Stanchart depositors brace as bank mulls new tariffs

May 20, 2016 in Business, Companies, Financial Services by Editor

KAMPALA, MAY 20 – After suffering a steep erosion of profits during 2015, StanChart is contemplating a revision in user charges that appear to be partly aimed at driving more of their retail customers towards electronic service platforms.

In a tariff guide accidentally released to clients last week, Stanchart says the new tariffs will become effective from June 15. The penalties mainly affect over the counter services.

In annual results released on April 28; Standard Chartered reported a 75.2 percent fall in profits and 69.5 percent rise provisions for bad and doubtful loans. The lenders profit after tax fell from Ushs 114.9 billion in 2014 to Ushs 28.3 billion in 2015. The non-performing portfolio marginally improved from Ushs 119.4 billion in 2014 to 113.9 billion last year but provisions for bad and doubtful debts spiraled from Ushs36.1 billion to 118.4 billion.

See graphic for more detail on the new tariffs