CfC Stanbic joins peers in profit raking

August 13, 2012
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CfC Stanbic became the third Kenyan bank to venture into the new African nation in June of this year, after Kenya Commercial Bank and Equity Bank/FILE

, NAIROBI, Kenya, Aug 13 – CfC Stanbic Bank recorded a 53 percent rise in half year profit after tax which stood at Sh1.3 billion in the first half of 2012, compared to Sh841 million recorded during the same period last year.

This was primarily on the back of improved returns from government securities and Foreign Exchange income. The bank’s total operating income increased 40 percent to Sh6.5 billion compared to similar period last year.

CfC Stanbic’s Managing Director Greg Brackenridge said the bank’s recent expansion into South Sudan is expected to boost the performance of the banking business’ performance in the medium to long-term.

“The South Sudan branch, the solid performance of our corporate and investment banking business as well as our focus on the personal and business banking segments should continue to contribute positively to our bottom line,” he said.

CfC Stanbic became the third Kenyan bank to venture into the new African nation in June of this year, after Kenya Commercial Bank and Equity Bank.

Group Managing Director Kitili Mbathi said the bank plans to raise funds for its expansion programme through a Rights Issue, which once complete said should bolster the institution’s capital as well as the expansion of the South Sudan operations.

The bank’s parent company, CfC Stanbic Holdings, posted a 34.5 percent jump to Sh1.2 billion in net profit for the first six months of the year. Earnings per share for the group grew to Sh4.43 for the first half of 2012 from Sh2.82 marked in the same period last year.

Mbathi attributed the growth to a strong performance by the group’s diversified mix of businesses which have registered steady growth in the first half year of the year.

“Despite a tough environment for credit growth, we have seen strong performance by the global markets business. We’ve been able to take advantage of opportunities available to us in the Kenyan market given the diversified mix of businesses the Group owns in addition to the tactical positioning of the balance sheet from the end of last year in anticipation of the interest rate movements in 2012,” he said.

As a result, the group’s total income went up 39 percent to Sh6.6 billion compared to the previous year.

Net interest income increased by 16 percent to Sh3.16 billion for the period under review, while loans and advances grew by 10 percent to Sh97.4 billion.

Staff costs were up 22 percent, while other operating expenses increased by 30 percent over the first six month period.

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