Wikipedia

Stanbic Holdings Plc

Stanbic Holdings Plc, formerly known as CfC Stanbic Holdings Limited, is a Kenyan financial services organization with headquarters in Nairobi, Kenya, with subsidiaries in Kenya and South Sudan. Stanbic Holdings is a member of the Standard Bank Group, a financial services giant based in South Africa. The institution is licensed and governed by the Central Bank of Kenya, the national banking regulator.

Stanbic Holdings Plc
FormerlyCfC Stanbic Holdings Limited
Company typePublic
KN: CFC
IndustryFinancial services
Founded2008; 16 years ago (2008) through merger [1]
Headquarters
Nairobi
,
Kenya
Key people
Patrick M Mweheire (CEO), Kitili Mbathi (Chairman)[2]
ProductsCommercial and Investment banking
RevenueIncrease KSh 16.20 billion (2013)
Increase KSh 5.41 billion (2013)
Total assetsIncrease KSh 180.51 billion (2013)
Total equityIncrease KSh 32.4 billion (2013) [3]
ParentStandard Bank
Websitewww.stanbicbank.co.ke

The institution serves the banking needs of large and small business customers as well as individuals. As of 2013, Stanbic Holdings Plc was a large financial services organization in Kenya, with an assets valued at over KSh 180.51 billion (US$1.78 billion). At that time, shareholder's equity was valued at about KSh 32.43 billion (US$319.696 million).[4]

History

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CfC Stanbic Holdings is the result of a merger between Stanbic Bank Kenya Limited and CfC Bank Limited.

Before the merger

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Stanbic Bank Kenya Limited

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Stanbic Bank Kenya Limited (SBK) was established in 1958 when Ottoman Bank incorporated its first subsidiary in the region.[5] This was after acquiring Torr's Hotel from Ewart Grogan and converting it to its head office.[6] In 1969, Ottoman Bank sold its Kenyan operations to National and Grindlays Bank (NGB Kenya) making its exit from the East African market.[7]

In 1970, the Kenya government and NGB entered into an agreement that saw the government takeover full control of NGB Kenya with the exception of the two branches inherited from Ottoman Bank, one in Nairobi while the other in Mombasa. NGB Kenya was then rebranded to Kenya Commercial Bank while the two separated branches became Grindlays Bank International (Kenya) Limited (GBI).[8] Shareholding in GBI was 60 per cent by NGB London and 40 per cent by the government of Kenya.[6]

In 1992, Standard Bank Investment Corporation (Stanbic Bank), a subsidiary of Standard Bank, acquired GBI by virtue of it being part of ANZ Grindlays Bank's African subsidiaries.[9] The bank's name was changed from Grindlays Bank International (Kenya) Limited to Stanbic Bank Kenya Limited in 1993.[10] At the point of the merger, the bank was 96.31% owned by Standard Bank through Stanbic Africa Holdings Limited (SAHL) and the balance of 3.69% held by the Government of Kenya.

CfC Bank Limited

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CFC Bank Limited (CFC Bank) was incorporated in 1955 as Credit Finance Corporation, a finance institution, and was listed on the Nairobi Stock Exchange.[11] Due to changing trends, regulatory requirements in the Kenyan banking industry and the need to meet growing customer requirements, Credit Finance Corporation obtained a commercial banking license from the Central Bank of Kenya in March 1995 and changed its name to CfC Bank Limited.[12] The bank was associated with Moi Era individuals such as Former Attorney-General Charles Njonjo, Jeremiah Kiereini and Bruce Mackenzie who held shares in the company through African Liaison and Consultants Services Limited.[13] In 2004, CfC Bank entered into the insurance industry through the acquisition of American Life Insurance Company (Kenya) Limited, a subsidiary of AIG and changed its name to CfC Life Assurance Company Limited (now part of Liberty Kenya Holdings Limited).[14]

