By James Anyanzwa
Family Bank’s full-year pre-tax profit rose 66.3 per cent, driven by increased revenues from diversified product offerings.
The mid-tier lender’s profit before tax (PBT) for the 12-month period ended December 31 grew to Sh868 million from the previous year’s Sh522 million.
The bank’s Managing Director Peter Munyiri cited the bank’s heavy investment in technology and the introduction of technology-hinged products as among the key contributors to the bank’s increased profitability.
“We now offer products for all sectors of the economy,” Munyiri told an investor briefing in Nairobi yesterday, adding that the bank’s re-organisation has also seen the adoption of universal banking model.
However, Munyiri said the lending environment during the period under review was characterised by series of oscillations in lending rates as the Central Bank battled with high inflation.
Affected appetite
“This tremendously affected the appetite for loans and general borrowing, as well as increased the cost of funds for lending. In addition, the last half of the year experienced slowed economic activities as pre-election jitters gripped the country,” he said
According to the Bank’s audited financial statements, total assets grew 19 per cent to Sh31 billion last year, from Sh26 Billion in 2011, while customer deposits increased 15 per cent to Sh24.6 billion from Sh21.4 billion in a similar period.
Loan portfolio ascended nine per cent to Sh17.9 billion from Sh16.3 billion. Total shareholders’ funds expanded 46 per cent to Sh4.9 billion from Sh3.3 billion, while the bank’s customer base grew to 1.1 million with service from 70 branches countrywide
