CFC Stanbic, Housing Finance Group Post Profits in Half Year Results

hf 1H16 Results

Housing Finance Group (HFCK) announced their 1H16 results, posting a 26.3% y-o-y increase in Profit after Tax (PAT) to KES 612.5 MN. Trailing EPS stood at KES 3.70. Net interest income grew 21.8% y-o-y to 2.1BN, with interest income and interest expenses growing at 21.5% y-o-y (KES 3.7 BN to KES 4.5 BN) and 21.3% y -o-y (KES 2.0 BN to KES 2.4 BN) respectively.

Total assets was up 8.0% y-o-y to KES 71.3 BN driven by a 33.1% q-o-q decrease in deposits due from other financial institutions to KES 2.6 BN in 1H16. Borrowings rose 6% y-o-y to KES 18.2 BN with customer deposits up 6% y-o-y to KES 39.7BN .During the 1H16 HF Group opened new branches in Komarock, Machakos, River Road Hurlighum, Ongata Rongai and Nanyuki in an effort to grow customer deposits and loans.

CFC Stanbic Holdings 1H16 Results

CfC Stanbic released their 1H16 results, recording a 22.2% y-o-y increase in Profit after Tax (PAT) to KES 2.4 BN resulting to a trailing EPS of KES 13.5 . Revenue went up 22.0% yo-y to KES 9.4 BN, courtesy of a 24.4% rise in net interest income to KES 5.5 BN and an 18.8% increase in non-interest revenue to KES 4.0 BN.

Total operating expenses on the other hand rose 6.9% y-o-y to KES 4.9 BN. Cost to income ratio declined 750 bps y-o-y to 52.4% in 1H16 from 59.9% recorded in same period last year. Total assets declined 0.4% y -o-y to KES 212.3 BN. Loans and advances rose by 0.3% y-o-y to KES 120.9 BN while deposits and current accounts declined 2.7% y-o-y to KES 155.2 BN. CFC Stanbic Bank announced plans to open 1 branch in the remaining half of the year.

Management of the bank announced an Interim dividend of KES 1.77 per share (up from an interim dividend of KES 0.75 per share in 1H15). Books closure will be on 5 September 2016 and payment will be made on 30 September 2016

National Bank 1H16 Results

National Bank of Kenya released their 1H16 results, announcing an 82.0% y-o-y drop in Profit after Tax (PAT) to KES 311.3 MN. Interest income rose 8.7% y-o-y to KES 6.97 BN courtesy of an 18.5% y-o-y increase in interest from loans and advances to KES 5.4 BN.

Interest Expense declined 3.2% y-o-y to KES 2.53 MN driven by a 16.8% y-o-y decrease in expenses related to customer deposits to KES 2.0BN . Net interest income increased 16.9% to KES 4.4 BN. Non-interest income declined 42.0% y-o-y to KES 1.4 BN while operating expenses rose 46.1% y-o-y dampening the bank’s performance.

Loans and advances declined 9.3% y-o-y to KES 64.8 BN with non-performing loans and advances increased 132.11% to KES 27.3 BN leading to a subsequent rise in loan loss provision to KES 4.9 BN. National Bank’s total capital to total risk weighted assets stands at 13.2% below the minimum statutory rate of 14.5%.

(Source: Dyer & Blair Research)