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CFC Stanbic H1 2010 Results
Rank: Elder Joined: 6/2/2008 Posts: 1,438
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CFC Stanbic has just released H1 2010 results. In my view the EPS of Kshs 2.48 is rather low in comparison with other financial counters.
PBT has however increased by 68% from 794,876,000 to Kshs 1,332,227,000, so NOT bad on that front.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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the insurance business is also doing well...unnderwriting income is up 31%....
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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...anualised EPS comes to 4.96, i.e. P/E of 17.75. Now that's quite high, but as I mentioned several month back, many of us are banking on the impending de-merger Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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6 pages of results!!!!! look at smart co. from pg 10- 15. Not bad. If the results were poor all should have been squeezed in one page  Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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that Cfc life when it lists here how much will it cost?...*somebody the calculation here*
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Sh 6 to 10 the deal wrote:that Cfc life when it lists here how much will it cost?...*somebody the calculation here* Life is short. Live passionately.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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sparkly wrote:Sh 6 to 10 the deal wrote:that Cfc life when it lists here how much will it cost?...*somebody the calculation here* Asante sana...
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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sparkly wrote:Sh 6 to 10 the deal wrote:that Cfc life when it lists here how much will it cost?...*somebody the calculation here* And how did you arrive at that? Show the calculation as requested Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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@Mukiha. I guess you are the most knowledgeable (or perhaps the most passionate) CFC Stanbic Holdings follower here, so I will pose this question to you (or to anyone else in a position to answer).
Could you help us understand the results. The bank's profits are still HIGHER than the aggregate results of the bank + subsidiaries, notwithstanding that they are ALL in PROFIT.
I believe the bank as well as CFC Life and CFC Financial Services are VIRTUALLY fully (almost 100%) owned by the Holding company while CFCS Holdings owns a substantial part of Heritage Insurance as well as Stanbic Management Services.
However, in this case the sum of the parts is LESS than the whole. Could it be that the Holding company has extremely LARGE overheads or could they be RESTRUCTURING/DE-MERGER costs being borne by the Holding Company?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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It's a convoluted group, though not as complex as Unga Group. CFC Stanbic Holdings [CFC-SH] owns 100% of CFC Stanbic Bank [CFC-SB]; 100% of CFC Financial Services [CFC-FS]; and 53% of CFC-Insurance Holdings [CFC-IH] CFC-IH owns 100% of Heritage Ins, 100% of CFC Investments, and 100% of CFC Life. CFC-SB owns 24% of Stanbic Management Services EA Heritage owns 60% of Herita Ins Co (Tanzania), which in turn owns 45% of Alliance Ins and 39% of Strategies Ins. ==== The PBT for the various entities directly under CFC-SH group were: CFC-SB = sh1,157m CFC-IH = sh252m CFC-FS = sh25m The total comes to sh1,434m; which higher than the sh1,332m recorded by the whole group. The reason it is higher is that we have not accounted for the fact that CFC-SH owns only 53% of CFC-IH. Thus only sh133m from CFC-IH belongs to the group. Re-doing the math gives a total of sh1,313 from the individual units. This is still sh19m short of the sh1,332m announced by the group...and I can't figure out where it came from. Any helper in the house? I'm not an accountant, you know.... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 5/24/2010 Posts: 846 Location: KENYA
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mukiha wrote:It's a convoluted group, though not as complex as Unga Group.
CFC Stanbic Holdings [CFC-SH] owns 100% of CFC Stanbic Bank [CFC-SB]; 100% of CFC Financial Services [CFC-FS]; and 53% of CFC-Insurance Holdings [CFC-IH]
CFC-IH owns 100% of Heritage Ins, 100% of CFC Investments, and 100% of CFC Life.
CFC-SB owns 24% of Stanbic Management Services EA
Heritage owns 60% of Herita Ins Co (Tanzania), which in turn owns 45% of Alliance Ins and 39% of Strategies Ins.
====
The PBT for the various entities directly under CFC-SH group were:
CFC-SB = sh1,157m
CFC-IH = sh252m
CFC-FS = sh25m
The total comes to sh1,434m; which higher than the sh1,332m recorded by the whole group.
The reason it is higher is that we have not accounted for the fact that CFC-SH owns only 53% of CFC-IH. Thus only sh133m from CFC-IH belongs to the group.
Re-doing the math gives a total of sh1,313 from the individual units. This is still sh19m short of the sh1,332m announced by the group...and I can't figure out where it came from.
Any helper in the house? I'm not an accountant, you know.... Wellfrom your figures I get Ksh1,315 m from summing up the individual units. Still less than the Sh1,332m. 
