CfC Stanbic Bank named best private bank in Kenya

CfC Stanbic Bank’s Wealth and Investment division has been named the best private bank in Kenya at the Global Private Banking Awards organized by The Banker & Professional Wealth Management Magazines; publications of the Financial Times Group.

The award was presented at a ceremony that took place in Singapore yesterday.

Receiving the award, CfC Stanbic Bank Head of Wealth and Investment Anjali Harkoo said the award was a testimony to the quality of the bank’s unique customized solutions that cuts across investment management through to succession planning and generational wealth transfer.

“We are honored to be recognized as the Best Private Bank in Kenya. It is the first time that a Kenyan bank has been picked and it reflects our unwavering commitment to providing our high-net worth clients  and their families with first class wealth planning and investment advice through our Wealth and Investment division.” said Ms. Harkoo.

The awards are evaluated on the client relationship management blueprints and how the banks have adapted portfolio management, asset allocation and product strategy to meet investors' changing needs and attitude to risk.

CfC Stanbic bank’s Wealth and Investment team prides itself in offering an integrated suite of end-to-end wealth management and bespoke banking solutions.  Wealth and Investment has full services offices in Kenya, Nigeria, South Africa, Jersey and London and truly offer clients a seamless solution for their on and offshore wealth management needs.  With the lowest client to Wealth and Relationship Manager ratios (50:1) in the industry, we provide a commitment to always respond before the sun sets.

“We place a strong focus on generational wealth and our recently launched Leadership Academies honor our purpose of banking the family and our belief in empowering the next generation of leaders. Our clients have access to the Junior Leaders’ (10 -12 years), Young Leaders’ (13 – 17) and Future Leaders’ (18-24 years) Academies where they are equipped with the necessary financial skills to grow and manage wealth into the future. These Academies were borne out of an understanding of the complexities that exist in managing family wealth, and a desire to ensure that next generation heirs are equipped to manage wealth and chart their own course,” added Ms. Harkoo.

Currently 70% of wealth is lost in the transfer to the second generation and 90% is lost in the transfer to the third generation. The Academies empower and educate the families of the CfC Stanbic bank Wealth and Investment clients on the principles of investing, banking / lending, financial planning, leadership and philanthropy.

CfC Stanbic Bank is a member of Standard Bank Group whose Wealth and Investment division was also recently recognized as the leading Private Bank on the African continent at the 25th Annual Private Banker International (PBI) Global Wealth Summit and Awards.

Standard Bank consolidates its East African presence with official opening of Ethiopian representative office

Standard Bank Group operating as CfC Stanbic Bank in Kenya has expanded its already extensive East African footprint with the official opening of a representative office in Ethiopia. This means that Standard Bank, which is Africa’s largest bank by assets, has a continent-wide footprint in 20 African countries.

The representative office, which is based in Addis Ababa, was opened by Standard Bank Chief Executive, Ben Kruger. It will act as an entry point for clients seeking to invest in Ethiopia and will be administered by Standard Bank’s head office in South Africa

The growth potential for the East African region continues to attract significant investment. With an established presence across four of the key markets in the region, namely Kenya, South Sudan, Tanzania and Uganda, the opening of the Ethiopian representative office is indicative of the group’s commitment to the region.

“As a bank rooted in Africa, our vision is to build a leading financial institution that delivers superior products and services for all our customers. We are able to leverage our strong position on the continent, our strategic partnership with the Industrial and Commercial Bank of China (ICBC), and our sector expertise in natural resources, to facilitate capital investment in support of growth and to connect African markets to each other,” says Mr. Kruger.

Ethiopia’s remarkable growth has been underpinned by high public investment and a growing consumer base. The country boasts the second largest population on the continent, behind Nigeria, at around 90 million. GDP growth has averaged about 10.0% over the past 5 years. Heavy public investment in agriculture, energy and transport are likely to continue to support growth in the medium term as the government ramps up its productive sectors.

The energy sector is also set to boom with power projects at various stages of development, and with Ethiopia emerging as a major power hub in the region, energy exports will likely become a major foreign exchange earner in the near future. Industry and manufacturing, a top priority for Ethiopia, are likely to start making a more significant contribution in the country’s GDP going forward which will largely be facilitated by the increase electricity supply.

