CFC rides on interest to record 22pc jump in profit

CfC Stanbic Holdings posted a 22.1 per cent growth in net profit in the half year ended June, helped by higher interest income.

The firm listed on the Nairobi Securities Exchange said its net earnings in the period stood at Sh2.3 billion compared to Sh1.9 billion the year before.

CfC declared an interim dividend of Sh1.77 per share, raising it from Sh0.75 paid in the previous period.

“The board considered the matter of payment of an interim dividend and after deliberation made a resolution to pay an interim dividend of Sh700 million to shareholders which is equivalent to Sh1.77 per share,” the company said in a statement.

The dividend will be paid on or about September 30 to shareholders on the register on September 5.

CfC recorded a 24.3 per cent jump in net interest income to Sh5.4 billion despite its loan book remaining static at Sh120.8 billion, indicating an increase in interest rates.

The loan book had dropped compared to December last year when it stood at Sh128.1 billion, a signal of reduced lending appetite in an industry that has seen high default rates.

Its non-interest income, capturing fees charged on financial services, also rose 18.7 per cent to Sh3.9 billion.

CfC offers a wide range of financial services including banking, insurance agency and stock brokerage through its subsidiaries CfC Stanbic Bank, CfC Stanbic Nominees, Stanbic Insurance Agency and SBG Securities.

The company recorded a 2.7 per cent drop in deposits to Sh155.2 billion.

CfC recently appointed Greg Brackenridge as its chief executive, replacing Mr Kitili Mbathi who resigned in January to take up his appointment as the director-general of the Kenya Wildlife Service (KWS).