Merger 2007

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On 12 November 2007, the shareholders of CFC Bank at an Extraordinary General Meeting approved the merger of CFC Bank and Stanbic Bank.[15] This was the largest banking merger in Kenya's history.[16] The Merger was executed in three interlinked phases:[17]

  1. CfC Bank acquired 100% of SBK through the allotment new fully paid shares of CfC to SBK's shareholders.
  2. On completion of the allotment of shares in phase one, SAHL acquired an additional CfC shares from existing shareholders. SAHL's shareholding in CfC was increased to 60% of the revised share capital of CfC.
  3. On completion of phases one and two above, there was an internal reorganisation, effectively to transfer CfC's banking business to SBK to form a merged single banking operation. SBK was then renamed CfC Stanbic Bank Limited and retained its banking licence. The banking licence for CfC was returned to the Central Bank of Kenya to allow it to operate purely as a listed non-operating holding company, renamed CfC Stanbic Holdings Limited.

The merger process was completed by 1 June 2008.[18]

The Post merger structure was as follows:

 
CfC Stanbic Holdings Post merger structure

Post-merger

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After the Merger, the management engaged in restructuring of operation. In 2009, CfC Stanbic Holdings began restructuring its group corporate structure including the de-merger of the Insurance Businesses into CfC Insurance Holdings Limited. Liberty Holdings Limited came on board as strategic investor in CfC Insurance Holdings Limited. The restructure involved consolidating all its insurance businesses to CfC Insurance Holdings Limited and later a de-merger of the insurance arm. This was completed in April 2011 with the listing of CfC Insurance Holdings Limited on the NSE through introduction. These shares were distributed to CfC Stanbic Holdings shareholders as a form of dividend. The Banking and Financial Services Businesses were retained in CfC Stanbic Holdings and remain the core business of the group. CfC Insurance Holdings Limited was later renamed Liberty Kenya Holdings Limited[19] as a step of aligning the group to the Liberty group corporate brand.[20]

Expansion

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CfC Stanbic Holdings expanded into South Sudan in 2012 making it the third Kenyan bank to venture into the new African nation, after Kenya Commercial Bank Group and Equity Group Holdings Limited.[21]

In August 2016, the group dropped the 'CfC' brand and was renamed Stanbic Holdings plc.[22]

Member companies

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The companies that comprise Stanbic Holdings include, but are not limited to, the following:[23][2]

  • Stanbic Bank Limited (100% share), a commercial bank in Kenya, serving individuals and businesses, focusing mainly on large corporations
  • SBG Securities Limited (100% share), an Investment banking service provider in Nairobi
  • Stanbic Insurance Agency Limited (100% share), a bancassurance service provider for the group.
  • CfC Stanbic Nominees Limited (100% share), holds securities purchased on behalf of customers of Stanbic Bank, under the custodial services arrangements.
  • CfC FS Nominees Limited (100% share), holds securities purchased on behalf of customers of SBG Securities Limited, under the custodial services arrangements.

Ownership

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The stock of Stanbic Holdings listed on the NSE, where it trades under the symbol: SBIC.[24][2]

Stanbic Holdings Limited Stock Ownership
Rank Name of Owner Percentage Ownership
1 Stanbic Africa Holdings 74.92
2 Permanent Secretary to the Treasury of Kenya 1.10
3 Others 23.98
Total 100.00

Governance

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The chairman of the Board of Directors of Stanbic Holdings, is Kitili Mbathi. Patrick M Mweheire serves as the chief executive officer.[2]

