 update on the Group’s response to Covid 19 for restructured entities to observe patterns of stress across the
The Covid-19 outbreak rapidly evolved in 2021 with a significant portfolio.
mid-year increase in cases driven by the Delta variant. On 7th
Given the evolving nature of the pandemic, management on a
June 2021, the Government imposed a 42-day nation-wide
forward-looking basis, has assessed the provisions taken as
lockdown to prevent the spread of the virus. Schools and all
adequate to cover the inherent risk resulting from Covid-19
institutions of learning were closed, and non-essential travel
stress. The Credit Risk Management Committee and the Board
was restricted.
Credit Committee are provided with monthly and quarterly
During the year, Bank of Uganda extended the Credit Relief updates on Covid-19 related restructures respectively.
period by 6 months to the end of September 2021 in response
to the disruption triggered by the global pandemic. Following Progress on normalization of activities is reported to the
the expiry of the relief period on 30 September 2021, Bank of Credit Risk Management Committee and the Board Credit
Uganda granted an additional one-year window within which Committee. All clients across all segments remain subject to
supervised financial institutions may at their discretion grant risk reviews with a view to establish the vulnerable entities given
credit relief to borrowers in the education and hospitality the emerging situation under Covid-19. Overall, the impact of
sectors. Covid-19 on the portfolio has dampened economic activity with
temporary effects noted save for tourism linked businesses,
The credit relief measures are aimed at helping commercial trade related SMEs and some segments of the real estate
banks and other supervised financial institutions to continue sectors.
restructuring loans and provide loans to the commercial banks
and financial institutions to lend out to the business community. Basing on the information available, adequate provisions
have been taken on a forward-looking basis and management
The Group focused on early engagement of borrowers in
has determined that the impairment model outputs were
high-risk segments and applied Bank of Uganda credit relief
reasonable.
measures where appropriate. Management continues to
actively monitor the heightened risk environment to identify and
appropriately respond to any potential challenges.
Outstanding Covid 19 related restructures as at 31 December 2021
Corporate and
Consumer and Business and Investment
High Net worth Consumer Clients Banking
Ushs’000 UShs’000 UShs’000
Credit Exposure
Restructured loans and advances. 70,747,282 237,341,897 3,485,432
provisions held
Stage 1 738,428 2,035,466 27,400
Stage 2 2,126,577 21,549,584 44,579
Stage 3 3,583,311 10,762,824 -
Outstanding Covid 19 related restructures as at 31 December 2020
Corporate and
Personal and Investment
Business Banking Banking
UShs’000 UShs’000
Credit exposure
Restructured loans and advances. 149,497,261 7,224,651

Provisions held
Stage 1 741,460 3,547
Stage 2 2,009,394 44,579
Stage 3 3,235,698 -
Fair value an amount that represents a forced transaction, involuntary

liquidation or a distressed sale. Information obtained from
Financial instruments the valuation of financial instruments is used to assess the
In terms of IFRS, the Group is either required to or elects performance of the Group and, in particular, provides assurance
to measure a number of its financial assets and financial that the risk and return measures that the Group has taken are
liabilities at fair value, being the price that would, respectively, accurate and complete.
be received to sell an asset or paid to transfer a liability in an
Valuation process
orderly transaction in the principal (or most advantageous)
market between market participants at the measurement The Group’s valuation control framework governs internal
date. Regardless of the measurement basis, the fair value control standards, methodologies and procedures over its
is required to be disclosed, with some exceptions, for all valuation processes, which include:
financial assets and financial liabilities. Fair value is a market- Prices quoted in an active market: The existence of quoted
based measurement and uses the assumptions that market prices in an active market represents the best evidence of fair
participantswould use when pricing an asset or liability under value. Where such prices exist, they are used in determining the
current market conditions. When determining fair value it is fair value of financial assets and financial liabilities.
presumed that the the Group is a going concern and is not

NOTES 149
Valuation techniques: Where quoted market prices are assets and financial liabilities on a net basis similar to how
unavailable, the Group establishes fair value using valuation market participants would price the net risk exposure at the
techniques that incorporate observable inputs, either directly, measurement date.
such as quoted prices, or indirectly, such as those derived
from quoted prices, for such assets and liabilities. Parameter Computer software intangible assets
inputs are obtained directly from the market, consensus pricing The Group reviews its assets under construction and assets
services or recent transactions in active markets, whenever brought into use for impairment at each reporting date and
possible. Where such inputs are not available, the Group makes tests the carrying value for impairment whenever events
use of theoretical inputs in establishing fair value (unobservable or changes in circumstances indicate that the carrying
inputs). Such inputs are based on other relevant input sources amount (or components of the carrying amount) may not be
of information and incorporate assumptions that include prices recoverable. These circumstances include, but are not limited
for similar transactions, historic data, economic fundamentals, to, new technological developments, obsolescence, changes
and research information, with appropriate adjustments to in the manner in which the software is used or is expected
reflect the terms of the actual instrument being valued and to be used, changes in discount rates, significant changes
current market conditions. in macroeconomic circumstances or changes in estimates
Changes in these assumptions would affect the reported fair of related future cash benefits. The impairment tests are
values of these financial instruments. Valuation techniques performed by comparing an asset’s recoverable amount to its
used for financial instruments include the use of financial carrying amount. Through the performance of the impairment
models that are populated using market parameters that are test, only one intangible asset has been identified as impaired:
corroborated by reference to independent market data, where The review and testing of assets for impairment inherently
possible, or alternative sources, such as, third-party quotes, requires significant management judgement as it requires
recent transaction prices or suitable proxies. The fair value management to derive the estimates of the identified assets’
of certain financial instruments is determined using industry future cash flows in order to derive the asset’s recoverable
standard models such as, discounted cash flow analysis and amount.
standard option pricing models. These models are generally
used to estimate future cash flows and discount these back During 2021, the Group’s computer software assets’
to the valuation date. For complex or unique instruments, recoverable values were determined to be higher than their
more sophisticated modelling techniques may be required, carrying values and therefore not impaired (Impairment 2020:
which require assumptions or more complex parameters such UShs 1,508 million).
as correlations, prepayment spreads, default rates and loss
severity. Current and deferred tax
Valuation adjustments: Valuation adjustments are an integral The Group is subject to direct and indirect taxation
part of the valuation process. Adjustments include, but are not requirements which are determined with reference to
limited to: transactions and calculations for which the ultimate tax
determination has an element of uncertainty in the ordinary
• credit spreads on illiquid issuers course of business. The Group recognise provisions for tax
• implied volatilities on thinly traded instruments based on objective estimates of the amount of taxes that may
be due. Where the final tax determination is different from
• correlation between risk factors the amounts that were initially recorded, such differences will
• prepayment rates impact the income tax and deferred tax provisions, disclosed
• other illiquid risk drivers. in note 14 and note 20, respectively, in the period in which such
determination is made. Uncertain tax positions are provided
In making appropriate valuation adjustments, the Group applies
for in accordance with the criteria defined within IAS 12 Income
methodologies that consider factors such as bid-offer spreads,
Taxes and IFRIC 23 Uncertainty over Income Tax treatments
liquidity, counterparty and own credit risk. Exposure to such
(IFRIC 23). Deferred tax assets are reviewed at each reporting
illiquid risk drivers is typically managed by:
date and are reduced to the extent that it is no longer probable
• using bid-offer spreads that are reflective of the relatively that the related tax benefit will be realised. The most significant
low liquidity of the underlying risk driver management assumption is the forecasts that are used to
support the probability assessment that sufficient taxable
• raising day one profit or loss provisions in accordance with
profits will be generated by the entities in the Group in order to
IFRS
utilise the deferred tax assets.
• quantifying and reporting the sensitivity to each risk driver
• prepayment rates Provisions
• limiting exposure to such risk drivers and analysing The principal assumptions taken into account in determining
exposure on a regular basis. the value at which provisions are recorded, include determining
whether there is an obligation, as well as assumptions about
Validation and control: All financial instruments carried at the probability of the outflow of resources and the estimate of
fair value, regardless of classification, and for which there are the amount and timing for the settlement of the obligation. For
no quoted market prices for that instrument, are fair valued legal provisions, management assesses the probability of the
using models that conform to international best practice and outflow of resources by taking into account historical data and
established financial theory. These models are validated by the the status of the claim in consultation with the Group’s legal
Group’s model validation unit. This control applies to both off- counsel.
the-shelf models, as well as those developed internally by the
Group. Further, all inputs into the valuation models are subject In determining the amount and timing of the obligation once
to price validation procedures carried out by the Group’s it has been assessed to exist, management exercises its
market risk unit. Such price validation is performed on at least judgement by taking into account all available information,
a monthly basis, but daily where possible given the availability including that arising after the reporting date up to the date
of the underlying price inputs. Valuation comparisons are of the approval of the financial results. Refer to note 34 off-
also performed, and any significant variances noted are Balance sheet Financial instruments, contingent liabilities and
appropriately investigated. commitments disclosures.
Portfolio exception: The Group has, on meeting certain

qualifying criteria, elected the portfolio exception which allows
an entity to measure the fair value of certain groups of financial

150 NOTES
(iii) Detailed Accounting Policies accounting mismatch that would otherwise arise.
(a) Financial instruments (v) Fair value through profit or loss – default
Initial measurement - financial instruments Financial assets that are not classified into one of the above-
All financial instruments are measured initially at fair value mentioned financial asset categories.
plus directly attributable transaction costs and fees, except for
Subsequent measurement
those financial instruments that are subsequently measured at
fair value through profit or loss where such transaction costs Subsequent to initial measurement, financial assets are
and fees are immediately recognized in profit or loss. Financial classified in their respective categories and measured at either
instruments are recognized (derecognized) on the date the amortized cost or fair value as follows:
Group commits to purchase (sell) the instruments (trade date
(i) Amortised cost
accounting).
Amortized cost using the effective interest method with
Financial assets interest recognized in interest income, less any expected
credit impairment losses which are recognized as part of credit
Nature impairment charges.
(i) Amortised cost
Directly attributable transaction costs and fees received are
A debt instrument that meets both of the following conditions capitalised and amortised through interest income as part of
(other than those designated at fair value through profit or the effective interest rate.
loss):
(ii) Fair value through OCI
• Held within a business model whose objective is to hold
Debt instrument: Fair value, with gains and losses recognised
the debt instrument (financial asset) in order to collect
directly in the fair value through OCI reserve. When a debt
contractual cash flows; and
financial asset is disposed of, the cumulative fair value
• The contractual terms of the financial asset give rise on adjustments, previously recognised in OCI, are reclassified
specified dates to cash flows that are solely payments of to the other gains and losses on financial instruments within
principal and interest on the principal amount outstanding. non-interest revenue. Expected credit impairments losses are
recognised as part of credit impairment charges. However,
This assessment includes determining the objective of holding for these FVOCI debt instruments the expected credit loss is
the asset and whether the contractual cash flows are consistent recognised in OCI and does not reduce the carrying amount
with a basic lending arrangement. Where the contractual terms of the financial asset in the statement of financial position.
introduce exposure to risk or volatility that are not considered Interest income on a debt financial asset is recognised in
minimal and are inconsistent with a basic lending arrangement, interest income in terms of the effective interest rate method.
the financial asset is classified as fair value through profit or Dividends received are recognised in interest income within
loss - default. profit or loss.
(ii) Fair value through OCI (iii) Held for trading
A debt instrument that meets both of the following conditions Fair value, with gains and losses arising from changes in fair
(other than those designated at fair value through profit or value (including interest and dividends) recognised in trading
loss): revenue.
• Held within a business model in which the debt instrument (iv) Designated at fair value through profit or loss
(financial asset) is managed to both collect contractual Fair value gains and losses (including interest and dividends)
cashflows and sell financial assets; and on the financial asset recognised in the income statement as
• The contractual terms of the fi asset give rise on specific part of other gains and losses on financial instruments within
dates to cash flows that are solely payments of principal and non-interest revenue.
interest on the principal amount outstanding. (v) Fair value through profit or loss – default
This assessment includes determining the objective of Fair value gains and losses (including interest and dividends) on
holding the asset and whether the contractual cash flows the financial asset are recognised in the income statement as
are consistent with a basic lending arrangement. Where the part of other gains and losses on financial instruments within
contractual terms introduce exposure to risk or volatility that non-interest revenue.
are not considered de minimis and are inconsistent with a basic
lending arrangement, the financial asset is classified as fair Impairment
value through profit or loss - default. Equity financial assets ECL is recognised on debt financial assets classified as at either
which are not held for trading and are irrevocably elected (on an amortised cost or fair value through OCI, financial guarantee
instrument-by-instrument basis) to be presented at fair value contracts that are not designated at fair value through profit or
through OCI. loss as well as loan commitments that are not measured at fair
value through profit or loss. The measurement basis of the ECL
(iii) Held for trading of a financial asset includes assessing whether there has been
Those financial assets acquired principally for the purpose of a SICR at the reporting date which includes forward-looking
selling in the near term (including all derivative financial assets) information that is available without undue cost or effort at
and those that form part of a portfolio of identified financial the reporting date about past events, current conditions and
instruments that are managed together and for which there is forecasts of future economic conditions. The measurement
evidence of a recent actual pattern of short-term profit taking. basis of the ECL, which is set out in the table that follows, is
measured as the unbiased and probability- weighted amount
(iv) Designated at fair value through profit or loss that is determined by evaluating a range of possible outcomes,
Financial assets are designated to be measured at fair value the time value of money and forward-looking information.
through profit or loss to eliminate or significantly reduce an

NOTES 151
(iii) Detailed Accounting Policies
A 12-month ECL is calculated for financial assets which are neither credit-impaired on origination nor
Stage 1
for which there has been a SICR.
A lifetime ECL is calculated for financial assets that are assessed to have displayed a SICR since origi-
Stage 2
nation and are not considered low credit risk.
A lifetime ECL is calculated for financial assets that are assessed to be credit impaired.The following
Stage 3 criteria are used in determining whether the financial asset is impaired:
• default
(credit impaired
• significant financial difficulty of borrower and/or modification
assets) • probability of bankruptcy or financial reorganisation
• disappearance of an active market due to financial difficulties.
The key components of the impairment methodology are described as follows:
At each reporting date the Group assesses whether the credit risk of its exposures has increased
Significant significantly since initial recognition by considering the change in the risk of default occurring over
increase in credit the expected life of the financial asset.
risk (SICR) Credit risk of exposures which are overdue for more than 30 days are also considered to have increased
significantly.
Exposures are generally considered to have a low credit risk where there is a low risk of default, the
exposure has a strong capacity to meet its contractual cash flow obligations and adverse changes
Low credit risk
in economic and business conditions may not necessarily reduce the exposure’s ability to fulfil its
contractual obligations.
The Group’s definition of default has been aligned to its internal credit risk management definitions
and approaches. A financial asset is considered to be in default when there is objective evidence of
impairment. The following criteria are used in determining whether there is objective evidence of
impairment for financial assets or group of financial assets:
• significant financial difficulty of borrower and/or modification (i.e. known cash flow difficulties
experienced by the borrower)
Default • a breach of contract, such as default or delinquency in interest and/or principal payments
• disappearance of active market due to financial difficulties
• it becomes probable that the borrower will enter bankruptcy or other financial reorganisation
• where the Group, for economic or legal reasons relating to the borrower’s financial difficulty, grants
the borrower a concession that the Group would not otherwise consider.
Exposures which are overdue for more than 90 days are also considered to be in default.
Forward-looking information is incorporated into the Group’s impairment methodology calculations

and in the Group’s assessment of SICR. The Group includes all forward-looking information which is
Forward-looking
reasonable and available without undue cost or effort. The information will typically include expected
information
macro-economic conditions and factors that are expected to impact portfolios or individual counterparty
exposures.
Financial assets are written off when there is no reasonable expectation of recovery. Financial assets
Write-off
which are written off may still be subject to enforcement activities.
ECLs are recognised within the statement of financial position as follows:
Financial assets
measured at Recognised as a deduction from the gross carrying amount of the asset (group of assets). Where the
amortised cost impairment allowance exceeds the gross carrying amount of the asset (group of assets), the excess is
(including loan recognised as a provision within other liabilities.
commitments)
Off-balance
sheet exposures
Recognised as a provision within other liabilities.
(excluding loan
commitments)
Financial assets
measured at fair Recognised in the fair value reserve within equity. The carrying value of the financial asset is
value through recognised in the statement of financial position at fair value.
OCI

152 NOTES
Financial liabilities Amortised cost

All other financial liabilities not included in the above categories.
Nature
Subsequent measurement: Subsequent to initial
Held-for-trading measurement, financial liabilities are classified in their
Those financial liabilities incurred principally for the purpose of respective categories and measured at either amortised cost or
fair value as follows:
repurchasing in the near term (including all derivative financial
liabilities) and those that form part of a portfolio of identified Held-for-trading
financial instruments that are managed together and for which
Fair value, with gains and losses arising from changes in fair
there is evidence of a recent actual pattern of short-term profit
value (including interest and dividends) recognised in trading
taking.
revenue.
Designated at fair value through profit or loss
Designated at fair value through profit or loss
Financial liabilities are designated to be measured at fair value
Fair value, with gains and losses arising from changes in fair
in the following instances:
value (including interest and dividends but excluding fair value
• to eliminate or significantly reduce an accounting mismatch gains and losses attributable to own credit risk) are recognised
that would otherwise arise where the financial liabilities are in the other gains and losses on financial instruments as part of
managed and their performance evaluated and reported on non-interest revenue.
a fair value basis.
Fair value gains and losses attributable to changes in own credit
• where the financial liability contains one or more embedded risk are recognised within OCI, unless this would create or
derivatives that significantly modify the financial liability’s enlarge an accounting mismatch in which case the own credit
cash flows. risk changes are recognised within trading revenue.
Amortised cost
Amortised cost using the effective interest method recognised
in interest expense.

NOTES 153
Derecognition and modification of financial assets and liabilities

Financial assets and liabilities are derecognised or modified in the following instances:
Derecognition Modification
Financial assets are derecognised when the Where an existing financial asset or liability is
contractual rights to receive cash flows from the replaced by another with the same counterparty
financial assets have expired, or where the Group on substantially different terms, or the terms of an
has transferred its contractual rights to receive existing financial asset or liability are substantially
cash flows on the financial asset such that it has modified, such an exchange or modification is
transferred substantially all the risks and rewards treated as a derecognition of the original asset or
of ownership of the financial asset. Any interest in liability and the recognition of
the transferred financial assets that is created or a new asset or liability at fair value, including
retained by the Group is recognised as a separate calculating a new effective interest rate, with the
asset or liability. difference in the respective carrying amounts being
recognised in other gains and losses on financial
The Group enters into transactions whereby it instruments within non-interest revenue. The
transfers assets, recognised in its statement date of recognition of a new asset is consequently
of financial position, but retains either all or a considered to be the date of initial recognition for
portion of the risks or rewards of the transferred impairment calculation purposes.
assets. If all or substantially all risks and rewards
are retained, then the transferred assets are If the terms are not substantially different for
not derecognised. Transfers of assets with financial assets or financial liabilities, the Group
the retention of all or substantially all risks recalculates the new gross carrying amount by
Financial and rewards include securities lending and discounting the modified cash flows of the financial
assets repurchase agreements. asset or financial liability using the original effective
interest rate. The difference between the new gross
When assets are sold to a third party with a carrying amount and the original gross carrying
concurrent total rate of return swap on the amount is recognised as a modification gain or loss
transferred assets, the transaction is accounted within credit impairments (for distressed financial
for as a secured financing transaction, similar asset modifications) or in other gains and losses on
to repurchase transactions. In transactions financial instruments within non-interest revenue
where the Group neither retains nor transfers (for all other modifications).
substantially all the risks and rewards of
ownership of a financial asset, the asset is
derecognised if control over the asset is lost. The
rights and obligations retained in the transfer are
recognised separately as assets and liabilities as
appropriate.
In transfers where control over the asset is
retained, the Group continues to recognise the
asset to the extent of its continuing involvement,
determined by the extent to which it is exposed
to changes in the value of the transferred asset.
Financial liabilities are derecognised when the

Financial financial liabilities’ obligation is extinguished, that
liabilities is, when the obligation is discharged, cancelled
or expires.
Financial guarantee contracts or loan Derivative financial instruments

commitment below market rate Derivatives and embedded derivatives
A financial guarantee contract is a contract that requires the In the normal course of business, the Group enters into a
Group(issuer) to make specified payments to reimburse the variety of derivative transactions for both trading and economic
holder for a loss it incurs because a specified debtor fails to hedging purposes.
make payment when due in accordance with the original or
modified terms of a debt instrument. Financial guarantee Derivative financial instruments are entered into for trading
contracts are initially recognised at fair value, which is generally purposes and for hedging foreign exchange, interest rate,
equal to the premium received, and then amortised over the life inflation, credit, commodity and equity exposures.
of the financial guarantee. Derivative instruments used by the Group in both trading and
A loan commitment is described in IFRS 9 as a firm commitment hedging activities include swaps, options, forwards, futures and
to provide credit under specified terms and conditions. It is a other similar types of instruments based on foreign exchange
binding promise from a lender that a specified amount of loan rates, credit risk, inflation risk, interest rates and the prices of
or line of credit will be made available to the named borrower at commodities and equities. Derivatives are initially recognised
a certain interest rate, during a certain period and, usually, for a at fair value. Derivatives that are not designated in a qualifying
certain purpose. Loan commitments at a below market interest hedge accounting relationship are classified as held-for-trading
rate are initially recognised when the Group become party to the with all changes in fair value being recognised within trading
irrevocable commitment at fair value. revenue.
Financial guarantee contracts (that are not designated at fair This includes forward contracts to purchase or sell
value through profit or loss) and loan commitments at a below commodities, where net settlement occurs or where physical
market interest rate, are subsequently measured at the higher delivery occurs, and the commodities are held to settle another
of the: derivative contract. All derivative instruments are carried as
financial assets when the fair value is positive and as financial
• ECL calculated for the financial guarantee or loan liabilities when the fair value is negative.
commitments; or
• unamortised premium.

NOTES
154 2.1 ) Accounting policy elections (continued)
Embedded derivatives included in hybrid instruments, where (iii) Financial investments

the host is a financial asset, is assessed in terms of the Included in the financial investments are investment securities
accounting policy on financial assets. In all other instances which include only interest-bearing assets classified as financial
(being non-financial host contracts and financial liabilities), the investments are measured at fair value. Where this information
embedded derivatives are treated and disclosed as separate is not available, fair value is estimated using quoted market
derivatives when their economic characteristics and risks are prices for securities with similar credit, maturity and yield
not closely related to those of the host contract, the terms of characteristics and equity securities at fair value through profit
the embedded derivative are the same as those of a stand- or loss.
alone derivative and the combined contract is not measured at
fair value through profit or loss. The host contract is accounted (iv) Financial liabilities
for and measured applying the relevant bank accounting policy. Included in the financial liabilities are due to other banks,
The method of recognising fair value gains and losses on customers and group companies. The estimated fair value of
derivatives designated as a hedging instrument depends on the deposits with no stated maturity, which includes non- interest-
nature of the hedge relationship. bearing deposits, is the amount repayable on demand. The
estimated fair value of fixed interest- bearing deposits and
Offsetting other borrowings not quoted in an active market is based on
discounted cash flows using interest rates for new debts with
Financial assets and liabilities are offset, and the net amount similar remaining maturity.
presented in the statement of financial position when, and
only when, the Group has a legal right to set off the recognised
amounts and it intends either to settle on a net basis or to
(b) Property and equipment
realise the asset and settle the liability simultaneously. Income Recognition and measurement
and expenses are presented on a net basis only when permitted Items of property and equipment are measured at cost less
under IFRSs, or for gains and losses arising from a group of accumulated depreciation and accumulated impairment losses.
similar transactions such as in the Group’s trading activity. Cost includes expenditures that are directly attributable to the
acquisition of the asset. The cost of self-constructed assets
Statutory credit risk reserve includes the cost of materials and direct labour, any other
In addition to the measurement of impairment losses on loans costs directly attributable to bringing the assets to a working
and advances in accordance with the International Financial condition for their intended use, the costs of dismantling and
Reporting Standards (IFRS) as set out above, the Group removing the items and restoring the site on which they are
is required by the Financial Institutions Act (FIA) 2004, as located and capitalised borrowing costs. Purchased software
amended to establish minimum provisions for losses on loans that is integral to the functionality of the related equipment
and advances as follows: is capitalised as part of that equipment. When parts of an
item of property or equipment have different useful lives, they
i) A specific provision for those loans and advances
are accounted for as separate items (major components) of
considered to be non- performing based on criteria and
property and equipment.
classification of such loans and advances established by
the Group of Uganda, as; Items of property and equipment are derecognised on disposal
or when no future economic benefits are expected from
a) Substandard assets being facilities in arrears between
their use or disposal. The gain or loss on disposal of an item
90 and 179 days – 20%.
of property and equipment is determined by comparing the
b) Doubtful assets being facilities in arrears between 180 proceeds from disposal with the carrying amount of the item
days and 364 days – 50%. of property and equipment and are recognised net within other
income in profit or loss.
c) Loss assets being facilities in arrears between over 364
days – 100%. Subsequent costs
ii) A general provision of at least 1% of their total outstanding The cost of replacing a part of an item of property or equipment
credit facilities net of specific provisions and interest in is recognised in the carrying amount of the item if it is probable
suspense. that the future economic benefits embodied within the part will
flow to the Group and its cost can be measured reliably.
Where provisions for impairment of loans and advances
determined in accordance with the Financial Institutions The carrying amount of the replaced part is derecognised. The
Act 2004, as amended exceed amounts determined costs of the day-to-day servicing of property and equipment are
in accordance with International Financial Reporting recognised in profit or loss as incurred.
Standards, the excess is taken to the statutory credit
Depreciation
risk reserve as an appropriation of retained earnings.
Otherwise, no further accounting entries are made. Depreciation is recognised in profit or loss on a straight-line
basis over the estimated useful lives of each part of an item
Included on the face of the statement of financial position, of property and equipment since this most closely reflects
the below Financial assets and liabilities have been the expected pattern of consumption of the future economic
reported separately. benefits embodied in the asset. Leased assets under finance
leases are depreciated over the shorter of the lease term and
(i) Due from other banks and group companies
their useful lives. Land is not depreciated.
Due from other banks includes inter-bank placements and
items in the course of collection. The estimated useful lives for the current and comparative
periods are as follows:
The fair value of floating rate placements and overnight
deposits is their carrying amount. The estimated fair value of Leasehold premises and buildings 50 years or over the
fixed interest-bearing deposits is based on discounted cash shorter period of lease
flows using prevailing money-market interest rates for debts
with similar credit risk and remaining maturity. Furniture and fittings 5 years
(ii) Loans and advances to customers Motor vehicles 5 years

Loans and advances are net of provisions for impairment. The Other computer equipment 5 years
estimated fair value of loans and advances represents the Laptops and personal computers 4 years
discounted amount of estimated future cash flows expected Office equipment 8 years
to be received. Expected cash flows are discounted at current
market rates to determine fair value.

