CfC Stanbic Holdings shares rose 6.04 per cent on Tuesday, after the company reported a double digit increase in profit after tax for the period ended December last year.

CfC Stanbic Holdings is the parent company of CfC Stanbic Bank, the sixth largest bank according to the Central Bank of Kenya, and CfC Stanbic Financial Services which is an investment bank.

During Tuesday’s trading the stock hit a high of Ksh49 ($0.57) and a low of Ksh48 ($0.558) before closing at Ksh48.25 ($0.561) compared to Ksh45.50 ($0.528), its close last Friday.

At at the close of trading Tuesday, the CfC Stanbic Holdings shares had gained 14.88 per cent when compared to Ksh42 ($0.49), the closing price as at the end of 2012.

The company said that its group profit after tax rose by 63.67 per cent to Ksh3 billion ($34.98 million) as at December 2012 from Ksh1.83 billion ($21.61 million) in December 2011.

Total comprehensive income which includes items such as foreign exchange differences on the translation of foreign operations, gains and losses on the fair value valuation of available for sale financial assets such as bonds and deferred tax charges, and credits on the revaluation of these financial assets however jumped 17 times.

The holding company said that total comprehensive income rose to Ksh4.16 billion ($48.38 million) as at December 2012 from Ksh242 million ($2.84 million) similar period the previous year.

Vimal Parmar, head of equity research and trading at Burbidge Capital said that growth in profits was driven by increases in non-interest income as interest expenses ate into the interest income while loans and deposits remained flat.

“The jump in the share price may be because investors reacted positively to the growth in profits of the company. Its price to earnings and price to book ratios are also low,” said Mr Parmar.

CfC Stanbic Bank saw its profit after tax jump by 61.7 per cent to Ksh3.1 billion ($36.14 million) from Ksh1.92 billion ($22.6 million) on marginal growth of net interest income and a 58.98 per cent increase in non-interest income.

Non-interest income rose due to a 56 per cent increase in other fees and commissions which stood at Ksh2.01 billion ($23.42 million), a 70.78 per cent increase in foreign exchange trading income which stood at Ksh3.01 billion ($35.06 million) and other income which more than doubled to Ksh2.06 billion ($23.98 million).

The bank disclosed a dividend per share for the full year at Ksh1.64 ($0.02) but CfC Stanbic Holdings paid an interim dividend of Ksh0.73 ($0.008) to shareholders who were on the register in September last year during its rights issue.