South Sudan turmoil takes toll on CFC profits

Thursday March 3 2016

CFC Stanbic Chief Executive Philip Odera (left)

CFC Stanbic Chief Executive Philip Odera (left) with CFC Stanbic Holdings Limited Chief Executive Greg Brackenridge (right) when they released the bank's 2015 full year financial results at the Nairobi Serena Hotel on March 3, 2016. PHOTO | DIANA NGILA  

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CFC Stanbic's otherwise good full year earnings in 2014 were pushed back 14 per cent last year by South Sudan unrest and delayed projects in Kenya.

The lender’s Sh4.9 billion net profit, a drop from its previous Sh5.7 billion last year ,was attributed to the troubles South Sudan subsidiary as well as delay in implementation of major projects by the government including the road annuity plan.

The banks chief executive Philip Odera said the lender however closed the year on a high note and has hopes of better prospects having begun 2016 on a ‘positive note.’

“We had quite some heavy focus on the expected big tickets from the roads annuity plan which have not come through and coupled with the unfavourable business condition in South Sudan for the better part of 2015, we had a decrease in trading income,” Mr Odera said.


South Sudan which had robust business based on transactional volumes like foreign exchange was depressed by political instability and currency devaluation.

The country which has since joined the East African community and signed a peace deal between warring parties now present hopes of business prospect in 2016 .

CFC Group however reported growth in her balance sheet with customer deposits growing by 10 per cent as customer loans climbed 19 per cent to Sh104.9 billion, pushing up total assets to Sh208 billion.

The bank also recorded a 10 per cent increase in net interest income driven by growth in customer loans and advances.

The bank is also set to open two new branches this year - at the Hub, Karen in April and at Two Rivers in July.