NOTES
155
Depreciation methods, useful lives and residual values

are reassessed at each financial year-end and adjusted if
appropriate. Acquired computer software licences are capitalised on the
basis of the costs incurred to acquire and bring to use the
(c) Intangible assets specific software. These costs are amortised on the basis of the
expected useful lives.
Goodwill
Goodwill arises on business combinations and represents the (d) Impairment of non-financial assets
excess of the consideration transferred over the net fair value of Tangible assets (property, equipment, land and
the net identifiable assets, liabilities and contingent liabilities of
the acquiree and the fair value of the non–controlling interest in
right-of-use assets)
the acquiree. These assets are reviewed for impairment at each reporting
date and tested for impairment whenever events or changes
Goodwill on acquisitions is reported in the statement of financial in circumstances indicate that the carrying amount may not
position as an intangible asset. be recoverable. An impairment loss is recognised in non-
At each statement of financial position date, the Group trading and capital related items for the amount by which the
assesses whether there is any indication of impairment. If asset’s carrying amount exceeds its recoverable amount. The
such indications exist, the goodwill is first allocated to a cash recoverable amount is determined as the higher of an asset’s
generating unit (CGU) once an analysis is performed to assess fair value less costs to sell and value in use. Fair value less costs
whether the carrying amount of goodwill is fully recoverable. to sell is determined by ascertaining the current market value
of an asset and deducting any costs related to the realisation
A write down is made if the carrying amount exceeds the of the asset. In assessing value in use, the estimated future
recoverable amount. Impairment losses are allocated first to cash flows are discounted to their present value using a pre-tax
reduce the carrying amount of any goodwill allocated to a CGU discount rate that reflects current market assessments of the
and then to reduce the carrying amount of other assets in the time value of money and the risks specific to the asset. For the
CGU on a pro rata basis. purposes of assessing impairment, assets that cannot be tested
individually are grouped at the lowest cash generating units
Computer software development costs (CGUs). Impairment losses recognised in respect of CGUs are
Costs associated with maintaining computer software allocated first to reduce the carrying amount of any goodwill
programmes are recognised as an expense as incurred on a allocated to the CGU, and then to reduce the carrying amounts
straight line basis at rates appropriate to the expected lives of the other assets in the CGU on a pro rata basis. The carrying
of the assets (2 to 15 years) from the date that the asset amount of these other assets may, however, not be reduced
is available for use. Development costs that are directly below the higher of the CGU’s fair value less costs to sell and
attributable to the design and testing of identifiable and unique its value in use. Impairment losses recognised in prior periods
software products controlled by the Group are recognised as are assessed at each reporting date for any indications that
intangible assets when the following criteria are met: the loss has decreased or no longer exists. An impairment loss
is reversed if there has been a change in the estimates used
• It is technically feasible to complete the software product so to determine the recoverable amount. An impairment loss is
that it will be available for use. reversed through non-trading and capital related items.
• management intends to complete the software product and
use or sell it.
Goodwill
The accounting treatment is generally the same as that for
• there is an ability to use or sell the software product.
tangible assets except as noted below.
• it can be demonstrated how the software product will • Goodwill is tested annually for impairment and additionally
generate probable future economic benefits. when an indicator of impairment exists.
• adequate technical, financial and other resources to • An impairment loss in respect of goodwill is not reversed.
complete the development and to use or sell the software
product are available. Computer software
• the expenditure attributable to the software product during Intangible assets that have an indefinite useful life are tested
its development can be reliably measured. annually for impairment and additionally when an indicator of
impairment exists. The accounting treatment for computer
Directly attributable costs that are capitalised as part of the software and other intangible assets is otherwise the same as
software product include the software development employee for tangible assets
costs and an appropriate portion of relevant overheads.
(e) Cash and cash equivalents
Other development expenditures that do not meet these criteria
are recognised as an expense as incurred. Development costs For the purposes of the statement of cash flows, cash and cash
previously recognised as an expense are not recognised as an equivalents comprise balances with less than three months
asset in a subsequent period. Computer software development ‘maturity from the date of acquisition, including cash and non-
costs recognised as assets are amortised over their estimated restricted balances with the Central Bank treasury bills and
useful lives, which does not exceed fifteen years. other eligible bills, loans and advances to Banks, amounts due
from other banks and government securities.

NOTES
(f) Accounting for leases

TYPE AND DESCRIPTION STATEMENT OF FINANCIAL POSITION INCOME STATEMENT
Lessee accounting policies
Single lessee accounting Lease liabilities: Interest expense on lease liabilities:
model Initially measured at the present value of the A lease finance cost, determined with
contractual payments due to the lessor over the lease reference to the interest rate implicit
All leases are accounted for term, with the discount rate determined by reference in the lease or the Group’s incremental
by recognising a right-of- to the rate implicit in the lease unless (as is typically borrowing rate, is recognised within
use asset and a lease the case for the Group) this is not readily determinable, interest expense over the lease period.
liability except for: leases of in which case the Group’s incremental borrowing rate
low value assets; and leases on commencement of the lease is used. The Group’s Depreciation on right-of-use assets:
with a duration of twelve standardised funding transfer pricing rate is the base Subsequent to initial measurement, the
months or less. on which the incremental borrowing rate is calculated. right- of-use assets are depreciated on
Variable lease payments are only included in the a straight- line basis over the remaining
measurement of the lease liability if they depend on an term of the lease or over the remaining
index or rate. In such cases, the initial measurement economic life of the asset should this
of the lease liability assumes the variable element will term be shorter than the lease term
remain unchanged throughout the lease term. Other unless ownership of the underlying asset
variable lease payments are expensed in the period to transfers to the Group at the end of the
which they relate. On initial recognition, the carrying lease term, whereby the right-of- use
value of the lease liability also includes: assets are depreciated on a straight-
line basis over the remaining economic
• Amounts expected to be payable under any life of the asset. This depreciation is
residual value guarantee. recognised as part of depreciation and
• The exercise price of any purchase option granted amortisation.
in favour of the Group, should it be reasonably
certain that this option will be exercised. Termination of leases:
On derecognition of the right-of-use
• Any penalties payable for terminating the lease, asset and lease liability, any difference is
should the term of the lease be estimated on the recognised as a derecognition gain
basis of this termination option being exercised. or loss together with termination or
cancelation costs in profit or loss.
Subsequent to initial measurement, lease liabilities in-
crease as a result of interest charged at a constant rate
on the balance outstanding and are reduced for lease
payments made.
Right-of-use assets:
Initially measured at the amount of the lease liability,
reduced for any lease incentives received, and
increased for:
• lease payments made at or before commencement
of the lease;
• initial direct costs incurred; and
• the amount of any provision recognised where
the Group is contractually required to dismantle,
remove or restore the leased asset.
The Group applies the cost model subsequent to the
initial measurement of the right-of-use assets.
Termination of leases:
When the Group or lessor terminates or cancels a
lease, the right-of-use asset and lease liability are
derecognised.

NOTES
2.1 ) Accounting policy elections (continued) 157
TYPE AND DESCRIPTION STATEMENT OF FINANCIAL POSITION INCOME STATEMENT
Lessee Accounting policies continued
Accruals for unpaid lease charges, together with a

Payments made under these leases, net straight-line lease asset or liability,
being the difference of any incentives received from the lessor, between
All leases that meet the criteria as either a actual payments and the straight-line lease are recognised in operating
lease of a low value asset or a short term expenses on expense are recognised a straight-line basis over the term of
lease are accounted for on a straight-line the lease. When these leases are terminated before the lease period has
basis over the lease term. expired, any payment required to be made to the lessor by way of a penalty
is recognised as operating expenses in the period in which termination
takes place.
Reassessment of lease terms and lease modifications that are not

accounted for as a separate lease:
When the Group reassesses the terms of any lease (i.e., it re-assesses the
probability of exercising an extension or termination option) or modifies
the terms of a lease without increasing the scope of the lease or where
the increased scope is not commensurate with the stand-alone price, it
adjusts the carrying amount of the lease liability to reflect the payments
to be made over the revised term, which are discounted at the applicable
rate at the date of reassessment or modification. The carrying amount of
lease liability is similarly revised when the variable element of future lease
payments dependent on a rate or index is revised.
For reassessments to the lease terms, an equivalent adjustment is made

to the carrying amount of the right-of-use asset, with the revised carrying
amount being depreciated over the revised lease term. However, if the
carrying amount of the right-of-use asset is reduced to zero any further
reduction in the measurement of the lease liability, is recognised in profit
Reassessment and modification of leases or loss.
For lease modifications that are not accounted for as a separate lease, an
equivalent adjustment is made to the carrying amount of the right-of-use
asset, with the revised carrying amount being depreciated over the revised
lease term. However, for lease modifications that decrease the scope of the
lease the carrying amount of the right-of-use asset is decreased to reflect
the partial or full termination of the lease, with any resulting difference
being recognised in profit or loss as a gain or loss relating to the partial or
full termination of the lease.
Lease modifications that are accounted for as a separate lease:

When the Group modifies the terms of a lease resulting in an increase in
scope and the consideration for the lease increases by an amount com-
mensurate with a stand-alone price for the increase in scope, the Group
accounts for these modification as a separate new lease. This accounting
treatment equally applies to leases which the Group elected the short-
term lease exemption and the lease term is subsequently modified.
Lessor lease modifications
When the Group modifies the terms of a lease resulting in an increase in scope
and the consideration for the lease increases by an amount commensurate with a
stand-alone price for the increase in scope, the Group accounts for these modifica-
tions as a separate new lease.
Finance leases All other lease modifications that are not accounted for as a separate lease are
accounted for in terms of IFRS 9, unless the classification of the lease would have
been accounted for as an operating lease had the modification been in effect at
inception of the lease. These lease modifications are accounted for as a
separate new lease from the effective date of the modification and the net invest-
ment in the lease becomes the carrying amount of the underlying asset.
Modifications are accounted for as a new lease from the effective date of the
Operating leases modification.

158 NOTES
(g) Sale and repurchase agreements position date are disclosed in the dividend note. This is
transferred from retained earnings to a separate item of equity.
Sale and repurchase agreements and lending of
securities (including commodities) Earnings per share
Securities sold subject to linked repurchase agreements The Group presents basic and diluted earnings per share (EPS)
(repurchase agreements) are reclassified in the statement of data for its ordinary shares. Basic EPS is calculated by dividing
financial position as pledged assets when the transferee has the profit or loss attributable to ordinary shareholders of the
the right by contract or custom to sell or repledge the collateral. Group by the weighted average number of ordinary shares
The liability to the counterparty is included under deposits and outstanding during the period. Diluted EPS is determined by
current accounts or trading liabilities, as appropriate. adjusting the profit or loss attributable to ordinary shareholders
and the weighted average number of ordinary shares
Securities purchased under agreements to resell (reverse outstanding for the effects of all dilutive potential ordinary
repurchase agreements), at either a fixed price or the purchase shares.
price plus a lender’s rate of return, are recorded as loans
and included under trading assets or loans and advances, as
(j) Equity compensation plans
appropriate.
The parent company operates two equity settled share-based
For repurchase and reverse repurchase agreements measured compensation plans through which certain key management
at amortised cost, the difference between the purchase and staffs of the Group are compensated. The fair value of equity
sales price is treated as interest and amortised over the settled share options is determined on the grant date and
expected life using the effective interest method. accounted for as an employee service expense over the vesting
period of the share options. At each statement of financial
Securities lent to counterparties are retained in the annual
position date, the estimate of the number of options expected
financial statements. Securities borrowed are not recognised in
to vest is reassessed and adjusted against income over the
the annual financial statements unless sold to third parties. In
remaining vesting period.
these cases, the obligation to return the securities borrowed is
recorded at fair value as a trading liability. Income and expenses (k) Interest income and expense
arising from the securities borrowing and lending business are
recognised over the period of the transactions. Interest income and expense are recognised in the profit or
loss using the effective interest method for all interest-bearing
financial instruments, except for those classified at fair value
(h) Provisions, contingent assets and contingent
through profit or loss.
liabilities
The ‘Effective interest rate’ is the rate that exactly discounts
Provisions estimated future payments or receipts through the expected life
Provisions are recognised when the Group has a present legal of the financial instrument to:
or constructive obligation as a result of past events, where it
• The gross carrying amount of the financial assets; or
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable • The amortised cost of the financials liability.
estimate of the amount of the obligation can be made.
When calculating the effective interest rate for financial
Employee entitlements to annual leave and long service leave instruments other than purchased or originated credit impaired
are recognised when they accrue to employees. A provision is assets, the Group estimates future cash flows considering
made for the estimated liability for annual leave and long- all contractual terms of the financial instrument but not ECL.
service leave as a result of services rendered by employees up For purchased or originated credit- impaired financial assets,
to the statement of financial position date. a credit adjusted effective interest rate is calculated using
estimated future cash flows including ECL.
Provisions for legal claims are recognised on a prudent basis for
the estimated cost for all legal claims that have not been settled The calculation of the effective interest rate includes transaction
or reached conclusion at the reporting date. In determining costs and fees and points paid or received between parties of
the provision management considers the probability and likely the contract that are an integral part of the effective interest
settlement (if any). Reimbursements of expenditure to settle rate. Transaction costs include incremental costs that are
the provision are recognised when and only when it is virtually directly attributable to the acquisition or issue of a financial
certain that the reimbursement will be received asset or financial liability.
Contingent assets Interest income and expense presented in the income
Contingent assets are not recognised in the annual financial statement include interest on financial assets and financial
statements but are disclosed when, as a result of past events, liabilities measured at amortised cost.
it is probable that economic benefits will flow to the Group, but
When loans and advances become doubtful of collection, they
this will only be confirmed by the occurrence or non-occurrence
are written down to their recoverable amounts and interest
of one or more uncertain future events which are not wholly
income is thereafter recognised based on the original effective
within the Group’s control
interest rate that is used to discount future cash flows for the
Contingent liabilities purpose of measuring the recoverable amount.
Contingent liabilities include certain guarantees (other Fair value gains and losses on realised debt financial
than financial guarantees) and letters of credit and are not instruments, including amounts reclassified from OCI in respect
recognised in the annual financial statements but are disclosed of financial investments financial assets, and excluding those
in the notes to the annual financial statements unless they are classified as trading assets, are included in net interest income.
considered remote.
(l) Net fees and commission
(i) Share capital Fee and commission revenue, including transactional fees,
The Group classifies capital instruments as financial liabilities account servicing fees, investment management fees, sales
or equity instruments in accordance with the substance of commissions and placement fees are recognised as the related
the contractual terms of the instruments. Ordinary shares are services are performed. Loan commitment fees for loans that
classified as equity. are not expected to be drawn down are recognised on a straight-
line basis over the commitment period.
Dividends on ordinary shares Dividends on ordinary
shares are charged to equity in the period in which they are Loan syndication fees, where the Group does not participate in
declared. Dividends declared after the statement of financial the syndication or participates at the same effective interest

NOTES
159
rate for comparable risk as other participants, are recognised as revenue when the syndication has been completed. Syndication fees
that do not meet these criteria are capitalised as origination fees and amortised to the income statement as interest income. The fair
value of issued financial guarantee contracts on initial recognition is amortised as income over the term of the contract.
Fee and commission expenses, included in net fee and commission revenue, are mainly transaction and service fees relating to
financial instruments, which are expensed as the services are received. Expenditure is recognised as fee and commission expenses
where the expenditure is linked to the production of fee and commission revenue.
Performance obligation and revenue recognition policies

Type of service Description of the service Revenue recognition
These are service and transactional Revenue from account service fees is
fee-based revenue that mainly comprise recognised over time as the services
Transactional and of but are not limited to commissions on are provided.
service related cheques cashed, bank statement charges, Revenue related to transactions is
auxiliary charges, management fees, advisory recognised at the point in time when
fees, payments and collection related fees. the transaction takes place.
These are origination and processing Revenue related to trade fees is recognised at
Trade related fees relating to issuance of guarantees, the point in time when the transaction takes
performance bonds and letters of credit. place.
These fees include mainly loan arrangement

fees, search fees, loan processing
Revenue from credit related fees is recognised
Credit related fees on short term facilities, commitment
over time as the services are provided.
fees which are amortized over the period
of the loan using the EIR model.
(m) Net trading revenue the goodwill is greater than zero), or items recognised directly
in equity or in OCI. Deferred tax is recognised in respect of
Net trading revenue comprises gains or losses related to trading
temporary differences arising between the tax bases of assets
assets and liabilities, and include all realised and unrealised fair
and liabilities and their carrying values for financial reporting
value changes, interest and foreign exchange differences.
purposes. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when
(n) Dividends they reverse, based on the laws that have been enacted or
Dividend income is recognised when the right to receive income substantively enacted at the reporting date. Deferred tax is not
is established. Usually this is the ex-dividend date for equity recognised for the following temporary differences:
securities. Dividends are reflected as a component of other
operating income based on the underlying classification of the • the initial recognition of goodwill
equity investment. • the initial recognition of assets and liabilities in a transaction
that is not a business combination, which affects neither
(o) Income tax
accounting nor taxable profits or losses
Income tax expense is the aggregate of the charge to the
income statement in respect of current income tax and deferred • investments in subsidiaries, associates and jointly controlled
income tax. Current tax is determined for current period arrangements (excluding mutual funds) where the Group
transactions and events and deferred tax is determined for controls the timing of the reversal of temporary differences,
future tax consequences. and it is probable that these differences will not reverse in
the foreseeable future.
Current income tax is the amount of income tax payable on
the taxable profit for the year determined in accordance with The amount of deferred tax provided is based on the expected
the Ugandan Income Tax Act. The rates used are based on laws manner of realisation or settlement of the carrying amount of
enacted or substantially enacted at the reporting date. the asset or liability and is not discounted.
Deferred income tax is provided in full, using the liability Deferred tax assets are recognised to the extent that it is
method, for all temporary differences arising between the tax probable that future taxable income will be available against
bases of assets and liabilities and their carrying values for which the unused tax losses can be utilised.
financial reporting purposes.
Deferred tax assets are reviewed at each reporting date and
However, if the deferred income tax arises from the initial are reduced to the extent that it is no longer probable that the
recognition of an asset or liability in a transaction other than related tax benefit will be realised.
a business combination that at the time of the transaction
Deferred income tax liabilities are provided on taxable
affectsneither accounting nor taxable profit nor loss, it is not
temporary differences arising from investments in subsidiaries,
accounted for.
associates and joint arrangements, except for deferred income
Deferred income tax is determined using tax rates that have tax liability where the timing of the reversal of the temporary
been enacted or substantively enacted at the statement of difference is controlled by the Group and it is probable that
financial position date and are expected to apply when the the temporary difference will not reverse in the foreseeable
related deferred income tax asset is realised or the deferred future. Generally, the Group is unable to control the reversal
income tax liability is settled. of the temporary difference for associates unless there is an
agreement in place that gives the Group the ability to control
Deferred income tax assets are recognised only to the extent the reversal of the temporary difference.
that it is probable that future taxable profits will be available
against which temporary differences can be utilised or for items Deferred income tax assets are recognised on deductible
recognised in OCI and Equity. temporary differences arising from investments in subsidiaries,
associates and joint arrangements only to the extent that it
Deferred tax is recognised in direct taxation except to the is probable the temporary difference will reverse in the future
extent that it relates to a business combination (relating to a and there is sufficient taxable profit available against which the
measurement period adjustment where the carrying amount of temporary difference can be utilised.

NOTES
Deferred income tax assets and liabilities are offset when there Cash-settled share-based payments
is a legally enforceable right to offset current income tax assets Cash-settled share-based payments are accounted for as
against current income tax liabilities and when the deferred liabilities at fair value until the date of settlement. The liability
income taxes relate to the same fiscal authority. Deferred income is recognised over the vesting period and is revalued at every
taxes are calculated on all temporary differences under the reporting date up to and including the date of settlement.
balance sheet liability method using tax rates currently enacted. All changes in the fair value of the liability are recognised in
operating expenses (staff costs). The awards vest over the
(p) Employee benefits specified period of service and/or once the performance
(i) Retirement benefit obligations conditions are met.
The Group operates a defined contribution pension scheme (v) Other entitlements
for its employees. The defined contribution plan is a pension
The estimated monetary liability for employees’ accrued annual
plan under which the Group pays fixed contributions into a
leave entitlement at the reporting date is recognised as an
fund managed by a board of trustees and will have no legal or
expense accrual.
constructive obligations to pay further contributions if the fund
does not hold sufficient assets to pay all employees benefits (q) Segment reporting
relating to employee service in the current and prior periods.
An operating segment is a distinguishable component of the
In addition, all employees are obliged to be members of the Group engaged in providing products or services that are
National Social Security Fund, a state managed defined subject to risks and returns that are different from those of
contribution pension scheme. The Group contributes to the other business segments and whose operating results are
scheme in line with the requirements of the National Social reviewed to assess its performance and for which discrete
Security Fund Act. The regular contributions by the Group and financial information is available. The Group’s primary business
employees constitute net periodic costs for the year in which segmentation is based on the Group’s internal reporting about
they are due and as such are included in employee benefit components of the Group as regularly reviewed by the Board and
expenses. The Group’s contributions to the defined contribution executive management committees. Segments results include
schemes are charged to the income statement in the year to items directly attributable to a segment as well as those that
which they relate. are allocated on a reasonable basis. Business segments are the
only segments presented since the Group operates in a single
(ii) Short term benefits geographical segment, Uganda.
Short term benefits consist of salaries, accumulated leave
payments, bonuses and any non-monetary benefits such 2.2 New standards and interpretations
as medical aid contributions. Short-term employee benefit
obligations are measured on an undiscounted basis and not yet adopted by the Group
are expenses as the related service is provided. A liability is
The following new or revised standards,amendments and
recognised for the amount expected to be paid under short
interpretations are not yet effective for the year ended 31
term cash bonus plans or accumulated leave if the Group has
December 2021 and have not been applied in preparing these
a present legal or constructive obligation to pay this amount
annual financial statements.
as a result of past service provided by the employee and the
obligation can be estimated reliably. IFRS 10 and IAS 28 Sale or Contribution of Assets
(iii) Termination benefits
between an Investor and its Associate or Joint
Venture (amendments)
Termination benefits are recognised as an expense when the
Group is committed without realistic possibility of withdrawal, Effective date: deferred the effective date for these
to a formal detailed plan to terminate employment before the amendments indefinitely The amendments address an
normal retirement date, or to provide termination benefits as inconsistency between the requirements in IFRS 10 and those
a result of an offer made to encourage voluntary redundancy. in IAS 28, in dealing with the sale or contribution of assets
Termination benefits for voluntary redundancies are recognised between an investor and its associate or joint venture. The main
if the Group has made an offer encouraging voluntary consequence of the amendments is that a full gain or loss is
redundancy, it is probable that the offer will be accepted, and recognised when a transaction involves a business (whether it is
the number of acceptances can be reliably estimated. A liability housed in a subsidiary or not). A partial gain or loss is recognised
is recognised to the best estimate of the amount to settle the when a transaction involves assets that do not constitute a
obligation business, even if these assets are housed in a subsidiary. The
amendments will be applied prospectively and are not expected
(iv Equity-linked transactions to have a material impact on the Group’s financial statements.
Equity-settled share-based payments IAS 1 Presentation of Financial Statements
The fair value of the equity-settled share-based payments (amendments) (Effective for annual periods beginning on
are determined on grant date and accounted for within or after 1 January 2023)
operating expenses (staff costs) over the vesting period with
a corresponding increase in the group’s share-based payment The amendment clarifies how to classify debt and other liabilities
reserve. Non-market vesting conditions, such as the resignation as current or non-current. The objective of the amendment is
of employees and retrenchment of staff, are not considered in aimed to promote consistency in applying the requirements by
the valuation but are included in the estimate of the number of helping entities determine whether, debt and other liabilities
options expected to vest. At each reporting date, the estimate with an uncertain settlement date should be classified as
of the number of options expected to vest is reassessed and current (due or potentially due to be settled within one year)
adjusted against operating expenses and share-based payment or non-current. The amendment also includes clarifying the
reserve over the remaining vesting period. classification requirements for debt an entity might settle by
converting it into equity. These are clarifications, not changes,
On vesting of the equity-settled share-based payments, amounts to the existing requirements, and so are not expected to affect
previously credited to the share-based payment reserve are entities’ financial statements significantly. However, these
transferred to retained earnings through an equity transfer. clarifications could result in reclassification of some liabilities
On exercise of the equity-settled share-based payment, any from current to non-current, and vice versa. The amendment will
proceeds received are credited to share capital and premium. be applied retrospectively. The impact on the annual financial
statements has not yet been fully determined.
The IASB has issued various amendments and clarifications to
existing IFRS, none of which is expected to have a significant
impact on the Group’s annual financial statements.

NOTES 161
3. Financial Risk Management
3. Financial Risk Management (b) Capital management

The Group’s objectives when managing capital, which is a
(a) Strategy in using financial instruments broader concept than the equity on the face of the statement of
financial position, are:
By their nature, the Group’s activities are principally related to
the use of financial instruments including derivatives. The Group • To comply with the capital requirements of the regulator,
accepts deposits from customers at both fixed and floating Bank of Uganda, that are enshrined in the Financial
rates, and for various periods, and seeks to earn above-average Institutions Act 2004 as amended and accompanying
interest margins by investing these funds in high-quality assets. Financial Institutions (Capital Adequacy Requirements)
The Group seeks to increase these margins by consolidating Regulations, 2018.
short-term funds and lending for longer periods at higher rates,
while maintaining sufficient liquidity to meet all claims that • To safeguard the Group’s ability to continue as a going
might fall due. concern so that it can continue to provide returns for
shareholders and benefits for other stakeholders; and
The Group’s risk management policies are designed to identify
and analyse these risks, to set appropriate risk limits and con- • To maintain a strong capital base to support the
trols, and to monitor the risks and adherence to limits by means development of its business.
of reliable and up-to-date information systems. The Group regu-
The Group’s banking subsidiary - Stanbic Bank Uganda Limited
larly reviews its risk management policies and systems to reflect
(The “Bank”) monitors the adequacy of its capital using capital
changes in markets, products and emerging best practice. Risk
adequacy ratios established under the Financial Institutions
management is carried out centrally under policies approved
Act 2004, as amended (FIA) which ratios are broadly in line
by the Board of Directors. The Global Markets team identifies,
with those for the Group for International Settlements (BIS). In
evaluates and hedges financial risks in close co- operation with
addition under the same law, the Group is required to maintain
the Group’s operating units.
minimum paid up capital of UShs 25 billion. The Group is
The Board provides written principles for overall risk compliant with this requirement with a holding of UShs 51
management, as well as written policies covering specific billion. These ratios measure capital adequacy by comparing the
areas, such as foreign exchange risk, interest rate risk, credit Group’s eligible capital with its statement of financial position
risk, use of derivative financial instruments and non-derivative assets, off- balance- sheet commitments at weighted amounts
financial instruments. In addition, internal audit is responsible to reflect their relative risk.
for the independent review of risk management and the control
The market risk approach covers the general market risk and
environment. The most important types of risk are credit risk,
the risk of open positions in currencies and debt and equity
liquidity risk, market risk and other operational risk. Market risk
securities. Assets are weighted according to broad categories of
includes currency risk, interest rate and other price risk.
notional credit risk, being assigned a risk weighting according to
The Group also seeks to raise its interest margins by obtaining the amount of capital deemed to be necessary to support them.
above- average margins, net of allowances, through lending to Four categories of risk weights (0%, 20%, 50%, and 100%) are
commercial and retail borrowers with a range of credit standing. applied. Certain asset categories have intermediate weightings.
Such exposures involve not just on-statement of financial The Group is required at all times to maintain a core capital
position loans and advances, the Group also enters into (tier 1) of not less than 10% of total risk adjusted assets plus
guarantees and other commitments such as letters of credit risk adjusted items off the statement of financial position and a
and performance, and other bonds. The Group also trades in total capital (tier 1 + tier 2) of not less than 12% of its total risk
financial instruments where it takes positions in traded and adjusted assets plus risk adjusted items off the statement of
over-the-counter instruments to take advantage of short-term financial position.
market movements in bonds, currency and interest rate. The
Off-balance-sheet credit related commitments and forwards
Board places trading limits on the level of exposure that can
are taken into account by applying different categories of
be taken in relation to both overnight and intra-day market
credit conversion factors, designed to convert these items into
positions.
statement of financial position equivalents. The resulting credit
Foreign exchange and interest rate exposures associated equivalent amounts are then weighted for credit risk using the
derivatives are normally offset by entering into same percentages as for statement of financial position assets.
counterbalancing positions, thereby controlling the variability in
Tier 1 capital consists of shareholders’ equity comprising paid
the net cash amounts required to liquidate market positions.
up share capital, share premium and retained earnings less
intangible assets, deferred income tax asset and investments
in financial companies, not consolidated. Tier 2 capital includes
the Group’s eligible long-term loans, and general provisions. Tier
2 capital is limited to 50% of Tier 1 capital.

162 NOTES
(b) Capital management(continued)
The table below summarizes a composition of regulatory capital for Stanbic Bank Uganda Limited
2021 2020
UShs’ 000 UShs’ 000
Core capital (Tier 1)
Shareholders’ equity 51,188,670 51,188,670
Share premium 829,879,881 829,879,881
Retained earnings 529,229,421 208,791,259
Less: Deductions determined by Bank of Uganda (134,957,779) (171,895,125)
Total core capital 1,275,340,193 917,964,685
Supplementary capital (Tier 2)
Unencumbered general provisions for losses 57,445,269 55,722,812
Subordinated term debt 71,753,914 73,022,525
Total supplementary capital 129,199,183 128,745,337
Total capital (core and supplementary) 1,404,539,376 1,046,710,022
Breakdown of deductions determined by the Financial Institutions Act 2004, as amended.

