Family Bank hits Ksh 2Billion pre-tax profits in only 9 months as its universal banking model bear fruits

Nairobi, Kenya, November 7, 2014 – Family Bank has recorded sterling performance over the past 9 months exceeding the full year 2013 results – maintaining its rapid growth witnessed over the past 3 years.

The bank posted a Profit before tax growth of Ksh 2Billion as at 30th September 2014 which is an impressive growth of 66percent compared with Ksh 1.2Billion recorded the same period last year. The performance is also more than 100percent of the full year 2013. At that profit growth, the bank continues to grow faster than all the listed banks.

The growth has been buoyed by a significant jump in net interest income to Ksh 3.9Billion from Ksh 3.1Billion as a result of an expanded loan book which grew by 28percent to nearly Ksh 36Billion.

The CEO and Managing Director – Mr. Peter Munyiri said the bank was leveraging on the universal banking model which aims at gradually positioning the bank as a one stop-shop providing retail and consumer products, SME, agribusiness, corporate banking and Trade Finance, Insurance products.

“Our growth momentum vindicates the well planned expansion of our business footprint, product rollout, diversification of the talent pool, investment in Information and communications technology’’, said Mr. Munyiri.

The bank which has been on an aggressive customer growth campaign continues to reap huge gains. Its customer deposits grew by 26percent to Ksh 43.5Billion from Ksh 34.6Billion by close of 2013. Shareholders’ funds increased to Ksh7.2Billion from nearly 6Billion – a 21percent surge mainly due to increase in retained earnings.

The lender has been on a growth trajectory hitherto recorded since conversion to a bank seven years ago. The bank has more than doubled its footprint to 78 from 35 with two new branches set to open before close of the year.

The bank which aims to play in the top tier space by 2016 – is seeking to raise Ksh 3.5Billion in new capital to fund its expansion, enhance ICT infrastructure and meet new prudential guidelines on capital under which CBK requires banks to increase their capital ratios to 14.5 per cent by January 2015. Last September, shareholders approved the bank’s rights issue in which it will be offering 1 new share for every 9 held to its existing owners.

“We are angling for a larger share of the lucrative SME and corporate lending markets. This cash call will certainly open up more opportunities for the bank by increasing our single borrower limit to over Ksh 2.75Billion, thus enabling the bank to play in the big ticket business market.’’

This year the bank has opened seven new branches in Kajiado, Bomet, Laptrust, Kasarani, City Hall, Malindi and Ukunda – a move that has pushed its total branch network to 78. It is also expanding its agency banking model, targeting a total of 2000 agents by end of the year. Currently the bank has more than 1500 active agents.