CFC STANBIC BANK HALF YEAR 2011 ANALYSIS

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CFC Stanbic Holdings Limited released their results for the Half Year period ending June 30^th 2011 on Wednesday 11^th August.

I took a look at the figures for CFC Stanbic Bank as an entity on its own

Profit Before Tax was up 21.2% to Kshs. 1.4 Billion. Profit After Tax rose 16%, hitting Kshs. 841.3 Million

Total Assets were up by 14.5% to stand at Kshs. 117.4 Billion

Net loans and advances surged 40.6% to Kshs. 68 Billion, improving the Loan:Deposit ratio to 87.1%, from 60% for a similar period last year

The bank however is struggling to raise deposits in a tough environment. Customer Deposits were down 2.9% from Kshs. 80.7 Billion to Kshs. 78.3 Billion

H1 2010 vs. H1 2011 Analysis

	H1 2010  Kshs.	H1 2011  Kshs.	% CHANGE
TOTAL ASSETS	102.5 BILLION	117.4 BILLION	+14.5%
NET LOANS AND ADVANCES	48.5 BILLION	68.2 BILLION	+40.6%
CUSTOMER DEPOSITS	80.7 BILLION	78.3 BILLION	-2.9%
LOAN:DEPOSIT RATIO	60%	87.1%	+27%
TOTAL INTEREST INCOME	3.05 BILLION	3.56 BILLION	+16.5%
TOTAL INTEREST EXPENSE	1.2 BILLION	843.6 MILLION	-31.6%
NET INTEREST INCOME	1.82 BILLION	2.71 BILLION	+49.1%
TOTAL OPERATING INCOME	4.55 BILLION	4.66 BILLION	+2.5%
TOTAL OPERATING EXPENSE	3.39 BILLION	3.26 BILLION	-3.9%
COST:INCOME RATIO	74.56%	69.92%	-4.6%
PROFIT BEFORE TAX	1.2 BILLION	1.4 BILLION	+21.2%
PROFIT AFTER TAX	725 MILLION	841 MILLION	+16%

Net Non Performing loans were down 53.4% to Kshs. 448 Million from Kshs. 961 Million

Like Barclays Bank of Kenya, CFC Stanbic Bank registered a drop in Customer Deposits for its half year period. But unlike Barclays, CFC managed to ramp up its Net Loans and Advances by 40.6%, a sector in which Barclays’ growth was flat

The Cost:Income ratio was down 4.6%, but is still high at 69.92%

Foreign Exchange trading income was down 10% to Kshs. 673 Million, a surprise considering the assertion that banks were going to cash in big time on the volatility of the Kenya shilling

Staff Costs was significantly reduced by 34.4% to Kshs. 668 Million from slightly over a Billion

Fees and Commissions were also down 7.4% to Kshs. 733 Million

Q1 2011 vs. Q2 2011 (Quarter on Quarter Analysis)

	Q1 2011          Kshs.	Q2 2011          Kshs.	% CHANGE
TOTAL INTEREST INCOME	1.66 BILLION	1.89 BILLION	+13.8%
TOTAL INTEREST EXPENSE	445 MILLION	399 MILLION	-10.3%
NET INTEREST INCOME	1.2 BILLION	1.5 BILLION	+22.6%
TOTAL OPERATING INCOME	2.1 BILLION	2.5 BILLION	+19.3%
TOTAL OPERATING EXPENSE	1.61 BILLION	1.64 BILLION	+1.3%
COST:INCOME RATIO	76.2%	64.7%	-11.5%
PROFIT BEFORE TAX	506 MILLION	896 MILLION	+76.9%
PROFIT AFTER TAX	347 MILLION	494 MILLION	+42.2%

Rising inflation numbers didn’t seem to affect CFC in the 2^nd Quarter of 2011. Both Profit Before Tax and Profit After Tax surged in the 2^nd Quarter from Q1 2011.

Interest Expense also came down. This coupled with the rise in income, resulted in Q2  Cost:Income ratio going down by 11.5%

Earnings Per Share for the bank rose 16% to 6.89/= for the half year