Family Bank’s profits rose by nearly half in 2014 driven by increased lending and customer deposits.
The lender said on Monday that its pre-tax profits for the year had increased to Ksh 1.78billion, an equivalent of 49% compared to Ksh2.62 billion registered in 2013. “Our loan book has grown exponentially and this was a key driver for the profits. Besides, transformational changes and implementation of new business operational model have positioned the bank as a one stop-shop providing products and services for all the profitable market segments,” said the bank’s CEO Mr Peter Munyiri revealing that the loan book had grown by 36% from Ksh27.9 billion to Ksh37.9 billion.
Family Bank chairman Wilfred Kiboro said the performance led to the board recommending that shareholders be paid 50 cents per share in dividends totalling to Ksh622.6 million. “With this performance the bank is set to offer a dividend payment of Ksh 0.50 per share totalling to Ksh 622.6million from Ksh 222.8million which is nearly triple the payout in 2013,” he said.
Towards the end of 2014, the bank launched a rights issue which saw its cash call receive a 78% boost from the shareholder’s funds to Ksh10.6 billion from Ksh5.97 billion in 2013 through shareholders’ and institutional investments, which injected in more than Ksh3 billion.
Family Bank has opened 7 new branches and is set to open 10 more before the end of this year. “We are shifting our focus to the retail market, SMEs and corporates to position the bank as a preferred lender in the country,” Munyiri added.
Leave a comment