Family Bank profit soars 122pc to Sh1.2bn

March 26, 2014
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Family Bank Chief Executive Officer Peter Munyiri says the performance is attributed to decrease in interest expenses as a result of capital injection by the shareholders and intensified debt collection efforts/FILE
Family Bank Chief Executive Officer Peter Munyiri says the performance is attributed to decrease in interest expenses as a result of capital injection by the shareholders and intensified debt collection efforts/FILE
NAIROBI, Kenya Mar 26 – Family Bank has posted a 122 percent increase in net profit for the year 2013 to Sh1.2 billion from Sh561 million recorded in 2012.

Total assets grew by 40 percent to Sh43.5 billion from Sh31 billion recorded from the previous year while number of customers grew from 1.2 million in 2012 to 1.3 million in 2013.

Family Bank Chief Executive Officer Peter Munyiri says the performance is attributed to decrease in interest expenses as a result of capital injection by the shareholders and intensified debt collection efforts.

“The growth is attributed to the shareholders funding through the rights issue at the beginning of last year which resulted in significant decrease in interest expenses , the retained earnings and strong support from customers, our strategic partners and institutional investors that saw the significant rise in our deposits and our loan book,” he said.

Customer Deposits grew from Sh25 billion in 2012 to Sh34.6 billion in 2013 representing a 41 percent increase while loans and advances grew by 56 percent from Sh17.9 billion to Sh27.9 billion in 2013.

Total shareholders’ funds grew by 22 percent from Sh4.8 billion in 2012 to Sh5.97 billion in 2013.

With 72 branches, the bank is set to open 12 more branches in the country in 2014.

The bank is also seeking to leverage on the devolved system to rope in more customers.

On his part, Family Bank Chairman Wilfred Kiboro called on the government to deal with the rising insecurity in the country pointing out that it will inhibit investments.

“The Likoni gun attack on worshipers at the Joy in Jesus Church is unfortunate and if they continue, they will bring down tourism as well as investments in the country. We all need to come together and fight these attacks on our people,” he said.

He also said the current wage bill debate is also crucial pointing out that resources in the country should be utilised prudently.

“Our public wage is too high… we cannot wish devolution away because it’s here with us. However, it should not be a way to enrich the pockets of other people,” he said.

The board of directors recommends a divided payment of Sh0.40 per share.

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