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The bank's Chief Executive Officer Peter Munyiri (l) with Chairman Wilson Kiboro (r)

Kenya

Loans, expansion propel Family Bank profit

The bank's Chief Executive Officer Peter Munyiri (l) with Chairman Wilson Kiboro (r)

The bank’s Chief Executive Officer Peter Munyiri (l) with Chairman Wilson Kiboro (r)

NAIROBI, Kenya, Mar 24 – Family Bank has posted 49 percent rise in its 2014 pre-tax profit to Sh2.6 billion from Sh1.78 billion in 2013 driven by growth in its loan book as well as branch expansion and increase in revenue from alternative business channels.

The loan book grew by 36 percent to Sh37 billion from Sh27.9 billion while net interest income grew by 21 percent to Sh5.4 billion from Sh4.45 billion.

Revenue growth increased by 35 percent to Sh9.7 billion from Sh7.2 billion in 2013 while customer deposits grew by 36 percent to Sh47.7 billion from Sh34.6 billion recorded in 2013.

The bank’s Chief Executive Officer Peter Munyiri says they plan to open eight more branches in 2015 as it seeks to position itself in the Kenyan market.

In 2014, the bank opened seven branches that included Kasarani, Kajiado, Laptrust, Bomet, Malindi, Litein, and Mwea.

“We remain confident of realising premium returns to shareholders in future. We are also creating capacity for investment in areas of high growth potential with focus on the retail mass market, Small and Medium Enterprises (SME) and local corporates to give us a strong competitive position in all sectors of the economy,” added Munyiri.

The bank’s cash call towards end of 2014 received support from shareholders and institutional investors who pumped in more than Sh3 billion.

That coupled with increased retained earnings had a 78 percent boost to the shareholders’ funds to Sh10.6 billion from Sh5.97 billion in 2013.

The directors recommended a dividend payment of Sh0.50 per share.

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