Family Bank is focused on growing its local market share to join the top banking league within three years after more than doubling its net profit.
The mid-tier lender's after-tax profit for the year ended December 31 leaped to Sh1.25 billion, rising by 121.8 per cent over the previous year's Sh561.5 million.
Its performance largely benefited from a significant drop in interest expenses to Sh903.5 million from Sh1.48 billion on cheaper customer deposits which increased by nearly Sh10 billion to Sh34.58 billion.
The lender's loan book grew to Sh27.94 billion in the review period from Sh17.87 billion, which earned it Sh4.69 billion in interest from Sh4.21 billion in 2012. It also halved its loan loss provisions to Sh321.8 million from Sh645.3 million a year earlier.
Non-interest income, earned from fees and commissions on loans and advances and foreign exchange trading, also jumped to Sh1.85 billion from Sh1.44 billion.
"We should hit the parameters set for top-tier banks by the Central Bank within three years. These include increasing our customer base, growing our balance sheet size, deposits held and total assets," Peter Munyiri told the Star yesterday.
Family, now with Sh43.5 billion in total assets, has suspended plans to list on the Nairobi Securities Exchange this year and going regional, instead settling on increasing its footprint to 85 branches from the current 73.It was converted into a bank six years ago from a building society.
It is the first time its profit has hit and surpassed the Sh1 billion mark. The bank's directors have recommended a dividend of Sh0.40 per share, doubling the total payout over that of last year to Sh222.8 million, according to its chairman Wilfred Kiboro.