The Bank of South Sudan (BOSS) has asked Stanbic Bank to convert its branch into a subsidiary.
In January 2025, BOSS issued a letter instructing Stanbic to convert its South Sudan branch into a fully incorporated, standalone subsidiary.
According to the bank’s latest financial disclosures, discussions between Stanbic management and the South Sudan regulator are ongoing to agree on a smooth and amicable way forward.
“The Bank received a letter from the Bank of South Sudan (BOSS) in January 2025, requiring management to convert the South Sudan branch operations to a full standalone subsidiary,” indicated Stanbic Bank.
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What it Means for Stanbic in South Sudan
Currently, Stanbic Bank’s operation in South Sudan is just a branch. This means that it is directly controlled and managed from the parent company (Stanbic Holdings) in Kenya.
The Bank of South Sudan now wants the branch to become a subsidiary. This means that it must register as a local company in South Sudan.
Further, it will have a local board of directors and management and will be required to meet local capital and operational rules.
On performance, Stanbic Holdings increased its dividend payout by 35.1% to Ksh8.1 billion in March, following a 12.8% rise in net profit for the year ended December 2024.
Additionally, the lender’s net profit grew to Ksh13.71 billion, up from Ksh12.16 billion the previous year, marking the third year in a row that Stanbic has raised its dividend per share.
Driven by the strong earnings performance, the Stanbic Board proposed increasing the total dividend per share to Ksh20.74, up from Ksh15.35 in the previous year.
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Earlier Dispute Involving Stanbic
Earlier in January 2025, BOSS issued a 14-day ultimatum to Stanbic Bank, threatening to suspend its licence over a Ksh722 million dispute involving the lender and Air Afrik.
In a letter addressed to the bank, Bank of South Sudan (BOSS) Governor John Ohisa instructed Stanbic Bank South Sudan to fully cooperate with local investigative authorities handling the matter.
Moreover, he directed the bank to comply with legal requirements by re-registering its operations as a standalone subsidiary.
Governor Ohisa warned that failure to meet these conditions would prompt regulatory action, including possible suspension of the bank’s licence.
“As the regulator, we hereby direct Stanbic Bank South Sudan to immediately co-operate with the Financial Intelligence Unit (FIU), the Anti-Corruption Security Division,
“And all relevant investigative and legal authorities by ensuring full disclosure and documentation relating to the allegations and recording of statements by required personnel from your bank,” said Ohisa.
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