CfC Stanbic Holdings has recorded profit before taxation dropped by Ksh1.46bn to Ksh2.86 billion or the six months to June 30 from Ksh4.33 billion the same period last year.
The drop has been attributed to a decrease in trading activity in Kenya during the period as well as a drop in revenue in the bank’s South Sudan operations as the effects of political unrest continued to impact the South Sudan economy.an after tax profit of Ksh1.959 billion for the period ending June 30th, 2015.
During the period customer deposits grew by 18% to Ksh111 billion and loans increased 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 30th 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 is exploring investments in non-interest revenue activities, 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 said.
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