CfC Stanbic Holdings Posts 27 Percent Increase in Profit Before Tax in first half of 2016

CfC Stanbic Holdings has recorded a 27% increase in pre-tax profit for the half year period ended June 2016. Earnings stood at Ksh3.64 billion, up from Ksh2.86 billion posted over the same period last year.

Speaking at an investors’ briefing breakfast to announce the results, CfC Stanbic Bank’s Chief Executive Phillip Odera said the growth was as a result of Increase in revenue in the banking business driven by growth in customer loans and advances and improved margins.

“We are pleased with these strong first half results, which evidence revenue growth and operational efficiency gains across the business. The robust performance is attributed to the bank with reduced revenues recorded by our stock brokerage arm due to decreased activity at the Nairobi Securities Exchange.

Customer loans and advances increased by 8% mainly driven by a combination of long term investment needs as well as working capital requirements for our clients, while customer deposits declined by 0.5%, however adjusting for the impact of the depreciation of South Sudanese Pound, customer deposits grew by 8% year on year”.

Mr Odera said the Group will continue to focus on superior customer service delivery and deepening client relationships whilst at the same time improving operational efficiency.

Rebranding…

The Group is planning a name change that will see both the Holdings company and the bank drop CfC and pave the way for the formal adoption of the Stanbic Bank brand with CfC Stanbic Bank becoming Stanbic Bank and CfC Stanbic Holdings becoming Stanbic Holdings Plc. The group has so far received approval from its shareholder and is awaiting Central Bank’s approval.

“We are delighted that the shareholders have approved the rebranding, which means we can now align ourselves from a naming and branding convention to our parent company – Standard Bank Group,” Mr. Odera said.