2021 2020
Goodwill and other intangible assets 82,293,413 93,447,576
Unrealised Gains on securities 10,285,907 32,073,957
Deferred tax asset 42,378,459 43,860,049
Fairvalue through OCI reserve (loss) - 2,513,543
134,957,779 171,895,125
The Bank’s capital adequacy level was as follows:

Risk Financial position nominal
Weight balance Risk weighted balance
2021 2020 2021 2020
UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Statement of financial position
Cash and balances with Bank of Uganda 0% 985,199,682 1,155,797,738 - -
Financial investments 0% 844,166,562 721,573,358 - -
Other financial investments 100% 178,468 199,424 178,468 199,424
Trading assets 0% 1,057,416,156 1,101,949,038 - -
Pledged assets 0% 3,840,314 460,527,242 - -
Placements with local banks 20% 109,489,724 91,104,336 21,897,944 18,220,867
Repurchase loan agreement 0% 150,030,812 - - -
*Placements with foreign banks 846,732,827 592,940,361 431,632,741 329,705,881
Amounts due from group companies 100% 401,305,727 354,917,315 401,305,727 354,917,315
Loans and advances to customers-
regulatory basis 100% 3,824,590,968 3,710,775,005 3,319,457,223 2,987,077,846
Other assets 100% 371,122,899 241,548,747 371,122,899 241,548,747
Deferred tax asset 0% 42,378,459 43,860,049 - -
Goodwill 0% 1,901,592 1,901,592 - -
Other intangible assets 0% 80,391,821 91,545,984 - -
Property, equipment and right of use
asset 100% 76,166,502 80,159,638 76,166,502 80,159,638
8,794,912,513 8,648,799,827 4,621,761,504 4,011,829,718
Off-balance sheet items
Contingencies secured by cash collateral 0% 56,377,886 37,657,128 - -
Guarantees and acceptances 100% 6,780,070 33,937,949 6,780,070 33,937,949
Performance bonds 50% 1,662,109,349 1,564,579,190 831,054,675 782,289,595
Trade related and self liquidating credits 20% 194,668,616 225,282,651 38,933,723 45,066,394
Other commitments 50% 1,237,793,640 1,433,445,628 618,896,820 716,722,814
3,157,729,561 3,294,902,546 1,495,665,288 1,578,016,752
Counterparty Risk 31,595,951 13,384,030
Market Risk 266,416,380 221,981,066
Total risk weighted assets 6,415,439,123 5,825,211,566
*Placements with foreign banks

NOTES
3. Financial Risk Management 163
The risk weights applied to placements with foreign banks are determined in accordance with the internal credit ratings of each bank
as follows:
Category Risk Weight Financial position nominal balance Risk weighted balance
2021 2020 2021 2020
Rated AAA to AA (-) 20% - 476,179 - 95,236
Rated A (+) to A (-) 50% 830,200,172 525,707,074 415,100,086 262,853,537
Rated A (-) to non-rated 100% 16,532,655 66,757,108 16,532,655 66,757,108
Total 846,732,827 592,940,361 431,632,741 329,705,881
Tier 1 and Tier 2 capital
FIA minimum
Capital Bank ratio ratio
2021 2020 2021 2020 2021 2020
UShs’ 000 UShs’ 000 % % % %
Tier 1 capital 1,275,340,193 917,964,685 19.9% 15.8% 10% 10%
Tier 1 + Tier 2 capital 1,404,539,376 1,046,710,022 21.9% 18.0% 12% 12%
The financial institutions (Capital Buffers and Leverage The transition from Basel I to Basel II capital accord introduces
Ratio) Regulations, 2020 were gazetted and took effect on 31 a requirement for the Bank to hold capital for operational risk.
December 2020. One of the objectives is to provide financial A parallel run of both capital regimes, as at 31 December 2021
institutions with a buffer for losses during periods of financial shows that under Basel I, Total CAR and Core CAR are 23.15%
and economic stress without breaching the minimum core and 21.14% respectively. When measured under Basel II capital
capital and total capital adequacy requirements so as to accord, they are 20.61% and 18.82% respectively. As a result,
protect the financial institutions sector from the build-up of under Basel II capital accord, the Bank requires more capital to
systemic risks during an economic upswing when aggregate run the same business than was required under Basel I.
credit growth tends to be excessive and reduce the likelihood
of impairment or failure of systemically important financial The Bank of Uganda will prescribe the required systemic risk
institutions. buffer and the countercyclical buffer to financial institutions.
The Bank’s capital adequacy ratio of 19.9% and 21.9% for core
This introduces a Capital Conservation buffer of 2.5%, a capital and total capital respectively as well as the leverage ratio
Systemic Risk Buffer for domestic systemically important banks at 58.7% is within the regulatory requirements.
ranging from 0% to 3.5% and a Countercyclical Buffer ranging
from 0% to 2.5%. The buffers are calculated as a percentage of Loans and advances to customers are stated net of provisions
total risk adjusted assets plus risk adjusted off balance sheet as determined in accordance with the Financial Institutions Act,
items. The buffers are added on the minimum total capital and 2004 as amended.
core capital ratios. 1. The risk weight for local banks is 20% and for balances with
The regulations also introduce a minimum leverage ratio of 6%. Bank of Uganda is 0%.
This is calculated as the core capital divided by the total balance 2. Foreign banks are rated based off the risk ratings from
sheet plus off-balance sheet exposure. international rating agencies. These are categorized as
below;
Loans and advances to customers for regulatory capital purposes
2021 2020
Gross Loan and advances 3,924,266,315 3,798,199,309
Specific provisions (regulatory) (85,984,754) (72,229,055)
Interest in suspense(regulatory) (13,690,593) (15,195,249)
3,824,590,968 3,710,775,005
Less
Loans secured by government securities - (49,110,068)
Loan to Government of Uganda (503,289,483) (672,367,601)
Loans secured by cash cover (1,844,262) (2,219,490)
Loans secured by inward bankers guarantees (7,184,638) (7,682,580)
3,312,272,585 2,979,395,266

NOTES
164 3. Financial Risk Management
Reconciliation of loans and advances to customers between IFRS and FIA

2021 2020
Gross loans and advances (IFRS purposes) 3,896,645,056 3,791,098,436
Written off facilities according to FIA, 2004 as amended (12,775,429) (19,309,907)
Staff loans fair value adjustment 21,389,258 15,927,551
Modification losses (gains) 6,747,966 (266,740)
Effective interest rate adjustment 12,259,464 10,749,969
Gross loans and advances for regulatory purposes 3,924,266,315 3,798,199,309
Stanbic Bank Uganda Limited holds loans and advances • ensuring that there is expert scrutiny and approval of
for which it is required to write them off in accordance with credit risk and its mitigation independently of the business
the Financial Institutions Act 2004, as amended. However, functions.
these loans are not yet due for write off in accordance with
IFRS. These facilities are adjusted out of the loan book when A credit portfolio limit framework has been defined to monitor
preparing capital ratios. and control the credit risk profile within the Group’s approved
risk appetite. All primary lending credit limits are set and
Adjustments are made for other IFRS requirements to arrive exposures measured on the basis of risk weighting in order
at the loans and advances amount required by the Financial to best estimate exposure at default (EAD). Pre-settlement
Institutions Act 2004, as amended. counterparty credit risk (CCR) inherent in trading book
exposures is measured on a potential future exposure (PFE)
The Group’s credit concentration basis, modelled at a defined level of confidence, using approved
As at 31 December 2021, the Group had one customer with methodologies and models, and controlled within explicit
an aggregate amount exceeding twenty five percent of the approved limits for the counterparties concerned.
Group’s core capital extended to a single person or group of
related persons totalling to UShs 503,289 million on balance Credit risk mitigation
sheet exposures for which Bank of Uganda’s no objection was Wherever warranted, the Group will attempt to mitigate credit
obtained (2020: UShs 672,367 million on balance sheet and risk, including CCR to any counterparty, transaction, sector,
UShs 386,643 million off balance sheet). or geographic region, so as to achieve the optimal balance
between risk, cost, capital utilisation and reward. Risk mitigation
may include the use of collateral, the imposition of financial
3(c) Credit risk or behavioural covenants, the acceptance of guarantees from
parents or third parties, the recognition of parental support, and
Definition the distribution of risk.
Credit risk is the risk of loss arising out of the failure of obligors
to meet their financial or contractual obligations when due. It Collateral, parental guarantees, credit derivatives and on- and
is composed of obligor risk (including borrowers and trading off- balance sheet netting are widely used to mitigate credit risk.
counterparties), concentration risk and country risk. Credit risk mitigation policies and procedures ensure that risk
mitigation techniques are acceptable, used consistently, valued
Approach to managing and measuring credit appropriately and regularly, and meet the risk requirements
risk of operational management for legal, practical and timely
The Group’s credit risk is a function of its business model enforcement. Detailed processes and procedures are in place
and arises from wholesale and retail loans and advances, to guide each type of mitigation used. In the case of collateral
underwriting and guarantee commitments, as well as from the where the Group has an unassailable legal title, the Group’s
counterparty credit risk arising from derivative and securities policy is such that collateral is required to meet certain criteria
financing contracts entered into with our customers and trading for recognition in loss given default (LGD) modelling, including:
counterparties. The management of credit risk is aligned to • is readily marketable and liquid
the Group’s three lines of defence framework. The business • is legally perfected and enforceable
functions owns the credit risk assumed by the Group and as the
• has a low valuation volatility
first line of defence is primarily responsible for its management,
control and optimisation in the course of business generation. • is readily realisable at minimum expense
• has no material correlation to the obligor credit quality
The credit function acts as the second line of defence and is
responsible for providing independent and objective approval • has an active secondary market for resale.
and oversight for the credit risk-taking activities of business, to
The main types of collateral obtained by the Group for its
ensure the process of procuring revenue, while assuming optimal
banking book exposures include:
risk, is undertaken with integrity. Further second- line oversight is
provided by the Group risk function through independent credit • mortgage bonds over residential, commercial and industrial
risk assurance. properties
• cession of book debts
The third line of defence is provided by the Group’s internal
audit, under its mandate from the Group audit committee. The • bonds over plant and equipment
fourth line of defence is provided by external audit. • the underlying movable assets financed under leases and
Credit risk is managed through: • instalment sales.
Reverse repurchase agreements and commodity leases to
• maintaining a culture of responsible lending and a robust
customers are collateralised by the underlying assets.
risk policy and control framework
Guarantees and related legal contracts are often required,
• identifying, assessing and measuring credit risk across
particularly in support of credit extension to groups of
the Group, from an individual facility level through to an
companies and weaker obligors. Guarantors include banks,
aggregate portfolio level
parent companies, shareholders and associated obligors.
• defining, implementing and continually re- evaluating risk Creditworthiness is established for the guarantor as for other
appetite under actual and stressed conditions obligor credit approvals.
• monitoring the Group’s credit risk exposure relative to

approved limits

NOTES 165
3(c) Credit risk (continued)
For trading and derivatives transactions where collateral • a breach of contract, such as default or delinquency in
support is considered necessary, the Group typically uses interest and/or principal payments
internationally recognised and enforceable International
Swaps and Derivatives Association (ISDA) agreements, with • disappearance of active market due to financial difficulties
a credit support annexure (CSA). Netting agreements, such • it becomes probable that the borrower will enter bankruptcy
as collateral under the CSA of an ISDA agreement, are only or other financial reorganisation
obtained where the Group firstly, has a legally enforceable right
to offset credit risk by way of such an agreement, and secondly, • where the Group, for economic or legal reasons relating to
where the Group has the intention of utilising such agreement the borrower’s financial difficulty, grants the borrower a
to settle on a net basis. concession that the Group would not otherwise consider.
Other credit protection terms may be stipulated, such as Collateral

limitations on the amount of unsecured credit exposure The Group employs a range of policies and practices to mitigate
acceptable, collateralisation if the mark-to-market credit credit risk. The most traditional of these is the taking of security
exposure exceeds acceptable limits, and termination of the for funds advanced, which is common practice. The Group
contract if certain credit events occur, for example, downgrade implements guidelines on the acceptability of specific classes
of the counterparty’s public credit rating. of collateral or credit risk mitigation. The principal collateral
Wrong-way risk arises in transactions where the likelihood of types for loans and advances are:
default (i.e. the probability of default (PD) by a counterparty • Mortgages over residential properties
and the size of credit exposure (as measured by EAD) to
that counterparty tend to increase at the same time. This • Charges over business assets such as premises, inventory
risk is managed both at an individual counterparty level and and accounts receivable
at an aggregate portfolio level by limiting exposure to such • Charges over financial instruments such as debt securities
transactions, taking adverse correlation into account in the and equities
measurement and mitigation of credit exposure and increasing Longer-term finance and lending to corporate entities are
oversight and approval levels. generally secured; revolving individual credit facilities are
The Group has no appetite for wrong-way risk arising where the generally unsecured. In addition, in order to minimise the
correlation between EAD and PD is due to a legal, economic, credit losses the Group may seek additional collateral from the
strategic or similar relationship (i.e. specific wrong-way risk). counterparty as soon as impairment indicators are noticed for
General wrong-way risk, which arises when the correlation the relevant individual loans and advances.
between EAD and PD for the counterparty, due mainly to macro Collateral held as security for financial assets other than loans
factors, is closely managed within existing risk frameworks. and advances is determined by the nature of the instrument.
To manage actual or potential portfolio risk concentrations in Debt securities, treasury and other eligible bills are generally
areas of higher credit risk and credit portfolio growth, the Group unsecured, with the exception of asset-backed securities and
implements hedging and other strategies from time-to-time. similar instruments, which are secured by portfolios of financial
This is done at individual counterparty, sub-portfolio and instruments.
portfolio levels through the use of syndication, distribution and
sale of assets, asset and portfolio limit management, credit
Derivatives
derivatives and credit protection. The Group maintains strict control limits on net open derivative
positions (ie, the difference between purchase and sale
Credit portfolio characteristics and metrics in contracts), by both amount and term. At any one time, the
terms of IFRS 9 amount subject to credit risk is limited to the current fair value
of instruments that are favourable to the Group (ie, assets
Maximum exposure to credit risk where their fair value is positive), which in relation to derivatives
Debt financial assets at amortised cost and FVOCI as well as is a small fraction of the contract, or notional values used to
off-balance sheet exposure subject to an ECL are analysed and express the volume of instruments outstanding. This credit
categorised based on credit quality using the Group’s master risk exposure is managed as part of the overall lending limits
rating scale. Exposures within Stage 1 and 2 are rated between with customers, together with potential exposures from market
1 to 25 in terms of the Group’s master rating scale. Exposures movements. Collateral or other security is not usually obtained
that are not within 1 to 25 are considered to be in default. for credit risk exposures on these instruments, except where
the Group requires margin deposits from counterparties.
Default
Settlement risk arises in any situation where a payment in
The Group’s definition of default has been aligned to its internal cash, securities or equities is made in the expectation of a
credit risk management definitions and approaches. Whilst the corresponding receipt in cash, securities or equities. Daily
specific determination of default varies according to the nature settlement limits are established for each counterparty to cover
of the product, it is generally determined (aligned to the BASEL the aggregate of all settlement risk arising from the Group’s
definition) as occurring at the earlier of: market transactions on any single day.
• where, in the Group’s view, the counterparty is considered Credit related commitments
to be unlikely to pay amounts due on the due date or
shortly thereafter without recourse to actions such as the The primary purpose of these instruments is to ensure that
realisation of security; or funds are available to a customer as required. Guarantees
and standby letters of credit, which represent irrevocable
• when the counterparty is past due for more than 90 days assurances that group will make payments in the event that
(or, in the case of overdraft facilities in excess of the current a customer cannot meet its obligations to third parties, carry
limit). the same credit risk as loans. Documentary and commercial
letters of credit, which are written undertakings by the Group
The Group will not rebut IFRS 9’s 90 days past due rebuttable
on behalf of a customer authorising a third party to draw drafts
presumption. A financial asset is considered to be in default
on the Group up to a stipulated amount under specific terms
when there is objective evidence of impairment. The following
and conditions, are collateralised by the underlying shipments
criteria are used in determining whether there is objective
of goods to which they relate and therefore carry less risk than
evidence of impairment for financial assets or groups of
a direct borrowing.
financial assets:
Commitments to extend credit represent unused portions of
• significant financial difficulty of borrower and/or
authorisations to extend credit in the form of loans, guarantees
modification (i.e. known cash flow difficulties experienced by
or letters of credit. With respect to credit risk on commitments
the borrower)
to extend credit, the Group is potentially exposed to loss in an
amount equal to the total unused commitments.

NOTES
However, the likely amount of loss is less than the total of credit commitments because longer-term commitments
unused commitments, as most commitments to extend generally have a greater degree of credit risk than shorter-term
credit are contingent upon customers maintaining specific commitments.
credit standards. The Group monitors the term to maturity
ECL coverage
2021 2020
Loans and Coverage ratio Loans and Coverage ratio
GROUP advances % advances %
Stage 1 90.5 0.8 93.3 0.8
Stage 2 6.0 12.6 2.7 17.7
Stage 3 3.5 55.4 4.0 61.2
100.0 100.0
Credit risk exposures relating to assets included on the statement of financial position are as follows:
GROUP COMPANY
2021 2020 2021 2020
UShs’000 UShs’000 UShs’000 UShs’000
Balances with Bank of Uganda 552,252,953 712,707,085 - -
Loans and advances to banks 1,506,230,304 1,037,098,743 34,808,894 154,995,286
Financial investments
Treasury bonds -FVOCI 506,340,724 415,818,251 - -
Treasury bills - FVOCI 337,825,838 305,755,107 - -
Pledged assets 3,840,314 107,951,960 - -
Loans and advances to customers
Loans to individuals
Overdrafts 65,754,097 107,792,846 - -
Term loans 888,892,084 1,227,043,295 - -
Mortgages 151,291,900 293,360,776 - -
Loans to corporate entities
Large corporate entities 1,783,666,706 1,924,507,972 - -
Small and medium size entities 1,007,040,269 238,393,546 - -
Trading assets
Treasury bonds 848,381,748 529,104,511 - -
Treasury bills 209,034,408 572,844,527 - -
Pledged assets - 352,575,282 - -
Derivative assets 129,164,041 160,917,126 - -
Other assets and related party receivables. 268,302,341 98,471,331 1,455,027 227,504
8,258,017,727 8,084,342,358 36,263,921 155,222,790
Credit risk exposure relating to assets not on the statement of financial position are as follows:
Financial guarantees 1,696,232,281 1,623,737,529 - -
Loan commitments and other credit related liabilities 1,237,793,640 1,433,445,628 - -
2,934,025,921 3,057,183,157 - -
11,192,043,648 11,141,525,515 36,263,921 155,222,790
The above table represents a worst-case scenario of credit risk exposure to the Group at 31 December 2021 and 2020, without taking
account of any collateral held or other credit enhancements attached. For on-balance-sheet assets, the exposures set out above are
based on net carrying amounts as reported in the statement of financial position.

NOTES
The table below shows the collateral for the secured loans as at 31 December 2021
As at 31 December 2021 Collateral coverage
Netting off Exposure after 0-50% 51-100% Over 100% Total
Customer loans agreements netting off
GROUP UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Secured loans 1,336,244,433 1,844,262 1,334,400,171 112,026,189 822,177,540 400,196,442 1,334,400,171
Unsecured
loans 2,560,400,623 - 2,560,400,623 - - - -
3,896,645,056 1,844,262 3,894,800,794 112,026,189 822,177,540 400,196,442 1,334,400,171
As at 31 December 2020 Collateral coverage

Netting off Exposure after 0-50% 51-100% Over 100% Total
Customer loans agreements netting off
GROUP UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Secured loans 1,295,067,805 2,219,490 1,292,848,315 156,325,695 751,033,277 385,489,343 1,292,848,315
Unsecured
loans 2,496,030,630 - 2,496,030,630 - - - -
3,791,098,435 2,219,490 3,788,878,945 156,325,695 751,033,277 385,489,343 1,292,848,315
Management remains confident in its ability to continue to control the exposure of credit risk to the Group resulting from both its loan
and advances portfolio and debt securities based on the following:
• 90.5% and 6.0% of the loans and advances portfolio is categorised in stage 1 and stage 2 respectively (2020: 93.3% stage 1 and
2.7% stage 2)
• Mortgage loans, are backed by collateral
• All debt securities held by the Group are issued by the Bank of Uganda on behalf of the Government of Uganda.
Loans and advances are summarized as follows
2021 2020
Loans and Loans and Loans and Loans and
advances to advances to advances to advances to
GROUP customers banks customers banks
Stage 1 3,420,015,119 1,106,253,364 3,494,165,995 684,044,697
Stage 2 299,475,954 - 120,037,393 -
Stage 3 177,153,983 - 176,895,047 -
Gross loans and advances 3,896,645,056 1,106,253,364 3,791,098,435 684,044,697
Allowances for impairment (169,372,214) (131,348) (165,089,082) (115,209)
Interest In Suspense (5,199,772) - (7,656,032)
3,722,073,070 1,106,122,016 3,618,353,321 683,929,488
The allowance for impairment are summarized per segment as follows:

31 December 2021 31 December 2020
Loans and Loans and Loans and Loans and
advances to advances to advances to advances to
customers banks customers banks
GROUP UShs’000 UShs’000 UShs’000 UShs’000
BCC and CHNW
Mortgage lending 27,733,788 - 12,511,935 -
Instalment sales and finance Leases 12,331,322 - 8,314,696 -
Card debtors 1,472,104 - 1,049,747 -
Other loans and advances 112,651,264 - 92,065,156 -
Corporate and Investment Banking
Corporate lending 20,383,508 131,348 58,803,580 115,209
174,571,986 131,348 172,745,114 115,209
The total impairment provision for loans and advances is UShs 169,372 million (2020: UShs 165,089 million) of which UShs 98,066
million is stage 3 impairment (2020: UShs 108,285 million). Further information on the impairment allowance for loans and advances
to banks and to customers is provided in Notes 18 and 19.

168
The table below illustrates the credit risk for debt financial assets at amortised cost and FVOCI as well as off-balance sheet exposure as per the Group’s master rating scale.
SB 1-12 SB 13 - 20 SB 21 - 25 Default
NOTES
Balance sheet im-

pairments for non
Securi- performing spe-
Total gross ties and cifically impaired
carrying expected Interest in loans (Stage 3 Gross Non-per-
Total Gross amount recoveries suspense and purchased specific forming
Carrying of default on default on default or originated impair- expo-

GROUP Amounts Stage 1 Stage 1 Stage 2 Stage 2 Stage 3 exposures exposures exposures credit impaired) ment cov- sures
As at 31 December, 2021 Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000 erage % (%)
Loans and advances at amortised cost
BCC and CHNW
Mortgage loans 151,291,900 - 67,853,411 - 41,309,321 42,129,168 42,129,168 30,001,965 298,674 11,828,529 29% 28%

Vehicle and asset finance 159,452,367 - 109,854,014 - 29,110,528 20,487,825 20,487,825 4,741,570 114,646 15,631,609 77% 13%
Card debtors 3,750,141 - 213,955 - 3,379,019 157,167 157,167 74,004 - 83,163 53% 4%
Other loans and advances 1,798,483,942 - 1,466,890,592 - 220,888,711 110,704,639 110,704,639 39,071,016 4,786,452 66,847,171 65% 6%
Personal unsecured lending 1,064,116,653 - 957,582,073 - 82,242,534 34,292,046 34,292,046 (6,577,189) 231,643 30,637,592 90% 3%
Business lending and other 734,367,289 - 509,308,519 - 138,646,177 76,412,593 76,412,593 45,648,205 4,554,809 36,209,579 53% 11%
CIB - - -
Corporate 1,280,377,223 324,134,931 947,778,733 4,788,375 - 3,675,184 3,675,184 - - 3,675,184 100% 0%
Sovereign 503,289,483 - 503,289,483 - - - - - - - - -

Bank 1,106,253,364 1,106,253,364 - - - - - - - - - -
Other service - - - -
Gross carrying amount 5,002,898,420 1,430,388,295 3,095,880,188 4,788,375 294,687,579 177,153,983 177,153,983 73,888,555 5,199,772 98,065,656 58% 4%
Less: Interest in suspense (5,199,772)
Less: Total expected credit losses for loans and
advances (169,503,562) - - - - - - - - - - -
Net carrying amount of loans and advances
measured at amortised cost 4,828,195,086 1,430,388,295 3,095,880,188 4,788,375 294,687,579 177,153,983 177,153,983 73,888,555 5,199,772 98,065,656 58% 4%
Financial investments at fair value through OCI
Sovereign 844,345,030 844,345,030 - - - - - - - - - -
Gross carrying amount 844,345,030 844,345,030 - - - - - - - - - -
Less total expected credit loss for financial
investments (285,582) (285,582) - - - - - - - - - -
Total financial investment at fair value through
OCI 844,059,448 844,059,448 - - - - - - - - - -
Off-balance sheet exposures - - - - - -
Letters of credit and banker’s acceptances 223,703,640 182,909,968 39,399,451 1,110,293 70,087 213,841 - - - - - -
Guarantees 1,696,232,281 1,452,806,223 240,350,304 46,327 - 3,029,427 - - - - - -
Irrevocable unutilised facilities 1,237,793,640 1,190,556,091 46,813,120 - 424,429 - - - - - - -
Total exposure to off-balance sheet credit risk 3,157,729,561 2,826,272,282 326,562,875 1,156,620 494,516 3,243,268 - - - - - -
Expected credit losses for off-balance sheet expo-
sures (4,733,611) - - - - - - - - - - -
Net carrying amount of off-balance sheet
exposures 3,152,995,950 2,826,272,282 326,562,875 1,156,620 494,516 3,243,268 - - - - - -
Total exposure to credit risk on financial assets
subject to an expected credit loss 8,825,250,484 5,100,720,025 3,422,443,063 5,944,995 295,182,095 180,397,251 177,153,983 73,888,555 5,199,772 98,065,656 58% 2%
Add the following other banking activities
exposures:
Cash and balances with the central bank 985,199,682 - - - - - - - - - - -
Derivative assets 129,164,041 - - - - - - - - - - -
Trading assets 1,057,416,156 - - - - - - - - - - -
Other financial assets - - - - - - - - - - - -
Total exposure to credit risk 10,997,030,363 5,100,720,025 3,422,443,063 5,944,995 295,182,095 180,397,251 177,153,983 73,888,555 5,199,772 98,065,656 58% 2%
1 The ECL on unutilised facilities is included in the ECL for loans and advances.
2 Balances with the central bank are classified as FVTPL default. These balances are subject to the rigorous regulatory requirements of these transactions and its link to the underlying entity’s ability to
operate as a bank.
3 Due to the short-tern nature of these assets and historical experience, debtors are regarded as having a low probability of default. Therefore, the ECL has been assessed to be insignificant.
SB1-12 SB13-20 SB21-25 Default
Balance sheet
impairments
for non
performing
specifically
Securities impairedloans
Total gross and (Stage 3 and
carrying expected Interest in purchased
Total Gross amount recoveries suspense or originated Gross Non-
Carrying of default on default on default credit specific performing
GROUP Amounts Stage 1 Stage 2 Stage 1 Stage 1 Stage2 Stage3 exposures exposures exposures impaired) impairment exposures
2020 UShs’000 UShs’000 UShs’000 UShs’000 UShs’000 UShs’000 UShs’000 UShs’000 UShs’000 UShs’000 UShs’000 coverage % (%)
Loans and advances at amortised cost
PBB
Mortgage loans 282,260,048 - 248,998,152 - - 16,920,817 16,341,079 16,341,079 10,257,095 543,443 5,540,541 37% 6%
Vehicle and asset finance 173,890,374 4,390,740 147,650,722 - - 14,523,158 7,325,754 7,325,754 3,346,080 - 3,979,674 54% 4%
Card debtors 3,722,980 - 929,821 - - 2,515,869 277,290 277,290 20,594 - 256,696 93% 7%
Other loans and advances 1,448,618,387 - 1,221,722,524 - 66,499,846 67,510,308 92,885,709 92,885,709 36,659,926 1,070,481 55,155,302 61% 6%
Personal unsecured lending 787,552,954 - 734,606,974 - 3,764,971 30,582,179 18,598,830 18,598,830 3,192,614 555,201 14,851,015 83% 2%
Business lending and other 661,065,433 - 487,115,550 - 62,734,875 36,928,129 74,286,879 74,286,879 33,467,312 515,280 40,304,287 55% 11%
CIB - - -
Corporate 1,210,239,045 385,998,266 745,608,323 18,567,241 - - 60,065,215 60,065,215 10,670,023 6,042,108 43,353,084 82% 5%
Sovereign 672,367,601 - 672,367,601 - - - - - - - - - -
Bank 684,044,698 565,723,770 118,320,928 - - - - - - - - - -
Other service
Gross carrying amount 4,475,143,133 956,112,776 3,155,598,071 18,567,241 66,499,846 101,470,152 176,895,047 176,895,047 60,953,718 7,656,032 108,285,297 66% 4%
Less: Interest in suspense (7,656,032) -
Less:Total expected credit losses for loans and advances (165,204,291) -
Net carrying amount of loans and advances measured atamortised
cost 4,302,282,810 956,112,776 3,155,598,071 18,567,241 66,499,846 101,470,152 176,895,047 176,895,047 60,953,718 7,656,032 108,285,297 66% 4%
Financial investment at fair value through OCI
Sovereign 721,772,782 721,772,782 - - - - - - - - - - -
Gross carrying amount 721,772,782 721,772,782 - - - - - - - - - - -
Add: Fair value reserve ralating to fair value adjustments (before the ECL
balance) (188,212) (188,212) - - - - - - - - - - -
Total financial investment at fair value through OCI 721,584,570 721,584,570 - - - - - - - - - - -
Off-balance sheet exposures - - - - - - - - - - - -
Letters of credit and banker’s acceptances 237,768,709 143,767,049 93,374,832 34,796 - - 592,032 - - - - - -
Guarantees 1,623,737,529 1,404,097,072 198,447,243 18,734,779 240,336 - 2,218,099 - - - - - -
Irrevocable unutilised facilities 1,433,445,628 1,433,445,628 - - - - - - - - - - -
Total exposure to off-balance sheet credit risk 3,294,951,866 2,981,309,749 291,822,075 18,769,575 240,336 - 2,810,131 - - - - - -
Expected credit losses for off-balance sheet exposures (4,924,978) - - - - - - - - - - - -
Net carrying amount of off-balance sheet exposures 3,290,026,888 2,981,309,749 291,822,075 18,769,575 240,336 - 2,810,131 - - - - - -
Total exposure to credit risk on financial assets subject to an
expected credit loss 8,313,894,268 4,659,007,095 3 ,447,420,146 37,336,816 66,740,182 101,470,152 179,705,178 176,895,047 60,953,718 7,656,032 108,285,297 66% 2%
Add the following other banking activities exposures:
Cash and balances with Bank of Uganda 1,155,797,738 - - - - - - - - - - - -
Derivative assets 160,197,126 - - - - - - - - - - - -
Trading assets 1,101,949,038 - - - - - - - - - - - -

