Family Bank grows half year Pre-tax profits by 87%

Family Bank grows half year Pre-tax profits by 87%

posted on August 5, 2014

Nairobi, Kenya, August 4th 2014 – Family Bank is on an unprecedented growth trajectory. The bank has nearly doubled its profits for the first Half year ending 30th June 2014 – posting an impressive 87% growth to Ksh 1.31Billion compared to Ksh 703Million in a similar period last year.

It comes barely a year after the bank – for the first time broke the billion shilling ceiling – when it posted a 108% growth. The bank has been on a growth trajectory hitherto witnessed since conversion to a bank six years ago. Over the same period it has more than doubled its branch network from 35 to 73.

At 87% profit growth, the bank continues to grow faster than all the listed banks.

The nearly twofold growth in earnings is attributed to increase lending. The bank’s loan book expanded 18% to Ksh 33Billion as at end of June 2014 from Ksh 27.9billion as at December 2013. This was driven by increased lending to SMEs and personal consumers.

The Managing Director & Chief Executive Officer – Mr. Peter Munyiri says the county banking strategy to romp in more customers has also bolstered the bank’s performance.

“We are leveraging the enormous opportunities afforded by the devolved units guided by our ambitious strategy of becoming a tier one bank. Equally our loan book continues to expand signifying the strong support by our customers countrywide.’’, said Mr. Munyiri

The mid-tier lender has embarked on an expansion binge – riding on the emerging business opportunities in the counties – as it races to grow shareholders’ value and get into the top tier space.

“We opened our 76th branch at City Hall Annex and will be relocating the Dagoretti branch to a new site along Ngong Road. We have lined up at least 10 new branches targeting increased business in the devolved units. New branches in Ukunda and Malindi will be opened for business within two months’’, says Mr. Munyiri. He adds that the expansion is strategic guided by the county banking roadmap aimed at optimizing the devolved governance structure.