“As such, establishing a presence in Ethiopia is in recognition of the increasing interest by investors and our clients, in the country’s economic growth. Standard Bank will be well-positioned to take advantage of the cross-sectorial investment opportunities both in Ethiopia and the region as a whole.  Our experience in East African markets will benefit all our clients by providing them with insights into how best to capitalise on their investments in the region,” said Mr Kruger.

 “We believe that we are uniquely positioned to support the government’s plans in attracting more investments into the country through our client base on the continent and facilitating the financing on their behalf,” said Ms Taitu Wondwosen, Head of Coverage Ethiopia.

Kenya’s private sector growth drops to a record low – PMI Report

The Latest Purchasing Managers’ Index™ (PMI™) data released by CfC Stanbic Bank indicate that the Kenyan private sector growth stalled at the end of the third quarter (Q3). Business conditions improved only modestly in September, with the respective rates of expansion in output and new work easing to record lows.

The rates of expansion in output and new business were both the slowest on record in September, reflecting the overall trend signalled by the headline index. Activity rose only modestly, with data pointing to a sharp easing in new order growth. New business gains were reportedly undermined by a number of factors including currency weakness and the on-goingteachers’ strikes.

Commenting on September’s survey findings, Jibran Qureishi, Economist at CfC Stanbic Bank said: “The PMI has fallen to its lowest level in September since data collection began back in January 2014. The weaker exchange rate has certainly increased import costs for most firms which has consequently suppressed their profit margins, perhaps also leading to the significant slowdown in workforce growth.”

Mr Qureishi further noted that the currency is likely to appreciate in the coming months due to the rise in real yields in the Kenyan money markets which will probably increase portfolio inflows and thus lend some much needed support to the balance of payments.

“Economic growth which expanded by a healthy 5.5% y/y in Q2 2015 from 4.9% y/y in the previous quarter will probably subside slightly in the third quarter this year judging by the activity of the CfC Stanbic PMI. Higher interest rates may only be a temporary measure as rates are likely to move lower while the broad stability in the currency could start to control rising costs that most firms have been suffering from,” he added.

The slowdown of the Kenyan private sector as a whole was reinforced further by the weakest rise in employment in the series history. Payroll numbers increased only marginally in September, with the majority of respondents (83%) noting no change since August.

Similarly, input buying rose at the slowest pace since the survey began in January 2014. Anecdotal evidence generally linked changes in purchasing activity to the perceived strength of client demand. Subsequently, the rate of pre-production inventory building also eased, with reports of higher new work less frequent than in previous months.

On the price front, total input costs rose sharply in September. The latest increase was the most marked in a year-and-a-half, driven by a steep hike in purchase prices. Higher costs stemmed from the weakness of the shilling versus the dollar, and a number of firms were able to pass on these pressures by way of raising output charges.

CfC Stanbic Bank partners with Seedstars World to find the best startup in Kenya

CfC Stanbic Bank has partnered with Seedstars World, the global seed-stage startup competition for emerging markets, to identify the best startup in Kenya on October 2^nd.

 

Up to 12 of the best startups in Kenya will compete to represent the country at the Seedstars World competition at the final event in Geneva and win up to USD 500,000 in equity investment. The local entrepreneurs will receive additional support from CfC Stanbic Bank Kenya.

CfC Stanbic Bank in Kenya will act as the main partner for the event and will explore potential options for collaborations and partnerships with the participating entrepreneurs to empower them to succeed.

"As a bank, our core purpose is empowering business people to succeed and this one of the way of doing so for startups as it brings together passionate people and also reflects our entrepreneurial spirit as we help them take those important first steps in their entrepreneurial journey.” said Ben Wandawanda, Head of Business Banking, CfC Stanbic Bank Kenya.

Continuing on its goal to put the spotlight on entrepreneurs from emerging countries, Seedstars World expanded its competition to more than 50 countries for 2015, up from the 36 countries of the 2014 edition. Its past participants have raised 20M USD together, providing employment to +360 employees all around the world.

“Kenya has consistently proven itself to be an exceptional startup ecosystem and an enabler of brilliant talent. Together with CfC Stanbic Bank Kenya, we are very excited to discover and bring support to all entrepreneurs participating in the competition.” said Gregory Pepper, Regional Manager for Africa at Seedstars World.

