[2008-09-03]  CfC Stanbic registers rise in pre-tax profit
Listed financial firm CfC Stanbic Holdings registered a pre-tax profit of Sh432 million for the first half of the year, buoyed by higher income earnings from its subsidiary companies.

CfC Stanbic Holdings is the holding company of the financial services conglomerate encompassing CFC Stanbic Bank, CFC Life Assurance, The Heritage Insurance and CFC Financial Services.

The firm’s consolidated assets have increased substantially to Sh105.8 billion following the recently concluded merger of CFC Bank Limited (since renamed CfC Stanbic Holdings Limited) and Stanbic Bank Kenya Limited (since renamed CfC Stanbic Bank Limited).

The financial results indicate consolidated operating income of Sh4.5 billion, profit before tax of Sh670 million and profit aftertax of Sh432 million. Profit attributable to shareholders after minority interests has been reported as Sh363 million. The merger transaction was completed on May 31, meaning the financial results do not include the performance of Stanbic Bank Kenya Limited for the first five months of this year.

The holding company’s banking unit, CfC Stanbic, joined the profitability tier as the benefits of combined scale pushed the bank’s half year pre-tax profits to stand at Sh697 million in June this year.

CfC Stanbic which at a total asset base of Sh75 billion ranks as Kenya’s fourth largest bank is now gearing to fully integrate the systems of both banks while citing branch expansions and new product introductions as future earnings catalysts.

Accordingly, the consolidated income statement incorporates the financial results for the former CfC Bank Limited (Group) for five months up to 31st May 2008 and the results for CfC Stanbic Holdings Limited (post merger) for the month of June 2008. The prior period comparatives are for the former CfC Bank Limited (Group) only.

Full benefit
“Going forward, the full benefit of the synergies will be realised, sooner than later as the group businesses coordinate their strategies and refocus their energies to develop and market new products and services to be offered to a broader client base,” said group CEO Madhabushi Soundararajan. In this context the financial values from the combined businesses will become more evident in due course in the near term.

“The scale and size of the conglomerate is vast and ultimately all stakeholders should benefit from the value proposition from a strong and diversified business platform,” Mr Soundararajan added.


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