Stanbic Bank handled 30% of government debt in 2017

April 19, 2018 in Finance, Markets by Editor

April 19, 2018—A third of all government securities in the secondary market during 2017 were taken up by Stanbic Bank Uganda which has resulted in it being awarded the best performing commercial bank in the government securities for the seventh year running.

Patrick Mweheire, the Stanbic Bank Chief Executive said, “As the most active participant in the secondary trading market, Stanbic Bank plays a critical role supporting Uganda’s economic growth and national developmental agenda. Last year alone, Stanbic Bank accounted for 30% of the UGX5.1 trillion (just over $1.3 billion) in government securities traded on the secondary market.”

He said the bulk of these funds are used to finance construction of much needed national infrastructure projects so vital for trade and economic transformation.

The Primary Dealer system was started in 2005 as way to promote participation in government securities markets, to foster the development of financial markets, to improve the secondary market trading system as well as to ensure efficiency in the operations related to the government securities market at the central bank.

Handing over the award at BOU headquarters in Kampala, Prof. Emmanuel Tumusiime Mutebile, the Governor Bank of Uganda said, “I wish to acknowledge the role that this year’s award winner Stanbic Bank Uganda Limited has played especially for participating in the primary auctions, market making capabilities, consistent pricing as well as timely market intelligence. Because of their effort, they have been able to ensure efficiency in the operations related to the government securities market at the central bank.”

Government securities include treasury bills and bonds which are traded in the secondary market. The secondary market is where previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.

Stanbic Bank Uganda is a member of the South African-based Standard Bank Group, Africa’s largest bank by assets. At the end of December 2017, the Group reported assets of $165 billion while its market capitalisation stood at $28 billion.

The UGX5.1 trillion during 2017 represented a 29% increase from 2016. In the same vein, the ratio of secondary market turnover to the total outstanding stock of Government treasury securities increased significantly to 41.0% in 2017 from 28.9% in 2016.