Other financial assets - - - - - - - - - - - - -
NOTES

Total exposure to credit risk 10,732,558,170 4,659,007,095 3 ,447,420,146 37,336,816 66,740,182 101,470,152 179,705,178 176,895,047 60,953,718 7,656,032 108,285,297 66% 2%
1 The ECL on unutilised facilities is included in the ECL for loans and advances.
2 Balances with the central bank are classified as FVTPL default. These balances are subject to the rigorous regulatory requirements of these transactions and its link to the underlying entity’s ability to
169
operate as a bank.
3 Due to the short-tern nature of these assets and historical experience, debtors are regarded as having a low probability of default. Therefore, the ECL has been assessed to be insignificant.
NOTES
Loans and advances to banks

The total gross amount of stage 3 loans and advances to banks as at 31 December 2021 is Nil (2020: nil). No collateral is held by the
Group against loans and advances to banks.
Other financial assets

There are no other financial assets in stage 3 (2020: nil). No collateral is held by the Group against other financial assets.
Concentrations of risk of financial assets with credit risk exposure

Concentration risk is the risk of loss arising from an excessive concentration of exposure to a single counterparty, an industry, a
product, a geography, maturity, or collateral. The Group’s credit risk portfolio is well-diversified. The Group’s management approach
relies on the reporting of concentration risk along key dimensions, the setting of portfolio limits and stress testing. The group’s credit
risk portfolio is concentrated within Uganda.
The following table breaks down the Group’s main credit exposure at their carrying amounts, as categorized by the industry sectors
of our counterparties.
Concentrations of risk of financial assets with credit risk exposure
Financial
institutions Manufacturing Agriculture Transport Individuals Others Total
UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Government
securities - FVOCI
(Note 17) 844,166,562 - - - - - 844,166,562
Pledged assets
(Note 17) 3,840,314 - - - - - 3,840,314
Loans and
advances to banks
(Note 18) 1,106,253,364 - - - - - 1,106,253,364
Loans and
advances to
customers
(Note 19) 514,464,361 434,917,119 467,064,325 83,119,851 945,591,847 1,451,487,553 3,896,645,056
Financial assets
designated at fair
value through
profit or loss:
Trading assets
(Note 17) 1,057,416,156 - - - - - 1,057,416,156
3,526,140,757 434,917,119 467,064,325 83,119,851 945,591,847 1,451,487,553 6,908,321,452
Financial
institutions Manufacturing Agriculture Transport Individuals Others Total
Government
securities - FVOCI
(Note 17) 721,573,358 - - - - - 721,573,358
Pledged assets
(Note 17) 460,527,242 - - - - - 460,527,242
Loans and
advances to banks
(Note 18) 684,044,697 - - - - - 684,044,697
Loans and
advances to
customers (Note
19) 158,640,321 344,949,159 528,168,712 70,095,139 723,647,774 1,965,597,330 3,791,098,435
Financial assets
designated at fair
value through
profit or loss:
Trading assets
(Note 17) 1,101,949,038 - - - - - 1,101,949,038
3,126,734,656 344,949,159 528,168,712 70,095,139 723,647,774 1,965,597,330 6,759,192,770

NOTES 171
3(d) Market Risk
3 (d) Market Risk market risk as outlined in the market risk governance standard.
Exposures and excesses are monitored and reported daily.
Definition Where breaches in limits and triggers occur, actions are taken
by market risk functions to bring exposures back in line with
Market risk is the risk of a change in the market value, actual or
approved market risk appetite, with such breaches being
effective earnings, or future cash flows of a portfolio of financial
reported to management and entity ALCOs.
instruments, including commodities, caused by adverse
movements in market variables such as equity, bond and As part of the management of market risk, the Group’s major
commodity prices, currency exchange and interest rates, credit measurement techniques used to measure and control market
spreads, recovery rates, correlations and implied volatilities in risk is Value at Risk and Pv01 (present value at one). The
all of these variables. The Group takes on exposure to market Group applies ‘value at risk’ methodology (VaR) to its trading
risks, which is the risk that the fair value or future cash flows and banking portfolio, to estimate the market risk of foreign
of a financial instrument will fluctuate because of changes in exchange positions held and the maximum losses expected.
market prices. Market risks arise from open positions in interest Management applies Pv01 methodology to it’s trading and
rate, currency and equity products, all of which are exposed to non-trading portfolios to estimate the market interest rate risk
general and specific market movements and changes in the of positions held and the maximum losses that could arise. The
level of volatility of market rates or prices such as interest rates, estimates are based upon a number of assumptions for various
credit spreads, foreign exchange rates and equity prices. changes in market conditions.
Market risk measurement techniques: The assets and liabilities committee (ALCO) sets limits on
Trading book market risk both the value of risk and Pv01 that may be acceptable for
the Group. These are monitored on a daily basis by the Risk
Definition Management department. VaR is a statistically based estimate
Trading book market risk is represented by financial of the potential loss on the current portfolio from adverse
instruments, including commodities, held in the trading book, market movements. It expresses the ‘maximum’ amount the
arising out of normal global markets’ trading activity. Group might lose, but only to a certain level of confidence
(98%). There is therefore a specified statistical probability
Approach to managing market risk in the trading (2%) that actual loss could be greater than the VAR estimate.
book Pv01 is the present value impact of a one basis point move in
an interest rate. The use of these approaches does not prevent
The Group’s policy is that all trading activities are undertaken
losses outside of these limits in the event of more significant
within the Group’s global markets’ operations. The market risk
market movements. As VaR and Pv01 constitute an integral part
functions are independent of the Group’s trading operations
of the Group’s market risk control regime, limits are established
and are accountable to the relevant legal entity Asset-Liability
by the Board annually for all trading and non-trading portfolios.
Committees (ALCOs). ALCOs have a reporting line into Bank
Actual exposure against limits, together with a consolidated
ALCO, a subcommittee of Bank Leadership Council. All VaR and
groupwide VaR, is reviewed daily by the Group’s Treasury.
SVaR limits require prior approval from the respective entity
The quality of the VaR model is continuously monitored by
ALCOs. The market risk functions have the authority to set
back- testing the VaR results for trading books. All back-testing
these limits at a lower level. Market risk teams are responsible
exceptions and any exceptional revenues on the profit side of
for identifying, measuring, managing, monitoring and reporting
the VAR distribution are investigated.
Market risk measurement techniques

31 December
GROUP Average Maximum Minimum 2021
12 months to 31 December 2021 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Interest rate book - Trading 690,468 1,015,586 317,252 646,751
Interest rate book - FVOCI 491,069 923,819 367,504 730,754
Foreign exchange trading book VAR 421,141 1,503,117 93,731 224,385
31 December
GROUP Average Maximum Minimum 2020
12 months to 31 December 2020 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Interest rate book - Trading 459,362 627,595 295,446 531,092
Interest rate book - FVOCI 889,825 1,060,178 563,951 809,882
Foreign exchange trading book VAR 374,539 730,703 55,351 119,617
USD/UShs closed the year at 3558/78 levels, the unit depreciated Value at Risk utilisation was UShs 547million in 2021 which was
as the year ended due to an uptick in demand. However, the UShs more than UShs 379million registered in 2020 on back of an
was stronger for the greater part of December due to an increase increase in Client ﬂows during the year.
in USD inflows that were not matched with both corporate and
interbank demand. The FXT book closed the year with a USD 2.75 Foreign exchange risk
million long position in 2021. The Group takes on exposure to the effects of fluctuations in
the prevailing foreign currency exchange rates on its financial
Average normal Value at Risk Utilisation for the year on IRT desk
position and cash flows. The Asset and Liability Committee sets
was UShs 686 million in 2021 (2020: UShs 396 million) this was
limits on the level of exposure by currency and in total for both
due to increase in T-bill and Bond investments especially at the
overnight and intra-day positions, which are monitored daily.
long end of the bond curve. On the FXT book, average normal

NOTES
3(d) Market Risk (continued)
The Group has the following significant foreign currency exposure positions (all amounts in millions of Uganda Shillings)
USD Euro Other Total

As at 31 December 2021 UShs’m UShs’m UShs’m UShs’m
Assets
Cash and balances with Bank of Uganda 207,346 45,200 13,141 265,687
Loans and advances to banks 885,490 (1,880) 10,707 894,317
Amounts due from group companies 365,446 1 40,685 406,132
Loans and advances to customers 1,007,568 547,623 574 1,555,765
Derivative assets 64,481 - - 64,481
Other assets 4,524 1,237 39 5,800
Total Assets 2,534,855 592,181 65,146 3,192,182
Liabilities:
Customer deposits 2,308,374 188,812 20,997 2,518,183
Amounts due to banks 297,535 109,437 922 407,894
Amounts due to group companies 15,056 200,729 34,745 250,530
Derivative liabilities 70,272 - - 70,272
Subordinated bonds/debt 71,754 - - 71,754
Other liabilities 364,454 12,045 1,913 378,412
Total Liabilities 3,127,445 511,023 58,577 3,697,045
Net foreign currency exposure (592,590) 81,158 6,569 (504,863)
Net currency forward contracts (328,918) - - (328,918)
Options, swaps and other derivatives (173,835) - - (173,835)
Commitments to extend credit (630,169) - - (630,169)
Net foreign currency exposure (1,725,512) 81,158 6,569 (1,637,785)
USD Euro Other Total
As at 31 December 2020 UShs’m UShs’m UShs’m UShs’m
Total assets 2,082,874 770,921 48,358 2,902,153
Total liabilities 2,654,800 487,286 45,319 3,187,405
Net statement of financial position (571,926) 283,635 3,039 (285,252)
Net currency forwards (169,969) - - (169,969)
Options, swaps and other derivatives (165,994) - - (165,994)
Commitments to extend credit (686,332) - - (686,332)
Net foreign currency exposure (1,594,221) 283,635 3,039 (1,307,547)
Foreign currency risk sensitivity UShs equivalent
USD USD EUR EUR

2021 2020 2021 2020
Total net long/(short) position millions (1,448,891) (1,428,227) 81,158 283,635
Sensitivity (UGX depreciation) % 10 10 10
Impact on profit or loss and equity millions 8,625 5,675 2.092 1,246
The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar.
Foreign exchange risk arises from future commercial transactions, and recognised assets and liabilities. Currency exposure arising
from liabilities denominated in foreign currencies is managed primarily through the holding of bank balances in the relevant foreign
currencies. As at 31 December 2021, the company did not hold any foreign denominated assets and liabilities. (31 December 2020:
Nil)

NOTES
3(d) Market Risk (continued)
Interest rate risk

The Group takes on exposure to the effects of fluctuations in the prevailing levels of market interest rates on both its fair value and cash
flow risks. Interest margins may increase as a result of such changes but may reduce or create losses in the event that unexpected
movements arise. The Asset and Liability Committee (ALCO) sets limits on the level of mismatch of interest rate re-pricing that may be
undertaken, which is monitored daily.
The table that follows summarises the Group’s exposure to interest rate risks. Included in the table are the Group’s assets and liabilities
at carrying amounts, categorised by the earlier of contractual re-pricing or maturity dates. The Group does not bear interest rate risk
on items not on the statement of financial position.
Up to 1 1- 6 6 - 12 Non-interest
month months months Over 1 year bearing Total
UShs’m UShs’m UShs’m UShs’m UShs’m UShs’m
At 31 December 2021
Asset:
Cash and balances with Bank of Uganda - - - - 984,531 984,531
Financial investments - 181,093 234,396 428,856 - 844,345
Pledged Assets - - - 3,840 - 3,840
Trading assets 10,953 385,765 122,773 537,925 - 1,057,416
Deposits and balances due from other
banks 1,106,123 - - - - 1,106,123
Amounts due from group companies 401,399 - - - - 401,399
Loans and advances to customers 853,250 652,978 429,926 1,785,919 - 3,722,073
Derivative assets - - - - 129,164 129,164
Other assets - - - - 471,205 471,205
Total assets 2,371,725 1,219,836 787,095 2,756,540 1,584,900 8,720,096
Liabilities and shareholders’ funds:
Customer deposits 5,577,931 121,090 28,898 13,124 - 5,741,043
Deposits due to other banks 155,075 - - - - 155,075
Borrowed funds 7,456 30,008 100,331 27,401 - 165,196
Amounts due to group companies 260,393 - - - - 260,393
Derivative liabilities - - - 205,062 205,062
Other liabilities - - - - 584,453 584,453
Current tax liabilities - - - - 3,817 3,817
Subordinated bonds/debts - - - 71,754 - 71,754
Total liabilities 6,000,855 151,098 129,229 112,279 793,332 7,186,793
Total interest repricing gap (3,629,130) 1,068,738 657,866 2,644,261 (741,735) -

At 31 December 2020
Total assets 2,083,758 982,911 691,927 3,182,852 1,637,515 8,578,898
Total liabilities and shareholder’s equity 6,373,731 217,991 42,229 112,982 588,526 7,335,459
Total Interest repricing (4,290,038) 764,920 649,698 3,069,870 (194,450) -
ALCO monitors the sensitivity of net interest income to changes in interest rates. Limits are set and monitored monthly.
The sensititvity of net interest income to changes in interest rates for LCY (UShs) is as follows;
31st December 31st December

2021 2020
Change in net % of net Change in net % of net
interest income interest interest income interest
UShs’000 income UShs’000 income
100 bps Increase in interest rates 21,442,170 4.8% 11,868,492 2.9%
100 bps decrease in interest rates (21,405,070) -4.8% (11,429,302) -2.8%
NII sensititvity in for FCY(USD) is as follows;

31st December 31st December
2021 2020
Change in net % of net Change in net % of net
interest Income interest interest Income interest
UShs’000 income UShs’000 income
100bps Increase in interest rates 6,828,270 35.5% 5,191,830 2 0.1%
100bps decrease in interes trates (315,807) -1.6% (3,006,533) -11.6%
The Company does not have interest bearing financial assets and liabilities as at 31 December 2021 ( 31 December 2020: Nil)

NOTES
3(e) Liquidity risk (continued)
3(e) Liquidity risk The Group’s liquidity management process, as carried out
within the Group and monitored by the Treasury and Capital
Definations Management (TCM) team includes:
Liquidity risk is the risk that the Group is unable to meet its • Day-to-day funding managed by monitoring future cash
payment obligations associated with its financial liabilities when flows to ensure that requirements can be met. These include
they fall due and to replace funds when they are overdrawn. The replenishment of funds as they mature or are borrowed by
consequence may be the failure to meet obligations to repay customers.
depositors and fulfil commitments to lend.
• Maintaining a portfolio of highly marketable assets that can
Approach to managing liquidity risk easily be liquidated as protection against any unforeseen
The Group is exposed to daily call on its available cash interruption to cashflow;
resources from overnight deposits, current accounts, maturing • Monitoring balance sheet liquidity ratios against internal and
deposits, and calls on cash settled contingencies. The Group regulatory requirements; and managing the concentration
does not maintain cash resources to meet all of these needs and profile of debt maturities.
as experience shows that a minimum level of reinvestment of
maturing funds can be predicted with a high level of certainty. • Monitoring and reporting take the form of cash flow
measurement and projections for the next day, week and
The Asset and Liability Committee sets limits on the minimum month respectively, as these are key periods for liquidity
proportion of maturing funds available to meet such calls and management. The starting point for those projections is an
on the minimum level of inter- Bank and other borrowing analysis of the contractual maturity of the financial liabilities
facilities that should be in place to cover withdrawals at and the expected collection date of the financial assets.
unexpected levels of demand.
TCM also monitors unmatched medium-term assets, the level
and type of undrawn lending commitments, the usage of
overdraft facilities and the impact of contingent liabilities such
as standby letters of credit and guarantees.
2021 2020
GROUP UShs’ 000 UShs’ 000
Liquid assets to deposit ratio
Total deposits 5,741,043,166 5,493,479,534
Total liquid assets held 3,369,790,111 3,293,765,863
Liquidity ratio 58.7% 60.0%
Regulatory requirement 20.0% 20.0%

NOTES
The table that follows presents the undiscounted cash flows payable by the Group under financial liabilities by remaining contractual
maturities at the balance sheet date and from financial assets by expected maturity dates. All figures are in millions of Uganda
Shillings.
Gross
Carrying norminal Up to 1 Over 5
Amount In/ out flow month 2-6 Months 7-12 Months 1-5 Years Years
At 31 December 2021 Ushs’ m Ushs’ m Ushs’ m Ushs’ m Ushs’ m Ushs’ m Ushs’ m
Liabilities
Deposits from customers (5,741,043) (5,743,634) (5,588,492) (125,648) (29,219) (275) -
Deposits from other banks (155,075) (155,075) (155,075) - - - -
Amounts due to group
companies (260,393) (278,835) (59,665) - - - (219,170)
Derivative liabilities (205,062) (205,062) (171) (3,768) (7,935) (123,249) (69,939)
Borrowed funds (165,196) (167,841) (7,457) (30,008) (101,726) (28,650) -
Subordinated debt (71,754) (103,887) - (1,737) (1,737) (13,892) (86,521)
Other liabilities (588,270) (588,732) (556,961) (309) (1,673) (29,774) (15)
Total financial liabilities
(contractual maturity dates) (7,186,793) (7,243,066) (6,367,821) (161,470) (142,290) (195,840) (375,645)
Assets
Cash and bank balances with
Bank of Uganda 984,531 984,531 984,531 - - - -
Financial investments 844,345 985,794 - 194,887 252,339 501,455 37,113
Pledged assets 3,840 3,936 - 3,936 - - -
Trading assets 1,057,416 1,155,095 10,970 396,435 130,837 587,722 29,131
Loans and advances to banks 1,106,122 1,106,122 1,106,122 - - - -
Amounts due from group
companies 401,399 402,149 71,869 330,280 - - -
Loans and advances to
customers 3,722,073 5,721,204 631,003 816,727 263,745 2,137,851 1,871,878
Derivative assets 129,164 129,164 2,092 155 26,649 30,329 69,939
Other assets 241,570 241,570 241,570 - - - -
Total financial assets
(expected maturity dates) 8,490,460 10,729,565 3,048,157 1,742,420 673,570 3,257,357 2,008,061
Liquidity gap 1,303,667 3,486499 (3,394,317) 1,580,950 531,280 3,061,517 1,632,416
Cumulative Liquidity Gap 1,303,667 3,486499 (3,319,664) (1,738,714) (1,207,433) 1,854,084 3,486,499
Off-Balance Sheet
Guarantees (1,696,232) 1,696,232 113,340 520,031 446,556 616,305 -
LCs (223,704) 223,704 78,672 109,200 32,710 3,122 -
Commitments to extend credit (1,237,794) 1,237,794 1,237,794 - - - -
Total Off-Balance Sheet (3,157,730) 3,157,730 1,429,806 629,231 479,266 619,427 -
Liquidity gap (1,854,063) 6,644,229 (1,889,858) 2,210,181 1,010,546 3,680,944 1,632,416
Cumulative Liquidity Gap - 6,644,229 (1,889,858) 320,323 1,330,870 5,011,814 6,644,229
At 31 December 2020
Total financial liabilities
(contractual maturity dates) (7,335,459) (7,400,564) (6,750,847) (206,283) (55,408) (179,066) (208,960)
Total financial assets
(expected maturity dates) 8,335,202 8,874,908 2,333,552 822,582 439,654 2,871,277 2,407,843
Liquidity gap 999,743 1,474,344 (4,417,295) 616,299 384,246 2,692,211 2,198,883
Cumulative liquidity gap 999,743 1,474,344 (4,417,295) (3,800,996) (3,416,750) (724,539) 1,474,344
Total off balance sheet (3,294,953) 3,294,953 1,760,384 618,681 268,441 647,447 -
Net Liquidity gap (2,295,210) 4,769,297 (2,656,911) 1,234,980 652,687 3,339,658 2,198,883
Net cumulative liquidity gap - 4,769,297 (2,656,911) (1,421,931) (769,244) 2,570,414 4,769,297
Assets available to meet all of the liabilities and to cover outstanding loan commitments include cash, Central Bank balances, items in
the course of collection; loans and advances to banks; and loans and advances to customers. In addition, debt securities and treasury
and other bills have been pledged to secure liabilities.The Group would also be able to meet unexpected net cash outflows by selling
securities and accessing additional funding sources such as asset-backed markets.

NOTES
The table below analyses the Company’s non-derivative financial assets and liabilities that will be settled on a net basis into relevant
maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed
in the table below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the
impact of discounting is not significant.
Carrying Gross norminal

Company Amount In/ out flow Up to 1 month
Ushs’ m Ushs’ m Ushs’ m
At 31 December 2021
Liabilities
Amounts due to group companies (562) (562) (562)
Other liabilities (19,629) (19,629) (19,629)
Total financial liabilities (contractual maturity dates) (20,191) (20,191) (20,191)
Assets
Amounts due from group companies 35,758 35,758 35,758
Other Assets 15,825 15,825 15,825
Total financial assets (expected maturity dates) 51,583 51,583 51,583
Liquidity gap 31,392 31,392 31,392
Cumulative Liquidity Gap 31,392 31,392 31,392
Carrying Gross norminal

Company Amount In/ out flow Up to 1 month
Ushs’ m Ushs’ m Ushs’ m
At 31 December 2020
Liabilities
Amounts due to group companies (88,296) (88,296) (88,296)
Other liabilities (37,377) (37,377) (37,377)
Total financial liabilities (contractual maturity dates) (125,673) (125,673) (125,673)
Assets
Amounts due from group companies 154,995 154,995 154,995
Other Assets 12,799 12,799 12,799
Total financial assets (expected maturity dates) 167,794 167,794 167,794
Liquidity gap 42,121 42,121 42,121
Cumulative Liquidity Gap 42,121 42,121 42,121
3 (f) Off balance sheet

(i) Loan commitments
The dates of the contractual amounts of the Group’s off-balance sheet financial instruments that commit it to extend credit to
customers and other facilities (Note 34), are summarised in the table below.
(ii) Other financial facilities

Other financial facilities (Note 34) are also included below based on the earliest contractual maturity date.
Not later than Above 5

1 year 1 to 5 years years Total
Letters of credit 220,582,107 3,121,533 - 223,703,640
Guarantees 1,079,927,385 616,304,896 - 1,696,232,281
Commitments to extend credit 1,237,793,640 - - 1,237,793,640
2,538,303,132 619,426,429 - 3,157,729,561
Not later than 1 to 5 years Above 5 Total

1 year years
Letters of credit 236,856,084 912,625 - 237,768,709
Guarantees 977,203,827 646,533,702 - 1,623,737,529
Commitments to extend credit 1,433,445,628 - - 1,433,445,628
2,647,505,539 647,446,327 - 3,294,951,866

NOTES
177
3 (g) Fair value of financial assets and liabilities
3 (g) Fair value of financial assets and liabilities

The table below summarises the carrying amounts and fair values of those financial assets and liabilities not presented on the
Group’s statement of financial position at their fair value.
Carrying Value Fair Value

2021 2020 2021 2020
Financial assets
Cash and balances with Bank of Uganda 984,530,697 1,155,333,607 984,530,697 1,155,333,607
Loans and advances to banks 1,106,122,016 683,929,488 1,106,122,016 683,929,488
Amounts due from group companies 401,399,239 354,851,856 401,399,239 354,851,856
Loans and advances to customers 3,722,073,070 3,618,353,321 3,722,073,070 3,618,353,321
Other assets 2,778,671 8,881,791 2,778,671 8,881,791
Financial liabilities
Customer deposits 5,741,043,166 5,493,479,534 5,741,043,166 5,493,479,534
Amounts due to other banks 155,075,114 785,477,443 155,075,114 785,477,443
Borrowed funds 165,196,485 43,346,567 165,196,485 43,346,567
Amounts due to group companies 260,392,702 351,607,479 260,392,702 351,607,479
Subordinated debt 71,753,914 73,022,525 71,753,914 73,022,525
Other liabilities 240,005,964 219,750,597 240,005,964 219,750,597
Prices quoted in an active market: Valuation adjustments:

The existence of quoted prices in an active market represents Valuation adjustments are an integral part of the valuation
the best evidence of fair value. Where such prices exist, they process. Adjustments include, but are not limited to: credit
are used in determining the fair value of financial assets and spreads on illiquid issuers, implied volatilities on thinly traded
financial liabilities. stocks, correlation between risk factors, prepayment rates,
and other illiquid risk drivers. In making appropriate valuation
Valuation techniques: Where quoted market prices are adjustments, the Group and company apply methodologies
unavailable, the Group establishes fair value using valuation that consider factors such as bid offer spreads, liquidity,
techniques that incorporate observable inputs, either directly, counterparty and own credit risk. Exposure to such illiquid risk
such as quoted prices, or indirectly, such as those derived drivers is typically managed by:
from quoted prices, for such assets and liabilities. Parameter • Using bid-offer spreads that are reflective of the relatively low
inputs are obtained directly from the market, consensus pricing liquidity of the underlying risk driver;
services or recent transactions in active markets, whenever
possible. Where such inputs are not available, the Group makes • Raising day one profit provisions in accordance with IFRS;
use of theoretical inputs in establishing fair value (unobservable • Quantifying and reporting the sensitivity to each risk driver;
inputs). Such inputs are based on other relevant input sources and
of information and incorporate assumptions that include prices • Limiting exposure to such risk drivers and analysing this
for similar transactions, historic data, economic fundamentals, exposure on a regular basis.
and research information, with appropriate adjustments to
reflect the terms of the actual instrument being valued and Validation and control: All financial instruments carried
current market conditions. Unobservable inputs are subject to at fair value, regardless of classification, and for which there
management judgement and although the Group believes that are no quoted market prices for that instrument, are fair
its estimates of fair values are appropriate, changing one or valued using models that conform to international best
more of these assumptions to reasonably possible alternative practice and established financial theory. These models are
values would affect the reported fair values of these financial validated independently by the Group’s model validation
instruments. unit and formally reviewed and approved by the market risk
methodologies committee. This control applies to both off-
Valuation techniques used for financial instruments include
the-shelf models as well as those developed internally by the
the use of financial models that are populated using market
Group. Further, all inputs into the valuation models are subject
parameters corroborated by reference to independent market
to independent price validation procedures carried out by the
data, where possible, or alternative sources, such as, third
Group’s market risk unit. Such price validation is performed
party quotes, recent transaction prices or suitable proxies.
on at least a monthly basis, but daily where possible given the
The fair value of certain financial instruments is determined
availability of the underlying price inputs. Independent valuation
using industry standard models such as, discounted cash flow
comparisons are also performed and any significant variances
analysis and standard option pricing models. These models are
noted are appropriately investigated. Less liquid risk drivers,
generally used to estimate future cash flows and discount these
which are typically used to mark level 3 assets and liabilities
back to the valuation date. For complex or unique instruments,
to model, are carefully validated and tabled at the monthly
more sophisticated modelling techniques may be required,
price validation forum to ensure that these are reasonable and
which require assumptions or more complex parameters such
used consistently across all entities in the Group. Sensitivities
as correlations, prepayment spreads, default rates and loss
arising from exposures to such drivers are similarly scrutinised,
severity.
together with movements in level 3 fair values. They are also
disclosed on a monthly basis by the market risk and asset and
liability committees.
Portfolio exception: The Group, on meeting certain qualifying
criteria, elected the portfolio exception to measure the fair value
of certain groups of financial assets and financial liabilities on a
net basis.

