Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Finance

Bearish market pushes Family Bank to delay listing at the NSE

Family Bank MD adds that plans to list are still on course pending market environment

NAIROBI, Kenya, Jun 8 – Family Bank has put on hold plans to go public due to what the Bank’s Managing Director David Thuku terms as an unconducive market.

Speaking to Capital FM Business Thuku, nevertheless, says the bank is committed to listing at the Nairobi Securities Exchanged.

The listing plans were first announced in July 2011 but have been shelved following a bear run at the NSE that has seen investors lose billions.

“The time we almost went in, ‘the market went the way it went’. We are watching closely and at an opportune moment we will,” he stated.

Bank stocks were particularly hit following the introduction of the interest rate cap law in August 2016, dropping their stock value by 14 percent by January 2017.  an average of 1420%** of their value.

In 2015, bank stocks shed Sh180 billion in valuation due to a bearish market that continued throughout 2016.

Thuku adds that Family Bank has also been waiting to finish with its expansion plans as well as strengthen shareholders value before going public.

The bank is planning to invest in upgrading its digital banking platforms and increase its investments in non-interest income.

“If the market gives us confidence that this is the time to plug in, we will plug in so it’s no easy to say its’ by time X,” he adds.

The medium size lender became a fully fledged commercial bank in 2007 after operating as a building society since 1984.

Advertisement. Scroll to continue reading.

In 2016, the firm took a hit owing to sustained social media attacks which led to significant withdrawals.

Deposits went down by 60 percent to Sh11 billion from Sh28.7 billion while nonperforming loans in the period under review doubled.

The bank posted Sh664 million pretax profit for 2016 a decline from the previous Sh2.9 billion the bank posted in 2015, a drop the bank attributes to a one-off staff restructuring exercise that cost the bank Sh400 million as well as a slowdown in the loan book.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...