CFC Stanbic Bank reports 81.7 per cent rise in pre-tax profit - CNBC Africa

CFC Stanbic Bank reports 81.7 per cent rise in pre-tax profit

East Africa

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The bank, which is controlled by South Africa’s Standard Bank Group, also recorded a net interest income increase of 14.67 percent to 3.61 billion shillings. Earnings per share were up to 5.57 shillings from 4.43 shillings in the same period a year ago. Net interest income was also up 14.67 per cent.

A number of Kenyan banks such as Kenya Commercial Bank, CFC Stanbic Bank and Equity have expanded into South Sudan, with Co-operative bank having recently announced their venture into South Sudan.

“We started a relationship with South Sudan quite early and we’ve seen some of the tensions in South Sudan impact part of our business, but we still believe that South Sudan is a country where we cannot afford to fail as a new economy in Africa,” CFC Stabic Bank financial controller Abraham Ongenge told CNBC Africa on Monday.

“We still feel that there’s a lot of hope in turning up that business there and we’ve seen that in our results with contribution of South Sudan being 197 million Kenyan shillings in terms of profit.”

Last year CFC Stanbic Bank funded its expansion plans through a rights issue and this year plans to further entrench itself and grow its Juba branch.  

“South Sudan, in itself, is generating enough internal capital. Last year profit after tax for South Sudan was in the tune of 150 million Kenyan shillings. This year for the half year it’s about 197 million Kenyan shillings. We of course are running South Sudan as a branch of CFC Stanbic Bank, which then means that our capital requirements are a little bit different, compared to subsidiaries but we do expect that we should be able to internally generate capital to support the South Sudan business,” Ongenge explained.

The growing relationship between China and Africa will be significantly instrumental in future as investment flows from the Asian nation increase on the continent.

Ongenge explained the CFC Stanbic Bank is looking to obtain specialist assistance in tapping into the opportunities that Chinese business involvement brings into the East African market.

 “The clear are that comes to mind is payment and facilitating trade finance between the Chinese market and the East African market. Around the personal and business market is the ability for us to offer private client solutions to some of the people in China who would like to invest in Kenya, so those two areas I see as key within the business banking space,” he said.