Standard Bank Group's Kenyan operation, CfC Stanbic Holdings, recorded a 52% increase in profit after tax for the period ended June 2014. The earnings stood at Ksh3.4-billion (about US$3.8-million), up from the Ksh2.2-billion (US$2.5-million) posted over the same period last year.
CfC Stanbic Bank's Chief Executive Greg Brackenridge says the growth was as a result of improved revenues from trade finance in South Sudan, cost discipline, growth in loans and advances, a lower credit impairment charge as well as improved performance from SBG Securities.
"We are pleased with these strong first half results, which evidence revenue growth and operational efficiency gains across the business which has brought down the cost to income ratio from 55.1% to 50.4%," says Mr Brackenridge.
"All business units have contributed to this robust performance, particularly SBG Securities and Personal and Business Banking which continue to show strong growth and we look forward to continuing this performance for the second half of the year."
The net interest income was up by 19% over the same period last year, driven by the growth in customer loans, which grew by 24% to Ksh78.2-billion (US$88-million). Customer deposits grew by 14% year on year to Ksh94.8-billion (US$107-million), with the highest growth being on current accounts in line with our strategy of continued investment in our transactional banking business.
Corporate and Investment Banking's customer loans and advances increased by 17% mainly on short-term loans, while customer deposits grew by 10% mainly on client transaction accounts. Personal and Business Banking's customer loans grew by 33% while customer deposits registered a 21% growth.
SBG Securities profit after tax increased by a record 83% to Ksh139-million (US$1.5-million) buoyed by net brokerage income which increased by 61% to Ksh290-million (US$3.2-million) as a result of increase in the company's market share on the Nairobi Stock Exchange to 15.9% in June 2014 from 11.5% in June 2013. Market turnover was up by 37%.
Going forward, Mr Brackenridge said the Group will continue to focus on deepening client relationships and improving customer service whilst at the same time improving operational efficiency.
For more about CfC Stanbic see www.cfcstanbicbank.co.ke .
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