CfC Stanbic records Ksh1.9 billion profits after tax

CfC Stanbic Holdings has recorded an after tax profit of Ksh1.959 billion for the period ending June 30^th, 2015.

The profit before tax dipped by Ksh1.46bn to Ksh2.86 billion from Ksh4.33 billion reported in the same period of 2014. The drop was occasioned by a decrease in trading income driven by rise in yields due to heavy mopping up of liquidity leading to low trading activity in Kenya as well as a decrease in revenue in the bank’s South Sudan operations as the effects of political unrest continue to impact the South Sudan economy.

Phillip Odera, CEO, CfC Stanbic Bank

During the period the Group continued to report growth in its balance sheet with customer deposits and customer loans recording significant growth, as its stock brokerage arm SBG Securities improved its market share.  Customer deposits grew by 18%  to Ksh111 billion and customer loans grew by 28% to Ksh100 billion, with personal and business banking contribution to customer loans and advances increasing from 47% in June 2014 to 49% in June 2015.

“Our business is still exhibiting healthy growth as evidenced by growth in customer deposits and loans and in total assets,” CfC Stanbic Bank Chief Executive Philip Odera told investors at a briefing session in Nairobi. 

Subdued equity market

SBG securities improved its market share to 13.62% from 13.24% in the last quarter of 2014 but revenue declined by 8% to Ksh 315m for the period ending 30^th June 2015 indicating a moderate decline from Ksh 343m recorded in the same period in 2014.

The drop in performance reflected subdued equity and fixed income market activity for the period under review, attributable to uncertainty in the implementation of capital gains tax and erosion of returns by a weakening Kenya Shilling.

To enhance growth, the bank continues to invest in channel capabilities through various digital enhancements after successfully upgrading its core banking system in April and launching its mobile banking app last month. The bank is also exploring investments in non-interest revenue activities to improve returns including opening more branches and launching its own insurance agency as it ventures into bancassurance.

“We received Bancassurance agency approvals in July and we intend to launch the agency in the next few months,” Mr. Odera confirmed.

Stanbic Insurance Agency will offer insurance products and services to CfC Stanbic customers and non-customers alike with a focus on wealth protection and preservation for its customers, thereby expanding and strengthening the overall customer value proposition.