Stanbic Holdings plc

Last updated

Stanbic Holdings plc
Formerly
CfC Stanbic Holdings Limited
Public
KN: CFC
Industry Banking and Finance
Founded2008 through merger [1]
HeadquartersCfC Stanbic Center
Chiromo Road
Nairobi, Kenya
Key people
Greg Brackenridge
Group CEO
Fred N. Ojiambo
Chairman [2]
Products Commercial and Investment banking
RevenueIncrease2.svg KES: 16.20 billion (2013)
Increase2.svg KES: 5.41 billion (2013)
Total assets Increase2.svg KES: 180.51 billion (2013)
Total equity Increase2.svg KES: 32.4 billion (2013) [3]
Website Homepage

Stanbic Holdings plc, formerly known as CfC Stanbic Holdings Limited, is a financial services organization in Kenya. The Group's headquarters are located 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.

Kenya republic in East Africa

Kenya, officially the Republic of Kenya, is a country in Africa with 47 semiautonomous counties governed by elected governors. At 580,367 square kilometres (224,081 sq mi), Kenya is the world's 48th largest country by total area. With a population of more than 52.2 million people, Kenya is the 27th most populous country. Kenya's capital and largest city is Nairobi while its oldest city and first capital is the coastal city of Mombasa. Kisumu City is the third largest city and also an inland port on Lake Victoria. Other important urban centres include Nakuru and Eldoret.

Nairobi Capital city in Nairobi County, Kenya

Nairobi is the capital and the largest city of Kenya. The name comes from the Maasai phrase Enkare Nairobi, which translates to "cool water", a reference to the Nairobi River which flows through the city. The city proper had a population of 3,138,369 in the 2009 census, while the metropolitan area has a population of 6,547,547. The city is popularly referred to as the Green City in the Sun.

South Sudan Country in Africa

South Sudan, officially known as the Republic of South Sudan, is a landlocked country in East-Central Africa. It gained independence from the Republic of the Sudan in 2011, making it the most recent sovereign state with widespread recognition. Its capital and largest city is Juba.

Contents

Overview

The institution serves the banking needs of large and small business customers as well as individuals. Stanbic Holdings plc is a large financial services organization in Kenya, with an asset base valued at over KES: 180.51 billion (USD:1.78 billion), as of December 2013. At that time, shareholder's equity was valued at about KES:32.43 billion (USD:319.696 million). [4]

History

CfC Stanbic Holdings, as it exists today, is the result of a through merger between Stanbic Bank Kenya Limited and CfC Bank Limited.

Before the merger

Stanbic Bank Kenya Limited

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]

Ottoman Bank former bank in Turkey

The Ottoman Bank, formerly the Imperial Ottoman Bank, was a bank founded in 1856 in the Galata business section of Istanbul, the capital of the Ottoman Empire, as a joint venture between British interests, the Banque de Paris et des Pays-Bas of France, and the Ottoman government.

Ewart Grogan British explorer and politician

Ewart Scott Grogan (1874–1967) was an English explorer, politician, and entrepreneur. He was the first person in recorded history to walk the length of Africa, from Cape Town to Cairo.

Grindlays Bank

The historic overseas bank was established in London in 1828 as Leslie & Grindlay, agents and bankers to the British army and business community in India. Banking operations expanded to include the Indian subcontinent, the Middle East and elements of Africa and Southeast Asia. It was styled Grindlay, Christian & Matthews in 1839, Grindlay & Co from 1843, Grindlay & Co Ltd from 1924 and Grindlays Bank Ltd in 1947 until its merger with the National Bank of India.

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.

Stanbic Bank is a division of Standard Bank, a member of the Standard Bank Group, based in Johannesburg, South Africa.

The Standard Bank of South Africa Limited is a South African financial services groups and is Africa’s biggest lender by assets. The company's corporate headquarters, Standard Bank Centre, is situated in Simmonds Street, Johannesburg.

Government of Kenya

The Government of the Republic of Kenya (GoK) is the national government of the republic of Kenya which is composed of 47 Counties, each county with its own semi-autonomous governments. The national government is composed of three arms: the legislature, the executive and the judiciary. Each arm is independent of the other and their individual roles are set by the Constitution of Kenya. The full name of the country is the "Republic of Kenya". Its official Swahili name is 'Jamhuri ya Kenya'. Other terms such as GoK, GK and Serikali are popularly used to refer to the Kenyan government.

CfC Bank Limited

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]

Central Bank of Kenya central bank

The Central Bank of Kenya (CBK) is the monetary authority of Kenya. Its head office is located in Nairobi. CBK was founded in 1966 after the dissolution of East African Currency Board (EACB). Dr. Patrick Ngugi Njoroge is current Governor of CBK and Sheila M’Mbijjewe is the Deputy Governor.