See also

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References

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  1. ^ "CfC Stanbic Holdings Limited: Brief Note 17th January 2013" (PDF). Dyer & Blair Investment Bank. 17 January 2013. Retrieved 23 November 2014.
  2. ^ a b c d "Stanbic Holdings Plc - Annual Integrated Report 2022" (PDF). 31 December 2022. Retrieved 24 February 2024.
  3. ^ "CfC Stanbic Holdings Full Year Results 2013" (PDF). CfC Stanbic Bank Holdings. 28 February 2014. Archived from the original (PDF) on 1 August 2014. Retrieved 23 November 2014.
  4. ^ "CfC Stanbic Holdings Full Year Results 2013" (PDF). CfC Stanbic Bank Holdings. 28 February 2014. Archived from the original (PDF) on 1 August 2014. Retrieved 23 November 2014.
  5. ^ Ochieng, William Robert; Maxon, Robert M. (1992). An Economic History of Kenya. Nairobi, Kenya: East African Publishers. p. 256. ISBN 9966-46-963-X.
  6. ^ a b Kiereini, Douglas (27 August 2015). "How Torr's Hotel became today's Stanbic building". Business Daily Africa. Nation Media Group. Retrieved 29 August 2015.
  7. ^ History of the Bank Archived 13 April 2012 at the Wayback Machine, from the Ottoman Bank's Archives and Research Centre Archived 16 January 2008 at the Wayback Machine. Retrieved 2 February 2008.
  8. ^ Swainson, Nicola (1980). The Development of Corporate Capitalism in Kenya, 1918-77. Los Angeles: University of California Press. pp. 228. ISBN 0-520-03988-2.
  9. ^ "Circular To Standard Bank Group Shareholders Relating To ICBC" (PDF). Standard Bank of South Africa. 16 November 2007. Retrieved 23 November 2014.
  10. ^ "Standard Bank Investment Corporation (Stanbic) Acquired ANZ Grindlays Bank In 1992" (PDF). CfC Stanbic Holdings Limited (CFC), Page 32. 10 August 2012. Retrieved 23 November 2014.
  11. ^ "Kenya Business: Capital Markets Overview". Embassy of the Republic of Kenya In Japan. Retrieved 23 November 2014.
  12. ^ "Central Bank of Kenya: Non-Bank Financial Institutions Conversions to Commercial Banks From 1994 To 2008". Central Bank of Kenya. Retrieved 23 November 2014.
  13. ^ Juma, Victor (29 January 2014). "Moi-Era Political Elite Exit Top CfC Stanbic Shareholders Roll". Business Daily Africa (Nairobi). Retrieved 23 November 2014.
  14. ^ "The Heritage of Liberty Kenya Holdings Limited". Liberty Kenya Holdings Limited. Retrieved 23 November 2014.
  15. ^ Michira, Moses. "End of an era as CFC brand paves way for Stanbic". The Standard. Retrieved 20 January 2022.
  16. ^ "CfC Bank Annual Report 2007" (PDF). Capital Markets Authority (Kenya). Retrieved 23 November 2014.
  17. ^ "CfC Stanbic Bank 2009 Annual Report" (PDF). Standard Bank of South Africa. Retrieved 23 November 2014.
  18. ^ Kanina, Wangui (5 June 2008). "Kenya's CfC, Stanbic Banks Announce Start of Merger". Reuters. Archived from the original on 5 March 2016. Retrieved 23 November 2014.
  19. ^ CfC Holdings shareholders approve name change
  20. ^ "Standard Bank Gets Regulatory Approval For CfC Acquisition". Standard Bank of South Africa Quoted by Bloomberg News. 7 April 2008. Retrieved 23 November 2014.
  21. ^ "CfC Stanbic Bank Enters South Sudan". The Star (Kenya). 13 June 2012. Retrieved 23 November 2014.
  22. ^ "CfC Stanbic shareholders approve name change". Stanbic Holdings. 5 August 2016. Retrieved 27 October 2016.
  23. ^ "CfC Stanbic Holdings Limited Information Memorandum, Page 71" (PDF). CfC Stanbic Bank. 10 August 2012. Retrieved 23 November 2014.
  24. ^ "CfC Stanbic Holdings Limited Annual Report 2011, Page 8" (PDF). CfC Stanbic Holdings Limited. 2012. Archived from the original (PDF) on 23 September 2015. Retrieved 23 November 2014.
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