NOTES
3 (h) Fair value hierarchy (continued)
3 (h) Fair value hierarchy prices for identical or similar instruments in markets that are
considered less than active; or other valuation techniques
The determination of fair value for financial assets and liabilities where all significant inputs are directly or indirectly observable
for which there is no observable market price requires the use from market data.
of valuation techniques. For financial instruments that trade
infrequently and have little price transparency, fair value is less Level 3: Valuation techniques using significant unobservable
objective, and requires varying degrees of judgment depending inputs. This category includes all instruments where the
on liquidity, concentration, uncertainty of market factors, pricing valuation technique includes inputs not based on observable
assumptions and other risks affecting the specific instrument. data and the unobservable inputs have a significant effect on
The Group measures fair values using the following fair value the instrument’s valuation.
hierarchy that reflects the significance of the inputs used in
This category includes instruments that are valued based
making the measurements:
on quoted prices for similar instruments where significant
Level 1: Quoted market price (unadjusted) in an active market unobservable adjustments or assumptions are required to
for an identical instrument. reflect differences between the instruments. The information
below shows the classification of financial instruments held at
Level 2: Valuation techniques based on observable inputs, fair value into the valuation hierachy as at 31 December 2021
either directly (i.e. as prices) or indirectly (i.e, derived from and 2020.
prices). This category includes instruments valued using quoted
market prices in active markets for similar instruments; quoted
31 December 2021 Level 1 Level 2 Level 3 Total

GROUP UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Financial assets
Coin and bank notes 432,277,745 - - 432,277,745
Bank of Uganda cash reserving requirement 517,340,000 - - 517,340,000
Derivative assets - 129,164,041 - 129,164,041
Trading assets - 1,057,416,156 - 1,057,416,156
Pledged assets - 3,840,314 - 3,840,314
Financial investments - 844,166,562 - 844,166,562
Other financial investments - - 178,468 178,468
Total assets 949,617,745 2,034,587,073 178,468 2,984,383,286
Derivative liabilities - 205,061,504 - 205,061,504
Total liabilities - 205,061,504 - 205,061,504

Financial assets
Coin and bank notes 442,626,522 - - 442,626,522
Bank of Uganda cash reserving requirement 456,990,000 - - 456,990,000
Derivative assets - 160,917,126 - 160,917,126
Trading assets - 1,101,949,038 - 1,101,949,038
Pledged Assets - 460,527,242 - 460,527,242
Financial investments - 721,573,358 - 721,573,358
Amounts due from group companies - - 199,424 199,424
Total assets 899,616,522 2,444,966,764 199,424 3,344,782,710
Derivative liabilities - 229,733,411 - 229,733,411
Total liabilities - 229,733,411 - 229,733,411
The balances with the central bank excluding cash reserving and may often hold a relationship with other observable
requirement was in terms of IFRS 9 classified as amortised cost. and unobservable market parameters. Where material and
Coins and bank notes have been classified at fair value through possible, such relationships are captured in the valuation by
profit or loss - default as the contractual terms do not give rise way of correlation factors, though these factors are, themselves,
on specified dates to cash flows that represent solely payments frequently unobservable. In such instances, the range of possible
of principal and interest on the principal amount outstanding as and reasonable fair value estimates is taken into account when
per IFRS9. determining appropriate model adjustments.
Sensitivity and interrelationships of inputs Fair value instruments in level 3

The behaviour of the unobservable parameters used to fair The following table presents the changes in Level 3 instruments
value level 3 assets and liabilities is not necessarily independent for the year ended 31 December 2021 and 31 December 2020.

NOTES
3 (h) Fair value hierarchy (continued)
Other investment fair valued through profit or loss

Other Investment Fair valued through
GROUP
profit or loss
2021 2020
Shs’000 Shs’000
Opening balance 199,424 182,654
Gains and (losses) recognised in profit or loss (20,956) 16,770
Closing balance 178,468 199,424
Total gains or losses for the period included in profit or loss under other gains/(losses) (20,956) 16,770
The table below shows items not measured at fair value for which fair value is disclosed
Financial assets
Balances with Bank of Uganda 34,912,953 - - 34,912,953
Loans and advances to banks - - 1,106,122,016 1,106,122,016
Amounts due from group companies - - 401,399,239 401,399,239
Loans and advances to customers - - 3,722,073,070 3,722,073,070
Other financial assets and related party receivables - - 2,778,671 2,778,671
Total assets 34,912,953 - 5,232,372,996 5,267,285,949
Customer deposits - - 5,741,043,166 5,741,043,166
Amounts due to other banks - - 155,075,114 155,075,114
Borrowed funds - - 165,196,485 165,196,485
Subordinated debt - - 71,753,914 71,753,914
Amounts due to group companies - - 260,392,702 260,392,702
Other Financial liabilities - - 240,005,964 240,005,964
Total liabilities - - 6,633,467,345 6,633,467,345

Financial assets
Balances with Bank of Uganda 255,717,085 - - 255,717,085
Loans and advances to banks - - 683,929,488 683,929,488
Amounts due from group companies - - 354,851,856 354,851,856
Loans and advances to customers - - 3,618,353,321 3,618,353,321
Other financial assets and related party receivables - - 8,881,791 8,881,791
Total assets 255,717,085 - 4,666,016,456 4,921,733,541
Customer deposits - - 5,493,479,534 5,493,479,534
Amounts due to other banks - - 785,477,443 785,477,443
Borrowed funds - - 43,346,567 43,346,567
Subordinated debt - - 73,022,525 73,022,525
Amounts due to group companies - - 351,607,479 351,607,479
Other financial liabilities - - 219,750,597 219,750,597
Total liabilities - - 6,966,684,145 6,966,684,145


NOTES
3 (i) Classification of assets and liabilities
3 (i) Classification of assets and liabilities
Accounting classifications and fair values of assets and liabilities

The table below sets out the Groups classification of financial assets and liabilities, and their fair values
FVTPL FVOCI Other

Amortised Total carrying
Held-for- Debt Equity assets/
Default cost amount
trading instruments instruments liabilities
2021 UShs’ m UShs’ m UShs’ m UShs’ m UShs’ m UShs’ m UShs’ m
Assets
Cash and balances with central banks - 949,618 - - 34,913 - 984,531
Derivative assets 129,164 - - - - - 129,164
Financial investments - - 844,167 178 - - 844,345
Trading assets 1,057,416 - - - - - 1,057,416
Pledged assets - - 3,840 - - - 3,840
Loans and advances to banks - - - - 1,106,122 - 1,106,122
Loans and advances to customers - - - - 3,722,073 - 3,722,073
Amounts due from group companies - - - - 401,399 - 401,399
Other financial assets - - - - 2,779 - 2,779
Other non-financial assets - - - - - 468,427 468,427
1,186,580 949,618 848,007 178 5,267,286 468,427 8,720,096
Liabilities
Derivative liabilities 205,062 - - - - - 205,062
Deposits from banks - - - - 155,075 - 155,075
Deposits from customers - - - - 5,741,043 - 5,741,043
Subordinated debt - - - - 71,754 - 71,754
Amounts due to group companies - - - - 260,393 - 260,393
Borrowed funds - - - - 165,196 - 165,196
Other financial liabilities - - - - 240,006 - 240,006
Other non financial liabilities - - - - - 348,264 348,264
205,062 - - - 6,633,467 348,264 7,186,793
FVTPL FVOCI Other

Amortised Total carrying
Held-for- Debt Equity assets/
Default cost amount
trading instruments instruments liabilities
2020 UShs’ m UShs’ m UShs’ m UShs’ m UShs’ m UShs’ m UShs’ m
Assets
Cash and balances with central banks - 899,617 - - 255,717 - 1,155,334
Derivative assets 160,917 - - - - - 160,917
Financial investments - - 721,574 199 - - 721,773
Trading assets 1,101,949 - - - - - 1,101,949
Pledged assets 352,575 - 107,952 - - - 460,527
Loans and advances to banks - - - - 683,929 - 683,929
Loans and advances to customers - - - - 3,618,353 - 3,618,353
Amounts due from group companies - - - - 354,852 - 354,852
Other financial assets - - - - 8,882 - 8,882
Other non-financial assets - - - - - 312,382 312,382
1,615,441 899,617 829,526 199 4,921,733 312,382 8,578,898
Liabilities
Derivative liabilities 229,733 - - - - - 229,733
Deposits from banks - - - - 785,477 - 785,477
Deposits from customers - - - - 5,493,480 - 5,493,480
Subordinated debt - - - - 73,023 - 73,023
Amounts due to group companies - - - - 351,607 - 351,607
Borrowed funds - - - - 43,347 - 43,347
Other financial liabilities - - - - 219,751 - 219,751
Other non financial liabilities - - - - - 139,041 139,041
229,733 - - - 6,966,685 139,041 7,335,459

NOTES
4. Segment information
181
The table below sets out the Company’s classification of financial assets and liabilities, and their fair values:
COMPANY 2021 2020

Financial assets at amortised cost
Amounts due from group companies 35,757,732 154,995,286
Other assets 506,189 227,504
Total assets 36,263,921 155,222,790
Financial liabilities at amortised cost
Amounts due to group companies 562,112 88,295,740
Other liabilities 19,628,784 37,377,010
Total liabilities 20,190,896 125,672,750
4. Segment information Business and Commercial clients

The principal business units in the Group are as follows: The Business and Commercial client (BCC) segment provides
broad based client solutions for a wide spectrum of small-
and medium-sized businesses as well as large commercial
Client segment enterprises. Our client coverage support extends across a
We have shifted the business to be future-ready and client wide range of industries, sectors and solutions that deliver
centric. Our reporting has changed to align to this principle. The the necessary advisory, networking and sustainability support
client segments will be responsible for designing and executing required by our clients to enable their growth.
the client value proposition strategy. Client segments will own
the client relationship and create multi-product customer
experiences to address life events distributed through our client
Corporate and Investment Banking CIB
The CIB client segment serves large companies (multinational,
engagement platforms
regional and domestic), governments, parastatals and
institutional clients across Africa and internationally. Our
Consumer and High Net Worth clients clients leverage our in-depth sector and regional expertise, our
The consumer and high net worth (CHNW) client segment specialist capabilities and our access to global capital markets
is responsible for the end-to-end lifecycle of clients. CHNW for advisory, transactional, trading and funding support.
services individual clients. We enable our clients’ daily lives by
providing relevant solutions throughout their life journeys Where reporting responsibility for individual cost centres and
divisions within segments change, the segmental analyses'
comparative figures are reclassified accordingly.
Business Consumer Corporate and Treasury

Consumer and High Net Investment and Capital Other
GROUP Clients Worth Banking management Subsidiaries Total
Income statement UShs’ 000 UShs’ 000 UShs’ 000 Shs’ 000 Shs’ 000 UShs’ 000
Year ended 31 December 2021
Net Interest income 155,104,993 167,169,621 208,181,797 6,763,292 38,291 537,257,994
Fee and commission income 52,048,521 69,607,708 36,771,623 964,308 339,155 159,731,315
Net trading income 36,878,863 12,358,949 145,231,993 - - 194,469,805
Other income 563,388 6,874,961 6,197 105,183 2,497,908 10,047,637
Total operating income 244,595,765 256,011,239 390,191,610 7,832,783 2,875,354 901,506,751
Impairment losses (43,846,428) (22,585,550) (3,319,110) (656,578) - (70,407,666)
Other operating expenses (171,878,105) (139,742,443) (161,688,148) 4,726,603 (11,306,833) (479,888,926)
Profit before tax 28,871,232 93,683,246 225,184,352 11,902,808 (8,431,479) 351,210,159
Income tax expense (900,351) (20,581,018) (59,917,725) (2,804,382) 2,305,409 (81,898,067)
Profit after tax 27,970,881 73,102,228 165,266,627 9,098,426 (6,126,070) 269,312,092
Year ended 31 December 2020

Net Interest income 156,727,918 156,397,619 195,718,620 3,406,917 294,481 512,545,555
Fee and commission income 47,334,391 59,837,675 44,929,470 418 - 152,101,954
Net trading income 30,991,004 10,381,021 114,218,845 - - 155,590,870
Other income 313,787 9,005,195 237,933 (153,029) 229,783 9,633,669
Total operating income 235,367,100 235,621,510 355,104,868 3,254,306 524,264 829,872,048
Impairment losses (49,589,137) (14,611,468) (27,496,077) (37,423) - (91,734,105)
Other operating expenses (162,187,530) (126,445,146) (138,258,739) 9,931,965 (2,565,704) (419,525,154)
Profit before tax 23,590,433 94,564,896 189,350,052 13,148,848 (2,041,440) 318,612,789
Income tax expense (6,025,210) (22,552,782) (45,754,086) (3,201,568) 607,182 (76,926,464)
Profit after tax 17,565,223 72,012,114 143,595,966 9,947,280 (1,434,258) 241,686,325
The segmental information in the table above includes transactions made between different segments within the Group that give rise
to a cost in one segment and income to another segment. These transactions have no net impact to the Group as a whole. In 2021
these transactions had a net interest income of UShs 39.2billion (2020: UShs 21.8billion) and net trading cost of UShs 39.2billion
(2020: UShs 21.8billion).
The change in operating segments from 1 January 2021 has resulted in a change in presentation in the form of renaming certain
line items throughout these financial statements to align with the new client solutions terminology. This change in presentation was
applied retrospectively and the segmental analyses' comparative figures were reclassified accordingly. This change had no impact on
the comparative figures within the primary statements or notes thereto.
NOTES
182 4. Segment information (continued)
Corporate
Business Consumer and Treasury
Consumer and High Net Investment and Capital Other
GROUP Clients Worth Banking management Subsidiaries Total
Statement of financial position UShs’ 000 UShs’ 000 UShs’ 000 Shs’ 000 Shs’ 000 UShs’ 000
Total assets 1,164,664,634 1,263,555,840 5,770,637,332 514,794,720 6,443,275 8,720,095,801
Total liabilities 952,689,768 1,076,950,163 5,082,421,771 118,254,638 (43,523,776) 7,186,792,564
Equity 169,579,893 149,284,542 550,572,449 613,899,302 49,967,052 1,533,303,238
Other segment items included in the
income statement
Depreciation (577,843) (18,286,405) (1,067,375) (13,877,167) 791,149 (33,017,641)
Amortisation of intangible assets - (2,295,674) - (12,745,730) - (15,041,404)

Total assets 1,114,658,509 1,196,935,723 5,810,182,131 450,414,122 6,707,641 8,578,898,126
Total liabilities 919,345,431 1,024,394,204 5,144,895,267 296,209,316 (49,385,480) 7,335,458,738
Equity 146,363,715 134,781,075 545,368,380 360,833,097 56,093,121 1,243,439,388
Other segment items included
in the income statement
Depreciation (686,653) (19,610,675) (936,102) (13,898,038) 1,409,726 (33,721,742)
Amortisation of intangible assets - (3,378,838) - (11,323,809) - (14,702,647)
5 Interest income
2021 2020
Financial investments at FVOCI 97,144,757 112,041,710
Loans and advances to customers at amortised cost 438,422,213 417,479,352
Loans and advances to banks at amortised cost 3,514,019 1,994,501
Placements with group companies at amortised cost 310,924 723,221
Interest income on credit impaired financial assets 4,602,713 3,994,802
543,994,626 536,233,586
All the amounts reported above comprise interest income calculated using the effective interest method.
6 Interest expense
GROUP COMPANY
2021 2020 2021 2020
Current accounts 20,467,557 19,246,878 - -
Savings and deposit accounts 13,688,550 11,129,706 - -
Subordinated debt: - group entity 3,807,113 5,202,256 - -
Deposits and borrowings from banks 248,626 243,807 - -
Amounts due to group companies 3,598,404 2,957,554 - -
Interest paid on other money market borrowings 1,838,972 4,002,349 - -
Interest expense on lease liabilities 2,319,326 2,658,887 75,253 37,816
45,968,548 45,441,437 75,253 37,816
All interest expense relates to financial liabilities at amortised cost except for interest expense on lease liabilities.
7 Net fee and commission income

a) Disaggregation of fees and commission income in the following table, fee and commission income from
contracts with customers is disaggregated by major type of services.
GROUP
2021 2020
Fee and commission income
Transactional fees and commission income 151,430,190 119,700,314
Trade fees and commission income 5,944,685 21,308,551
Credit related fees 16,242,173 24,722,295
173,617,048 165,731,160
Fee and commission expense
Transactional fees and commission expenses (8,857,656) (8,449,791)
Net fee and commission income 164,759,392 157,281,369

NOTES
7. Net fee and commission income(continued) 183
Net fee and commission income above exclude amounts included in determining the effective interest rate on financial assets
measured at amortised cost of UShs 6,070 million (2020: UShs 5,305 million). All net fee and commission income relate to financial
assets or liabilities at amortised cost.
8 Net trading income

GROUP
2021 2020
Foreign exchange trading loss - realized (9,176,401) (3,829,695)
Foreign exchange trading gains - unrealized gains 10,285,907 27,942,768

Trading gains on financial instruments 234,583,509 149,836,365
Unrealized losses/gain on financial instruments (1,253,337) 4,131,189
Trading loss - other (737,957) (736,349)
233,701,721 177,344,278
Debt securities include the effect of buying and selling and changes in the fair value of government securities. Included in foreign
exchange are realised and unrealised gains and losses from spot and forward contracts and other currency derivatives
9 Other gains and losses on financial instruments

GROUP
2021 2020
Derecognition losses (3,295) -
Realised fair value (losses)/gains on debt instruments at fair value through other comprehensive
incomes - (132,234)
(3,295) (132,234)
10 Other operating income:

10a. Dividend income
COMPANY
2021 2020
Dividends income - 129,000,000
- 129,000,000
10b. Other Operating income

GROUP COMPANY
2021 2020 2021 2020
Gain on disposal of property and equipment (43,280) 204,640 - -
Rental income - - - 583,471
Other income 7,041,832 5,899,954 - -
6,998,552 6,104,594 - 583,471
Other income includes profit share in relation to bancassurance fees of UShs 3.8billion (2020:Ushs 4.1billion).
11 Impairment charge for credit losses

GROUP
2021 2020
Net expected credit losses raised and released
Loans and advances to customers (Note 19) (74,958,072) (100,432,597)
Loans and advances to banks (Note 18) 21,088 124,823
Financial Investments (Note 17) (97,370) (78,193)
Off balance sheet (Note 31) 125,482 (2,561,564)
Recoveries on loans and advances previously written off 8,209,129 9,237,596
Interest in suspense released on cured loans and advances 3,154,415 1,975,830
Modification losses (6,862,338) -
(70,407,666) (91,734,105)

NOTES
184 12) Employee benefits expense
12 Employee benefits expense

GROUP COMPANY
2021 2020 2021 2020
Salaries and wages 132,857,550 123,813,775 4,874,325 1,516,260
Contributions to statutory and other defined benefit plans 28,650,130 30,536,870 2,101,464 495,871
Other employee benefits 17,040,158 15,161,489 439,416 185,407
178,547,838 169,512,134 7,415,205 2,197,538
13 Other operating expenses

GROUP COMPANY
2021 2020 2021 2020
Premises 10,897,901 10,327,380 237,486 75,409
Office expenses 3,731,156 3,888,875 - -
Auditors remuneration 997,093 1,585,840 35,433 46,456
Professional fees 5,954,173 8,437,897 486,442 356,019
IT expenses 65,846,790 58,491,809 41,550 -
Travel and entertainment 4,136,586 4,754,327 290,525 69,103
Marketing and advertising 11,047,761 7,709,026 43,560 13,600
Insurance 3,850,497 4,312,035 - -
Deposit Protection Scheme Contribution 10,453,179 8,434,209 - -
Security expenses 9,180,618 10,753,979 16,903 300
Franchise fees 26,958,959 24,874,501 - -
Directors fees and expenses 858,164 692,098 308,070 95,095
Training costs 1,702,569 1,774,960 167,454 18,890
Operational losses 24,040,999 2,977,290 - 734
Indirect taxes (VAT) 18,297,625 19,301,130 - (22,180)
Bank charges 1,566,545 1,117,416 75,801 29,057
Credit Bureau expenses 1,915,650 1,313,465 - -
Other operating expenses 53,821,475 32,360,502 (22,234) 296,409
255,257,740 203,106,739 1,680,990 978,892
Other operating expenses (note 13 above) is comprised of the following items;
GROUP
2021 2020
Communication expenses 9,811,661 9,423,392
Commissions paid 24,648,544 8,188,615
Administration and membership fees 1,402,849 1,111,335
Donations: non-tax allowable 1,287,719 3,385,777
Conference expenses (non-training) 650,258 321,162
Refreshments 1,066,354 1,022,215
Other operating costs 14,954,090 8,908,006
53,821,475 32,360,502
Included in the IT costs are additional costs relating to the investment in the Group’s systems specifically the upgrade of the Groups
core banking system (training costs, support costs and annual license) and other peripheral system that support in the day-to-day
operations of the Group. In addition, the Group incurred extra IT costs to enable its staff work remotely following disruption by the
pandemic. The other operating costs include the digital financial inclusion contribution costs of Ushs 7.6 billion (2020: Ushs 10.8
billion) and provisions for unspecified expected losses of UShs 6.9 billion netted off by releases during the year (2020: UShs 6.5
billion).
14 Income tax expense

GROUP COMPANY
2021 2020 2021 2020
Current income tax 92,477,319 88,366,848 175,042 (8,548)
Deferred income tax (see note 20) (10,579,252) (11,440,384) (2,923,169) (855,482)
81,898,067 76,926,464 (2,748,127) (864,030)

NOTES
13) Other operating expenses (continued) 185
The income tax on the Group’s profit before income tax differs from the theoretical amount that would arise using the statutory
income tax rate as follows:
GROUP COMPANY
2021 2020 2021 2020
Profit before income tax 351,210,159 318,612,789 (9,740,107) 126,102,401
Tax calculated at statutory tax rate of 30% (2020: 30%) 105,363,048 95,583,837 (2,922,032) 37,830,720
Income not subject to tax - - - (38,700,000)

Income subject to tax at 20% (22,202,705) (21,351,119) - -
Income subject to tax at 10% (3,398,617) (223,995) - -
Expenses not deductible for tax purposes 2,715,846 2,639,988 173,905 5,250
Prior year current income tax (over)/under provision (579,505) 277,753 - -
81,898,067 76,926,464 (2,748,127) (864,030)
Current income tax liability/(recoverable)
The movement in the current income tax liability/ (recoverable) was as follows:
GROUP COMPANY
2021 2020 2021 2020
At start of year (5,066,711) (2,038,942) (11,720,417) (15,883,532)
Prior year under provisions - 277,753 - -
Charge for the year 92,477,319 88,089,095 175,042 (8,548)
Income tax paid (83,593,142) (91,394,617) - 4,171,663
At end of year 3,817,466 (5,066,711) (11,545,375) (11,720,417)
15 Earnings per share

GROUP COMPANY
2021 2020 2021 2020
Profit attributable to ordinary shareholders (UShs’000) 269,312,092 241,686,325 (6,991,980) 126,966,431
Weighted average number of ordinary shares in issue
(thousands) 51,188,670 51,188,670 51,188,670 51,188,670
Basic and diluted earnings per share
(expressed in Shs per share) 5.26 4.72 (0.14) 2.48
Basic
Dividends proposed 50,000,000 95,000,000 50,000,000 95,000,000
Weighted average number of ordinary shares in issue
(thousands) 51,188,670 51,188,670 51,188,670 51,188,670
Dividends per share 0.98 1.86 0.98 1.86
There were no potentially dilutive shares as at 31 December 2021 or on 31 December 2020. Therefore, diluted earnings per share are
the same as basic earnings per share.
16 Cash and balances with Bank of Uganda

GROUP COMPANY
2021 2020 2021 2020
Coins and bank notes 432,277,744 442,626,522 - 1,000

Balances with Bank of Uganda 552,252,953 712,707,085 - -
984,530,697 1,155,333,607 - 1,000
Banks are required to maintain a prescribed minimum cash balance with Bank of Uganda. The amount is determined by Bank of
Uganda on a preset formula on a rolling fortnightly basis. The reserve as at 31 December, 2021 was UShs 517,340 million (2020: UShs
456,990 million). The cash reserves available for use in the Group’s day to day activities and may fall by upto 50% on a given day.
However, there are sanctions for non-compliance.

NOTES
186 17) Other financial investments
17 Other financial investments

GROUP
2021 2020
17.1) Financial investments
Treasury bills
At start of year 305,755,107 351,397,845
Additions 272,605,058 611,206,499
Disposals (234,570,899) (688,057,262)
Fair value adjustments (2,123,114) 1,752,534
Transfer (to) and from pledged assets (3,840,314) 29,455,491
At end of year 337,825,838 305,755,107
Treasury bonds
At start of year 415,818,251 414,779,871
Additions 123,367,191 290,227,094
Disposals (61,552,932) (172,057,108)
Fair value adjustments 28,708,214 (9,179,646)
Transfer to pledged assets - (107,951,960)
At end of year 506,340,724 415,818,251
Total at end of year 844,166,562 721,573,358
Other equity investments
Total other equity investments 178,468 199,424
178,468 199,424
844,345,030 721,772,782
17.2) Trading assets
Treasury bills
At start of year 572,844,527 305,270,153
Additions 4,463,604,259 4,970,864,118
Disposals (4,826,842,035) (4,617,541,220)
Fair value adjustments (572,343) 1,099,540
At end of year 209,034,408 572,844,527
Treasury bonds
At start of the year 529,104,511 307,280,951
Additions 7,492,212,280 2,627,976,344
Disposals (7,177,321,997) (2,142,247,345)
Fair value adjustments 4,386,954 1,821,779
At end of year 848,381,748 529,104,511
1,057,416,156 1,101,949,038
1,901,761,186 1,823,721,820
Government treasury bills are debt securities issued by Bank of Uganda for a term of three months, six months or one year.
Government treasury bonds are debt instruments issued by Bank of Uganda for a term of either two, three, five or ten years.
Government securities are categorised as fair value through other comprehensive income which are fair valued through reserves and
trading assets, which are fair valued through the income statement. The weighted average effective interest rate on treasury bills and
bonds was 12.91% (2020: 12.97%).
Other equity investments relate to investment in the Society for Worldwide Interbank Financial Telecommunication (SWIFT) shares,
an entity that provides a network that enables financial institutions to send and receive information about financial transactions in a
secure, standardised and reliable environment.
The following table presents details of financial assets which have been sold or otherwise transferred, but which have not been
derecognised in their entirety or which were partially derecognised together with their associated liabilities. This table does not
disclose the total risk exposure in terms of these transactions, instead it provides disclosures as required by IFRS.

NOTES
17) Other financial investments (continued) 187
GROUP
Carrying Carrying
amount of amount of Fair value of Fair value of
transferred associated transferred associated
17.3) Pledged assets assets liabilities assets liabilities Net fair value
UShs’000 UShs’000 UShs’000 UShs’000 UShs’000
2021
Securities pledged under clearing house
values 3,840,314 - 3,879,862 - 3,879,862
Pledged assets (as recognised on the
statement of financial position) 3,840,314 - 3,879,862 - 3,879,862
Total assets pledged 3,840,314 - 3,879,862 - 3,879,862
GROUP
Carrying Carrying
amount of amount of Fair value of Fair value of
transferred associated transferred associated
assets liabilities assets liabilities Net fair value
2020
Securities pledged under clearing house
values 168,372,750 - 167,413,294 - 167,413,294
Securities pledged under repurchase
agreements 292,154,492 300,057,534 290,609,022 300,049,285 (9,440,263)
Pledged assets (as recognised on the
statement of financial position) 460,527,242 300,057,534 458,022,316 300,049,285 157,973,031
Total assets pledged 460,527,242 300,057,534 458,022,316 300,049,285 157,973,031
As at 31 December 2021, the Group has pledged government securities with a carrying amount of UShs 3.94 billion to Bank of Uganda
under the automated clearing house rules (2020: UShs 168 billion). As at 31 December 2020, the Group had obtained funding from
Bank of Uganda amounting to UShs 300 billion as disclosed in Note 29 under repurchase agreements for government securities with
a fair value as at that date of Shs 292 billion. Bank of Uganda has the right to transfer or sell these instruments. Accordingly, these
have been presented separately on the face of the statement of financial position as pledged assets.

