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Family bank profit soars to Sh366m

NAIROBI, Kenya, Mar 19 – Family Bank has announced an after-tax profit of Sh366 million for the period ended December 31, 2008, compared to Sh166.6 million for the eight months it operated in 2007.

Last year marked the banks first full year of operation as a fully fledged commercial bank.

According to a statement from the bank, “This significant performance was driven by strong growth and expansion seen in the consumer finance market, particularly among the Bank’s mass market customers, who continue to power its low margin – high volume business model.”

“The record growth comes on the backdrop of slower economic growth domestically and the global financial crisis that continues to envelope the global financial markets,” the statement added.

Chief Executive of Family Bank Peter Kinyanjui said their fundamentals remain solid with a strong balance found between its aggressive growth strategy and focus on innovation that shaped and boosted the bottom-line margin significantly.

“We will continue to focus on the millions of unbanked Kenyans at the lower end of the market,” said Mr Kinyanjui.

Deposits grew by 26 percent from Sh6 billion in 2007 to Sh7.6 billion in 2008. Loans to customers grew by 43.6 percent from Sh4.1 billion to stand at Sh5.9 billion in 2008.

Gross income grew by 76 percent from Sh1.1 billion to Sh1.95 billion and in turn with this growth; shareholders’ funds grew by 22 percent from Sh1.28 billion to Sh1.55 billion.

Mr Kinyanjui said that the growth of the Bank has been significantly driven by aggressive marketing and the opening of nine branches countrywide, bringing the number of branches to 44.

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The bank’s total assets grew by 22 percent from Sh8.7 billion to Sh10.6 billion. This was attributed to an increase in lending, investments in Treasury Bills, placements with other banks and the rollout of the new branches.

“Despite the challenges brought by the global financial crisis affecting the economy and the prevailing drought situation domestically, the bank remains confident in its growth strategy and in its business model. In the face of serious potential challenges in 2009, significant room for growth exists in the Kenyan banking sector,” Mr Kinyanjui said.

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