CfC Stanbic Bank has recorded an
after tax profit of 1.154 billion period ending 31 March 2015. This marked a
28% drop in profits compared to quarter 1 2014 which stood at 1.610 billion.
The drop was mainly due to a decline
in fee and foreign exchange revenues from the South Sudan branch. The current
political impasse, which manifested in December 2013, coupled with the drop in
global oil prices has hampered economic activity in the country. However, the
Kenya banking business continued to record improved performance in the three
month period ended March 2015 as compared to the three month period ended March
2014.
Customer loans
and advances were up 19% which resulted in a 21% increase in interest income.
The bank successfully raised term funding in the last quarter of 2014 which is
expected to further boost loan growth.
Commenting on
the first quarter results, CfC Stanbic Bank Chief Executive Philip Odera said that the
business is still exhibiting healthy growth.
“Our growth
continues to be of good quality evidenced by the level of loan losses reported
during the period. Our focus on
delivering value to our customers continues to be a key objective in our
underlying businesses,” said Mr. Odera.
Customer
deposits also grew by 17% year on year supported by an increase in customer
numbers. The bank is set to continue to invest in channel capabilities through
various digital enhancements after successfully upgrading its core banking
system in April.
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