Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. South Africa
  4. Johannesburg Stock Exchange
  5. Standard Bank Group Limited
  6. News
  7. Summary
    SBK   ZAE000109815

STANDARD BANK GROUP LIMITED

(SBK)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Ugandan banks jolted by court ruling on syndicated loans

10/08/2020 | 01:58pm EDT

KAMPALA, Oct 8 (Reuters) - Banks in Uganda plan to appeal a court ruling issued on Wednesday that has effectively declared illegal certain syndicated loans - representing at least $1.5 billion worth of debt - an industry body said on Thursday.

The ruling by the Commercial Court was the result of legal action by Ham Enterprises Uganda Ltd, against Diamond Trust Bank (DTBK) in neighbouring Kenya along with its Uganda subsidiary.

"The court said the transactions or the credit facilities that were advanced by DTBK were illegal, null and void and unenforceable because it did not have a licence to conduct financial institutional business in Uganda," lawyer for Ham Enterprises Matthew Kiwumba told Reuters.

Diamond Trust Bank's lawyer, Kiryowa Kiwanuka, told Reuters it had filed a notice of appeal against the ruling.

"As a result of the judgement and its implications, the syndicated portfolio currently seated with commercial banks... is now at risk," Wilbrod Humphrey Owor, executive director of Uganda Bankers Association, an industry body, said in a statement.

At least $1.5 billion in syndicated credit to private sector borrowers could be affected by the ruling, the statement said.

Owor also said in the statement chief executives of all 35 financial institutions in the country resolved to join Diamond Trust Bank and appeal the ruling.

A spokesman for Uganda's judiciary, Solomon Muyita, declined to provide details of the court ruling. In a statement late on Thursday the finance ministry said it had received inquiries from bilateral and multilateral lenders about the implication of the ruling.

The government, the statement said, will "undertake all its obligations and duties" on already procured and future syndicated loans.

Diamond Trust Bank Kenya and its Uganda subsidiary had put together credit facilities as syndicated loans for Ham Enterprises over several years.

Ham and the banks were in dispute over repayments, which resulted in Ham taking legal action against Diamond Trust Bank Kenya, alleging it had illegally advanced the loans because it did not have a Uganda banking licence.

Ugandan banks rely on syndicating big credit lines or loans with parent banks in bigger markets to serve major customers like telecoms and manufacturing companies.

Local units of major international banks in Uganda include ABSA, Standard Bank and Standard Chartered .

($1 = 3,697.0000 Ugandan shillings) (Reporting by Elias Biryabarema. Editing by Jane Merriman, Kirsten Donovan)


ę Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ABSA GROUP LIMITED -2.92% 132.67 End-of-day quote.10.69%
DIAMOND TRUST BANK KENYA LIMITED -1.67% 59 End-of-day quote.-21.33%
STANDARD BANK GROUP LIMITED -3.12% 127 End-of-day quote.-0.06%
STANDARD CHARTERED PLC -3.60% 468.7 Delayed Quote.0.60%
All news about STANDARD BANK GROUP LIMITED
06/08STANDARD BANKá : Avior Conference - 8 June 2021
PU
06/07Uganda's stock of bad loans surged 22% last year as COVID-19 hit borrowers -c..
RE
06/01STANDARD BANKá : SBG Management Pre-close call transcript 31 May 2021
PU
05/31S.Africa's Standard Bank expects 40% rise in first half profits
RE
05/31Standard Bank Four-Month Revenue Hit by Currency Effects
DJ
05/25South Africa's rand at 22-month high on soft dollar as inflation fears ease
RE
05/25STANDARD BANKá : SBG Pillar 3 Report 1Q21 (575.5k)
PU
05/24STANDARD BANKá : SBG Climate change media release (108.3k)
PU
05/21S.Africa's Standard Bank commits to publish fossil fuel lending reduction tar..
RE
05/21STANDARD BANKá : SBG 2021 online AGM guideá (6.2m)
PU
More news
Financials
Sales 2021 112 B 7 769 M 7 769 M
Net income 2021 21 108 M 1 468 M 1 468 M
Net Debt 2021 - - -
P/E ratio 2021 9,64x
Yield 2021 4,91%
Capitalization 202 B 14 135 M 14 072 M
Capi. / Sales 2021 1,81x
Capi. / Sales 2022 1,67x
Nbr of Employees 50 115
Free-Float 93,7%
Chart STANDARD BANK GROUP LIMITED
Duration : Period :
Standard Bank Group Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends STANDARD BANK GROUP LIMITED
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 8
Average target price 146,63 ZAR
Last Close Price 127,00 ZAR
Spread / Highest target 27,6%
Spread / Average Target 15,5%
Spread / Lowest Target 3,15%
EPS Revisions
Managers and Directors
NameTitle
Simpiwe Kenneth Tshabalala Chief Executive Officer & Executive Director
Arno Daehnke Group Financial Director & Executive Director
Thulani Sikhulu Gcabashe Chairman
Alpheus Mangale Chief Engineering Officer
Tau Mashigo Chief Technology Officer