CFC Stanbic Bank, subsidiary of CFC Stanbic Holdings, has announced 3Q13 results, posting a 52.4% y/y rise in PAT to KES 3.3bn driven by improved cost efficiency, growth in net interest income and non-interest income. The cost to income ratio improved to 54.3% from 59.0% in 3Q12 driven by stability in operating expenses (+5.3% y/y to KES 6.3bn net of loan loss provisions), as operating income grew 14.3% y/y to KES 11.6bn. Net interest income grew 15.0% y/y to KES 5.5bn driven by a faster decline in interest expenses (-49.9% y/y to KES 2.1bn) than that in interest income (-15.5% y/y to KES 7.7bn). Customer deposit expenses declined 52.1% y/y to KES 1.7bn even as total deposits grew 12.7% y/y to KES 96.6bn. Interest from loans and advances declined 28.3% y/y to KES 5.6bn and the loan book expanded 7.5% y/y to KES 66.9bn. Both interest income and expenses declined on the back of lower average interest rates in 2013 compared to 2012. Non-interest income grew 13.6% y/y to KES 6.1bn driven by higher forex trading income (+49.8% y/y to KES 2.4bn) and “Other” fees and commissions (+41.9% y/y to KES 1.4bn). (Source; Company, Kestrel Research)

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Thanks for the correction.

Impressive results.

Impressive balance sheet growth especially the double digit growth in customer deposits...the bank is gaining market share especially at the retail end....Q3 would have been better but the uptick in yields in the money markets & stable Shilling affected non interest income. Looking forward to a better Q4 and FY.