NOTES
188 17) Other financial investments (continued)
Reconciliation of expected credit losses for debt financial investments measured at FVOCI
Net
impairments
Opening ECL raised/ Closing ECL
GROUP 2021/01/01 Income statement movements (released) 2021/12/31
2021 UShs’000 UShs’000 UShs’000
ECL on new Subsequent Change in
exposures changes in ECL due to
raised ECL derecognition
UShs’000 UShs’000 UShs’000
Financial Investments
measured at FVOCI
Stage 1 (188,212) (140,073) (20,711) 63,414 (97,370) (285,582)
Stage 2 - - - - - -
Stage 3 - - - - - -
Total (188,212) (140,073) (20,711) 63,414 (97,370) (285,582)

Net
2020 impairments
Opening ECL raised/ Closing ECL
GROUP 2020/01/01 Income statement movements (released) 2020/12/31
2020 UShs’000 UShs’000 UShs’000
Financial Investiments
measured at FVOCI
Stage 1 (110,019) (188,212) - 110,019 (78,193) (188,212)
Stage 2 - - - - - -
Stage 3 - - - - - -
Total (110,019) (188,212) - 110,019 (78,193) (188,212)
18 Loans and advances to banks

GROUP
2021 2020
Measured at amortized cost UShs’ 000 UShs’ 000
Items in course of collection - foreign banks 3,455,712 17,560,694
Placements with local banks 259,520,537 91,104,336
Placements with foreign banks 843,277,115 575,379,667
Gross loans and advances 1,106,253,364 684,044,697
Less: provision for impairment (131,348) (115,209)
1,106,122,016 683,929,488
The weighted average effective interest rate on loans and advances to banks was 0.6% (2020: 0.6%)

18 Loans and advances to banks (continued)
Reconciliation of expected credit losses for loans and advances to banks measured at amortized cost as at 31 December 2021.
Net
Opening impairments Exchange
ECL Total transfers raised/ and other Closing ECL
2021/01/01 between stages Income statement movements (released) movements 2021/12/31

ECL
on new Subsequent Change in
2021 raised ECL derecognition
Stage 1 (32,753) 37,402 (21,775) (102,092) 29,352 (57,113) (36,905) (126,771)
Stage 2 (82,456) (37,402) (3,562) 119,165 - 78,201 (322) (4,577)
Stage 3 - - - - - -
Total (115,209) - (25,337) 17,073 29,352 21,088 (37,227) (131,348)
Net
Opening impairments Exchange
ECL Total transfers raised/ and other Closing ECL
2020/01/01 between stages Income statement movements (released) movements 2020/12/31
ECL
on new Subsequent Change in
2020 raised ECL derecognition
Stage 1 (137,561) 187 (29,315) 230,840 5,549 207,074 (102,453) (32,753)

Stage 2 (2) (187) (82,041) (210) - (82,251) (16) (82,456)
Stage 3 - - - - - - -
Total (137,563) - (111,356) 230,630 5,549 124,823 (102,469) (115,209)

18) Loans and advances to banks (continued)

NOTES
189
NOTES
190 19) Loans and advances to customers
19 Loans and advances to customers

GROUP
2021 2020
Home services 151,291,900 133,036,736
Vehicle and asset finance 159,452,367 173,890,373
Card and payments 3,750,141 3,722,980
Personal unsecured lending 1,064,116,653 804,647,269
Business and other lending 734,367,289 793,559,800
Corporate lending 1,280,377,223 1,209,873,676
Sovereign lending 503,289,483 672,367,601
Gross loans and advances 3,896,645,056 3,791,098,435
Less: Interest in suspense (5,199,772) (7,656,032)
Less: Expected credit loss for loans and advances measured at amortised cost (169,372,214) (165,089,082)
3,722,073,070 3,618,353,321
Included in other loans and advances is the fair value adjustment of loans advanced to staff at off market rates of UShs 21,389 million
(2020: UShs 15,927 million).

19 Loans and advances to customers (continued)
Reconciliation of expected credit losses for loans and advances to customers measured at amortised cost as at 31 December 2021
Total
Impaired Exchange
transfers Net impairments TVM
Opening ECL Income statement movements accounts and other Closing ECL
GROUP between raised/(released) unwinding and
written-off movements
2021 stages IIS movement
ECL on new Subsequent Change in ECL
exposures changes in due to
UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
BCC and CHNW
Mortgage loans
Stage 1 (3,690,013) 1,684,423 (447,898) (1,518,657) - (282,132) - - (183,273) (4,155,418)
Stage 2 (2,737,938) (1,923,884) (19,500) (7,128,274) - (9,071,658) - - 358,429 (11,451,167)
Stage 3 (including IIS) (6,083,984) 239,461 - (7,821,525) - (7,582,064) 356,819 1,182,026 - (12,127,203)
Vehicle and asset finance

Stage 1 (1,243,132) 1,105,453 (1,479,386) 29,156 - (344,777) - - - (1,587,909)
Stage 2 (3,091,891) (1,209,644) (53,364) 216,363 - (1,046,645) - - 41,131 (4,097,405)
Stage 3 (including IIS) (3,979,673) 104,191 (153,706) (3,516,517) - (3,566,032) 375,655 524,042 - (6,646,008)
Card debtors
Stage 1 (102,575) (509,946) (10,617) 524,557 - 3,994 - - - (98,581)
Stage 2 (690,475) 486,255 (941) (1,005,074) - (519,760) - - (80,125) (1,290,360)
Stage 3 (including IIS) (256,697) 23,691 (379) (187,493) - (164,181) - 337,715 - (83,163)
Other Loans and Advances

Stage 1 (21,387,752) 853,425 (9,213,479) 9,422,002 - 1,061,948 - - 183,273 (20,142,531)
Stage 2 (14,451,622) (1,301,925) (2,010,343) (2,791,785) - (6,104,053) - - (319,435) (20,875,110)
Stage 3 (including IIS) (56,225,782) 448,500 (9,006,404) (34,938,073) - (43,495,977) 782,548 27,305,588 - (71,633,623)
(113,941,534) - (22,396,017) (48,715,320) - (71,111,337) 1,515,022 29,349,371 - (154,188,478)

Stage 1 (9,249,862) 3 (2,176,874) 2,529,518 852,801 1,205,448 - - 483,292 (7,561,122)
Stage 2 (158,526) (3) (39,545) 3,980 146,662 111,094 - - 477 (46,955)
Stage 3 (including IIS) (49,395,192) - - 416,722 (5,579,999) (5,163,277) 6,042,108 35,740,930 - (12,775,431)

19) Loans and advances to customers (continued)

NOTES
(58,803,580) - (2,216,419) 2,950,220 (4,580,536) (3,846,735) 6,042,108 35,740,930 483,769 (20,383,508)
Total (172,745,114) - (24,612,436) (45,765,100) (4,580,536) (74,958,072) 7,557,130 65,090,301 483,769 (174,571,986)
191
192

Reconciliation of expected credit losses for loans and advances to customers measured at amortised cost as at 31 December 2020
NOTES
Total
transfers TVM unwinding Impaired Exchange
GROUP between Net impairments and IIS accounts writ- and other
2020 Opening ECL stages Income statement movements raised/(released) movement ten-off movements Closing ECL
UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
BCC and CHNW

Mortgage loans
19) Loans and advances to customers (continued)
Stage 1 (495,944) (685,201) (170,081) (2,338,787) - (2,508,868) - - - (3,690,013)
Stage 2 (2,994,415) 917,023 (61,253) (599,293) - (660,546) - - - (2,737,938)
Stage 3 (including IIS) (3,037,777) (231,822) (293,888) (3,084,783) - (3,378,671) (543,443) 1,107,729 - (6,083,984)
Vehicle and asset finance

Stage 1 (716,839) (1,844,131) (88,097) 1,405,935 - 1,317,838 - - - (1,243,132)
Stage 2 (4,225,845) 2,363,536 (1,063,294) (166,288) - (1,229,582) - - - (3,091,891)
Stage 3 (including IIS) (1,462,140) (519,405) (1,198,440) (799,688) - (1,998,128) - - - (3,979,673)
Card debtors
Stage 1 (74,519) (191,987) (64,870) 228,801 - 163,931 - - - (102,575)
Stage 2 (467,595) 210,097 (25,308) (407,669) - (432,977) - - - (690,475)
Stage 3 (including IIS) (179,433) (18,110) - (791,592) - (791,592) - 732,438 - (256,697)
Other Loans and Advances
Stage 1 (18,837,755) (2,852,951) (3,994,164) 4,297,118 - 302,954 - - - (21,387,752)
Stage 2 (18,888,230) 4,071,073 (3,073,424) 3,438,959 - 365,535 - - - (14,451,622)
Stage 3 (including IIS) (38,349,299) (1,218,122) (16,126,323) (49,660,821) - (65,787,144) (1,070,481) 50,199,264 - (56,225,782)
(89,729,791) - (26,159,142) (48,478,108) - (74,637,250) (1,613,924) 52,039,431 - (113,941,534)

Stage 1 (4,679,473) 158,667 (6,612,994) 201,182 1,654,639 (4,757,173) - - 28,117 (9,249,862)
Stage 2 (1,574,519) (158,667) (35,479) 1,546,590 64,393 1,575,504 - - (844) (158,526)
Stage 3 (including IIS) (20,648,625) - (30,153,803) 3,258,618 4,281,507 (22,613,678) (6,042,108) - (90,781) (49,395,192)
(26,902,617) - (36,802,276) 5,006,390 6,000,539 (25,795,347) (6,042,108) - (63,508) (58,803,580)
Total (116,632,408) - (62,961,418) (43,471,718) 6,000,539 (100,432,597) (7,656,032) 52,039,431 (63,508) (172,745,114)
NOTES
19) Loans and advances to customers (continued) 193

2021 Modifications on loans and advances measured at a mortised cost
Stage3 Total
Gross
Gross amortised amortised Net
cost before Net modification cost before modification
GROUP modification gain or loss modification gain or loss
2021
Mortgage loans 6,205,490 (1,550,888) 6,205,490 (1,550,888)
Other loans and advances 22,950,456 (5,311,450) 22,950,456 (5,311,450)
Total 29,155,946 (6,862,338) 29,155,946 (6,862,338)
The gross carrying amount for modifications during the reporting year that resulted in no economic gain or loss (i.e. no net
modification gain or loss) is Ushs 351.7 billion (2020: Ushs 662.9 billion). The loans and advances to customers include finance lease
receivables for both BCC and CHNW and CIB as follows:
Vehichle and Asset Finance
2021 2020
Gross investment in finance leases
No later than 1 year 123,852,049 14,524,103
Later than 1 year but no later than 5 years 15,112,493 151,572,373
Later than 5 years 20,487,825 39,106,752
159,452,367 205,203,228
Unearned future finance income on finance leases - (31,312,855)
Net investment in finance leases 159,452,367 173,890,373
The net investment in finance leases may be analysed as follows:

No later than 1 year 123,852,049 14,523,480
Later than 1 year but no later than 5 years 15,112,493 130,173,988
Later than 5 years 20,487,825 29,192,905
159,452,367 173,890,373
20 Deferred tax asset

GROUP COMPANY
2021 2020 2021 2020
Balance as at 1 January 44,542,719 30,877,380 850,042 (321,587)
Charge to income statement 10,579,252 11,440,384 2,923,169 855,481
Transfer - - - 316,148
Financial investments (8,766,164) 2,224,955 - -
As at 31 December 46,355,807 44,542,719 3,773,211 850,042
Deferred income tax assets
Provisions for loans and advances 22,351,020 18,051,076 - -
Financial investments (7,608,271) 1,157,895 - -
Other deductible temporary differences 51,443,660 47,196,971 3,803,954 509,257
66,186,409 66,405,942 3,803,954 509,257
Deferred income tax liabilities
Property, equipment and right of use assets (19,830,602) (21,863,223) (30,743) 340,785
Net deferred income tax assets 46,355,807 44,542,719 3,773,211 850,042
Income statement movement
Property, equipment and right of use assets 1,665,379 (353,961) (371,528) 19,198
Provisions for loans and advances 4,299,944 1,410,456 - -
Other deductible temporary differences 4,613,929 10,385,891 3,294,697 (883,227)
10,579,252 11,442,386 2,923,169 (864,029)

NOTES
194 21) Other Assets
21 Other assets
GROUP COMPANY
2021 2020 2021 2020
Clearances in transit 3,434,777 17,835,459 - -
Prepayments 25,441,431 19,220,990 13,365 61,826
Fees receivable 6,585,115 10,760,603 - -
Mobile wallet balances 159,812,763 22,760,709 - -
Other accounts receivable 71,737,304 26,210,969 492,824 165,678
267,011,390 96,788,730 506,189 227,504
1 Due to the short-term nature of these assets and historical experience, debtors are regarded as having a low probability of default.
Therefore, the ECL has been assessed to be insignificant.
The fees receivable includes commissions earned but not yet received from, Bancassurance fees UShs 4.2 billion (2020: UShs 5.3
billion), custody fees UShs 0.6billion (2020: UShs 0.4billion), structured fees Ushs 1.4 billion (2020:4.5 billion), guarantee fees UShs
0.3 billion (2020: UShs 0.5 billion). Other accounts recievable include spot transactions from counter parties of UShs 55.9 billion
(2020:nil).
22 Goodwill and other intangible assets

Goodwill is reviewed annually for impairment, or more frequently when there are indications that impairment may have occurred.
There was no impairment of goodwill identified in 2021 (2020: nil). Intangible assets relate to Finacle-Core Banking system, New
Business Online (Bol) and Records Management software developed to digitize the customer (KYC) records for the Group
Computer Goodwill Work in Total

GROUP software progress
Cost
At 1 January 2021 145,721,207 1,901,592 93,540 147,716,339
Additions 3,206,781 - 680,460 3,887,241
Transfers 774,000 - (774,000) -
At 31 December 2021 149,701,988 1,901,592 - 151,603,580
Amortisation
At 1 January 2021 54,268,763 - - 54,268,763
Charge for the year 15,041,404 - - 15,041,404
At 31 December 2021 69,310,167 - - 69,310,167
Net book value as at 31 December 2021 80,391,821 1,901,592 - 82,293,413
Computer Goodwill Work in Total

GROUP software progress
Cost
At 1 January 2020 134,732,779 1,901,592 - 136,634,371
Additions 10,988,428 - 93,540 11,081,968
Transfers - - - -
impairment - - - -
At 31 December 2020 145,721,207 1,901,592 93,540 147,716,339
Amortisation
At 1 January 2020 39,566,117 - - 39,566,117
Charge for the year 13,194,769 - - 13,194,769
impairment 1,507,877 1,507,877
At 31 December 2020 54,268,763 - - 54,268,763
Net book value as at 31 December 2020 91,452,444 1,901,592 93,540 93,447,576

23. Property, equipment and right of use assets
Property Equipment Right of use asset Total
Furniture, ATM
Land and fittings and Computer Motor Work in Spacing and
GROUP Buildings equipment equipment vehicles progress Building Branches others Total
UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Cost
At 1 January 2021 3,402,996 83,166,208 103,977,905 9,055,938 - 21,197,919 24,564,827 10,177,224 255,543,017
Additions - 2,034,940 5,640,290 1,058,858 218,655 14,572,159 3,663,766 2,897,110 30,085,778
Transfers - 89,180 - - (89,180) - - - -
Disposals - (2,261,696) (3,423,206) (78,775) - 330,951 (2,047,889) (1,224,210) (8,704,825)
At 31 December 2021 3,402,996 83,028,632 106,194,989 10,036,021 129,475 36,101,029 26,180,704 11,850,124 276,923,970
Depreciation
At 1 January 2021 1,286,672 67,664,448 71,644,177 5,951,731 - 11,739,117 10,073,657 5,765,285 174,125,087
Charge for the year 68,965 6,050,692 12,289,564 1,390,311 - 6,196,976 4,817,017 2,204,116 33,017,641
On disposals - (2,261,601) (3,423,010) (78,775) - - - - (5,763,386)
At 31 December 2021 1,355,637 71,453,539 80,510,731 7,263,267 - 17,936,093 14,890,674 7,969,401 201,379,342
Net book value as at
31 December 2021 2,047,359 11,575,093 25,684,258 2,772,754 129,475 18,164,936 11,290,030 3,880,723 75,544,628
Property Equipment Right of use asset Total

Furniture, ATM
Land and fittings and Computer Motor Work in Spacing and
GROUP Buildings equipment equipment vehicles progress Building Branches others Total
UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Cost
At 1 January 2020 3,402,996 80,767,051 86,053,896 9,599,926 6,676,281 19,410,413 18,782,028 6,682,153 231,374,744
Additions - 2,316,242 5,012,893 307,835 19,654,784 1,928,908 5,936,653 3,525,753 38,683,068
Transfers - 1,105,423 15,694,905 - (26,331,065) - - - (9,530,737)
Disposals - (1,022,508) (2,783,789) (851,823) - (141,402) (153,854) (30,682) (4,984,058)
Written off - - - - - - - - -
At 31 December 2020 3,402,996 83,166,208 103,977,905 9,055,938 - 21,197,919 24,564,827 10,177,224 255,543,017
Depreciation
At 1 January 2020 1,222,231 62,097,059 61,871,451 5,337,124 - 6,118,801 4,994,260 3,295,453 144,936,379
Charge for the year 64,441 6,524,886 12,525,950 1,389,788 - 5,667,450 5,079,397 2,469,832 33,721,744
On disposals - (957,497) (2,753,224) (775,181) - (47,134) - - (4,533,036)
At 31 December 2020 1,286,672 67,664,448 71,644,177 5,951,731 - 11,739,117 10,073,657 5,765,285 174,125,087
Net book value as at 31 December 2020 2,116,324 15,501,760 32,333,728 3,104,207 - 9,458,802 14,491,170 4,411,939 81,417,930

23) Property, equipment and right of use assets
Right of use assets relates to leased branches, ATMs and buildings.

NOTES
195
196
23. Property, equipment and right of use assets (continued)

Right of
Property Equipment use asset Total
NOTES
Furniture,
Land and fittings and Computer Motor Work in
COMAPNY Buildings equipment equipment vehicles progress Building Total
Cost
At 1 January 2021 - 639,481 38,584 - - 421,930 1,099,995
Additions - 106,429 28,934 440,678 109,475 621,051 1,306,567
Transfers - - - - - - -
Disposals - - - - - - -

At 31 December 2021 - 745,910 67,518 440,678 109,475 1,042,981 2,406,562
Depreciation
At 1 January 2021 - 86,281 3,617 - - 148,246 238,144
23) Property, equipment and right of use assets (continued)
Charge for the year - 138,128 13,226 73,446 - 343,859 568,659

On disposals - - - - - - -

At 31 December 2021 - 224,409 16,843 73,446 - 492,105 806,803
Net book value as at
31 December 2021 - 521,501 50,675 367,232 109,475 550,876 1,599,759
Right of
Property
Property Equipment use asset Total
Furniture,
Land and fittings and Computer Motor Work in
COMAPNY
COMAPNY Buildings equipment equipment vehicles progress Building Total
Cost
At 1 January 2020 3,402,996 156,050 - - - - 3,559,046
Additions - 483,431 38,584 - - 421,930 943,945
Transfers - - - - - - -
Disposals (3,402,996) - - - - - (3,402,996)
Written off - - - - - - -
At 31 December 2020 - 639,481 38,584 - - 421,930 1,099,995
Depreciation
At 1 January 2020 1,222,231 - - - - - 1,222,231
Charge for the year 28,680 86,281 3,617 - - 148,246 266,824
On disposals (1,250,911) - - - - - (1,250,911)
At 31 December 2020 - 86,281 3,617 - - 148,246 238,144
Net book value as at 31 December 2020 - 553,200 34,967 - - 273,684 861,851
NOTES
24) Ordinary share capital and share premium 197
24. Ordinary share capital and share premium

(a) Ordinary share capital
Number of Ordinary share

ordinary shares capital
GROUP (thousands) UShs’ 000 Total UShs’ 000
Issued and fully paid
At 31 December 2020 51,188,670 51,188,670 51,188,670
At 31 December 2021 51,188,670 51,188,670 51,188,670
The par value of ordinary shares is UShs 1 per share. The holders of the ordinary shares are entitled to one vote per share at the
annual or special general meeting of the Group. They are also entitled to dividends when declared.
25. Fair value through other comprehensive income

GROUP
2021 2020
Balance as at 1 January (2,513,543) 2,599,829
Net gains/(losses) from changes in fair value 29,220,552 (7,416,522)
Deferred tax on fair value change (8,766,166) 2,224,957
Net change in expected credit losses 97,371 78,193
Net movement for the year 20,551,757 (5,113,372)
Balance as at 31 December 18,038,214 (2,513,543)
26. Statutory credit risk reserve

The statutory credit risk reserve represents amounts by which provisions for impairment of loans and advances, determined in
accordance with the Financial Institutions Act 2004, as amended exceed those determined in accordance with International Financial
Reporting Standards.
2021
2021 2020
Specific provisions (regulatory) 85,984,754 72,229,055
General provisions (regulatory) 57,377,297 55,715,739
143,362,051 127,944,794
Less
Stage 3 86,958,342 109,959,015
Stage 1 and Stage 2 74,788,984 47,159,664
Difference (18,385,275) (29,173,885)
Statutory credit risk reserves - -
The IFRS provision reported on note 26 exclude provisions relating to written off facilities in accordance with Financial Institutions Act
2004, as amended of Ushs.12.8billion (2020: UShs 13.2billion). Where provisions for impairment of loans and advances determined
in accordance with the Financial Institutions Act 2004, as amended exceed amounts determined in accordance with International
Financial Reporting Standards, the excess is taken to the statutory credit risk reserve as an appropriation of retained earnings,
otherwise, no further accounting entries are made. 2021: nil (2020: nil).

NOTES
198 27) Derivatives
27 Derivatives
The Group uses currency forward derivative instruments and interest rate derivatives for trading and economic hedge purposes.
Currency forwards represent commitments to purchase foreign and domestic currency, including undelivered spot transactions. The
derivative instruments become favourable (assets) or unfavourable (liabilities) as a result of fluctuations in market foreign exchange
rates on hand relative to their terms. The aggregate contractual or notional amount of derivative financial instruments, the extent to
which instruments are favourable or unfavourable, and thus the aggregate fair values of derivative financial assets and liabilities, can
fluctuate significantly from time to time. The notional amount is the sum of the absolute value of all bought and sold contracts for
both derivative assets and liabilities.
The amount cannot be used to assess the market risk associated with the positions held and should be used only as a means of
assessing the Group’s participation in derivative contracts.
GROUP Fair value of assets Fair value of liabilities Notional amount

2021 2020 2021 2020 2021 2020
UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000 UShs’ 000
Interest rate swaps 70,852,475 132,686,758 (70,271,575) (135,971,236) 3,482,014,020 3,273,557,564
Currency options 18,831,829 10,590,691 (19,016,597) (10,590,685) 779,637,087 1,270,631,848
Currency forwards 6,029,381 7,066,019 (13,782,283) (16,032,108) 468,845,950 919,935,015
Currency swap 33,450,356 10,573,658 (101,991,049) (67,139,382) 2,059,943,620 831,736,364
129,164,041 160,917,126 (205,061,504) (229,733,411) 6,790,440,677 6,295,860,791
The maturity analysis of the fair values of derivative instruments held is set out below.
Less than 1 year 1-5 years Over 5 years Total

Assets
Interest rate swaps - 913,835 69,938,640 70,852,475
Currency options 4,304,447 14,527,382 - 18,831,829
Currency forwards 1,956,048 4,073,333 - 6,029,381
Currency swap 22,790,701 10,659,655 - 33,450,356
Fair value of assets 29,051,196 30,174,205 69,938,640 129,164,041
Liabilities
Interest rate swaps - (332,935) (69,938,640) (70,271,575)
Currency options (4,334,014) (14,682,583) - (19,016,597)
Currency forwards (2,308,867) (11,473,416) - (13,782,283)
Currency swap (5,230,819) (96,760,230) - (101,991,049)
Fair value of liabilities (11,873,700) (123,249,164) (69,938,640) (205,061,504)
Net fair value 17,177,496 (93,074,959) - (75,897,463)
Less than 1 year 1-5 years Over 5 years Total

Assets
Interest rate swaps 2,028 650,224 132,034,506 132,686,758
Currency options 1,266,679 9,324,012 - 10,590,691
Currency forwards 3,661,533 3,404,486 - 7,066,019
Currency swap 4,645,237 5,928,421 - 10,573,658
Fair value of assets 9,575,477 19,307,143 132,034,506 160,917,126
Liabilities
Interest rate swaps (12,773) (3,923,957) (132,034,506) (135,971,236)
Currency options (1,266,680) (9,324,005) - (10,590,685)
Currency forwards (4,653,208) (11,378,900) - (16,032,108)
Currency swap (7,136,991) (60,002,391) - (67,139,382)
Fair value of liabilities (13,069,652) (84,629,253) (132,034,506) (229,733,411)
Net fair value (3,494,175) (65,322,110) - (68,816,285)
28. Customer deposits

GROUP
2021 2020
Current and demand deposits 4,970,751,135 4,770,787,497
Savings accounts 531,547,555 471,362,052
Fixed and call deposit accounts 238,744,476 251,329,985
5,741,043,166 5,493,479,534
The weighted average effective interest rate on customer deposits was 0.63% (2020: 0.63%)

NOTES
29) Deposits and balances due to banks 199
29. Deposits and balances due to banks

GROUP
2021 2020
Balances due to other banks - local currency 57,679,704 254,990,766
Balances due to other banks - foreign currency 97,395,410 230,437,392
Repurchase and other collateralised agreements - 300,049,285
155,075,114 785,477,443
30. Borrowed funds

GROUP
2021 2020
Bank of Uganda: Agricultural Credit Facility 54,910,821 43,346,567
Other borrowed funds 110,285,664 -
165,196,485 43,346,567
2021 2020
Movement Analysis
As at 1 January 43,346,567 11,081,783
New disbursements (BOU) 13,775,000 34,556,454
New disbursements (others) 110,285,664 -
Payments to BOU (2,210,746) (2,291,670)
Net movement 121,849,918 32,264,784
As at 31 December 165,196,485 43,346,567
The Government of Uganda, through Bank of Uganda, set up an Agricultural Credit Facility scheme for the purpose of supporting
agricultural expansion and modernization in partnership with commercial banks. All eligible Stanbic Bank Uganda Limited customers
receive 50% financing from the Government of Uganda through the Group of Uganda administered credit facility while the remaining
50% is provided by the Group. The outstanding balance as at 31 December 2021 was UShs 54,911 million (2020: UShs 43,347million).
The Group does not pay any interest to the Government of Uganda. Refunds to the government are made half yearly and as at 31
December 2021; the last payable instalment is due on 17 March 2025. The Group complied with all the terms and conditions of the
agreements during the year.
As part of the Group’s foreign currency funding plan, the Group borrowed Euro 25 million from Standard Chartered London to support
its foreign currency assets. The loan is priced against Euribor with a tenor of 1 year.”
As part of the efforts to support the recovery of the economy following the effects of COVID19, the Group partnered with several
entities that include aBi 2020 Limited to support the lower echelons of the economy which has SACCOs, VSLAs, Cooperatives and
Microfinance institutions. In 2021, SBU and aBi signed an agreement for a concessional funding of Ushs 20 billion to support on lending
to the listed entities operating in the agricultural sector. As at 31 December 2021, the Group had received 1st tranche of Ushs 10 billion.
31. Other liabilities

GROUP COMPANY
2021 2020 2021 2020
Uganda Revenue Authority - tax revenue collections 9,943,574 16,520,806 196,496 125,842
Bills payable 173,689,786 115,596,385 529,917 549,599
Unclaimed balances 45,658,075 38,149,026 - -
Sundry creditors 63,396,212 45,814,253 51,298 82,099
Unearned fees and commission income 3,164,734 3,923,433 - -
Dividends payable 15,917,796 35,753,618 15,917,796 35,704,364
Expected credit loss for off-balance sheet exposures 4,733,611 4,924,978 - -
Lease liabilities 33,955,759 27,344,438 600,473 326,053
Accepted letters of credit 187,926,288 31,014,342 - -
Other liabilities 46,066,377 39,750,500 2,332,804 589,053
584,452,213 358,791,779 19,628,784 37,377,010
Included in other liabilities for 2021 is staff cost provisions of UShs 34.0billion (2020: UShs 34.1billion). Bills payable include; country
driven change the Group projects of UShs 45.8billion (2020: UShs 35.0billion), UShs 8.5billion digital financial inclusion contribution
(2020: Ushs 10.8billion), Legal provisions UShS 15.4billion (2020: UShs 12.4 billion).
aBi 2020 limited also extended a grant of Ushs2 billon towards digitisation of SACCOs, VSLAs, Cooperatives and Microfinance
institutions to drive financial inclusion and efficiencies to run their businesses. As at 31 December 2021, the Group had received 1st
tranche of Ushs 1billion reported under other liabilities.

