NAIROBI, Kenya, May 11 – Family Bank shareholders have endorsed a dividend payout of Sh1.50 for every ordinary share held amounting to over Sh103 million.
This was passed on Friday during the first annual general meeting held since the firm converted to a fully fledged commercial bank, where the directors announced an impressive performance for the year ended December 31, 2008 on the backdrop of slower economic growth domestically and the global financial crisis that continues to envelope the global markets.
Speaking during the AGM held at Kenyatta International Conference Center, Titus K Muya, Family Bank Chairman said that the 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 global financial crisis has undermined the confidence of consumers and investors and caused enormous financial damage across the world of which Kenya has not been immune,” stated Mr Muya.
“This crisis has seen unfavorable effects on the Nairobi Stock Exchange in reduced trading, significant drop in stock prices, eminent closure of some stock brokerage firms and even staff retrenchments,” he added.
Despite all this, Family Bank has continued expanding its footprint in the Kenyan market opening new branches countrywide and bringing its number of outlets to 43 branches..
“Family Bank is in the process of purchasing its own ATM switch as well as a robust core-banking software to replace the current one in order to cope with the current business growth,” said Mr Muya. “This new software will improve efficiency and customer service delivery and enable the introduction of new line of quality products in addition to the quality products and services on offer,” added Mr Muya.
To support the bank’s growth its staff numbers have increased by 45 percent from 607 in 2007 to 881 by 2008.
“Despite the serious potential challenges faced in 2009 significant room for growth exists in the Kenyan banking sector. The bank will continue to play a key role in financial intermediation, poverty eradication and restoring economic empowerment and growth.”
Family Bank was recently recognised as one of the best micro finance banks in Kenya during the Annual Banking Survey awards. It was ranked the best bank in tier II category of banks with total assets between Sh20 billion and Sh5 billion as well as the overall second runner-up in the micro finance banks category during the annual banking survey awards.