By Charles Gitonga
Family bank has announced a 33 percent growth in after tax profits of Ksh.1.8 billion for the year 2014. This is the second year in a row that the middle tier lender is exceeding the one billion net profit mark, following a Ksh.1.2 billion posted in 2013.
The 2014 full year growth was supported by a 21 per cent jump in net interest income to Ksh.5.4 billion, and a 35 per cent growth in revenue to Ksh.9.7 billion.
Its loan book grew by 36 per cent to Ksh.37.9 billion up from Ksh.27.9 recorded in the previous year. “Key drivers of this performance has been sustainable growth in loan book, aggressive deposit mobilization, branch expansion and increase in revenues from alternative business channels,” said Peter Munyiri, Family Bank’s Managing Director.
The bank also grew its customer reach to 1.6 million from 1.3 million in 2013 thereby pushing deposits by 36 per cent to Ksh.47.2 billion. “We have also significantly increased product and services utilization per customer through cross selling and enhanced customer experience,” said Wilfred Kiboro, the bank’s Chairman.
Family bank now plans to leverage on its virtual bank accounts comprising of internet and mobile banking to drive customer base to 3 million by the end of 2016.
In December 2014, the bank’s rights issue raised to Ksh.3 billion which was key towards achieving the required core capital base as entrenched in the new prudential guidelines issued by the Central Bank. The lender is also utilizing part of that capital towards expansion of its brick and mortar network.
Family Bank is also planning to open 8 new branches across the country this year, adding to the 82 that already exist. In 2014, the bank opened 7 branches in Kasarani, Kajiado, Laptrust, Bomet, Malindi, Litein and Mwea.
It will also be investing Ksh.1billion on expansion if its ICT infrastructure, which it says has been stretched by growth over the years.
The cash call which was fully subscribed gave a 78 per cent boost to the shareholders’ funds to Ksh.10.6 billion up from Ksh.5.97 billion. The bank will also for the first time pay dividends of Ksh.0.50 per share to its shareholders.