Family Bank posts a remarkable 30% growth in half year profits; grows its branch network to 85 as it eyes tier one status
Nairobi, Kenya, August 4th 2015 – Family Bank has posted impressive half-year profits buoyed by aggressive deposits growth; increased lending and diversification in customer and product mix.
The bank – has posted nearly 30% rise in its pre-tax profit for the half year – raking in Ksh 1.76billion – up from Ksh 1.3billion over a similar period in 2014.
The lender also recorded a significant jump in its loan book from Ksh 37.9Billion to Ksh 46.3Billion – a 22% increase. This was driven by increased lending to SMEs and personal consumers. Total assets grew by 21% from Ksh 61.8Billion to Ksh 74.7Billion as at end of June 2015.
The Managing Director & Chief Executive Officer – Mr. Peter Munyiri says leveraging the emerging opportunities in the devolved units guided by the bank’s ambitious strategy of becoming a tier one bank had bolstered the bank’s performance.
“Key drivers of this remarkable performance has been sustainable growth in loan book, aggressive deposit mobilization, branch expansion and increase in revenues from Alternative Business Channels – internet, mobile banking, among others. The robust performance culture embraced by staff has also made this accomplishment possible”.
The bank has achieved a five-fold increase in its profits and almost quadrupled its assets in the past 5 years – currently at nearly 75Billion.In only 7 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..
The bank has been 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. For the past six months – 5 new branches have been opened – including Migori, Chuka, Utawala, Thika Makongeni and Bamburi. Another five more outlets will be rolled out by year end.
“We have also increased significantly product and services utilization per customer through cross selling and enhanced customer experience. Our Customer numbers have grown tremendously over the period to over 1.6Milllion customers, added Mr. Munyiri.
The bank’s cash call towards end of 2014 received strong support from shareholders and institutional investors who pumped in more than Ksh 3Billion. That coupled with increased retained earnings has boosted the shareholders’ funds by 5% to Ksh 11.1Billion from Ksh 10.6billion as at end of December 2014in 2013.
The bank is also implementing a new business operating model which is gradually positioning the bank as a one stop-shop providing products and services for all the profitable market segments.” We are also creating capacity for investment in areas of high growth potential with focus on the retail mass market, SME and local corporates to give us a strong competitive position in all sectors of the economy”, added Mr. Munyiri.