Friday 22 May 2015

CfC Stanbic Bank records Kshs 1.2bn profit in quarter 1 2015

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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