Friday, April 27, 2007

Stanbic apples & oranges

Standard Bank (of South Africa) operates as Stanbic in other parts of Africa.

Here’s a snapshot comparison of the 2006 financial results of Stanbic Kenya and Stanbic Uganda.

Stanbic Kenya is unlisted while several Kenyans participated in the 2006 Stanbic Uganda IPO which was relatively cheap owing to the exchange rate difference (25:1) between Kenya and Uganda. The Stanbic (UG) IPO was partly blamed for the performance of the Mumias (Kenya) rights issue whose uptake was judged to be average.

Merger talks between Stanbic (K) and CFC which is another locally listed Kenyan bank are at an advanced stage. So how do the bank’s compare?

Approximate figures in US$

Rank
Uganda Stanbic (1 in Uganda)
Kenya Stanbic (9 in Kenya)
CFC (10)

Assets
Uganda Stanbic $725 million
Kenya Stanbic 378 million
CFC 371 million

Deposits
Uganda Stanbic $513 million
Kenya Stanbic 289 million
CFC 271 million

Loans
Uganda Stanbic $195 million
Kenya Stanbic 166 million
CFC 220 million

Pre-tax Profits
Uganda Stanbic $32.3 million
Kenya Stanbic 13.4 million
CFC 9.9 million

7 comments:

MainaT said...

Banks,u r busy fella today ain't ya?

Anyway, looking at your numbers, CFC shareholders are not getting the returns that CFC's balance sheet should be giving. So hopefully this as well as the bigger bank will what the merger will bring to the table.

coldtusker said...

After the CFC/Stanbic merger... it seems the 2 will be applanges...

Both will be listed, the deposits, assets, etc will be almost the same...

And CFC/Stanbic will jump up in the rankings though a far cry from being #1 since Kenya's banking industry is much larger...

kudrinketh said...

The merger will make them the 5th largest going by Banks' list,and closing in on Cooperative.

I think they have a chance of making a run for the top 3, about time Barclays,Stanchart and KCB faced some serious competition.

bankelele said...

MainaT: some days there's more than others. Seems like CFC not there yet, but they have been expanding their broking and insurance operations over the last few years. Maybe some fat still in the system

coldtusker: Applanges are what colour? - CFC green or Stanbic Blue or Appleane Yellow (combine primary colours I remember from Art & Craft class!)

kudrinketh: They may have the assets (like CBA) but withouth the branch network of the bigger banks you mentioned, they will still mbe a middle tier corporate bank

coldtusker said...

CFC will be renamed Stanbic... This is not a merger but a takeover for all practical purposes...

So Blue it is!

Anonymous said...

The CBK website lists Stanbic as part government owned. Is this accurate? Is the government going to reduce its stake at the listing we are assuming is in the works?

Banks,
Funniest thing, we had an article titled apples and oranges up at almost the same time as you did.

emmo
kenyaimagine.com

DK said...

I agree woth coldtusker on the fact that renaming CFC Stanbik is a complete takeover.. I highly doubt it being a merger

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