Stanbic Uganda to Pay Shareholders Through Mobile Phones

Digital Content

Stanbic Bank shareholders will receive their dividend payments via the mobile phone money transfer service. This follows a resolution passed by shareholders to amend the company's Articles of Association to enable the new form of dividend payment.

This was at the bank's annual general meeting at the Golf Course Hotel in Kampala on Friday. The bank declared a final dividend of sh40b, with each shareholder entitled to sh7.142 per share.

Other shareholders will be paid through the traditional forms. Telecom firms, MTN, Zain and uganda telecom, have mobile money transfer services.

Getrude Wamala Karugaba explained that the new payment method follows requests by shareholders for the bank to find cheaper, faster and more reliable ways of transferring dividends.

"Previously we have been paying dividend payment by checks or bank transfer. But for some shareholders a check wasn't effective payment for the amount of dividend earned. The purpose of the amendment is to give us the ability to take advantage of mobile money transfer services," she said.

She explained that shareholders interested in this form of payment are required to register with a mobile money transfer service provider of their choice. Stanbic posted a 21.3 percent rise in net profit of sh95.2b in 2009 driven by strong revenue growth from interest from loans and advances.

Hannington Karuhanga, chairman said prospects for growth in 2010 were strong despite anticipated step up in competition and lag effects of the global economic downturn on customers.

"The board and management are however optimistic that the bank remains well positioned and has the right plans in place to meet these challenges," Karuhanga said.