200
31.1 Reconciliation of expected credit losses for off-balance sheet exposure

NOTES
Net
impairments Exchange
GROUP Opening Total transfers raised/ and other
31) Other liabilities
2021 ECL between stages Income statement movements (released) movements Closing ECL
Subsequent Change in
ECL on new changes in ECL due to
exposures raised ECL derecognition
Letters of credit and bank
acceptances
Stage 1 (144,202) (485) (2,304) (36,334) 20,328 (18,795) 7,272 (155,725)

Stage 2 (485) 485 (25,421) - - (24,936) 7 (25,414)
Stage 3 (352,374) - 232,767 - - 232,767 9,622 (109,985)
Guarantees
Stage 1 (2,625,970) (70,421) (499,132) 298,000 1,664 (269,889) 12,092 (2,883,767)
Stage 2 (480,603) 70,421 196 - 410,182 480,799 (786) (590)
Stage 3 (1,321,344) - (280,066) (570) 6,172 (274,464) 37,678 (1,558,130)

Total (4,924,978) - (573,960) 261,096 438,346 125,482 65,885 (4,733,611)
Net impair- Exchange and

Opening Total transfers
GROUP Income statement movements ments raised/ other move- Closing ECL
ECL between stages
2020 (released) ments
Subse-
ECL on new expo- quent Change in ECL due

sures raised changes to derecognition
in ECL
Letters of credit and bank

acceptances
Stage 1 (116,576) (8,905) (1,952) (17,937) 1,168 (18,721) - (144,202)
Stage 2 (67,024) 68,535 (486) - 119 (367) (1,629) (485)
Stage 3 - (59,630) - (296,024) - (296,024) 3,280 (352,374)
Guarantees
Stage 1 (1,234,271) (456,453) (13,348) (924,828) 3,065 (935,111) (135) (2,625,970)
Stage 2 (958,168) 672,349 - (357,182) 155,847 (201,335) 6,551 (480,603)
Stage 3 (7,229) (215,896) - (1,115,821) 5,815 (1,110,006) 11,787 (1,321,344)
Total (2,383,268) - (15,786) (2,711,792) 166,014 (2,561,564) 19,854 (4,924,978)
NOTES
31) Other liabilities 201
31.2) Reconciliation of lease liabilities
31.2 Reconciliation of lease liabilities

Terminations/
Balance at Additions/ modifications and Interest Balance at
01 Jan 2021 modification or Cancellations Expense Payments 31 Dec 2021
GROUP Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000

Buildings (6,644,431) (14,572,158) (330,951) (1,080,440) 6,477,632 (16,150,348)
Branches (14,995,427) (3,663,766) 2,047,892 (945,752) 4,087,034 (13,470,019)
ATM Spaces and others (5,704,580) (2,897,110) 1,224,209 (293,135) 3,335,224 (4,335,392)
Total (27,344,438) (21,133,034) 2,941,150 (2,319,327) 13,899,890 (33,955,759)
Terminations/
Balance at 01 Additions/ Interest Balance at 31
modifications and Payments
Jan 2020 modification Expense Dec 2020
or Cancellations
Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000 Ushs’000
Buildings (10,968,144) (1,928,908) 128,134 (1,094,377) 7,218,864 (6,644,431)
Branches (13,097,264) (5,936,654) 164,055 (1,467,036) 5,341,472 (14,995,427)
ATM Spaces and others (4,333,983) (3,525,751) 31,975 (440,448) 2,563,627 (5,704,580)
Total (28,399,391) (11,391,313) 324,164 (3,001,861) 15,123,963 (27,344,438)
The Group leases various offices, branch spaces and ATM spaces. Rental contracts are typically made for fixed average periods of
between three to ten years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide
range of different terms and conditions. In determining the lease term, management considers all facts and circumstances that
create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after
termination options) are considered in the lease term when there is reasonable certainty that those options will be exercised. The
assessment of reasonable certainty is reviewed if a significant event or a significant change in circumstances occurs which affects
this assessment and that is within the control of the lessee.
31.3 Reconstruction of staff cost provision

GROUP COMPANY
2021 2020 2021 2020

Opening Balance 34,082,236 33,392,259 329,371 -
Less provision utilisation (25,220,489) (35,164,844) (315,605) (70,396)
Add: New provision made in the year 28,591,646 35,854,821 1,997,344 399,766
Closing Balance 37,453,393 34,082,236 2,011,110 329,371
31.4 Reconciliation of Litigation provisions

GROUP
Litigation 2021 2020

Opening balance 1 January 12,436,332 10,244,081
Add: New provisions made in the year 3,411,006 5,776,074
Less: Cases settled (254,293) (1,891,842)
Less: Adjustments in provisions (143,622) (1,691,981)
Closing Balance 31 December 15,449,423 12,436,332
32 Subordinated debt
Carrying
GROUP value Notional value
As at 31 December 2021 Date of issue UShs’ 000 UShs’ 000
Subordinated loan facility - Standard Bank South Africa 1 April 2021 71,753,914 71,753,914
71,753,914 71,753,914
As at 31 December 2020 Dateofissue UShs’000 UShs’000
Subordinated loan facility - Standard Bank South Africa 31 March 2016 73,022,525 73,022,525
73,022,525 73,022,525

NOTES
202 31) Other liabilities
31.2) Reconciliation of lease liabilities (continued)
Movement analysis
2021 2020
As at 1 January 73,022,525 73,022,525
Interest expense 3,807,113 5,202,256
Interest paid (4,821,263) (4,947,795)
Exchange rate movement (254,461) (254,461)
Net movement (1,268,611) -
As at 31 December 71,753,914 73,022,525
In 2021, the Group paid off the outstanding surbodinated debt and simultaneously signed an unsecured 10 year term subordinated
loan facility agreement with Standard Bank of South Africa (SBSA) as the lender which commenced on 1 April 2021 amounting to
USD 20 million at a rate of Libor plus 4.77%. The subordinated loan was sourced to supplement Bank capital and diversify funding
sources.
33. Dividends
Bank of Uganda directed all Supervised Financial Institutions (SFIs), including Stanbic Bank Uganda, the bank subsidiary of SUHL to
defer all discretionary payments including dividends for purposes of capital preservation. The proposed dividends for 2020 remain
under review by Bank of Uganda which will inform the 2021 dividend recommendation.
34. Off-balance sheet financial instruments, contingent liabilities and

commitments
In common with other banks, the Group conducts business involving acceptances, letters of credit, guarantees, performance bonds
and indemnities. The majority of these facilities are offset by corresponding obligations of third parties. In addition, there are other off-
balance sheet financial instruments including forward contracts for the purchase and sale of foreign currencies, the nominal amounts
for which are not reflected in the statement of financial position.
2021 2020
Contingent liabilities
Acceptances and letters of credit 223,703,640 237,768,709
Guarantees and performance bonds 1,696,232,281 1,623,737,529
1,919,935,921 1,861,506,238
Commitments
Commitments to extend credit 1,237,793,640 1,433,445,628
Currency forwards 328,917,790 169,968,833
1,566,711,430 1,603,414,461
3,486,647,351 3,464,920,699
Nature of contingent liabilities Other matters

An acceptance is an undertaking by a Bank to pay a bill of In August 2017, the Uganda Revenue Authority (URA) wrote
exchange drawn on a customer.The Group expects most to the Uganda Bankers Association (UBA) indicating that the
acceptances to be presented, and reimbursement by the applicable stamp duty rate on performance bonds, indemnity
customer is normally immediate. Letters of credit commit the bonds and guarantees is 1% of bond/guaranteed total value and
Group to make payments to third parties, on production of not the fixed rate of UShs 10,000 that was being applied.
documents, which are subsequently reimbursed by customers.
Guarantees are generally written by a Bank to support This pronouncement created a potential liability on Stanbic
performance by a customer to third parties. The Group will Bank Uganda Limited which the Group through the UBA legal
only be required to meet these obligations in the event of the committee, has challenged this decision at the High Court.
customer’s default.Commitments to lend are agreements to Furthermore, URA on 25 March 2019, prior to the High Court
lend to a customer in future subject to certain conditions. Such hearing, sought to collect the stamp duty in connection with the
commitments are normally made for a fixed period. The Group above treatment. Through an interim order of injunction from
may withdraw from its contractual obligation for the undrawn High Court, Stanbic bank Uganda restrained URA’s enforcement
portion of agreed overdraft limits by giving reasonable notice to of the tax liability and objected to the demand letter. URA in
the customer. response maintained its objection decision, to which Stanbic
Bank Uganda appealed to the Tax Appeals Tribunal (TAT) on 24
Pending litigation June 2019 and paid the mandatory 30% tax in dispute.
The Group is a litigant in several other cases which arise in the During the period 2020 URA and Stanbic Bank Uganda Limited
normal course of business. The directors and management compiled a joint trial bundle, witness statements and went
believe the Group has strong grounds for success in a majority of through a reconciliation of the instruments subject to the
the cases and are confident that they should get a ruling in their assessment. In the second half of 2021, after the impact of
favour and none of the cases individually or in aggregate would Covid-19 lockdowns on court scheduling’s, cross examinations
have a significant impact on the Group’s operations. of the Stanbic Bank witnesses were held.
The directors have carried out an assessment of all the case On 21 March 2022, TAT ruled that Performance Bonds, Advance
outstanding as at 31 December 2021 and where considered Payment Bonds, and Guarantees are “Indemnity Bonds” but Bid
necessary based on the merits of each case, a provision has been Bonds are not “Indemnity Bonds”. The Group remains optimistic
raised. In aggregate the total provisions raised amount to UShs that the ruling will be made in its favour.
15.5billion (2020: UShs 12.4billion) which are reported under
other liabilities (Note 31).

NOTES
35) Analysis of cash and cash equivalents as shown in the statement of cash flow 203
35. Analysis of cash and cash equivalents as shown in the statement of cash flow
GROUP COMPANY
2021 2020 2021 2020
Cash and balances with Bank of Uganda 984,530,697 1,155,333,607 - 1,000
Cash reserve requirement (517,340,000) (456,990,000) - -
Government securities maturing within 90 days 62,099,989 713,304,636 - -
Placements with other banks 1,106,253,364 684,044,697 - -
Deposits from group companies 401,399,237 354,851,853 35,757,732 154,995,286
2,036,943,287 2,450,544,793 35,757,732 154,996,286
For the purposes of the statement of cash flow, cash and cash equivalents comprise balances maturing in 90 days or less from the date
of acquisition including: cash and balances with central banks, treasury bills and other eligible bills, and amounts due from other banks.
Cash and cash equivalents exclude the cash reserve requirement held with the Group of Uganda. (See Note 16).
36. Related party transactions

Stanbic Uganda Holdings Limited (the Group) is 80% owned by Stanbic Africa Holdings Limited incorporated in United Kingdom. The
ultimate parent and controlling party of the Group is Standard Bank Group Ltd, incorporated in South Africa. There are other companies
which are related to Stanbic Uganda Holdings Limited through common shareholdings or common directorships. These include
Standard Bank Isle of Man Limited, Standard Bank of South Africa, CfC Stanbic Bank Kenya Limited, Stanbic Bank Tanzania Limited,
Stanbic Bank Botswana, Stanbic International Uganda Limited, Stanbic International Insurance Limited, Liberty Life Assurance Uganda
Limited and Liberty General Insurance Uganda Limited. In the normal course of business, current accounts are operated and placings
of foreign currencies are made with the parent company and other group companies at interest rates in line with the market.
Key management personnel has been defined as Stanbic Uganda Holdings Limited’s board of directors and prescribed officers in the
Group effective for 2021 and 2020. Non-executive directors are included in the definition of key management personnel as required by
IFRS. The definition of key management includes the close family members of key management personnel and any entity over which
key management exercises control or joint control. Close family members are those family members who may be expected to influence,
or be influenced by, that person in their dealings with Stanbic Uganda Holdings Limited.

204
Related party transactions further breakdown

GROUP COMPANY
NOTES
2021 2020 2021 2020

Parent Other Total Parent Other Total
Amounts due from group companies
Placements and borrowings 40,332,249 359,776,039 400,108,288 13,026,311 340,142,944 353,169,255 154,995,286 34,808,894
Other assets 1,105,705 185,246 1,290,951 1,525,619 156,982 1,682,601 - 948,838
41,437,954 359,961,285 401,399,239 14,551,930 340,299,926 354,851,856 154,995,286 35,757,732
Amounts due to group companies
36) Related party transactions (continued)

Deposits and current accounts 3,616,942 214,738,725 218,355,667 4,194,388 225,407,584 229,601,972 - -
Lease liabilities - - - - 79,200,000 79,200,000 - -
Other liabilities 42,055,319 (18,284) 42,037,035 42,754,782 50,725 42,805,507 - -
45,672,261 214,720,441 260,392,702 46,949,170 304,658,309 351,607,479 - -
Subordinated debt due to group companies (see note 32) 71,753,914 - 71,753,914 73,022,525 - 73,022,525

Derivative asset due from group companies (see note 27) 42,669,747 27 42,669,774 20,767,349 - 20,767,349
Derivative liabilities due to group companies (see note 27) 118,392,616 1,167 118,393,783 181,392,214 47,864 181,440,078
Income and expenses
Interest income earned - 310,924 310,924 - 723,221 723,221
Interest expense paid 3,807,113 3,598,403 7,405,516 5,202,256 2,614,580 7,816,836
Trading revenue (47,431,830) (46,724) (47,478,554) 82,644,519 47,881 82,692,400
Commission - 3,793,638 3,793,638 - 4,089,554 4,089,554
Operating expenses incurred 53,025,617 (77,198) 52,948,419 44,743,384 37,508 44,780,892
• Stanbic Bank Uganda Limited has a joint venture agreement with Liberty Life Assurance Uganda Limited, Stanlib Uganda Limited and Liberty General Insurance Uganda Limited for which it receives a
share of the profits derived from the bancassurance business. The Group also acts as an agent and receives commission.
• Included in other assets is commission earned but not yet received from the bancassurance business and joint venture profit share of UShs 3.8billion (2020: Ushs 4.1billion)
NOTES
36) Related party transactions (continued) 205
Nature of the transactions with related parties

In the normal course of business, the Group performs the following transactions with its related parties:
• Current accounts operation and placement of foreign currencies
• IT services including procurement and maintenance of various banking systems like; Business Online (BOL)
• Payment of franchise and management fees to the parent company
• Money market borrowing and lending
• Economic headging of transactions like interest rate swaps with various clients
• Loans or Borrowings
Loans to key management and related parties for the year ended 31 December 2021
GROUP 2021 Status

Aggregate amount Performing
outstanding or Non
UShs ’000 Interest Rate performing Facility
Directors 1.389,408 7.5%-38% Performing Loans and advances
Non-Executive Directors 2,564,928 7.5%-38% Performing Loans and advances
Executive Officers 1,334,035 7.5%-38% Performing Loans and advances
Credit extensions to related companies
Uganda Breweries Limited 38,000,000 7.30% Performing Loans and advances
Credit extensions to individual affiliates 55,338 18%-19.5% Performing Loans and advances
Total 43,343,709
No specific impairment has been recognised in respect of loans advanced to related parties (2020: nil).
Deposits with key management and related parties for the year ended 31 December 2021
2021
GROUP Aggregate amount
outstanding UShs
Names of related Party ’000 Facility
Directors 504,983 Deposit
Executive Officers 898,869 Deposit
Credit extentions to related companies
Uganda Breweries Limited 6,181,229 Deposit
Total 7,585,151
Loans to key management and related parties for the year ended 31 December 2020
GROUP 2020 Status
Aggregate amount Performing
outstanding or Non
UShs ’000 Interest Rate performing Facility
Directors 1,363,376 7.5%-38% Performing Loans and advances
Non-Executive Directors 2,693,325 7.5%-38% Performing Loans and advances
Executive Officers 1,806,259 7.5%-38% Performing Loans and advances
Credit extensions to related companies
Uganda Breweries Limited 1,825,251 7.30% Performing Loans and advances
Credit extensions to individual affiliates 523,404 18%-19.5% Performing Loans and advances
Total 8,211,615
No specific impairment has been recognised in respect of loans advanced to related parties (2020: nil).
Deposits with key management and related parties for the year ended 31 December 2020

NOTES
206 36) Related party transactions (continued)
2020
GROUP Aggregate amount
outstanding
Names of related Party UShs ’000 Facility
Directors 4,984,037 Deposit
Executive Officers 6,432,943 Deposit
Credit extentions to related companies
Uganda Breweries Limited 6,422,080 Deposit
Total 17,839,060
Loans granted to non-executive directors and their affiliates are granted at commercial rates while those granted to executive
directors and executives are: Mortgage – 50% of prime rate, staff miscellaneous and car loans – 75% of prime rate, study loans – 0%.
Interest income 2021 2020

Ushs’000 Ushs’000
Interest in come from loans with key management 347,470 234,304
347,470 234,304
GROUP 2021 2020

Ushs’000 Ushs’000
Key management compensation
Salaries and other short term employment benefits 11,947,596 11,165,537
Post-employment benefits 1,657,777 1,666,953
13,605,373 12,832,490
Directors remuneration
Directors’ fees 534,667 927,174
Other emoluments included in key management compensation 3,612,012 5,290,088
4,146,679 6,217,262
37. Equity linked transactions

Standard Bank Group (SBG) has two equity-settled schemes, namely the Group Share Incentive Scheme and the Equity Growth
Scheme. The Group Share Incentive Scheme confers rights to employees to acquire ordinary shares at the value of the SBG share price
at the date the option is granted. The Equity Growth Scheme was implemented in 2005 and represents appreciation rights allocated to
employees. The eventual value of the right is effectively settled by the issue of shares equivalent in value to the value of the rights. The
two schemes have five different sub-types of vesting categories as illustrated by the table below:
The two schemes have five different sub-types of vesting categories as illustrated by the table below:
Year % vesting Expiry
Type A 3, 4, 5 50, 75, 100 10 Years
Type B 5, 6, 7 50, 75, 100 10 Years
Type C 2, 3, 4 50, 75, 100 10 Years
Type D 2, 3, 4 33, 67, 100 10 Years
Type E 3, 4, 5 33, 67, 100 10 Years
A reconciliation of the movement of share options and appreciation rights is detailed below:
Option price Number of

GROUP AND COMPANY
range (ZAR) options
Options outstanding at beginning of the period 3 500 4 375
Transfers - -
Lapsed - -
Exercised (3 500) ( 875)
Options outstanding at end of year - 3 500
Share options were exercised regularly throughout the year. The weighted average share price for the year was ZAR131.30
(December 2020: ZAR116.16).
The following options granted to employees had not been exercised at 31 December 2021:

NOTES
37) Equity linked transactions (continued) 207
Number of ordinary Option price

shares range Weighted average price
(ZAR) (ZAR) Option expiry period
0 Year to 31 December 2021
The following options granted to employees had not been exercised at 31 December 2020:

Number of ordinary Option price Weighted average price
shares (ZAR) range (ZAR) Option expiry period
3 500 98.8 Year to 31 December 2020
3 500
Appreciation right price
range (ZAR) Number of rights
Equity Growth Scheme 31-Dec-21 31-Dec-21 31-Dec-20
Rights outstanding at beginning of the period 44 501 49 501
Transfers ( 44 501) -
Granted - -
Exercised - (5 000)
Rights outstanding at end of year - 44 501
The following rights granted to employees had not been exercised at 31 December 2021:
Weighted
average
Price range price
Number of rights (ZAR) (ZAR) Expiry period
0 0 0
The following rights granted to employees had not been exercised at 31 December 2020:
Weighted
Price range average price
Number of rights (ZAR) (ZAR) Expiry period
6 250 126.87 126.87 Year to 31 December 2021
31 339 156.96 156.96 Year to 31 December 2025
6 912 122.24 122.24 Year to 31 December 2026
44 501
Shares Appreciation Right Scheme (SARP)

The SARP is a long-term incentive which was introduced during 2017, and represents appreciation rights allocated to employees.
The converted value of the rights is effectively settled by issue of shares equivalent to the value of the rights. Vesting and expiry of
the rights are indicated below:
Year % vesting Expiry
SARP 2,3,4 33,67,100 4,5,6
Awards are issued to individuals in employment of a group entity domiciled in South Africa are classified as equity-settled and
awards made to individuals of a group entity outside of South Africa are classified as cash-settled.
A reconciliation of the movement of share options is
detailed below:
Average
price range Number of
(rand) rights
2021 2020
SARP
Units outstanding at start of year 213,417 122077
Transfers (171,627) -
Granted 152.64 - 91,340
Rights outstanding at the end of
year 41,790 213,417
During the year no Standard Bank Group shares (SBG) were issued to settle the appreciated rights value.
At the end of the year the Group would need to issue SBG shares to settle the outstanding appreciated rights value.

NOTES
208 37) Equity linked transactions (continued)
The following rights granted to employees, including executive directors, had not been exercised as at 31 December 2021.
Weighted
Option price average
range price
Number of rights (rand) (rand) Option expiry period
60,350 155.95 - 220.97 186.13 Year to 31 December 2023
65,606 152.64 - 220.97 173.66 Year to 31 December 2024
57,013 152.64 - 182.43 166.52 Year to 31 December 2025
30,448 152.64 152.64 Year to 31 December 2026
213,417
The following rights granted to employees, including executive directors, had not been exercised as at 31 December.
Weighted
Option price average
range price
Number of rights (rand) (rand) Option expiry period
5,531 155.95 155.95 Year to 31December 2021
14,128 155.95-220.97 195.52 Year to 31December 2022
40,691 155.95-220.97 186.94 Year to 31December 2023
35,160 182.43-220.97 191.85 Year to 31December 2024
26,567 182.43 182.43 Year to 31December 2025
122,077
The share appreciation rights granted are valued using a Black-Scholes option pricing model. Each grant is valued separately. There
were no weighted fair value of the options granted per vesting and the assumptions utilised for 2021.
2020
Tranche 1 Tranche 2 Tranche 3
Number of appreciation rights
granted 30,446 30,446 30,448
Weighted average fair value at grant date (rands) 31.30 34.21 37.11
The principle inputs are as follows:
Weighted average share price (rand) 152.64 152.64 152.64
Weighted average exercise price (rand) 152.64 152.64 152.64
Expected life (years) 3.18 4.18 5.18
Expected volatility (%) 28.55% 28.55% 28.55%
Risk-free interest rate (%) 6.18% 6.39% 6.61%
Dividend yield (%) 4.73% 4.68% 4.55%
Cash settled deferred bonus scheme (CSDBS)

All employees granted an annual performance award over a threshold and who is in employment in a group entity domicile outside of
South Africa have part of their award deferred. In addition, the group makes special awards to qualifying employees in employment of
a group entity. The awards are classified as cash-settled awards.
The award units are denominated in employee’s host countries’ local current, the value of which moves parallel to the changes in the
price of the SBG shares listed on the JSE and accrue notional dividends over the vesting period which are payable on vesting.
Awards vest in three equal tranches at 18 months, 30 months and 42 months from the date of award. Final pay-out is determined with
reference to SBG share price on vesting date.
2021
Expected Transferred
Weighted average life at between
fair value at grant grant date Opening group
Currency date (years) balance Granted Exercised companies Forfeited Outstanding
UShs USh152.64 2.51 - 8,479,776 (6,417,621) (12,369,722) (649,145) (10,956,712)
2020
Expected Transferred
Weighted average life at between
fair value at grant grant date Opening group
Currency date (years) balance Granted Exercised companies Forfeited Outstanding
UShs USh152.64 2.51 25,795,985 7,273,220 (6,375,947) - - 26,693,258

NOTES
37) Equity linked transactions (continued) 209
37. Equity linked transactions (continued)

Deferred bonus scheme 2012 (DBS 2012)
In 2012, changes were made to the existing DBS to provide for a single global incentive deferral scheme across the regions.
The purpose of the Deferred Bonus Scheme 2012 is to encourage a longer-term outlook in business decision-making and
closer alignment of performance with long-term value creation.
All employees granted an annual performance award over a threshold have part of their award deferred. The award is indexed
to the group’s share price and accrues notional dividends during the vesting period, which are payable on vesting. The
awards vest in three equal amounts at 18 months, 30 months and 42 months from the date of award. The final pay-out is
determined with reference to the group’s share price on vesting date.
The provision in respect of liabilities under the scheme amounts to UShs 2.3billion (2020: UShs 2.7billion ) and the amount
charged for the period was UShs 1.3billion (2020:UShs 2.3billion ).
Units
Dec-21 Dec-20
Reconciliation
Units outstanding at beginning of the year 8,869 14,881
Granted 3,793 656
Exercised (3,555) (3,080)
Lapsed - -
Transfers (1,739) 5,631
Units outstanding at end of the year 7,368 8,869
Weighted average fair value at grant date (R) - 152.64
Expected life (years) - 2.51
Performance reward plan (PRP)

A new long-term performance driven share plan commenced in March 2014 which rewards value delivered against specific targets.
The PRP incentivises a group of senior executives to meet the strategic long-term objectives that deliver value to shareholders, to
align the interests of those executives with those of shareholders and to act as an attraction and retention mechanism in a highly
competitive marketplace for skills. The PRP operates alongside the existing conditional, equity-settled long-term plans, namely the
EGS, the group share incentive scheme (GSIS) and DBS post 2011.
The PRP is settled in shares to the employee on the applicable vesting dates together with notional dividends that are settled in cash.
The shares that vest (if any) and that are delivered to the employee are conditional on the pre-specified performance metrics.
Units
Dec-21 Dec-20
Reconciliation
Units outstanding at beginning of the year 82,300 60,600

Granted 37,100 34,500
Exercised - (12,800)
Transfers (46,936) -
Lapsed (9,644) -
Units outstanding at end of the year 62820 82300
Weighted average fair value at grant date (R) - 152.64
Expected life at grant date (years) - 3.00
38. Investment in subsidiary

Beneficial Country of
COMPANY ownership incorparation 2021 2020
Stanbic Bank Uganda Limited 100% Uganda 881,068,551 881,068,551
FLYHUB Uganda Limited 100% Uganda 10,000,000 10,000,000
Stanbic Properties Limited 100% Uganda 2,335,938 2,335,938
Stanbic Business Incubator Limited 100% Uganda 100,000 100,000
SBG Securities Uganda Limited 100% Uganda 3,000,000 -
896,504,489 893,504,489

NOTES
210 37) Equity linked transactions (continued)
FLYHUB Uganda Limited Stanbic Properties Limited

FLYHUB Uganda Limited (“FLYHUB”) was incorporated on 8th Stanbic Properties Limited (“SPL”) was incorporated on 5th
October 2020. FLYHUB is a Fintech company that provides February 2020 and started business operations on 1st May 2020.
financial technology and innovative services as part of the SPL holds and manages the real estate portfolio of the Group.
group’s digital transformation journey. The principal place of Other services offered to clients include valuation services,
business for FLYHUB is Plot 5, Lower Kololo Terrace, Kampala, site acquisition, property consultancy and execution of real
Uganda. PO Box 7131 estate projects. The principal place of business for SPL is Plot 17
Hannington Road, Tall Tower – Crested Towers, Mezzanine Floor,
Stanbic Business Incubator Limited Kampala, Uganda. PO Box 7395.
Stanbic Business Incubator Limited (“SBIL”) is a company
limited by guarantee, incorporated on 18th May 2020 and SBG Securities Uganda Limited
commenced its activities as a separate entity on 1st June 2020. SBG Securities Uganda Limited was incorporated and
SBIL was set up as part of the reorganisation process to continue registered by the registrar of Companies in Uganda as a private
training SME’s in Uganda by equipping them with best business limited liability company on 6 November 2020. SBG Securities
practices in management, record keeping, marketing, finance Uganda Limited was established to acquire the business of
to address the challenges of short lifespan of SME’s in the SBG Securities Limited (Uganda Branch) and carry out other
economy. Stanbic Bank Uganda Limited started this initiative securities business in Uganda.
in 2018 before the reorganisation with the Business incubator
operating as a unit under Business Banking. The principal place
of business for SBIL is Plot 5, Lower Kololo Terrace, Kampala,
39. Retained earnings
Uganda. PO Box 7395. This comprises prior period retained profits, plus profit for the
year (less)/plus appropriation of statutory risk reserve less
Stanbic Bank Uganda Limited proposed dividends.
Stanbic Bank Uganda Limited (SBU) is a licensed financial
institution under the Financial Institutions Act and is a member 40. Subsequent events
of the Uganda Bankers Association. The Group is engaged in the There were no significant subsquent events to report.
business of commercial banking and the provision of related
banking services. The principal place of business for SBU is Plot 81
17 Hannington Road, Short Tower - Crested Towers, Kampala,
Uganda. PO Box 7131.

