Family Bank profit hits Sh448m in first quarter

Family Bank has more than doubled its after tax profit for the first three months of this year, owing to increased lending.

The bank recorded a 111.3 per cent growth in after tax profit to Sh448 million for the period between January to March 2014, up from Sh212 million recorded over the same period last year.

The bank grew its loan book by nine per cent to Sh30.4 billion from Sh27.9 billion in the period under review, driven by increased lending to small and medium enterprises and personal consumers.

This saw interest income rise by 55 per cent to Sh1.7 billion in the first quarter, up from Sh1.1 billion in a similar period in 2013.

“Our loan book continues to expand, signifying a stamp of approval in the direction we are going,” said Family Bank MD Peter Munyiri.

Mr Munyiri added that leveraging the universal banking model to position the company as a one-stop financial services shop, and a well planned expansion strategy helped to improve performance.

“We remain confident of realising premium returns to shareholders in future as we position our business to optimise on our universal banking model.

“Focus on the retail mass market and SME sector will give us a strong competitive position in all sectors of the economy,” he said.

At 106 per cent profit growth, the institution continues to expand faster than all the other listed banks.

Customer deposits rose by 40 per cent to Sh35 billion in March 2014, up from Sh25 billion in a similar period last year.

At the same time, the firm’s assets grew to Sh45 billion, up from Sh43.5 billion, as it increased its customer base that now stands at 1.3 million.

The bank directors have recommended a 40 cents dividend per share — equivalent to Sh222 million. The payment is subject to approval by shareholders who will be holding their annual general meeting in Nairobi Friday.