CfC Stanbic Holdings Records 34 Percent Growth in Half-Year earnings.

The listed financial-services firm records Kshs 1.2 billion, ahead of a planned Rights Issue at the Nairobi Securities Exchange 

Listed financial services company, CfC Stanbic Holdings, has announced a 34 percent increase in after-tax profit for the first half of 2012. Adjusted for discontinued activities following the demerger of the insurance business in April 2011, the half year results are 57% on a like-for-like basis.

CfC Stanbic Holdings which is a member of the Standard Bank Group recorded Kshs 1.2 billion in after-tax profits for the period ending June 30 2012, compared to Kshs 902 million during the same period last year.

CfC Stanbic Holdings Managing Director Mr. Kitili Mbathi attributed the growth to a strong performance by the Group’s diversified mix of businesses which have registered steady growth in the first half year of the year. In particular, despite a tough environment for credit growth, we have seen strong performance by the Global Markets business.

Locally incorporated CfC Stanbic Bank and the equities brokerage firm CfC Stanbic Financial Services are wholly owned businesses of CfC Stanbic Holdings.

“Despite challenging macro-economic conditions, we’ve been able to take advantage of opportunities available to us in the Kenyan market given the diversified mix of businesses the Group owns in addition to the tactical positioning of the balance sheet from the end of last year in anticipation of the interest rate movements in 2012. As a result, the Group’s total income is up 39 percent to Kshs 6.6 billion on prior year.”

CfC Stanbic Bank recorded a 53 per cent rise in profits after tax which stood at Ksh1.3 billion in the first half of 2012 compared to Ksh841 million recorded during the same period last year. The bank’s total operating income increased 40 percent to Kshs 6.5 billion compared to similar period last year.

CfC Stanbic Bank’s Managing Director Mr. Greg Brackenridge said the bank’s recent expansion into the Republic of South Sudan is expected to boost the performance of the banking business’ performance in the medium to long-term.

 “The South Sudan branch, the solid performance of our corporate and investment banking business as well as our focus on the personal and business banking segments should continue to contribute positively to our bottom line,” said Mr. Brackenridge.

CfC Stanbic Financial Services also posted a strong recovery to post a half year after tax profit of KShs23 million compared to Kshs 6.4million during the same period last year.

Mr. Mbathi said the Rights Issue once completed, should bolster the bank’s capital which will better position it to take advantage of the opportunities that present themselves as the macro-economic environment continues to improve in the coming months as well as the expansion of the South Sudan operations.