CFC STANBIC OF KENYAN SEES GREATER PROSPECTS IN SOUTH SUDAN
(The following press release from CfC Stanbic Holdings Ltd. was received by e-mail. The sender verified the statement.)
*CfC Stanbic Sees greater prospects in South Sudan as it breaks even in 9 months*
*March 7th, 2013*: CfC Stanbic Holdings <http://www.stanbicbank.co.ke/>Limited, a member of the Standard Bank Group, has recorded improved year on year profitability following strong performance by its two subsidiaries – CfC Stanbic Bank Limited and CfC Financial Services Limited, the equity brokerage business.
The Group’s pretax profits stood at Kshs. 4.588 billion in 2012 compared to Kshs. 2.799 billion earned in the year 2011, a 64% increase.
Addressing media in Nairobi, CfC Stanbic Bank’s Managing Director Greg Brackenridge said that this year’s performance is testament to the value derived from having a full service bank in which the different business segments complement each other through the economic cycle.
“In particular, in a year of high interest rates resulting in depressed credit demand, our Global Markets franchise came through and delivered excellent performance with year on year trading revenues increasing by 98%”,he said.
The growth in profitability was also supported by the Group’s gradual shift from reliance on funded income to non funded income through increased transactional volumes.
Another highlight of the 2012 performance is the Group’s investment in the South Sudan business. The branch broke even during the year and contributed positively to the 2012 financial results.
“Our South Sudan subsidiary contributed Kshs.150 million to our bottomline just 9 months after we established operations in that country. We see high growth prospects in that market and we plan to open another branch this year,” said Brackenridge.
CfC Stanbic Holdings raised additional capital in November 2012 with its issue being oversubscribed. The Group intends to use the proceeds to boost its capital base to meet the capital demand of the growth plans in Kenya taking into account the recently issued prudential guidelines as well as supporting further expansion in South Sudan.