Nairobi, Kenya, October 22, 2014 – Family Bank continues with its unprecedented growth trajectory. The bank has recorded sterling performance over the last 8 months exceeding the full year 2013 results and maintaining its rapid growth witnessed over the past 3 years.
The bank posted a Profit before tax growth of Ksh 1.8billion as at 31st August 2014 which is an impressive growth of 101% of the full year 2013. Shareholders’ funds closed at Ksh 7billion while total assets closed at Ksh 52billion – realizing a return on equity of 22%.
“The bank is on the right course as we confront a rapidly changing industry guided by our universal banking strategy with the ultimate goal being to play in the top tier space by 2017”, said the CEO and Managing Director – Mr. Peter Munyiri.
The announcement was made as the board and management team pitched the bank’s third rights issue to shareholders. The offer opened on 14th October at Ksh 25 – nearly 22percent discount – on 14th October and will be closing on 28th November 2014.
The lender has been on an unprecedented growth momentum since conversion to a bank seven years ago. The bank has more than doubled its footprint to 78 branches from 34 since its conversion.
This year the bank has opened seven new branches among them Kajiado, Bomet, Laptrust, Kasarani, City Hall, Malindi and Ukunda – a move that has pushed its total branch network to 78 with two additional branches set to open before close of the year.
The bank is seeking to raise Ksh 3.1Billion 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.The Bank’s shareholders approved the ongoing rights issue a month ago through which it is offering 1 new share for every 9 held by 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.’’
The bank aims to become a top-tier lender by 2016 and sees the increased funding as key to supporting its growth targets.
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.