Nairobi, Kenya, April 24th 2014 – Family Bank has done it once again. The bank has more than doubled its profits for the first quarter ending 31st March 2014 – posting an impressive 106% growth to Ksh 641Million compared to Ksh 311Million in a similar period last year.
It comes barely a month after the bank – which for the first time broke the billion shilling ceiling – posted a 108% growth jump to Ksh 1.78billion compared to Ksh 868million realized the previous year. It was the best ever performance since its conversion to a bank six years ago. Over the same period it has more than doubled its branch network from 35 to 73.
At 106% profit growth, the bank continues to grow faster than all the listed banks.
The twofold growth in earnings is attributed to increased lending. The bank’s loan book expanded 9% to Ksh 30.4billion as at end of March 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 strong support by customers, partners and institutional investors continues to bolster the bank’s performance.
“Our loan book continues to expand signifying the strong support by all our cherished customers, partners and investors – a stamp of approval in the direction we are going. We are also guided by our ambitious strategy of becoming a tier one bank in the next three years’’, said Mr. Munyiri
He observed that leveraging the universal banking model to position the company as a one-stop financial services shop, well planned expansion of our business footprint, product roll-out and continued investment in ICT had bolstered the bank’s performance.
“We remain confident of realizing premium returns to shareholders in future as we position our business to optimize on our universal banking model. The focus on the retail mass market and SME sector will give us a strong competitive position in all sectors of the economy”, added Mr. Munyiri.
Tomorrow the bank’s directors will seek approval during the AGM for the recommended dividend payout of Ksh0.40 per share – that translates to Ksh 222.8million – which is double what was given out to shareholders in 2012.
Notes to Editors
About Family Bank
Family Bank converted into a fully-fledged bank in May 2007. It started as a building society under the name Family Finance Building Society in October 1984 in Kenya and commenced operations in the early 1985. From only one branch in 1985, Family Bank has grown over time and currently enjoys a network of 73 branches countrywide. Family Bank was the first bank in Kenya to introduce paperless banking through smart card technology that enables customers to transact without having to fill in deposit or withdrawal slips