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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That is one complex group! GOD BLESS YOUR LIFE
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Rank: Elder Joined: 2/10/2007 Posts: 1,587
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mukiha wrote:It's a convoluted group, though not as complex as Unga Group.
CFC Stanbic Holdings [CFC-SH] owns 100% of CFC Stanbic Bank [CFC-SB]; 100% of CFC Financial Services [CFC-FS]; and 53% of CFC-Insurance Holdings [CFC-IH]
CFC-IH owns 100% of Heritage Ins, 100% of CFC Investments, and 100% of CFC Life.
CFC-SB owns 24% of Stanbic Management Services EA
Heritage owns 60% of Herita Ins Co (Tanzania), which in turn owns 45% of Alliance Ins and 39% of Strategies Ins.
====
The PBT for the various entities directly under CFC-SH group were:
CFC-SB = sh1,157m
CFC-IH = sh252m
CFC-FS = sh25m
The total comes to sh1,434m; which higher than the sh1,332m recorded by the whole group.
The reason it is higher is that we have not accounted for the fact that CFC-SH owns only 53% of CFC-IH. Thus only sh133m from CFC-IH belongs to the group.
Re-doing the math gives a total of sh1,313 from the individual units. This is still sh19m short of the sh1,332m announced by the group...and I can't figure out where it came from.
Any helper in the house? I'm not an accountant, you know.... How is the Unga structure?
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Standard bank SA owns 60% of the whole group...its subsidiry Discovery will own 53% of CFC-IH...Discovery is listed on the JSE as a separate entity...i think there's value in CFC-IH...i cant wait for it to list...
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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the deal wrote:...its subsidiry Discovery will own 53% of CFC-IH... you mean liberty? Life is short. Live passionately.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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@Sparkly my bad its Liberty not Discovery...ofcourse its also listed on the JSE as a separate entity...between how did you come up with 6 bob...whats the EPS?
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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the deal wrote:@Sparkly my bad its Liberty not Discovery...ofcourse its also listed on the JSE as a separate entity...between how did you come up with 6 bob...whats the EPS? @the deal NAV per share of insurance business based on the proforma financial statements (2009) is about sh 6.50. Liberty paid sh6.85 per share. I bet once listed the shares will open around sh7. Short term selling off might take it to 5 bob range. When profits start coming in, the share will soar above sh10. Life is short. Live passionately.
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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During the preparation of financial statements of a company with subsidiaries and/or associates, accounting concepts used are different. Minority interest is what is taken on the whole financial statement(holding co.) for subsidiaries and this is shown on the balance sheet thus profits are taken as a whole on the consolidatedincome statement, whereas for associates they only take their portion of the PBT. Thus while calculating the profit of the holding co. don't just take the profits of the subsidiaries and add them up but rather look at the subsidiaries financial statements as a whole. This is why holding companies always show full financial statements of their subsidiaries within their reports......financial accounting 101 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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erifloss wrote:During the preparation of financial statements of a company with subsidiaries and/or associates, accounting concepts used are different. Minority interest is what is taken on the whole financial statement(holding co.) for subsidiaries and this is shown on the balance sheet thus profits are taken as a whole on the consolidatedincome statement, whereas for associates they only take their portion of the PBT. Thus while calculating the profit of the holding co. don't just take the profits of the subsidiaries and add them up but rather look at the subsidiaries financial statements as a whole. This is why holding companies always show full financial statements of their subsidiaries within their reports......financial accounting 101 Honestly; don't understand what you mean. Can you explain using the case at hand - CFC Stanbic Holdings. I have given the percentage holdings above and the results of group companies were in the press this week. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Member Joined: 10/26/2008 Posts: 380
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mukiha wrote:erifloss wrote:During the preparation of financial statements of a company with subsidiaries and/or associates, accounting concepts used are different. Minority interest is what is taken on the whole financial statement(holding co.) for subsidiaries and this is shown on the balance sheet thus profits are taken as a whole on the consolidatedincome statement, whereas for associates they only take their portion of the PBT. Thus while calculating the profit of the holding co. don't just take the profits of the subsidiaries and add them up but rather look at the subsidiaries financial statements as a whole. This is why holding companies always show full financial statements of their subsidiaries within their reports......financial accounting 101 Honestly; don't understand what you mean. Can you explain using the case at hand - CFC Stanbic Holdings. I have given the percentage holdings above and the results of group companies were in the press this week. When consolidating income statements for CFC stanbic holdings, you will take 100% of the CFC-SB, 100% CFC-FS and 100% of CFC-IH. Then you will account for minority interest (the 47%). Where can i get the results on pdf, then we can talk figures?
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