Nairobi, Kenya, May 15th 2015 – Family Bank shareholders will get their highest dividends ever since conversion into a bank eight years ago.
The lender’s shareholders will now receive Ksh 622.6million – 279% more and nearly triple what they received in 2013. Furthermore, the generous dividend payout is 7 times more than what they got in 2007 when the company became a fully-fledged bank – which amounted to Ksh 86.5million. In 2013, the lender paid total dividends of Ksh 222.8million – in addition to issuing one – for –one bonus shares.
The Bank’s Chairman – Mr. Wilfred Kiboro announced the directors had proposed to pay a dividend of 50 cents per share of par value of Ksh 1 each. The shareholders gave their nod during the bank’s Annual General Meeting held today at the Kenyatta International Convention Centre.
“The generous dividend payment comes on the backdrop of robust results we realized. We registered a 49% rise in pre-tax profit of Ksh 2.62billion in 2014. We are committed to delivering value to our shareholders and the trend over the years validates our strategy and universal banking model’, said Mr. Kiboro.
The bank has also reported one of the fastest growths in pre-tax profit this quarter. It attained a 20.9% jump in the first quarter performance – raking Ksh 775Million compared to Ksh 645Million realized in a similar period last year.
Managing Director & Chief Executive Officer – Mr. Peter Munyiri announced that the bank was fast approaching the tier one status leveraging on areas of high growth potential with focus on retail mass market, SME and local corporates.
The bank concluded a successful capital raising drive to shore up its core capital with strong support from shareholders and institutional investors who pumped in Ksh 3Billion. The capital injection has increased the lender’s core capital to total risk weighted assets to 20.3% against the statutory requirement 14.5%.
The bank had 557million issued and fully paid up shares as at December 2013 and the cash call which involved a share split of 1 to1 means it now 1.2billion issued shares. The bank’s share price – trading over the counter – has risen to an all- time high of Ksh 30 per share – a 20% jump – post rights issue. This is compared to the Ksh25 price at the time of the rights issue.
The bank has opened four of the 10 branches lined up this year – Migori, Embakasi, Thika Makongeni and Bamburi in Mombasa to cater for its growing retail and SME clients. Another outlet in Chuka, Meru County will be opened in a weeks’ time. Last year the bank opened 7 branches including Kasarani, Kajiado, Laptrust, Bomet, Malindi, Litein, and Mwea.
The lender has achieved a five-fold increase in its profits and tripled its assets in the past 5 years – currently at Ksh 71Billion.In only 8 years since conversion – the bank has rocketed into the stratosphere of the country’s banking peers – entirely on the strength of pursuing its renewed operating model.