CfC Stanbic first quarter profit down 28 per cent
What you need to know:
- “Our growth continues to be of good quality evidenced by the level of loan losses reported during the period. Our focus on delivering value to our customers continues to be a key objective in our underlying businesses,” Mr Odera said.
A decline in foreign exchange revenues from South Sudan branch pushed CfC Stanbic Bank’s profit after tax lower by 28 per cent in the first three months of 2015.
Earnings after tax in the period dipped to Sh1.15 billion down from Sh1.6 billion. The bank further attributed the poor performance to the current political impasse, which began in December 2013 and the drop in global oil prices that hampered economic activity in the country.
CfC Stanbic Bank chief executive Philip Odera, however, said the Kenyan banking business continues to record improved performance.
“Our growth continues to be of good quality evidenced by the level of loan losses reported during the period. Our focus on delivering value to our customers continues to be a key objective in our underlying businesses,” Mr Odera said.
Net interest income expanded by 21 per cent despite a 95 per cent growth in bad loans. The bank is, however, focusing on continued investment in technology to enhance service delivery.
“With management remaining focused on utilising technology to deliver services and expecting no immediate change in the bank’s retail strategy of targeting middle to high income customers, we see no immediate cost pressures,” noted Standard Investment Bank analysts.
