, NAIROBI, Kenya, Mar 7 – CfC Stanbic Holdings Limited has recorded a pre-tax profit of Sh4.58 billion in 2012 compared to Sh2.79 billion earned in the year 2011.
This reflects a 64 percent increase in regards to year-on-year profitability following strong performances by its two subsidiaries – CfC Stanbic Bank Limited and CfC Financial Services Limited.
CfC Stanbic Bank’s CEO Greg Brackenridge said that this year’s performance is testament to the value derived from having a full service bank in which the different business segments complemented each other through the economic cycle.
“In particular, in a year of high interest rates resulting in depressed credit demand, our global markets franchise came through and delivered excellent performance with year-on-year trading revenues increasing by 98 percent”, he said.
He added that the growth in profitability was also supported by the group’s gradual shift from reliance on funded income to non-funded income through increased transactional volumes.
Another highlight of the 2012 performance is the group’s investment in the South Sudan business as the branch broke even during the year and contributed positively to the 2012 financial results.
CfC raised additional capital in November 2012 with its issue being oversubscribed by 12 percent.
Brackenridge explained that the group intends to use the proceeds to boost its capital base to meet the capital demand of the growth plans in Kenya taking into account the recently issued prudential guidelines as well as supporting further expansion in South Sudan.
“Our South Sudan subsidiary contributed Sh150 million to our bottom-line just nine months after we established operations in that country. We see high growth prospects in that market and we plan to open another branch this year,” he added.