CFC Stanbic Bank axes staff in cost cutting plan
CFC Stanbic Bank is set to lay off staff in a move aimed at reducing its operating costs.
The development comes even as the institution reported a 14 per cent jump in after tax profit for the six months ended June 30, 2019 compared to Sh3.6 billion in a similar period last year.
Currently, the group has about 1,000 employees across all its branches and subsidiaries.
Introducing data
Chief Executive Officer, Charles Mudiwa said the bank is reorganising the business and introducing data to enable it to deliver service effectively.
“Due to this, we asked employees who may be willing to retire to do so under a voluntary retirement plan,” he added during the media briefing.
In the past one week, a memo claimed to have been written to employees by the bank has been circulating in the social media. The memo asks employees who are willing to leave during the reorganisation process to apply under a retirement package plan.
Mudiwa said the bank is reorganising itself in a bid to serve its customers better. However, he added that the bank could not tell how many employees have so far applied for the retirement under the plan, because the two-week period given to them to apply for retrenchment plan has not elapsed.
During the financial year, the group’s loan book grew by 19 per cent from last year’s level of Sh136.5 billion to stand at Sh161.9 billion, while customer deposits increased by a near-identical 20 per cent to close at Sh201.6 billion, against Sh167.3 billion for the previous comparable period.
He said the growth of loan and advances was mainly driven by a combination of long term investment needs as well as working capital requirements for clients.
Speaking when he announced the results, Mudiwa said the good performance of the bank was as a result of the group living up to its purpose of “Kenya is our home, we drive her growth”.
Stanbic Bank Holdings is ranked 7th among local tier one banks, with a total asset base of Sh313.3 billion as at June 30.
