CfC Stanbic Holdings profit after tax for the year ending 31 December 2014 increased by 11percent to Sh 5.69 billion.
Speaking at an investors’ briefing in Nairobi, CfC Stanbic Bank Executive for Corporate and Investment banking in East Africa Mike Blades, said the growth was mainly attributable to the improved performance of the Kenya banking business, the stock brokerage business.
However the performance was partly offset by a decline in revenues in the South Sudan Branch operations.
“Our focus on delivering value to our customers helped strengthen our underlying business and our results. Our growth was high-quality, propelled and fuelled by key businesses we have been emphasising in recent years,” he said.
Net interest income increased year on year by 12 percent as a result of a 28 percent growth in customer loans and advances.
The increase of 15percent in net fees and commission income was mainly attributable to increased transactional volumes from a growing customer base and successful closure of key deals in Investment Banking.
Trading income declined by a similar margin, this was mainly driven by lower income from structured products, and decreased margins on foreign exchange.
“There was an improvement in the quality of the lending book driven by improved collections and proactive management of the portfolio mix”, he explained.
The cost to income ratio reduced marginally to 50.2 percent from 50.7percent in 2013 reflecting various productivity gains realised from investments made in prior years.