All regional winners of the local events are invited to Switzerland to pitch at the final event in February 2016. This year, Seedstars World is looking to expand its impact through key partners in recognizing the startups potential according to diverse criteria. In addition to the 500’000 USD global winner prize, two more 500’000 USD equity prizes have been added: a travel track, powered by lastminute.com group, and a fintech track, putting the total amount of investment to be won at 1’5M USD. Various prizes can be won outside the tracks, including a 50’000 USD space prize supported by Inmarsat and AP Swiss.

OkHi emerged as the local Nairobi 2014 winner, with its next generation address system for Kenya and beyond.

This year, Seedstars World has a local Ambassador representing the initiative throughout the year Douglas Ogeto, Managing Partner at The Founders Hive (Africa), who chose to join Seedstars World because “it’s an opportune time to support local startups as they have shown and have the potential to compete and scale globally and offer competitive quality and experience”. They have also partnered up with iHub, Bonelli Design Firm, iBiz Africa and The Founders Hive.

 

 

CfC Stanbic Bank opens 24-hour digital branch at Garden City Mall

CfC Stanbic Bank has today unveiled its first fully digital branch in Nairobi at the Garden City Mall. The branch which will operate 24 hours is expected to enhance customer experience and convenience on the backdrop of growing popularity and adoption of Digital Banking.

Speaking at the opening of the Branch, CfC Stanbic Bank, Chief Executive Officer, Mr. Philip Odera said that the bank’s focus is hinged on transforming how it engages with both new and existing customers and enhancing customer experience.



“This new technology is set to replace the manual processes thus enabling our staff to serve more customers in less time. Through this paperless transaction capability, we will be facilitating KRA (tax) payments, council collections, online share trading, Automated Cash Deposit machines and internet banking transaction ability,” said Mr. Odera.

The bank is also planning to open three additional fully digital branches in the following locations; The Hub-Karen and Two Rivers both in Nairobi County and Changamwe in Mombasa County by the end of this year.

The new digital banking concept seeks to eliminate a big chunk of the manual operations through deployment of services to the mobile and web platforms. Among the services that will be offered digitally include; the origination of new accounts and instructions for customers, mobile and online registration and a cashless transaction capability.

In addition, 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 opening of the Garden City Mall branch brings the total number of CfC Stanbic Bank’s branches to 24 across the country.

 

Kenya’s private sector remains in solid growth territory in July – PMI report

The Latest Purchasing Managers’ Index™ (PMI™) data released by CfC Stanbic Bank indicate that Kenya’s private sector lost some growth momentum in July, as business conditions improved at the weakest pace in four months.

However, the overall rate of expansion remained solid, driven by further rises in both output and new orders. Employment also contributed to growth of the sector as a whole, with the rate of hiring little-changed from June’s solid pace.

Commenting on July’s survey findings, Jibran Qureishi, Economist at CfC Stanbic Bank said: “The third quarter of the year has started off rather slowly as the PMI fell to 54.1 in July, which is lower than the 55.5 average recorded in the second quarter although slightly better than first quarter average of 53.9.”

Mr. Qureishi further noted that new order growth fell to a six-month low, while cost pressures intensified to a 16-month high predominantly due to the pass through effects of the weaker Shilling.

“We, however, feel the regulator has been pre-emptive in addressing the concerns around the currency thus far, and if the much needed stability materialises from their actions, the recent cost pressures that have been slowing down growth are likely to be contained,” he said.



CfC Stanbic Latest Purchasing Managers' Index (PMI) Report, July

Subdued expansions in output and new orders were partly to blame for the overall slowdown in July. Output growth eased since June, while new business rose at the slowest pace since January. Nonetheless, the respective rates of increase remained robust overall. Commercial initiatives and high customer turnout were reported to have boosted demand, leading to a further rise in activity.

New export work at Kenyan private sector firms also rose more slowly in July, with the latest expansion the weakest recorded so far in 2015. That said, it remained strong in the context of historical data.

Employment continued to increase in July, with the pace of job creation little-changed since June and solid overall. There were reports that new business gains had led companies to hire additional staff in the latest period.

On the price front, total input costs increased at the sharpest rate since March 2014 during July. The overall rise was mainly driven by a marked expansion in purchase prices, while salaries rose only modestly.

According to anecdotal evidence, the strength of the US dollar versus the Kenyan shilling continued to place upward pressure on purchasing costs. Subsequently, companies in Kenya raised their output charges for the fourth straight month in July.

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.

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.