Even the
started small.
With us you’re

Stanbic Bank Uganda Limited. A Financial Institution regulated by the Bank of Uganda and CustomerAnnual report and financial statements year ended 31 December 2021
@stanbicug

SUPPLEMENTARY
FINANCIALINFORMATION
STATEMENTS
SUPPLEMENTARY
INFORMATION
214 Key Shareholder Information
215 SUHL Notice of Annual General Meeting
216 Proxy Form
218 Our Products and Services
220 Our Branches Countrywide
221 Customer Service Points
222 Company Information and Contact Details

Shareholder Analysis
Top ten Shareholders as at 31 December 2021
Name Number of Shares % Shareholding
1 STANBIC AFRICA HOLDINGS LIMITED 40 950 935 760 80.0%
2 NATIONAL SOCIAL SECURITY FUNDS 2 056 441 546 4.0%
DUET AFRICA OPPORTUNITIES MASTER FUND IC DUET AFRICA OPPORTU- 556 592 615
3 NITIES MASTER FUND IC 1.1%
KIMBERLITE FRONTIER AFRICA MASTER FUND,L.P.-RCKM KIMBERLITE 387 978 256
4 FRONTIER AFRICA MASTER FUND,L.P.-RCKM 0.8%
5 SUDHIR RUPARELIA 374 000 000 0.7%
6 BANK OF UGANDA DEFINED BENEFITS SCHEME- GENEAFRICA 330 723 247 0.6%
7 SSBT-CHANGE GLOBAL FRONTIER MARKETS, LP-CGPA 310 417 533 0.6%
FRONTAURA GLOBAL FRONTIER FUND LLC FRONTAURA GLOBAL FRON- 280 210 513
8 TIER FUND LLC 0.5%
9 IBULAIMU KIRONDE KABANDA 273 044 994 0.5%
NATIONAL SOCIAL SECURITY FUND NATIONAL SOCIAL SECURITY 212 610 920
10 FUND-PINEBRIDGE 0.4%
Key Shareholder Information

Stanbic Uganda is majority-owned by Stanbic Africa Holdings Limited (SAHL), which is a private limited liability company incorporated
in the United Kingdom. SAHL is, in turn, wholly owned by Standard Bank Group and is the vehicle through which Standard Bank Group
holds its interests in several Banks in African countries. Standard Bank Group is a public limited liability Company incorporated in
South Africa and is listed on the Johannesburg Stock Exchange (JSE). Standard Bank Group as at 31 December 2021 had total assets
of ZAR 2.7trillion (US$156 billion) the market capitalisation is ZAR 230billion (US$14 billion) and employs more than 49,000 people
worldwide. Standard Bank Group, whose year of founding traces back to 1862 in South Africa, trades as Standard Bank in South
Africa, Namibia, Mauritius, Mozambique and Swaziland and as Stanbic Bank throughout the remainder of the African continent. It has
wide representation, which spans 20 African countries and owns a controlling stake in the South African listed insurance company
Liberty Holdings Limited. While its principal activities are banking and related financial services, Standard Bank Group has delivered
its operations to meet the demands of the fast changing and demanding business world, with investments in insurance, wealth
management and investment management. It provides a wide range of banking and related financial services.
ANALYSIS BY SIZE OF HOLDING
VOLUME NO. OF SHARES % HOLDERS
1 - 1,000 172,159 0.00% 354
1,001 - 5,000 2,393,444 0.00% 829
5,001- 10,000 40,248,962 0.08% 4130
10,001 - 100,000 616,565,496 1.20% 11715
100,001 - 500,000 1 010,890,513 1.98% 3988
500,001 - 1,000,000 606,239,762 1.18% 742
1,000,001 - 5,000,000 955,137,310 1.87% 608
> 5,000,001 47,956,931,054 93.69% 104
REGISTER TOTALS 51,188,669,700 100.00% 22 470

Stanbic Uganda Holdings Limited 215

Notice of Annual General Meeting, 2022
NOTICE IS HEREBY GIVEN that the ANNUAL GENERAL MEETING (AGM) of Stanbic Uganda
Holdings Limited (“the Company”) for the year ended December 31st, 2021, will be held via
electronic means in accordance with Article 50 (a) of the Articles of Association, on Thursday,
June 02nd 2022, at 11:00 am to conduct the following business:
Agenda Notes
Ordinary Business AGM Registration and Meeting Access
1. To consider and, if deemed fit, pass an ordinary
Information
resolution to receive and adopt the annual audited 1. To participate in the virtual AGM, shareholders are
financial statements for the year ended December advised to register using the options below:
31st, 2021, including the reports of the Directors and
External Auditors. i. Dial *284*32# (Uganda mobile networks) or
*483*250# (Kenya mobile networks) and follow
2. To consider and, if deemed fit, pass an ordinary the prompts
resolution to confirm the appointment of Directors
in accordance with the provisions of the Company ii. Send an email request to be registered to
articles of association. suhlagm@image.co.ke.
3. To consider and, if deemed fit, pass an ordinary iii. For shareholders with updated details on the
resolution to approve the re-appointment of register, through the registration link that shall be
PricewaterhouseCoopers (PwC) as the External circulated to their email addresses through which
Auditors of the Company for the year 2022. they can register.
4. To consider, and if deemed fit, pass an ordinary 2. For support during the registration process, please call
resolution to receive and approve the fees payable to +256 312 226 723 or +254 709 170 000 or send an
the Non-Executive Directors for the year 2022. email to suhlagm@image.co.ke. Shareholders that
desire to update their contact details are requested
5. To consider and, if deemed fit, pass an ordinary to contact the share registrar, Custody & Registrars
resolution to authorise the Board to take the necessary Services Uganda, at shareholder@candrgroup.co.ug
steps to effect the payment of dividends for the year or call +256 757 072 773.
ended December 31st 2021, dependent on regulatory
approval. 3. Registration commences on Wednesday, May 11th,
2022, at 8:00 am and will close on Wednesday, June
6. To conduct any other business for which due notice 01st 2022, at 5:00 pm.
has been given.
4. A shareholder will be required to submit a valid
Dated: May 11th, 2022 identification document such as a National Identity
card or passport number and or their SCD account
By Order of the Board
details to facilitate shareholder verification.
5. The AGM will be streamed live via a link that shall be
_____________ provided to all shareholders who will have successfully
registered to participate in the AGM. Duly registered
Rita Kabatunzi shareholders and proxies will receive a short message
Company Secretary service (SMS/USSD) prompt on their registered
mobile numbers 24 hours prior to the AGM, a
reminder of the AGM, and a link to the live stream. A
second SMS/USSD prompt shall be sent one hour
ahead of the AGM. In registering to attend the AGM,
a shareholder consents to receive all messages
pertaining to the AGM.
Shareholder Rights
6. Shareholders are entitled to attend, speak and vote at
the meeting. A shareholder may appoint a proxy if he /
she cannot participate in the meeting. A proxy form is
included in the Annual Report or may be downloaded
from the Company website www.stanbic.co.ug
7. The duly completed proxy form should be delivered to
the Company Secretary at the Company Head Office
at Crested Towers, Short Tower 17 Hannington Road,
or emailed to suhlagm@image.co.ke at least 48 hours
before the scheduled time for the meeting. In default of
this, it shall be treated as invalid.

216 Proxy Form
Proxy Form
(Registration number 80020001344445) (“the Company”)
A shareholder entitled to attend and vote at the Annual General Meeting is entitled to appoint one or more proxies to attend,
speak and vote in his/her stead. A proxy need not be a member of the company.
I/We…………………………………………………………………………………………………………………………………………………………………………………
(Name in block letters)
of ……………………………………………………………………………………………
(Address in block letters), being a shareholder(s) and the holder(s) of …………………………………… ordinary shares of Ushs. 1 each
and entitled to vote, hereby appoint:
1……………………………………………………………………………………………………………………………………………
or, failing him/her
2. ………………………………………………………………………………………………………………………………………….
or, failing him/her the Chairman of the Annual General Meeting, as my/our proxy to vote for me/us on my/our behalf at the
Annual General Meeting of the Company to be held on Thursday June 02nd 2022 at 11:00am, and at any adjournment thereof
as follows;
AGENDA For Against Abstain
Ordinary resolution to:
Receive and Adopt the annual audited financial statements for the year
ended December 31st, 2021, including the reports of the Directors and Ex-
ternal Auditors.
1. Confirm the appointment of Directors in accordance with the provisions

of the Company Articles of Association.
Approve the re-appointment of PricewaterhouseCoopers (PwC) as the

External Auditors of the Company for the year 2022.
Receive and approve the fees payable to the Non-Executive Directors for
the year 2022
Authorise the Board to take the necessary steps to effect the payment of
dividends for the year ended 31st December, 2021, dependent on regula-
tory approval.
*Please indicate a cross or tick for each resolution above how you wish your votes to be cast. The ‘abstain’ option above is
provided to enable you to withhold your vote on any resolution. However, it should be noted that a vote abstained is not a vote
and will not be counted in the calculation of the proportion of the votes ‘for’ and ‘against’ a resolution. If no options are marked,
the proxy can vote as he/she deems fit*
Signature; ……………………………
Dated this ……………. day of ………………………., 2022
Notes:
1. A shareholder may insert the name of a proxy or the names of two alternative proxies of his/her choice in the space
provided. The person whose name stands first on the proxy form and who is present at the annual general meeting will be
entitled to act as proxy to the exclusion of those whose names follow.
2. To be effective, completed proxy forms must be lodged with the registered office at Crested Towers, Short Tower 17
Hannington Road, or emailed to suhlagm@image.co.ke at least 48 hours before the scheduled time for the meeting.
3. The Chairman of the Annual General Meeting may accept or reject any proxy form which is completed or received other
than in compliance with these notes.
4. The signatories must initial any alteration to this proxy form, other than the deletion of alternatives.
5. The signatories must initial any alteration to this proxy form, other than the deletion of alternatives.

Proxy Form (continued) 217
8. Shareholders and proxies who have successfully 13. Please note that the audited financial statements,
registered to attend the AGM will be able to follow annual report, Notice of the AGM and proxy form will
the AGM proceedings and ask questions using the be uploaded onto the Company website
live stream platform. Duly registered shareholders www.stanbic.co.ug. The reports may also be accessed
and proxies may vote (when prompted) using the live upon request by dialling the USSD code above and
stream link or using the USSD prompts. selecting the Reports option. The reports and agenda
can also be accessed on the live stream link.
9. Voting shall be done electronically using the VOTE tab
on the live stream link or via USSD Dividends
10. Shareholders will receive an SMS prompt, with 14. Bank of Uganda directed all Supervised Financial
instructions, on their registered mobile phone number Institutions (SFIs), including Stanbic Bank, the bank
alerting them to Propose and Second the resolutions in subsidiary of SUHL, to defer all discretionary payments
the Notice. dividends inclusive, for capital preservation purposes.
Therefore, the bank subsidiary must obtain explicit
11. Shareholders are advised to submit questions by
approval from BOU to pay a dividend to SUHL. This
Friday, May 27th, 2022, via phone, weblink or email.
dividend payment would form a significant portion of
Shareholders wishing to raise any questions or
the SUHL shareholder dividend pool. Engagements
clarifications regarding the AGM may do so in the
with BOU concerning dividend payments for 2020 and
following ways:
2021 remain underway as of this Notice’s publication
i. Through email to suhlagm@image.co.ke or date. A further update will be provided to the
shareholder@candrgroup.co.ug shareholders at the 2022 AGM.
ii. Via SMS by dialing the USSD code above and 15. Shareholders who have not received past declared
selecting the option (Ask Question) on the prompts dividends are requested to send an email to
or, shareholder@candrgroup.co.ug or call +256 757
072 773.
iii. Via Question Tab on the live stream link during the
AGM, Immobilisation
iv. Physically delivering their written questions with 16. The Uganda Securities Exchange has directed
a physical return address or email address to the shareholders of listed companies to immobilise their
Company Secretary at the address below. shares. Therefore, shareholders are required to open
Securities Central Depository accounts with any
12. A complete list of all questions received, and the registered Securities Central Depository Agent (broker,
answers thereto will be published on the Company’s investment advisor or custodian Bank). Please visit
website following the conclusion of the Annual General the Exchange’s website at https://www.use.or.ug for
Meeting. more information.

218 Our Products and Services
Our Products and Services

TRADE FINANCE INVESTOR SERVICES GLOBAL MARKETS
• Letters of Credit • Custody • Spot Foreign Exchange
• Bid Guarantees • Fiscal Agency • Forward Contract in Foreign
• Performance Guarantees • Facility Agency Exchange
• Advance Payment • Foreign Currency Options
Guarantees INVESTMENT BANKING • Cross Currency Swaps
CORPORATE • Avalisation • Equity Capital Markets • Interest Rate Swaps
• Import/Export Loans • Debt Capital Markets • Money Market Products
AND • Invoice Discounting • Advisory • Interest Rate Options
• Structured Investments
INVESTMENT • Bills for Collection • Asset Finance
• Syndication
BANKING CASH MANAGEMENT PROJECT FINANCE
• Cash in Transit INTERNATIONAL
• Collect Plus (Courier) DEVELOPMENT GROUP
• Electronic banking
• Bill Payments • Priority Suite
• Liquidity Management
• Payments and Receivables
Solutions
TRANSACTIONAL PERSONAL LENDING SAVINGS AND

ACCOUNTS • Unsecured Personal Loan INVESTMENTS
• Business Current Account • Overdrafts
• PureSave
• SME Trader Account • Home Loan
(local and foreign currency)
• Personal Current Account • Building Loan
• Fixed Deposit Account
• Student Account • Equity Release Loan
PERSONAL • Vehicle and Asset Finance
• NGO Account
AND • SACCO Account • Credit Card BANCASSURANCE
BUSINESS • Educare
BUSINESS LENDING TRADE FINANCE • Motor/ Assets Comprehensive
BANKING • Funeral Plan
• Letters of Credit
• Overdraft • Goods in Transit/ Marine Cargo
• Bid Guarantees
• BusinessTerm Loan • SME Business Cover
• Performance Guarantees
• Commercial Property Loan • Commercial Property
• Advance Payment Guarantees
• Property Finance Insurance
• Import/Export Loans
• Vehicle and Asset Finance • Business Life Insurance
• Invoice Discounting
• Internet banking • Debit and Credit Cards • Agent banking

• Mobile banking (VISA enabled) • FlexiPay
• Business Online • PayPlus • School Pay
SERVICES • Point of Sale • Payment Services Solution • Bill Payments
• Automated Teller Machines (water, electricity, pay TV,
pension)
FACILITY MANAGEMENT VALUATION PROJECT MANAGEMENT

• Project Evaluation: • Conduct valuation of land, • Project Formulation
• Life Cycle Analysis: buildings, plant, machinery & • Contract Management
• HSE Monitoring equipment for several • Compliance Monitoring
STANBIC • Premises Maintenance: purposes. And provide quick PROPERTY SERVICES
professional opinion/advise on
PROPERTIES ADVISORY & company properties
• Leasing and Letting:
• Building and maintaining a
LIMITED CONSULTANCY SERVICES • Conduct research and release leasing and letting portfolio
• Market Research: real estate market update • Engaging prospective clients
• Feasibility Studies: reports quarterly or bi-annual. • Superior client experiences for
• Project Viability: existing clients
• Securities trading • Immobilization of shares held • Private transfer of listed shares

• Investment Advisory in certificate form into the (subject to approval by Uganda
SBG • Share certificate Securities Central Depository Securities Exchange, Capital
immobilization • Pledge of shares in favour of Markets Authority, and
SECURITIES • Shares account opening banks and financial institutions Securities Depository)
UGANDA • Settlement of shares bought • • Transmission of shares in case
LIMITED and sold • of death/succession

Our Products and Services continued 219
• Platform and Application building (Digitizing • Applied Data science (Digitizing how business
where business happens) decisions are made)
FLYHUB
• Process Automation (Digitizing how business is
carried out)
Finance • Procurement Business Management

• Financial Literacy • Human resource • Design thinking and innovation
• Business analysis and planning • Contracts management • Joint ventures
BUSINESS • Business ethics
Managerial Compliance
INCUBATOR • Corporate Governance • Compliance(Legal ,HR and Tax)
• E-Commerce
• Risk management
• Bid management • Quality Management
• Marketing and Branding
• Entrepreneurial attitude • Organisation Health and safety
•

220 Our branches country-wide
Our branches Country-wide

BRANCH PLOT DETAILS
EASTERN
Busia Branch Plot 1, Tororo Road, Busia Town Tororo Road
Iganga Branch Plot 1 & 3, Magumba Road, Iganga Town Magumba Road
Jinja Branch Plot 2, Martin Rd.Jinja Town Martin Road
Kamuli Branch Plot 2, Gabula Rd. Gabula Road
Kapchorwa Branch Plot 20, Kitale Road, Kapchorwa Kitale Road
Kotido Branch Plot 3A, Moroto Road Kotido Moroto Road
Lugazi Branch Plot 108 Kampala-Lugazi Highway Kampala-Lugazi Highway
Mbale Branch Plot 50/52, Republic Av. Mbale Town Republic Avenue
Moroto Branch Plot 27, Lia Road Moroto" Lia Road
Soroti Branch Plot 42,Gweri Rd. Soroti Town Gweri Road
Tororo Branch Plot 1, Block 5 Uhuru Drive, Tororo Town Nagogera Road
Aponye Mall Branch Plot 8, Burton street Burton street
Kawempe Branch Plot 165 Kyadondo Road Kyadondo Road
Plot 100, Block 634Kilulumba Mubende
Kiboga Branch Hoima Road
Kiboga Town
GREATER KAMPALA
Kireka Plot 107 Block 232 Kyadondo Jinja Road
Kyambogo Branch Kyambogo University Campus Kyambogo University Campus
Luwero Branch Plot 440, Block 652 Luwero Town Kampala/Gulu High Way
Mityana Branch Plot 54, Block 425, Mityana Road, Mityana
Township" Mityana Road
Mpigi Branch Plot 130 Block 92 Mawokoota, Mpigi
Mukono Branch Plot 37/39, Kampala Road, Mukono Town Kampala/Jinja Road
Mulago Branch Mulago Hospital Floor No.2 Mulago Hospital
Nakivubo Branch Plot 58, William street William Street
Nateete Branch Plot 643, Block 18 Mengo Kibuga, Natete Masaka Road
Wandegeya Branch Plot 220, Kagugube Rd. Wandegeya Kagugube Road
William Street Branch Plot 6, William Street, Kampala William Street
METRO
Acacia Branch Kisementi, Plot 8A-12A Cooper Road Kololo, Kampala
Aponye Branch Plot 8 Burton street Burton Street
Plot 47A Spring Road, 9 Luthuli Av.and 9 47A Spring Road, 9 Luthuli Av.and 9
Bugolobi Branch
Bandari Rise Bandari Rise
Entebbe Main Branch Plot 15,Kla.Rd. Entebbe Town Entebbe/Kampala Road
Plot 3A2 & 3A3 Sports Lane, Lugogo By
Forest Mall Branch Sports Lane, Lugogo By -Pass Road
-Pass, Kampala
Freedom City Mall, Plot 4010 Entebbe Road,
Freedom City Branch Entebbe Road
Namasuba.
Garden City Branch Plot 64-86 Kitante Road, Kampala Kitante Road
Kabalagala Branch Embassy Plaza, plot 1188,1189,1190 Kibuga, Nsambya
Kampala Branch (Corporate) Plot 18, Hannington Road Hannington Road
Plot 2-8 Lugogo By-Pass Rd.Lugogo Kampa-
Lugogo Branch Lugogo By-Pass Road
la. Shop No.5"
Senate Building Makerere University Cam-
Makerere Branch Senate Building
pus
Metro Branch Plot 4, Jinja Rd. Social Security House Jinja Road
Umoja Building, Plot 20 Nakasero Road,
Nakasero Branch Nakasero Road
Opposite World Vision
Nakawa Branch Plot M193/194 Nakawa, Industrial Area Nakawa Industrial Area Road
Plot 3798, Block 216 Kyadondo, Ntinda
Ntinda Branch
Trading Centre

Our branches country-wide (continued) 221
NORTHERN
Adjumani Branch Plot 2, Plot 9, Mangi Road Adjumani Mangi Road
Apac Branch Plot 18, Akokoro Rd.Apac Town Akokoro Road
Arua Branch Plot 25,Avenue Rd.Arua Town Avenue Road
Gulu Branch Plot 2 & 4,Acholi Rd.Gulu Town Acholi Road
Kigumba Branch Plot 18, Kampala Gulu High Way Kampala Gulu High Way
Kitgum branch Plot 4/6, Philip Adonga Rd, Philip Adonga Road Kitgum
Lira Branch Plot 2,Soroti Rd. Lira Soroti Road
Moyo Branch Plot 1,Kerere Crescent Rd. Moyo Kerere Crescent Road
Nebbi Branch Nebbi Trading Centre Volume 1274 Folio 22" Arua Road
WESTERN
Buliisa Branch Buliisa - Paara Road, Buliisa Town Paara Road
Bundibugyo Branch Plot 4 Block A, Bundibugyo T/ship Bundibugyo Road
Bwamiramira Branch Plot 18,Karuguza T/Centre,Kibale Dist. Karuguza Road
FortPortal Branch Plot 20,Lugard Rd.F/Portal Town Lugard Road
Hoima Branch Plot 32 Main Street Main Street
Ibanda Branch Plot 10 - 12 Kamwege Road Ibanda Kamwege Road
Ishaka Branch Plot 44 Rukungiri Road, Ishaka Town Rukungiri Road
Kabale Branch Plots 150/152,Kabale Rd. Kabale Town Kabale Road
Kabwohe Branch Plot 6 Block A, Kabwohe Trading Centre Kabwohe Road
Kalangala Branch Kalangala Main Rd.Kalangala Town Kalangala Main Road
Kasese Branch Plot 27/31 Stanley Street,Kasese Stanley Street
Kihihi Branch Plot 63 Block 74 Kinkizi
Plot M5, Block 29 Kisoro/Kabale Rd. Kisolo
Kisoro Branch Kisoro/Kabale Road
Town
Kyotera Branch Plot 32, Masaka Rd.Kyotera Town Masaka Road
Lyantonde Branch Plot 200,Block 76 Lyantonde Town Kampala/Mbarara Raod
Masaka Branch Plot 4 ,Birch Av. Masaka Town Birch Avenue
Masindi Branch Plot29/33,Tongue Street Masindi Tongue Street
Mbarara Branch Plot 1/3 Ntare Rd.Mbarara Town Ntare Road
Mubende Branch Plot 2, Block 13 Main street Mubende Main street
Ntungamo Branch Plot 33, Ntungamo Township Mbarara Kabale Road
Rukungiri Branch Plot 123,Block 5 Kagunga Rukungiri Town
ww
CUSTOMER SERVICE POINTS PLOT DETAIL STREET/ROAD
Bwera CSP Saad Village, Mpondwe- Lubiriha, Bwera Mpondwe-Lubiriha Road
Town
Jinja CSP Plot 3, Lady Alice Mukoli Road ,Lady Alice Mukoli Road
Kaabong CSP Plot 20 Kaabong Central West, Kaabong Kaabong Central West Road
Trading Centre
Kayunga CSP Plot 472 Block 123, Kayunga Trading Centre Kayunga Road
Kagadi CSP Kagadi Street, Kagadi on Mugenyi street Kagadi/Mugenyi Street
Kumi CSP Plot 2 Ngora Road , Kumi Ngora Road
Pakwach CSP Plot 94 Pakwach , Arua road Arua Road
Kakira CSP Kakira South Estate FRV 10 Folio 23, Kakira Kakira South Estate Road
Kinyara CSP Kinyara Estate Kinyara Estate
Mayuge CSP Owere Shoppers Akedi, Mayuge Town Bukoba Road
Wobulenzi CSP Plot 123 Block 159 Bulemezi, Wobulenzi Kampala Gulu High Way
Trading Centre

222 Comapny Information
Company information
Registered/ Head Office
Crested Towers, Short Tower
17 Hannington Road
Kampala, Uganda
P.O. Box 7395 & 7131 Kampala, Uganda
Fax: +256 41 4230608
Company Secretary
Rita Kabatunzi
11th Floor Crested Towers, Short Tower
17 Hannington Road Kampala, Uganda
P.O. Box 7395 & 7131 Kampala, Uganda
Tel: +256 31 2224338
Share Registrars
Custody and Registrar Services (Uganda) Limited
4th Floor, Diamond Trust Center,
17/19 Kampala Road, Kampala, Uganda
Telephone: +256 414 237504
Auditors
PricewaterhouseCoopers
Certified Public Accountants,
Communications House,
1 Colville Street,
P. O. Box 882, Kampala Uganda.
Contact Details
Chief Financial Officer Company Secretary Investor Relations
Ronald Makata Rita Kabatunzi Sophie Achak
Tel: +256 41 7 154 396 Tel: +256 41 7 154 338 Tel: +256 41 7 154 310
Share Registrars Other Customer Care Centre

Custody and Registrar Services Tel: 0800 250250
(Uganda) Limited
4th Floor, Diamond Trust Center,
17/19 Kampala Road, Kampala, Uganda Email:
Telephone: +256 414 237504 cccug@stanbic.com
For copies of our Annual reports, please refer to:

www.stanbicbank.co.ug/Uganda/About-Us/Investor--Relations
STANBIC BANK UGANDA LIMITED

Crested Towers (Short Tower)
Plot 17 Hannington Road
P.O. Box 7131 Kampala
SBG SECURITIES
STANBIC BUSINESS INCUBATOR

Plot 5 Lower Kololo Terrace
STANBIC PROPERTIES LIMITED

1st Floor Crested Towers (Tall Tower)
FLYHUB UGANDA LIMITED

Plot 5 Lower Kololo Terrace


Stanbic.co.ug


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FINANCIAL STATEMENTS

Financial Statements for the year ended 31 December 2021 i

Stanbic Uganda Holdings Limited

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

TOTAL CAPITAL The sum of core capital and supplementary capital.

LENDING RATIO Net loans and advances divided by total deposits.

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

About this report

STANBIC UGANDA HOLDINGS LIMITED

Our Organisation structure

Minority Stanbic Africa

SME training and Digital

Our listings and shareholders

STANBIC UGANDA HOLDINGS LIMITED

Uganda is our home,

STANBIC UGANDA HOLDINGS LIMITED

Facts about Stanbic Uganda Holding Limited

Balance Sheet Number of Branches

UShs 8.7 trillion 69

UShs 1.33 trillion 4,683

STANBIC UGANDA HOLDINGS LIMITED

Standard Bank Group

Standard Bank Group on-the-ground presence in

STANBIC UGANDA HOLDINGS LIMITED

Murchision Falls National Park, Nothern Uganda

Stanbic Bank presence in Uganda

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

Overview I commend the Management and all Domestic Systemically Important

STANBIC UGANDA HOLDINGS LIMITED

Stanbic Uganda Holdings continued to grow in 2021,

Economic and Corporate Governance of the Year (Gold), Digital Banking

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

The year 2021 presented us with an unusual and

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

2021 provided us with an opportunity to demonstrate

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

STANBIC UGANDA HOLDINGS LIMITED

Our strategy is focused on creating sustainable growth

Our business units and corporate functions have aligned

Our strategy represents an effective approach to the

Our strategy is achieved within the parameters of our risk

Our governance Performance linked to Remuneration that drives

GOVERNANCE promotes strategic

OVER TIME interests of Stanbic

Our stakeholders are the providers of the capital we need

STANBIC UGANDA HOLDINGS LIMITED

CREATING CREATING DRIVING UGANDA’S