Family Bank approves Sh622m dividend

Family Bank shareholders have approved Sh622.6 million dividend, the highest payout since converting to a bank eight years ago.

The amount is triple what was paid out in 2013, even as the lender prepares a rights issue later this year. The previous year, the bank paid out Sh222.8 million in dividends in addition to issuing one – for –one bonus shares.

“The dividend payment comes on the backdrop of robust results we realised. We registered a 49 per cent rise in pre-tax profit of Sh2.62 billion in 2014. We are committed to delivering value to our shareholders,” said the bank’s chairman Wilfred Kiboro.

The shareholders gave their nod during the bank’s Annual General Meeting held Friday at the Kenyatta International Convention Centre.

Mr Kiboro also announced that the bank will be spending Sh1 billion to upgrade its ICT infrastructure. The bank is also considering another cash call before close of the year just after conclusion of a similar rights issue last year which yielded an additional capital of Sh3 billion. The capital injection has increased the lender’s core capital to total risk weighted assets to 20.3 per cent against the statutory requirement 14.5 per cent.

Managing Director and Chief Executive Officer Mr Peter Munyiri announced that the bank was fast approaching the tier one status leveraging on areas of high growth potential with focus on retail mass market, SME and local corporates.

The bank has opened four of the 10 branches lined up this year – Migori, Embakasi, Thika Makongeni and Bamburi in Mombasa to cater for its growing retail and SME clients.

Another outlet in Chuka, Meru County will be opened in a week’s time. Last year, the bank opened seven branches including Kasarani, Kajiado, Laptrust, Bomet, Malindi, Litein, and Mwea.