Charles Njonjo former Attorney General of Kenya

Charles Mugane Njonjo is a former Attorney General of Kenya, and Minister of Constitutional Affairs. Charles Njonjo is also popularly referred to as "The Duke of Kabeteshire".

Liberty Kenya Holdings Limited is a major East African insurer and subsidiary of Liberty Holdings Limited with headquarters in Johannesburg, South Africa.

Merger

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

  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 (CSHL).

The merger process was completed by 1 June 2008. [17]

The Post merger structure was a follows:

CfC Stanbic Holdings Post merger structure CfC Stanbic Holdings Post merger structure.jpg
CfC Stanbic Holdings Post merger structure

Post-merger

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 [18] as a step of aligning the group to the Liberty group corporate brand. [19]

Expansion

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. [20]

In August 2016, the group dropped the 'CfC' brand and was renamed Stanbic Holdings plc. [21]

Member companies

The companies that comprise Stanbic Holdings include, but are not limited to, the following: [22]

Ownership

The stock of Stanbic Holdings listed on the NSE, where it trades under the symbol: CFC. [23]

Stanbic Holdings Limited Stock Ownership
RankName of OwnerPercentage Ownership
1 Stanbic Africa Holdings 60.00
2Others40.00
Total100.00

Governance

The Chairman of the Board of Directors of Stanbic Holdings, is Fred N. Ojiambo. Greg Brackenridge serves as the Chief Executive Officer.

See also

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References

  1. ↑ D&BIB, . (17 January 2013). "CfC Stanbic Holdings Limited: Brief Note 17th January 2013" (PDF). Dyer & Blair Investment Bank (D&BIB). Retrieved 23 November 2014.
  2. ↑ CFC, . "CfC Stanbic Holdings Leadership". CfC Stanbic Bank (CFC). Retrieved 23 November 2014.
  3. ↑ CFC, . (28 February 2014). "CfC Stanbic Holdings Full Year Results 2013" (PDF). CfC Stanbic Bank Holdings (CFC). Retrieved 23 November 2014.
  4. ↑ CFC, . (28 February 2014). "CfC Stanbic Holdings Full Year Results 2013" (PDF). CfC Stanbic Bank Holdings (CFC). 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. 1 2 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. The Development of Corporate Capitalism in Kenya, 1918-77. Los Angeles: University of California Press. p. 228. ISBN   0-520-03988-2.
  9. ↑ SBSA, . (16 November 2007). "Circular To Standard Bank Group Shareholders Relating To ICBC" (PDF). Standard Bank of South Africa (SBSA). Retrieved 23 November 2014.
  10. ↑ CFC, . (10 August 2012). "Standard Bank Investment Corporation (Stanbic) Acquired ANZ Grindlays Bank In 1992" (PDF). CfC Stanbic Holdings Limited (CFC), Page 32. Retrieved 23 November 2014.
  11. ↑ ERKIJ, . "Kenya Business: Capital Markets Overview". Embassy of the Republic of Kenya In Japan (ERKIJ). Retrieved 23 November 2014.
  12. ↑ CBK, . "Central Bank of Kenya: Non-Bank Financial Institutions Conversions to Commercial Banks From 1994 To 2008". Central Bank of Kenya (CBK). 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. ↑ LKHL, . "The Heritage of Liberty Kenya Holdings Limited". Liberty Kenya Holdings Limited (LKHL). Retrieved 23 November 2014.
  15. ↑ CMAK, . "CfC Bank Annual Report 2007" (PDF). Capital Markets Authority (Kenya) (CMAK). Retrieved 23 November 2014.
  16. ↑ SBSA, . "CfC Stanbic Bank 2009 Annual Report" (PDF). Standard Bank of South Africa (SBSA). Retrieved 23 November 2014.
  17. ↑ Kanina, Wangui (5 June 2008). "Kenya's CfC, Stanbic Banks Announce Start of Merger". Reuters . Retrieved 23 November 2014.
  18. ↑ CfC Holdings shareholders approve name change
  19. ↑ Standard Bank, Press Release (7 April 2008). "Standard Bank Gets Regulatory Approval For CfC Acquisition". Standard Bank of South Africa Quoted by Bloomberg News . Retrieved 23 November 2014.
  20. ↑ Star Reporter, . (13 June 2012). "CfC Stanbic Bank Enters South Sudan". The Star (Kenya) . Retrieved 23 November 2014.
  21. ↑ "CfC Stanbic shareholders approve name change". Stanbic Holdings. 5 August 2016. Retrieved 27 October 2016.
  22. ↑ CFC, . (10 August 2012). "CfC Stanbic Holdings Limited Information Memorandum, Page 71" (PDF). CfC Stanbic Bank (CFC). Retrieved 23 November 2014.
  23. ↑ CFC, . (2012). "CfC Stanbic Holdings Limited Annual Report 2011, Page 8" (PDF). CfC Stanbic Holdings Limited. Retrieved 23 November 2014.
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