CFC Stanbic has posted a net profit gain of 24.1 per cent. The bank announced that its net profit for the nine months ended September this year stood at sh. 3.4 billion compared to Sh. 2.8 billion recorded in the same period the previous year.

The profit growth was fueled by an increase in interest income from loans and advances and government securities.

Net earnings grew to Sh. 8.3 billion from Sh. 6.8 billion the same period in 2015, “due to improved margins”

The bank’s loan loss however increased to Sh. 1.2 billion up from Sh. 569.9 million last year.

“Increase in loan loss provision reflects a challenging operating environment faced by some of our clients which has necessitated a prudent provisioning approach,” the bank said in a statement yesterday.

Insider loans and advances however went down to Sh. 4.6billion from Sh. 5.3billion same period last year, the bank’s unaudited results for the period ended September 30 shows.

The bank reported growth in its balance sheet with customer deposits growing 23 per cent to Sh. 139 billion up from Sh. 113 billion.

The bank noted a significant negative impact on its business in South Sudan.

“The challenging economic environment in South Sudan continues to impact the performance of the branch.The economy in south sudan is now considered hyperinflationary,” CEO Philip Odera said.

The bank made a full year profit of Sh. 4.6 billion in 2015 compared to Sh. 5.4 billion, which was blamed on decreased transactional income from its South Sudan subsidiary.