3 May 2013

Kenya: Family Bank Profit Soars 66 Percent

Nairobi — Family Bank has announced a 66 percent profit after tax jump to Sh561.4 million for the year 2012 against Sh354.6 million recorded in 2011.

The bank also grew its total assets by 19 percent from Sh26 billion to Sh31 billion, deposits by 15 percent from Sh21.4 billion in 2011 to Sh24.6 billion in 2012 and total share holders' funds by 46 percent from Sh3.3 billion in 2011 to Sh4.9 billion in 2012.

Announcing the results on Thursday, Family Bank chairman Wilfred Kiboro attributed the growth to the team's aggressiveness, in driving more value into the business and embedding a culture that drives return on investment.

"2012 was the first full year in which we were able to execute our re-engineered universal banking model and this is a clear demonstration that the vision of a 'big bank' and our realigned business strategy of a universal bank is beginning to bear fruit," he said.

The increase in assets was mainly attributed to the growth in loans and investments as net loans and advances stood at Sh17.8 billion in 2012 as compared to 2011's Sh16.3 billion representing an eight percent growth.

Increase in core capital arising from the Rights Issue conducted between November 8 and December 7 last year retained earnings and increased the total shareholders' funds.

The bank has also forged partnerships with Kenya Power for payment of electricity bills for their customers. Another deal is with the Kenya Tea Development Agency, to unlock value in the multibillion shilling tea sector value chain as well as the Local Authorities Pension (LAP) Trust to tap into local government employees.

Kiboro commended the performance pointing out that it comes against the Kenyan economic challenges as well as the global micro economic instability that was experienced last year.

"The year started with a very high inflation regime which was hovering about 25.5 percent. This was being fuelled by a number of economic factors from both domestic and foreign fronts," he explained.

The bank plans to expand its market share, rolling out 10 more branches across the country this year.

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