FEATURED STORY

Drop in South Sudan revenue squeezes CfC Stanbic profit

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CfC Stanbic Holdings has recorded Ksh7.359 billion in pre-tax profits for the year ended 31st, December 2015.

This is a marginal 4% decrease in profitability compared to the same period last year and has been attributed to a decrease in revenue in its South Sudan operations as the effects of political unrest continue to impact the South Sudan economy.

Speaking during an Investors’ breakfast to announce the full year results earlier today, CfC Stanbic Bank Chief Executive Philip Odera said: “In addition to the unfavourable business condition in South Sudan for the better part of 2015, decrease in trading income also had an impact on our performance.”

However the Group continued to report growth in balance sheet with customer deposits growing by 10%  to Kshs 105.7 billion and customer loans growing by 19% to Kshs 104.9 billion, taking total assets to Kshs 208 billion.

Net interest income also increased year on year by 10% to Kshs 9.3 billion boosted by growth in customer loans and advances.

Income from trading declined from Kshs 4.779 billion to Kshs 4.307 billion as a result of harsh trading environment in the Kenya bond market.

The brokerage arm SBG securities improved its market share to 14.97% from 13.24% in 2014 in spite of lower volumes experienced in the securities exchange in 2015 due to local currency depreciation against the dollar.

The business successfully upgraded its core banking system in April 2015 and upgraded its digital platforms. The bank is also set to open two new branches this year – at the Hub, Karen in April and at Two Rivers in July.

CfC Stanbic Holdings Limited (“the Group”) is a subsidiary of Stanbic Africa Holdings Limited (“SAHL”), which is in turn owned by Standard Bank Group Limited (“the Group”), Africa’s leading banking and financial services group.

CfC Stanbic Holdings Limited owns 100% of CfC Stanbic Bank Limited and 100% of SBG Securities Limited (formerly CfC Stanbic Financial Services Limited).

CfC Stanbic Bank is Kenya’s sixth largest commercial bank as measured by total assets. CfC Stanbic Bank is licenced and regulated by Central Bank of Kenya.

 

Written by
BUSINESS TODAY -

editor [at] businesstoday.co.ke

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