Family Bank profit up 132pc on huge loan book

By MACHARIA KAMAU

The restructuring and expansion of Family Bank in the course of last year seems to be yielding fruit. The bank’s profitability for the six months to June has gone up 132 per cent.

 The bank’s profit before tax grew to Sh703 million in June 2013 from Sh303 million over a similar period in 2012.

Last year the bank’s founder retired as board chairman and they brought in new talent.

Family Bank Managing Director Peter Munyiri said the growth has been due to a new business approach, the universal banking model as well as growth in consumer loans and lending to business people.

The bank’s loan book grew 16 per cent to Sh23 billion in June from Sh19.8 billion in December 2012. Deposits grew by 15 per cent to Sh28.4 billion up from Sh24.6 billion as at December last year. Its total assets went up 13 per cent to Sh35 billion from Sh31 billion.

Munyiri said the bank’s mortgage product, ‘Growing Homes’, has also shown signs of growth, and they expect substantial returns from the segment in the coming years.

“The bank’s investment in technology in 2010 also paid back with better efficiency in service delivery and the introduction of technology hinged products that are resulting in growth of overall bank’s revenue,” he said.

Last year, the bank’s founder, Mr Titus Muya retired and Mr Wilfred Kiboro, a renowned industrialist and entrepreneur took over as the chair of the board.

Munyiri said that the transition was well managed and this had resulted in great confidence by stakeholders in the new leadership. “Our commitment to transforming the bank into a pan-African bank remains a propulsive drive.”

“Family Bank has strategically invested in structures, banking technologies as well as partnerships aimed at supporting an aggressive new service excellence strategy,”

 He said that the management will expand the bank’s geographic foot print across the country and grow its portfolio of corporate as well  institutional clients. 

This will  improve mortgage and treasury products. “In addition, the bank is strengthening its retail arm,” he said.