× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

CFC Stanbic first-half pretax profit down 34 pc

By Standard Reporter and Reuters | August 13th 2015

Financial group CFC Stanbic Holdings pre-tax profit for first-half 2015 fell 34 per cent to Sh2.87 billion for the period ending June 30, 2015. The profit before tax dipped by Sh1.46 billion from Sh4.33 billion reported in the same period of last year.

The bank attributed the drop to a decrease in trading income driven by rise in yields due to heavy mopping up of liquidity leading to low trading activity in Kenya and a decrease in revenue in the bank's South Sudan operations. Effects of political unrest also continued to impact the South Sudan economy.

CFC Stanbic, which is controlled by South Africa's Standard Group, said total income fell to Sh7.73 billion from Sh9.28 billion, with net interest income up slightly to Sh4.39 billion from Sh4.3 billion. CFC Stanbic, which operates CFC Stanbic Bank and a financial services firm, said earnings per share fell to Sh4.96 from Sh8.49 in the same period a year ago.

However, the group continued to report growth in its balance sheet during the period under review 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 per cent to Sh111 billion and customer loans grew by 28 per cent to Sh100 billion, with personal and business banking contribution to customer loans and advances increasing from 47 per cent in June 2014 to 49 per cent 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.

SBG securities improved its market share to 13.62 per cent from 13.24 per cent in the last quarter of 2014 but revenue declined by 8 per cent to Sh315m for the period under review, indicating a moderate decline from Sh343m recorded in the same period in 2014.

The drop in performance reflected subdued equity and fixed income market activity for the period under reviewb due to uncertainty in the implementation of capital gains tax and erosion of returns by a weakening Kenyan shilling.

The bank plans to continue investing in channel capabilities through various digital enhancements after successfully upgrading its core banking system in April and launching its mobile banking app last month. It 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.

Share this story
Mumias Sugar releases Sh270m to pay farmers
The company’s Corporate Affairs manager Moses Owino confirmed the company has released the money to pay farmers whose accounts have been verified and validated.
Dog walking becomes the newest hustle in town
Dog walking is now a status symbol. Owning a pet is cool. I nowadays meet lots of Kenyans and foreigners walking their dogs and some running.